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STOCK PLANS
 12 Months Ended
Dec. 31, 2022
Share-Based Payment Arrangement [Abstract]  
STOCK PLANS STOCK PLANS
Stock Incentive Plans
The Company’s amended and restated 2011 stock incentive plan, or 2011 Plan, was originally adopted by its board of directors and approved by its stockholders in June 2011 and was amended in June 2014, June 2016, June 2019 and June 2021. The June 2021 amendment and approval by the Company’s stockholders increased the number of shares of common stock authorized for issuance as equity awards under the plan by 1,500,000 shares.
The 2011 Plan allows the granting of incentive stock options, non-statutory stock options, restricted stock awards and other stock-based awards. In April 2014, the Company’s board of directors also adopted the 2014 Inducement Plan.
The Company’s stock option grants have an exercise price equal to the closing price of the Company’s common stock on the date of grant, generally have a 10-year contractual term and vest in increments (typically over four years from the date of grant, although the Company may occasionally grant options with different vesting terms, including grants made to its non-employee directors). The Company also grants RSUs to employees and non-employee directors generally vesting in increments over four years from the date of grant, except for such grants made to non-employee directors. The Company uses authorized but unissued shares of its common stock to satisfy its obligations under these plans.
Employee Stock Purchase Plan
The Company’s Amended and Restated Employee Stock Purchase Plan, or ESPP, was originally adopted by its board of directors in April 2014, approved by the Company’s stockholders in June 2014 and amended and restated in June 2022. The June 2022 amendment and restatement increased the number of shares of common stock that may be sold under the plan by an additional 500,000 shares from the originally provided 500,000 shares. The purpose of the ESPP is to provide a vehicle for
eligible employees to purchase shares of the Company’s common stock at a discounted price and to help retain and motivate current employees as well as attract new talent. Under the ESPP, up to 1,000,000 shares of common stock may be sold. The ESPP expires in June 2032. The ESPP is intended to qualify as an “employee stock purchase plan” within the meaning of Section 423 of the Internal Revenue Code, or IRC. The maximum fair market value of stock which can be purchased by a participant in a calendar year is $25,000. Six-month offering periods begin on January 1 and July 1 of each year. During an offering period, eligible employees have the opportunity to elect to purchase shares of the Company’s common stock on the purchase dates of June 30 and December 31 (or the last trading day of an offering period). The per share purchase price is equal to 85% of the fair market value of the Company’s common stock on either the offering date or the purchase date, whichever is lesser. During the year ended December 31, 2022, 71,301 shares were purchased and issued through the ESPP.
The following tables contain information about the Company’s stock incentive plans at December 31, 2022:
Stock Incentive PlanAwards Reserved For IssuanceAwards
Issued		Awards Available For Grant
2011 Plan14,431,701 13,858,585 573,116 
2014 Inducement Plan175,000 36,076 138,924 
Total14,606,701 13,894,661 712,040 
Employee Stock Purchase PlanShares Reserved
For Purchase		Shares
Purchased		Shares Available
For Purchase
ESPP1,000,000 480,350 519,650 
Stock-Based Compensation
Compensation expense for stock options and RSUs is based on the estimated grant date fair value of an award recognized over the requisite service period on a straight-line expense attribution method. Compensation expense for ESPP share options is based on the estimated grant date fair value of the ESPP shares and the grant date number of shares that can be purchased, which is recognized as expense on a straight-line expense attribution method over the length of an offering period.
The Company recognized stock-based compensation expense in its consolidated statements of operations for the years ended December 31, 2022, 2021 and 2020 as follows (in thousands):
 Year Ended December 31,
 202220212020
Cost of goods sold$5,967 $5,891 $5,589 
Research and development6,594 5,465 5,211 
Selling, general and administrative35,531 30,890 29,120 
Total$48,092 $42,246 $39,920 
Stock-based compensation from:
Stock options$26,800 $25,980 $26,749 
RSUs20,310 15,335 12,266 
ESPP982 931 905 
Total$48,092 $42,246 $39,920 
Related income tax benefit$10,219 $8,989 $8,578 
The following table summarizes the Company’s stock option activity and related information for the period from December 31, 2019 to December 31, 2022:
Number of
Stock Options		Weighted
Average
Exercise Price (Per Share)		Weighted Average
Remaining
Contractual
Term (Years)		Aggregate
Intrinsic Value
(in Thousands)
Outstanding at December 31, 20196,706,378 $42.80 7.05$50,652 
Granted1,502,803 47.50   
Exercised(1,428,111)31.67 $34,227 
Forfeited(426,925)42.08   
Expired(119,027)71.71   
Outstanding at December 31, 20206,235,118 45.98 6.97$102,955 
Granted890,277 60.27   
Exercised(732,117)32.56 $23,967 
Forfeited(278,233)46.46    
Expired(64,505)80.31    
Outstanding at December 31, 20216,050,540 49.32 6.59$81,407 
Granted1,061,630 59.99 
Exercised(689,464)35.37 $23,983 
Forfeited(113,506)54.97 
Expired(36,206)79.90 
Outstanding at December 31, 20226,272,994 $52.38 6.28$2,011 
Exercisable at December 31, 20224,224,921 $50.51 5.17$1,997 
Vested and expected to vest as of December 31, 20226,272,994 $52.38 6.28$2,011 
As of December 31, 2022, $45.4 million of total unrecognized compensation cost related to unvested stock options is expected to be recognized over a weighted average period of 2.6 years. The Company’s stock options have a maximum expiration date of ten years from the date of grant.
The weighted average fair value of stock options granted for the years ended December 31, 2022, 2021 and 2020 was $25.60, $26.74 and $22.40 per share, respectively. The fair values of stock options granted were estimated using the Black-Scholes model with the following weighted average assumptions:
 Year Ended December 31,
Black-Scholes Weighted Average Assumption202220212020
Expected dividend yieldNoneNoneNone
Risk-free interest rate
1.37% - 4.17%
0.43% - 1.21%
0.22% - 1.60%
Expected volatility45.1%49.1%53.5%
Expected term of options4.92 years5.36 years5.36 years
The following table summarizes the Company’s RSU activity and related information for the period from December 31, 2019 to December 31, 2022:
 Number of
Restricted Stock Units		Weighted
Average Grant
Date Fair Value (Per Share)		Aggregate
Intrinsic Value
(in Thousands)
Unvested at December 31, 2019631,141 $41.87 $28,591 
Granted665,476 48.70 
Vested(239,085)41.91 
Forfeited(100,079)44.43 
Unvested at December 31, 2020957,453 46.34 $57,294 
Granted446,450 60.81 
Vested(309,779)45.16 
Forfeited(138,847)50.67 
Unvested at December 31, 2021955,277 52.85 $57,479 
Granted621,149 60.11 
Vested(331,196)50.25 
Forfeited(95,768)56.00 
Unvested and expected to vest as of December 31, 20221,149,462 $57.26 $44,381 
As of December 31, 2022, $52.7 million of total unrecognized compensation cost related to unvested RSUs is expected to be recognized over a weighted average period of 2.9 years. The Company’s RSUs have a maximum vest date of four years from the date of grant. The fair values of RSUs awarded are equal to the closing price of the Company’s common stock on the date of grant.
The fair values of the ESPP share options granted were estimated using the Black-Scholes model with the following weighted average assumptions:
Year Ended December 31,
Black-Scholes Weighted Average Assumption202220212020
ESPP share option fair value
$15.26 - $15.86
$15.16 - $15.23
$11.02 - $17.54
Expected dividend yieldNoneNoneNone
Risk-free interest rate
0.22% - 2.52%
0.50% - 0.90%
0.14% - 1.57%
Expected volatility39.5%37.0%44.9%
Expected term of ESPP share options6 months6 months6 months