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SHARE-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2021

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, 2021, 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, 2020						13.4						$	101.69
Options granted						1.1						$	294.53
Options exercised						(2.3)						$	74.06
Options forfeited/expired						(0.1)						$	194.12
Balance at September 30, 2021						12.1						$	123.58

Summary of RSU Activity

A summary of RSUs activity under all stock plans for the nine months ended September 30, 2021, is presented as follows (in millions, except per share amounts):

			Shares						Weighted Average Grant Date Fair Value
Unvested balance at December 31, 2020			5.3						$	163.30
RSUs granted			1.9						$	252.42
RSUs vested			(2.1)						$	144.04
RSUs forfeited			(0.3)						$	191.29
Unvested balance at September 30, 2021			4.8						$	204.31

Summary of Share-Based Compensation Expense

The following table summarizes share-based compensation expense for the three and nine months ended September 30, 2021, and 2020 (in millions):

			Three Months Ended September 30,												Nine Months Ended September 30,
			2021						2020						2021						2020
Cost of sales – products			$	19.0					$	16.2					$	50.9					$	43.0
Cost of sales – services			6.0						7.1						16.9						17.8
Total cost of sales			25.0						23.3						67.8						60.8
Selling, general, and administrative			62.5						54.2						171.3						149.5
Research and development			35.4						29.5						98.1						84.1
Share-based compensation expense before income taxes			122.9						107.0						337.2						294.4
Income tax benefit			24.8						22.3						67.9						61.2
Share-based compensation expense after income taxes			$	98.1					$	84.7					$	269.3					$	233.2

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 share-based compensation plans and rights to acquire stock granted under the ESPP. The weighted average estimated fair values of stock options and the rights to acquire stock under the ESPP, as well as the weighted average assumptions used in calculating the fair values of stock options and the rights to acquire stock under the ESPP that were granted during the three and nine months ended September 30, 2021, and 2020, were as follows:

			Three Months Ended September 30,												Nine Months Ended September 30,
			2021						2020						2021						2020
Stock Options
Risk-free interest rate			0.8%						0.2%						0.8%						0.6%
Expected term (in years)			3.8						3.9						4.1						4.1
Expected volatility			31%						34%						32%						32%
Fair value at grant date			$87.35						$62.65						$78.17						$53.57
ESPP
Risk-free interest rate			0.1%						0.1%						0.1%						0.9%
Expected term (in years)			1.2						1.3						1.2						1.2
Expected volatility			29%						34%						29%						30%
Fair value at grant date			$91.07						$67.85						$89.98						$57.29

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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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