Share-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2014

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 Statements of Income (in thousands):

	Three Months Ended						Six Months Ended
	June 30,						June 30,
	2014			2013			2014			2013
Cost of revenues	$	243		$	270		$	477		$	514
Research and development	833			652			1,523			1,304
Selling, general and administrative	873			772			1,671			1,495
Pre-tax share-based compensation expense	1,949			1,694			3,671			3,313
Less income tax effect	(682		)	(552		)	(1,231		)	(1,102		)
Net share-based compensation expense	$	1,267		$	1,142		$	2,440		$	2,211

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				Six Months Ended
	June 30,				June 30,
	2014		2013		2014		2013
Expected term (years)	5.9		5.8		6.0		5.9
Stock volatility	30.5	%	36.0	%	30.8	%	34.7	%
Risk free interest rates	2.0	%	1.6	%	2.0	%	1.3	%
Dividends during expected terms	1.8	%	1.7	%	1.8	%	1.7	%