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STOCK-BASED COMPENSATION
 6 Months Ended
Jun. 30, 2025
Share-Based Payment Arrangement [Abstract]  
STOCK-BASED COMPENSATION
9. STOCK-BASED COMPENSATION

Stock-based compensation expense related to awards issued under the Company's incentive compensation plans for the three and six months ended June 30, 2025 and 2024 was as follows (in millions):
 Three Months Ended
June 30,		Six Months Ended
June 30,
 2025202420252024
Cost of sales$7.5 $7.5 $14.8 $14.7 
Selling, general, and administrative expenses19.6 20.2 42.4 42.0 
Research and development expenses10.4 9.6 20.4 19.6 
Total stock-based compensation expense37.5 37.3 77.6 76.3 
Income tax benefit(6.1)(6.0)(12.6)(11.5)
Total stock-based compensation expense, net of tax$31.4 $31.3 $65.0 $64.8 

At June 30, 2025, 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 $346.1 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 33 months.

During the six months ended June 30, 2025, the Company granted 1.7 million stock options at a weighted-average exercise price per share of $74.64 and 1.4 million restricted stock units at a weighted-average grant-date fair value per share of $74.67. During the six months ended June 30, 2025, the Company also granted 0.1 million market-based restricted stock units at a weighted-average grant-date fair value per share of $89.94. The market-based restricted stock units granted during the six months ended June 30, 2025 vest based on a combination of certain service and market conditions. The actual number of shares issued will be determined based on the Company's total shareholder return relative to a selected industry peer group over a three-year performance period and may range from 0% to 175% of the target number of shares granted.

Fair Value Disclosures

The fair value of market-based restricted stock units was determined using a Monte Carlo simulation model, which uses multiple input variables to determine the probability of satisfying the market condition requirements. The weighted-average assumptions used to determine the fair value of the market-based restricted stock units granted during the six months ended June 30, 2025 and 2024 included a risk-free interest rate of 3.8% and 4.5%, respectively, and an expected volatility rate of 37.9% and 32.4%, respectively.

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
June 30,		Six Months Ended
June 30,
 2025202420252024
Risk-free interest rate4.0%4.5%4.0%4.5%
Expected dividend yieldNoneNoneNoneNone
Expected volatility34.1%30.9%34.1%30.9%
Expected term (years)5.25.25.25.2
Fair value, per option$28.17$31.24$28.17$31.26
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
June 30,		Six Months Ended
June 30,
 2025202420252024
Risk-free interest rate4.2%5.2%4.3%5.2%
Expected dividend yieldNoneNoneNoneNone
Expected volatility34.3%29.3%30.8%33.5%
Expected term (years)0.70.70.60.6
Fair value, per share$21.05 $23.37 $18.81$25.01