Share-Based Compensation

6 Months Ended

Jul. 01, 2022

Share-Based Payment Arrangement [Abstract]

Note 9: Share-Based Compensation

Total share-based compensation expense related to the Company's RSUs, stock grant awards and the ESPP was recorded within the Consolidated Statements of Operations and Comprehensive Income as follows (in millions):


	Quarters Ended				Six Months Ended
	July 1, 2022		July 2, 2021		July 1, 2022		July 2, 2021
Cost of revenue	$	3.1	$	4.9	$	5.7	$	8.2
Research and development	5.2		7.3		9.6		13.0
Selling and marketing	4.3		4.5		8.1		8.8
General and administrative	14.5		12.4		26.2		21.4
Share-based compensation expense	$	27.1	$	29.1	$	49.6	$	51.4
Income tax benefit	(5.7)		(6.1)		(10.4)		(10.8)
Share-based compensation expense, net of taxes	$	21.4	$	23.0	$	39.2	$	40.6

As of July 1, 2022, total unrecognized expected share-based compensation expense, net of estimated forfeitures, related to non-vested RSUs with service, performance and market conditions was $144.9 million, which is expected to be recognized over a weighted-average period of 1.6 years. Upon vesting of RSUs, stock grant awards or completion of a purchase under the ESPP, the Company issues new shares of common stock. The annualized pre-vesting forfeiture rate for RSUs was estimated to be 8% for the quarter ended July 1, 2022 and 6% for the quarter and six months ended July 2, 2021.

Shares Available

As of July 1, 2022 and December 31, 2021, there was an aggregate of 39.8 million and 42.2 million shares of common stock, respectively, available for grant under the Amended and Restated SIP.

Restricted Stock Units

RSUs generally vest ratably over three years for awards with service conditions and over two or three years for awards with performance or market conditions, or a combination thereof, and are settled in shares of the Company's common stock upon vesting. A summary of the RSU transactions for the six months ended July 1, 2022 is as follows (in millions, except per share data):


	Number of Shares	Weighted-Average Grant Date Fair Value Per Share
Non-vested RSUs at December 31, 2021	6.2	$	28.60
Granted	1.7	60.13
Achieved	0.2	41.35
Released	(3.2)	24.99
Forfeited	(0.3)	35.25
Non-vested RSUs at July 1, 2022	4.6	42.76