Share-Based Compensation - (Notes)

6 Months Ended

Jun. 28, 2019

Share-based Payment Arrangement [Abstract]

Note 10: Share-Based Compensation

Total share-based compensation expense related to the Company's stock options, RSUs, stock grant awards and the ESPP were recorded within the Consolidated Statements of Operations and Comprehensive Income as follows (in millions):



	Quarters Ended						Six Months Ended
	June 28, 2019			June 29, 2018			June 28, 2019			June 29, 2018
Cost of revenue	$	3.5		$	1.8		$	5.4		$	3.4
Research and development	5.4			4.0			9.0			7.2
Selling and marketing	4.6			4.0			8.4			7.2
General and administrative	13.8			13.3			24.2			23.7
Share-based compensation expense	$	27.3		$	23.1		$	47.0		$	41.5
Related income tax benefits at federal rate of 21%	(5.7		)	(4.9		)	(9.9		)	(8.7		)
Share-based compensation expense, net of taxes	$	21.6		$	18.2		$	37.1		$	32.8

At June 28, 2019, total unrecognized share-based compensation expense, net of estimated forfeitures, related to non-vested RSUs with time-based service conditions, market-based and performance-based vesting criteria was $112.2 million, which is expected to be recognized over a weighted-average period of 1.6 years. The total intrinsic value of stock options exercised during the quarter and six months ended June 28, 2019 was $1.4 million and $2.5 million, respectively. The Company received cash of $0.4 million and $0.9 million, respectively, during the quarter and six months ended June 28, 2019 from the exercise of stock options. Upon option exercise, vesting of RSUs, stock grant awards or completion of a purchase under the ESPP, the Company issues new shares of common stock.

Share-based compensation expense is based on awards that are ultimately expected to vest. Forfeitures are estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from those estimates. The annualized pre-vesting forfeiture rate for RSUs was estimated to be 5% during the quarters and six months ended June 28, 2019 and June 29, 2018.

Shares Available

As of June 28, 2019 and December 31, 2018, there was an aggregate of 26.9 million and 33.7 million shares of common stock, respectively, available for grant under the Amended and Restated SIP. As of June 28, 2019 and December 31, 2018, there was an aggregate of 5.9 million and 6.5 million shares of common stock, respectively, available for issuance under the ESPP.

Stock Options

The number of options outstanding at December 31, 2018 was 0.3 million at a weighted average exercise price of $6.41 per option, of which 0.2 million options were exercised at a weighted average exercise price of $6.33 per option during the six months ended June 28, 2019. The number of options outstanding at June 28, 2019 was 0.1 million at a weighted average exercise price of $6.58 per option and had an aggregate intrinsic value of $1.6 million. All outstanding options had exercise prices below $20.21 per share, the closing price of the Company's common stock at June 28, 2019, and will expire at varying times between 2019 and 2021.

Restricted Stock Units

RSUs generally vest ratably over three years for service-based equity awards and over two years for performance-based equity awards and market-based equity awards, or a combination thereof, and are settled in shares of the Company's common stock upon vesting. A summary of the RSU transactions for the six months ended June 28, 2019 is as follows (in millions, except per share data):



	Number of Shares		Weighted-Average Grant Date Fair Value Per Share
Non-vested RSUs at December 31, 2018	8.6		$	16.59
Granted	4.6		21.77
Released	(3.7	)	12.62
Forfeited	(0.3	)	19.49
Non-vested RSUs at June 28, 2019	9.2		20.67