Stock-based compensation expense related to awards issued under the Company's incentive compensation plans for the three and six months ended June 30, 2026 and 2025 was as follows (in millions):


	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Cost of sales	$	8.4	$	7.5	$	16.6	$	14.8
Selling, general, and administrative expenses	23.0		19.6		48.9		42.4
Research and development expenses	10.8		10.4		22.1		20.4

Total stock-based compensation expense	42.2		37.5		87.6		77.6
Income tax benefit	(7.0)		(6.1)		(14.5)		(12.6)
Total stock-based compensation expense, net of tax	$	35.2	$	31.4	$	73.1	$	65.0

At June 30, 2026, the total remaining compensation cost related to nonvested stock options, restricted stock units, market-based restricted stock units, and employee stock purchase plan (“ESPP”) subscription awards amounted to $373.4 million, which will be amortized on a straight-line basis over each award's requisite service period. The weighted-average remaining requisite service period is 33 months.

During the six months ended June 30, 2026, the Company granted 1.6 million stock options at a weighted-average exercise price per share of $82.71 and 1.4 million restricted stock units at a weighted-average grant-date fair value per share of $82.28. During the six months ended June 30, 2026, the Company also granted 0.2 million market-based restricted stock units at a weighted-average grant-date fair value per share of $84.77. The market-based restricted stock units granted during the six months ended June 30, 2026 vest based on a combination of certain service, revenue and market conditions. The actual number of shares issued will be determined based on the Company's revenue and total shareholder return relative to a selected industry peer group over a three-year performance period and may range from 0% to 200% of the target number of shares granted.

The fair value of market-based restricted stock units was determined using a Monte Carlo simulation model, which uses multiple input variables to determine the probability of satisfying the market condition requirements. The weighted-average assumptions used to determine the fair value of the market-based restricted stock units granted during the six months ended June 30, 2026 and 2025 included a risk-free interest rate of 3.9% and 3.8%, respectively, and an expected volatility rate of 34.1% and 37.9%, respectively.

The following table includes the weighted-average grant-date fair values of stock options granted during the periods indicated and the related weighted-average assumptions used in the Black-Scholes option pricing model:


Option Awards	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Risk-free interest rate	4.1%		4.0%		4.1%		4.0%
Expected dividend yield	None		None		None		None
Expected volatility	33.5%		34.1%		33.5%		34.1%
Expected term (years)	5.3		5.2		5.3		5.2
Fair value, per option	$	31.53	$	28.17	$	31.51	$	28.17

The following table includes the weighted-average grant-date fair values for ESPP subscriptions granted during the periods indicated and the related weighted-average assumptions used in the Black-Scholes option pricing model:


ESPP	Three Months Ended June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Risk-free interest rate	3.7%		4.2%		3.6%		4.3%
Expected dividend yield	None		None		None		None
Expected volatility	28.7%		34.3%		32.6%		30.8%
Expected term (years)	0.7		0.7		0.6		0.6
Fair value, per share	$	19.82	$	21.05	$	21.74	$	18.81