Stockholders' Equity

9 Months Ended

Sep. 30, 2021

Equity [Abstract]

Stockholders’ Equity

Stockholders’ Equity

Stock Option Plans

We have two stock option plans – the 2004 Equity Incentive Plan (the “2004 Plan”) and the 2012 Incentive Award Plan (the “2012 Plan”). In February 2021, our Board of Directors authorized a 4.7 million increase in the shares available for grant under the 2012 Plan.

During the three and nine months ended September 30, 2021, we issued 0.9 million and 3.6 million shares of our common stock, respectively, upon the exercise of stock options. Certain option holders exercised their options on a “net exercise” basis, pursuant to which they surrendered to us, and we purchased from them at the current market price, enough shares to cover the exercise price and tax withholding requirements arising from the exercise. During the three and nine months ended September 30, 2021, we purchased 0.2 million and 1.2 million shares, respectively, in connection with such option net exercises. In connection with the shares purchased, during the three and nine months ended September 30, 2021, we paid $2.3 million and $20.3 million, respectively, to satisfy the tax withholding obligations associated with the net-share settlement of these cashless option exercises. We recorded these shares as treasury stock on our condensed consolidated balance sheets, at cost.

During the three and nine months ended September 30, 2020, we issued 0.6 million and 1.7 million shares of our common stock upon the exercise of stock options, respectively.

Stock Repurchase Program

In November 2020, we announced that our Board of Directors approved a program to repurchase up to $200 million of our common stock (the “Stock Repurchase Program”). The terms of this program did not require us to acquire any shares and allowed for repurchases by a variety of methods, including open market purchases, privately negotiated transactions, block trades, accelerated share repurchase transactions or any combination of such methods.

The Stock Repurchase Program expired by its terms on September 30, 2021.

During the three and nine months ended September 30, 2021, we repurchased 1.2 million and 3.9 million shares of common stock under the Stock Repurchase Program in open market transactions at an average price of $21.13 and $22.88 per share, for an aggregate purchase price of $25.8 million and $88.5 million, respectively. Over the term of the Stock Repurchase Program, we repurchased 4.3 million shares at an average price of $22.69 per share and a total cost of $98.2 million.

We recorded repurchased shares as treasury stock on our condensed consolidated balance sheets, at cost. As of September 30, 2021 and December 31, 2020 we had 10.9 million and 5.3 million treasury shares outstanding, respectively.

Stock-based compensation

The following table summarizes our stock-based compensation by account:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
Stock-based compensation capitalized in inventory	$	47	$	53	$	151	$	182
Cost of sales	12		13		38		51
Research and development	3,434		2,958		10,764		8,357
Selling, general and administrative	7,506		5,731		21,319		16,701
Total stock-based compensation	$	10,999	$	8,755	$	32,272	$	25,291