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STOCK-BASED COMPENSATION
9 Months Ended
Dec. 31, 2011
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Disclosure of Compensation Related Costs, Share-based Payments [Text Block]
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
 
Nine Months Ended
 
 
December 31,
 
December 31,
(in thousands)
 
2011
 
2010
 
2011
 
2010
Cost of revenues
 
$
559

 
$
574

 
$
1,664

 
$
1,672

 
 


 


 


 


Research, development and engineering
 
953

 
958

 
2,928

 
2,862

Selling, general and administrative
 
3,067

 
2,644

 
8,675

 
7,431

Stock-based compensation expense included in operating expenses
 
4,020

 
3,602

 
11,603

 
10,293

 
 


 


 


 


Total stock-based compensation expense
 
4,579

 
4,176

 
13,267

 
11,965

Income tax benefit
 
(1,448
)
 
(1,298
)
 
(4,172
)
 
(3,644
)
Total stock-based compensation expense, net of tax
 
$
3,131

 
$
2,878

 
$
9,095

 
$
8,321



Stock Options

The following is a summary of the Company’s stock option activity during the nine months ended December 31, 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
613

 
$
34.75

 
 
 
 
Options exercised
(1,301
)
 
$
20.82

 
 
 
 
Options forfeited or expired
(796
)
 
$
39.03

 
 
 
 
Outstanding at December 31, 2011
3,876

 
$
25.86

 
3.6

 
$
38,710

Vested and expected to vest at December 31, 2011
3,780

 
$
25.68

 
3.6

 
$
38,443

Exercisable at December 31, 2011
2,775

 
$
23.60

 
2.7

 
$
33,850



The total intrinsic value of options exercised during the nine months ended December 31, 2011 and 2010 was $18.6 million and $22.8 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 nine months ended December 31, 2011 was $27.1 million.

As of December 31, 2011, total unrecognized compensation cost related to unvested stock options was $10.0 million which is expected to be recognized over a weighted average period of 2.0 years.

Restricted Stock

The following is a summary of the Company’s restricted stock activity during the nine months ended December 31, 2011:
 
Number of
Shares
 
Weighted
Average
Grant Date
Fair Value
 
(in thousands)
 
 
Unvested at March 31, 2011
688

 
$
29.52

Restricted stock granted
390

 
$
36.36

Restricted stock vested
(192
)
 
$
27.46

Restricted stock forfeited
(50
)
 
$
30.02

Unvested at December 31, 2011
836

 
$
33.29



The weighted average grant-date fair value of awards of restricted stock and restricted stock units (collectively "restricted stock") 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 granted during the nine months ended December 31, 2011 and 2010 was $36.36 and $33.54, respectively. The total fair value of restricted stock that vested during the nine months ended December 31, 2011 and 2010 was $5.3 million and $2.8 million, respectively.

As of December 31, 2011, total unrecognized compensation cost related to unvested restricted stock was $18.9 million which is expected to be recognized over a weighted average period of 2.8 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 options and ESPP shares granted during the respective periods is estimated on the date of grant using the following weighted average assumptions:
 
 
Three Months Ended
 
Nine Months Ended
 
 
December 31,
 
December 31,
Employee Stock Options
 
2011
 
2010
 
2011
 
2010
Expected volatility
 
48.1
%
 
45.3
%
 
45.6
%
 
45.9
%
Risk-free interest rate
 
0.6
%
 
0.9
%
 
1.1
%
 
1.4
%
Expected dividends
 
0.6
%
 
0.6
%
 
0.6
%
 
0.6
%
Expected life (in years)
 
4.0

 
4.2

 
4.0

 
4.2

Weighted-average grant date fair value
 
$
11.86

 
$
12.88

 
$
12.08

 
$
11.86

ESPP
 
 
 
 
 
 
 
 
Expected volatility
 
 
 
 
 
38.7
%
 
41.8
%
Risk-free interest rate
 
 
 
 
 
0.1
%
 
0.2
%
Expected dividends
 
 
 
 
 
0.6
%
 
0.7
%
Expected life (in years)
 
 
 
 
 
0.5

 
0.5

Weighted-average grant date fair value
 
 
 
 
 
$
8.00

 
$
8.02



The Company recognizes the grant-date fair value of stock-based compensation as compensation expense 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 December 31, 2011 and 2010.