Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity:

	Shares (in thousands)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2021	7,610	$	49.38
Granted	1,418	59.63
Exercised	(365)	33.58
Forfeited or expired	(196)	58.90
Outstanding as of December 31, 2022	8,467	$	51.56	6.13	$	31,327
Exercisable as of December 31, 2022	4,596	$	44.71	4.94	$	31,025
Options vested or expected to vest as of   December 31, 2022 (1)	8,038	$	51.10	6.01	$	31,224

(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options.

Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted

The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions:

	Year Ended December 31,
	2022		2021		2020
Risk-free rate	2.2	%	1.3	%	1.4	%
Expected dividend yield	0.44	%	0.27	%	0.41	%
Expected volatility	37	%	39	%	37	%
Expected term (in years)	5.5		6.0		6.0

Nonvested Restricted Stock Shares Activity

The following table summarizes the Company's RSUs activity:

	Shares (in thousands)	Weighted-Average Grant Date Fair Value
Nonvested as of December 31, 2021	823	$	65.26
Granted	715	58.06
Vested	(192)	61.96
Forfeited or expired	(77)	64.65
Nonvested as of December 31, 2022	1,269	$	61.74

Schedule of Performance Restricted Stock Units

Performance Restricted Stock Units (PRSUs)

The following table summarizes the Company's PRSUs activity:

	Shares (in thousands)	Weighted-Average Grant Date Fair Value
Nonvested as of December 31, 2021	—	$	—
Granted	33	62.49
Vested	—	—
Forfeited or expired	—	—
Nonvested as of December 31, 2022	33	$	62.49

Stock-Based Compensation Expense

The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):

	Year Ended December 31,
	2022		2021		2020
Cost of revenue	$	2,016	$	1,345	$	1,365
Research, development, and engineering	17,693		13,535		13,387
Selling, general, and administrative	34,796		28,894		27,909
	$	54,505	$	43,774	$	42,661