XML 121 R48.htm IDEA: XBRL DOCUMENT
v3.19.3.a.u2

Stock Transactions And Stock-Based Compensation (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2019
Share-based Payment Arrangement, Noncash Expense [Abstract] |
Summary of Share Activity | The following table summarizes the Company’s share activity for the years ended December 31 (shares in millions):
| 2019 |  | 2018 |  | 2017
Preferred stock - shares issued: |  |  |  |  |
Balance, beginning of period | — |  |  | — |  |  | — |
Issuance of MCPS | 1.7 |  |  | — |  |  | — |
Balance, end of period | 1.7 |  |  | — |  |  | — |
Common stock - shares issued: |  |  |  |  |
Balance, beginning of period | 817.9 |  |  | 812.5 |  |  | 807.7 |
Common stock-based award activity | 4.6 |  |  | 4.6 |  |  | 4.8 |
Common stock issued in connection with acquisitions | — |  |  | 0.2 |  |  | — |
Common stock issued in connection with LYONs’ conversions | 0.9 |  |  | 0.6 |  |  | — |
Issuance of common stock | 12.1 |  |  | — |  |  | — |
Balance, end of period | 835.5 |  |  | 817.9 |  |  | 812.5 |
Assumptions Used In The Black-Scholes Model To Value Options Granted | The following summarizes the assumptions used in the Black-Scholes model to value options granted during the years ended December 31:
| 2019 |  | 2018 |  | 2017
Risk-free interest rate | 1.7 – 2.6% |  |  | 2.6 – 3.1% |  |  | 1.8 – 2.2% |
Weighted average volatility | 20.4 | % |  | 21.4 | % |  | 17.9 | %
Dividend yield | 0.5 | % |  | 0.6 | % |  | 0.7 | %
Expected years until exercise | 5.0 – 8.0 |  |  | 5.0 – 8.0 |  |  | 5.0 – 8.0 |
Components Of Share-Based Compensation Program | The following summarizes the components of the Company’s continuing operations stock-based compensation expense for the years ended December 31 ($ in millions):
| 2019 |  | 2018 |  | 2017
RSUs/PSUs: |  |  |  |  |
Pretax compensation expense | $ | 97.3 |  |  | $ | 86.5 |  |  | $ | 82.6 |
Income tax benefit | (20.1 | ) |  | (17.7 | ) |  | (25.2 | )
RSU/PSU expense, net of income taxes | 77.2 |  |  | 68.8 |  |  | 57.4 |
Stock options: |  |  |  |  |
Pretax compensation expense | 61.5 |  |  | 51.6 |  |  | 44.5 |
Income tax benefit | (12.8 | ) |  | (10.7 | ) |  | (14.0 | )
Stock option expense, net of income taxes | 48.7 |  |  | 40.9 |  |  | 30.5 |
Total stock-based compensation: |  |  |  |  |
Pretax compensation expense | 158.8 |  |  | 138.1 |  |  | 127.1 |
Income tax benefit | (32.9 | ) |  | (28.4 | ) |  | (39.2 | )
Total stock-based compensation expense, net of income taxes | $ | 125.9 |  |  | $ | 109.7 |  |  | $ | 87.9 |
Option Activity Under The Company's Stock Plans | The following summarizes option activity under the Company’s stock plans (in millions, except weighted exercise price and number of years):
| Options |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value
Outstanding as of January 1, 2017 | 18.9 |  |  | $ | 50.07 |  |  |  |  |
Granted | 4.4 |  |  | 86.14 |  |  |  |  |
Exercised | (3.3 | ) |  | 35.26 |  |  |  |  |
Cancelled/forfeited | (1.2 | ) |  | 70.40 |  |  |  |  |
Outstanding as of December 31, 2017 | 18.8 |  |  | 59.84 |  |  |  |  |
Granted | 4.1 |  |  | 99.51 |  |  |  |  |
Exercised | (3.4 | ) |  | 41.88 |  |  |  |  |
Cancelled/forfeited | (0.9 | ) |  | 80.14 |  |  |  |  |
Outstanding as of December 31, 2018 | 18.6 |  |  | 70.86 |  |  |  |  |
Granted | 4.3 |  |  | 117.32 |  |  |  |  |
Exercised | (3.5 | ) |  | 53.02 |  |  |  |  |
Cancelled/forfeited | (0.9 | ) |  | 98.98 |  |  |  |  |
Adjustment due to Envista Split-Off (a) | (1.5 | ) |  | 91.65 |  |  |  |  |
Outstanding as of December 31, 2019 | 17.0 |  |  | 82.95 |  |  | 7 |  | $ | 1,202.3 |
Vested and expected to vest as of December 31, 2019 (b) | 16.5 |  |  | $ | 82.18 |  |  | 7 |  | $ | 1,176.3 |
Vested as of December 31, 2019 | 7.0 |  |  | $ | 62.53 |  |  | 5 |  | $ | 632.3 |
(a) | The “Adjustment due to Envista Split-Off” reflects the cancellation of options which were outstanding as of December 18, 2019 and held by Envista employees, which have been terminated and replaced by Envista equity awards as part of the Envista Split-Off.
(b) The “expected to vest” options are the net unvested options that remain after applying the forfeiture rate assumption to total unvested options.
Summary Of Options Outstanding | Options outstanding as of December 31, 2019 are summarized below (in millions, except price per share and number of years):
| Outstanding |  | Exercisable
Exercise Price | Shares |  | Average Exercise Price |  | Average Remaining Life (in years) |  | Shares |  | Average Exercise Price
$19.89 to $41.64 | 1.2 |  |  | $ | 36.79 |  |  | 2 |  | 1.2 |  |  | $ | 36.79 |
$41.65 to $62.18 | 2.2 |  |  | 54.47 |  |  | 4 |  | 2.2 |  |  | 54.51 |
$62.19 to $83.27 | 4.0 |  |  | 67.03 |  |  | 6 |  | 2.2 |  |  | 67.12 |
$83.28 to $101.64 | 5.8 |  |  | 92.70 |  |  | 8 |  | 1.3 |  |  | 90.74 |
$101.65 to $142.99 | 3.8 |  |  | 116.76 |  |  | 9 |  | 0.1 |  |  | 113.57 |
RSU And Restricted Stock Activity | The following summarizes information on unvested RSU and PSU activity (in millions, except weighted average grant-date fair value):
| Number of RSUs/PSUs |  | Weighted Average Grant-Date Fair Value
Unvested as of January 1, 2017 | 4.5 |  |  | $ | 62.16 |
Granted | 1.4 |  |  | 86.04 |
Vested | (1.5 | ) |  | 58.48 |
Forfeited | (0.5 | ) |  | 68.83 |
Unvested as of December 31, 2017 | 3.9 |  |  | 71.27 |
Granted | 1.5 |  |  | 99.15 |
Vested | (1.2 | ) |  | 68.37 |
Forfeited | (0.3 | ) |  | 78.41 |
Unvested as of December 31, 2018 | 3.9 |  |  | 82.21 |
Granted | 1.4 |  |  | 115.38 |
Vested | (1.1 | ) |  | 75.51 |
Forfeited | (0.3 | ) |  | 92.82 |
Adjustment due to Envista Split-Off (a) | (0.4 | ) |  | 98.18 |
Unvested as of December 31, 2019 | 3.5 |  |  | 94.85 |
(a) The “Adjustment due to Envista Split-Off” reflects the cancellation of RSUs and PSUs which were outstanding as of December 18, 2019 and held by Envista employees which have been terminated and replaced by Envista equity awards as part of the Envista Split-Off.

X
- Definition Tabular disclosure of share-based payment arrangement. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5047-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 + Details
Name: | us-gaap_DisclosureOfShareBasedCompensationArrangementsByShareBasedPaymentAwardTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the changes in outstanding nonvested restricted stock units. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(2) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfNonvestedRestrictedStockUnitsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of option exercise prices, by grouped ranges, including the upper and lower limits of the price range, the number of shares under option, weighted average exercise price and remaining contractual option terms. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationSharesAuthorizedUnderStockOptionPlansByExercisePriceRangeTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition 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. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (d) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (e) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c)(1) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedCompensationStockOptionsActivityTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the significant assumptions used during the year to estimate the fair value of stock options, including, but not limited to: (a) expected term of share options and similar instruments, (b) expected volatility of the entity's shares, (c) expected dividends, (d) risk-free rate(s), and (e) discount for post-vesting restrictions. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (f)(2) -URI http://asc.fasb.org/extlink&oid=116856206&loc=d3e5070-113901 + Details
Name: | us-gaap_ScheduleOfShareBasedPaymentAwardStockOptionsValuationAssumptionsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of an entity's stock, including par or stated value per share, number and dollar amount of share subscriptions, shares authorized, shares issued, shares outstanding, number and dollar amount of shares held in an employee trust, dividend per share, total dividends, share conversion features, par value plus additional paid in capital, the value of treasury stock and other information necessary to a fair presentation, and EPS information. Stock by class includes common, convertible, and preferred stocks which are not redeemable or redeemable solely at the option of the issuer. Includes preferred stock with redemption features that are solely within the control of the issuer and mandatorily redeemable stock if redemption is required to occur only upon liquidation or termination of the reporting entity. If more than one issue is outstanding, state the title of each issue and the corresponding dollar amount; dollar amount of any shares subscribed but unissued and the deduction of subscriptions receivable there from; number of shares authorized, issued, and outstanding. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 45 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=65888546&loc=d3e21300-112643 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(28)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 10 -URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21553-112644 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 480 -SubTopic 10 -Section S99 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=65877616&loc=d3e177068-122764 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 8 -URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21538-112644 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 7 -URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21521-112644 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(29)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(d)) -URI http://asc.fasb.org/extlink&oid=26873400&loc=d3e23780-122690 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 5 -URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21488-112644 Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=27012166&loc=d3e187085-122770 Reference 11: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 6 -URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21506-112644 Reference 12: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 210 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.5-02(27)) -URI http://asc.fasb.org/extlink&oid=6877327&loc=d3e13212-122682 Reference 13: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 4 -URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21484-112644 Reference 14: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=109259400&loc=d3e21475-112644 + Details
Name: | us-gaap_ScheduleOfStockByClassTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_ShareBasedCompensationAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration