Stock-Based Compensation (Tables)

9 Months Ended

Sep. 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

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 nine months ended September 30, 2013 (in millions):

				Stock-Based
		Total		Compensation		Unamortized
		Incremental		Expense		Stock-Based
	Cash	Stock-Based		Recognized During the		Compensation
	or	Compensation		Nine Months Ended		Expense as of
	Non-Cash	Expense		September 30, 2013		September 30, 2013
Modification of options and SARs	Non-cash	$	25.1	$	17.0	$	8.1
Modification of options and SARs	Cash	5.4		5.4		—
Modification of RSUs	Cash	10.7		2.2		8.5
Total excluding estimated forfeitures		$	41.2	$	24.6	$	16.6
Total including estimated forfeitures		$	38.1	$	24.4	$	13.7

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 September 30						Nine Months Ended September 30
	2013			2012			2013			2012
Statement of operations classification
Cost of recurring revenues	$	853		$	615		$	2,647		$	1,810
Cost of non-recurring revenues	578			331			2,690			926
Total cost of revenues	1,431			946			5,337			2,736
Sales and marketing	2,874			1,877			10,920			5,263
Product development	2,083			1,440			6,941			4,338
General and administrative	2,003			1,108			17,399			3,007
Total operating expenses	6,960			4,425			35,260			12,608
Total stock-based employee compensation expense	8,391			5,371			40,597			15,344
Tax effect on stock-based employee compensation expense	(2,938		)	(2,154		)	(16,100		)	(5,983		)
Effect on net income from continuing operations, net of tax	$	5,453		$	3,217		$	24,497		$	9,361

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

	Three Months Ended September 30		Nine Months Ended September 30
	2013	2012	2013	2012
Stock Options & SARs
Risk-free interest rate	1.5% - 1.8%	0.7% - 0.8%	0.5% - 1.8%	0.6% - 1.2%
Volatility	35.1% - 38.3%	39.6% - 42.9%	33.4% - 38.8%	38.4% - 42.9%
Expected life (in years)	5.06	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%
Volatility			31.8%	31.0%
Expected life (in years)			0.5	0.5
Expected dividends			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 (1)		(in years)	(in thousands)
Outstanding at December 31, 2012	7,668		$	10.82
Options & SARs granted	1,190		$	21.45
Options & SARs exercised	(2,494	)	$	6.02
Options & SARs canceled	(337	)	$	13.94
Outstanding at September 30, 2013	6,027		$	14.85	6.95	$	101,850
Exercisable at September 30, 2013	2,985		$	11.68	4.94	$	59,911

(1) The weighted average exercise prices have been adjusted to reflect the impact of the equity award modification.

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):

	Nine Months Ended September 30
	2013		2012
Options and SARs
Weighted average grant date fair value	$	10.44	$	9.39
Total intrinsic value of awards exercised	$	34,259	$	8,729
Options
Cash received from exercises	$	18,382	$	4,211

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	380		$	30.49
RSUs vested	(341	)	$	22.30
RSUs canceled	(137	)	$	25.15
Outstanding and unvested at September 30, 2013	1,175		$	20.13