Share-Based Compensation

12 Months Ended

Dec. 31, 2025

Share-Based Payment Arrangement [Abstract]

Share-based compensation costs of $47 million, $44 million, and $57 million, were recorded for the years ended December 31, 2025, 2024, and 2023, respectively. The total income tax benefits recognized in the consolidated statements of income for share-based compensation arrangements were approximately $13 million, $12 million, and $15 million for 2025, 2024, and 2023, respectively. At December 31, 2025, total compensation cost related to nonvested awards not yet recognized was approximately $84 million. There have been no modifications to valuation methodologies or methods during the years ended December 31, 2025, 2024, or 2023.

As of December 31, 2025, there were 6 million shares of common stock available for issuance pursuant to future equity-based compensation awards.

A summary of our restricted stock units activity and related information is as follows:


Nonvested Share Awards (RSUs)	Shares (1)	Weighted Average Grant Date Fair Value		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (1)
Nonvested at beginning of year	881	$	152.71
Granted	715	$	121.91
Vested	(418)	$	140.19
Forfeited	(89)	$	138.15
Nonvested at end of year	1,089	$	136.98	1.8	$	133,877

(1) In thousands

A summary of our stock appreciation rights activity and related information is as follows:


Stock Appreciation Rights (SARs)	Shares (1)	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value (1)
Outstanding at beginning of year	103	$	95.32
Granted	—	$	—
Exercised	(51)	$	95.39
Forfeited	(1)	$	91.75
Outstanding at end of year	51	$	95.31	0.7	$	1,407
Exercisable at end of year	51	$	95.31	0.7	$	1,407

(1) In thousands

The aggregate intrinsic value of SARs exercised and RSUs vested during the years ended December 31, 2025, 2024, and 2023 was $59 million, $68 million, and $89 million, respectively. The fair value of RSUs is based on the price of our stock on the date of grant. The fair value of SARs is estimated using a Black-Scholes option pricing model. We ceased issuing SARs in 2017. The total fair value of SARs and RSUs vested during the years ended December 31, 2025, 2024, and 2023 were $60 million, $51 million, and $41 million, respectively.