Stock-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2012

The following tables summarize information related to the company’s stock-based compensation:

	Restricted Stock Units						Stock Options
				Weighted Average							Weighted Average
	Number of			Measurement			Number of				Exercise
	Units			Date Fair Value			Options				Price
Outstanding at December 31, 2011		782,112			$	16.07		902,287				$	7.25
Granted (1)		485,796				12.86		—					—
Exercised		—				—		(237,480	)				6.41
Vested		(343,524	)			15.77		—					—
Forfeited		(12,580	)			15.24		—					—
Expired		—				—		(599	)				5.79
Outstanding at September 30, 2012		911,804			$	14.48		664,208		(2)		$	7.55

(1)	The fair value of restricted stock unit grants is determined based on the closing market price of Orbital’s common stock on the date of grant. Such value is recognized as expense over the service period, net of estimated forfeitures.

(2)	The weighted average remaining contractual term is 0.89 years.

Equity Transactions, Additional Disclosures

	Quarters Ended September 30,
(in millions)	2012		2011
Stock-based compensation expense	$	2.0	$	1.8
Income tax benefit related to stock-based compensation expense		0.7		0.6
Intrinsic value of options exercised computed as the market
price on the exercise date less the price paid to exercise the options		1.7		0.7
Cash received from exercise of options		1.4		0.3
Tax benefit recorded as credits to additional paid-in capital related
to stock-based compensation transactions		—		0.3

	Nine Months Ended September 30,
(in millions)	2012		2011
Stock-based compensation expense	$	4.7	$	4.7
Income tax benefit related to stock-based compensation expense		1.6		1.5
Intrinsic value of options exercised computed as the market
price on the exercise date less the price paid to exercise the options		1.8		2.5
Cash received from exercise of options		1.5		0.9
Tax benefit recorded as credits to additional paid-in capital related
to stock-based compensation transactions		—		1.0

	As of
(in millions)	September 30, 2012
Shares of common stock available for grant under stock-based incentive plans		3.0
Aggregate intrinsic value of restricted stock units that are expected to vest	$	13.3
Unrecognized compensation expense related to non-vested restricted stock units, expected to
be recognized over a weighted-average period of 2.10 years		11.7
Aggregate intrinsic value of stock options outstanding, all fully vested		4.7

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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