Stock Based Compensation

3 Months Ended

Mar. 31, 2024

Note 10—Stock Based Compensation

Stock options, SARs, PSUs and RSUs

The amount of stock-based compensation expense recognized in our Condensed Consolidated Statements of Comprehensive Income for the three months ended March 31, 2024 and 2023 was as follows (in millions):


	Three Months Ended March 31,
Condensed Consolidated Statements of Comprehensive Income Classification	2024		2023
Cost of software-enabled services	$	15.4	$	15.5
Cost of license, maintenance and other related		1.6		1.8
Total cost of revenues		17.0		17.3
Selling and marketing		7.7		7.9
Research and development		6.2		5.4
General and administrative		14.2		11.3
Total operating expenses		28.1		24.6
Total stock-based compensation expense	$	45.1	$	41.9

The stock-based compensation expense related to performance awards is adjusted for changes in our assessment of the performance target level that is probable of being achieved and the number of performance-based equity awards expected to vest. In December 2021, we granted performance-based stock options (“PSOs”) for which the 3-year performance period ends in December

2024. If the threshold level of performance is not achieved for these PSOs, $42.7 million of previously recorded stock-based compensation expense will be reversed.

The following table summarizes stock option and stock appreciation rights (“SARs”) activity, as well as performance stock units (“PSUs”) and restricted stock units (“RSUs”) activity, for the three months ended March 31, 2024 (shares in millions):


	Stock Options and SARs			PSUs and RSUs
Outstanding at December 31, 2023		38.8			3.5
Granted		1.8			3.4
Cancelled/forfeited		(0.5	)		(0.8	)
Exercised		(1.3	)		—
Vested		—			(0.3	)
Outstanding at March 31, 2024		38.8			5.8