Stock-based Compensation

12 Months Ended

Dec. 31, 2011

Share-based Compensation [Abstract]

Stock-based Compensation

Stock-based Compensation

Stock Incentive Plans

The Company has a stock-based compensation program that provides equity incentives for employees, consultants and directors. This program includes incentive and non-statutory stock options and nonvested stock awards (referred to as restricted stock unit awards) granted under four plans: the FLIR Systems, Inc. 1992 Stock Incentive Plan (the “1992 Plan”), the FLIR Systems, Inc. 1993 Stock Option Plan for Non-Employee Directors (the “1993 Plan”), the FLIR Systems, Inc. 2002 Stock Incentive Plan (the “2002 Plan”) and the FLIR Systems, Inc. 2011 Stock Incentive Plan (the “2011 Plan”). The Company has discontinued issuing awards out of the 1992 Plan, the 1993 Plan and the 2002 Plan but previously granted awards under the 1993 Plan and the 2002 Plan remain outstanding.

Prior to January 1, 2006, all stock options granted were time-based with vesting schedules ranging from immediate vesting to vesting over three years and generally expired ten years from the grant date. During 2006, the Company also began granting performance-based options and time-based restricted stock unit awards, and in 2011, began granting performance-based restricted stock unit awards. The vesting of performance-based options and restricted stock unit awards are contingent upon meeting certain diluted earnings per share growth targets primarily in three independent tranches over a three year period and the options expire ten years from the grant date. The vesting of each tranche is not dependent on the other tranches. Time-based restricted stock unit awards generally vest over a three year period. Shares issued as a result of stock option exercises and the distribution of vested restricted stock units are new shares.

The Company also has stock options that it issued as replacement options in connection with the acquisition of Indigo Systems Corporation in 2004 and stock options and restricted stock unit awards issued as replacement awards in connection with the acquisition of ICx in 2010.

Information with respect to stock option activity for 2011 is as follows:

	Shares (in thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2010	7,403		$	18.69	5.6
Granted	397		35.00
Exercised	(1,148	)	12.06
Forfeited	(82	)	27.63
Outstanding at December 31, 2011	6,570		$	20.73	5.0	$	41,277
Exercisable at December 31, 2011	5,581		$	19.00	4.4	$	41,273
Vested and expected to vest at December 31, 2011	6,435		$	20.59	5.0	$	41,276

Note 15. Stock-based Compensation—(Continued)

Information with respect to restricted stock unit activity for 2011 is as follows:

	Shares (in thousands)		Weighted  Average Grant Date Fair Value
Outstanding at December 31, 2010	1,351		$	28.54
Granted	637		34.35
Vested and distributed	(576	)	29.06
Forfeited	(107	)	29.83
Outstanding at December 31, 2011	1,305		$	30.89

As of December 31, 2011, there are 5,288,000 shares of common stock reserved for future issuance under the 2011 Plan.

Employee Stock Purchase Plan

The Company has an Employee Stock Purchase Plan (the “ESPP”) which allows employees to purchase shares of the Company’s common stock at 85 percent of the fair market value at the lower of either the date of enrollment or the purchase date. The Company has reserved 5,000,000 shares of common stock for issuance under the ESPP.

There were 340,000 shares issued during 2011 and 4,281,000 shares remain available under the ESPP at December 31, 2011 for future issuance. Shares issued for ESPP purchases are new shares.