Stock-Based Compensation Expense (Tables)

3 Months Ended

Apr. 02, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity for the three-month period ended April 2, 2023:

	Shares (in thousands)	Weighted- Average Exercise Price		Weighted- Average Remaining Contractual Term (in years)	Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2022	8,467	$	51.56
Granted	1,228	47.21
Exercised	(140)	28.36
Forfeited or expired	(247)	58.05
Outstanding as of April 2, 2023	9,308	$	51.16	6.53	$	37,312
Exercisable as of April 2, 2023	5,433	$	47.45	5.12	$	33,531
Options vested or expected to vest as of April 2, 2023 (1)	8,735	$	50.90	6.37	$	36,643

 (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:

	Three-months Ended
	April 2, 2023		April 3, 2022
Risk-free rate	4.0	%	1.9	%
Expected dividend yield	0.59	%	0.40	%
Expected volatility	39	%	37	%
Expected term (in years)	4.3		5.2

Schedule of Nonvested Restricted Stock Units Activity

The following table summarizes the Company's RSUs activity for the three-month period ended April 2, 2023:

	Shares (in thousands)	Weighted-Average Grant Date Fair Value
Nonvested as of December 31, 2022	1,269	$	61.74
Granted	635	46.61
Vested	(453)	59.11
Forfeited or expired	(32)	66.98
Nonvested as of April 2, 2023	1,419	$	55.69

Schedule of Nonvested Performance-based Units Activity

The following table summarizes the Company's PRSUs activity for the three-month period ended April 2, 2023:

	Shares (in thousands)	Weighted-Average Grant Date Fair Value
Nonvested as of December 31, 2022	33	$	62.49
Granted	46	44.86
Vested	—	—
Forfeited or expired	—	—
Nonvested as of April 2, 2023	79	$	52.23

Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs

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

	Three-months Ended
	April 2, 2023		April 3, 2022
Cost of revenue	$	621	$	563
Research, development, and engineering	5,890		4,448
Selling, general, and administrative	10,068		10,045
	$	16,579	$	15,056