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Equity Incentive Plans | 12 Months Ended
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Dec. 31, 2024
Share-Based Payment Arrangement [Abstract] |
Equity Incentive Plans | Equity Incentive Plans In June 2019, we adopted the 2019 Equity Incentive Plan (the “2019 Plan”). The 2019 Plan provides for the grant of stock options, restricted stock, RSUs, stock appreciation rights, performance units and performance shares to our employees, directors and consultants. Stock options granted under the 2019 Plan may be either incentive stock options or nonstatutory stock options. Incentive stock options may only be granted to our employees. Nonstatutory stock options may be granted to our employees, directors and consultants. Generally, our stock options and RSUs vest over four years and our stock options are exercisable over a maximum period of 10 years from their grant dates. Vesting typically terminates when the employment or consulting relationship ends. As of December 31, 2024, 113.0 million shares were reserved and available for issuance under the 2019 Plan. The following table summarizes our stock option and RSU activity for the year ended December 31, 2024:
| Stock Options |  | RSUs
| Number of Options (in thousands) |  | Weighted- Average Exercise Price |  | Weighted- Average Remaining Contractual Life (years) |  | Aggregate Intrinsic Value (in billions) |  | Number of RSUs (in thousands) |  | Weighted- Average Grant Date Fair Value
Beginning of period | 344,021 |  | $ | 35.11 |  |  |  |  |  |  | 19,088 |  | $ | 225.01 |
Granted | 14,979 |  | $ | 235.22 |  |  |  |  |  |  | 12,045 |  | $ | 223.98 |
Exercised or released | (10,469) |  | $ | 82.04 |  |  |  |  |  |  | (7,515) |  | $ | 206.02 |
Cancelled | (3,996) |  | $ | 205.61 |  |  |  |  |  |  | (4,957) |  | $ | 221.15 |
End of period | 344,535 |  | $ | 40.41 |  |  | 3.51 |  | $ | 125.22 |  |  | 18,661 |  | $ | 233.02 |
Vested and expected to vest, December 31, 2024 | 344,215 |  | $ | 40.23 |  |  | 3.50 |  | $ | 125.16 |  |  | 18,409 |  | $ | 232.99 |
Exercisable and vested, December 31, 2024 | 323,847 |  | $ | 27.75 |  |  | 3.14 |  | $ | 121.79 |  |  |  |  |
The weighted-average grant date fair value per share of RSUs granted in the years ended December 31, 2024, 2023 and 2022 was $223.98, $228.33 and $239.85, respectively. The aggregate release date fair value of RSUs in the years ended December 31, 2024, 2023 and 2022 was $1.75 billion, $2.50 billion and $4.32 billion, respectively. The aggregate intrinsic value of options exercised during the years ended December 31, 2024, 2023, and 2022 was $1.77 billion, $1.33 billion and $1.90 billion, respectively. ESPP Our employees are eligible to purchase our common stock through payroll deductions of up to 15% of their eligible compensation, subject to any plan limitations. The purchase price would be 85% of the lower of the fair market value on the first and last trading days of each six-month offering period. During the years ended December 31, 2024, 2023 and 2022, under the ESPP we issued 2.2 million, 2.1 million and 1.4 million shares, respectively. As of December 31, 2024, there were 95.5 million shares available for issuance under the ESPP. Fair Value Assumptions We use the fair value method in recognizing stock-based compensation expense. Under the fair value method, we estimate the fair value of each stock option award with service or service and performance conditions and the ESPP on the grant date generally using the Black-Scholes option pricing model. The weighted-average assumptions used in the Black-Scholes model for stock options are as follows:
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Risk-free interest rate | 3.92 | % |  | 3.90 | % |  | 3.11 | %
Expected term (in years) | 4.3 |  | 4.5 |  | 4.1
Expected volatility | 59 | % |  | 63 | % |  | 63 | %
Dividend yield | 0.0 | % |  | 0.0 | % |  | 0.0 | %
Grant date fair value per share | $ | 114.29 |  |  | $ | 121.62 |  |  | $ | 114.51 |
The fair value of RSUs with service or service and performance conditions is measured on the grant date based on the closing fair market value of our common stock. The risk-free interest rate is based on the U.S. Treasury yield for zero-coupon U.S. Treasury notes with maturities approximating each grant’s expected life. We use our historical data in estimating the expected term of our employee grants. The expected volatility is based on the average of the implied volatility of publicly traded options for our common stock and the historical volatility of our common stock. Other Performance-Based Grants From time to time, the Compensation Committee of our Board of Directors grants certain employees performance-based RSUs and stock options. As of December 31, 2024, we had unrecognized stock-based compensation expense of $490 million under these grants to purchase or receive an aggregate 5.0 million shares of our common stock. For awards probable of achievement, we estimate the unrecognized stock-based compensation expense of $421 million will be recognized over a weighted-average period of 4.0 years. For the years ended December 31, 2024, 2023 and 2022, stock-based compensation expense related to these grants, net of forfeitures, were not material. Summary Stock-Based Compensation Information The following table summarizes our stock-based compensation expense by line item in the consolidated statements of operations (in millions):
| Year Ended December 31,
| 2024 |  | 2023 |  | 2022
Cost of revenues | $ | 776 |  |  | $ | 741 |  |  | $ | 594 |
Research and development | 832 |  |  | 689 |  |  | 536 |
Selling, general and administrative | 389 |  |  | 382 |  |  | 430 |
Restructuring and other | $ | 2 |  |  | $ | — |  |  | $ | — |
Total | $ | 1,999 |  |  | $ | 1,812 |  |  | $ | 1,560 |
Our income tax benefits recognized from stock-based compensation arrangements were immaterial while we were under full valuation allowances on our U.S. deferred tax assets during the year ended December 31, 2022. With the release of the valuation allowance associated with our federal and certain state deferred tax assets in 2023, income tax benefits recognized from stock-based compensation expense during the years ended December 31, 2024 and 2023 were $371 million and $326 million, respectively. During the years ended December 31, 2024, 2023 and 2022, stock-based compensation expense capitalized to our consolidated balance sheets was $198 million, $199 million and $245 million, respectively. As of December 31, 2024, we had $5.79 billion of total unrecognized stock-based compensation expense related to non-performance awards, which will be recognized over a weighted-average period of 3.0 years.

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- Definition The entire disclosure for shareholders' equity and share-based payment arrangement. Includes, but is not limited to, disclosure of policy and terms of share-based payment arrangement, deferred compensation arrangement, and employee stock purchase plan (ESPP). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 505 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/505/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 718 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/718/tableOfContent + Details
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