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Stockholders' Equity | 12 Months Ended
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Dec. 31, 2020
Equity [Abstract] |
Stockholders' Equity | Stockholders’ Equity Share-based Compensation Expense The following table summarizes non-cash share-based compensation expense (in thousands):
| December 31,
| 2020 |  | 2019 |  | 2018
Share-based compensation expense as a component of: |  |  |  |  |
Research and development expenses | $ | 13,497 |  |  | $ | 9,641 |  |  | $ | 8,352 |
General and administrative expenses | 17,230 |  |  | 14,874 |  |  | 12,494 |
| $ | 30,727 |  |  | $ | 24,515 |  |  | $ | 20,846 |
Stock Plans In December 2020, our 2002 Stock Incentive Plan was amended to increase the number of shares available for issuance by 1.1 million shares. As of December 31, 2020, there were 1.1 million shares available for future option grants or direct issuance under the Amended 2002 Plan. Following is a summary of our stock option plan activity and related information:
| Shares |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Term in Years |  | Aggregate Intrinsic Value (In thousands)
Balance at January 1, 2018 | 1,876,332 |  |  | $ | 53.17 |  |  | 5.77 |  | $ | 157,340 |
Granted | 228,362 |  |  | $ | 162.00 |  |  |  |  |
Exercised | (358,162) |  |  | $ | 55.24 |  |  |  |  |
Forfeited | (10,228) |  |  | $ | 114.53 |  |  |  |  |
Balance at December 31, 2018 | 1,736,304 |  |  | $ | 66.71 |  |  | 5.47 |  | 125,858 |
Exercisable at December 31, 2018 | 1,313,374 |  |  | $ | 47.03 |  |  | 4.56 |  | 117,314 |
Options vested and expected to vest as of December 31, 2018 | 1,736,304 |  |  | $ | 66.71 |  |  | 5.47 |  | $ | 125,858 |
Granted | 338,617 |  |  | $ | 116.69 |  |  |  |  |
Exercised | (112,011) |  |  | $ | 23.65 |  |  |  |  |
Forfeited | (6,531) |  |  | $ | 139.37 |  |  |  |  |
Balance at December 31, 2019 | 1,956,379 |  |  | $ | 77.54 |  |  | 5.45 |  | 72,002 |
Exercisable at December 31, 2019 | 1,454,726 |  |  | $ | 61.82 |  |  | 4.42 |  | 70,345 |
Options vested and expected to vest as of December 31, 2019 | 1,956,379 |  |  | $ | 77.54 |  |  | 5.45 |  | $ | 72,002 |
Granted | 806,300 |  |  | $ | 92.93 |  |  |  |  |
Exercised | (156,845) |  |  | $ | 21.26 |  |  |  |  |
Forfeited | (44,012) |  |  | $ | 91.30 |  |  |  |  |
Balance at December 31, 2020 | 2,561,822 |  |  | $ | 85.59 |  |  | 6.09 |  | 59,033 |
Exercisable at December 31, 2020 | 1,611,830 |  |  | $ | 76.05 |  |  | 4.54 |  | 53,286 |
Options vested and expected to vest as of December 31, 2020 | 2,561,822 |  |  | $ | 85.59 |  |  | 6.09 |  | $ | 59,033 |
The weighted-average grant-date fair value of all stock options granted during 2020, 2019 and 2018 was $41.39, $48.65 and $58.85 per share, respectively. The total intrinsic value of all options exercised during 2020, 2019 and 2018 was approximately $11.9 million, $10.4 million and $51.9 million, respectively. Cash received from options exercised, net of fees paid, in 2020, 2019 and 2018 was $2.5 million, $2.6 million and $19.8 million, respectively. Following is a further breakdown of the options outstanding as of December 31, 2020:
Range of exercise prices | Options outstanding |  | Weighted average remaining life in years |  | Weighted average exercise price |  | Options exercisable |  | Weighted average exercise price
$10.05-$14.47 | 284,184 |  |  | 0.86 |  | $ | 13.08 |  |  | 270,184 |  |  | $ | 13.00 |
$21.92-$56.26 | 344,629 |  |  | 2.88 |  | $ | 35.34 |  |  | 344,629 |  |  | $ | 35.34 |
$63.58-$74.42 | 307,356 |  |  | 5.20 |  | $ | 71.96 |  |  | 220,650 |  |  | $ | 73.41 |
$82.90-$95.35 | 185,033 |  |  | 6.23 |  | $ | 86.22 |  |  | 140,400 |  |  | $ | 86.32 |
$95.68 | 305,106 |  |  | 9.12 |  | $ | 95.68 |  |  | 63,059 |  |  | $ | 95.68 |
$97.92 | 4,976 |  |  | 5.02 |  | $ | 97.92 |  |  | 4,976 |  |  | $ | 97.92 |
$98.20 | 270,850 |  |  | 9.26 |  | $ | 98.20 |  |  | — |  |  | $ | 98.20 |
$100.02-$113.76 | 257,914 |  |  | 6.69 |  | $ | 104.12 |  |  | 220,092 |  |  | $ | 103.96 |
$117.58 | 19,744 |  |  | 9.44 |  | $ | 117.58 |  |  | — |  |  | $ | 117.58 |
$117.97-$195.91 | 582,030 |  |  | 7.56 |  | $ | 137.18 |  |  | 347,840 |  |  | $ | 141.38 |
| 2,561,822 |  |  | 6.09 |  | $ | 85.59 |  |  | 1,611,830 |  |  | $ | 76.05 |
The assumptions used for the specified reporting periods and the resulting estimates of weighted-average grant date fair value per share of options granted:
| Year Ended December 31,
| 2020 |  | 2019 |  | 2018 |
Risk-free interest rate | 0.2%-1.4% |  | 1.4%-2.6% |  | 2.7%-3.0% |
Expected volatility | 47%-71% |  | 40%-49% |  | 33%-36% |
Expected term | 4.7 to 5.1 years |  | 4.6 to 5.9 years |  | 5.1 to 5.8 years |
As of December 31, 2020, there was $37.2 million of total unrecognized compensation cost related to non-vested stock options. That cost is expected to be recognized over a weighted average period of 2.9 years. Restricted Stock Activity The following is a summary of our restricted stock activity and related information:
| Shares |  | Weighted-Average Grant Date Fair Value
Outstanding at January 1, 2018 | 133,294 |  |  | $ | 91.60 |
Granted | 62,133 |  |  | $ | 169.92 |
Vested | (61,989) |  |  | $ | 86.19 |
Forfeited | (1,165) |  |  | $ | 125.16 |
Outstanding at December 31, 2018 | 132,273 |  |  | $ | 130.63 |
Granted | 118,498 |  |  | $ | 115.90 |
Vested | (102,846) |  |  | $ | 121.55 |
Forfeited | (666) |  |  | $ | 134.36 |
Outstanding at December 31, 2019 | 147,259 |  |  | $ | 125.11 |
Granted | 111,306 |  |  | $ | 89.73 |
Vested | (52,363) |  |  | $ | 121.69 |
Forfeited | — |  |  | $ | — |
Outstanding at December 31, 2020 | 206,202 |  |  | $ | 106.88 |
As of December 31, 2020, unrecognized compensation cost related to non-vested stock awards amounted to $10.6 million. That cost is expected to be recognized over a weighted average period of 1.5 years. Employee Stock Purchase Plan As of December 31, 2020, 52,808 shares of our common stock are available for future issuance under the Amended Employee Stock Purchase Plan, or ESPP. The ESPP permits eligible employees to purchase up to 1,250 shares of Ligand common stock per calendar year at a discount through payroll deductions. The price at which stock is purchased under the ESPP is equal to 85% of the fair market value of the common stock on the first of a six month offering period or purchase date, whichever is lower. There were 6,455, 4,745 and 3,386 shares issued under the ESPP in 2020, 2019 and 2018, respectively. Share Repurchases In May 2018, in conjunction with our 2023 Notes debt offering, we repurchased 260,000 shares of our common stock at a cost of $191.14 per share. In September 2018, the board of directors authorized us to repurchase up to $200.0 million of our common stock from time to time over a period of up to three years (the “Repurchase Program”). On January 23, 2019, the board of directors elected to increase the Repurchase Program, authorizing us to repurchase up to a maximum of $350.0 million of our outstanding common stock under the Repurchase Program. On September 11, 2019, our Board of Directors approved a stock repurchase program authorizing the repurchase of up to $500.0 million of our common stock from time to time over the next three years. We expect to acquire shares primarily through open-market transactions and have entered into a Rule 10b5-1 trading plan, and may enter into additional Rule 10b5-1 trading plans in the future, to facilitate open-market repurchases. The timing and amount of repurchase transactions will be determined by management based on our evaluation of market conditions, share price, legal requirements and other factors. Our prior $350.0 million stock repurchase program mentioned above was terminated in connection with the approval of the new stock repurchase program. Authorization to repurchase $248.8 million of our common stock remained available as of December 31, 2020.During the twelve months ended December 31, 2020, 2019 and 2018, we repurchased 934,079 shares for $78.0 million, 4,122,133 shares for $448.4 million, and 782,248 shares for $127.5 million, respectively.

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- Definition The entire disclosure for shareholders' equity comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income. Includes, but is not limited to, balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings, accumulated balance for each classification of other comprehensive income and amount of comprehensive income. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.4-08(e)(1)) -URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 10 -Section S99 -Paragraph 1 -Subparagraph (SX 210.3-04) -URI http://asc.fasb.org/extlink&oid=120397183&loc=d3e187085-122770 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -URI http://asc.fasb.org/topic&trid=2208762 + Details
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