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STOCK-BASED COMPENSATION
6 Months Ended
Jun. 30, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION STOCK-BASED COMPENSATION
Stock-based compensation expense related to awards issued under the Company's incentive compensation plans for the three and six months ended June 30, 2022 and 2021 was as follows (in millions):
 Three Months Ended
June 30,
Six Months Ended
June 30,
 2022202120222021
Cost of sales$6.9 $5.7 $13.1 $11.2 
Selling, general, and administrative expenses21.1 18.3 39.8 34.8 
Research and development expenses8.2 6.3 15.7 12.5 
Total stock-based compensation expense36.2 30.3 68.6 58.5 
Income tax benefit(5.9)(4.9)(10.3)(8.8)
Total stock-based compensation expense, net of tax$30.3 $25.4 $58.3 $49.7 

At June 30, 2022, the total remaining compensation cost related to nonvested stock options, restricted stock units, market-based restricted stock units, and employee stock purchase plan ("ESPP") subscription awards amounted to $233.8 million, which will be amortized on a straight-line basis over the weighted-average remaining requisite service period of 33 months.

During the six months ended June 30, 2022, the Company granted 1.4 million stock options at a weighted-average
exercise price of $106.14, and 0.6 million restricted stock units at a weighted-average grant-date fair value of $106.12. During the six months ended June 30, 2022, the Company also granted 0.1 million market-based restricted stock units at a weighted-average grant-date fair value of $125.50 and issued an additional 0.1 million shares of common stock related to a previous
year's grant of market-based restricted stock units since the payout percentage achieved at the end of the performance period was in excess of the targeted shares. The market-based restricted stock units granted during the six months ended June 30, 2022 vest based on a combination of certain service and market conditions. The actual number of shares issued will be determined based on the Company's total shareholder return relative to a selected industry peer group over a three-year performance period and may range from 0% to 175.0% of the targeted number of shares granted.
Fair Value Disclosures

The weighted-average assumptions used in a Monte Carlo simulation model to determine the fair value of the market-based restricted stock units granted during the six months ended June 30, 2022 and 2021 included a risk-free interest rate of 2.8% and 0.4%, respectively, and an expected volatility rate of 33.8% and 34.4%, respectively.

The following table includes the weighted-average grant-date fair values of stock options granted during the periods indicated and the related weighted-average assumptions used in the Black-Scholes option pricing model:
 Option Awards
Three Months Ended
June 30,
Six Months Ended
June 30,
 2022202120222021
Average risk-free interest rate3.0 %0.8 %3.0 %0.8 %
Expected dividend yieldNoneNoneNoneNone
Expected volatility31.4 %33.5 %31.4 %33.5 %
Expected term (years)5.05.05.05.0
Fair value, per option$35.07 $28.60 $35.08 $28.54 
The following table includes the weighted-average grant-date fair values for ESPP subscriptions granted during the periods indicated and the related weighted-average assumptions used in the Black-Scholes option pricing model:
 ESPP
Three Months Ended
June 30,
Six Months Ended
June 30,
 2022202120222021
Average risk-free interest rate1.1 %0.0 %0.3 %0.1 %
Expected dividend yieldNoneNoneNoneNone
Expected volatility31.5 %32.3 %32.1 %36.8 %
Expected term (years)0.60.60.60.6
Fair value, per share$23.63 $26.03 $28.63 $22.65