Annual report [Section 13 and 15(d), not S-K Item 405]

STOCK-BASED COMPENSATION (Tables)

v3.25.4
STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
Dec. 31, 2025
Share-Based Payment Arrangement [Abstract]  
Total Stock-Based Compensation Expense Total stock-based compensation expense in our Consolidated Statements of Income during the twelve months ended December 31, 2025, 2024 and 2023 was as follows:
  Twelve Months Ended December 31,
2025 2024 2023
(In millions)
Cost of services $ 13.3  $ 13.4  $ 14.5 
Selling, general and administrative expenses 65.1  68.2  57.3 
Stock-based compensation expense, before income taxes $ 78.4  $ 81.6  $ 71.8 
Assumptions Used to Estimate Fair Value of Stock Options Granted
The fair value for stock options granted during the twelve months ended December 31, 2025, 2024 and 2023 was estimated at the date of grant using the binomial model with the following weighted-average assumptions:
  Twelve Months Ended December 31,
  2025 2024 2023
Dividend yield 0.6  % 0.8  % 0.8  %
Expected volatility 30.0  % 31.9  % 33.1  %
Risk-free interest rate 4.2  % 4.1  % 3.9  %
Expected term (in years) 5.3 4.8 4.8
Weighted-average fair value of stock options granted $ 78.32 $ 75.97 $ 63.70
Changes in Outstanding Options and Weighed-Average Exercise Price Per Share
The following table summarizes changes in outstanding stock options during the twelve months ended December 31, 2025, as well as stock options that are vested and expected to vest and stock options exercisable at December 31, 2025: 
Shares Weighted-Average Exercise Price Weighted-Average Remaining Contractual Term Aggregate Intrinsic Value
  (In thousands)   (In years) (In millions)
Outstanding at December 31, 2024 1,397  $ 194.36     
Granted (all at market price) 240  $ 260.39 
Exercised (221) $ 177.69 
Forfeited and canceled (29) $ 238.47 
Outstanding at December 31, 2025 1,387  $ 207.53  5.3 $ 36.3 
Vested and expected to vest at December 31, 2025 1,377  $ 207.14  5.3 $ 36.3 
Exercisable at December 31, 2025 921  $ 185.46  4.1 $ 35.7 
The following table summarizes changes in outstanding options and the related weighted-average exercise price per share for the twelve months ended December 31, 2024 and 2023:
  December 31,
  2024 2023
  Shares
Weighted-
Average Exercise Price
 Shares
Weighted-
Average Exercise Price
  (In thousands) (In thousands)
Outstanding at the beginning of the year 1,961  $ 171.93  1,964  $ 164.72 
Granted (all at market price) 233  $ 253.10  259  $ 210.37 
Exercised (665) $ 151.56  (218) $ 143.98 
Forfeited and canceled (132) $ 183.23  (44) $ 205.81 
Outstanding at the end of the year 1,397  $ 194.36  1,961  $ 171.93 
Exercisable at end of year 776  $ 162.29  1,326  $ 150.58 
Summary of Changes in Nonvested Stock and Weighted-Average Grant Date Fair Value
The following table summarizes changes in these other stock awards during the twelve months ended December 31, 2025, 2024 and 2023 and the related weighted-average grant date fair value:
Shares Weighted-Average
Grant Date
Fair Value
  (In thousands)  
Nonvested at December 31, 2022 784  $ 192.47 
Granted 373  $ 205.98 
Vested (215) $ 172.62 
Forfeited (86) $ 194.11 
Nonvested at December 31, 2023 856  $ 203.17 
Granted 334  $ 250.64 
Vested (231) $ 178.51 
Forfeited (88) $ 217.04 
Nonvested at December 31, 2024 871  $ 226.50 
Granted 297  $ 254.95 
Vested (214) $ 213.40 
Forfeited (83) $ 231.48 
Nonvested at December 31, 2025 871  $ 239.75