Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Share-Based Compensation Expense

Share-based compensation expense was as follows (in millions):

	For the Years Ended December 31,
	2022		2021		2020
Total expense, pre-tax	$	105.0	$	76.0	$	73.8
Tax benefit related to awards		16.9		17.2		15.6
Total expense, net of tax	$	88.1	$	58.8	$	58.2

Summary of Stock Option Activity

A summary of stock option activity for the year ended December 31, 2022 is as follows (options in thousands):

	Stock Options			Weighted Average Exercise Price		Weighted Average Remaining Contractual Life		Intrinsic Value (in millions)
Outstanding at January 1, 2022 (1)		7,547		$	125.32
Options granted (1)		1,479			117.04
Options exercised (1)		(527	)		82.35
Options forfeited (1)		(208	)		132.38
Options expired (1)		(186	)		138.54
Awards transferred to ZimVie in the spinoff		(431	)		134.66
Adjustment to Zimmer Biomet awards related to the spinoff of ZimVie (2)		270
Outstanding at December 31, 2022		7,944		$	121.94		5.9	$	99.7
Vested or expected to vest as of December 31, 2022		7,779		$	121.70		5.8	$	98.7
Exercisable at December 31, 2022		5,196		$	116.05		4.6	$	83.2

Weighted Average Fair Value for Stock Options Granted

The following table presents information regarding the weighted average fair value of stock options granted, the assumptions used to determine fair value, the intrinsic value of options exercised and the tax benefit of options exercised in the indicated year:

	For the Years Ended December 31,
	2022			2021			2020
Dividend yield		0.8	%		0.6	%		0.6	%
Volatility		30.2	%		30.3	%		22.3	%
Risk-free interest rate		1.9	%		0.7	%		1.3	%
Expected life (years)		5.0			5.4			5.0
Weighted average fair value of options granted	$	32.07		$	43.91		$	31.65
Intrinsic value of options exercised (in millions)	$	20.5		$	54.6		$	50.1
Tax benefit of options exercised (in millions)	$	4.0		$	10.8		$	9.6

Summary of Nonvested RSU Activity

A summary of nonvested RSU activity for the year ended December 31, 2022 is as follows (RSUs in thousands):

				Weighted Average
				Grant Date
	RSUs			Fair Value
Outstanding at January 1, 2022 (1)		1,039		$	146.58
Granted (1)		699			114.61
Vested (1)		(168	)		117.47
Forfeited (1)		(336	)		157.22
Awards transferred to ZimVie in the spinoff		(71	)		132.61
Adjustment to Zimmer Biomet awards related to the spinoff of ZimVie (2)		35
Outstanding at December 31, 2022		1,198		$	147.85