Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Activity for RSUs

The following tables present the activity for the RSUs under the Plans:

	Year ended December 31, 2022
	RSUs			Weighted Average Grant Date Fair Value
RSUs — beginning of period		0.5		$	127.93
RSUs issued in Atotech Acquisition		0.1		$	110.30
Granted		0.5		$	111.60
Vested		(0.3	)	$	118.06
RSUs — end of period		0.8		$	118.96

	Year ended December 31, 2021
	RSUs			Weighted Average Grant Date Fair Value
RSUs — beginning of period		0.6		$	93.26
Granted		0.2		$	177.71
Vested		(0.3	)	$	95.95
RSUs — end of period		0.5		$	127.93

Effect of Recording Stock-Based Compensation

The following table reflects the effect of recording stock-based compensation:

	Years Ended December 31,
	2022			2021			2020
Stock-based compensation expense by type of award:
RSUs	$	42		$	34		$	27
Employee stock purchase plan		3			3			3
Total stock-based compensation		45			37			30
Windfall tax effect on stock-based compensation		(1	)		(5	)		(2	)
Net effect on net income	$	44		$	32		$	28
Effect on net earnings per share:
Basic	$	0.74		$	0.58		$	0.49
Diluted	$	0.73		$	0.58		$	0.49

Pre-Tax Effect Within Consolidated Statements of Operations of Recording Stock-Based Compensation

The pre-tax effect within the consolidated statements of operations and comprehensive income of recording stock-based compensation was as follows:

	Years Ended December 31,
	2022		2021		2020
Cost of revenues	$	5	$	4	$	4
Research and development expense		6		5		4
Selling, general and administrative expense		34		28		21
Acquisition and integration related expense		—		—		1
Total pre-tax stock-based compensation expense	$	45	$	37	$	30

Fair Value of Employee Purchase Rights Estimated using Black-Scholes Option-Pricing Model

The fair value of employee stock purchase plan rights was estimated using the Black-Scholes option-pricing model with the following weighted average assumptions:

	Years Ended December 31,
Employee stock purchase plan rights:	2022			2021			2020
Expected life (years)		0.5			0.5			0.5
Risk-free interest rate		0.9	%		0.1	%		0.9	%
Expected volatility		41.9	%		39.3	%		45.4	%
Expected annual dividends per share	$	0.88		$	0.88		$	0.80