XML 27 R17.htm IDEA: XBRL DOCUMENT v3.23.3
Stockholders' Equity
 9 Months Ended
Sep. 30, 2023
Stockholders' Equity Note [Abstract]  
Stockholders' Equity Stockholders’ Equity
Stock Option Plan
In June 2020, the Company's stockholders approved the 2020 Stock Plan, which was adopted by the Company’s Board of Directors in March 2020 subject to stockholder approval. The 2020 Stock Plan provides for the grant of incentive stock options to employees and for the grant of non-statutory stock options, stock appreciation rights, restricted stock and restricted stock units to employees, directors and consultants.
A summary of the activities related to the Company’s stock option plans is as follows:
Options Outstanding
Shares
Available
for Grant		Number of
Shares		Weighted-
Average
Exercise Price
(per share)		Weighted-Average
Remaining
Contractual Term
(in years)		Aggregate Intrinsic Value
(in thousands)
Balances as of December 31, 202216,454,103 19,896,861 $242.22 
Granted
(1,372,702)1,372,702 360.44
Exercised
— (1,369,075)85.43 
Expired
— (3,314)32.04 
Balances as of September 30, 202315,081,401 19,897,174 $261.20 5.41$2,780,062 
Vested and expected to vest as of September 30, 202319,897,174 $261.20 5.41$2,780,062 
Exercisable as of September 30, 202319,709,179 $260.11 5.37$2,775,752 

The aggregate intrinsic value in the table above represents the total pretax intrinsic value (the difference between the Company’s closing stock price on the last trading day of the third quarter of 2023 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had all option holders exercised their options on the last trading day of the third quarter of 2023. This amount changes based on the fair market value of the Company’s common stock.
A summary of the amounts related to option exercises, is as follows:
Three Months EndedNine Months Ended
September 30,
2023		September 30,
2022		September 30,
2023		September 30,
2022
(in thousands)
Total intrinsic value of options exercised$160,031 $65,087 $414,132 $262,879 
Cash received from options exercised57,818 4,113 118,563 29,041 
Stock-based Compensation
Stock options are generally vested in full upon grant date and exercisable for the full ten year contractual term regardless of employment status. Stock options granted to certain named executive officers vest on the one-year anniversary of the grant date, subject to the employee’s continuous employment or service with the Company through the vesting date. The following table summarizes the assumptions used to value option grants using the lattice-binomial model and the valuation data:
Three Months EndedNine Months Ended
September 30,
2023		September 30,
2022		September 30,
2023		September 30,
2022
Dividend yield— %— %— %— %
Expected volatility40 %50 %
40% - 46%
38% - 50%
Risk-free interest rate3.95 %2.98 %
3.57% - 3.95%
1.71% - 2.98%
Suboptimal exercise factor4.27 4.73 
4.22 - 4.27
4.71 - 4.73
Weighted-average fair value (per share)$244 $127 $205 $150 
Total stock-based compensation expense (in thousands)$79,720 $152,062 $256,849 $421,663 
Total income tax impact on provision (in thousands)$17,452 $33,724 $56,311 $93,472 
Stock Repurchases
In March 2021, the Company’s Board of Directors authorized the repurchase of up to $5 billion of its common stock, with no expiration date, and in September 2023, the Board of Directors increased the share repurchase authorization by an additional $10 billion, also with no expiration date. Stock repurchases may be effected through open market repurchases in compliance with Rule 10b-18 under the Exchange Act, including through the use of trading plans intended to qualify under Rule 10b5-1 under the Exchange Act, privately-negotiated transactions, accelerated stock repurchase plans, block purchases, or other similar purchase techniques and in such amounts as management deems appropriate. The Company is not obligated to repurchase any specific number of shares, and the timing and actual number of shares repurchased will depend on a variety of factors, including the Company’s stock price, general economic, business and market conditions, and alternative investment opportunities. The Company may discontinue any repurchases of its common stock at any time without prior notice. During the three and nine months ended September 30, 2023, the Company repurchased 5,964,802 and 9,036,182 shares, respectively, for an aggregate amount of $2,500 million and $3,545 million, respectively. As of September 30, 2023, $10.9 billion remain available for repurchases. Shares repurchased by the Company are accounted for when the transaction is settled. As of September 30, 2023, there were no unsettled share repurchases. Direct costs incurred to acquire the shares are included in the total cost of the shares.
Accumulated Other Comprehensive Income (Loss)
The following table summarizes the changes in accumulated balances of other comprehensive income (loss), net of tax:
Foreign Currency Translation
Adjustments		Change in Unrealized Gains (Losses) on Cash Flow HedgesTotal
(in thousands)
Balances as of December 31, 2022$(217,306)$— $(217,306)
Other comprehensive income (loss) before reclassifications
(16,117)77,852 61,735 
Balances as of September 30, 2023$(233,423)$77,852 $(155,571)
Foreign Currency Translation
Adjustments		Change in Unrealized Gains (Losses) on Cash Flow HedgesTotal
(in thousands)
Balances as of December 31, 2021$(40,495)$— $(40,495)
Other comprehensive income (loss) before reclassifications
(207,148)— (207,148)
Balances as of September 30, 2022$(247,643)$— $(247,643)