Stock-Based Compensation Expense

3 Months Ended

Mar. 31, 2020

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-Based Compensation Expense

NOTE 11 – STOCK-BASED COMPENSATION EXPENSE

The effect of recording stock-based compensation expense for the three months ended March 31, 2020 and 2019 is as follows (in thousands):

	Three Months Ended
	March 31, 2020			March 31, 2019
Research, development and other related costs	$	3,036		$	3,603
Selling, general and administrative		4,951			4,020
Total stock-based compensation expense		7,987			7,623
Tax effect on stock-based compensation expense		(1,000	)		(1,315	)
Net effect on net income (loss)	$	6,987		$	6,308

Stock-based compensation expense categorized by various equity components for the three months ended March 31, 2020 and 2019 is summarized in the table below (in thousands):

	Three Months Ended
	March 31, 2020		March 31, 2019
Restricted stock awards and units	$	7,294	$	6,934
Employee stock purchase plan		690		621
Employee stock options		3		68
Total stock-based compensation expense	$	7,987	$	7,623

There were no options granted in the three months ended March 31, 2020 and 2019.

ESPP grants occur in February and August. The following assumptions were used to value the ESPP shares for these grants:

	February 2020			February 2019
Expected life (years)		2.0			2.0
Risk-free interest rate		1.4	%		2.5	%
Dividend yield		4.0	%		5.4	%
Expected volatility		45.8	%		53.4	%