Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2020

Share-based Payment Arrangement [Abstract]

Schedule of Stock Based Compensation Expense

The following table summarizes the components of total stock-based compensation expense included in the Company’s consolidated statements of income for the years ended December 31, 2020, 2019 and 2018 (in thousands):

	2020		2019		2018
Cost of revenue	$	24,829	$	22,479	$	21,892
Research and development	48,855		49,685		44,034
Sales and marketing	65,257		62,150		64,373
General and administrative	58,470		52,826		53,514
Total stock-based compensation	197,411		187,140		183,813
Provision for income taxes	(62,153)		(51,177)		(48,502)
Total stock-based compensation, net of taxes	$	135,258	$	135,963	$	135,311

Schedule of Assumptions Used

The grant-date fair values of awards granted under the 1999 ESPP during the years ended December 31, 2020, 2019 and 2018 were estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:

	2020		2019		2018
Expected term (in years)	0.5		0.5		0.5
Risk-free interest rate	0.7	%	2.3	%	1.9	%
Expected volatility	30.4	%	29.6	%	31.2	%
Dividend yield	—	%	—	%	—	%

The grant-date fair values of the TSR-based RSUs granted during the years ended December 31, 2020, 2019 and 2018 were estimated using a Monte Carlo simulation model with the following assumptions:

	2020		2019		2018
Expected term (in years)	3.0		3.0		3.0
Risk-free interest rate	0.7	%	2.5	%	2.3	%
Akamai historical share price volatility	28.2	%	32.8	%	35.5	%
Average volatility of peer-company share price	28.9	%	27.0	%	26.3	%

Schedule of Summary of Stock Option Activity

The following table summarizes stock option activity during the year ended December 31, 2020:

	Shares (in thousands)	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding at January 1, 2020	20	$	26.23
Exercised	(14)	32.85
Outstanding at December 31, 2020	6	$	11.60	1.09	$	595
Exercisable at December 31, 2020	6	$	11.60	1.09	$	595
Vested or expected to vest December 31, 2020	6	$	11.60	1.09	$	595

Schedule Of Deferred Stock Units Activity

The following table summarizes the DSU activity for the year ended December 31, 2020:

	Units (in thousands)	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2020	99	$	57.50
Granted	24	100.58
Vested and distributed	(9)	76.62
Outstanding at December 31, 2020	114	$	65.09

Schedule of Restricted Stock Units by Type

The following table summarizes the different types of restricted stock units ("RSUs") granted by the Company during the year ended December 31, 2020 (in thousands):

	December 31, 2020
RSUs with service-based vesting conditions	2,223
RSUs with market-based vesting conditions	91
RSUs with performance-based vesting conditions	396
Total	2,710

Schedule of Restricted Stock Units Activity

The following table summarizes the RSU activity for the year ended December 31, 2020:

	Units (in thousands)	Weighted Average Grant Date Fair Value
Outstanding at January 1, 2020	5,073	$	70.43
Granted	2,710	92.42
Vested	(2,881)	69.04
Forfeited	(346)	75.55
Outstanding at December 31, 2020	4,556	$	83.96