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SHARE-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2019

Share-based Payment Arrangement [Abstract]

Summary of Stock Option Activity Under All Stock Plans

A summary of stock option activity under all stock plans for the nine months ended September 30, 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						0.6						$	521.46
Exercised						(1.0)						$	154.71
Forfeited/expired						(0.1)						$	344.13
Balance at September 30, 2019						5.7						$	239.91

Summary of RSU Activity

A summary of RSUs activity for the nine months ended September 30, 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			0.8						$	541.18
Vested			(0.8)						$	255.09
Forfeited			(0.1)						$	368.66
Unvested balance at September 30, 2019			1.9						$	405.39

Summary of Share-Based Compensation Expense

The following table summarizes share-based compensation expense for the three and nine months ended September 30, 2019, and 2018 (in millions):

			Three Months Ended  September 30,																		Nine Months Ended  September 30,
			2019						2018						2019						2018
Cost of sales - products			$	12.4					$	10.1					$	34.8					$	27.2
Cost of sales - services			5.6						4.5						14.9						12.5
Total cost of sales			18.0						14.6						49.7						39.7
Selling, general and administrative			44.7						35.9						124.0						98.1
Research and development			26.6						20.2						74.5						54.4
Share-based compensation expense before income taxes			89.3						70.7						248.2						192.2
Income tax benefit			18.1						14.9						51.0						40.0
Share-based compensation expense after income taxes			$	71.2					$	55.8					$	197.2					$	152.2

Schedule of Estimated Fair Value of the Option Using Black-Scholes Option Pricing Model, Weighted Average Assumptions

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  September 30,																		Nine Months Ended  September 30,
			2019						2018						2019						2018
Stock Options
Risk-free interest rate			1.5%						2.7%						2.0%						2.7%
Expected term (in years)			3.9						4.3						4.1						4.3
Expected volatility			30%						32%						30%						33%
Fair value at grant date			$127.19						$159.67						$142.22						$145.15
ESPP
Risk-free interest rate			1.9%						2.5%						2.1%						2.1%
Expected term (in years)			1.2						1.3						1.2						1.3
Expected volatility			29%						31%						29%						32%
Fair value at grant date			$146.48						$153.72						$148.99						$135.84

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Tabular disclosure of cost recognized for award under share-based payment arrangement by plan. Includes, but is not limited to, related tax benefit.

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Tabular disclosure of the number and weighted-average grant date fair value for restricted stock units that were outstanding at the beginning and end of the year, and the number of restricted stock units that were granted, vested, or forfeited during the year.

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Tabular disclosure for stock option plans. Includes, but is not limited to, outstanding awards at beginning and end of year, grants, exercises, forfeitures, and weighted-average grant date fair value.

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Tabular disclosure of the weighted-average grant-date fair value of equity options or other equity instruments granted during the year.

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