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Autos & Transportation Equipment: Stock-based compensation (ASC 718)

Note: ASC 718-10-50 disclosures including unrecognized compensation cost and expected recognition period.
GENERAL DYNAMICS CORP (GD) · Form 10-K for period ended 2025-12-31 · filed 2026-01-30 · Section: • Expected term is based on our historical experience

The resulting weighted average fair value per stock option granted (in dollars) was $ 62.18 in 2025, $ 60.55 in 2024 and $ 47.46 in 2023. Stock option expense reduced pretax operating earnings (and on a diluted per-share basis) by $ 77 ($ 0.22 ) in 2025 , $ 75 ($ 0.21 ) in 2024 and $ 82 ($ 0.24 ) in 2023. On December 31, 2025, we had $ 37 of unrecognized compensation cost related to stock options, which is expected to be recognized over a weighted average period of 1.7 years.

A summary of stock option activity during 2025 follows:

In Shares and DollarsShares Under OptionWeighted Average Exercise Price Per Share
Outstanding on December 31, 202410,150,922206.08
Granted1,327,450258.36
Exercised( 2,346,690 )188.17
Forfeited/canceled( 81,080 )257.89
Outstanding on December 31, 20259,050,602217.93
Vested and expected to vest on December 31, 20258,966,663217.50
Exercisable on December 31, 20255,782,637195.45

Summary information with respect to our stock options’ intrinsic value and remaining contractual term on December 31, 2025, follows:

Verbatim excerpt (179 words), formatting simplified. View full filing on EDGAR →

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