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Stock-based Compensation Expense and Share Repurchase Programs
 9 Months Ended
Sep. 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 nine months ended September 30, 2020 and 2019, the Company recognized the following stock-based compensation expense:
Three Months Ended September 30,Nine Months Ended September 30,
2020201920202019
(in thousands)
Stock-based compensation expense by type of award:
Restricted stock and restricted stock units (including PSUs)
$84,043 $61,175 $279,611 $185,651 
Stock options
13,221 21,737 47,334 76,053 
ESPP share issuances
3,225 3,044 8,565 8,430 
Stock-based compensation expense related to inventories
(950)(536)(3,076)(1,236)
Total stock-based compensation expense included in costs and expenses
$99,539 $85,420 $332,434 $268,898 
Stock-based compensation expense by line item:
Cost of sales
$1,250 $1,337 $3,998 $4,178 
Research and development expenses
60,770 52,504 203,732 167,851 
Sales, general and administrative expenses
37,519 31,579 124,704 96,869 
Total stock-based compensation expense included in costs and expenses
99,539 85,420 332,434 268,898 
Income tax effect
(35,295)(21,996)(130,692)(87,638)
Total stock-based compensation expense, net of tax
$64,244 $63,424 $201,742 $181,260 
The following table sets forth the Company’s unrecognized stock-based compensation expense as of September 30, 2020, by type of award and the weighted-average period over which that expense is expected to be recognized:
As of September 30, 2020
Unrecognized Expense
Weighted-average
Recognition Period
(in thousands)(in years)
Type of award:
Restricted stock units (including PSUs)
$487,254 2.06
Stock options
$76,261 1.95
ESPP share issuances
$3,265 0.44
The following table summarizes information about stock options outstanding and exercisable as of September 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)
$36.28–$40.00
62 1.09$38.06 62 $38.06 
$40.01–$60.00
157 1.98$47.13 157 $47.13 
$60.01–$80.00
105 3.49$74.82 104 $74.82 
$80.01–$100.00
1,029 5.66$88.91 919 $89.20 
$100.01–$120.00
129 4.39$109.27 128 $109.21 
$120.01–$140.00
282 4.98$129.42 281 $129.43 
$140.01–$160.00
740 7.36$155.49 369 $155.41 
$160.01–$180.00
599 7.76$168.34 282 $165.74 
$180.01–$200.00
1,252 8.14$185.31 422 $184.85 
$200.01–$286.27
23 9.67$286.27 23 $286.27 
Total4,378 6.63$140.26 2,747 $123.22 
Share repurchase programs
In 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 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. 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.
In 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. During the nine months ended September 30, 2020, the Company repurchased 1,806,587 shares of its common stock under the 2019 Share Repurchase Program for an aggregate of $408.0 million including commissions and fees. As of September 30, 2020, there was a total of $56.0 million remaining for repurchases under the 2019 Share Repurchase Program. The Company expects to fund further repurchases of its common stock through a combination of cash on hand and cash generated by operations.
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.