XML 30 R18.htm IDEA: XBRL DOCUMENT v3.20.2
Stock-based Compensation Expense and Share Repurchase Programs
 6 Months Ended
Jun. 30, 2020
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation Expense and Share Repurchase Programs Stock-based Compensation Expense and Share Repurchase Programs
Stock-based compensation expense
During the three and six months ended June 30, 2020 and 2019, the Company recognized the following stock-based compensation expense:
Three Months Ended June 30,Six Months Ended June 30,
2020201920202019
(in thousands)
Stock-based compensation expense by type of award:
Restricted stock and restricted stock units (including PSUs)
$98,419  $60,966  $195,568  $124,476  
Stock options
16,847  26,160  34,113  54,316  
ESPP share issuances
2,855  2,809  5,340  5,386  
Stock-based compensation expense related to inventories
(932) (248) (2,126) (700) 
Total stock-based compensation expense included in costs and expenses
$117,189  $89,687  $232,895  $183,478  
Stock-based compensation expense by line item:
Cost of sales
$1,387  $1,503  $2,748  $2,841  
Research and development expenses
70,275  55,632  142,962  115,347  
Sales, general and administrative expenses
45,527  32,552  87,185  65,290  
Total stock-based compensation expense included in costs and expenses
117,189  89,687  232,895  183,478  
Income tax effect
(31,151) (26,118) (95,397) (65,642) 
Total stock-based compensation expense, net of tax
$86,038  $63,569  $137,498  $117,836  
The following table sets forth the Company’s unrecognized stock-based compensation expense as of June 30, 2020, by type of award and the weighted-average period over which that expense is expected to be recognized:
As of June 30, 2020
Unrecognized Expense
Weighted-average 
Recognition Period
(in thousands)(in years)
Type of award:
Restricted stock units (including PSUs)
$473,493  2.08
Stock options
$91,779  2.15
ESPP share issuances
$6,489  0.59
The following table summarizes information about stock options outstanding and exercisable as of June 30, 2020:
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)
$33.82–$40.00
67  1.27$37.85  67  $37.85  
$40.01–$60.00
166  2.20$47.20  166  $47.20  
$60.01–$80.00
107  3.77$74.83  105  $74.83  
$80.01–$100.00
1,095  5.92$88.92  889  $89.33  
$100.01–$120.00
132  4.64$109.27  130  $109.20  
$120.01–$140.00
288  5.23$129.41  286  $129.43  
$140.01–$160.00
784  7.61$155.49  340  $155.39  
$160.01–$180.00
619  8.02$168.32  252  $165.43  
$180.01–$200.00
1,307  8.40$185.32  365  $184.82  
$200.01–$286.27
23  9.92$286.27  23  $286.27  
Total4,588  6.89$139.99  2,623  $121.00  
Share repurchase programs
During 2018, the Company’s Board of Directors approved a share repurchase program (the “2018 Share Repurchase Program”), pursuant to which the Company repurchased $500.0 million of its common stock in 2018 and 2019. During the six months ended June 30, 2019, the Company repurchased 832,186 shares of its common stock under the share repurchase program for an aggregate of $150.0 million including commissions and fees. 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.
During 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.
As of June 30, 2020, there was a total of $164.0 million remaining for repurchases under the 2019 Share Repurchase Program. During the six months ended June 30, 2020, the Company repurchased 1,403,868 shares of its common stock under the 2019 Share Repurchase Program for an aggregate of $300.0 million including commissions and fees. Under the 2019 Share Repurchase Program, the Company is authorized to purchase shares from time to time through open market or privately negotiated transactions. Such purchases are 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.