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Stockholders' Equity And Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2023
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Summary of Stock Option Activity

The following table provides the Company’s stock option activity from the Separation Date to December 31, 2023 (in thousands, except per share amounts):

 

 

Number of
Shares Subject
to Stock Options

 

 

Weighted
Average
Exercise
Price Per
Share

 

 

Weighted
Average
Remaining
Contractual
Life (in years)

 

 

Aggregate
Intrinsic Value

 

Balance at December 31, 2022

 

 

146

 

 

$

25.48

 

 

 

1.89

 

 

$

—

 

Options canceled / forfeited / expired

 

 

(40

)

 

$

21.76

 

 

 

 

 

 

 

Balance at December 31, 2023 (1)

 

 

106

 

 

$

26.87

 

 

 

1.69

 

 

$

—

 

(1) The ending balance at December 31, 2023 represents stock options that were fully vested and exercisable.
Summary of Restricted Stock Awards and Units

Information with respect to outstanding RSUs (including both time-based vesting and performance-based vesting) as of December 31, 2023 is as follows (in thousands, except per share amounts):

 

 

Number of Shares
Subject to Time-
based Vesting

 

 

Number of Shares
Subject to
Performance-
based Vesting

 

 

Total Number
of Shares

 

 

Weighted Average
Grant Date Fair
Value Per Share

 

Balance at December 31, 2022

 

 

3,713

 

 

 

891

 

 

 

4,604

 

 

$

20.35

 

Granted

 

 

3,204

 

 

 

1,009

 

 

 

4,213

 

 

$

11.64

 

Vested / released

 

 

(1,231

)

 

 

(15

)

 

 

(1,246

)

 

$

18.44

 

Canceled / forfeited

 

 

(290

)

 

 

(214

)

 

 

(504

)

 

$

20.20

 

Balance at December 31, 2023

 

 

5,396

 

 

 

1,671

 

 

 

7,067

 

 

$

15.51

 
Summary of Stock-Based Compensation Expense

Total stock-based compensation expense for the years ended December 31, 2023, 2022 and 2021 is as follows (in thousands):

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Cost of revenue, excluding depreciation and amortization of intangible assets

 

$

3,466

 

 

$

2,906

 

 

$

1,972

 

Research and development

 

 

25,276

 

 

 

21,561

 

 

 

17,914

 

Selling, general and administrative

 

 

40,789

 

 

 

20,836

 

 

 

13,623

 

Total stock-based compensation expense

 

$

69,531

 

 

$

45,303

 

 

$

33,509

 
Stock-Based Compensation Expense Categorized by Award Type

Stock-based compensation expense categorized by award type for the years ended December 31, 2023, 2022 and 2021 is summarized in the table below (in thousands):

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

 

2021

 

Restricted stock awards and units

 

$

64,179

 

 

$

42,208

 

 

$

30,015

 

Stock options

 

 

—

 

 

 

368

 

 

 

66

 

ESPP

 

 

5,352

 

 

 

2,727

 

 

 

3,428

 

Total stock-based compensation expense

 

$

69,531

 

 

$

45,303

 

 

$

33,509

 
Summary of Unrecognized Stock-based Compensation Expense

As of December 31, 2023, unrecognized stock-based compensation expense related to unvested stock-based awards is as follows (amounts in thousands):

 

 

December 31, 2023

 

 

 

Unrecognized Stock-Based Compensation

 

 

Weighted-Average Period to Recognize Expense
(in years)

 

RSUs and PSUs

 

$

88,151

 

 

 

2.1

 

ESPP

 

 

5,532

 

 

 

0.9

 

Total unrecognized stock-based compensation expense

 

$

93,683

 

 

 

 
Employee Stock Purchase Plan  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Schedule of Valuation Assumptions Used in Estimating Fair Value and Awards Granted

The following table summarizes the valuation assumptions used in estimating the fair value of the 2022 ESPP for the offering periods in effect using the Black-Scholes option pricing model:

 

 

Year Ended December 31,

 

 

 

2023

 

 

2022

 

Expected life (years)

 

0.5 — 2.0

 

 

 

2.0

 

Risk-free interest rate

 

4.33% — 5.44%

 

 

 

4.3

%

Dividend yield

 

 

0.0

%

 

 

0.0

%

Expected volatility

 

44.11% — 51.19%

 

 

 

42.9

%
Prior to the Separation, the valuation assumptions were determined by the Former Parent. The following assumptions were used to value the Former Parent’s ESPP shares granted to employees specifically identifiable to Xperi in the years ended December 31, 2022 and 2021:

 

 

Year Ended December 31,

 

 

 

2022

 

 

2021

 

Expected life (years)

 

 

2.0

 

 

 

2.0

 

Risk-free interest rate

 

 

1.3

%

 

0.1% - 0.2%

 

Dividend yield

 

 

1.1

%

 

0.9% - 1.2%

 

Expected volatility

 

 

48.5

%

 

 

52.0

%
Market-Based Performance Stock Units  
Share-Based Compensation Arrangement by Share-Based Payment Award [Line Items]  
Schedule of Valuation Assumptions Used in Estimating Fair Value and Awards Granted

The following assumptions were used to value the market-based PSUs granted during the period:

 

 

Year Ended December 31,

 

 

 

2023

 

2022

 

 

2021

 

Expected life (years)

 

1.5 — 2.8

 

 

3.0

 

 

 

3.0

 

Risk-free interest rate

 

4.54% — 4.96%

 

2.8%

 

 

0.3%

 

Dividend yield

 

0.00%

 

1.2%

 

 

1.0%

 

Expected volatility

 

44.11% — 51.19%

 

40.9%

 

 

47.9%