Stock-Based Compensation

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation

Stock-Based Compensation

Note 9. Stock-Based Compensation

The Company has a stock incentive plan (the "Incentive Plan") under which options to purchase new shares of the Company's common stock may be granted to employees, consultants and directors at an exercise price no less than the quoted market value on the date of grant. The Incentive Plan also provides for awards in the form of stock appreciation rights, restricted (nonvested) or unrestricted stock awards, stock-equivalent units or performance-based stock awards. The Company issues both qualified and non-qualified options under the Incentive Plan. The Company also has an Employee Stock Purchase Plan.

Stock-based compensation expense for the three and nine months ended September 30, 2011 is not necessarily representative of the level of stock-based compensation expense in future periods due to, among other things, the fair value of additional stock option grants and other awards in future years and the vesting period of the stock options and other awards.

The Company recorded stock-based compensation expense pursuant to these plans of $6,950 (net of $3,343 capitalized as part of inventory production) and $6,984 during the three months ended September 30, 2011 and 2010, respectively. The Company recorded stock-based compensation expense pursuant to these plans of $22,000 (net of $6,485 capitalized as part of inventory production) and $17,803 during the nine months ended September 30, 2011 and 2010, respectively. Stock-based compensation expense relates to stock options, restricted stock units and restricted stock awards granted under the Incentive Plan.

Under the Incentive Plan, the Company issued 312,288 and 1,861,087 shares of common stock in conjunction with stock option exercises during the three and nine months ended September 30, 2011, respectively. The Company granted 419,150 stock options with a weighted-average grant date fair value of $8.41 per share under the Incentive Plan during the three months ended September 30, 2011. The Company granted 4,317,115 stock options with a weighted-average grant date fair value of $14.45 per share under the Incentive Plan during the nine months ended September 30, 2011.

During the three months ended September 30, 2011, the Company awarded 6,000 restricted stock units ("RSUs") with a weighted-average grant date fair value of $13.79 per share. During the nine months ended September 30, 2011, the Company awarded 276,906 RSUs with a weighted-average grant date fair value of $26.79 per share. During the nine months ended September 30, 2011, 94,021 RSUs vested and the Company issued 58,155 shares of common stock to employees, net of 35,866 shares purchased to satisfy the awardees' minimum tax withholding requirement related to the RSUs vesting. The treasury stock was retired prior to September 30, 2011. During the nine months ended September 30, 2011, 3,400 restricted stock awards vested.

As of September 30, 2011, the total authorized number of shares under the Incentive Plan, including prior plans, was 59,845,420. Shares available for future equity awards were 5,701,431 as of September 30, 2011.