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Share-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Share-Based Compensation
Note 12: Share-Based Compensation
Year ended December 31 (in millions)
202420232022
Share-based compensation expense$1,069 $1,021 $1,100 
Related income tax benefit
$222 $203 $248 
Our share-based compensation plans consist primarily of awards of RSUs and stock options to certain employees and directors as part of our long-term incentive compensation structure. Awards generally vest over a period of 5 years and, in the case of stock options, have a 10 year term. RSUs include performance stock units awarded to certain senior executives with vesting after 3 years based upon the achievement of certain performance conditions. These performance stock units are not material to our consolidated results of operations in any period presented. As of December 31, 2024, virtually all of our stock options outstanding were net settled stock options, which result in fewer shares being issued and no cash proceeds being received by us when the options are exercised. Additionally, eligible employees may purchase shares of our common stock at a discount under our employee stock purchase plans.
Stock Options and Restricted Share Units
As of December 31, 2024, unless otherwise stated (in millions, except per share data)Stock
Options		RSUs
Awards granted during 20244 35 
Weighted-average exercise price of awards granted during 2024$40.72  
Stock options outstanding and unvested RSUs
224 62 
Weighted-average exercise price of stock options outstanding$41.70 
Weighted-average fair value at grant date of unvested RSUs
 $42.11 
The cost associated with our share-based compensation is based on an award’s estimated fair value at the date of grant and is recognized over the period in which any related services are provided. RSUs are primarily valued based on the closing price of our common stock on the date of grant and are discounted for the lack of dividends, if any, during the vesting period. We use the Black-Scholes option pricing model to estimate the fair value of stock option awards.
The table below presents the weighted-average fair value on the date of grant of RSUs and stock options awarded under our various plans and the related weighted-average valuation assumptions.
Year ended December 31202420232022
RSUs fair value$42.23 $37.14 $45.20 
Stock options fair value$9.93 $8.41 $8.77 
Stock Option Valuation Assumptions:
Dividend yield2.9 %3.2 %2.4 %
Expected volatility24.8 %26.2 %25.0 %
Risk-free interest rate4.2 %4.2 %1.8 %
Expected option life (in years)5.15.95.8
As of December 31, 2024, we had unrecognized pretax compensation expense of $2.1 billion related to unvested RSUs and unvested stock options that will be recognized over a weighted-average period of approximately 1.6 years.