v3.22.4
STOCKHOLDERS’ EQUITY (Tables)
 12 Months Ended
Dec. 31, 2022
Equity [Abstract]  
Stock Options Fair Value Assumptions The weighted-average assumptions used in estimating the fair value of stock options granted during each year, along with the weighted-average grant-date fair values, were as follows:
years ended December 31202220212020
Expected volatility24 %24 %26 %
Expected life (in years)5.55.55.5
Risk-free interest rate1.8 %0.8 %0.6 %
Dividend yield1.3 %1.3 %1.2 %
Fair value per stock option$18 $16 $16 
Summary of Stock Option Activity
The following table summarizes stock option activity for the year ended December 31, 2022 and the outstanding stock options as of December 31, 2022.
(options and aggregate intrinsic values in thousands)OptionsWeighted-
average
exercise
price		Weighted-
average
remaining
contractual
term
(in years)		Aggregate
intrinsic
value
Outstanding as of January 1, 202220,696 $61.14 
Granted1,936 $84.19 
Exercised(1,645)$48.16 
Forfeited(728)$79.37 
Expired(618)$71.64 
Outstanding as of December 31, 202219,641 $63.51 5.3$63,843 
Vested or expected to vest as of December 31, 202219,445 $63.34 5.3$63,843 
Exercisable as of December 31, 202214,776 $58.25 4.4$63,843 
Summary of Nonvested RSU Activity The following table summarizes nonvested RSU activity for the year ended December 31, 2022.
(share units in thousands)Share unitsWeighted-
average
grant-date
fair value
Nonvested RSUs as of January 1, 20221,798 $78.01 
Granted1,433 $81.53 
Vested(971)$76.09 
Forfeited(348)$81.11 
Nonvested RSUs as of December 31, 20221,912 $79.51 
Performance Stock Units Fair Value The assumptions used in estimating the fair value of these PSUs granted during the period, along with the grant-date fair values, were as follows:
years ended December 31202220212020
Baxter volatility27 %28 %26 %
Peer group volatility
24%-54%
26%-81%
23%-95%
Correlation of returns
0.21-0.61
0.05-0.65
0.19-0.70
Risk-free interest rate1.6 %0.3 %0.4 %
Fair value per PSU$102 $86 $108 
Summary of Nonvested Performance Stock Unit Activity The following table summarizes nonvested PSU activity for the year ended December 31, 2022.
(share units in thousands)Share unitsWeighted-
average
grant-date
fair value
Nonvested PSUs as of January 1, 2022732 $85.87 
Granted239 $87.55 
Vested(179)$91.12 
Forfeited(94)$85.89 
Nonvested PSUs as of December 31, 2022698 $85.00