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Share-Based Compensation (Tables) | 12 Months Ended
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Dec. 31, 2023
Share-Based Payment Arrangement [Abstract] |
Schedule of Share Based Compensation | The effect of stock-based compensation expense on our consolidated statements of income and comprehensive income by line-item follows:
| Year Ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
Selling, general and administrative expense | $ | 126.3 |  |  | $ | 115.4 |  |  | $ | 85.8 |
Research and development expense | 68.0 |  |  | 57.7 |  |  | 48.4 |
Total stock-based compensation expense | $ | 194.3 |  |  | $ | 173.1 |  |  | $ | 134.2 |
Stock-based compensation expense by award-type follows:
| Year Ended December 31,
(in millions) | 2023 |  | 2022 |  | 2021
Stock options | $ | 91.6 |  |  | $ | 62.6 |  |  | $ | 60.5 |
RSUs | 93.4 |  |  | 86.4 |  |  | 62.5 |
PRSUs | 4.6 |  |  | 20.1 |  |  | 7.6 |
ESPP | 4.7 |  |  | 4.0 |  |  | 3.6 |
Total stock-based compensation expense | $ | 194.3 |  |  | $ | 173.1 |  |  | $ | 134.2 |
As of December 31, 2023, unrecognized stock-based compensation expense by award-type and the weighted-average period over which such expense is expected to be recognized, as applicable, was as follows:
(dollars in millions) | Unrecognized Expense |  | Weighted-Average Recognition Period
Stock options | $ | 94.1 |  |  | 2.3 years
RSUs | $ | 162.4 |  |  | 2.3 years
PRSUs | $ | 22.3 |  |  |
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,
| 2023 |  | 2022 |  | 2021
Risk-free interest rate | 3.9 | % |  | 1.8 | % |  | 0.6 | %
Expected volatility of common stock | 40.8 | % |  | 42.6 | % |  | 45.9 | %
Dividend yield | 0.0 | % |  | 0.0 | % |  | 0.0 | %
Expected option term | 5.5 years |  | 5.0 years |  | 5.2 years
Summary and Changes in Stock Options Outstanding | The following table presents summary of activity related to stock options.
(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, 2022 | 9.0 |  |  | $ | 79.10 |  |  |  |  |
Granted | 1.9 |  |  | $ | 103.66 |  |  |  |  |
Exercised | (0.8) |  |  | $ | 66.84 |  |  |  |  |
Canceled | (0.1) |  |  | $ | 98.29 |  |  |  |  |
Outstanding at December 31, 2023 | 10.0 |  |  | $ | 84.46 |  |  | 6.2 years |  | $ | 467.8 |
Exercisable at December 31, 2023 | 6.8 |  |  | $ | 78.75 |  |  | 5.2 years |  | $ | 361.3 |
Summary and Changes in Restricted Stock Units Outstanding | The following table presents a summary of activity related to RSUs.
(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, 2022 | 2.3 |  |  | $ | 92.61 |  |  |  |  |
Granted | 1.1 |  |  | $ | 103.54 |  |  |  |  |
Released | (0.9) |  |  | $ | 93.46 |  |  |  |  |
Canceled | (0.1) |  |  | $ | 95.62 |  |  |  |  |
Unvested at December 31, 2023 | 2.4 |  |  | $ | 97.32 |  |  | 1.3 years |  | $ | 312.5 |
The following table presents a summary of activity related to PRSUs.
(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, 2022 | 0.5 |  |  | $ | 101.00 |  |  |  |  |
Granted | 0.3 |  |  | $ | 97.22 |  |  |  |  |
Released | (0.3) |  |  | $ | 98.43 |  |  |  |  |
Canceled | (0.2) |  |  | $ | 115.60 |  |  |  |  |
Unvested at December 31, 2023 | 0.3 |  |  | $ | 89.23 |  |  | 1.7 years |  | $ | 33.0 |

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