Stock-Based Compensation

6 Months Ended

Jun. 30, 2013

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

STOCK-BASED COMPENSATION

Employee Share Purchase Plan

At our 2013 Annual Meeting of Shareholders, which was held on May 9, 2013, our shareholders approved an amendment to our Employee Share Purchase Plan to increase the number of shares of our common stock reserved for issuance under the plan from 3,700,000 to 3,950,000.

1995 Stock Incentive Plan and 1995 Supplemental Stock Incentive Plan

Also at our 2013 Annual Meeting of Shareholders, our shareholders approved an amendment to our 1995 Stock Incentive Plan (the “1995 Plan”) to increase the number of shares of our common stock reserved for issuance under the plan from 10,750,000 to 11,000,000. Our 1995 Supplemental Stock Incentive Plan (the “1995 Supplemental Plan”) allows for the issuance of a maximum of 500,000 shares of our common stock.

The following table sets forth certain information regarding the 1995 Plan and the 1995 Supplemental Plan:



	June 30, 2013
Shares available for grant	2,331,500
Shares of common stock reserved for issuance	3,910,876

The following table sets forth certain information regarding all options outstanding and exercisable:



	June 30, 2013
	Options Outstanding		Options Exercisable
Number	767,869		199,785
Weighted average exercise price	$	39.38	$	28.71
Aggregate intrinsic value	$ 25.8 million		$ 8.9 million
Weighted average remaining contractual term	5.0 years		3.9 years

The following table sets forth certain information regarding all RSUs nonvested and expected to vest:



	June 30, 2013
	RSUs Nonvested		RSUs Expected to Vest
Number	811,509		718,887
Weighted average grant date per share fair value	$	43.13	$	42.67
Aggregate intrinsic value	$ 59.3 million		$ 52.5 million
Weighted average remaining term to vest	1.4 years		1.4 years

As of June 30, 2013, unrecognized stock-based compensation related to outstanding, but unvested stock options and RSUs was $35.5 million, which will be recognized over the weighted average remaining vesting period of 1.8 years.

Stock-Based Compensation Expense

Our stock-based compensation expense was included in our Consolidated Statements of Operations as follows (in thousands):



	Thirteen Weeks Ended				Twenty-Six Weeks Ended
	June 30, 2013		July 1, 2012		June 30, 2013		July 1, 2012
Cost of sales	$	616	$	365	$	1,211	$	864
Research and development	545		443		1,076		957
Selling, general and administrative	3,187		2,255		6,425		4,855
Total stock-based compensation	$	4,348	$	3,063	$	8,712	$	6,676

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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