Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2012

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

Share-based compensation expense

The following table summarizes total share-based compensation expense included in the Condensed Consolidated Statement of Operations (in thousands):

	Three Months Ended						Nine Months Ended
	September 30,						September 30,
	2012			2011			2012			2011
Cost of revenues	$	274		$	246		$	840		$	772
Research and development	646			615			2,203			1,666
Selling, general and administrative	719			629			2,287			1,737
Pre-tax share-based compensation expense	1,639			1,490			5,330			4,175
Less income tax effect	(558		)	(512		)	(1,863		)	(1,504		)
Net share-based compensation expense	$	1,081		$	978		$	3,467		$	2,671

Stock options granted under the Company's option plans

The fair value of the Company’s stock options granted under the Company’s option plans was estimated at the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions:

	Three Months Ended				Nine Months Ended
	September 30,				September 30,
	2012		2011		2012		2011
Expected term (years)	5.8		5.6		5.8		5.7
Stock volatility	36.0	%	41.3	%	36.1	%	40.5	%
Risk free interest rates	0.8	%	1.1	%	1.0	%	1.9	%
Dividends during expected terms	1.5	%	1.7	%	1.6	%	1.4	%