XML 63 R22.htm IDEA: XBRL DOCUMENT v3.25.0.1
Stock-Based Compensation
 12 Months Ended
Dec. 31, 2024
Share-Based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
Equity Compensation Plans
As of December 31, 2024, our equity compensation plans included:
•2004 Employee Stock Purchase Plan (the "2004 Purchase Plan"): The 2004 Purchase Plan permits eligible employees to purchase common stock on favorable terms via payroll deductions of up to 15% of the employee's cash compensation, subject to certain share and statutory dollar limits. Two overlapping offering periods commence during each calendar year, on each of February 15 and August 15 or such other periods or dates as determined by the Talent, Culture and Compensation Committee of the Board of Directors (the "Compensation Committee") from time to time, and the offering periods last up to 24 months with a purchase date every 6 months. The price of each share purchased is 85% of the lower of a) the fair value per share of common stock on the last trading day before the commencement of the applicable offering period or b) the fair value per share of common stock on the purchase date.
•2020 Equity Incentive Plan: In 2020, both our Board of Directors and our stockholders approved the 2020 Equity Plan, which provides for the grant of stock options, including incentive stock options and nonqualified stock options, stock appreciation rights, RSAs, RSUs, other stock-based incentive awards, dividend equivalents, and cash-based incentive awards. The 2020 Equity Plan's awards may be granted to employees, non-employee members of the Board and consultants. Equity awards granted under the 2020 Equity Incentive Plan generally vest over four years. The maximum numbers of shares of our common stock available for issuance under the 2020 Equity Plan is equal to the sum of 4 million shares and the shares transferred from the 2000 Equity Incentive Plan.
The Equity compensation plans are administered by the Compensation Committee, which may terminate or amend these plans, with approval of the stockholders as may be required by applicable law, at any time. As of December 31, 2024, shares reserved and available for issuance under the equity compensation plans were as follows (in thousands):
Shares reservedShares available for grant
2004 Purchase Plan5,392 2,197 
2020 Equity Incentive Plan3,290 1,858 
Employee Stock Purchase Plan
We provide the following disclosures for the 2004 Purchase Plan as of December 31 (shares in thousands):
202420232022
Weighted-average purchase price per share$626.35 $572.59 $568.29 
Weighted-average grant date fair value per award for shares purchased$204.93 $206.83 $202.61 
Number of shares purchased148 152 144 
We use the Black-Scholes option-pricing model to determine the fair value of shares under the 2004 Purchase Plan with the following assumptions during the years ended December 31:
202420232022
Range of dividend yield
1.98% - 2.10%
1.69% - 1.78%
1.48% - 1.55%
Range of risk-free interest rate
3.89% - 5.27%
4.57% - 5.30%
0.72% - 3.06%
Range of expected volatility
21.31% - 29.82%
26.02% - 34.93%
25.73% - 37.20%
Weighted-average expected volatility26.88 %30.48 %30.34 %
Weighted-average expected life (in years)1.171.061.06
Restricted Stock Units
Since 2008, we primarily grant RSUs to our employees, including executives and non-employee directors. We generally grant RSUs that have a service condition only or have both a service and performance condition. Each RSU is not considered issued and outstanding and does not have voting rights until it is converted into one share of our common stock upon vesting. RSU activity is summarized as follows:
Number of Shares Outstanding (in thousands)Weighted Average Grant Date Fair Value per ShareWeighted Average Remaining Contractual Life (in years)
Aggregate Intrinsic Value (1) (in millions)
RSUs outstanding, December 31, 20211,358 $594.27 
RSUs granted912 661.43 
RSUs released, vested(669)576.62 
RSUs canceled(155)624.98 
RSUs outstanding, December 31, 20221,446 641.51 
RSUs granted991 699.07 
RSUs released, vested(681)644.90 
RSUs canceled(204)640.68 
RSUs outstanding, December 31, 20231,552 676.89 
RSUs granted842 884.10 
RSUs released, vested(688)714.66 
RSUs canceled(274)738.15 
RSUs outstanding, December 31, 20241,432 $768.84 1.22$1,350 
(1)The intrinsic value is calculated based on the closing market value of the stock as of December 31, 2024.
The total fair value of RSUs vested and released during the years ended December 31, 2024, 2023 and 2022 was $594 million, $498 million and $462 million, respectively.
Stock-Based Compensation Expense
The following table presents, by operating expense, our stock-based compensation expense recognized in our consolidated statement of operations for the years ended December 31 (in millions):
202420232022
Cost of revenues$58 $48 $45 
Sales and marketing94 86 83 
General and administrative310 273 276 
Total$462 $407 $404 
Our stock-based compensation expense recognized in the consolidated statement of operations was comprised of the following types of equity awards for the years ended December 31 (in millions):
202420232022
RSUs$438 $387 $360 
RSAs— 2 10 
Employee stock purchase plan24 18 34 
Total$462 $407 $404 
During the years ended December 31, 2024, 2023 and 2022, we capitalized $77 million, $60 million and $46 million, respectively, of stock-based compensation expense as construction in progress in property, plant and equipment.
As of December 31, 2024, the total stock-based compensation cost related to unvested equity awards not yet recognized, net of estimated forfeitures, totaled $850 million, which is expected to be recognized over a weighted-average period of 2.17 years.