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Stockholders' Equity (Tables) | 12 Months Ended
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Dec. 31, 2022
Stock-based Compensation Expense | The stock-based compensation related to our stock-based awards and employee stock purchase plan for the year ended December 31, 2022, 2021 and 2020 is as follows (in thousands):
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Cost of net revenues |  | $ | 6,438 |  |  | $ | 5,633 |  |  | $ | 4,719 |
Selling, general and administrative |  | 103,134 |  |  | 90,659 |  |  | 78,500 |
Research and development |  | 23,795 |  |  | 18,044 |  |  | 15,208 |
Total stock-based compensation |  | $ | 133,367 |  |  | $ | 114,336 |  |  | $ | 98,427 |
Fair value assumptions using the Monte Carlo simulation | The weighted average assumptions used in the Monte Carlo simulation were as follows:
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Expected term (in years) |  | 3.0 |  | 3.0 |  | 3.0
Expected volatility |  | 53.8 | % |  | 56.3 | % |  | 44.4 | %
Risk-free interest rate |  | 1.7 | % |  | 0.2 | % |  | 1.4 | %
Expected dividends |  | — |  |  | — |  |  | — |
Weighted average fair value per share at grant date |  | $ | 915.22 |  |  | $ | 1,102.09 |  |  | $ | 392.67 |
Schedule of ESPP share activity | The following table summarizes the ESPP shares issued:
|  | Year Ended December 31,
|  | 2022 |  | 2021 |  | 2020
Number of shares issued (in thousands) |  | 86 |  |  | 131 |  |  | 116 |
Weighted average price |  | $ | 305.24 |  |  | $ | 195.44 |  |  | $ | 175.69 |
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,
|  | 2022 |  | 2021 |  | 2020
Expected term (in years) |  | 1.5 |  | 1.1 |  | 1.0
Expected volatility |  | 50.2 | % |  | 52.7 | % |  | 55.0 | %
Risk-free interest rate |  | 1.8 | % |  | 0.1 | % |  | 0.9 | %
Expected dividends |  | — |  |  | — |  |  | — |
Weighted average fair value at grant date |  | $ | 159.44 |  |  | $ | 246.84 |  |  | $ | 96.94 |
Restricted Stock Units (RSUs) |
Summary of Nonvested Shares | A summary for the year ended December 31, 2022 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)
Unvested as of December 31, 2021 |  | 492 |  |  | $ | 369.17 |  |  |  |  |
Granted |  | 248 |  |  | 469.12 |  |  |  |  |
Vested and released |  | (200) |  |  | 333.76 |  |  |  |  |
Forfeited |  | (51) |  |  | 437.05 |  |  |  |  |
Unvested as of December 31, 2022 |  | 489 |  |  | $ | 427.23 |  |  | 1.2 |  | $ | 103,138 |
Market Performance Based Restricted Stock Units |
Summary of Nonvested Shares | The following table summarizes the MSU performance activity for the year ended December 31, 2022:
|  | 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)
Unvested as of December 31, 2021 |  | 174 |  |  | $ | 551.57 |  |  |  |  |
Granted 1 |  | 101 |  |  | 607.96 |  |  |  |  |
Vested and released |  | (128) |  |  | 396.10 |  |  |  |  |
Forfeited |  | (3) |  |  | 744.39 |  |  |  |  |
Unvested as of December 31, 2022 |  | 144 |  |  | $ | 725.73 |  |  | 1.0 |  | $ | 30,384 |
1 Includes MSUs vested during the period above 100% of the grant as actual shares released is based on our stock performance over the vesting period

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