Stockholders’ Equity and Share-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2023

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Stock Options Outstanding and Exercisable

The following table shows stock options that were outstanding and exercisable as of December 31, 2023 and the related weighted average exercise price, weighted average remaining contractual term and aggregate intrinsic value:

	Stock Options (In thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value (1) (In thousands)
Outstanding as of December 31, 2022		84	$	72.18
Granted		48	$	156.72
Exercised		—	$	—
Forfeited or expired		—	$	—
Outstanding as of December 31, 2023		132	$	102.86	4.55 years	$	8,636
Exercisable as of December 31, 2023		57	$	42.49	2.92 years	$	7,209
Expected to vest as of December 31, 2023		75	$	149.25	5.80 years	$	1,428

(1)The aggregate intrinsic value is calculated as the difference between the closing market price of $168.41 per common share as of December 31, 2023 and the exercise price of the stock options.

Schedule of Share Based Payment Award Stock Options Valuation Assumptions

The aggregate Black-Scholes fair value of $3.0 million for the stock options granted during 2023 was estimated using the following assumptions as of the grant date:

	Year Ended December 31, 2023
Expected option term in years		4.5
Expected volatility		40.7	%
Risk-free interest rate		4.00	%
Expected annual dividend yield		—

Amended and Restated 2010 Incentive Plan

Share Based Compensation Arrangement By Share Based Payment Award [Line Items]

Share-Based Compensation Expense Recorded In Operating Income

The table below summarizes share-based compensation expense recorded in operating income (in thousands):

	Year Ended December 31,
	2023		2022		2021
Selling, general and administrative	$	21,963	$	18,182	$	17,255
Research and development and engineering		2,031		2,414		2,294
Cost of revenue		1,594		2,512		3,008
Restructuring and acquisition related costs		—		—		3,049
Total share-based compensation expense	$	25,588	$	23,108	$	25,606

Restricted Stock Units and Deferred Stock Units Issued and Outstanding

The table below summarizes activities during 2023 relating to restricted and deferred stock units issued and outstanding under the Amended and Restated 2010 Incentive Plan:

	Restricted and Deferred Stock Units (In thousands)			Weighted Average Grant Date Fair Value		Weighted Average Remaining Vesting Period (In years)	Aggregate Intrinsic Value (1) (In thousands)
Unvested at December 31, 2022		238		$	128.26
Granted		102		$	156.43
Vested		(109	)	$	122.72
Forfeited		(25	)	$	139.97
Unvested at December 31, 2023		206		$	143.97	1.01 years	$	34,714
Expected to vest as of December 31, 2023		190		$	143.47	1.01 years	$	31,919

The aggregate intrinsic value is calculated based on the fair value of $168.41 per common share as of December 31, 2023 due to the fact that the restricted and deferred stock units carry a $0 purchase price.

Performance-Based Restricted Stock Units Issued and Outstanding

The table below summarizes activities during 2023 relating to performance-based restricted stock units issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan:

	Performance Stock Units (2) (In thousands)			Weighted Average Grant Date Fair Value		Weighted Average Remaining Vesting Period (In years)	Aggregate Intrinsic Value (3) (In thousands)
Unvested at December 31, 2022		216		$	144.16
Granted		57		$	179.15
Performance adjustments(1)		20		$	122.24
Vested		(70	)	$	116.56
Forfeited		(18	)	$	169.63
Unvested at December 31, 2023		205		$	160.24	1.45 years	$	34,541
Expected to vest as of December 31, 2023		236		$	161.43	1.45 years	$	39,690

(1)The amount shown represents performance adjustments related to the performance-based awards granted on February 20, 2020. These performance-based awards vested at a blended payout of 142% during the year ended December 31, 2023 based on the achievement of cumulative Non-GAAP EPS and applicable relative TSR performance conditions, respectively, over the performance period of fiscal years 2020 through 2022.

(2)The unvested PSUs are shown in this table at target. The number of shares vested reflects the number of shares earned and issued during the year. As of December 31, 2023, the maximum number of PSUs available to be earned was approximately 367 thousand.

(3)The aggregate intrinsic value is calculated based on the fair value of $168.41 per common share as of December 31, 2023 due to the fact that the performance stock units carry a $0 purchase price.

Schedule of Share Based Payment Award Performance Stock Awards Valuation Assumptions

The grant-date fair value of the hybrid PSUs granted during the year ended December 31, 2023 was estimated using the Monte-Carlo valuation model with the following assumptions:

	Year Ended
	December 31, 2023
Grant-date stock price	$	156.72
Expected volatility		35.89	%
Risk-free interest rate		4.44	%
Expected annual dividend yield		—
Weighted average fair value	$	181.45