v3.6.0.2
Equity Incentive Plans (Tables)
12 Months Ended
Dec. 31, 2016
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of Stock Option and RSU Activity Under Plan

The following table summarizes stock option and RSU activity under the 2010 Plan:

 

 

 

Outstanding Stock Options

 

 

Outstanding RSUs

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

 

Weighted-

 

 

Average

 

 

 

 

 

 

 

 

 

 

Average

 

 

 

 

 

 

 

 

Average

 

 

Remaining

 

 

*Aggregate

 

 

 

 

 

 

Grant

 

 

 

 

Number of

 

 

Exercise

 

 

Contractual

 

 

Intrinsic

 

 

Number

 

 

Date Fair

 

 

 

 

Options

 

 

Price

 

 

Life (Years)

 

 

Value

 

 

of RSUs

 

 

Value

 

 

Balance, December 31, 2015

 

 

20,015,180

 

 

$

46.14

 

 

 

 

 

 

 

 

 

 

 

2,439,674

 

 

$

219.90

 

 

Assumed through acquisition

 

 

1,304,104

 

 

 

283.35

 

 

 

 

 

 

 

 

 

 

 

382,611

 

 

 

185.04

 

 

Granted

 

 

853,960

 

 

 

211.10

 

 

 

 

 

 

 

 

 

 

 

2,797,973

 

 

 

202.59

 

 

Exercised

 

 

(8,735,830

)

 

 

12.84

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cancelled

 

 

(561,992

)

 

 

218.58

 

 

 

 

 

 

 

 

 

 

 

(519,908

)

 

 

215.07

 

 

Released

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(1,018,261

)

 

 

212.96

 

 

Balance, December 31, 2016

 

 

12,875,422

 

 

$

96.50

 

 

 

5.8

 

 

$

1.72

 

 

 

4,082,089

 

 

$

207.11

 

 

Vested and expected to vest,

   December 31, 2016

 

 

12,875,422

 

 

$

96.50

 

 

 

5.8

 

 

$

1.72

 

 

 

4,082,089

 

 

 

 

 

 

Exercisable and vested,

   December 31, 2016

 

 

7,817,124

 

 

$

77.70

 

 

 

5.2

 

 

$

1.19

 

 

 

 

 

 

 

 

 

*Aggregate intrinsic value in billions

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Schedule of Fair Value of Option Award and ESPP on Grant Date

We utilize the fair value method in recognizing stock-based compensation expense. Under the fair value method, we estimated the fair value of each option award and the ESPP on the grant date generally using the Black-Scholes option pricing model and the weighted-average assumptions noted in the following table.

 

 

 

Year Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Risk-free interest rate:

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

1.5

%

 

 

1.6

%

 

 

1.9

%

ESPP

 

 

0.6

%

 

 

0.3

%

 

 

0.1

%

Expected term (in years):

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

6.2

 

 

 

5.4

 

 

 

6.0

 

ESPP

 

 

0.5

 

 

 

0.5

 

 

 

0.5

 

Expected volatility:

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

47

%

 

 

48

%

 

 

55

%

ESPP

 

 

41

%

 

 

42

%

 

 

46

%

Dividend yield:

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

ESPP

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

 

Summary of Stock-Based Compensation Expense

The following table summarizes the stock-based compensation expense by line item in the consolidated statements of operations (in thousands):

 

 

 

Year Ended December 31,

 

 

 

2016

 

 

2015

 

 

2014

 

Cost of sales

 

$

30,400

 

 

$

19,244

 

 

$

17,454

 

Research and development

 

 

154,632

 

 

 

89,309

 

 

 

62,601

 

Selling, general and administrative

 

 

149,193

 

 

 

89,446

 

 

 

76,441

 

Total

 

$

334,225

 

 

$

197,999

 

 

$

156,496