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Stock-based Compensation Expense and Share Repurchase
 6 Months Ended
Jun. 30, 2019
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-based Compensation Expense and Share Repurchase Stock-based Compensation Expense and Share Repurchase
Stock-based compensation expense
During the three and six months ended June 30, 2019 and 2018, the Company recognized the following stock-based compensation expense:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2019
 
2018
 
2019
 
2018
 
(in thousands)
Stock-based compensation expense by type of award:
 
 
 
 
 
 
 
Restricted stock and restricted stock units (including PSUs)
$
60,966

 
$
51,497

 
$
124,476

 
$
101,915

Stock options
26,160

 
28,591

 
54,316

 
54,646

ESPP share issuances
2,809

 
2,428

 
5,386

 
4,556

Stock-based compensation expense related to inventories
(248
)
 
(80
)
 
(700
)
 
(545
)
Total stock-based compensation included in costs and expenses
$
89,687

 
$
82,436

 
$
183,478

 
$
160,572

 
 
 
 
 
 
 


Stock-based compensation expense by line item:
 
 


 
 
 


Cost of sales
$
1,503

 
$
1,191

 
$
2,841

 
$
2,004

Research and development expenses
55,632

 
51,612

 
115,347

 
100,100

Sales, general and administrative expenses
32,552

 
29,633

 
65,290

 
58,468

Total stock-based compensation included in costs and expenses
89,687

 
82,436

 
183,478

 
160,572

Income tax effect
(26,118
)
 
5,030

 
(65,642
)
 
(16,829
)
Total stock-based compensation included in costs and expenses, net of tax
$
63,569

 
$
87,466

 
$
117,836

 
$
143,743


The following table sets forth the Company’s unrecognized stock-based compensation expense as of June 30, 2019, by type of award and the weighted-average period over which that expense is expected to be recognized:
 
As of June 30, 2019
 
Unrecognized Expense
 
Weighted-average
Recognition Period
 
(in thousands)
 
(in years)
Type of award:
 
 
 
Restricted stock and restricted stock units (including PSUs)
$
408,282

 
2.37
Stock options
$
164,006

 
2.69
ESPP share issuances
$
6,364

 
0.62

The following table summarizes information about stock options outstanding and exercisable as of June 30, 2019:
 
 
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)
$29.07–$40.00
 
204

 
1.67
 
$
36.87

 
204

 
$
36.87

$40.01–$60.00
 
401

 
2.96
 
$
49.90

 
401

 
$
49.90

$60.01–$80.00
 
305

 
4.87
 
$
73.09

 
298

 
$
73.02

$80.01–$100.00
 
2,367

 
6.65
 
$
89.22

 
1,459

 
$
89.74

$100.01–$120.00
 
616

 
5.60
 
$
109.31

 
610

 
$
109.26

$120.01–$140.00
 
746

 
6.14
 
$
130.24

 
685

 
$
130.31

$140.01–$160.00
 
1,245

 
8.59
 
$
155.51

 
407

 
$
155.39

$160.01–$180.00
 
523

 
8.14
 
$
163.28

 
236

 
$
163.59

$180.01–$189.38
 
1,787

 
9.38
 
$
185.32

 
243

 
$
184.18

Total
 
8,194

 
7.14
 
$
126.39

 
4,543

 
$
106.24


Share repurchase program
In January 2018, the Company’s Board of Directors approved a share repurchase program (the “2018 Share Repurchase Program”), pursuant to which the Company was authorized to repurchase up to $500.0 million of its common stock between February 1, 2018 and December 31, 2019. As of June 30, 2019, the Company had repurchased the entire $500.0 million it was authorized to repurchase of its common stock under the 2018 Share Repurchase Program. Under the 2018 Share Repurchase Program, the Company was authorized to purchase shares from time to time through open market or privately negotiated transactions. Such purchases were made pursuant to Rule 10b5-1 plans or other means as determined by the Company’s management and in accordance with the requirements of the SEC.
During the six months ended June 30, 2019, the Company repurchased 832,186 shares of its common stock under the 2018 Share Repurchase Program for an aggregate of $150.0 million including commissions and fees. During the six months ended June 30, 2018, the Company repurchased 767,551 shares of its common stock under the 2018 Share Repurchase Program for an aggregate of $119.0 million including commissions and fees.
In July 2019, the Company’s Board of Directors approved a new share repurchase program, pursuant to which the Company is authorized to repurchase up to $500.0 million of its common stock between August 1, 2019 and December 31, 2020.