STOCK-BASED COMPENSATION (Tables)

9 Months Ended

Sep. 30, 2023

Share-Based Payment Arrangement [Abstract]

Summary of Stock Option Activity Under the Stock Plans

A summary of stock option activity under the Stock Plans is as follows:

	Option Shares	Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value (1)
(Aggregate intrinsic value in thousands)
Outstanding, January 1, 2023	1,517,876	$	44.82	4.7
Exercised	(176,250)	16.41
Forfeited	(37,074)	95.02
Outstanding, September 30, 2023	1,304,552	$	47.23	4.1	$	38,808
Vested and expected to vest, September 30, 2023	1,304,552	$	47.23	4.1	$	38,808
Exercisable, September 30, 2023	1,246,973	$	44.90	4.0	$	38,808

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(1)The total intrinsic value of options exercised during the nine months ended September 30, 2023 and 2022 was $10.6 million and $34.7 million, respectively, determined as of the date of exercise.

Summary of Restricted Stock and Restricted Stock Unit Activity Under the Stock Plans

A summary of restricted stock and restricted stock unit activity during the nine months ended September 30, 2023 is as follows:

	Restricted Shares	Weighted Average Grant Date Fair Value (1)
Outstanding, January 1, 2023	5,254,709	$	89.29
Granted	3,383,127	62.28
Released (2)	(1,646,982)	89.32
Forfeited	(568,317)	74.64
Outstanding, September 30, 2023	6,422,537	$	73.63

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(1)The weighted average grant date fair value of the restricted stock units granted during the nine months ended September 30, 2022 was $70.28.

(2)The fair value of restricted stock units vested and converted to shares of the Company’s common stock was $146.7 million and $155.5 million during the nine months ended September 30, 2023 and 2022, respectively.

Share-based Payment Arrangement, Performance Shares, Activity

A summary of performance share unit activity is as follows:

	Performance Share Units (1)	Weighted Average Grant Date Fair Value (2)
Outstanding, January 1, 2023	967,846	$	102.58
Granted	769,359	79.11
Released (3)	(12,284)	78.32
Forfeited	(140,727)	90.90
Outstanding, September 30, 2023	1,584,194	$	92.16

______________

(1)The performance share units listed above assumes attainment of maximum payout rates as set forth in the performance criteria. Applying actual or expected payout rates, the number of outstanding performance share units as of September 30, 2023 was 790,238.

(2)The weighted average grant date fair value of the performance share units granted during the nine months ended September 30, 2022 was $89.43.

(3)The fair value of performance share units vested and converted to shares of the Company’s common stock was $1.0 million and $27.2 million for the nine months ended September 30, 2023 and 2022, respectively.

Schedule of Share-Based Compensation, Employee Stock Purchase Plan, Activity

The fair value of ESPP shares is based on the assumptions in the following table:

	Three Months Ended September 30,		Nine Months Ended September 30,
	2023	2022	2023	2022
ESPP Shares
Risk-free interest rates	(1)	(1)	4.68%	1.49% - 2.73%
Expected term (in years)	(1)	(1)	1.25	0.5 - 2
Expected volatility	(1)	(1)	67.30%	50.94% - 60.34%
Dividend yield	(1)	(1)	—%	—%