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Employee Benefits and Share-Based Compensation
 3 Months Ended
Mar. 31, 2022
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, 2021, filed with the SEC on February 25, 2022.
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 months ended March 31, 2022 and 2021:
Three Months Ended March 31,
20222021
(In thousands)
Cost of product and service revenues$2,244 $1,937 
Research and development2,264 1,700 
Selling, general, and administrative11,700 8,135 
Total share-based compensation expense$16,208 $11,772 
Employee Stock Purchase Plan (“ESPP”)
The following assumptions were used to value shares under the ESPP for the three months ended March 31, 2022 and 2021:
Three Months Ended March 31,
20222021
Expected life, years
0.5 - 2.0
0.5 - 2.0
Expected volatility, %
28.8% - 45.6%
27.4% - 53.5%
Risk-free interest rate, %
0.1% - 1.5%
0.1% - 2.6%
Dividend yield, % — %— %
For the three months ended March 31, 2022 and 2021, employees purchased approximately 175,000 and 156,000 shares of common stock, respectively, under the ESPP at a weighted-average price of $66.81 and $59.75, respectively. As of March 31, 2022, the unrecognized compensation cost related to the shares to be purchased under the ESPP was approximately $3.6 million and is expected to be recognized over a weighted-average period of 1.4 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 March 31, 2021. There were no stock options granted during the three months ended March 31, 2022.
Three Months Ended March 31,
2021
Expected life, years 4.9
Expected volatility, % 30.1 %
Risk-free interest rate, % 0.6 %
Estimated forfeiture rate, %7.9 %
Dividend yield, % — %
The following table summarizes the stock option activity during the three months ended March 31, 2022:
Number of
Shares		Weighted-Average
Exercise Price		Weighted-Average
Remaining Years		Aggregate
Intrinsic Value
(In thousands, except per share data)
Outstanding at December 31, 20212,954 $67.35 6.9$334,119 
Granted— — 
Exercised(141)51.47 
Expired(1)68.74 
Forfeited(33)80.32 
Outstanding at March 31, 20222,779 $68.00 6.8$171,505 
Exercisable at March 31, 20221,699 $58.65 6.0$120,394 
Vested and expected to vest at March 31, 2022 and thereafter2,683 $67.36 6.7$167,177 
The weighted-average fair value per share of options granted during the three months ended March 31, 2021 was $33.89. The intrinsic value of options exercised during the three months ended March 31, 2022 and 2021 was $12.7 million and $14.0 million, respectively.
As of March 31, 2022, total unrecognized compensation cost related to unvested stock options was $28.4 million, which is expected to be recognized over a weighted-average vesting period of 2.0 years.
Restricted Stock Units (“RSUs”)
The following table summarizes the RSU activity under the 2009 Plan during the three months ended March 31, 2022:
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, 2021763 $119.93 1.6$137,696 
Granted (Awarded)150 147.90 
Vested (Released)(43)84.74 
Forfeited(26)119.49 
Outstanding and unvested at March 31, 2022844 $126.70 1.6$109,317 
As of March 31, 2022, total unrecognized compensation cost related to RSUs was $85.5 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 RSA activity under the 2009 Plan during the three months ended March 31, 2022:
Number of
Shares		Weighted-Average
Grant Date Fair Value
(In thousands, except per share data)
Outstanding at December 31, 202111 $137.36 
Granted (Awarded)— — 
Vested (Released)— — 
Outstanding and unvested at March 31, 202211 $137.36 
As of March 31, 2022, total unrecognized compensation cost related to RSAs was $0.2 million, which is expected to be recognized over the remaining weighted-average vesting period of 0.2 years.
Performance-Based Stock Unit Awards (“PSUs”)
The following table summarizes the PSU activity under the 2009 Plan during the three months ended March 31, 2022:
Number of
Shares		Weighted-Average
Grant Date Fair Value Per Unit
(In thousands, except per share data)
Outstanding at December 31, 2021144 $118.71 
Granted75 156.82 
Additional granted based on performance achievement51 156.79 
Vested(57)119.09 
Forfeited(1)178.81 
Outstanding and unvested at March 31, 2022212 $141.05 
As of March 31, 2022, total unrecognized compensation cost related to PSUs was approximately $13.7 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 March 31, 2022:
Number of Shares
(In thousands)
Share options outstanding2,779 
Non-vested restricted stock awards1,067 
Shares authorized for future issuance1,154 
ESPP shares available for future issuance744 
Total shares reserved for future issuance5,744 
Stock Repurchase Programs
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 March 31, 2022, the 2014 Repurchase Program was completed, and the maximum dollar value of shares that may yet be purchased under the 2016 Repurchase Program was $2.7 million. The 2016 Repurchase Program does not obligate the Company to repurchase any specific number of shares, and the Company may terminate or suspend the 2016 Repurchase Program at any time.
During the three months ended March 31, 2022, the Company repurchased approximately 389,300 shares of its common stock under the repurchase programs at an average price of $134.11 per share for an aggregate purchase price of approximately $52.2 million. During the three months ended March 31, 2021, the Company did not repurchase any of its outstanding common stock under the r