Stock Based Compensation

9 Months Ended

Sep. 30, 2024

Note 11—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 nine months ended September 30, 2024 and 2023 was as follows (in millions):


	Three Months Ended September 30,				Nine Months Ended September 30,
Condensed Consolidated Statements of Comprehensive Income Classification	2024		2023		2024		2023
Cost of software-enabled services	$	18.2	$	14.5	$	51.3	$	42.9
Cost of license, maintenance and other related		2.1		1.8		5.9		5.1
Total cost of revenues		20.3		16.3		57.2		48.0
Selling and marketing		9.0		7.3		26.0		21.8
Research and development		7.6		5.8		21.6		15.8
General and administrative		15.3		12.7		43.1		31.9
Total operating expenses		31.9		25.8		90.7		69.5
Total stock-based compensation expense	$	52.2	$	42.1	$	147.9	$	117.5

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, $48.6 million of previously recorded stock-based compensation expense will be reversed.

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 nine months ended September 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		(1.4	)		(1.0	)
Exercised		(6.0	)		—
Vested		—			(0.8	)
Outstanding at September 30, 2024		33.2			5.1