v3.26.1
Stock-Based Compensation (Tables)
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock Based Compensation Expense
Information regarding stock-based compensation expense appears in the table below:
Millions, for the three months ended March 31,20262025
Stock-based compensation, before tax:
Stock options$5 $6 
Retention awards21 22 
ESPP [a]3 6 
Total stock-based compensation, before tax$29 $34 
Excess income tax benefits from equity compensation plans$9 $7 
[a]Effective with the June 10, 2025, purchase (for employee services rendered in May 2025), the Company match was changed from 40% to 20% of amounts contributed by the employee up to a maximum employee contribution of 5% of monthly salary (limited to $15,000 annually).
Schedule of Annual Weighted Average Assumptions
The table below shows the annual weighted-average assumptions used for Black-Scholes valuation purposes:
Weighted-average assumptions20262025
Risk-free interest rate3.7%4.3%
Dividend yield2.2%2.2%
Expected life (years)4.84.3
Volatility22.3%22.4%
Weighted-average grant-date fair value of options granted$50.32 $48.70 
Schedule of Stock Option Activity
A summary of stock option activity during the three months ended March 31, 2026, is presented below:
Options (thous.)Weighted-average
exercise price		Weighted-average remaining contractual term (in yrs.)Aggregate intrinsic value (millions)
Outstanding at January 1, 20262,095 $210.29 5.6$58 
Granted436 251.45 N/AN/A
Exercised(224)146.82 N/AN/A
Forfeited or expired(12)248.62 N/AN/A
Outstanding at March 31, 20262,295 $224.10 6.4$49 
Vested or expected to vest at March 31, 20262,271 $223.87 6.4$49 
Options exercisable at March 31, 20261,507 $211.41 5.0$49 
Schedule of Additional Information Regarding Stock Option Exercises Additional information regarding stock option exercises appears in the following table:
Millions, for the three months ended March 31,20262025
Intrinsic value of stock options exercised$24 $20 
Cash received from option exercises30 41 
Treasury shares repurchased for employee payroll taxes(6)(6)
Income tax benefit realized from option exercises5 2 
Aggregate grant-date fair value of stock options vested15 16 
Schedule of Changes in Retention Awards
Changes in our retention awards during the three months ended March 31, 2026, were as follows:
Shares (thous.)Weighted-average
grant-date fair value
Nonvested at January 1, 2026878 $232.18 
Granted256 246.29 
Vested [a](444)220.88 
Forfeited(5)246.81 
Nonvested at March 31, 2026685 $244.67 
[a]Starting with the 2023 awards, the vesting period was changed from 4 years to 3 years, which results in the 2022 and 2023 awards both vesting in February of 2026.
Schedule of Changes in Performance Stock Unit Awards
Changes in our performance stock unit awards during the three months ended March 31, 2026, were as follows:
Shares (thous.)Weighted-average
grant-date fair value
Nonvested at January 1, 2026619 $222.68 
Granted336 251.45 
Vested(72)199.05 
Unearned(96)202.81 
Forfeited(24)248.70 
Nonvested at March 31, 2026763 $239.26