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Stock-Based Compensation (Tables)
12 Months Ended
Dec. 27, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Expense

Stock-based compensation expense was as follows:

 

(In millions)

 

2025

 

 

 

2024

 

 

 

2023

 

Restricted stock units

 

$

16.2

 

 

 

$

21.7

 

 

 

$

22.1

 

Stock option awards

 

 

5.6

 

 

 

 

6.0

 

 

 

 

5.3

 

Performance awards

 

 

(1.8

)

 

 

 

11.8

 

 

 

 

6.1

 

Director awards

 

 

1.5

 

 

 

 

1.4

 

 

 

 

1.7

 

Total pre-tax expense

 

 

21.5

 

 

 

 

40.9

 

 

 

 

35.2

 

Tax benefit

 

 

2.9

 

 

 

 

5.5

 

 

 

 

7.9

 

Total after tax expense

 

$

18.6

 

 

 

$

35.4

 

 

 

$

27.3

 

RSU Activity

A summary of activity with respect to RSUs outstanding under the Plans for the year ended December 27, 2025 was as follows:

 

 

 

Number of
Restricted
Stock Units

 

 

Weighted-Average
Grant-Date
Fair Value

 

Outstanding at December 28, 2024

 

 

584,888

 

 

$

72.44

 

Granted

 

 

490,347

 

 

$

62.53

 

Vested

 

 

(338,554

)

 

$

71.55

 

Forfeited

 

 

(186,911

)

 

$

67.74

 

Outstanding at December 27, 2025

 

 

549,770

 

 

$

65.74

 

Black-Scholes Option Pricing Model Assumptions used to Estimate Fair Value of Options

The fair value of Fortune Brands options was estimated at the date of grant using a Black-Scholes option pricing model with the assumptions shown in the following table:

 

 

 

 

2025

 

 

 

2024

 

 

 

2023

 

Current expected dividend yield

 

 

 

1.5

%

 

 

 

1.2

%

 

 

 

1.5

%

Expected volatility

 

 

 

34.8

%

 

 

 

32.4

%

 

 

 

34.8

%

Risk-free interest rate

 

 

 

4.3

%

 

 

 

4.3

%

 

 

 

4.2

%

Expected term

 

 

5.4 years

 

 

 

5.3 years

 

 

 

5.4 years

 

Stock Option Activity

A summary of stock option activity for the year ended December 27, 2025 was as follows:

 

 

 

Options

 

 

Weighted-
Average
Exercise
Price

 

Outstanding at December 28, 2024

 

 

2,112,256

 

 

$

62.11

 

Granted

 

 

299,165

 

 

$

63.83

 

Exercised

 

 

(98,446

)

 

$

45.71

 

Expired/forfeited

 

 

(187,681

)

 

$

68.87

 

Outstanding at December 27, 2025

 

 

2,125,294

 

 

$

62.52

 

Options Outstanding and Exercisable

Options outstanding and exercisable at December 27, 2025 were as follows:

 

 

 

Options Outstanding (a)

 

 

Options Exercisable (b)

 

Range Of
Exercise Prices

 

Options
Outstanding

 

 

Weighted-
Average
Remaining
Contractual Life

 

 

Weighted-
Average
Exercise
Price

 

 

Options
Exercisable

 

 

Weighted-
Average
Exercise
Price

 

$20.00 to $100.00

 

 

2,125,294

 

 

 

5.06

 

 

$

62.52

 

 

 

1,692,416

 

 

$

61.26

 

 

(a)
At December 27, 2025, the aggregate intrinsic value of options outstanding was $2.6 million.
(b)
At December 27, 2025, the weighted-average remaining contractual life of options exercisable was 4.2 years and the aggregate intrinsic value of options exercisable was $2.6 million.
Summarizes Information of Performance Share Awards

The following table summarizes information about PSAs as of December 27, 2025, as well as activity during the fiscal year then ended. The number of performance share awards granted are shown below at the target award amounts:

 

 

 

Number of
Performance Share
Awards

 

 

Weighted-Average
Grant-Date
Fair Value

 

Non-vested at December 28, 2024

 

 

369,223

 

 

$

70.49

 

Granted

 

 

198,877

 

 

$

64.34

 

Vested

 

 

(1,426

)

 

$

76.32

 

Forfeited

 

 

(122,239

)

 

$

70.27

 

Non-vested at December 27, 2025

 

 

444,435

 

 

$

67.78