Stock Option Plans (Tables)

9 Months Ended

Sep. 30, 2026

Stock option grants and compensation expense (in millions):


	Three-month period ended September 30				Nine-month period ended September 30
	2026		2025		2026		2025
Grant date					March 1, 2026		March 1, 2025
Stock options granted	—		—		1.5		0.8
Stock option compensation expense	$	14	$	12	$	49	$	42

Fair value of stock options at the date of grant is estimated using the Black-Scholes model with the following weighted average assumptions:


	Nine-month period ended September 30
	2026		2025
Expected dividend yield	1.2	%	0.8	%
Expected risk-free interest rate	3.6	%	4.1	%
Volatility	22.3	%	25.4	%
Expected life (in years)	5.5		5.5

The following is a summary of our stock option activity and related information for 2026 (in millions, except exercise price and year data):


	Nine-month period ended September 30, 2026
	Shares Under Option	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value
Beginning balance	6.7	$	177.48
Granted	1.5	228.20
Exercised	(0.9)	108.31
Forfeited or canceled	(0.2)	215.04
Ending balance	7.1	$	195.33	3.66	$	332
Exercisable at end of period	2.7	$	133.96	1.76	$	256
Ending unvested and expected to vest	4.0	$	232.11	4.76	$	74

Options outstanding and exercisable at September 30, 2026 (in millions, except exercise price and year data):


					Options Outstanding				Options Exercisable
Range of Exercise Prices					Number Outstanding	Weighted Average Remaining Contractual Term (in years)	Weighted Average Exercise Price		Number Exercisable	Weighted Average Exercise Price
$	86.17	—	$	86.17	0.6	0.45	$	86.17	0.6	$	86.17
127.90		—	127.90		1.0	1.46	127.90		0.9	127.90
156.85		—	156.85		0.7	2.34	156.85		0.4	156.85
158.56		—	161.14		0.8	2.46	158.59		0.5	158.58
177.09		—	202.13		0.9	3.46	177.68		0.3	177.74
228.20		—	228.20		1.4	6.42	228.20		—	—
238.88		—	243.54		0.9	4.42	243.54		—	—
337.74		—	347.44		0.8	5.42	337.75		—	—
$	86.17	—	$	347.44	7.1	3.66	$	195.33	2.7	$	133.96