XML 61 R48.htm IDEA: XBRL DOCUMENT v3.22.0.1
Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2021
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, 2021, 2020 and 2019 (in thousands):
 
202120202019
Cost of revenue$27,143 $24,829 $22,479 
Research and development65,950 48,855 49,685 
Sales and marketing46,342 65,257 62,150 
General and administrative63,324 58,470 52,826 
Total stock-based compensation202,759 197,411 187,140 
Provision for income taxes(56,084)(62,153)(51,177)
Total stock-based compensation, net of taxes$146,675 $135,258 $135,963 
Schedule of Assumptions Used
The grant-date fair values of awards granted under the 1999 ESPP during the years ended December 31, 2021, 2020 and 2019 were estimated using the Black-Scholes option pricing model with the following weighted-average assumptions:
 
202120202019
Expected term (in years)0.50.50.5
Risk-free interest rate0.1 %0.7 %2.3 %
Expected volatility32.2 %30.4 %29.6 %
Dividend yield— %— %— %
The grant-date fair values of the TSR-based RSUs granted during the years ended December 31, 2021, 2020 and 2019 were estimated using a Monte Carlo simulation model with the following assumptions:
 202120202019
Expected term (in years)3.03.03.0
Risk-free interest rate0.3 %0.7 %2.5 %
Akamai historical share price volatility32.7 %28.2 %32.8 %
Average volatility of peer-company share price39.6 %28.9 %27.0 %
Schedule of Summary of Stock Option Activity
The following table summarizes stock option activity during the year ended December 31, 2021:
 
Shares
(in thousands)		Weighted Average Exercise PriceWeighted Average Remaining Contractual Term
(in years)		Aggregate Intrinsic Value
(in thousands)
Outstanding at January 1, 20216 $11.60 
Exercised(5)3.94 
Outstanding at December 31, 20211 $41.08 1.55$100 
Exercisable at December 31, 20211 $41.08 1.55$100 
Vested or expected to vest December 31, 20211 $41.08 1.55$100 
Schedule Of Deferred Stock Units Activity
The following table summarizes the DSU activity for the year ended December 31, 2021:

Units
(in thousands)		Weighted Average Grant Date Fair Value
Outstanding at January 1, 2021114 $65.09 
Granted21 114.56 
Vested and distributed(37)72.39 
Outstanding at December 31, 202198 $72.96 
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, 2021 (in thousands):
 
December 31, 2021
RSUs with service-based vesting conditions2,818 
RSUs with market-based vesting conditions85 
RSUs with performance-based vesting conditions396 
Total3,299 
Schedule of Restricted Stock Units Activity
The following table summarizes the RSU activity for the year ended December 31, 2021:
 
Units
(in thousands)		Weighted Average Grant Date Fair Value
Outstanding at January 1, 20214,556 $83.96 
Granted3,299 99.09 
Vested(2,851)81.74 
Forfeited(615)90.44 
Outstanding at December 31, 20214,389 $95.75