XML 25 R15.htm IDEA: XBRL DOCUMENT v3.19.2
Stockholders' Equity
 6 Months Ended
Jun. 30, 2019
Share-based Payment Arrangement [Abstract]  
Stockholders' Equity
8.    Stockholders’ Equity
Stock Repurchase Program
In April 2019, our board of directors authorized a $1.0 billion stock repurchase program (the “Repurchase Program”). This authorization allows us to repurchase shares of our common stock opportunistically and will be funded from working capital. Repurchases may be made at management’s discretion from time to time on the open market, through privately negotiated transactions, transactions structured through investment banking institutions, block purchases, trading plans under Rule 10b5-1 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or a combination of the foregoing. The Repurchase Program, which expires in April 2022, does not obligate us to acquire any of our common stock, and may be suspended or discontinued by us at any time without prior notice. As of June 30, 2019, the remaining authorized amount for stock repurchases under this program was approximately $900.0 million.
A summary of the stock repurchase activity under the Repurchase Program for the three and six months ended June 30, 2019 is as follows (in thousands, except per share amounts):
 
 
Three Months Ended
 
Six Months Ended
 
 
June 30, 2019
 
June 30, 2019
Aggregate purchase price
 
$
100,008

 
$
100,008

Shares repurchased
 
407

 
407

Average price paid per share
 
$
245.95

 
$
245.95


The aggregate purchase price of repurchased shares of our common stock is recorded as a reduction to retained earnings. All shares repurchased under the Repurchase Program have been retired.
Equity Award Plan Activities
2014 Employee Stock Purchase Plan
Effective January 1, 2019, our board of directors authorized an increase of 756,679 shares to shares available for issuance under our 2014 Employee Stock Purchase Plan (the “ESPP”). Pursuant to the ESPP, the 2019 share increase was determined based the lesser of 1% of the total shares of common stock outstanding on December 31, 2018, 2,500,000 shares, or such amount as determined by our board of directors. During the three months ended June 30, 2019, we issued 45,743 shares at a weighted-average purchase price of $190.31 per share, respectively, under the ESPP. As of June 30, 2019, there remained 3,244,374 shares available for issuance under the ESPP.
Stock Option Activities
The following table summarizes the option activity under our stock plans and related information (in thousands, except years and per share amounts):
 
 
Options Outstanding 
 
 
 
 
 
 
Number of
Shares
Underlying
Outstanding Options
 
Weighted-
Average
Exercise
Price per Share
 
Weighted-
Average
Remaining
Contractual
Term (Years) of
Stock Options
 
Aggregate
Intrinsic
Value
of Stock
Options
Outstanding
Balance—December 31, 2018
 
5,899

 
$
37.09

 
5.2
 
$
1,027,741

Options granted
 
76

 
226.53

 
 
 
 
Options exercised
 
(1,000
)
 
29.39

 
 
 
 
Options canceled
 
(14
)
 
32.22

 
 
 
 
Balance—June 30, 2019
 
4,961

 
$
41.57

 
4.8
 
$
1,081,820

Vested and exercisable—June 30, 2019
 
2,628

 
$
26.75

 
4.3
 
$
612,008


Restricted Stock Unit (RSU) Activities
A summary of the RSU activity under our 2014 equity incentive plan (“2014 Plan”) and related information are presented below (in thousands, except years and per share amounts):
 
 
Number of
Shares
 
Weighted-
Average Grant
Date Fair Value Per Share
 
Weighted-Average
Remaining
Contractual Term (in years)
 
Aggregate Intrinsic Value
Unvested balance—December 31, 2018
 
1,308

 
$
150.60

 
1.5
 
$
275,638

       RSUs granted
 
268

 
245.20

 
 
 
 
       RSUs vested
 
(266
)
 
114.91

 
 
 
 
       RSUs forfeited/canceled
 
(34
)
 
184.47

 
 
 
 
Unvested balance—June 30, 2019
 
1,276

 
$
176.99

 
1.7
 
$
331,178


Shares Available for Grant
The following table presents the stock activity and the total number of shares available for grant under the 2014 Plan as of June 30, 2019 (in thousands):
 
 
Number of Shares
Balance—December 31, 2018
 
15,386

Options granted
 
(76
)
RSUs granted
 
(268
)
Options canceled
 
14

RSUs forfeited
 
34

Shares traded for taxes
 
18

Balance—June 30, 2019
 
15,108


Stock-Based Compensation Expense
Total stock-based compensation expense related to options, restricted stock units, restricted stock, and employee stock purchase rights granted were allocated as follows (in thousands):
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
 
2019
 
2018
 
2019
 
2018
Cost of revenue
 
$
1,028

 
$
1,236

 
$
2,126

 
$
2,438

Research and development
 
12,568

 
11,745

 
25,699

 
22,690

Sales and marketing   
 
7,097

 
6,274

 
13,631

 
12,234

General and administrative
 
3,604

 
3,223

 
7,132

 
5,967

           Total stock-based compensation
 
$
24,297

 
$
22,478

 
$
48,588

 
$
43,329


As of June 30, 2019, unrecognized stock-based compensation expenses by award type and their expected weighted-average recognition periods are summarized in the following table (in thousands, except years).
 
 
June 30, 2019
 
 
Stock Option
 
RSU
 
ESPP
 
Restricted Stock
Unrecognized stock-based compensation expense
 
$
53,788

 
$
203,793

 
$
4,681

 
$
4,665

Weighted-average amortization period
 
3.6 years

 
3.5 years

 
0.9 years

 
3.2 years