v3.25.4
EMPLOYEE STOCK BENEFIT PLANS (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Stock Based Compensation Expense Stock-based compensation expense was as follows:
 Year Ended December 31,
Dollars in millions202520242023
Cost of products sold$62 $57 $51 
Selling, general and administrative224 202 215 
Research and development267 248 252 
Total stock-based compensation expense$553 $507 $518 
Income tax benefit
$115 $108 $105 
Summary of Stock Compensation Activity
The following table summarizes the stock compensation activity for the year ended December 31, 2025:
 Stock OptionsRSUsMSUsPSUs
Shares in MillionsNumber of OptionsWeighted-Average Exercise Price of SharesNumber of Nonvested RSUsWeighted-Average Grant-Date Fair ValueNumber of Nonvested MSUsWeighted-Average Grant-Date Fair ValueNumber of Nonvested PSUsWeighted-Average Grant-Date Fair Value
Balance at January 1, 2025
11.1 $59.02 20.7 $53.17 1.9 $58.69 3.7 $59.84 
Granted— — 12.5 56.06 1.1 71.38 0.5 62.72 
Released/Exercised(1.3)52.93 (7.9)54.96 (0.3)58.80 (0.6)66.77 
Adjustments for actual payout— — — — (0.1)59.16 (0.4)66.77 
Forfeited/Canceled(3.0)64.19 (3.8)53.95 (0.4)62.99 (0.5)56.94 
Balance at December 31, 2025
6.8 $57.85 21.5 $54.07 2.2 $64.24 2.7 $58.33 
Expected to vest18.4 $54.13 1.8 $63.80 2.3 $58.45 

Dollars in millionsRestricted Stock UnitsMarket Share UnitsPerformance Share Units
Unrecognized compensation cost$820 $74 $48 
Expected weighted-average period in years of compensation cost to be recognized2.51.91.5

Amounts in Millions, except per share data202520242023
Weighted-average grant date fair value (per share):
RSUs$56.06 $47.54 $60.26 
MSUs71.38 58.6357.99 
PSUs62.72 53.0863.86 
Fair value of awards that vested:
RSUs$435 $429 $365 
MSUs18 13 45 
PSUs43 42 65 
Total intrinsic value of stock options exercised8 13 90 
Summary of Significant Outstanding and Exercisable Options
The following table summarizes significant outstanding and exercisable options at December 31, 2025:
Range of Exercise PricesNumber of Options (in millions)Weighted-Average Remaining Contractual Life (in years)Weighted-Average Exercise Price Per ShareAggregate Intrinsic Value (in millions)
$10 - $40
0.1 1.7$23.42 $2 
$40 - $55
2.7 1.650.38 10 
$55 - $65
2.4 1.058.93 — 
$65 +
1.7 1.369.71 — 
Outstanding6.8 1.357.85 $13 
Exercisable6.8 1.357.85 $13