Stock-based Compensation (Tables)

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation Expense and Related Tax Benefit Recognized in Consolidated Statements of Income

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,
	2011			2010			2011			2010
Cost of goods sold	$	941		$	969		$	2,462		$	2,836
Research and development		1,152			1,213			3,997			3,734
Selling, general and administrative		3,344			3,906			12,854			12,440
Stock-based compensation expense before income taxes		5,437			6,088			19,313			19,010
Income tax benefit		(1,574	)		(1,900	)		(5,565	)		(5,993	)
Total stock-based compensation expense after income taxes	$	3,863		$	4,188		$	13,748		$	13,017

Stock-Based Compensation Costs Capitalized in Inventory

Stock-based compensation costs capitalized in inventory are as follows (in thousands):

	September 30,
	2011		2010
Stock-based compensation costs capitalized in inventory	$	795	$	682

Fair Value of the Stock-Based Awards, as Determined Under the Black-Scholes Model, Weighted-Average Assumptions

The fair value of the stock-based awards, as determined under the Black-Scholes model, granted in the three months and nine months ended September 30, 2011 and 2010 was estimated with the following weighted-average assumptions:

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011			2010
Stock Option Awards:
Risk-free interest rate		—		—		1.0	%		1.55	%
Expected dividend yield		—		—		0.7	%		0.0	%
Expected term		—		—		4.3 years			4.3 years
Expected volatility		—		—		42.3	%		45.1	%
Employee Stock Purchase Plan:
Risk-free interest rate		—		—		0.1	%		0.3	%
Expected dividend yield		—		—		0.7	%		0.0	%
Expected term		—		—		6 months			6 months
Expected volatility		—		—		21.3	%		23.0	%

Fair Value of Stock-Based Compensation Awards Granted and Vested, and Intrinsic Value of Options Exercised

The 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,
	2011		2010		2011		2010
Stock Option Awards:
Weighted average grant date fair value per share	$	—	$	—	$	11.68	$	11.52
Total fair value of awards granted	$	—	$	—	$	4,513	$	7,299
Total fair value of awards vested	$	75	$	80	$	8,037	$	7,281
Total intrinsic value of options exercised	$	2,016	$	11,842	$	15,169	$	15,577
Restricted Stock Unit Awards:
Weighted average grant date fair value per share	$	27.43	$	30.31	$	34.41	$	30.14
Total fair value of awards granted	$	169	$	73	$	21,692	$	14,986
Total fair value of awards vested	$	165	$	413	$	19,098	$	15,763
Employee Stock Purchase Plan:
Weighted average grant date fair value per share	$	—	$	—	$	7.36	$	6.73
Total fair value of shares estimated to be issued	$	—	$	—	$	1,051	$	786

Total Amount of Cash Received from Exercise of Stock Options and Related Tax Benefit Realized from Exercise of Stock Options

The total amount of cash received from the exercise of stock options and the related tax benefit realized from the exercise of the stock options were (in thousands):

	Three Months Ended September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Total amount of cash received	$	804	$	5,632	$	11,055	$	9,020
Tax benefit realized	$	624	$	2,815	$	4,729	$	5,714

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, 2010		7,403		$	18.69		5.6
Granted		386			35.22
Exercised		(809	)		13.65
Forfeited		(65	)		26.19
Outstanding at September 30, 2011		6,915		$	20.14		5.1	$	46,890
Exercisable at September 30, 2011		5,888		$	18.42		4.5	$	46,571
Vested and expected to vest at September 30, 2011		6,864		$	20.06		4.5	$	46,874

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, 2010		1,351		$	28.54
Granted		630			34.41
Vested		(548	)		29.16
Forfeited		(79	)		29.64
Outstanding at September 30, 2011		1,354		$	28.31

Information with Respect to 2010 Employee Stock Purchase Plan

Information with respect to the 2010 Employee Stock Purchase Plan is as follows:

	Shares (in  thousands)
Shares issued during the nine months ended September 30, 2011		171
Shares available for issuance at September 30, 2011		4,449