Share-Based Compensation
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 ValueWeighted Average Remaining Contractual Life (Years)
Aggregate Intrinsic Value (1)
Nonvested at beginning of year881 $152.71 
Granted715 $121.91 
Vested(418)$140.19 
Forfeited(89)$138.15 
Nonvested at end of year1,089 $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 PriceWeighted Average Remaining Contractual Life (Years)
Aggregate Intrinsic Value (1)
Outstanding at beginning of year103 $95.32 
Granted— $— 
Exercised(51)$95.39 
Forfeited(1)$91.75 
Outstanding at end of year51 $95.31 0.7$1,407 
Exercisable at end of year51 $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.

Historical Timeline

Fiscal YearFiled
2025Feb 20, 2026Showing above
2024Feb 21, 2025
2023Feb 22, 2024
2022Feb 23, 2023
2021Feb 17, 2022
2020Feb 19, 2021
2019Feb 21, 2020
2018Feb 25, 2019
2017Feb 27, 2018
2016Feb 27, 2017
2015Feb 26, 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.