Shareholders' Equity

6 Months Ended

Jun. 30, 2024

Stockholders' Equity Note [Abstract]

Shareholders' Equity

13.Shareholders’ Equity

Share Repurchase Program

In May 2021, the Company’s Board of Directors approved a share repurchase program (the “2021 Repurchase Program”) authorizing the purchase of up to $500.0 million of the Company’s common stock over a two-year period, in amounts, at prices, and at such times as management deems appropriate, subject to market conditions, legal requirements and other considerations.

In May 2023, the Company’s Board of Directors approved a share repurchase program (the “2023 Repurchase Program”) authorizing the purchase of up to $500.0 million of the Company’s common stock over a two-year period, in amounts, at prices, and at such times as management deems appropriate, subject to market conditions, legal requirements and other considerations. At June 30, 2024, $369.9 million remains available for future purchase under the 2023 Repurchase Program.

During the three and six months ended June 30, 2024, the Company did not purchase any shares under the 2023 Repurchase Program.

During the three months ended June 30, 2023, the Company did not purchase any shares under the 2021 Repurchase Program or 2023 Repurchase Program. During the six months ended June 30, 2023, the Company purchased a total of 315,318 shares at an aggregate cost of $22.2 million under the 2021 Repurchase Program. Authorization for the remaining $94.4 million on the 2021 Repurchase Program expired in May 2023.

In August 2022, the Inflation Reduction Act (“IRA”) was signed into law in the United States. The IRA introduced new tax provisions, including a 1.0% excise tax on stock repurchases. The Company expects additional guidance and regulations to be issued in future periods and will continue to assess its potential impact on its business as further information becomes available. The estimated excise tax on our stock repurchases is not material and is recorded in other current liabilities and additional paid in capital. No additional accrual for estimated excise tax was recorded for the six months ended June 30, 2024.

Public Offering

In May 2024, the Company completed an underwritten public offering (the “Offering”) in which the Company issued and sold 6,000,000 shares of its common stock at a public offering price of $67.29 per share. The Company received net proceeds of approximately $403.0 million after deducting underwriting fees and other offering expenses.

The Offering was made pursuant to an automatically effective registration statement on Form S-3 and accompanying prospectus filed with the SEC on May 29, 2024, and a final prospectus relating to the Offering filed with the SEC on May 31, 2024.

Stock-Based Compensation

The Company recorded stock-based compensation expense as follows in the unaudited condensed consolidated statements of income and comprehensive income (in millions):

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Stock options	$	0.4	$	0.4	$	0.9	$	0.8
Restricted stock units		4.4		3.8		8.6		7.5
Employee Stock Purchase Plan		0.3		0.2		0.5		0.4
Total stock-based compensation expense	$	5.1	$	4.4	$	10.0	$	8.7

	Three Months Ended June 30,				Six Months Ended June 30,
	2024		2023		2024		2023
Cost of product revenue	$	0.4	$	0.4	$	0.8	$	0.7
Selling, general and administrative		4.1		3.5		8.0		7.1
Research and development		0.6		0.5		1.2		0.9
Total stock-based compensation expense	$	5.1	$	4.4	$	10.0	$	8.7

In addition to the awards above, the Company recorded stock-based compensation expense within other charges, net of $1.7 million and $1.2 million in the three months ended June 30, 2024, and 2023, respectively, and $2.2 million and $3.4 million in the six months ended June 30, 2024 and 2023, respectively, related to the fair value changes of hybrid instruments associated with the option rights of certain minority shareholders of the Company’s majority owned acquisitions.

At June 30, 2024, the Company expected to recognize pre-tax stock-based compensation expense of $2.7 million associated with outstanding stock option awards granted under the Company's stock plans over the weighted average remaining service period of 2.0 years. The Company also expects to recognize additional pre-tax stock-based compensation expense of $32.9 million associated with outstanding restricted stock units granted under the Company's 2016 Incentive Compensation Plan over the weighted average remaining service period of 2.3 years.