During the three and six months ended June 30, 2026 and 2025, we recognized $8 million, $15 million, $8 million and $13 million in stock-based compensation expense, respectively, which was allocated between cost of goods sold and selling, general and administrative expenses in the condensed consolidated statements of operations. We recognized immaterial tax benefits on stock-based compensation for both the three and six months ended June 30, 2026 and 2025.

2026 Activity


Restricted Stock Units	Units (in millions)	Weighted Average Fair Value
Outstanding at January 1, 2026	0.9	$	32.91
Granted	0.9	$	31.68
Vested	(0.4)	$	32.56
Forfeited (1)	—	$	33.38
Outstanding at June 30, 2026	1.4	$	32.22

At June 30, 2026, there was $29 million of unamortized expense relating to unvested restricted stock units that is expected to be amortized over a weighted average period of 1.6 years. Tax benefits on the vesting of restricted stock units during the six months ended June 30, 2026 were immaterial.


Performance Share Units	Units (in millions)	Weighted Average Fair Value
Outstanding at January 1, 2026	1.0	$	37.94
Granted (1)	0.1	$	29.51
Vested	(0.4)	$	33.74
Forfeited	(0.1)	$	41.12
Outstanding at June 30, 2026	0.6	$	39.13

(1) Activity during the six months ended June 30, 2026 represents portions of performance share units that vested above the 100% performance threshold.

Our performance share units allow for participants to vest in zero to 200% of the target number of shares granted. At June 30, 2026, there was $8 million of unamortized expense relating to unvested performance share units that is expected to be amortized over a weighted average period of 1.4 years. Tax benefits on the vesting of performance share units during the six months ended June 30, 2026 were immaterial.

The Black-Scholes option pricing model was used to estimate the fair values for options as of their grant date. There have been no options granted since 2019. There are currently 0.1 million options outstanding, all of which are vested and exercisable, with an average exercise price of $28.52, a weighted average contractual life of 1.8 years and a $1 million aggregate intrinsic value.

Cash received by the Company upon exercise of options for the six months ended June 30, 2026 was $1 million. There were immaterial tax expenses on these exercises.