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Share-Based Compensation (Tables) | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Summary of RSU Activity | RSU activity for the year ended December 31, 2024, was as follows (in millions, except per share amounts):
| Shares |  | Weighted-Average Grant Date Fair Value Per Share
Unvested balance as of December 31, 2023 | 5.0 |  |  | $ | 245.75 |
Granted | 2.4 |  |  | $ | 392.89 |
Vested | (1.9) |  |  | $ | 237.99 |
Forfeited | (0.3) |  |  | $ | 287.47 |
Unvested balance as of December 31, 2024 | 5.2 |  |  | $ | 314.39 |
Summary Of Stock Option Activity Under All Stock Plans | NSO activity for the year ended December 31, 2024, was as follows (in millions, except per share amounts):
| Stock Options Outstanding
| Number Outstanding |  | Weighted-Average Exercise Price Per Share
Balance as of December 31, 2023 | 9.8 |  |  | $ | 174.90 |
Options granted | — |  |  | $ | — |
Options exercised | (2.6) |  |  | $ | 122.01 |
Options forfeited/expired | (0.1) |  |  | $ | 256.60 |
Balance as of December 31, 2024 | 7.1 |  |  | $ | 192.90 |
Summary Of Significant Ranges Of Outstanding And Exercisable Options | The following table summarizes significant ranges of outstanding and exercisable options as of December 31, 2024 (number of shares and aggregate intrinsic value in millions):
|  | Options Outstanding |  | Options Exercisable
Range of Exercise Prices |  | Number of Shares |  | Weighted-Average Remaining Contractual Life |  | Weighted-Average Exercise Price Per Share |  | Aggregate Intrinsic Value (1) |  | Number of Shares |  | Weighted-Average Remaining Contractual Life |  | Weighted-Average Exercise Price Per Share |  | Aggregate Intrinsic Value (1)
$51.86-$77.00 |  | 1.0 |  |  | 1.1 |  | $ | 65.25 |  |  |  |  | 1.0 |  |  |  |  | $ | 65.25 |  |  |
$77.04-$139.52 |  | 1.0 |  |  | 2.6 |  | $ | 109.40 |  |  |  |  | 1.0 |  |  |  |  | $ | 109.40 |  |  |
$143.49-$174.26 |  | 0.9 |  |  | 4.2 |  | $ | 169.07 |  |  |  |  | 0.9 |  |  |  |  | $ | 169.07 |  |  |
$175.53-$182.83 |  | 0.8 |  |  | 4.6 |  | $ | 179.98 |  |  |  |  | 0.8 |  |  |  |  | $ | 179.98 |  |  |
$182.90-$229.39 |  | 1.1 |  |  | 4.9 |  | $ | 217.17 |  |  |  |  | 0.7 |  |  |  |  | $ | 213.20 |  |  |
$235.20-$245.60 |  | 0.8 |  |  | 5.8 |  | $ | 243.86 |  |  |  |  | 0.7 |  |  |  |  | $ | 243.81 |  |  |
$249.83-$304.67 |  | 1.1 |  |  | 5.0 |  | $ | 296.46 |  |  |  |  | 0.6 |  |  |  |  | $ | 293.94 |  |  |
$313.64-$340.27 |  | — |  |  | 5.4 |  | $ | 318.18 |  |  |  |  | — |  |  |  |  | $ | 317.68 |  |  |
$341.16-$341.16 |  | — |  |  | 6.7 |  | $ | 341.16 |  |  |  |  | — |  |  |  |  | $ | 341.16 |  |  |
$347.42-$347.42 |  | 0.4 |  |  | 6.6 |  | $ | 347.42 |  |  |  |  | 0.4 |  |  |  |  | $ | 347.42 |  |  |
Total |  | 7.1 |  |  | 4.1 |  | $ | 192.90 |  |  | $ | 2,324 |  |  | 6.1 |  |  | 4.0 |  | $ | 181.18 |  |  | $ | 2,063 |
(1)The aggregate intrinsic value represents the total pre-tax intrinsic value, based on the Company’s closing stock price of $521.96 as of December 31, 2024, which would have been received by the option holders had all in-the-money option holders exercised their options as of that date.
Summary of PSU Activity | PSU activity for the year ended December 31, 2024, was as follows (in millions, except per share amounts):
| Shares |  | Weighted-Average Grant Date Fair Value Per Share
Unvested balance as of December 31, 2023 | 0.2 |  |  | $ | 259.60 |
Granted | 0.1 |  |  | $ | 395.92 |
Vested | — |  |  | $ | 276.20 |
Performance change | — |  |  | $ | 290.33 |
Forfeited | — |  |  | $ | 294.75 |
Unvested balance as of December 31, 2024 | 0.3 |  |  | $ | 306.94 |
Summary Of Share-Based Compensation Expense | The following table summarizes share-based compensation expense (in millions):
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
Cost of sales – products (before capitalization) | $ | 105.5 |  |  | $ | 92.7 |  |  | $ | 79.0 |
Amounts capitalized into inventory (1) | (98.9) |  |  | (84.3) |  |  | (17.2) |
Amounts recognized in income for amounts previously capitalized in inventory | 91.9 |  |  | 75.0 |  |  | 5.8 |
Cost of revenue—product | 98.5 |  |  | 83.4 |  |  | 67.6 |
Cost of revenue—service | 30.5 |  |  | 28.2 |  |  | 23.6 |
Total cost of revenue | 129.0 |  |  | 111.6 |  |  | 91.2 |
Selling, general and administrative | 304.5 |  |  | 274.8 |  |  | 261.1 |
Research and development | 254.6 |  |  | 211.8 |  |  | 164.2 |
Share-based compensation expense before income taxes | 688.1 |  |  | 598.2 |  |  | 516.5 |
Income tax benefit | 138.3 |  |  | 117.4 |  |  | 101.7 |
Share-based compensation expense after income taxes | $ | 549.8 |  |  | $ | 480.8 |  |  | $ | 414.8 |
(1)Share-based compensation expense subject to capitalization into inventory was not material during the first three quarters of 2022, and, therefore, not recorded. The Company commenced capitalization of share-based compensation expense into inventory during the quarter ended December 31, 2022, on a prospective basis.
Summary of Weighted-Average Assumptions | 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 years ended December 31, 2024, 2023, and 2022, were as follows:
| Years Ended December 31,
| 2024 |  | 2023 |  | 2022
RSUs |  |  |  |  |
Fair value at grant date | $392.89 |  | $237.37 |  | $272.97
STOCK OPTIONS |  |  |  |  |
Risk-free interest rate | — |  | 4.6% |  | 2.6%
Expected term (in years) | — |  | 3.2 |  | 3.2
Expected volatility | — |  | 33% |  | 38%
Fair value at grant date | — |  | $77.45 |  | $73.65
PSUs |  |  |  |  |
Fair value at grant date | $395.92 |  | $240.45 |  | $299.32
ESPP |  |  |  |  |
Risk-free interest rate | 4.6% |  | 5.0% |  | 2.1%
Expected term (in years) | 1.2 |  | 1.2 |  | 1.2
Expected volatility | 29% |  | 33% |  | 39%
Fair value at grant date | $130.00 |  | $89.42 |  | $80.61

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