STOCK-BASED COMPENSATION

3 Months Ended

Jun. 30, 2011

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

7. STOCK-BASED COMPENSATION

The following table summarizes the amount of stock-based compensation expense included in the Condensed consolidated statements of operations:

	Three Months Ended
	June 30,
(in thousands)	2011			2010
Cost of revenues	$	546		$	533
Research, development and engineering	947			937
Selling, general and administrative	2,686			2,307
Stock-based compensation expense included in operating expenses	3,633			3,244
Total stock-based compensation	4,179			3,777
Income tax benefit	(1,282		)	(1,041		)
Total stock-based compensation, net of tax	$	2,897		$	2,736

Stock Options

The following is a summary of the Company’s stock option activity during the three months ended June 30, 2011:

	Options Outstanding
	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(in thousands)				(in years)	(in thousands)
Outstanding at March 31, 2011	5,360		$	25.58
Options granted	327		$	36.51
Options exercised	(552	)	$	20.87
Options forfeited or expired	(52	)	$	36.87
Outstanding at June 30, 2011	5,083		$	26.68	3.2	$	55,305
Vested and expected to vest at June 30, 2011	4,968		$	26.56	3.2	$	54,715
Exercisable at June 30, 2011	3,778		$	25.89	2.3	$	44,704

The total intrinsic value of options exercised during the three months ended June 30, 2011 and 2010 was $9.1 million and $3.7 million, respectively.  Intrinsic value is defined as the amount by which the fair value of the underlying stock exceeds the exercise price at the time of option exercise. The total cash received as a result of stock option exercises during the three months ended June 30, 2011 was $11.5 million.

As of June 30, 2011, total unrecognized compensation cost related to unvested stock options was $11.0 million which is expected to be recognized over a weighted average period of 1.9 years.

Restricted Stock

The following is a summary of the Company’s restricted stock activity during the three months ended June 30, 2011:

	Number of Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Non-vested at March 31, 2011	688		$	29.52
Restricted stock granted	366		$	36.60
Restricted stock vested	(46	)	$	29.02
Restricted stock forfeited	(3	)	$	33.01
Non-vested at June 30, 2011	1,005		$	32.23

The weighted average grant-date fair value of awards of restricted stock and restricted stock units is based on the quoted market price of the Company's common stock on the date of grant. The weighted average grant-date fair value of restricted stock awards granted during the three months ended June 30, 2011 and 2010 was $36.60 and $30.20, respectively. The total fair value of restricted stock awards that vested during the three months ended June 30, 2011 and 2010 was $1.3 million and $0.3 million, respectively.

As of June 30, 2011, total unrecognized compensation cost related to non-vested restricted stock awards was $22.5 million, which is expected to be recognized over a weighted average period of 3.1 years.  

Valuation Assumptions

The Company estimates the fair value of stock options and Employee Stock Purchase Plan (“ESPP”) shares using a Black-Scholes option valuation model.  The fair value of stock option and ESPP shares granted during the respective periods is estimated on the date of grant using the following weighted average assumptions:

	Three Months Ended
	June 30,
Employee Stock Options	2011			2010
Expected volatility	44.4		%	46.1		%
Risk-free interest rate	1.4		%	1.9		%
Expected dividends	0.6		%	0.7		%
Expected life (in years)	4.0			4.2
Weighted-average grant date fair value	$	12.58		$	11.26

The Company recognizes the grant-date fair value of stock-based compensation as compensation expense in the Condensed consolidated statements of operations using the straight-line attribution approach over the service period for which the stock-based compensation is expected to vest.

No purchase rights were granted under the ESPP during the three months ended June 30, 2011 and 2010.