STOCK-BASED COMPENSATION

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-based compensation expense related to awards issued under the Company's incentive compensation plans for the three months ended March 31, 2023 and 2022 was as follows (in millions):


	Three Months Ended March 31,
		2023		2022
Cost of sales		$	7.0	$	6.2
Selling, general, and administrative expenses		22.3		18.7
Research and development expenses		9.6		7.5
Total stock-based compensation expense		38.9		32.4
Income tax benefit		(4.7)		(4.4)
Total stock-based compensation expense, net of tax		$	34.2	$	28.0

At March 31, 2023, the total remaining compensation cost related to nonvested stock options, restricted stock units, market-based restricted stock units, and employee stock purchase plan ("ESPP") subscription awards amounted to $187.9 million, which will be amortized on a straight-line basis over each award's requisite service period. The weighted-average remaining requisite service period is 28 months.

Fair Value Disclosures

The following table includes the weighted-average grant-date fair values of stock options granted during the periods indicated and the related weighted-average assumptions used in the Black-Scholes option pricing model:


Option Awards	Three Months Ended March 31,
		2023			2022
Risk-free interest rate		4.1		%	1.9		%
Expected dividend yield		None			None
Expected volatility		31.3		%	33.5		%
Expected term (years)		5.3			5.3
Fair value, per option		$	27.77		$	35.66

The following table includes the weighted-average grant-date fair values for ESPP subscriptions granted during the periods indicated and the related weighted-average assumptions used in the Black-Scholes option pricing model:


ESPP	Three Months Ended March 31,
		2023			2022
Risk-free interest rate		4.6		%	0.2		%
Expected dividend yield		None			None
Expected volatility		31.5		%	32.2		%
Expected term (years)		0.6			0.6
Fair value, per share		$	21.10		$	29.52