XML 66 R41.htm IDEA: XBRL DOCUMENT v3.20.4
STOCK-BASED COMPENSATION (Tables)
 12 Months Ended
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)202020192018
Cost of revenue$20,796 $18,822 $16,862 
Selling and marketing46,283 32,665 23,237 
Research and development22,885 18,938 15,274 
General and administrative13,104 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:
202020192018
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)
4.54.54.5
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 PriceWeighted-average Remaining Contractual Term (in years)Aggregate Intrinsic Value
(in thousands)
Options outstanding as of January 1, 20207,436 $44.76 
Granted2,018 92.81 
Exercised(1,777)33.52 
Forfeited(286)62.86 
Options outstanding as of December 31, 20207,391 $59.88 
Vested and expected to vest as of December 31, 20206,225 $57.85 7.1$469,374 
Exercisable as of December 31, 20202,935 $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, 20202,565 $55.61 
Granted1,168 93.68 
Vested(1,059)51.11 
Forfeited(212)65.17 
Nonvested as of December 31, 20202,462 $74.78 $328,023 
Expected to vest as of December 31, 20201,841 $76.05 $245,339