Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2016

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 three-month periods ended March 31, 2016 and 2015:

	Three-Month Periods Ended March 31,
	2016		2015
Cost of goods sold (excluding amortization of acquired intangible assets)	$	9.0	$	6.7
Research and development	62.2		56.2
Selling, general and administrative	75.3		65.9
Total share-based compensation expense	146.5		128.8
Tax benefit related to share-based compensation expense	40.1		36.4
Reduction in income	$	106.4	$	92.4

Summary of activity for stock options, RSUs and PSUs

The following table summarizes the activity for stock options, RSUs and PSUs for the three-month period ended March 31, 2016 (in millions unless otherwise noted):

	Stock Options		Restricted Stock Units		Performance- Based Restricted Stock Units (in thousands)
Outstanding at December 31, 2015	75.7		7.7		334
Changes during the Year:
Granted	2.9		0.1		94
Exercised / Released	(1.6	)	(0.2	)	—
Forfeited	(0.7	)	(0.1	)	(17	)
Outstanding at March 31, 2016	76.3		7.5		411

Schedule of unvested awards compensation cost not yet recognized and weighted-average periods for recognition

Total compensation cost related to unvested awards not yet recognized and the weighted-average periods over which the awards are expected to be recognized at March 31, 2016 were as follows (dollars in millions):

	Stock Options		Restricted Stock Units		Performance- Based Restricted Stock Units
Unrecognized compensation cost	$	611.1	$	265.1	$	22.3
Expected weighted-average period in years of compensation cost to be recognized	2.0		1.2		1.8