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Equity Awards
 9 Months Ended
Sep. 30, 2020
Share-based Payment Arrangement [Abstract]  
Equity Awards Equity Awards We currently have two equity incentive plans, our 2005 Stock Option Plan (the “2005 Plan”) and our 2012 Equity Incentive Plan (the “2012 Plan”). Our 2005 Plan was terminated in connection with our initial public offering in 2012 but continues to govern the terms of outstanding stock options that were granted prior to the termination of the 2005 Plan. We no longer grant equity awards pursuant to our 2005 Plan.
Our 2012 Plan provides for the grant of incentive stock options, nonqualified stock options, stock appreciation rights, RSUs, performance-based stock awards and other forms of equity compensation (collectively, equity awards). In addition, the 2012 Plan provides for the grant of performance cash awards. Incentive stock options may be granted only to employees. All other equity awards may be granted to employees, including officers, as well as directors and consultants. The share reserve may increase to the extent outstanding stock options under the 2005 Plan expire or terminate unexercised. Prior to January 2019, the share reserve also automatically increased on January 1 of each year until January 1, 2022, by up to 5% of the total number of shares of common stock outstanding on December 31 of the preceding year as determined by our board of directors. Our board of directors elected not to increase the number of shares of common stock reserved for issuance under the 2012 Plan pursuant to the provision described in the preceding sentence for the year ending December 31, 2019. In January 2019, our Board of Directors amended the 2012 Plan to remove the automatic increase provision. Therefore, for the remaining term of the 2012 Plan, the share reserve will not be increased without stockholder approval.

Our 2012 Employee Stock Purchase Plan (the “2012 ESPP”) authorizes the issuance of shares of common stock pursuant to purchase rights granted to our employees. The price at which common stock is purchased under the 2012 ESPP is equal to 85% of the fair market value of our common stock on the first or last day of the offering period, whichever is lower. Offering periods are six months long and begin on February 1 and August 1 of each year. The number of shares of common stock reserved for issuance automatically increases on January 1 of each year until January 1, 2022, by up to 1% of the total number of shares of common stock outstanding on December 31 of the preceding year as determined by our board of directors. Our board of directors elected not to increase the number of shares of common stock reserved for issuance under the 2012 ESPP pursuant to the provision described in the preceding sentence for the year ending December 31, 2020 and year ended December 31, 2019.

Stock Options

Stock options are exercisable at a price equal to the market value of the underlying shares of common stock on the date of the grant as determined by our board of directors or, for those stock options issued subsequent to our initial public offering, the closing price of our common stock as reported on the New York Stock Exchange on the date of grant. Stock options granted under our 2005 Plan and the 2012 Plan to new employees generally vest 25% one year from the date the requisite service period begins and continue to vest monthly for each month of continued employment over the remaining three years. Options granted generally are exercisable for a period of up to ten years contingent on each holder’s continuous status as a service provider.

A summary of stock option activity for the nine months ended September 30, 2020 was as follows:
Number of
Shares		Weighted-
Average
Exercise
Price Per Share		Weighted-
Average
Remaining
Contractual
Term		Aggregate
Intrinsic Value
(in thousands)(in years)(in thousands)
Outstanding at December 31, 20191,154 $77.70 
Exercised(149)$28.47 $44,465 
Canceled(11)$75.77 
Outstanding at March 31, 2020994 $85.08 
Exercised(343)$70.33 $95,041 
Outstanding at June 30, 2020651 $92.87 
Exercised(46)$25.03 $20,233 
Outstanding at September 30, 2020604 $98.16 4.6$233,515 
Vested and expected to vest as of September 30, 2020580 $91.47 4.4$228,345 
Vested and exercisable as of September 30, 2020425 $34.83 2.7$191,110 
 
Aggregate intrinsic value represents the difference between the estimated fair value of our common stock and the exercise price of outstanding, in-the-money options. The total fair value of stock options vested during the nine months ended September 30, 2020 was $2 million.
As of September 30, 2020, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested stock options was approximately $11 million. The weighted-average remaining vesting period of unvested stock options at September 30, 2020 was approximately 4.0 years.

RSUs

A summary of RSU activity for the nine months ended September 30, 2020 was as follows:
Number of
Shares		Weighted-Average Grant-Date Fair Value
Per Share		Aggregate
Intrinsic Value
(in thousands)(in thousands)
Outstanding at December 31, 20198,733 $185.39 
Granted2,810 $352.87 
Vested(1,183)$151.19 $411,813 
Forfeited(278)$199.48 
Outstanding at March 31, 202010,082 $235.99 
Granted398 $341.10 
Vested(1,061)$185.99 $394,458 
Forfeited(219)$213.34 
Outstanding at June 30, 20209,200 $246.89 
Granted283 $439.98 
Vested(1,007)$194.61 $436,885 
Forfeited(120)$242.32 
Outstanding at September 30, 20208,356 $260.60 $4,052,833 

RSUs outstanding as of September 30, 2020 were comprised of 7.9 million RSUs with only service conditions and 0.5 million RSUs with both service conditions and performance conditions. RSUs granted with only service vesting criteria under the 2012 Plan to employees generally vest over a four-year period.

Performance-based RSUs (“PRSUs”) with both service and performance-based vesting criteria are considered as eligible to vest when approved by the compensation committee of our board of directors in January of the year following the grant. The ultimate number of shares eligible to vest for PRSUs range from 0% to 180% of the target number of shares depending on achievement relative to the performance metric over the applicable period. The eligible shares subject to PRSUs granted during the nine months ended September 30, 2020 will vest 33% in February 2021 and continue to vest quarterly for the remaining two subsequent years, contingent on each holder’s continuous status as a service provider on the applicable vesting dates. The number of PRSUs granted shown in the table above reflects the shares that could be eligible to vest at 100% of target for PRSUs and includes adjustments for over or under achievement for PRSUs granted in the prior year. In July 2020, our board of directors approved a modification to the fiscal year 2020 performance target. As a result, we will recognize an incremental expense of $29 million over the remaining vesting period. We recognized $41 million and $54 million of stock-based compensation, net of actual and estimated forfeitures, associated with PRSUs on a graded vesting basis during the nine months ended September 30, 2020 and 2019, respectively.

As of September 30, 2020, total unrecognized compensation cost, adjusted for estimated forfeitures, related to unvested RSUs was approximately $1.7 billion and the weighted-average remaining vesting period was approximately 2.9 years.