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Stock-Based Compensation
 6 Months Ended
Jun. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
Stock-Based Compensation
Stock-based compensation expense for each employee and director is presented in the same income statement caption as their cash compensation. Stock-based compensation expense by income statement caption and the related income tax benefit were as follows:
 
 
Three Months Ended June 30,
 
Six Months Ended June 30,
(In thousands)
2013
 
2012
 
2013
 
2012
Research and development
$
55

 
$
45

 
$
112

 
$
115

Selling, general and administrative:
 
 
 
 
 
 
 
Employees
1,149

 
890

 
2,258

 
1,812

Outside directors
96

 
205

 
191

 
410

Total stock-based compensation expense
$
1,300

 
$
1,140

 
$
2,561

 
$
2,337

 
 
 
 
 
 
 
 
Income tax benefit
$
415

 
$
360

 
$
804

 
$
767



Stock Options

Stock option activity was as follows:
 
Number of Options
(in 000's)
Weighted-Average Exercise Price
Weighted-Average Remaining Contractual Terms
(in years)
Aggregate Intrinsic Value
(in 000's)
Outstanding at December 31, 2012
1,412

$
20.56

 
 
Granted
201

19.68

 
 
Exercised
(273
)
14.44

 
$
2,703

Forfeited/canceled/expired
(7
)
28.08

 
 
Outstanding at June 30, 2013 (1)
1,333

$
21.64

5.72

$
8,799

Vested and expected to vest at June 30, 2013 (1)
1,329

$
21.65

5.70

$
8,763

Exercisable on June 30, 2013 (1)
989

$
21.89

4.60

$
6,279

(1) 
The aggregate intrinsic value represents the total pre-tax value (the difference between our closing stock price on the last trading day of the second quarter of 2013 and the exercise price, multiplied by the number of in-the-money options) that would have been received by the option holders had they all exercised their options on June 30, 2013. This amount will change based on the fair market value of our stock.
The assumptions we utilized in the Black-Scholes option pricing model and the resulting weighted average fair value of stock option grants were the following:
 
Three Months Ended June 30,
 
Six Months Ended June 30,
 
2013
 
2012
 
2013
 
2012
Weighted average fair value of grants (1)
$
10.04

 
$
—

 
$
9.26

 
$
9.65

Risk-free interest rate
0.73
%
 
—

 
0.95
%
 
0.86
%
Expected volatility
52.38
%
 
—

 
53.39
%
 
55.25
%
Expected life in years
5.20

 
—

 
5.20

 
5.14


(1) 
The weighted average fair value of grants was calculated utilizing the stock options granted during each respective period.
As of June 30, 2013, we expect to recognize $3.0 million of total unrecognized pre-tax stock-based compensation expense related to non-vested stock options over a remaining weighted-average life of 2.1 years.
Restricted Stock
Non-vested restricted stock award activity was as follows:
 
 
Shares Granted
(in 000’s)
 
Weighted-Average Grant Date Fair Value
Non-vested at December 31, 2012
270

 
$
18.72

Granted
80

 
19.25

Vested
(72
)
 
20.74

Forfeited
—

 
—

Non-vested at June 30, 2013
278

 
18.34


As of June 30, 2013, we expect to recognize $4.1 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 1.8 years.