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12. Share-Based Compensation (Notes)
 9 Months Ended
Sep. 30, 2024
Share-Based Payment Arrangement, Recognized Amount [Abstract]  
Share-Based Compensation
12. Share-Based Compensation

The following table presents share-based compensation expense recognized in our condensed consolidated statements of operations for the three and nine months ended September 30, 2024 and 2023 (in thousands):
Three Months Ended
September 30,		Nine Months Ended
September 30,
2024202320242023
Cost of sales$505 $1,238 $2,920 $3,513 
Selling, general and administrative5,610 5,905 16,484 16,668 
Research and development677 1,047 2,603 2,959 
Production start-up4 8 (20)69 
Total share-based compensation expense$6,796 $8,198 $21,987 $23,209 

As of September 30, 2024, we had $35.3 million of unrecognized share-based compensation expense related to unvested restricted stock and performance units, which we expect to recognize over a weighted-average period of approximately 1.2 years.

In March 2020 and May 2021, the compensation committee of our board of directors approved grants of performance units (“PU” or “PUs”) for key executive officers to be earned over multi-year performance periods, which ended in December 2022 and December 2023, respectively. Vesting of the 2020 and 2021 grants of PUs was contingent upon the specific attainment targets of each grant, which targets include metrics such as contracted revenue, module wattage, return on capital, cost per watt, incremental average selling price, and operating income metrics. In March 2023, the compensation committee certified the achievement of the vesting conditions applicable to the 2020 grants, which approximated the target level of performance. In February 2024, the compensation committee certified the achievement of the vesting conditions applicable to the 2021 grants, which approximated the maximum level of performance. Accordingly, each participant received one share of common stock for each vested PU granted, net of any tax withholdings.

In March 2022, March 2023, and March 2024, the compensation committee approved additional grants of PUs for key executive officers; such grants are expected to be earned over a multi-year performance period ending in December 2024, December 2025, and December 2026, respectively. Vesting of the 2022, 2023, and 2024 grants of PUs is contingent upon the specific attainment targets of each grant, which targets include metrics such as contracted revenue, cost per watt, return on capital, production, incremental average selling price, and operating margin metrics.

Vesting of PUs is also contingent upon the employment of program participants through the applicable vesting dates, with limited exceptions in case of death, disability, a qualifying retirement, or a change-in-control of First Solar. Outstanding PUs are included in the computation of diluted net income per share based on the number of shares that would be issuable if the end of the reporting period were the end of the contingency period.