v3.25.4
Stockholders’ Equity and Share-Based Compensation (Tables)
 12 Months Ended
Dec. 31, 2025
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Stock Options Outstanding and Exercisable

The following table shows stock options that were outstanding and exercisable as of December 31, 2025 and the related weighted average exercise price, weighted average remaining contractual term and aggregate intrinsic value:

 

Stock Options
(In thousands)

 

 

Weighted
Average Exercise Price

 

Weighted
Average Remaining Contractual Term (years)

 

Aggregate Intrinsic Value (1) (In thousands)

 

Outstanding as of December 31, 2024

 

149

 

 

$

139.17

 

 

 

 

 

Granted

 

—

 

 

$

—

 

 

 

 

 

Exercised

 

(4

)

 

$

135.86

 

 

 

 

 

Forfeited or expired

 

(11

)

 

$

157.04

 

 

 

 

 

Outstanding as of December 31, 2025

 

134

 

 

$

137.77

 

3.85 years

 

$

1,343

 

Exercisable as of December 31, 2025

 

90

 

 

$

128.40

 

3.37 years

 

$

1,343

 

Expected to vest as of December 31, 2025

 

44

 

 

$

157.25

 

4.84 years

 

$

—

 
(1)
The aggregate intrinsic value is calculated as the difference between the closing market price of $118.99 per common share as of December 31, 2025 and the exercise price of the stock options. It excludes the effect of stock options that have a zero or negative intrinsic value.
Amended and Restated 2010 Incentive Plan  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Share-Based Compensation Expense Recorded In Operating Income

The table below summarizes share-based compensation expense recorded in operating income for the periods indicated (in thousands):

 

Year Ended December 31,

 

 

2025

 

 

2024

 

 

2023

 

Selling, general and administrative

$

22,629

 

 

$

19,885

 

 

$

21,963

 

Research and development and engineering

 

3,988

 

 

 

2,346

 

 

 

2,031

 

Cost of revenue

 

2,877

 

 

 

1,076

 

 

 

1,594

 

Restructuring, acquisition and related costs

 

44

 

 

 

—

 

 

 

—

 

Total share-based compensation expense

$

29,538

 

 

$

23,307

 

 

$

25,588

 
Restricted Stock Units and Deferred Stock Units Issued and Outstanding

The table below summarizes activities during the year ended December 31, 2025 relating to restricted and deferred stock units issued and outstanding under the Amended and Restated 2010 Incentive Plan:

 

Restricted and Deferred
Stock Units
(In thousands)

 

 

Weighted
Average Grant
Date Fair Value

 

 

Weighted Average
Remaining Vesting
Period (In years)

 

Aggregate Intrinsic
Value (1)
(In thousands)

 

Unvested at December 31, 2024

 

198

 

 

$

154.43

 

 

 

 

 

 

Granted

 

336

 

 

$

128.30

 

 

 

 

 

 

Vested

 

(94

)

 

$

147.47

 

 

 

 

 

 

Forfeited

 

(50

)

 

$

142.76

 

 

 

 

 

 

Unvested at December 31, 2025

 

390

 

 

$

135.09

 

 

1.08 years

 

$

46,354

 

Expected to vest as of December 31, 2025

 

360

 

 

$

136.01

 

 

1.08 years

 

$

42,784

 
The aggregate intrinsic value is calculated based on the fair value of $118.99 per common share as of December 31, 2025 due to the fact that the restricted and deferred stock units carry a $0 purchase price.
Performance-Based Restricted Stock Units Issued and Outstanding

The table below summarizes activities during the year ended December 31, 2025 relating to performance-based restricted stock units issued and outstanding under the Company’s Amended and Restated 2010 Incentive Plan:

 

Performance
Stock Units (2)
(In thousands)

 

 

Weighted
Average Grant
Date Fair Value

 

 

Weighted Average
Remaining Vesting
Period (In years)

 

Aggregate
Intrinsic
Value (3)
(In thousands)

 

Unvested at December 31, 2024

 

227

 

 

$

165.13

 

 

 

 

 

 

Granted

 

157

 

 

$

133.11

 

 

 

 

 

 

Performance adjustments(1)

 

(8

)

 

$

143.51

 

 

 

 

 

 

Vested

 

(53

)

 

$

141.33

 

 

 

 

 

 

Forfeited

 

(20

)

 

$

167.65

 

 

 

 

 

 

Unvested at December 31, 2025

 

303

 

 

$

153.13

 

 

1.54 years

 

$

36,092

 

Expected to vest as of December 31, 2025

 

217

 

 

$

148.98

 

 

1.54 years

 

$

25,844

 
(1)
The amount shown represents performance adjustments related to the performance-based awards vested during the year ended December 31, 2025.
(2)
The unvested PSUs are shown in this table at target payout. The number of shares vested reflects the number of shares earned and issued during the year. As of December 31, 2025, the maximum number of PSUs available to be earned was approximately 593 thousand.
(3)
The aggregate intrinsic value is calculated based on the fair value of $118.99 per common share as of December 31, 2025 due to the fact that the performance stock units carry a $0 purchase price.
Schedule of Share Based Payment Award Performance Stock Awards Valuation Assumptions

The grant-date fair value of the hybrid PSUs granted during the year ended December 31, 2025 was estimated using the Monte-Carlo valuation model with the following assumptions:

 

Year Ended

 

 

December 31, 2025

 

Grant-date stock price

$

142.80

 

Expected volatility

 

36.94

%

Risk-free interest rate

 

4.18

%

Expected annual dividend yield

 

—

 

Weighted average fair value

$

160.93