v3.19.3.a.u2
Equity Incentive Plans (Tables)
12 Months Ended
Dec. 31, 2019
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of Stock Option and RSU Activity

The following table summarizes our stock option and RSU activity:

 

 

 

Stock Options

 

 

RSUs

 

 

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

 

 

Weighted-

 

 

 

 

 

 

 

Weighted-

 

 

Average

 

Aggregate

 

 

 

 

 

 

Average

 

 

 

Number of

 

 

Average

 

 

Remaining

 

Intrinsic

 

 

Number

 

 

Grant

 

 

 

Options

 

 

Exercise

 

 

Contractual

 

Value

 

 

of RSUs

 

 

Date Fair

 

 

 

(in thousands)

 

 

Price

 

 

Life (years)

 

(in billions)

 

 

(in thousands)

 

 

Value

 

Balance,

   December 31, 2018

 

 

31,208

 

 

$

273.40

 

 

 

 

 

 

 

 

 

4,659

 

 

$

294.63

 

Granted

 

 

1,473

 

 

$

265.26

 

 

 

 

 

 

 

 

 

3,752

 

 

$

282.74

 

Exercised or released

 

 

(1,441

)

 

$

106.68

 

 

 

 

 

 

 

 

 

(1,949

)

 

$

277.13

 

Cancelled

 

 

(1,245

)

 

$

310.57

 

 

 

 

 

 

 

 

 

(1,656

)

 

$

295.05

 

Balance,

   December 31, 2019

 

 

29,995

 

 

$

279.49

 

 

6.89

 

$

4.17

 

 

 

4,806

 

 

$

291.06

 

Vested and

   expected to vest,

   December 31, 2019

 

 

15,860

 

 

$

228.29

 

 

6.05

 

$

3.02

 

 

 

4,804

 

 

$

291.05

 

Exercisable and vested,

   December 31, 2019

 

 

7,025

 

 

$

94.07

 

 

3.39

 

$

2.28

 

 

 

 

 

 

 

 

 

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

We use the fair value method in recognizing stock-based compensation expense. Under the fair value method, we estimate the fair value of each stock option award with service or service and performance conditions and the ESPP on the grant date generally using the Black-Scholes option pricing model and the weighted-average assumptions in the following table:

 

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

Risk-free interest rate:

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

2.4

%

 

 

2.5

%

 

 

1.8

%

ESPP

 

 

2.2

%

 

 

2.0

%

 

 

1.1

%

Expected term (in years):

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

4.5

 

 

 

4.7

 

 

 

5.1

 

ESPP

 

 

0.5

 

 

 

0.5

 

 

 

0.5

 

Expected volatility:

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

48

%

 

 

42

%

 

 

42

%

ESPP

 

 

53

%

 

 

43

%

 

 

35

%

Dividend yield:

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

ESPP

 

 

0.0

%

 

 

0.0

%

 

 

0.0

%

Grant date fair value per share:

 

 

 

 

 

 

 

 

 

 

 

 

Stock options

 

$

111.59

 

 

$

121.92

 

 

$

122.25

 

ESPP

 

$

78.25

 

 

$

84.37

 

 

$

75.05

 

Summary of Operational Milestone Based on Revenue or Adjusted EBITDA

Total Annualized Revenue
(in billions)

 

Annualized Adjusted EBITDA

(in billions)

$20.0

 

$1.5

$35.0

 

$3.0

$55.0

 

$4.5

$75.0

 

$6.0

$100.0

 

$8.0

$125.0

 

$10.0

$150.0

 

$12.0

$ 175.0

 

$14.0

 

Summary of Stock-Based Compensation Expense

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

 

 

 

Year Ended December 31,

 

 

 

2019

 

 

2018

 

 

2017

 

Cost of revenues

 

$

128

 

 

$

109

 

 

$

64

 

Research and development

 

 

285

 

 

 

261

 

 

 

218

 

Selling, general and administrative

 

 

482

 

 

 

375

 

 

 

185

 

Restructuring and other

 

 

3

 

 

 

4

 

 

 

 

Total

 

$

898

 

 

$

749

 

 

$

467