Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2019

Stock Options

Share-Based Compensation

Schedule of components of share-based compensation expense (benefit) recognized

The following table reflects the components of share-based compensation expense (benefit) recognized in our consolidated statements of operations (in millions):

	Three Months Ended March 31,
	2019		2018
Stock options	$	15.7	$	12.7
Restricted stock units		2.2		0.9
STAP awards		11.0		(115.0)
Employee stock purchase plan		0.3		0.3
Total share-based compensation expense (benefit) before tax	$	29.2	$	(101.1)

Summary of weighted-average assumptions to measure the fair value of stock options

	March 31,		March 31,
	2019		2018
Expected volatility	33.9	%	36.1	%
Risk-free interest rate	2.4	%	2.7	%
Expected term of awards (in years)	5.8		6.3
Expected dividend yield	0.0	%	0.0	%

Schedule of activity and status of stock options

				Weighted
		Weighted-		Average	Aggregate
		Average		Remaining	Intrinsic
	Number of	Exercise		Contractual	Value
	Options	Price		Term (Years)	(in millions)
Outstanding at January 1, 2019	6,299,803	$	120.78
Granted	2,011,667		126.54
Exercised	(166,508)		53.10
Forfeited/canceled	(77,200)		130.73
Outstanding at March 31, 2019	8,067,762	$	123.52	7.0	$	38.6
Exercisable at March 31, 2019	3,885,475	$	119.05	5.8	$	32.8
Unvested at March 31, 2019	4,182,287	$	127.67	8.1	$	5.8

Schedule of share-based compensation expense (benefit) recognized

Total share-based compensation expense relating to stock options is recorded as follows (in millions):

	Three Months Ended
	March 31,
	2019		2018
Cost of product sales	$	0.2	$	0.3
Research and development		0.9		0.9
Selling, general and administrative		14.6		11.5
Share-based compensation expense before taxes		15.7		12.7
Related income tax benefit		(3.5)		(2.9)
Share-based compensation expense, net of taxes	$	12.2	$	9.8

Summary of stock option exercise data

Stock option exercise data is summarized below (dollars in millions):

	Three Months Ended
	March 31,
	2019		2018
Number of options exercised		166,508		174,295
Cash received	$	8.8	$	9.2
Total intrinsic value of options exercised	$	10.3	$	10.4

Restricted Stock Units

Share-Based Compensation

Schedule of restricted stock units activity

				Weighted
		Weighted-		Average	Aggregate
	Number of	Average		Remaining	Intrinsic
	Restricted	Grant		Contractual	Value
	Stock Units	Price		Term (Years)		(in millions)
Unvested at January 1, 2019	186,255	$	112.48
Granted	196,489		117.75
Vested	(46,027)		111.04
Forfeited/canceled	(4,373)		119.39
Unvested at March 31, 2019	332,344	$	115.71	9.6	$	39.0

Schedule of share-based compensation expense (benefit) recognized

Total share-based compensation expense relating to restricted stock units is recorded as follows (in millions):

	Three Months Ended March 31,
	2019		2018
Cost of product sales	$	0.2	$	—
Research and development		0.7		0.1
Selling, general and administrative		1.3		0.8
Share-based compensation expense before taxes		2.2		0.9
Related income tax benefit		(0.5)		(0.2)
Share-based compensation expense, net of taxes	$	1.7	$	0.7

STAP awards

Share-Based Compensation

Schedule of share-based compensation expense (benefit) recognized

Share-based compensation expense (benefit) recognized in connection with STAP awards is as follows (in millions):

	Three Months Ended
	March 31,
	2019		2018
Cost of product sales	$	0.7	$	(6.2)
Research and development		1.9		(23.6)
Selling, general and administrative		8.4		(85.2)
Share-based compensation expense (benefit) before taxes		11.0		(115.0)
Related income tax (benefit) expense		(2.5)		26.3
Share-based compensation expense (benefit), net of taxes	$	8.5	$	(88.7)

Schedule of weighted-average assumptions to measure the fair value of outstanding STAP awards

	March 31,		March 31,
	2019		2018
Expected volatility	29.3	%	33.3	%
Risk-free interest rate	2.2	%	2.1	%
Expected term of awards (in years)	2.4		1.2
Expected dividend yield	—	%	—	%

Summary of the activity and status of STAP awards

				Weighted
				Average
		Weighted		Remaining	Aggregate
		Average		Contractual	Intrinsic
	Number of	Exercise		Term	Value
	Awards	Price		(in Years)	(in millions)
Outstanding at January 1, 2019	2,867,979	$	107.85
Granted	—		—
Exercised	(109,667)		61.19
Forfeited	(65,067)		163.22
Outstanding at March 31, 2019	2,693,245	$	108.42	4.8	$	72.9
Exercisable at March 31, 2019	2,675,745	$	108.41	4.8	$	72.3
Unvested at March 31, 2019	17,500	$	109.29	4.8	$	0.6