v3.25.4
Capital Stock
 12 Months Ended
Dec. 31, 2025
Capital Stock [Abstract]  
Capital Stock CAPITAL STOCK
The aggregate number of shares of all classes of stock which we
are authorized to issue is up to 1,000,500,000, divided into two
classes consisting of 500,000 shares of $1 par value preferred
stock and 1,000,000,000 shares of common stock with a par
value of $0.10. No shares of preferred stock were outstanding on
December 31, 2025.
We made no repurchases of shares in 2025. The manner, timing
and amount of repurchases are determined by management
based on an evaluation of market conditions, stock price and
other factors and are subject to regulatory considerations.
Purchases are made from time-to-time in the open market, in
privately negotiated transactions or otherwise. On December 31,
2025 the total dollar value of shares of our common stock that
could be purchased under our authorized repurchase program
was $1,033.
Shares reserved for future compensation grants of our common
stock were 31 million and 18 million on December 31, 2025 and
2024.
Stock Options
We measure the cost of employee stock options based on the
grant-date fair value and recognize that cost using the straight-
line method over the period in which a recipient is required to
provide services in exchange for the options, typically the vesting
period. The weighted-average fair value per share of options is
estimated on the date of grant using the Black-Scholes option
pricing model.
Option Value and Assumptions
2025
2024
2023
Weighted-average fair value per share
$141.40
$118.22
$83.59
Assumptions:
Risk-free interest rate
4.4%
4.3%
4.0%
Expected dividend yield
0.9%
1.1%
1.2%
Expected stock price volatility
29.1%
29.9%
29.0%
Expected option life (years)
6.4
6.3
6.2
The risk-free interest rate for periods within the expected life of
options granted is based on the United States Treasury yield
curve in effect at the time of grant. Expected stock price volatility
is based on the historical volatility of our stock. The expected
option life, representing the period of time that options granted
are expected to be outstanding, is based on historical option
exercise and employee termination data.
2025 Stock Option Activity
Shares
(in millions)
Weighted-
Average
Exercise 
Price
Weighted-
Average
Remaining
Term (in years)
Aggregate
Intrinsic
Value
Outstanding
January 1
10.8
$214.87
Granted
1.0
392.36
Exercised
(1.2)
158.83
Canceled or
forfeited
(0.2)
313.05
Outstanding
December 31
10.4
$234.56
5.0
$1,246.1
Exercisable
December 31
6.9
$195.53
3.7
$1,073.4
Options expected
to vest
3.3
$309.91
7.5
$166.7
The aggregate intrinsic value of options, which represents the
cumulative difference between the fair market value of the
underlying common stock and the option exercise prices,
exercised was $260, $362 and $318 in 2025, 2024 and 2023.
Exercise prices for options outstanding ranged from $96.64 to
$392.39 on December 31, 2025. On December 31, 2025 there
was $160 of unrecognized compensation cost related to
nonvested stock options granted under the long-term incentive
plans. That cost is expected to be recognized as expense over
the weighted-average period of approximately 1.5 years.
Restricted Stock Units (RSUs) and Performance Stock Units
(PSUs) Activity
Shares
(in millions)
Weighted-Average
Grant Date Fair Value
RSUs
PSUs
RSUs
PSUs
Nonvested on January 1
0.7
0.2
$290.58
$287.51
Granted
0.3
0.1
385.68
334.24
Vested
(0.3)
(0.1)
277.40
254.47
Canceled or forfeited
(0.1)
—
337.17
—
Nonvested on December 31
0.6
0.2
$344.25
$333.06
On December 31, 2025 there was $100 of unrecognized
compensation cost related to nonvested RSUs. That cost is
expected to be recognized as expense over the weighted-
average period of approximately one year. The weighted-average
grant date fair value per share of RSUs granted was $385.68 and
$332.64 in 2025 and 2024. The fair value of RSUs and PSUs
vested in 2025 was $91 and $26. On December 31, 2025 there
was $26 of unrecognized compensation cost related to
nonvested PSUs. That cost is expected to be recognized as
expense over the weighted-average period of approximately one
year.
Employee Stock Purchase Plans (ESPP)
Employees may participate in our ESPP provided they meet
certain eligibility requirements. The purchase price for our
common stock under the terms of the ESPP is defined as 95% of
the closing stock price on the last trading day of a purchase
period. We issued 178,090 and 173,708 shares under the ESPP
in 2025 and 2024.