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Stock-based Compensation Expense and Share Repurchase Programs
 3 Months Ended
Mar. 31, 2020
Share-based Payment Arrangement [Abstract]  
Stock-based Compensation Expense and Share Repurchase Programs
Stock-based Compensation Expense and Share Repurchase Programs
Stock-based compensation expense
During the three months ended March 31, 2020 and 2019, the Company recognized the following stock-based compensation expense:
 
Three Months Ended March 31,
 
2020
 
2019
 
(in thousands)
Stock-based compensation expense by type of award:
 
 
 
Restricted stock and restricted stock units (including PSUs)
$
97,149

 
$
63,510

Stock options
17,266

 
28,156

ESPP share issuances
2,485

 
2,577

Stock-based compensation expense related to inventories
(1,194
)
 
(452
)
Total stock-based compensation expense included in costs and expenses
$
115,706

 
$
93,791

 
 
 


Stock-based compensation expense by line item:
 
 


Cost of sales
$
1,361

 
$
1,338

Research and development expenses
72,687

 
59,715

Sales, general and administrative expenses
41,658

 
32,738

Total stock-based compensation expense included in costs and expenses
115,706

 
93,791

Income tax effect
(64,246
)
 
(39,524
)
Total stock-based compensation expense, net of tax
$
51,460

 
$
54,267


The following table sets forth the Company’s unrecognized stock-based compensation expense as of March 31, 2020, by type of award and the weighted-average period over which that expense is expected to be recognized:
 
As of March 31, 2020
 
Unrecognized Expense
 
Weighted-average
Recognition Period
 
(in thousands)
 
(in years)
Type of award:
 
 
 
Restricted stock and restricted stock units (including PSUs)
$
550,095

 
2.27
Stock options
$
109,086

 
2.33
ESPP share issuances
$
2,238

 
0.40

The following table summarizes information about stock options outstanding and exercisable as of March 31, 2020:
 
 
Options Outstanding
 
Options Exercisable
Range of Exercise Prices
 
Number
Outstanding
 
Weighted-average
Remaining
Contractual Life
 
Weighted-average
Exercise Price
 
Number
Exercisable
 
Weighted-average
Exercise Price
 
 
(in thousands)
 
(in years)
 
(per share)
 
(in thousands)
 
(per share)
$29.07–$40.00
 
81

 
1.47
 
$
37.70

 
81

 
$
37.70

$40.01–$60.00
 
224

 
2.41
 
$
49.15

 
224

 
$
49.15

$60.01–$80.00
 
116

 
4.03
 
$
74.89

 
112

 
$
74.89

$80.01–$100.00
 
1,393

 
5.99
 
$
89.44

 
1,085

 
$
90.01

$100.01–$120.00
 
182

 
4.88
 
$
109.25

 
180

 
$
109.18

$120.01–$140.00
 
402

 
5.44
 
$
129.59

 
400

 
$
129.61

$140.01–$160.00
 
954

 
7.86
 
$
155.50

 
436

 
$
155.41

$160.01–$180.00
 
669

 
8.24
 
$
168.21

 
245

 
$
165.11

$180.01–$189.38
 
1,498

 
8.65
 
$
185.44

 
440

 
$
185.31

Total
 
5,519

 
6.98
 
$
137.34

 
3,203

 
$
119.05


Share repurchase programs
During 2018, the Company’s Board of Directors approved a share repurchase program (the “2018 Share Repurchase Program”), pursuant to which the Company repurchased $500.0 million of its common stock in 2018 and 2019. During the three months ended March 31, 2019, the Company repurchased 537,018 of its common stock under the share repurchase program for an aggregate of $98.0 million including commissions and fees. As of June 30, 2019, the Company had repurchased the entire $500.0 million it was authorized to repurchase of its common stock under the 2018 Share Repurchase Program.
During 2019, the Company’s Board of Directors approved a new share repurchase program (the “2019 Share Repurchase Program”), pursuant to which the Company is authorized to repurchase up to $500.0 million of its common stock between August 1, 2019 and December 31, 2020. The Company expects to fund further repurchases of its common stock through a combination of cash on hand and cash generated by operations. During the three months ended March 31, 2020, the Company repurchased 1,403,868 shares of its common stock under the 2019 Share Repurchase Program for an aggregate of $300.0 million including commissions and fees. As of March 31, 2020, there was a total of $164.0 million remaining for repurchases under the 2019 Share Repurchase Program.
Under the 2019 Share Repurchase Programs, the Company is authorized to purchase shares from time to time through open market or privately negotiated transactions. Such purchases are made pursuant to Rule 10b5-1 plans or other means as determined by the Company’s management and in accordance with the requirements of the SEC.