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STOCK-BASED COMPENSATION (Tables) | 12 Months Ended
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Dec. 31, 2020
Share-based Payment Arrangement [Abstract] |
Stock-Based Compensation Expense Included in Consolidated Statements of Operations | The following table presents the stock-based compensation expense included in the Company’s consolidated statements of operations:
(in thousands) | 2020 |  | 2019 |  | 2018
Cost of revenue | $ | 20,796 |  |  | $ | 18,822 |  |  | $ | 16,862 |
Selling and marketing | 46,283 |  |  | 32,665 |  |  | 23,237 |
Research and development | 22,885 |  |  | 18,938 |  |  | 15,274 |
General and administrative | 13,104 |  |  | 10,484 |  |  | 8,489 |
| $ | 103,068 |  |  | $ | 80,909 |  |  | $ | 63,862 |
Income tax benefit | $ | (20,464) |  |  | $ | (16,392) |  |  | $ | (13,383) |
Weighted-Average Assumptions Used in Black-Scholes Option Valuation Model | The following table summarizes the Company’s fair value assumptions for stock options:
| 2020 |  | 2019 |  | 2018
Weighted-average grant-date fair value | $ | 24.16 |  |  | $ | 19.10 |  |  | $ | 18.03 |
Assumptions used in the Black-Scholes option-pricing model: |  |  |  |  |
Expected annual volatility (1) | 31 % |  | 32 | % |  | 34 | %
Expected term in years (2) | 4.5 |  | 4.5 |  | 4.5
Risk-free interest rate (3) | 0.7 | % |  | 2.4 | % |  | 2.6 | %
Expected annual dividend yield (4) | 0.2 | % |  | 0.3 | % |  | 0.4 | %
(1) The expected annual volatility for each grant is determined based on the average of historic daily price changes of the Company’s common stock over a period, which approximates the expected option term. (2) The expected option term for each grant is determined based on the historical exercise behavior of employees and post-vesting employment termination behavior. (3) The risk-free interest rate is based on the yield of U.S. Treasury securities with a commensurate maturity with the expected option term at the time of grant. (4) The expected annual dividend yield is based on the weighted-average dividend yield assumptions used for options granted during the applicable period.
Combined Stock Option Activity | The following table summarizes the combined stock option activity under the Company’s stock option plans for 2020:
| Shares (in thousands) |  | Weighted-average Exercise Price |  | Weighted-average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value (in thousands)
Options outstanding as of January 1, 2020 | 7,436 |  |  | $ | 44.76 |  |  |  |  |
Granted | 2,018 |  |  | 92.81 |  |  |  |  |
Exercised | (1,777) |  |  | 33.52 |  |  |  |  |
Forfeited | (286) |  |  | 62.86 |  |  |  |  |
Options outstanding as of December 31, 2020 | 7,391 |  |  | $ | 59.88 |  |  |  |  |
Vested and expected to vest as of December 31, 2020 | 6,225 |  |  | $ | 57.85 |  |  | 7.1 |  | $ | 469,374 |
Exercisable as of December 31, 2020 | 2,935 |  |  | $ | 38.73 |  |  | 5.6 |  | $ | 277,450 |
Combined Restricted Stock Units Activity | The following table summarizes the combined RSU activity for all grants, including the CICP, under the 2004 Plan for 2020:
| Shares (in thousands) |  | Weighted- Average Grant-Date Fair Value |  | Aggregate Intrinsic Value (in thousands)
Nonvested as of January 1, 2020 | 2,565 |  |  | $ | 55.61 |  |  |
Granted | 1,168 |  |  | 93.68 |  |  |
Vested | (1,059) |  |  | 51.11 |  |  |
Forfeited | (212) |  |  | 65.17 |  |  |
Nonvested as of December 31, 2020 | 2,462 |  |  | $ | 74.78 |  |  | $ | 328,023 |
Expected to vest as of December 31, 2020 | 1,841 |  |  | $ | 76.05 |  |  | $ | 245,339 |

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