v3.26.1
Shareholders' Equity
 6 Months Ended
Jun. 30, 2026
Equity [Abstract]  
Shareholders' Equity
Note 9. Shareholders' Equity

Stock Award Activity

Stock Options
Stock option activity is reflected below:
 Shares Subject
to Option		Weighted-
Average
Exercise Price
Per Share		Average
Remaining
Contractual
Term		Aggregate
Intrinsic
Value
Balance at January 1, 202615,721,919 $57.175 years$55  million
Granted
3,190,140 61.43
Exercised (1)
(1,260,284)42.27$22  million
Canceled
(329,518)63.01
Balance at June 30, 202617,322,257 58.936 years$61  million

(1)Cash received from options exercised was $15 million and $53 million in the three and six months ended June 30, 2026, respectively. The excess income tax benefit from stock option exercises was $2 million and $3 million in the three and six months ended June 30, 2026, respectively.


Performance Share Units ("PSU") and Deferred Stock Units ("DSU")
PSU and DSU activity is reflected below:
Number
of Shares
Weighted-Average
Grant Date Fair Value
Per Share (3)
Weighted-Average
Aggregate
Grant Date Fair Value
Balance at January 1, 20265,337,124 $67.73
Units granted:
Performance share units (1)
1,089,805 65.40
Deferred stock units
1,994,725 59.27
Total units granted (1)
3,084,530 61.44$190  million
Vested (1) (2)
(1,638,597)66.80$109  million
Forfeited
(264,753)65.17
Balance at June 30, 20266,518,304 65.09

(1)Includes incremental PSUs issued over target.
(2)The income tax shortfall upon vesting of PSUs and DSUs was zero and $2 million in the three and six months ended June 30, 2026, respectively.
(3)The grant date fair value of PSUs is determined based on the Monte Carlo simulation model for the market-based total shareholder return component and the closing market price of the Company’s stock on the grant date for performance-based components. The Monte Carlo simulation model incorporates the probability of achieving the total shareholder return market condition. Compensation expense is recognized using the grant date fair values regardless of whether the market condition is achieved, as long as the requisite service has been provided.

Share Repurchase Program
Effective January 1, 2025, our Board of Directors replaced our prior share repurchase program by approving a program authorizing the repurchase of up to $9.0 billion of our Common Stock through December 31, 2027. Repurchases under the program are determined by management and are wholly discretionary.

During the six months ended June 30, 2026, we repurchased approximately 3 million shares of Common Stock at an average cost of $60.69 per share, or an aggregate cost of approximately $210 million, all of which was paid during the period except for approximately $18 million settled in July 2026. All share repurchases were funded through available cash and commercial paper issuances. As of June 30, 2026, we have approximately $6.5 billion in remaining share repurchase capacity.