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Stock-Based Compensation (Tables)
9 Months Ended
Sep. 30, 2014
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary and Allocation of Stock-Based Compensation Expense

The following table summarizes stock-based compensation expense recorded for the periods presented and its allocation within the condensed consolidated statements of operations (in thousands):

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

September 30,

2014

 

 

September 30,

2013

 

 

September 30,

2014

 

 

September 30,

2013

 

Cost of sales - product

$

668

 

 

$

686

 

 

$

1,828

 

 

$

2,252

 

Cost of sales - service

 

1,102

 

 

 

1,479

 

 

 

3,164

 

 

 

4,600

 

Stock-based compensation expense included in cost of sales

 

1,770

 

 

 

2,165

 

 

 

4,992

 

 

 

6,852

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Sales and marketing

 

4,673

 

 

 

5,889

 

 

 

10,397

 

 

 

19,742

 

Research and development

 

3,203

 

 

 

3,669

 

 

 

7,304

 

 

 

12,578

 

General and administrative

 

5,122

 

 

 

5,479

 

 

 

11,485

 

 

 

14,128

 

Stock-based compensation expense included in operating

     expenses

 

12,998

 

 

 

15,037

 

 

 

29,186

 

 

 

46,448

 

Stock-based compensation expense related to employee

     equity awards and employee stock purchases

 

14,768

 

 

 

17,202

 

 

 

34,178

 

 

 

53,300

 

Tax benefit

 

3,016

 

 

 

7,960

 

 

 

6,778

 

 

 

24,663

 

Stock-based compensation expense related to employee

     equity awards and employee stock purchases, net of tax

$

11,752

 

 

$

9,242

 

 

$

27,400

 

 

$

28,637

 

 

Significant Assumptions Used to Estimate Fair Value of Employee Stock Purchase Plan

The fair value of each employee stock purchase right grant is estimated on the date of grant using the Black-Scholes option valuation model and is recognized as expense using the graded vesting method using the following assumptions:

 

 

 

Three Months Ended

 

Nine Months Ended

 

 

September 30,

2014

 

September 30,

2013

 

September 30,

2014

 

 

September 30,

2013

 

Expected volatility

26.47-32.18%

 

42.40-48.89%

 

26.47-42.11%

 

 

42.40-50.55%

 

Risk-free interest rate

0.05-0.47%

 

0.08-0.35%

 

0.05-0.47%

 

 

0.08-0.35%

 

Expected dividends

0.0%

 

0.0%

 

 

0.0%

 

 

 

0.0%

 

Expected life (yrs)

0.5-2.0

 

0.5-2.0

 

0.5-2.0

 

 

0.5-2.0