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Stock-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of Stock Option Activity
The following table summarizes the Company’s stock option activity for the year ended December 31, 2014:
 
Shares
(in thousands)
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term
(in years)
 
Aggregate
Intrinsic Value
(in thousands)
Outstanding as of December 31, 2013
6,138

 
$
15.65

 
 
 
 
Granted
2,115

 
39.49

 
 
 
 
Exercised
(1,232
)
 
13.74

 
 
 
 
Forfeited or expired
(209
)
 
20.12

 
 
 
 
Outstanding as of December 31, 2014
6,812

 
$
23.26

 
7.28
 
$
123,252

Exercisable as of December 31, 2014
2,208

 
$
13.38

 
5.23
 
$
61,711

Options vested or expected to vest at 
 December 31, 2014 (1)
6,098

 
$
22.04

 
7.08
 
$
117,733

(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options.
Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted
The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions:
 
Year Ended December 31,
 
2014
 
2013
 
2012
Risk-free rate
2.6
%
 
2.0
%
 
2.0
%
Expected dividend yield
—
%
 
—
%
 
1.2
%
Expected volatility
41
%
 
42
%
 
44
%
Expected term (in years)
5.4

 
5.8

 
5.7
Nonvested Restricted Stock Shares Activity [Table Text Block]
The following table summarizes the Company's restricted stock activity for the year ended December 31, 2014:
 
Shares (in thousands)
 
Weighted-Average Exercise Price
 
Aggregate Intrinsic Value (in thousands)
Nonvested as of December 31, 2013
—

 
$
—

 
 
Granted
20

 
34.05

 
 
Vested
—

 
—

 
 
Forfeited or expired
—

 
—

 
 
Nonvested as of December 31, 2014
20

 
$
34.05

 
$
146
Stock-Based Compensation Expense
The following table details the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):
 
Year Ended December 31,
 
2014
 
2013
 
2012
Product cost of revenue
$
1,033

 
$
747

 
$
581

Service cost of revenue
171

 
177

 
161

Research, development, and engineering
3,832

 
2,585

 
2,149

Selling, general, and administrative
10,122

 
7,111

 
5,629

 
$
15,158

 
$
10,620

 
$
8,520