Capital Stock

12 Months Ended

Dec. 31, 2012

Capital Stock

Capital Stock

Note 8. Capital Stock

• Common Stock

        As of December 31, 2012, the Company had 29,953,815 shares of common stock outstanding. Shares of common stock reserved for future issuance as of December 31, 2012 were as follows:

	Number of Shares
	(In thousands)
Shares to be issued upon exercise of outstanding stock options and vesting of restricted stock units ("RSUs")		5,115
Shares available for future stock option and RSU grants, settlement of employee stock purchase plan (ESPP) and restricted stock to be issued to outside directors in lieu of director fees		3,315
Shares of common stock reserved for future issuance		8,430

• Treasury Stock

        In December 2012, the Company entered into an accelerated share repurchase agreement with a financial institution to repurchase $30.0 million of its common stock on an accelerated basis. Under the terms of this accelerated share repurchase agreement, the Company paid $30.0 million to the financial institution to settle the initial purchase transaction and received 984,074 shares of its common stock, representing the minimum number of shares deliverable under the agreement. In February 2013, upon termination of the agreement and in accordance with the share delivery provisions of the agreement, the Company received an additional 77,257 shares of its common stock based on the average of the daily volume weighted-average prices of its common stock during a specified period less a predetermined discount per share. As a result, the average purchase price of the Company's common stock from the accelerated share repurchase program was $28.27 per share.

        The Company accounted for the accelerated share repurchase as two separate transactions: (a) as shares of common stock acquired in a treasury stock transaction recorded on the transaction date and (b) as a forward contract indexed to the Company's common stock. As such, the 984,074 shares repurchased were accounted for as a repurchase of common stock. The 77,257 additional shares that the Company received upon termination of the contract in February 2013 were also recorded in stockholders' equity. The Company determined that the forward contract indexed to the Company's common stock met all of the applicable criteria for equity classification, and therefore, the contract was not accounted for as a derivative.