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Stock-based Compensation Stock-based Compensation (Tables)
 9 Months Ended
Sep. 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
September 30,
 
Nine Months Ended
September 30,
 
2013
 
2012
 
2013
 
2012
Cost of goods sold
$
672

 
$
895

 
$
1,902

 
$
2,516

Research and development
1,388

 
1,297

 
3,675

 
3,771

Selling, general and administrative
5,288

 
4,405

 
15,096

 
13,710

Stock-based compensation expense before income taxes
7,348

 
6,597

 
20,673

 
19,997

Income tax benefit
(2,295
)
 
(2,005
)
 
(6,696
)
 
(6,067
)
Total stock-based compensation expense after income taxes
$
5,053

 
$
4,592

 
$
13,977

 
$
13,930

Stock-based compensation costs capitalized in inventory are as follows (in thousands):
 
 
September 30,
 
2013
 
2012
Capitalized in inventory
$
789

 
$
514
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 nine months ended September 30, 2013 was estimated with the following weighted-average assumptions:
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2013
 
2012
 
2013
 
2012
Stock option awards:
 
 
 
 
 
 
 
Risk-free interest rate
0.6
%
 
—

 
0.3
%
 
0.4
%
Expected dividend yield
1.1
%
 
—

 
1.5
%
 
1.3
%
Expected term
4.5 years

 
—

 
4.3 years

 
4.2 years

Expected volatility
31.4
%
 
—

 
33.7
%
 
39.7
%
Market-based restricted stock awards:
 
 
 
 
 
 
 
Risk-free interest rate
—

 
—

 
0.3
%
 
0.4
%
Expected dividend yield
—

 
—

 
—

 
—

Expected term
—

 
—

 
2.2 years

 
3.0 years

Expected volatility
—

 
—

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

 
—

 
18.1
%
 
19.6
%
Employee stock purchase plan:
 
 
 
 
 
 
 
Risk-free interest rate
—

 
—

 
0.1
%
 
0.2
%
Expected dividend yield
—

 
—

 
1.5
%
 
1.3
%
Expected term
—

 
—

 
6 months

 
6 months

Expected volatility
—

 
—

 
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
September 30,
 
Nine Months Ended
September 30,
 
2013
 
2012
 
2013
 
2012
Stock Option Awards:
 
 
 
 
 
 
 
Weighted average grant date fair value per share
$
7.65

 
$
—

 
$
5.92

 
$
6.43

Total fair value of awards granted
$
278

 
$
—

 
$
6,095

 
$
4,104

Total fair value of awards vested
$
33

 
$
38

 
$
5,059

 
$
6,023

Total intrinsic value of options exercised
$
1,910

 
$
3,278

 
$
3,748

 
$
5,637

Restricted Stock Unit Awards:
 
 
 
 
 
 
 
Weighted average grant date fair value per share
$
31.30

 
$
19.84

 
$
23.91

 
$
17.23

Total fair value of awards granted
$
2,427

 
$
121

 
$
28,063

 
$
30,643

Total fair value of awards vested
$
222

 
$
174

 
$
13,541

 
$
12,276

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

 
$
—

 
$
5.25

 
$
5.02

Total fair value of shares estimated to be issued
$
—

 
$
—

 
$
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
1,030

 
24.58

 
 
 
 
Exercised
(266
)
 
14.07

 
 
 
 
Forfeited
(8
)
 
21.40

 
 
 
 
Outstanding at September 30, 2013
7,398

 
$
22.32

 
4.9

 
$
70,176

Exercisable at September 30, 2013
6,032

 
$
21.75

 
3.9

 
$
60,831

Vested and expected to vest at September 30, 2013
7,329

 
$
22.30

 
4.9

 
$
69,709
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
1,173

 
23.91

Vested and distributed
(556
)
 
26.71

Forfeited
(140
)
 
24.84

Outstanding at September 30, 2013
2,849

 
$
23.74