v3.26.1
Stock-Based Compensation Plans
 3 Months Ended
Mar. 31, 2026
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Plans Stock-Based Compensation Plans
The Company grants stock option awards, restricted share units (“RSUs”), performance share units (“PSUs”), and cash awards pursuant to the 2021 Incentive Stock Plan.

Stock-based compensation expenses incurred by the Company were as follows:

Three Months Ended
March 31,
($ in millions)20262025
Stock-based compensation expense recognized in:
Cost of sales$3 $4 
Selling, general and administrative 13 16 
Research and development3 4 
Total$19 $24 
Income tax benefits$4 $5 

The fair value of options granted was determined using the following assumptions:

Three Months Ended March 31,
2025
Expected dividend yield7.41 %
Risk-free interest rate4.08 
Expected volatility40.25 
Expected life (years)(1)
5.89
(1)The expected term was estimated using the historical option‑exercise and settlement patterns, supplemented by a midpoint‑based assumption applied to awards meeting a one‑year post‑grant eligibility filter.
A summary of the equity award transactions for the three months ended March 31, 2026 is as follows:
Stock Options
RSUs
PSUs
(shares in thousands)SharesWeighted average
exercise price		Weighted average
grant date
fair value		SharesWeighted average
grant date
fair value		SharesWeighted average
grant date
fair value
Outstanding as of January 1, 20267,519 $27.30 $6.99 9,716 $15.35 589 $23.61 
Granted/Issued
— — — 13,571 6.01 2,128 8.27 
Vested/Exercised— — — (3,448)17.89 (193)23.20 
Forfeited/Cancelled(1,638)30.85 8.36 (136)14.43 (140)23.20 
Outstanding as of March 31, 2026
5,881 $26.31 $6.61 19,703 $8.48 2,384 $9.98 

The following table summarizes information about equity awards outstanding that are vested and expected to vest and equity awards outstanding that are exercisable as of March 31, 2026:

Equity Awards Vested and Expected to VestEquity Awards That are Exercisable
(awards in thousands; aggregate intrinsic value in millions)
AwardsWeighted Average
Exercise Price		Aggregate
Intrinsic Value
Remaining
Term
(in years)
AwardsWeighted Average
Exercise Price		Aggregate
Intrinsic Value
Remaining
Term
(in years)
Stock Options5,768 $26.31 $— 6.174,610 $29.23 $— 5.45
RSUs
17,605 118 2.39
PSUs
1,760 12 2.42

The amount of unrecognized compensation costs as of March 31, 2026 was $179 million, which will be recognized in operating expense ratably over the weighted average vesting period of 2.37 years.