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Stock-Based Compensation
 9 Months Ended
Sep. 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 September 30,
 
Nine Months Ended September 30,
(In thousands)
2013
 
2012
 
2013
 
2012
Research and development
$
54

 
$
52

 
$
166

 
$
167

Selling, general and administrative:
 
 
 
 
 
 
 
Employees
1,120

 
949

 
3,378

 
2,761

Outside directors
215

 
109

 
406

 
519

Total stock-based compensation expense
$
1,389

 
$
1,110

 
$
3,950

 
$
3,447

 
 
 
 
 
 
 
 
Income tax benefit
$
451

 
$
358

 
$
1,255

 
$
1,125



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
(499
)
 
17.00

 
 
 
$
5,564

Forfeited/canceled/expired
(7
)
 
28.08

 
 
 
 
Outstanding at September 30, 2013 (1)
1,107

 
$
21.96

 
5.95
 
$
15,584

Vested and expected to vest at September 30, 2013 (1)
1,103

 
$
21.96

 
5.94
 
$
15,519

Exercisable on September 30, 2013 (1)
811

 
$
22.39

 
4.93
 
$
11,068

(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 third 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 September 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 September 30,
 
Nine Months Ended September 30,
 
2013
 
2012
 
2013
 
2012
Weighted average fair value of grants (1)
$
—

 
$
7.17

 
$
9.26

 
$
9.57

Risk-free interest rate
—
%
 
0.72
%
 
0.95
%
 
0.86
%
Expected volatility
—
%
 
54.44
%
 
53.39
%
 
55.22
%
Expected life in years
0.00

 
5.34

 
5.20

 
5.15


(1) 
The weighted average fair value of grants was calculated utilizing the stock options granted during each respective period.
As of September 30, 2013, we expect to recognize $2.5 million of total unrecognized pre-tax stock-based compensation expense related to non-vested stock options over a remaining weighted-average life of 1.9 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
110

 
21.84

Vested
(143
)
 
19.52

Forfeited
—

 
—

Non-vested at September 30, 2013
237

 
$
19.67


As of September 30, 2013, we expect to recognize $4.0 million of total unrecognized pre-tax stock-based compensation expense related to non-vested restricted stock awards over a weighted-average life of 1.5 years.