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Stock Based Compensation
 6 Months Ended
Jun. 30, 2024
Equity [Abstract]  
Stock Based Compensation

Note 10—Stock-based Compensation

Stock options, SARs, PSUs and RSUs

 

The amount of stock-based compensation expense recognized in our Condensed Consolidated Statements of Comprehensive Income for the three and six months ended June 30, 2024 and 2023 was as follows (in millions):

 

 

Three Months Ended June 30,

 

 

Six Months Ended June 30,

 

Condensed Consolidated Statements of Comprehensive Income Classification

 

2024

 

 

2023

 

 

2024

 

 

2023

 

Cost of software-enabled services

 

$

17.7

 

 

$

12.9

 

 

$

33.1

 

 

$

28.4

 

Cost of license, maintenance and other related

 

 

2.2

 

 

 

1.5

 

 

 

3.8

 

 

 

3.3

 

Total cost of revenues

 

 

19.9

 

 

 

14.4

 

 

 

36.9

 

 

 

31.7

 

Selling and marketing

 

 

9.3

 

 

 

6.6

 

 

 

17.0

 

 

 

14.5

 

Research and development

 

 

7.8

 

 

 

4.6

 

 

 

14.0

 

 

 

10.0

 

General and administrative

 

 

13.6

 

 

 

7.9

 

 

 

27.8

 

 

 

19.2

 

Total operating expenses

 

 

30.7

 

 

 

19.1

 

 

 

58.8

 

 

 

43.7

 

Total stock-based compensation expense

 

$

50.6

 

 

$

33.5

 

 

$

95.7

 

 

$

75.4

 

 

The stock-based compensation expense related to performance awards is adjusted for changes in our assessment of the performance target level that is probable of being achieved and the number of performance-based equity awards expected to vest. In December 2021, we granted performance-based stock options (“PSOs”) for which the 3-year performance period ends in December 2024. If the threshold level of performance is not achieved for these PSOs, $44.8 million of previously recorded stock-based compensation expense will be reversed. During the three months ended June 30, 2023, we recorded an adjustment to reduce

previously recorded stock-based compensation expense relating to performance-based equity awards by $8.5 million as the number of performance-based options expected to vest decreased.

The following table summarizes stock option and stock appreciation rights (“SARs”) activity, as well as performance stock units (“PSUs”) and restricted stock units (“RSUs”) activity, for the six months ended June 30, 2024 (shares in millions):

 

 

Stock Options and SARs

 

 

PSUs and RSUs

 

 

Outstanding at December 31, 2023

 

 

38.8

 

 

 

3.5

 

 

Granted

 

 

1.8

 

 

 

3.4

 

 

Cancelled/forfeited

 

 

(1.1

)

 

 

(0.9

)

 

Exercised

 

 

(2.4

)

 

 

—

 

 

Vested

 

 

—

 

 

 

(0.7

)

 

Outstanding at June 30, 2024

 

 

37.1

 

 

 

5.3