Share-Based Compensation (Tables)

9 Months Ended

Sep. 30, 2013

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,
	2013			2012			2013			2012
Cost of revenues	$	270		$	274		$	784		$	840
Research and development	704			646			2,008			2,203
Selling, general and administrative	789			719			2,284			2,287
Pre-tax share-based compensation expense	1,763			1,639			5,076			5,330
Less income tax benefit	(565		)	(558		)	(1,667		)	(1,863		)
After tax impact of share-based compensation on net income	$	1,198		$	1,081		$	3,409		$	3,467

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,
	2013		2012		2013		2012
Expected term (years)	5.8		5.8		5.9		5.8
Stock volatility	35.0	%	36.0	%	34.8	%	36.1	%
Risk free interest rates	1.7	%	0.8	%	1.4	%	1.0	%
Dividends during expected terms	2.2	%	1.5	%	1.8	%	1.6	%