Employee Benefit Plans

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Note 9. Employee Benefit Plans

Equity Incentive Plans

The Company has stock-based compensation plans pursuant to which it has granted stock options, restricted stock units (“RSUs”), and performance share awards (“PSAs”). The Company also maintains its 2008 Employee Stock Purchase Plan (the “ESPP”) for all eligible employees. As of March 31, 2023, 1.2 million and 4.9 million shares were available for future issuance under the Company's 2015 Equity Incentive Plan and the ESPP, respectively. In connection with past acquisitions, the Company has also assumed or substituted stock options, RSUs, restricted stock awards ("RSAs"), and PSAs.

RSU, RSA, and PSA Activities

The Company’s RSU, RSA, and PSA activities and related information as of and for the three months ended March 31, 2023 were as follows (in millions, except per share amounts and years):


	Outstanding RSUs, RSAs, and PSAs
	Number of Shares	Weighted Average Grant Date Fair Value per Share		Weighted Average Remaining Contractual Term (In Years)	Aggregate Intrinsic Value
Balance as of December 31, 2022	20.2	$	26.78
Granted(*)	2.9	31.03

Vested	(1.9)	26.57
Canceled	(0.9)	25.83
Balance as of March 31, 2023	20.3	$	27.44	1.3	$	699.0

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(*) Includes 1.1 million service-based, 1.4 million performance-based, and 0.4 million market-based awards. The number of shares subject to performance-based and market-based conditions represents the aggregate maximum number of shares that may be issued pursuant to the award over its full term. The grant date fair value of RSUs and PSAs was reduced by the present value of dividends expected to be paid on the underlying shares of common stock during the requisite and derived service period as these awards are not entitled to receive dividends until vested.

Employee Stock Purchase Plan

The following table summarizes employee stock purchases through the ESPP (in millions, except per share amounts):


	Three Months Ended March 31,
	2023		2022
Shares purchased	1.3		1.4
Average exercise price per share	$	23.44	$	20.07

Share-Based Compensation Expense

Share-based compensation expense associated with stock options, RSUs, RSAs, PSAs, and ESPP purchase rights was recorded in the following cost and expense categories in the Condensed Consolidated Statements of Operations (in millions):


	Three Months Ended March 31,
	2023		2022
Cost of revenues - Product	$	1.7	$	1.4
Cost of revenues - Service	4.7		4.5
Research and development	25.7		16.6
Sales and marketing	18.6		12.5
General and administrative	10.2		10.2
Total	$	60.9	$	45.2

The following table summarizes share-based compensation expense by award type (in millions):


	Three Months Ended March 31,
	2023		2022
Stock options	$	0.8	$	1.5
RSUs, RSAs, and PSAs	53.0		38.5
ESPP purchase rights	7.1		5.2
Total	$	60.9	$	45.2

As of March 31, 2023, the total unrecognized compensation cost related to unvested share-based awards was $388.9 million to be recognized over a weighted-average period of 1.88 years.