Shareholders' Equity (Tables)

6 Months Ended

Jun. 30, 2026

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, 2026	15,721,919	$57.17	5 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, 2026	17,322,257	58.93	6 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.

Schedule of Performance Share Units and Other Stock-Based Awards Activity

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, 2026	5,337,124	$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, 2026	6,518,304	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.