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SHARE-BASED COMPENSATION | 3 Months Ended
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Mar. 31, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
SHARE-BASED COMPENSATION | SHARE-BASED COMPENSATION As of March 31, 2019, approximately 2.6 million shares of common stock were reserved for future issuance under the Company’s stock plans. A maximum of approximately 1.1 million of these shares can be awarded as restricted stock units (“RSUs”). Stock Option Information A summary of stock option activity under all stock plans for the three months ended March 31, 2019, is presented as follows (in millions, except per share amounts):
|  | Stock Options Outstanding
|  | Number Outstanding |  | Weighted Average Exercise Price Per Share
Balance at December 31, 2018 |  | 6.2 |  |  | $ | 200.79 |
Granted |  | 0.3 |  |  | $ | 541.37 |
Exercised |  | (0.4 | ) |  | $ | 143.80 |
Forfeited/expired |  | (0.1 | ) |  | $ | 337.41 |
Balance at March 31, 2019 |  | 6.0 |  |  | $ | 219.34 |
As of March 31, 2019, options to purchase an aggregate of 4.8 million shares of common stock were exercisable at a weighted average price of $174.13 per share. Restricted Stock Units Information A summary of RSUs activity for the three months ended March 31, 2019, is presented as follows (in millions, except per share amounts):
| Shares |  | Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2018 | 2.0 |  |  | $ | 295.70 |
Granted | 0.7 |  |  | $ | 545.52 |
Vested | (0.7 | ) |  | $ | 250.63 |
Forfeited | — |  |  | $ | 353.94 |
Unvested balance at March 31, 2019 | 2.0 |  |  | $ | 394.13 |
During the three months ended March 31, 2019, approximately 23,000 RSUs were forfeited. Employee Stock Purchase Plan Under the Employee Stock Purchase Plan (“ESPP”), employees purchased approximately 0.1 million shares for $30.3 million and approximately 0.1 million shares for $25.3 million during the three months ended March 31, 2019, and 2018, respectively. Share-based Compensation Expense The following table summarizes share-based compensation expense for the three months ended March 31, 2019, and 2018 (in millions):
| Three Months Ended March 31,
| 2019 |  | 2018
Cost of sales - products | $ | 11.0 |  |  | $ | 8.2 |
Cost of sales - services | 4.5 |  |  | 3.9 |
Total cost of sales | 15.5 |  |  | 12.1 |
Selling, general and administrative | 38.6 |  |  | 29.5 |
Research and development | 22.8 |  |  | 16.3 |
Share-based compensation expense before income taxes | 76.9 |  |  | 57.9 |
Income tax benefit | 16.4 |  |  | 12.3 |
Share-based compensation expense after income taxes | $ | 60.5 |  |  | $ | 45.6 |
The Black-Scholes option pricing model is used to estimate the fair value of stock options granted under the Company’s stock plans and rights to acquire stock granted under the ESPP. The weighted average estimated fair values of stock options and rights to acquire stock under the ESPP, as well as the weighted average assumptions used in calculating those fair values, were as follows:
| Three Months Ended March 31,
| 2019 |  | 2018
Stock Options |  |  |
Risk-free interest rate | 2.5 | % |  | 2.6 | %
Expected term (in years) | 4.3 |  |  | 4.3 |
Expected volatility | 31 | % |  | 33 | %
Fair value at grant date | $ | 157.64 |  |  | $ | 130.51 |
ESPP |  |  |
Risk-free interest rate | 2.5 | % |  | 1.9 | %
Expected term (in years) | 1.2 |  |  | 1.2 |
Expected volatility | 31 | % |  | 32 | %
Fair value at grant date | $ | 154.20 |  |  | $ | 124.61 |

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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