Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2013

Stock-Based Compensation

Summary of the Black-Scholes inputs used in calculating the fair value and incremental expense to be recognized in connection with the equity award modification for stock options and SARs

The following table summarizes the Black-Scholes inputs used in calculating the fair value and incremental expense to be recognized in connection with the equity award modification for stock options and SARs during the three months ended June 30, 2013:

Stock Options & SARs	Pre-Modification	Post-Modification
Market price of Advent stock	$26.10	$26.10
Exercise price	$8.28 - $32.85	$7.84 - $23.85
Risk-free interest rate	0.04% - 1.49%	0.04% - 1.23%
Volatility	31.33% - 37.45%	31.33% - 37.40%
Expected life (in years)	0.26 - 6.40	0.26 - 5.38
Expected dividends	None	None

Schedule of financial impact of the equity award modification

The following table sets forth the financial impact of the equity award modification that occurred during the three months ended June 30, 2013 (in millions):

				Stock-Based
		Total		Compensation		Unamortized
		Incremental		Expense		Stock-Based
	Cash	Stock-Based		Recognized During the		Compensation
	or	Compensation		Three Months Ended		Expense as of
	Non-Cash	Expense		June 30, 2013		June 30, 2013
Modification of options and SARs	Non-cash	$	25.1	$	16.1	$	9.0
Modification of options and SARs	Cash	5.4		5.4		—
Modification of RSUs	Cash	10.7		0.4		10.3
Total excluding estimated forfeitures		$	41.2	$	21.9	$	19.3
Total including estimated forfeitures		$	37.6	$	21.9	$	15.7

Schedule of stock-based compensation

Stock-based compensation expense related to stock options, stock appreciation rights (“SARs”), employee stock purchase plan (“ESPP”) shares, and restricted stock units (“RSUs”) was recognized in the Company’s condensed consolidated statement of operations, including the impact of the equity award modification, for the periods presented as follows (in thousands):

	Three Months Ended June 30						Six Months Ended June 30
	2013			2012			2013			2012
Statement of operations classification
Cost of recurring revenues	$	1,306		$	610		$	1,794		$	1,195
Cost of non-recurring revenues	1,730			264			2,112			595
Total cost of revenues	3,036			874			3,906			1,790
Sales and marketing	6,523			1,729			8,046			3,386
Product development	3,532			1,438			4,858			2,898
General and administrative	14,098			1,043			15,396			1,899
Total operating expenses	24,153			4,210			28,300			8,183
Total stock-based employee compensation expense	27,189			5,084			32,206			9,973
Tax effect on stock-based employee compensation expense	(11,116		)	(2,041		)	(13,162		)	(3,829		)
Effect on net income from continuing operations, net of tax	$	16,073		$	3,043		$	19,044		$	6,144

Schedule of assumptions used in determining the fair value of stock-based awards

	Three Months Ended June 30		Six Months Ended June 30
	2013	2012	2013	2012
Stock Options & SARs
Risk-free interest rate	0.5% - 1.0%	0.6% - 1.0%	0.5% - 1.0%	0.6% - 1.2%
Volatility	33.4% - 38.5%	38.4% - 39.7%	33.4% - 38.8%	38.4% - 42.6%
Expected life (in years)	3.94 - 5.06	4.02 - 5.14	3.94 - 5.06	4.02 - 5.14
Expected dividends	None	None	None	None
Employee Stock Purchase Plan
Risk-free interest rate	0.1%	0.1%	0.1%	0.1%
Volatility	31.8%	31.0%	31.8%	31.0%
Expected life (in years)	0.5	0.5	0.5	0.5
Expected dividends	None	None	None	None

Schedule of Stock option and SAR activity

					Weighted
			Weighted		Average	Aggregate
	Number of		Average		Remaining	Intrinsic
	Shares		Exercise		Contractual Life	Value
	(in thousands)		Price		(in years)	(in thousands)
Outstanding at December 31, 2012	7,668		$	19.82
Options & SARs granted	1,152		$	30.49
Options & SARs exercised	(2,050	)	$	15.71
Options & SARs canceled	(220	)	$	25.51
Outstanding at June 30, 2013	6,550		$	22.79	0.03	$	80,371
Exercisable at June 30, 2013	3,215		$	18.74	0.03	$	52,460

Schedule of weighted average grant date fair value and intrinsic value of stock options and SARs and cash received from options exercised

The weighted average grant date fair value of options and SARs granted, total intrinsic value of options and SARs exercised and cash received from options exercised during the periods presented were as follows (in thousands, except weighted average grant date fair value):

	Six Months Ended June 30
	2013		2012
Options and SARs
Weighted average grant date fair value	$	10.45	$	9.38
Total intrinsic value of awards exercised	$	26,518	$	6,578
Options
Cash received from exercises	$	16,212	$	3,269

Summary of RSU Activity

			Weighted
	Number of		Average
	Shares		Grant Date
	(in thousands)		Fair Value
Outstanding and unvested at December 31, 2012	1,273		$	18.16
RSUs granted	360		$	30.56
RSUs vested	(323	)	$	22.35
RSUs canceled	(100	)	$	24.72
Outstanding and unvested at June 30, 2013	1,210		$	20.19