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Stockholders' equity | 12 Months Ended
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Dec. 31, 2022
Stockholders' Equity Note [Abstract] |
Stockholders' equity | Stockholders' equity Preferred stock The Company is authorized to issue up to 15.0 million shares of preferred stock, $0.001 par value per share ("Preferred Stock"). Any Preferred Stock issued may have dividend rights, voting rights, conversion privileges, redemption characteristics, and sinking fund requirements as approved by the Company's board of directors. Common stock The Company currently has one class of common stock, $0.001 par value per share common stock ("Common Stock"), authorized and outstanding. The Company is authorized to issue up to 200.0 million shares of Common Stock. Holders of Common Stock are entitled to one vote for each share of Common Stock held on all matters, except as may be provided by law. 2021 Stock Repurchase program On November 11, 2021, the Company announced that its board of directors authorized a stock repurchase program of up to an aggregate of $250.0 million of Common Stock (the "Share Repurchase Program"). The Share Repurchase Program expired on November 11, 2022. The Company utilized $187.9 million to purchase 4.4 million shares as of the program expiration date. The Share Repurchase Program did not obligate the Company to acquire any specific number of shares. Repurchased shares are available for use in connection with our stock plans and for other corporate purposes. The following table details our stock repurchases under the Share Repurchase Program:
| Year Ended December 31,
| 2022 |  | 2021
Shares of common stock repurchased | 1.8 |  |  | 2.6 |
Average price paid per share | $ | 42.36 |  |  | $ | 42.67 |
Total cost | $ | 75.5 |  |  | $ | 112.6 |
Accounting for share-based compensation The Company has one share-based employee compensation plan, the Emergent Plan, which includes stock options and performance and restricted stock units. As of December 31, 2022, an aggregate of 25.4 million shares of common stock were authorized for issuance under the Emergent Plan, of which a total of approximately 2.9 million shares of common stock remain available for future awards to be made to plan participants. The exercise price of each option must be not less than 100% of the fair market value of the shares underlying such option on the date of grant. Options granted under the Emergent Plan have a contractual life of seven years. The Company utilizes the Black-Scholes valuation model for estimating the fair value of all stock options granted. Set forth below are the assumptions used in valuing the stock options granted:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
Expected dividend yield | 0 | % |  | 0 | % |  | 0 | %
Expected volatility | 54%-62% |  | 47-48% |  | 39-48%
Risk-free interest rate | 1.54%-4.31% |  | 0.43-0.94% |  | 0.27-1.42%
Expected average life of options | 4.5 years |  | 4.5 years |  | 4.5 years
Stock options, restricted stock units and performance stock units The following is a summary of stock option award activity under the Emergent Plan:
| Number of Shares |  | Weighted-Average Exercise Price |  | Weighted Average Remaining Contractual Term (in Years) |  | Aggregate Intrinsic Value
Stock options outstanding at December 31, 2021 | 1.2 |  |  | $ | 60.83 |  |  |  |  | $ | 3.0 |
Stock options granted | 0.7 |  |  | $ | 39.11 |  |  |  |  |
Stock options exercised | — |  |  | $ | 27.71 |  |  |  |  |
Stock options forfeited | (0.2) |  |  | $ | 64.66 |  |  |  |  |
Stock options outstanding at December 31, 2022 | 1.7 |  |  | $ | 51.74 |  |  | 4.1 |  | $ | — |
Stock options exercisable at December 31, 2022 | 0.8 |  |  | $ | 54.14 |  |  | 2.3 |  | $ | — |
Cash received from option exercises for the years ended December 31, 2022, 2021 and 2020 was $0.5 million, $10.4 million and $27.6 million, respectively. The weighted average grant date fair value of options granted during the years ended December 31, 2022, 2021, and 2020 was $17.85, $35.16 and $21.69 per share, respectively. The total intrinsic value of options exercised during the years ended December 31, 2022, 2021, and 2020 was $0.3 million, $15.7 million and $38.2 million, respectively. As of December 31, 2022, there was $12.0 million of unrecognized compensation cost related to stock options. The following is a summary of performance stock unit and restricted stock unit award activity under the Emergent Plan:
| Number of Shares |  | Weighted-Average Grant Date Fair Value |  | Aggregate Intrinsic Value
Stock awards outstanding at December 31, 2021 | 1.1 |  |  | $ | 70.82 |  |  | $ | 47.6 |
Stock awards granted (1) | 1.9 |  |  | $ | 34.49 |  |  |
Stock awards released | (0.5) |  |  | $ | 67.48 |  |  |
Stock awards forfeited (1) | (0.3) |  |  | $ | 55.46 |  |  |
Stock awards outstanding at December 31, 2022 | 2.2 |  |  | $ | 42.30 |  |  | $ | 25.8 |
(1) Performance stock units granted and forfeited during the year ended December 31, 2022 are included at the target payout percentage, or 100%, of shares granted.
The total fair value of restricted stock unit awards released during the years ended December 31, 2022, 2021 and 2020 was $30.9 million, $26.9 million and $34.1 million, respectively. As of December 31, 2022, there was $54.5 million of unrecognized compensation cost related to unvested restricted stock units. That cost is expected to be recognized ratable over a weighted average period of 1.9 years. Performance stock units represent common stock potentially issuable in the future, subject to achievement of performance conditions. Our current outstanding performance stock units vest based on certain financial metrics over the applicable performance period. The vesting and payout range for our performance stock units is typically between 50% and up to 150% of the target number of shares granted at the end of a three-year performance period. The total fair value of performance unit awards released during the years ended December 31, 2022, 2021 and 2020 was $2.5 million, $3.8 million and $1.2 million, respectively. As of December 31, 2022, there was $5.3 million of unrecognized compensation cost related to unvested performance stock units. That cost is expected to be recognized ratable over a weighted average period of 1.9 years. Share-based Compensation Expense Share-based compensation expense was recorded in the following financial statement line items:
| Year Ended December 31,
| 2022 |  | 2021 |  | 2020
| (As Restated) |  | (As Revised) |  | (As Revised)
Cost of product sales | $ | 7.3 |  |  | $ | 6.4 |  |  | $ | 8.9 |
Cost of CDMO services | 1.8 |  |  | 1.1 |  |  | 3.5 |
Research and development | 5.4 |  |  | 5.0 |  |  | 8.4 |
Selling, general and administrative | 30.6 |  |  | 29.9 |  |  | 31.0 |
Total share-based compensation expense | $ | 45.1 |  |  | $ | 42.4 |  |  | $ | 51.8 |
Accumulated other comprehensive income (loss), net of tax The following table includes changes in accumulated other comprehensive income (loss), net of tax by component:
|  | Defined Benefit Pension Plan |  | Derivative Instruments |  | Foreign Currency Translation Adjustments |  | Total
Balance at December 31, 2020 (As Revised) |  | $ | (7.7) |  |  | $ | (11.0) |  |  | $ | (6.6) |  |  | $ | (25.3) |
Other comprehensive income (loss) before reclassifications |  | 4.3 |  |  | 0.7 |  |  | (1.0) |  |  | 4.0 |
Amounts reclassified from accumulated other comprehensive income (loss) |  | (0.6) |  |  | 5.8 |  |  | — |  |  | 5.2 |
Net current period other comprehensive income (loss) |  | 3.7 |  |  | 6.5 |  |  | (1.0) |  |  | 9.2 |
Balance at December 31, 2021 (As Revised) |  | $ | (4.0) |  |  | $ | (4.5) |  |  | $ | (7.6) |  |  | $ | (16.1) |
Other comprehensive income before reclassifications |  | 8.7 |  |  | 10.8 |  |  | 1.0 |  |  | 20.5 |
Amounts reclassified from accumulated other comprehensive income (loss) |  | (1.2) |  |  | (0.1) |  |  | — |  |  | (1.3) |
Net current period other comprehensive income |  | 7.5 |  |  | 10.7 |  |  | 1.0 |  |  | 19.2 |
Balance at December 31, 2022 (As Restated) |  | $ | 3.5 |  |  | $ | 6.2 |  |  | $ | (6.6) |  |  | $ | 3.1 |
The tables below present the tax effects related to each component of other comprehensive income (loss):
| December 31, 2022 |  | December 31, 2021 |  | December 31, 2020
| (As Restated) |  | (As Revised) |  | (As Revised)
| Pretax |  | Tax Benefit (Expense) |  | Net of tax |  | Pretax |  | Tax Benefit (Expense) |  | Net of tax |  | Pretax |  | Tax Benefit (Expense) |  | Net of tax
Defined benefit pension plan | $ | 8.7 |  |  | $ | (1.2) |  |  | $ | 7.5 |  |  | $ | 4.3 |  |  | $ | (0.6) |  |  | $ | 3.7 |  |  | $ | (5.0) |  |  | $ | 0.7 |  |  | $ | (4.3) |
Derivative instruments | 14.6 |  |  | (3.9) |  |  | 10.7 |  |  | 8.9 |  |  | (2.4) |  |  | 6.5 |  |  | (13.0) |  |  | 3.6 |  |  | (9.4) |
Foreign currency translation adjustments | 0.6 |  |  | 0.4 |  |  | 1.0 |  |  | (1.2) |  |  | 0.2 |  |  | (1.0) |  |  | (2.2) |  |  | 0.1 |  |  | (2.1) |
Total adjustments | $ | 23.9 |  |  | $ | (4.7) |  |  | $ | 19.2 |  |  | $ | 12.0 |  |  | $ | (2.8) |  |  | $ | 9.2 |  |  | $ | (20.2) |  |  | $ | 4.4 |  |  | $ | (15.8) |

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