Annual report pursuant to Section 13 and 15(d)

Summary of Significant Accounting Policies (Tables)

v3.19.3.a.u2
Summary of Significant Accounting Policies (Tables)
12 Months Ended
Dec. 31, 2019
Accounting Policies [Abstract]  
Calculation of Basic and Diluted Net Income Per Share
The following table reconciles share amounts utilized to calculate basic and diluted net income per share (in thousands, except per share data):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Net income
$
59,229

 
$
168,642

 
$
150,603

 
 
 
 
 
 
Basic - weighted average common shares
17,260

 
17,952

 
17,099

Dilutive effect of common stock equivalents
535

 
810

 
1,288

Diluted - weighted average common shares
17,795

 
18,762

 
18,387

 
 
 
 
 
 
Earnings per share:
 
 
 
 
 
Basic
$
3.43

 
$
9.39

 
$
8.81

Diluted
$
3.33

 
$
8.99

 
$
8.19


Anti-Dilutive Securities Excluded from Computation of Earnings Per Share
The calculation of dilutive shares excludes the effect of the following options that are considered anti-dilutive (in thousands):
 
Year Ended December 31,
 
2019
 
2018
 
2017
Anti-dilutive stock options   
1,940

 
285

 
22


Schedule of Compensation Cost for Share-based Payment Arrangements, Allocation of Share-based Compensation Costs by Plan
The following table sets forth the stock-based compensation expense that we recognized for the periods indicated (in thousands):
 
2019
 
2018
 
2017
Stock-based compensation expense relating to:
 
 
 
 
 
Stock options
$
40,936

 
$
34,773

 
$
39,781

Employee stock purchases
2,004

 
1,576

 
1,048

Total stock-based compensation expense
$
42,940

 
$
36,349

 
$
40,829

Stock-based compensation expense relating to:
 
 
 
 
 
Cost of revenues
$
3,083

 
$
2,955

 
$
1,773

Sales and marketing
9,716

 
6,892

 
7,289

Research and development
10,521

 
8,120

 
9,035

General and administrative
19,620

 
18,382

 
22,732

Total stock-based compensation expense
$
42,940

 
$
36,349

 
$
40,829


Weighted Average Assumptions Used in Black-Scholes Valuation Model

The following are the weighted average assumptions used in the Black-Scholes-Merton option valuation model for the periods indicated:
 
2019
 
2018
 
2017
Risk-free interest rate
1.9
%
 
2.6
%
 
1.6
%
Expected volatility
73.6
%
 
50.2
%
 
47.3
%
Expected life (in years)
3.3

 
3.3

 
3.4