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Stock-based Compensation Stock-based Compensation (Tables)
 6 Months Ended
Jun. 30, 2013
Share-based Compensation [Abstract]  
Stock-based compensation expense and related tax benefit recognized in the Consolidated Statements of Income and capitalized in the Consolidated Balance Sheets
Stock-based compensation expense and related tax benefit recognized in the Consolidated Statements of Income are as follows (in thousands):
 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2013
 
2012
 
2013
 
2012
Cost of goods sold
$
578

 
$
917

 
$
1,231

 
$
1,621

Research and development
1,206

 
1,298

 
2,287

 
2,474

Selling, general and administrative
5,846

 
5,650

 
9,809

 
9,305

Stock-based compensation expense before income taxes
7,630

 
7,865

 
13,327

 
13,400

Income tax benefit
(2,543
)
 
(2,389
)
 
(4,402
)
 
(4,063
)
Total stock-based compensation expense after income taxes
$
5,087

 
$
5,476

 
$
8,925

 
$
9,337

Stock-based compensation costs capitalized in inventory are as follows (in thousands):
 
 
June 30,
 
2013
 
2012
Capitalized in inventory
$
755

 
$
697
Fair value of the stock-based awards, as determined under the Black-Scholes model, granted weighted-average assumptions
The fair value of the stock-based awards granted in the three and six months ended June 30, 2013 was estimated with the following weighted-average assumptions:
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2013
 
2012
 
2013
 
2012
Stock option awards:
 
 
 
 
 
 
 
Risk-free interest rate
0.3
%
 
0.4
%
 
0.3
%
 
0.4
%
Expected dividend yield
1.5
%
 
1.3
%
 
1.5
%
 
1.3
%
Expected term
4.3 years

 
4.2 years

 
4.3 years

 
4.2 years

Expected volatility
33.8
%
 
39.7
%
 
33.8
%
 
39.7
%
Market-based restricted stock awards:
 
 
 
 
 
 
 
Risk-free interest rate
—

 
0.4
%
 
0.3
%
 
0.4
%
Expected dividend yield
—

 
—

 
—

 
—

Expected term
—

 
3.0 years

 
2.2 years

 
3.0 years

Expected volatility
—

 
30.7
%
 
28.8
%
 
30.7
%
Expected volatility of S&P 500
—

 
19.6
%
 
18.1
%
 
19.6
%
Employee stock purchase plan:
 
 
 
 
 
 
 
Risk-free interest rate
0.1
%
 
0.2
%
 
0.1
%
 
0.2
%
Expected dividend yield
1.5
%
 
1.3
%
 
1.5
%
 
1.3
%
Expected term
6 months

 
6 months

 
6 months

 
6 months

Expected volatility
25.0
%
 
27.4
%
 
25.0
%
 
27.4
%
Weighted-average fair value of stock-based compensation awards granted and vested, and the intrinsic value of options exercised
The weighted average fair value of stock-based compensation awards granted and vested, and the intrinsic value of options exercised during the period were (in thousands, except per share amounts): 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2013
 
2012
 
2013
 
2012
Stock Option Awards:
 
 
 
 
 
 
 
Weighted average grant date fair value per share
$
5.86

 
$
6.43

 
$
5.86

 
$
6.43

Total fair value of awards granted
$
5,817

 
$
4,104

 
$
5,817

 
$
4,104

Total fair value of awards vested
$
5,013

 
$
5,970

 
$
5,026

 
$
5,985

Total intrinsic value of options exercised
$
652

 
$
939

 
$
1,839

 
$
2,358

Restricted Stock Unit Awards:
 
 
 
 
 
 
 
Weighted average grant date fair value per share
$
23.43

 
$
17.21

 
$
23.38

 
$
17.22

Total fair value of awards granted
$
25,188

 
$
30,471

 
$
25,330

 
$
30,522

Total fair value of awards vested
$
13,134

 
$
11,763

 
$
13,319

 
$
12,103

Employee Stock Purchase Plan:
 
 
 
 
 
 
 
Weighted average grant date fair value per share
$
5.25

 
$
5.02

 
$
5.25

 
$
5.02

Total fair value of shares estimated to be issued
$
552

 
$
1,106

 
$
552

 
$
1,106
Information with respect to stock option activity
 Information with respect to stock option activity is as follows:
 
Shares
(in  thousands)
 
Weighted
Average
Exercise
Price
 
Weighted
Average
Remaining
Contractual
Term
 
Aggregate
Intrinsic
Value
(in thousands)
Outstanding at December 31, 2012
6,642

 
$
21.64

 
4.7

 
 
Granted
993

 
24.31

 
 
 
 
Exercised
(141
)
 
12.42

 
 
 
 
Forfeited
(8
)
 
21.40

 
 
 
 
Outstanding at June 30, 2013
7,486

 
$
22.17

 
5.0

 
$
45,081

Exercisable at June 30, 2013
6,154

 
$
21.63

 
4.1

 
$
41,162

Vested and expected to vest at June 30, 2013
7,420

 
$
22.15

 
5.0

 
$
44,885
Information with respect to restricted stock unit activity
Information with respect to restricted stock unit activity is as follows:
 
 
Shares
(in  thousands)
 
Weighted
Average
Grant Date
Fair Value
Outstanding at December 31, 2012
2,372

 
$
21.30

Granted
1,095

 
23.38

Vested and distributed
(549
)
 
26.73

Forfeited
(114
)
 
25.03

Outstanding at June 30, 2013
2,804

 
$
20.94