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Employee Benefits and Share-Based Compensation | 6 Months Ended
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Jun. 30, 2021
Share-based Payment Arrangement [Abstract] |
Employee Benefits and Share-Based Compensation | Employee Benefits and Share-Based Compensation Stock-Based Plans For a detailed explanation of the Company's stock plans, refer to Note 14, Employee Benefits and Share-Based Compensation, of the audited Consolidated Financial Statements and accompanying Notes included in the Company’s annual report on Form 10-K for the year ended December 31, 2020, filed with the SEC on February 24, 2021. Share-Based Compensation Expense The following table sets forth the total share-based compensation expense recognized in the Company’s Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2021 and 2020:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
| (In thousands)
Cost of product and service revenues | $ | 2,044 |  |  | $ | 2,130 |  |  | $ | 3,981 |  |  | $ | 3,900 |
Research and development | 1,731 |  |  | 1,854 |  |  | 3,431 |  |  | 3,622 |
Selling, general, and administrative | 9,264 |  |  | 7,367 |  |  | 17,399 |  |  | 14,488 |
Total share-based compensation expense | $ | 13,039 |  |  | $ | 11,351 |  |  | $ | 24,811 |  |  | $ | 22,010 |
Employee Stock Purchase Plan (“ESPP”) The following assumptions were used to value shares under the ESPP for the three and six months ended June 30, 2021 and 2020:
| Three Months Ended June 30, |  | Six Months Ended June 30,
| 2021 |  | 2020 |  | 2021 |  | 2020
Expected life, years | 0.5 - 2.0 |  | 0.5 - 2.0 |  | 0.5 - 2.0 |  | 0.5 - 2.0
Expected volatility, % | 27.4% - 53.5% |  | 30.4% - 39.9% |  | 27.4% - 53.5% |  | 30.4% - 39.9%
Risk-free interest rate, % | 0.1% - 2.6% |  | 1.4% - 2.7% |  | 0.1% - 2.6% |  | 1.4% - 2.7%
Dividend yield, % | — | % |  | — | % |  | — | % |  | — | %
For the six months ended June 30, 2021 and 2020, employees purchased approximately 156,000 and 217,000 shares of common stock, respectively, under the ESPP at a weighted-average price of $59.75 and $43.51, respectively. As of June 30, 2021, the unrecognized compensation cost related to the shares to be purchased under the ESPP was approximately $2.9 million and is expected to be recognized over a weighted-average period of 1.3 years. Stock Options The following assumptions were used to value stock options granted pursuant to the Company’s 2009 Equity Incentive Plan (as amended, the “2009 Plan”) for the three months ended June 30, 2020, and the six months ended June 30, 2021 and 2020. There were no stock options granted during the three months ended June 30, 2021.
|  |  | Three Months Ended June 30, |  | Six Months Ended June 30,
|  |  | 2020 |  | 2021 |  | 2020
Expected life, years |  |  | 4.7 |  | 4.9 |  | 4.7
Expected volatility, % |  |  | 42.2 | % |  | 30.1 | % |  | 37.9 | %
Risk-free interest rate, % |  |  | 0.5 | % |  | 0.6 | % |  | 0.9 | %
Estimated forfeiture rate, % |  |  | 5.7 | % |  | 7.9 | % |  | 5.7 | %
Dividend yield, % |  |  | — | % |  | — | % |  | — | %
The following table summarizes the stock options activity during the six months ended June 30, 2021:
| Number of Shares |  | Weighted-Average Exercise Price |  | Weighted-Average Remaining Years |  | Aggregate Intrinsic Value
| (In thousands, except per share data)
Outstanding at December 31, 2020 | 3,932 |  |  | $ | 62.50 |  |  | 7.8 |  | $ | 226,160 |
Granted | 150 |  |  | 125.80 |  |  |  |  |
Exercised | (395) |  |  | 58.20 |  |  |  |  |
Expired | (8) |  |  | 68.18 |  |  |  |  |
Forfeited | (120) |  |  | 73.01 |  |  |  |  |
Outstanding at June 30, 2021 | 3,559 |  |  | $ | 65.28 |  |  | 7.3 |  | $ | 306,648 |
Exercisable at June 30, 2021 | 1,634 |  |  | $ | 49.45 |  |  | 5.9 |  | $ | 166,665 |
Vested and expected to vest at June 30, 2021 and thereafter | 3,381 |  |  | $ | 64.38 |  |  | 7.3 |  | $ | 294,384 |
The weighted-average fair value per share of options granted during the three months ended June 30, 2020 was $26.03, and the weighted-average fair value per share of options granted during the six months ended June 30, 2021 and 2020 was $33.89 and $26.21, respectively. The intrinsic value of options exercised during the three months ended June 30, 2021 and 2020 was $16.8 million and $2.5 million, respectively, and during the six months ended June 30, 2021 and 2020 was $30.8 million and $12.4 million, respectively. As of June 30, 2021, total unrecognized compensation cost related to unvested stock options was $43.8 million, which is expected to be recognized over a weighted-average vesting period of 2.6 years. Restricted Stock Units (“RSUs”) The following table summarizes the restricted stock units activity under the 2009 Plan during the six months ended June 30, 2021:
| Number of Shares |  | Weighted-Average Grant Date Fair Value |  | Weighted-Average Remaining Years |  | Aggregate Intrinsic Value
| (In thousands, except per share data)
Outstanding at December 31, 2020 | 580 |  |  | $ | 72.87 |  |  | 1.6 |  | $ | 69,670 |
Granted (Awarded) | 165 |  |  | 134.00 |  |  |  |  |
Vested (Released) | (86) |  |  | 75.56 |  |  |  |  |
Forfeited | (36) |  |  | 71.92 |  |  |  |  |
Outstanding and unvested at June 30, 2021 | 623 |  |  | $ | 88.75 |  |  | 1.5 |  | $ | 94,403 |
As of June 30, 2021, total unrecognized compensation cost related to RSUs was $48.2 million, which is expected to be recognized over the remaining weighted-average vesting period of 3.0 years. Restricted Stock Awards (“RSAs”) The following table summarizes the restricted stock awards activity under the 2009 Plan during the six months ended June 30, 2021:
| Number of Shares |  | Weighted-Average Grant Date Fair Value
| (In thousands, except per share data)
Outstanding at December 31, 2020 | 21 |  |  | $ | 68.11 |
Granted (Awarded) | 10 |  |  | 135.86 |
Vested (Released) | (21) |  |  | 68.11 |
Outstanding and unvested at June 30, 2021 | 10 |  |  | $ | 135.86 |
As of June 30, 2021, total unrecognized compensation cost related to RSAs was $1.2 million, which is expected to be recognized over the remaining weighted-average vesting period of 0.9 years. Performance-Based Restricted Stock Units (“PSUs”) The following table summarizes the performance-based restricted stock units activity under the 2009 Plan during the six months ended June 30, 2021:
| Number of Shares |  | Weighted-Average Grant Date Fair Value Per Unit
| (In thousands, except per share data)
Outstanding at December 31, 2020 | 155 |  |  | $ | 74.26 |
Granted | 51 |  |  | 156.79 |
Vested | (41) |  |  | 70.60 |
Forfeited | (6) |  |  | 63.20 |
Outstanding and unvested at June 30, 2021 | 159 |  |  | $ | 102.21 |
As of June 30, 2021, total unrecognized compensation cost related to PSUs was approximately $8.6 million, which is expected to be recognized over the remaining weighted-average vesting period of 1.5 years. Summary of Shares Reserved for Future Issuance under Equity Incentive Plans The Company had the following ordinary shares reserved for future issuance under its equity incentive plans as of June 30, 2021:
| Number of Shares
| (In thousands)
Share options outstanding | 3,559 |
Non-vested restricted stock awards | 792 |
Shares authorized for future issuance | 1,902 |
ESPP shares available for future issuance | 1,050 |
Total shares reserved for future issuance | 7,303 |
Stock Repurchase Program On August 2, 2016, the Company's Board of Directors (the “Board”) authorized a stock repurchase program providing for the repurchase of up to $50.0 million of the Company’s common stock (the “2016 Repurchase Program”). The 2016 Repurchase Program is in addition to the stock repurchase program approved by the Board on November 4, 2014 providing for the repurchase of up to $50.0 million of the Company’s common stock (the “2014 Repurchase Program”). As of June 30, 2021, the maximum dollar value of shares that may yet be purchased under the two repurchase programs was $54.9 million. The stock repurchase programs do not obligate the Company to repurchase any specific number of shares, and the Company may terminate or suspend the repurchase programs at any time. During the three and six months ended June 30, 2021 and 2020, the Company did not repurchase any of its outstanding common stock.

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- Definition The entire disclosure for an entity's employee compensation and benefit plans, including, but not limited to, postemployment and postretirement benefit plans, defined benefit pension plans, defined contribution plans, non-qualified and supplemental benefit plans, deferred compensation, share-based compensation, life insurance, severance, health care, unemployment and other benefit plans. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 712 -URI http://asc.fasb.org/topic&trid=2197446 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 710 -URI http://asc.fasb.org/topic&trid=2127225 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 715 -URI http://asc.fasb.org/topic&trid=2235017 + Details
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