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STOCK-BASED COMPENSATION | 9 Months Ended
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Sep. 30, 2025
Share-Based Payment Arrangement, Noncash Expense [Abstract] |
STOCK-BASED COMPENSATION | STOCK-BASED COMPENSATION Presented below is a summary of the stock-based compensation cost and associated tax benefit included in the accompanying consolidated statements of operations:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Stock-based compensation cost | $ | 58 |  |  | $ | 57 |  |  | $ | 176 |  |  | $ | 166 |
Tax benefit | $ | 13 |  |  | $ | 12 |  |  | $ | 38 |  |  | $ | 36 |
During the first nine months of 2025, the Company granted 0.1 million employee stock options, which had a weighted average grant date fair value of $163.59 per share. The Company also granted 0.4 million shares of restricted stock in the first nine months of 2025, which had a weighted average grant date fair value of $512.07 per share. Both the employee stock options and restricted stock generally vest ratably over four years. Additionally, the Company granted 0.1 million shares of performance-based awards whereby the number of shares that ultimately vest is based on the achievement of certain non-market-based performance metrics of the Company over three years. The weighted average grant date fair value of these awards was $501.88 per share. The following weighted average assumptions were used in determining the fair value using the Black-Scholes option-pricing model for options granted in 2025:
Expected dividend yield | 0.73 | %
Expected stock volatility | 27 | %
Risk-free interest rate | 4.51 | %
Expected holding period | 5.6 years
Unrecognized stock-based compensation expense at September 30, 2025 was $11 million and $287 million for unvested stock options and restricted stock, respectively, which is expected to be recognized over a weighted average period of 2.0 years and 2.5 years, respectively. Additionally, there was $59 million of unrecognized stock-based compensation expense relating to the aforementioned non-market-based performance-based awards, which is expected to be recognized over a weighted average period of 1.8 years. The following table summarizes information relating to stock option exercises and restricted stock vesting:
| Nine Months Ended September 30,
| 2025 |  | 2024
Exercise of stock options: |  |  |
Proceeds from stock option exercises | $ | 26 |  |  | $ | 44 |
Aggregate intrinsic value | $ | 42 |  |  | $ | 60 |
Tax benefit realized upon exercise | $ | 9 |  |  | $ | 10 |
Number of shares exercised | 0.1 |  |  | 0.3 |
Vesting of restricted stock: |  |  |
Fair value of shares vested | $ | 245 |  |  | $ | 183 |
Tax benefit realized upon vesting | $ | 60 |  |  | $ | 45 |
Number of shares vested | 0.5 |  |  | 0.5 |
Vesting of performance-based restricted stock: |  |  |
Fair value of shares vested | $ | 8 |  |  | $ | 40 |
Tax benefit realized upon vesting | $ | 1 |  |  | $ | 9 |
Number of shares vested (1) | — |  |  | 0.1 |
(1) The number of shares vested in 2025 was approximately 15 thousand.

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