13. Stockholders’ Equity

Share purchases

On October 23, 2013, the Company’s Board of Directors approved a share purchase program of up to $50.0 million of the Company’s outstanding shares of common stock over the next two years. Intended to offset shareholder dilution, the Company expects purchases under the program will be made periodically, on the open market as business and market conditions warrant. The share repurchase program does not obligate the Company to acquire any particular amount of common stock, and the program may be suspended or discontinued at management’s and/or the Board of Director’s discretion. As of September 30, 2014, the Company has purchased a total of 1,016,169 shares of its common stock for an aggregate purchase price of $28.3 million, including brokers’ fees. As of December 31, 2013, the Company purchased 75,000 shares of common stock for an aggregate purchase price of $2.2 million, including brokers’ fees.

Share Based Compensation

We account for share based compensation in accordance with ASC Topic No. 718, Compensation—Stock Compensation, which requires the measurement of compensation costs at fair value on the date of grant and recognition of compensation expense over the service period for awards expected to vest. The following presents the impact of share based compensation expense on our condensed consolidated statements of income (in thousands):


	Three Months Ended September 30,				Nine Months Ended September 30,
	2014		2013		2014		2013
Marketing and selling	$	1,257	$	1,003	$	3,553	$	2,753
Research and development		620		501		1,747		1,405
General and administrative		942		655		2,535		1,836

Total expensed	$	2,819	$	2,159	$	7,835	$	5,994
Property and equipment		39		—		102		—

Total share based compensation	$	2,858	$	2,159	$	7,937	$	5,994

In the three and nine months ended September 30, 2014, approximately $39 thousand and $102 thousand, respectively, of share based compensation was capitalized as part of an internal software project, and this amount is included in property and equipment, net in our condensed consolidated balance sheet.

As of September 30, 2014, the Company had $21.8 million of unrecognized compensation expense, which is net of expected forfeitures, related to employees and directors’ unvested stock options and restricted stock awards that are expected to be recognized over a weighted average period of 1.8 years.