Stockholders' Equity

6 Months Ended

Jun. 30, 2011

Note 10 — Stockholders’ Equity

Changes in stockholders’ equity for the six months ended June 30, 2011 were as follows (in thousands):


Balance at December 31, 2010	$	823,379
Net income		45,621
Other comprehensive income (loss), net		(8,149	)
Proceeds from the issuance of common stock and ESPP		40,727
Issuance of common stock to board members		178
Repurchase and retirement of common stock		(47,972	)
Repurchase and retirement of restricted stock for payment of taxes		(363	)
Stock-based compensation		12,688
Stock-based compensation income tax benefits		3,708

Balance at June 30, 2011	$	869,817

Comprehensive Income

All components of comprehensive income, including net income, are reported in the consolidated financial statements in the period in which they are recognized. Comprehensive income is defined as the change in equity during a period from transactions and other events and circumstances from non-owner sources. Net income and other comprehensive income (loss), which includes certain changes in stockholders’ equity, such as foreign currency translation of the Company’s wholly owned subsidiaries’ financial statements and unrealized gains and losses on the Company’s available-for-sale securities, are reported, net of their related tax effect, to arrive at comprehensive income.

Components of comprehensive income, net of income tax, for the three and six month periods ended June 30, 2011 and 2010 were as follows (in thousands):


	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2011			2010			2011			2010
Net income, as reported	$	22,344		$	28,110		$	45,621		$	52,303

Other comprehensive income (loss):
Foreign currency translation adjustment		845			(1,497	)		3,173			(4,350	)
Change in net unrealized gain on available-for-sale securities during the period		(6,767	)		(1,004	)		(10,180	)		(3,653	)
Reclassification adjustments:
Realized gain on available-for-sale securities, net of tax		(1,372	)		1,206			(1,142	)		2,654

Total other comprehensive income (loss), net		(7,294	)		(1,295	)		(8,149	)		(5,349	)

Comprehensive income	$	15,050		$	26,815		$	37,472		$	46,954

Stock Options

A summary of the Company’s stock option activity for all equity incentive plans for the six month period ended June 30, 2011 is as follows (in thousands, except per share data and number of years):


						Weighted
				Weighted		Average
				Average		Remaining		Aggregate
	Number			Exercise		Contractual		Intrinsic
	of Shares			Price		Life (Years)		Value
Outstanding at December 31, 2010		5,700		$	46.56
Granted		1,003			65.38
Exercised		(873	)		43.83
Cancelled		(38	)		49.13

Outstanding at June 30, 2011		5,792		$	50.21		4.4	$	111,156

Exercisable at June 30, 2011		3,542		$	47.65		3.5	$	76,209

Restricted Stock and Deferred Issuance Restricted Stock

A summary of the Company’s restricted stock and deferred issuance restricted stock award activity for the six month period ended June 30, 2011 is as follows (in thousands, except per share data):



				Weighted
				Average
	Number of			Grant Date
	Shares			Fair Value
Unvested at December 31, 2010		121		$	54.41
Granted		6			72.10
Vested and exercised		(13	)		55.09
Cancelled		—			—

Unvested at June 30, 2011		114		$	55.25

Performance Stock Awards

A summary of the Company’s performance stock award activity for the six month period ended June 30, 2011 is as follows (in thousands, except per share data):



				Maximum			Weighted
				Shares			Average
	Number of			Eligible to			Grant Date
	Shares			Receive			Fair Value
Unvested at December 31, 2010		65			97		$	42.66
Awarded		91			182			82.58
Issued		(12	)		(12	)		42.66
Cancelled		(28	)		(60	)		42.66

Unvested at June 30, 2011		116			207		$	74.04

Beginning in 2010, the Company transitioned from its historical practice of granting certain senior Company employees annual restricted stock awards with time-based vesting provisions only, to granting these employees the right to receive a designated number of shares of Company common stock based on the achievement of specific performance criteria over a defined performance period (the “Performance Stock Awards”). All Performance Stock Awards have been granted under the Company’s 2003 Incentive Award Plan and are intended to qualify as performance-based compensation under Section 162(m) of the Internal Revenue Code of 1986, as amended.

In February 2010, the Compensation Committee granted certain senior Company employees Performance Stock Awards based on the Company’s 2010 revenues, earnings per share and return on invested capital (collectively, the “2010 Performance Stock Criteria”). Each recipient was eligible to receive between zero and 150% of the target number of shares of Company common stock subject to the applicable award based on actual performance as measured against the 2010 Performance Stock Criteria. In February 2011, the Company issued an aggregate of approximately 37,500 shares of Company common stock to award recipients based on actual performance. One-third of the issued shares vested on the date of issuance, one-third of the shares will vest on the first anniversary of the date of issuance and one-third of the shares will vest on the second anniversary of the date of issuance, as long as the award recipient is employed by the Company on each such vesting date.

In February 2011, the Compensation Committee granted certain senior Company employees Performance Stock Awards based on the Company’s adjusted relative stockholder return in comparison to a defined market index over a three-year performance period (the “2011 Performance Stock Criteria”). Each recipient is eligible to receive between zero and 200% of the target number of shares of Company common stock subject to the applicable award based on actual performance as measured against the 2011 Performance Stock Criteria. Performance under the awards will be measured annually from January 1, 2011 for performance intervals of one, two and three years, with each performance interval representing one-third of the total potential award. Shares issued following each annual performance measurement will be immediately vested upon issuance. Award recipients will be eligible to receive shares issued pursuant to such awards as long as the award recipient is employed by the Company on each such issuance date.

Stock Repurchase Programs

In February 2011, the Company’s Board of Directors authorized the repurchase of up to $150.0 million of the Company’s common stock until December 31, 2011, through negotiated or open market transactions. There is no minimum or maximum number of shares to be repurchased under the program. The Company did not repurchase any shares under this program during the three months ended June 30, 2011. As of June 30, 2011, the Company has repurchased and retired approximately 756,000 shares under this program since its inception at an average price of $63.49 per share, or approximately $48.0 million in total.

In February 2010, the Company’s Board of Directors authorized the repurchase of up to $100.0 million of the Company’s common stock until December 31, 2010, through negotiated or open market transactions. There was no minimum or maximum number of shares to be repurchased under the program. The Company completed the program in December 2010, repurchasing and retiring an aggregate of approximately 2,165,000 shares at an average price of $46.16 per share, or approximately $99.9 million in total.

- Definition

Disclosures related to accounts comprising shareholders' equity, including other comprehensive income. Includes: (1) balances of common stock, preferred stock, additional paid-in capital, other capital and retained earnings; (2) accumulated balance for each classification of other comprehensive income and total amount of comprehensive income; (3) amount and nature of changes in separate accounts, including the number of shares authorized and outstanding, number of shares issued upon exercise and conversion, and for other comprehensive income, the adjustments for reclassifications to net income; (4) rights and privileges of each class of stock authorized; (5) basis of treasury stock, if other than cost, and amounts paid and accounting treatment for treasury stock purchased significantly in excess of market; (6) dividends paid or payable per share and in the aggregate for each class of stock for each period presented; (7) dividend restrictions and accumulated preferred dividends in arrears (in aggregate and per share amount); (8) retained earnings appropriations or restrictions, such as dividend restrictions; (9) impact of change in accounting principle, initial adoption of new accounting principle and correction of an error in previously issued financial statements; (10) shares held in trust for Employee Stock Ownership Plan (ESOP); (11) deferred compensation related to issuance of capital stock; (12) note received for issuance of stock; (13) unamortized discount on shares; (14) description, terms and number of warrants or rights outstanding; (15) shares under subscription and subscription receivables; effective date of new retained earnings after quasi-reorganization and deficit eliminated by quasi-reorganization and, for a period of at least ten years after the effective date, the point in time from which the new retained dates; and (16) retroactive effective of subsequent change in capital structure.

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