Stock-based Compensation Expense

6 Months Ended

Jun. 30, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

The Company issues stock options, restricted stock and restricted stock units with service conditions, which are generally the vesting periods of the awards. The Company also has issued, to certain members of senior management, restricted stock and restricted stock units that vest upon the earlier of the satisfaction of (i) a performance condition or (ii) a service condition and stock options that vest upon the earlier of the satisfaction of (a) performance conditions or (b) a service condition. In addition, the Company issued pursuant to a retention program restricted stock awards to certain members of senior management that will vest upon the satisfaction of both (i) a performance condition and (ii) a service condition. The Company also issues shares pursuant to an employee stock purchase plan ("ESPP").

In the second quarter of 2015, the Company’s shareholders approved an amendment and restatement of the 2013 Stock and Option Plan that, among other things, increased the number of shares of common stock available for issuance under the plan by 7,800,000 shares, plus the number of shares that remained available for issuance under our 2006 Stock and Option Plan, which rolled-over into the 2013 Stock and Option Plan.

During the three and six months ended June 30, 2015 and 2014, the Company recognized the following stock-based compensation expense included in loss from continuing operations:



	Three Months Ended June 30,						Six Months Ended June 30,
	2015			2014			2015			2014
	(in thousands)
Stock-based compensation expense by type of award:
Stock options	$	37,687		$	26,985		$	66,646		$	52,112
Restricted stock and restricted stock units	24,902			14,020			52,071			33,013
ESPP share issuances	1,825			1,681			3,965			4,348
Less stock-based compensation expense capitalized to inventories	(1,153		)	(242		)	(2,037		)	(449		)
Total stock-based compensation included in costs and expenses	$	63,261		$	42,444		$	120,645		$	89,024

Stock-based compensation expense by line item:
Research and development expenses	$	41,632		$	27,253		$	79,849		$	60,153
Sales, general and administrative expenses	21,629			15,191			40,796			28,871
Total stock-based compensation included in costs and expenses	$	63,261		$	42,444		$	120,645		$	89,024

The following table sets forth the Company's unrecognized stock-based compensation expense, net of estimated forfeitures, by type of award and the weighted-average period over which that expense is expected to be recognized:



	As of June 30, 2015
	Unrecognized Expense, Net of Estimated Forfeitures		Weighted-average Recognition Period
	(in thousands)		(in years)
Type of award:
Stock options	$	169,671	2.22
Restricted stock and restricted stock units	$	175,285	2.73
ESPP share issuances	$	3,953	0.59

The following table summarizes information about stock options outstanding and exercisable at June 30, 2015:



	Options Outstanding				Options Exercisable
Range of Exercise Prices	Number Outstanding	Weighted-average Remaining Contractual Life	Weighted-average Exercise Price		Number Exercisable	Weighted-average Exercise Price
	(in thousands)	(in years)	(per share)		(in thousands)	(per share)
$17.16–$20.00	147	2.52	$	18.87	147	$	18.87
$20.01–$40.00	2,888	4.04	$	34.82	2,534	$	34.60
$40.01–$60.00	3,015	7.12	$	48.32	1,534	$	49.67
$60.01–$80.00	1,705	8.60	$	75.99	539	$	74.93
$80.01–$100.00	2,108	8.57	$	90.22	621	$	86.72
$100.01–$120.00	1,868	9.58	$	109.24	113	$	109.25
$120.01–$127.54	202	9.92	$	127.31	165	$	127.54
Total	11,933	7.22	$	66.92	5,653	$	52.06