Stock-based Compensation

3 Months Ended

Mar. 31, 2013

Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]

Stock-based Compensation

7. Stock-based Compensation

Equity Incentive Plans

In 1999, the Company adopted the 1999 Stock Incentive Plan (the “1999 Plan”). The 1999 Plan provided for the grant of incentive stock options, nonqualified stock options, restricted stock awards and stock appreciation rights. The 1999 Plan terminated in June 2009 whereby no new options or awards are permitted to be granted. In April 2009, the Company adopted the 2009 Equity Incentive Plan. This plan provides for the grant of incentive stock options, nonqualified stock options, restricted stock awards, restricted stock units (“RSUs”) and stock appreciation rights. In June 2010, in connection with the Company’s initial public offering (“IPO”), the 2009 Equity Incentive Plan was amended and restated to provide for, among other things, annual increases in the share reserve (as amended and restated, the “2009 Plan”). On January 1, 2012 and 2013, 1,219,787 and 1,250,000 shares, respectively, were added to the 2009 Plan. At March 31, 2013, the Company had 553,807 shares of common stock available for issuance under the 2009 Plan.

Stock-based compensation expense recognized by the Company was as follows (in thousands):

	Three Months Ended March 31,
	2013		2012
Stock options	$	2,410	$	1,389
Restricted stock units		5,442		1,802
Performance stock units		692		—
Total recognized stock-based compensation expense	$	8,544	$	3,191

Stock Options

The following table presents summary information related to stock options:

	Number of Options Outstanding			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (years)		Aggregate Intrinsic Value
Balance, December 31, 2012		1,474,346		$	23.50
Granted		80,930
Exercised		(50,833	)
Forfeited		(31,758	)
Balance, March 31, 2013		1,472,685		$	24.69		7.88	$	12,476,513
Vested at March 31, 2013		583,150		$	11.81		6.34	$	10,133,063
Exercisable at March 31, 2013		589,797		$	11.71		6.34	$	8,707,609

The Company granted 80,930 stock options during the three months ended March 31, 2013 and 92,500 stock options during the three months ended March 31, 2012. For the three months ended March 31, 2013 and March 31, 2012, the intrinsic value of stock options exercised was $1.6 million and $3.2 million, respectively, and cash received from stock options exercised was $0.2 million and $0.9 million, respectively. At March 31, 2013, unrecognized stock-based compensation expense related to unvested options was $9.0 million, which is scheduled to be recognized over a weighted average period of 1.38 years.

Restricted Stock Units

The following table presents a summary of activity for RSUs (excluding RSUs that are subject to performance-based vesting conditions (“Performance Stock Awards” or PSUs”)):

	Number of RSUs			Weighted Average Grant Date Fair Value
Balance, December 31, 2012		638,299		$	34.22
Granted		1,386,295			32.52
Vested		(95,978	)		31.76
Forfeited		(20,325	)		34.32
Balance, March 31, 2013		1,908,291		$	33.11

During the three months ended March 31, 2013, the Company granted 1,378,448 RSUs to certain officers and employees, which vest over four years following the vesting commencement date, and granted 7,847 RSUs to certain directors that vest quarterly through December 31, 2013. During the three months ended March 31, 2012, the Company granted an aggregate of 311,100 RSUs to certain officers and employees, which vest over four years following the vesting commencement date and 16,003 RSUs to certain officers that were fully vested at the date of grant. In addition during such three month period, the Company granted 12,234 RSUs to certain directors that vested in equal quarterly installments through December 31, 2012. At March 31, 2013, unrecognized stock-based compensation expense related to unvested RSUs was $43.0 million, which is scheduled to be recognized over a weighted average period of 1.88 years.

Performance Stock Units

The following table presents a summary of activity for PSUs:

	Number of PSUs		Weighted Average Grant Date Fair Value
Balance, December 31, 2012		10,000	$	39.86
Granted		382,500		28.72
Vested		—		—
Forfeited		—		—
Balance, March 31, 2013		392,500	$	29.00

During the three months ended March 31, 2013, the Company granted 382,500 PSUs to certain officers, which vest over four years, subject to the satisfaction of performance conditions based upon the trading price of our common stock. At March 31, 2013, unrecognized stock-based compensation expense related to unvested PSUs was $8.5 million, which is scheduled to be recognized over a weighted average period of 2.06 years.

Tax Benefits

As of March 31, 2013, the balance of the Company’s additional paid-in capital pool related to tax windfall benefits from stock option exercises was $9.0 million.

The Company applies a with-and-without approach in determining its intra-period allocation of tax expense or benefit attributable to stock-based compensation deductions. Tax deductions in excess of previously recorded benefits (windfalls) included in net operating loss carryforwards but not reflected in deferred tax assets were $55.5 million and $77.6 million at March 31, 2013 and December 31, 2012, respectively.