Equity

3 Months Ended

Mar. 31, 2025

Share-Based Payment Arrangement [Abstract]

Compensation expense related to stock-based awards was recorded as follows:


	Three Months Ended March 31,
(in millions)	2025		2024
Cost of revenue	$	0.2	$	0.1
Research and development expenses	2.6		2.1
Selling, general and administrative expenses	15.4		12.0
Total	$	18.2	$	14.2

Performance Share Units

In February 2025, the Company granted 89,393 performance stock units (“PSUs”) with a weighted-average grant-date fair value per share of $283.91. The PSUs included a relative total shareholder return (total shareholder return for the Company compared with total shareholder return of a peer group) as a market component. Depending on the achievement of the performance criteria and the Company's relative market performance during the three-year performance period, a recipient of the award could ultimately vest at up to 250% of the target award. Stock-based payments that contain both performance and market condition are recognized when performance conditions are probable of being achieved based on the grant date fair value. The Company uses the Monte Carlo model to estimate the probability of satisfying the market condition. The assumptions used in the Monte Carlo model for PSUs granted were:


Risk-free interest rate	4.04	%
Expected stock price volatility	41.7	%
Peer group stock price volatility	45.9	%
Correlation of returns	0.30

Deferred Compensation Plan

The Company has an unfunded, non-qualified deferred compensation plan for non-employee directors that allows participants to defer receipt of RSUs or cash compensation in the form of stock until a later date. Deferred awards are credited to a deferred stock account. The shares are held in a rabbi trust, which is classified and accounted for as equity in a manner consistent with the accounting for treasury stock. As of March 31, 2025, 735 shares were held in the trust. No shares were held in the trust as of December 31, 2024. The shares will be distributed when board service ceases.

Share Repurchase Program

In March 2025, the Company’s Board of Directors authorized a program to repurchase up to $125 million of common stock through December 31, 2026 to offset dilution from stock-based compensation.