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STOCK-BASED COMPENSATION
 9 Months Ended
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,
2025202420252024
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 yield0.73 %
Expected stock volatility27 %
Risk-free interest rate4.51 %
Expected holding period5.6 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 vested0.5 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.