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Stockholders' Equity | 6 Months Ended
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Jun. 30, 2022
Stockholders' Equity Note [Abstract] |
Stockholders' Equity | Stockholders’ Equity Stock Option Plan In June 2020, the Company's stockholders approved the 2020 Stock Plan, which was adopted by the Company’s Board of Directors in March 2020 subject to stockholder approval. The 2020 Stock Plan is the successor to the 2011 Stock Plan and provides for the grant of incentive stock options to employees and for the grant of non-statutory stock options, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants. A summary of the activities related to the Company’s stock option plans is as follows:
|  |  | Options Outstanding
| Shares Available for Grant |  | Number of Shares |  | Weighted- Average Exercise Price (per share)
Balances as of December 31, 2021 | 20,145,360 |  |  | 17,595,851 |  |  | $ | 219.83 |
Granted | (1,616,014) |  |  | 1,616,014 |  |  | 306.48
Exercised | — |  |  | (742,484) |  |  | 30.62 |
Expired | — |  |  | (3,185) |  |  | 27.24 |
Balances as of June 30, 2022 | 18,529,346 |  |  | 18,466,196 |  |  | $ | 235.06 |
The aggregate intrinsic value of the Company's outstanding stock options as of June 30, 2022 was $773 million and represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the second quarter of 2022 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last trading day of the second quarter of 2022. This amount changes based on the fair market value of the Company’s common stock. The weighted-average remaining contractual term of the Company's outstanding stock options as of June 30, 2022 included in the table above was 5.47 years. All options outstanding are vested and exercisable. A summary of the amounts related to option exercises, is as follows:
| Three Months Ended |  | Six Months Ended
| June 30, 2022 |  | June 30, 2021 |  | June 30, 2022 |  | June 30, 2021
| (in thousands)
Total intrinsic value of options exercised | $ | 83,030 |  |  | $ | 90,290 |  |  | $ | 197,792 |  |  | $ | 318,310 |
Cash received from options exercised | 11,250 |  |  | 19,749 |  |  | 24,928 |  |  | 67,820 |
Stock-based Compensation Stock options granted are exercisable for the full ten year contractual term regardless of employment status. The following table summarizes the assumptions used to value option grants using the lattice-binomial model and the valuation data:
| Three Months Ended |  | Six Months Ended
| June 30, 2022 |  | June 30, 2021 |  | June 30, 2022 |  | June 30, 2021
Dividend yield | — | % |  | — | % |  | — | % |  | — | %
Expected volatility | 49 | % |  | 36 | % |  | 38% - 49% |  | 36% - 41%
Risk-free interest rate | 2.57 | % |  | 1.62 | % |  | 1.71% - 2.57% |  | 1.08% - 1.62%
Suboptimal exercise factor | 4.71 |  |  | 3.82 |  |  | 4.71 |  |  | 3.81 - 3.82
Weighted-average fair value (per share) | $ | 138 |  |  | $ | 241 |  |  | $ | 167 |  |  | $ | 254 |
Total stock-based compensation expense (in thousands) | $ | 150,392 |  |  | $ | 101,583 |  |  | $ | 269,601 |  |  | $ | 208,813 |
Total income tax impact on provision (in thousands) | $ | 33,335 |  |  | $ | 22,832 |  |  | $ | 59,748 |  |  | $ | 46,911 |
The Company considers several factors in determining the suboptimal exercise factor, including the historical and estimated option exercise behavior. The Company calculates expected volatility based solely on implied volatility. The Company believes that implied volatility of publicly traded options in its common stock is more reflective of market conditions, and given consistently high trade volumes of the options, can reasonably be expected to be a better indicator of expected volatility than historical volatility of its common stock. In valuing shares issued under the Company’s employee stock option plans, the Company bases the risk-free interest rate on U.S. Treasury zero-coupon issues with terms similar to the contractual term of the options. The Company does not anticipate paying any cash dividends in the foreseeable future and therefore uses an expected dividend yield of zero in the option valuation model. The Company does not use a post-vesting termination rate as options are fully vested upon grant date. Stock Repurchases In March 2021, the Company’s Board of Directors authorized the repurchase of up to $5 billion of its common stock, with no expiration date. Stock repurchases may be effected through open market repurchases in compliance with Rule 10b-18 under the Exchange Act, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, privately-negotiated transactions, accelerated stock repurchase plans, block purchases, or other similar purchase techniques and in such amounts as management deems appropriate. The Company is not obligated to repurchase any specific number of shares, and the timing and actual number of shares repurchased will depend on a variety of factors, including the Company’s stock price, general economic, business and market conditions, and alternative investment opportunities. The Company may discontinue any repurchases of its common stock at any time without prior notice. There were no repurchases during the three and six months ended June 30, 2022. As of June 30, 2022, $4.4 billion remain available for repurchases. Shares repurchased by the Company are accounted for when the transaction is settled. As of June 30, 2022, there were no unsettled share repurchases. Direct costs incurred to acquire the shares are included in the total cost of the shares.

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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 -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI https://asc.fasb.org/topic&trid=2208762 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI https://asc.fasb.org/topic&trid=2228938 + Details
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