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SHARE-BASED COMPENSATION (Tables) | 3 Months Ended
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Mar. 31, 2025
Share-Based Payment Arrangement [Abstract] |
Summary of RSU Activity | RSU activity under all stock plans for the three months ended March 31, 2025, was as follows (in millions, except per share amounts):
| Shares |  | Weighted-Average Grant-Date Fair Value
Unvested balance as of December 31, 2024 | 5.2 |  |  | $ | 314.39 |
RSUs granted | 1.5 |  |  | $ | 580.31 |
RSUs vested | (1.6) |  |  | $ | 295.53 |
RSUs forfeited | (0.1) |  |  | $ | 334.82 |
Unvested balance as of March 31, 2025 | 5.0 |  |  | $ | 401.13 |
Summary of Stock Option Activity Under All Stock Plans | Stock option activity under all stock plans for the three months ended March 31, 2025, 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, 2024 |  | 7.1 |  |  | $ | 192.90 |
Options granted |  | — |  |  | $ | — |
Options exercised |  | (0.5) |  |  | $ | 127.00 |
Options forfeited or expired |  | — |  |  | $ | 239.02 |
Balance as of March 31, 2025 |  | 6.6 |  |  | $ | 197.44 |
Share-Based Payment Arrangement, Performance Shares, Activity | PSU activity for the three months ended March 31, 2025, was as follows (in millions, except per share amounts):
|  | Shares |  | Weighted-Average Grant Date Fair Value Per Share
Unvested balance as of December 31, 2024 |  | 0.3 |  |  | $ | 306.94 |
Granted |  | 0.1 |  |  | $ | 580.93 |
Vested |  | (0.1) |  |  | $ | 299.32 |
Performance change |  | — |  |  | $ | 267.23 |
Forfeited |  | — |  |  | $ | — |
Unvested balance as of March 31, 2025 |  | 0.3 |  |  | $ | 367.92 |
Summary of Share-Based Compensation Expense | The following table summarizes share-based compensation expense (in millions):
|  |  | Three Months Ended March 31,
|  |  |  |  | 2025 |  | 2024
Cost of revenue – product (before capitalization) |  |  |  |  | $ | 30.9 |  |  | $ | 22.8 |
Amounts capitalized into inventory |  |  |  |  | (28.5) |  |  | (21.4) |
Amounts recognized in income for amounts previously capitalized in inventory |  |  |  |  | 27.8 |  |  | 21.3 |
Cost of revenue – product |  |  |  |  | $ | 30.2 |  |  | $ | 22.7 |
Cost of revenue – service |  |  |  |  | 8.2 |  |  | 7.0 |
Total cost of revenue |  |  |  |  | 38.4 |  |  | 29.7 |
Selling, general and administrative |  |  |  |  | 82.3 |  |  | 68.2 |
Research and development |  |  |  |  | 69.0 |  |  | 57.7 |
Share-based compensation expense before income taxes |  |  |  |  | 189.7 |  |  | 155.6 |
Income tax benefit |  |  |  |  | 37.0 |  |  | 32.4 |
Share-based compensation expense after income taxes |  |  |  |  | $ | 152.7 |  |  | $ | 123.2 |
Schedule of Estimated Fair Value of the Option Using Black-Scholes Option Pricing Model, Weighted Average Assumptions | :
|  |  | Three Months Ended March 31,
|  |  |  |  | 2025 |  | 2024
ESPP |  |  |  |  |  |  |
Risk-free interest rate |  |  |  |  | 4.2% |  | 4.6%
Expected term (in years) |  |  |  |  | 1.2 |  | 1.2
Expected volatility |  |  |  |  | 30% |  | 32%
Fair value at grant date |  |  |  |  | $170.50 |  | $115.48

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