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Stockholders' Equity (Tables)

12 Months Ended

Dec. 31, 2018

Stock-based Compensation Expense

The stock-based compensation related to all of our stock-based awards and employee stock purchases for the year ended December 31, 2018, 2017 and 2016 is as follows (in thousands):

	For the Year Ended December 31,
	2018				2017				2016
Cost of net revenues	$	3,695			$	3,330			$	3,966
Selling, general and administrative	56,422				46,550				42,612
Research and development	10,646				8,974				7,570
Total stock-based compensation	$	70,763			$	58,854			$	54,148

Stock Option Activity

Activity for the year ended December 31, 2018, under the stock option plans is set forth below:

	Number of Shares Underlying Stock Options (in thousands)			Weighted Average Exercise Price per Share				Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2017	75			$	11.36
Exercised	(67	)		11.76
Cancelled or expired	—			—
Outstanding as of December 31, 2018	8			$	8.07			0.16		$	1,649
Vested at December 31, 2018	8			$	8.07			0.16		$	1,649
Exercisable at December 31, 2018	8			$	8.07			0.16		$	1,649

Fair value assumptions using the Monte Carlo simulation

The following weighted-average assumptions used in the Monte Carlo simulation were as follows:

	Year Ended December 31,
	2018				2017				2016
Expected term (in years)	3.0				3.0				3.0
Expected volatility	31.9		%		28.9		%		34.0		%
Risk-free interest rate	2.5		%		1.5		%		0.9		%
Expected dividends	—				—				—
Weighted average fair value per share at grant date	$	470.75			$	120.39			$	68.88

Schedule of ESPP share activity

The following table summarizes the ESPP shares issued:

	Year Ended December 31,
	2018				2017				2016
Number of shares issued (in thousands)	164				202				197
Weighted average price	$	96.95			$	59.93			$	48.65

Employee Stock Purchase Plan 2010

Weighted Average Assumptions Used for the Fair Value of Options Component of Purchase Plan Granted Estimated at Grant Date

The fair value of the option component of the 2010 Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions:

	Year Ended December 31,
	2018				2017				2016
Expected term (in years)	1.3				1.2				1.2
Expected volatility	35.2		%		26.8		%		30.5		%
Risk-free interest rate	2.2		%		1.0		%		0.7		%
Expected dividends	—				—				—
Weighted average fair value at grant date	$	94.71			$	31.36			$	22.23

Stock Option

Weighted Average Assumptions Used for the Fair Value of Options Component of Purchase Plan Granted Estimated at Grant Date

Activity for the year ended December 31, 2018, under the stock option plans is set forth below:

	Number of Shares Underlying Stock Options (in thousands)			Weighted Average Exercise Price per Share				Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Outstanding as of December 31, 2017	75			$	11.36
Exercised	(67	)		11.76
Cancelled or expired	—			—
Outstanding as of December 31, 2018	8			$	8.07			0.16		$	1,649
Vested at December 31, 2018	8			$	8.07			0.16		$	1,649
Exercisable at December 31, 2018	8			$	8.07			0.16		$	1,649

Restricted Stock Units (RSUs)

Summary of Nonvested Shares

A summary for the year ended December 31, 2018, is as follows:

	Number of Shares Underlying  RSUs (in thousands)			Weighted Average Grant Date Fair Value				Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Nonvested as of December 31, 2017	1,341			$	82.30
Granted	235			262.58
Vested and released	(562	)		75.22
Forfeited	(83	)		112.33
Nonvested as of December 31, 2018	931			$	129.42			1.04		$	194,950

Market Performance Based Restricted Stock Units

Summary of Nonvested Shares

The following table summarizes the MSU performance for the year ended December 31, 2018:

	Number of Shares Underlying MSUs (in thousands)			Weighted Average Grant Date Fair Value				Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands)
Nonvested as of December 31, 2017	428			$	78.53
Granted	208			266.78
Vested and released	(312	)		62.41
Forfeited	—			—
Nonvested as of December 31, 2018	324			$	215.07			1.16		$	67,897

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