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Stock-Based Compensation
9 Months Ended
Sep. 30, 2025
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation:
Stock-based compensation cost for stock awards and stock options is measured at grant date, based on the fair value of the award, and is recognized over the employee requisite service period. The following table presents total stock-based compensation cost included in income from continuing operations.
Three Months Ended September 30,Nine Months Ended September 30,
(Dollars in millions)2025202420252024
Cost$67 $56 $199 $165 
Selling, general and administrative233 167 694 511 
Research and development144 107 393 290 
Pre-tax stock-based compensation cost$444 $330 $1,285 $966 
Income tax benefits(228)(131)(578)(353)
Total net stock-based compensation cost$215 $199 $707 $613 
Pre-tax stock-based compensation cost for the three months ended September 30, 2025 increased $114 million compared to the corresponding period in the prior year due to increases in restricted stock units ($85 million) and performance share units ($19 million).
Pre-tax stock-based compensation cost for the nine months ended September 30, 2025 increased $319 million compared to the corresponding period in the prior year due to increases in restricted stock units ($239 million), performance share units ($53 million), and stock options ($21 million).
For the three and nine months ended September 30, 2025, the pre-tax stock-based compensation cost increases reflect the company's annual cycles for executives and other employees and the issuance and assumption of stock-based compensation awards in connection with the HashiCorp acquisition.
Total unrecognized compensation cost related to non-vested awards at September 30, 2025 was $2.3 billion and is expected to be recognized over a weighted-average period of approximately 2.6 years.