Business & Consumer Services: Stock-based compensation (ASC 718)

During fiscal 2025, 2024 and 2023, the total intrinsic value of options exercised was $ 237 million, $ 185 million and $ 134 million, respectively, and the tax benefit realized was $ 23 million , $ 28 million and $ 28 million, respectively. As of September 30, 2025, there was $ 29 million of total unrecognized compensation cost related to unvested options, which is expected to be recognized over a weighted-average period of approximately 0.44 year.

Restricted Stock Units

RSUs issued under the EIP primarily vest ratably over three years from the date of grant, subject to earlier vesting in full under certain conditions. Upon vesting, RSUs can be settled in class A common stock on a one -for-one basis or in cash, or a combination thereof, at the Company’s option. T he Company does not currently intend to settle any RSUs in cash. During the vesting period, RSU award recipients are eligible to receive dividend equivalents, but do not participate in the voting rights granted to the holders of the underlying class A common stock.

The fair value and compensation cost before estimated forfeitures is calculated using the closing price of class A common stock on the date of grant. During fiscal 2025, 2024 and 2023, the weighted-average grant date fair value of RSUs granted was $ 315.21 , $ 253.29 and $ 212.94 , respectively. During fiscal 2025, 2024 and 2023, the total grant date fair value of RSUs vested was $ 687 million, $ 616 million and $ 486 million, respectively.

The following table summarizes the Company’s RSU activity:

As of December 31, 2025, there was $ 14 million of total unrecognized compensation cost related to non-vested Options. The cost is expected to be recognized over a weighted-average period o f 1.7 years.

Restricted Stock Units

RSUs generally vest ratably over three years . A participant’s unvested awards are forfeited upon termination of employment; however, in the event of termination due to job elimination (as defined by the Company), a participant will retain a pro-rata portion of the unvested awards for services performed through the date of termination. In the event a participant terminates employment due to disability or retirement more than seven months after receiving the award, the participant retains all of their awards without providing additional service to the Company. Compensation expense is recognized over the shorter of the vesting periods stated in the LTIP or the date the individual becomes eligible to retire but not less than seven months .

PART II

ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA - NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

The following table summarizes the Company’s RSU activity for the year ended December 31, 2025:

As of May 31, 2026, the total unrecognized compensation cost related to all unvested stock-based awards was $ 119.6 million and is expected to be recognized over a weighted-average period of 2.5 years.

Stock options: Stock options entitle the holder to purchase, at the end of the vesting term, a specified number of shares of the Company’s common stock at an exercise price per share equal to the closing market price of the Company’s common stock on the date of grant. All stock options have a contractual life of ten years from the date of grant and vest one-third per annum for executives and after one year for outside directors. Vesting is generally achieved with active employment or participation as a member of the Board on the date of vesting.

The following table summarizes stock option activity for fiscal 2026:

Weighted-
Weighted-	average
Shares	average	remaining	Aggregate
subject	exercise price	contractual	intrinsic
In millions, except per share amounts	to options (1)	per share	term (years)	value (2)
Outstanding as of May 31, 2025	3.0	84.33
Granted	0.3	139.25
Exercised	( 0.5	60.85
Forfeited	( 0.0	135.10
Outstanding as of May 31, 2026	2.8	93.76	4.4	40.8
Exercisable as of May 31, 2026	2.2	84.85	3.5	40.8

Includes the activity related to long-term incentive plan stock options granted in July 2016, which vested in fiscal 2021.

Total shares valued at the market price of the underlying stock as of May 31, 2026 less the exercise price.

Other information pertaining to stock option grants is as follows: