Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2014

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Components of share-based compensation expense

The following table summarizes the components of share-based compensation expense in the Consolidated Statements of Income for the years ended December 31, 2014, 2013 and 2012:

	2014		2013		2012
Cost of goods sold	$	26.2	$	18.5	$	12.4
Research and development	196.5		144.7		102.4
Selling, general and administrative	224.9		162.6		116.2
Total share-based compensation expense	447.6		325.8		231.0
Tax benefit related to share-based compensation expense	129.3		94.5		61.3
Reduction in income	$	318.3	$	231.3	$	169.7

Schedule of assumptions used in the estimation of fair value of options granted

We estimated the fair value of options granted using a Black-Scholes option pricing model with the following assumptions:

	2014	2013	2012
Risk-free interest rate	1.51% - 1.90%	0.68% - 1.70%	0.21% - 1.23%
Expected volatility	28% - 37%	27% - 35%	27% - 30%
Weighted average expected volatility	33%	31%	28%
Expected term (years)	5.02 - 5.06	5.03 - 5.50	1.30 - 5.17
Expected dividend yield	0%	0%	0%

Schedule of stock option activity

The following table summarizes all stock option activity for the year ended December 31, 2014:

	Options		Weighted Average Exercise Price Per Option		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (In Millions)
Outstanding at December 31, 2013	79.2		$	38.47	7.1	$	3,643.4
Changes during the Year:
Granted	14.5		88.38
Exercised	(14.8	)	28.41
Forfeited	(1.6	)	53.14
Expired	(0.1	)	32.45
Outstanding at December 31, 2014	77.2		$	49.47	6.9	$	4,823.8
Vested at December 31, 2014 or expected to vest in the future	76.4		$	49.18	6.9	$	4,794.1
Vested at December 31, 2014	36.4		$	33.34	5.4	$	2,861.3

Schedule of restricted stock units

Information regarding the Company's RSUs for the years ended December 31, 2014 and 2013 is as follows:

Nonvested RSUs	Share Equivalent		Weighted Average Grant Date Fair Value
Nonvested at December 31, 2013	10.1		$	44.08
Changes during the period:
Granted	2.3		90.28
Vested	(2.7	)	30.75
Forfeited	(0.3	)	50.28
Nonvested at December 31, 2014	9.4		$	59.02

Schedule of performance-based restricted stock units

The following table summarizes the Company's performance-based restricted stock unit activity for the year ended December 31, 2014 (shares in thousands):

Nonvested Performance-Based RSUs	Share Equivalent		Weighted Average Grant Date Fair Value
Nonvested at December 31, 2013	116		$	53.44
Changes during the period:
Granted	48		87.54
Vested	(24	)	30.39
Forfeited	(7	)	59.68
Non-vested at December 31, 2014	133		$	69.57