Share-Based Compensation

12 Months Ended

Dec. 31, 2025

Share-Based Incentive Plans

The Company has established various plans under which it is authorized to grant restricted stock, restricted stock units,

stock options, and stock appreciation rights. The Company may also grant cash awards that can be notionally invested in one or

more specified measurement funds, including the Company’s common stock. Awards granted under the Company’s share-

based incentive plans typically participate in any dividends declared, but such amounts are deferred until delivery of the shares

and are forfeitable if the requisite service is not satisfied. Dividends may accrue in cash or may be reinvested in the Company’s

common stock.

Share-Based Compensation

The following table presents share-based compensation expense:


	Share-Based Compensation Expense	Tax Benefit
2023 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	$59.4	$7.4
2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	52.0	6.3
2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	59.2	5.2

The excess tax benefit recognized from share-based incentive plans was $4.4 million, $10.3 million, and $20.3 million for

the years ended December 31, 2023, 2024, and 2025, respectively.

As of December 31, 2024, the Company had unrecognized share-based compensation expense of $38.1 million. As of

December 31, 2025, the Company had unrecognized share-based compensation of $70.2 million, which will be recognized over

a weighted average period of approximately three years (assuming no forfeitures).

Restricted Stock

The following table summarizes transactions in the Company’s restricted stock units:


	Restricted Stock Units	Weighted Average Grant Date Value Per Unit
Unvested units, as of December 31, 2024 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.8	$147.46
Units granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.3	167.96
Units vested . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(0.4)	137.69
Units forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(0.0)	154.29
Performance condition changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.3	164.94
Unvested units, as of December 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	1.0	$161.80

The Company granted restricted stock units with fair values of $49.3 million, $31.3 million, and $54.8 million for the years

ended December 31, 2023, 2024, and 2025, respectively. These restricted stock units were valued based on the closing price of

the Company’s common stock on the grant date and the number of shares expected to vest. Restricted stock units containing

vesting conditions generally require service over a period of three years to four years and may also require the satisfaction of

certain performance conditions. For awards with performance conditions, the number of restricted stock units expected to vest

may change over time depending upon the performance level expected to be achieved.

The total fair value of restricted stock units vested was $86.2 million, $50.5 million, and $59.0 million for the years ended

December 31, 2023, 2024, and 2025, respectively. As of December 31, 2025, the Company had 1.6 million shares available for

grant under its plans.

Stock Options

The following table summarizes transactions in the Company’s stock options:


	Stock Options	Weighted Average Exercise Price Per Option	Weighted Average Remaining Contractual Life (Years)
Unexercised options outstanding, as of December 31, 2024 . . . . . . . . . . . . . .	1.7	$78.45
Options granted . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	—	—
Options exercised . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(1.4)	75.69
Options forfeited . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	—	—
Options expired . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	(0.0)	203.22
Performance condition changes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.0	129.17
Unexercised options outstanding, as of December 31, 2025 . . . . . . . . . . . . . .	0.3	$92.73	1.4
Exercisable at December 31, 2025 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .	0.2	$76.60	0.7

The Company did not grant any stock options for the years ended December 31, 2023, 2024, and 2025. Stock options

generally vest over a period of four years to five years and expire seven years after the grant date. All stock options have been

granted with exercise prices equal to the closing price of the Company’s common stock on the grant date. Substantially all of

the Company’s outstanding stock options contain both service and performance conditions. For awards with performance

conditions, the number of stock options expected to vest may change over time depending upon the performance level expected

to be achieved.

The Company generally uses treasury stock to settle stock option exercises. The total intrinsic value of stock options

exercised for the years ended December 31, 2023, 2024, and 2025 was $0.2 million, $150.7 million, and $187.6 million,

respectively. The cash received for stock options exercised was zero, $0.3 million, and $2.8 million for the years ended

December 31, 2023, 2024, and 2025, respectively. As of December 31, 2025, the intrinsic value of exercisable stock options

outstanding was $37.0 million, and 1.1 million options were available for grant under the Company’s option plans.