Equity-based Compensation Plans
Our 2021 Equity Incentive Plan (the “2021 Plan”) provides for the granting of incentive stock options, non-statutory stock options, stock appreciation rights, restricted stock awards, restricted stock unit awards, performance awards, and other equity-based awards. The number of shares of our common stock reserved for issuance under the 2021 Plan will be increased on January 1 of each calendar year through January 1, 2031. As of December 31, 2025, the maximum number of shares of our common stock that may be issued under the Plans is 571,023,353 shares and 386,296,408 shares of common stock are available for future grants to employees.
Shares subject to stock awards granted under the 2021 Plan that expire or terminate without being exercised in full, or that are paid out in cash rather than in shares, do not reduce the number of shares available for issuance under the 2021 Plan. Additionally, shares become available for future grant under the 2021 Plan if they were issued under stock awards under the 2021 Plan and we repurchase them or they are forfeited.
RSUs
RSUs generally vest over 2 to 4 years from the vesting start date, subject to the recipient remaining an employee at each vesting date.
As of December 31, 2025, we had $973 million of unamortized compensation costs related to all unvested RSU awards. The unamortized compensation costs are expected to be recognized over a weighted-average period of approximately 2.5 years, net of estimated forfeitures.
The table below summarizes our RSU activity:
Outstanding RSUs
(in millions, except unit price)
Number of RSUsWeighted Average Grant-Date Fair Value
December 31, 202464 $18.82 
Granted30 25.52 
Vested(24)18.25 
Forfeited / cancelled(11)20.24 
December 31, 202559 $22.17 
The following information is provided for our RSUs:
(in millions, except unit price)
202520242023
Weighted average grant-date fair value of RSUs granted$25.52 $19.77 $16.31 
Fair value of RSUs at vesting$624 $402 $223 
Stock Options
In the past, we granted stock options to certain employees. Stock options generally expire ten years from the grant date.
The table below summarizes our stock option activity:
Outstanding Options
(in millions, except unit price)
Number
of
Options
Weighted
Average Exercise
Price
Weighted-Average
Remaining Contractual
Term (in years)
Aggregate Intrinsic Value
December 31, 202415 $8.26 3.83$213 
Forfeited / cancelled— $1.99 
Exercised(2)$2.30 
December 31, 202513 $9.15 2.71$195 
Exercisable as of December 31, 202513 $9.15 2.71$195 
The following information is provided for our stock options:
(in millions, except unit price)
202520242023
Intrinsic fair value of stock options exercised$49 $35 $57 
Equity-based Compensation Expense
The following table presents the effects of equity-based compensation on the consolidated statements of operations:
(in millions)
202520242023
Cost of sales$17 $17 $14 
Operating, general and administrative458 416 312 
Total$475 $433 $326 

Historical Timeline

Fiscal YearFiled
2025Feb 26, 2026Showing above
2024Feb 25, 2025

About Stock Compensation Disclosures

Stock-based compensation disclosures detail the equity awards granted to employees and executives — including stock options, restricted stock units (RSUs), and performance shares — along with the valuation methods and assumptions used to expense them. This section reveals the true cost of talent retention and the alignment between management incentives and shareholder interests.

Key signals: total unrecognized compensation expense and its expected recognition period signal future earnings headwinds from already-granted awards. For stock options, examine Black-Scholes assumptions — expected volatility, risk-free rate, and expected term — as understating any of these reduces reported compensation expense. Compare stock compensation expense as a percentage of revenue against peers to assess dilution cost. Watch vesting schedules for acceleration clauses tied to change-of-control events. Performance-based awards with undemanding targets may indicate weak governance. Add back stock compensation to operating cash flow to calculate a more conservative free cash flow figure.