14. Share-Based Compensation
The following table presents share-based compensation cost and the unrecognized compensation cost by award type (in millions):
 Amount of share-based compensation cost recognizedUnrecognized compensation costWeighted-average
remaining term (in years)
 Year ended December 31,December 31,
 2025202420232025
Time-based restricted stock and restricted stock units$117 $141 $172 $53 1.7
Performance-based restricted stock units161 123 36 41 1.5
Stock Options  
Other8 
Total share-based compensation cost (1)
$286 $273 $218 
(1)The income tax benefit realized from share-based compensation was $42 million, $9 million and $17 million, respectively, for the years ended December 31, 2025, 2024 and 2023.
As of December 31, 2025, there were approximately 17 million unissued common shares available for future grants authorized under the Plans.
Incentive Stock Plans
Time-Based Restricted Stock and Restricted Stock Units
The following table summarizes the changes in non-vested time-based restricted stock and restricted stock units during the year ended December 31, 2025:
 Number of shares (in thousands)Weighted-average grant-date fair value
Non-vested as of December 31, 20248,456$32.94 
Granted1,15952.02 
Vested(4,083)32.81 
Forfeited(167)37.10 
Non-vested as of December 31, 20255,365$37.03 
The total fair value of time-based restricted stock and restricted stock units that vested during the years ended December 31, 2025, 2024 and 2023 was approximately $134 million, $208 million and $118 million, respectively.
Performance-Based Restricted Stock Units
The following table summarizes the changes in non-vested performance-based restricted stock units during the year ended December 31, 2025:
 Number of shares (in thousands)Weighted-average grant-date fair value
Non-vested as of December 31, 20244,040$33.28 
Granted1,50750.27 
Vested(1,632)33.70 
Performance adjustments1,00347.71 
Forfeited(71)47.16 
Non-vested as of December 31, 20254,847$41.24 
The total fair value of performance-based restricted stock units that vested during the years ended December 31, 2025, 2024 and 2023 was approximately $55 million, $47 million and $120 million, respectively.
Stock Options
During the year ended December 31, 2025, 1.7 million options were exercised and 9 thousand options were forfeited and expired with a weighted-average exercise price of $24.35 and $21.35, respectively. As of December 31, 2025, 2.5 million options were outstanding, vested and exercisable, with a weighted-average exercise price of $24.07, weighted average remaining contractual term of 3.4 years and aggregate intrinsic value of $161 million. As of December 31, 2024, 4.2 million options were outstanding, vested and exercisable, with a weighted-average exercise price of $24.18.

The aggregate intrinsic value (market value of stock less option exercise price) represents the total pre-tax intrinsic value, based on the Company’s closing stock price as of December 31, 2025, which would have been received by the option holders had all option holders exercised their “in-the-money” options as of that date.
There were no options granted in 2025, 2024 or 2023. There were no options that vested during the years ended December 31, 2025 and 2024. The total fair value of options that vested during the year ended December 31, 2023 was approximately $6 million.
Proceeds received from the exercise of stock options were $41 million, with a corresponding realized tax benefit of $12 million, for the year ended December 31, 2025. The total intrinsic value of options exercised for the years ended December 31, 2025, 2024 and 2023 was approximately $70 million, $56 million and $29 million, respectively.

Historical Timeline

Fiscal YearFiled
2025Feb 12, 2026Showing above
2024Feb 13, 2025
2023Feb 12, 2024
2022Feb 13, 2023
2021Feb 14, 2022
2020Feb 12, 2021
2017Feb 15, 2018
2016Feb 6, 2017
2015Feb 12, 2016

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.