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Share-Based Compensation (Tables) | 12 Months Ended
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Dec. 31, 2020
Share-based Payment Arrangement [Abstract] |
Compensation cost related to share based compensation | The effect of share-based compensation expense on our consolidated statements of income and comprehensive income by line-item follows:
| Year Ended December 31,
(in millions) | 2020 |  | 2019 |  | 2018
Selling, general and administrative expense | $ | 66.3 |  |  | $ | 49.5 |  |  | $ | 31.9 |
Research and development expense | 33.7 |  |  | 25.8 |  |  | 26.2 |
Total share-based compensation expense | $ | 100.0 |  |  | $ | 75.3 |  |  | $ | 58.1 |
Share-based compensation expense by award-type follows:
| Year Ended December 31,
(in millions) | 2020 |  | 2019 |  | 2018
Stock options | $ | 47.5 |  |  | $ | 36.5 |  |  | $ | 35.4 |
RSUs | 44.2 |  |  | 30.5 |  |  | 21.9 |
PRSUs | 5.3 |  |  | 5.6 |  |  | — |
ESPP | 3.0 |  |  | 2.7 |  |  | 0.8 |
Total share-based compensation expense | $ | 100.0 |  |  | $ | 75.3 |  |  | $ | 58.1 |
At December 31, 2020, unrecognized share-based compensation expense by award-type and the weighted-average period over which such expense is expected to be recognized, as applicable, were as follows:
(dollars in millions) | Unrecognized Expense |  | Weighted-Average Recognition Period
Stock options | $ | 86.2 |  |  | 2.3 years
RSUs | $ | 99.5 |  |  | 2.3 years
Weighted-average assumptions for stock option grants using black-scholes option-pricing model | The fair value of each stock option granted was estimated on the date of grant using the Black-Scholes option-pricing valuation model with the following weighted-average assumptions:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018
Risk-free interest rate | 1.4 | % |  | 2.4 | % |  | 2.5 | %
Expected volatility of common stock | 48.5 | % |  | 54.8 | % |  | 59.5 | %
Dividend yield | 0.0 | % |  | 0.0 | % |  | 0.0 | %
Expected option term | 5.3 years |  | 5.4 years |  | 4.7 years
Summary and changes in stock options outstanding | A summary of activity related to stock options follows:
(in millions, except weighted average data) | Number of Stock Options |  | Weighted Average Exercise Price |  | Weighted-Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Outstanding at December 31, 2019 | 6.1 |  |  | $ | 52.62 |  |  |  |  |
Granted | 1.3 |  |  | $ | 103.44 |  |  |  |  |
Exercised | (0.6) |  |  | $ | 43.90 |  |  |  |  |
Canceled | — |  |  | $ | — |  |  |  |  |
Outstanding at December 31, 2020 | 6.8 |  |  | $ | 62.98 |  |  | 6.4 years |  | $ | 235.4 |
Exercisable at December 31, 2020 | 4.7 |  |  | $ | 49.80 |  |  | 5.5 years |  | $ | 218.2 |
Summary and changes in restricted stock units outstanding | A summary of activity related to RSUs follows:
(in millions, except weighted average data) | Number of RSUs |  | Weighted-Average Grant Date Fair Value |  | Weighted-Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Unvested at December 31, 2019 | 1.4 |  |  | $ | 74.77 |  |  |  |  |
Granted | 0.7 |  |  | $ | 102.92 |  |  |  |  |
Released | (0.5) |  |  | $ | 67.86 |  |  |  |  |
Canceled | (0.1) |  |  | $ | 84.95 |  |  |  |  |
Unvested at December 31, 2020 | 1.5 |  |  | $ | 89.60 |  |  | 1.3 years |  | $ | 147.5 |
A summary of activity related to PRSUs follows:
(in millions, except weighted average data) | Number of PRSUs |  | Weighted-Average Grant Date Fair Value |  | Weighted-Average Remaining Contractual Term |  | Aggregate Intrinsic Value
Unvested at December 31, 2019 | 0.3 |  |  | $ | 59.62 |  |  |  |  |
Granted | 0.2 |  |  | $ | 102.90 |  |  |  |  |
Released | (0.1) |  |  | $ | 82.04 |  |  |  |  |
Canceled | (0.2) |  |  | $ | 45.67 |  |  |  |  |
Unvested at December 31, 2020 | 0.2 |  |  | $ | 102.90 |  |  | 2.2 years |  | $ | 15.8 |

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- Definition Tabular disclosure of the number and weighted-average grant date fair value for restricted stock units that were outstanding at the beginning and end of the year, and the number of restricted stock units that were granted, vested, or forfeited during the year. + 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)(1) -URI http://asc.fasb.org/extlink&oid=120381028&loc=d3e5070-113901 + Details
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- 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=120381028&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=120381028&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=120381028&loc=d3e5070-113901 + Details
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- 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=120381028&loc=d3e5070-113901 + Details
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