DAVIS D SCOTT 4

What Happened
Director Davis D. Scott exercised 3,171 stock options on 2026-02-19 at an exercise price of $117.58 (cost $372,846) and immediately sold 2,367 of the resulting shares in an open-market sale at $240.00 each for gross proceeds of $568,080. The filing also shows the corresponding derivative (the options) were converted/terminated as part of the exercise. After the exercise and sale, he retained 804 of the exercised shares (3,171 exercised − 2,367 sold), i.e., a net acquisition of 804 shares (the filing does not state total shares owned after the transaction).

Key Details

• Transaction date: 2026-02-19 (reported on Form 4 filed 2026-02-20 — timely)
• Exercise: 3,171 shares at $117.58 = $372,846 (code M: option exercise/conversion)
• Open-market sale: 2,367 shares at $240.00 = $568,080 (code S: sale)
• Derivative disposal: 3,171 option units reported as disposed at $0.00 (reflects conversion/termination of the options)
• Net change from these lines: +804 common shares retained (3,171 − 2,367) unless other undisclosed transactions affect holdings
• Footnotes: F1 — options were adjusted after the Oct 30, 2025 Solstice Advanced Materials spin-off (more shares, lower strike); F2 — options originated from the 2016 Non-Employee Director plan and vested in scheduled installments beginning 2018

Context

• This is an option exercise combined with a partial sale (common "cashless" outcome): options were exercised into shares, some shares were sold in the open market, and the option instruments were converted/terminated.
• Sales by non-employee directors are often routine portfolio management; factual filing shows both acquisition (exercise) and a disposition (sale).
• The filing was timely (reported the next day); the Form does not list total beneficial ownership after these transactions.