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Stockholders' Equity (Tables)
12 Months Ended
Dec. 31, 2012
Stock-based Compensation Expense
 The stock-based compensation expense related to all of our stock-based awards and employee stock purchases for the years ended December 31, 2012, 2011 and 2010 are as follows (in thousands):
 
 
For the Years Ended December 31,
 
2012
 
2011
 
2010
Cost of revenues
$
1,843

 
$
1,818

 
$
1,629

Sales and marketing
5,581

 
5,495

 
4,430

General and administrative
10,361

 
9,096

 
7,931

Research and development
3,698

 
2,756

 
2,082

Total stock-based compensation
$
21,483

 
$
19,165

 
$
16,072

Stock Option Activity
Activity for the year ended December 31, 2012, under the stock option plans are set forth below (in thousands, except years and per share amounts):
 
 
Stock Options
 
Number of
Shares
Underlying
Stock Options
 
Weighted
Average
Exercise
Price per Share
 
Weighted Average
Remaining
Contractual Term
(in years )
 
Aggregate
Intrinsic
Value
Outstanding as of December 31, 2011
6,190

 
14.23

 
 
 
 
Granted

 

 
 
 
 
Exercised
(2,844
)
 
13.03

 
 
 
 
Cancelled or expired
(70
)
 
17.14

 
 
 
 
Outstanding as of December 31, 2012
3,276

 
$
15.21

 
4.29
 
$
41,088

Vested and expected to vest at December 31, 2012
3,252

 
$
15.18

 
4.28
 
$
40,876

Exercisable at December 31, 2012
2,733

 
$
14.62

 
4.20
 
$
35,903

Share Based Compensation Arrangement By Share Based Payment Award Fair Value Assumptions Method Used
The following weighted-average assumptions used in the Monte Carlo simulation were as follows:
 
 
Year Ended
December 31,
 
2012
 
2011
 
2010
Expected term (in years)
3.0

 
3.0

 
N/A
Expected volatility
54.0
%
 
58.4
%
 
N/A
Risk-free interest rate
0.4
%
 
1.3
%
 
N/A
Expected dividends

 

 
N/A
Weighted average fair value per share at grant date
$
29.45

 
$
22.12

 
N/A
2001 Purchase Plan
 
Weighted Average Assumptions Used for the Fair Value of Options Component of Purchase Plan Granted Estimated at Grant Date
The fair value of the option component of the Purchase Plan shares was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions:
 
 
December 31,
  
2012
 
2011
 
2010
Employee Stock Purchase Plan:
 
 
 
 
 
Expected term (in years)
1.2

 
1.5

 
1.3

Expected volatility
49.7
%
 
43.2
%
 
55.8
%
Risk-free interest rate
0.2
%
 
0.4
%
 
0.4
%
Expected dividends

 

 

Weighted average fair value at grant date
$
11.10

 
$
7.29

 
$
7.22

Stock Option
 
Weighted Average Assumptions Used for the Fair Value of Options Component of Purchase Plan Granted Estimated at Grant Date
The fair value of stock options granted was estimated at the grant date using the Black-Scholes option pricing model with the following weighted average assumptions:
 
 
2012
 
2011
 
2010
Stock options (1):
 
 
 
 
 
Expected term (in years)

 
4.4

 
4.4

Expected volatility
%
 
60.6
%
 
63.3
%
Risk-free interest rate
%
 
1.7
%
 
1.9
%
Expected dividends

 

 

Weighted average fair value at grant date
$

 
$
10.87

 
$
9.08

Restricted Stock Units (RSUs)
 
Summary Of Nonvested Shares
A summary for the year ended December 31, 2012, is as follows (in thousands, except years and per share amounts):
 
 
Shares
Underlying  RSUs
 
Average Grant
Date Fair
Value Price per Share
 
Weighted
Remaining
Vesting Period
(in years)
 
Aggregate
Intrinsic
Value
Nonvested as of December 31, 2011
1,208

 
18.71

 
 
 
 
Granted
897

 
27.77

 
 
 
 
Vested and released
(443
)
 
17.57

 
 
 
 
Forfeited
(162
)
 
23.48

 
 
 
 
Nonvested as of December 31, 2012
1,500

 
$
23.95

 
1.34
 
$
41,632

Market Performance Based Restricted Stock Units
 
Summary Of Nonvested Shares
The following table summarizes the MSU performance as of December 31, 2012:
 
 
Number of  Shares
Underlying MSUs
(in thousands)
 
Weighted  Average
Remaining
Vesting Period
(in years )
 
Aggregate
Intrinsic  Value
(in thousands)
Nonvested as of December 31, 2011
128

 

 


Granted
198

 
 
 
 
Vested and released
(18
)
 
 
 
 
Forfeited
(42
)
 
 
 
 
Nonvested as of December 31, 2012
266

 
1.54
 
$
7,368