EMPLOYEE BENEFITS (Tables)

12 Months Ended

Dec. 31, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Stock-based Compensation Expenses -Included in Consolidated Statement of Income

The following tables summarize total stock-based compensation expense included on our Consolidated Statements of Income, classified by award type and expense type:

	Year Ended December 31,
(in millions)	2023		2022		2021
RSUs	$	666	$	557	$	558
PSUs	32		25		17
Stock options	30		28		29
ESPP	37		26		31
Acquisition-related expense(1)	29		8		—
Stock-based compensation expense included in total costs and expenses	$	796	$	645	$	635

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(1)    Accelerated post-acquisition stock-based compensation expenses of $19 million and $10 million related to the 2023 XinThera and Tmunity acquisitions, respectively, and $8 million related to the 2022 MiroBio acquisition.

	Year Ended December 31,
(in millions)	2023		2022		2021
Cost of goods sold	$	57	$	46	$	40
Research and development expenses	377		285		287
Selling, general and administrative expenses	361		313		308
Stock-based compensation expense included in total costs and expenses	796		645		635
Income tax effect	(165)		(91)		(100)
Stock-based compensation expense, net of tax	$	630	$	553	$	535

Summary of RSU Activity

The following tables summarize our RSU activity:

	RSUs
(in millions, except per share amounts)	Shares	Weighted- Average Grant Date Fair Value Per Share
Outstanding as of December 31, 2022	23.6	$	63.62
Granted	11.5	$	79.66
Vested	(10.7)	$	63.78
Forfeited	(1.6)	$	69.31
Outstanding as of December 31, 2023	22.7	$	71.24

	Year Ended December 31,
(in millions, except per share amounts)	2023		2022		2021
Weighted-average grant date fair value of RSUs granted	$	79.66	$	60.36	$	65.42
Total fair value of RSUs as of the respective vesting dates	$	849	$	554	$	463

Summary of PSU Activity

The following tables summarize our PSU activity:

	PSUs
(in millions, except per share amounts)	Shares	Weighted- Average Grant Date Fair Value Per Share
Outstanding as of December 31, 2022	1.0	$	64.28
Granted	0.5	$	81.39
Vested	(0.4)	$	79.62
Forfeited	(0.1)	$	59.95
Outstanding as of December 31, 2023	1.0	$	67.48

	Year Ended December 31,
(in millions, except per share amounts)	2023		2022		2021
Weighted-average grant date fair value of PSUs granted	$	81.39	$	60.04	$	71.31
Total fair value of PSUs as of the respective vesting dates	$	35	$	14	$	8

Summary of Activity Under Stock Option Plans

The following tables summarize activity and other information related to our stock options:

	Shares (in millions)	Weighted- Average Exercise Price (in dollars)		Weighted-Average Remaining Contractual Term (years)	Aggregate  Intrinsic Value (in millions)(1)
Outstanding as of December 31, 2022	14.4	$	67.69
Granted	2.1	$	79.53
Exercised	(1.5)	$	64.72
Forfeited	(0.5)	$	66.91
Expired	(0.2)	$	92.76
Outstanding as of December 31, 2023	14.3	$	69.38	6.10	$	177
Exercisable as of December 31, 2023	9.2	$	70.00	4.97	$	112
Expected to vest, net of estimated forfeitures as of December 31, 2023	4.8	$	68.19	8.16	$	61

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(1)     Aggregate intrinsic value represents the value of our closing stock price on the last trading day of the year in excess of the weighted-average exercise price multiplied by the number of options outstanding or exercisable.

	Year Ended December 31,
(in millions, except per share amounts)	2023		2022		2021
Weighted-average grant date fair value of stock options granted	$	16.11	$	9.08	$	10.05
Total intrinsic value of options exercised	$	25	$	59	$	48

Summary of Assumptions to Calculate the Estimated Fair Value of Awards

We used the following weighted-average assumptions in the Black-Scholes model to calculate the estimated fair value of the stock option awards:

	Year Ended December 31,
	2023		2022		2021
Expected volatility	26	%	27	%	29	%
Expected terms in years	5		5		5
Risk-free interest rate	4.1	%	1.9	%	0.8	%
Expected dividend yield	3.5	%	4.3	%	4.4	%

We used the following weighted-average assumptions in the Black-Scholes model to calculate the estimated fair value of the ESPP awards:

	Year Ended December 31,
	2023		2022		2021
Expected volatility	24	%	23	%	25	%
Expected terms in years	0.5		0.5		0.5
Risk-free interest rate	5.1	%	1.8	%	0.1	%
Expected dividend yield	3.7	%	4.5	%	4.4	%

Summary of ESPP Activity

The following table summarizes our ESPP activity:

	Year Ended December 31,
(in millions, except per share amounts)	2023		2022		2021
Shares issued	2		2		2
Amount paid by employees for shares	$	129	$	103	$	111
Weighted-average grant date fair value of ESPP shares granted	$	17.31	$	13.40	$	14.58
Total fair value of ESPP shares as of the respective vesting dates	$	45	$	21	$	23