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Stock-based Compensation Expense and Share Repurchase Programs
 9 Months Ended
Sep. 30, 2019
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation Expense and Share Repurchase Stock-based Compensation Expense and Share Repurchase Programs
Stock-based compensation expense
During the three and nine months ended September 30, 2019 and 2018, the Company recognized the following stock-based compensation expense:
 
Three Months Ended September 30,
 
Nine Months Ended September 30,
 
2019
 
2018
 
2019
 
2018
 
(in thousands)
Stock-based compensation expense by type of award:
 
 
 
 
 
 
 
Restricted stock and restricted stock units (including PSUs)
$
61,175

 
$
55,482

 
$
185,651

 
$
157,397

Stock options
21,737

 
27,234

 
76,053

 
81,880

ESPP share issuances
3,044

 
2,725

 
8,430

 
7,281

Stock-based compensation expense related to inventories
(536
)
 
91

 
(1,236
)
 
(454
)
Total stock-based compensation included in costs and expenses
$
85,420

 
$
85,532

 
$
268,898

 
$
246,104

 
 
 
 
 
 
 


Stock-based compensation expense by line item:
 
 


 
 
 


Cost of sales
$
1,337

 
$
1,259

 
$
4,178

 
$
3,263

Research and development expenses
52,504

 
52,918

 
167,851

 
153,018

Sales, general and administrative expenses
31,579

 
31,355

 
96,869

 
89,823

Total stock-based compensation included in costs and expenses
85,420

 
85,532

 
268,898

 
246,104

Income tax effect
(21,996
)
 
3,114

 
(87,638
)
 
(13,715
)
Total stock-based compensation included in costs and expenses, net of tax
$
63,424

 
$
88,646

 
$
181,260

 
$
232,389


The following table sets forth the Company’s unrecognized stock-based compensation expense as of September 30, 2019, by type of award and the weighted-average period over which that expense is expected to be recognized:
 
As of September 30, 2019
 
Unrecognized Expense
 
Weighted-average
Recognition Period
 
(in thousands)
 
(in years)
Type of award:
 
 
 
Restricted stock and restricted stock units (including PSUs)
$
409,425

 
2.27
Stock options
$
153,686

 
2.64
ESPP share issuances
$
3,321

 
0.46

The following table summarizes information about stock options outstanding and exercisable as of September 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
 
186

 
1.47
 
$
36.89

 
186

 
$
36.89

$40.01–$60.00
 
379

 
2.73
 
$
50.00

 
379

 
$
50.00

$60.01–$80.00
 
299

 
4.62
 
$
73.01

 
294

 
$
72.96

$80.01–$100.00
 
2,183

 
6.41
 
$
89.27

 
1,477

 
$
89.78

$100.01–$120.00
 
597

 
5.37
 
$
109.29

 
592

 
$
109.25

$120.01–$140.00
 
707

 
5.89
 
$
130.24

 
695

 
$
130.35

$140.01–$160.00
 
1,203

 
8.34
 
$
155.51

 
464

 
$
155.41

$160.01–$180.00
 
803

 
8.61
 
$
167.65

 
257

 
$
163.59

$180.01–$189.38
 
1,733

 
9.12
 
$
185.35

 
346

 
$
184.58

Total
 
8,090

 
7.02
 
$
128.89

 
4,690

 
$
109.42


Share repurchase programs
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 September 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 nine months ended September 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 nine months ended September 30, 2018, the Company repurchased 1,282,683 shares of its common stock under the 2018 Share Repurchase Program for an aggregate of $211.0 million including commissions and fees.
In July 2019, the Company’s Board of Directors approved a new share repurchase program (the “2019 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. The Company expects to fund further repurchases of its common stock through a combination of cash on hand and cash generated by operations. During the nine months ended September 30, 2019, the Company repurchased 70,713 shares of its common stock under the 2019 Share Repurchase Program for an aggregate
of $12.0 million including commissions and fees. As of September 30, 2019, there is a total of $488.0 million remaining for repurchases under the 2019 Share Repurchase Program.