v3.7.0.1
Stock-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Stock-Based Compensation Costs
The following summarizes the components of our stock-based compensation expense under the Stock Plan and the Danaher Plans ($ in millions):
 
Three Months Ended
 
Six Months Ended
 
June 30, 2017
 
July 1, 2016
 
June 30, 2017
 
July 1, 2016
Stock Awards:
 
 
 
 
 
 
 
Pretax compensation expense
$
8.0

 
$
7.1

 
$
15.4

 
$
14.2

Income tax benefit
(3.1
)
 
(2.5
)
 
(5.6
)
 
(4.8
)
Stock Award expense, net of income taxes
4.9

 
4.6

 
9.8

 
9.4

Stock options:
 
 
 
 
 
 
 
Pretax compensation expense
5.3

 
3.8

 
9.9

 
8.2

Income tax benefit
(1.8
)
 
(1.3
)
 
(3.4
)
 
(2.8
)
Stock option expense, net of income taxes
3.5

 
2.5

 
6.5

 
5.4

Total stock-based compensation:
 
 
 
 
 
 
 
Pretax compensation expense
13.3

 
10.9

 
25.3

 
22.4

Income tax benefit
(4.9
)
 
(3.8
)
 
(9.0
)
 
(7.6
)
Total stock-based compensation expense, net of income taxes
$
8.4

 
$
7.1

 
$
16.3

 
$
14.8
Schedule of Future Compensation
The following summarizes the unrecognized compensation cost for the Stock Plan awards as of June 30, 2017. This compensation cost is expected to be recognized over a weighted average period of approximately two years, representing the remaining service period related to the awards. Future compensation amounts will be adjusted for any changes in estimated forfeitures ($ in millions):
Stock Awards
$
53.2

Stock options
50.0

Total unrecognized compensation cost
$
103.2
Schedule of Assumptions Used
The following summarizes the assumptions used in the Black-Scholes Merton option pricing model to value stock options granted under the Stock Plan during the six months ended June 30, 2017:
Risk-free interest rate
1.93% - 2.26%

Weighted average volatility (a)
21.0
%
Dividend yield
0.5
%
Expected years until exercise
5.5 - 8.0

 
 
(a) Weighted average volatility was estimated based on an average historical stock price volatility of a group of peer companies, given our limited trading history.
Schedule of Stock Option Activity
The following summarizes option activity under the Stock Plan for the six months ended June 30, 2017 (in millions, except price per share and numbers of years):
 
Options
 
Weighted
Average
Exercise
Price
 
Weighted Average
Remaining
Contractual Term
(in years)
 
Aggregate
Intrinsic
Value
Outstanding as of December 31, 2016
10.7

 
$
33.23

 
 
 
 
Granted
1.8

 
57.41

 
 
 
 
Exercised
(0.7
)
 
23.50

 
 
 
 
Canceled/forfeited
(0.2
)
 
42.51

 
 
 
 
Outstanding as of June 30, 2017
11.6

 
$
37.40

 
6.7
 
$
302.4

Vested and expected to vest as of June 30, 2017 (a)
11.2

 
$
36.16

 
6.5
 
$
295.8

Vested as of June 30, 2017
5.1

 
$
27.25

 
4.7
 
$
183.8

 
 
 
 
 
 
 
 
(a) The “expected to vest” options are the net unvested options that remain after applying the forfeiture rate assumption to total unvested options.
Schedule of Stock Unit Activity
The following summarizes information related to unvested Stock Award activity under the Stock Plan for the six months ended June 30, 2017 (in millions; except price per share):
 
Number of
Stock Awards
 
Weighted Average
Grant-Date
Fair Value
Unvested as of December 31, 2016
2.2

 
$
39.20

Granted
0.6

 
56.90

Vested
(0.4
)
 
36.27

Forfeited
(0.1
)
 
41.35

Unvested as of June 30, 2017
2.3

 
$
44.11