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


	Three Months Ended September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Cost of sales	$	8.1	$	7.4	$	24.7	$	22.2
Selling, general, and administrative expenses	26.9		23.4		75.8		65.8
Research and development expenses	11.0		10.3		33.1		30.7

Total stock-based compensation expense	46.0		41.1		133.6		118.7
Income tax benefit	(8.6)		(7.8)		(23.1)		(20.4)
Total stock-based compensation expense, net of tax	$	37.4	$	33.3	$	110.5	$	98.3

At September 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 $351.7 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 32 months.

During the nine months ended September 30, 2026, the Company granted 1.8 million stock options at a weighted-average exercise price per share of $83.22 and 1.7 million restricted stock units at a weighted-average grant-date fair value per share of $83.44. During the nine months ended September 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 $84.65. The market-based restricted stock units granted during the nine months ended September 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 nine months ended September 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 September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Risk-free interest rate	4.4%		3.8%		4.1%		4.0%
Expected dividend yield	None		None		None		None
Expected volatility	33.4%		33.9%		33.5%		34.1%
Expected term (years)	5.8		5.6		5.3		5.2
Fair value, per option	$	36.30	$	30.24	$	31.82	$	28.26

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 September 30,				Nine Months Ended September 30,
	2026		2025		2026		2025
Risk-free interest rate	4.0%		4.2%		3.6%		4.3%
Expected dividend yield	None		None		None		None
Expected volatility	28.8%		34.5%		32.6%		30.8%
Expected term (years)	0.6		0.6		0.6		0.6
Fair value, per share	$	22.21	$	20.73	$	21.74	$	18.81