STOCKHOLDERS' EQUITY

9 Months Ended

Sep. 30, 2011

STOCKHOLDERS' EQUITY [Abstract]

STOCKHOLDERS' EQUITY

NOTE 2 - STOCKHOLDERS' EQUITY

STOCK-BASED COMPENSATION

The Company records stock-based compensation in accordance with the provisions of ASC 718, “Compensation-Stock Compensation.” The Company's results for the three and nine months ended September 30, 2011 and 2010 reflected the following stock-based compensation cost, and such compensation cost had the following effects on net earnings:

	Increase/(Decrease) for the Three Months Ended September 30,
	2011			2010
Cost of sales	$	145		$	110
Operating expenses		761			924
Net earnings		(569	)		(614	)

	Increase/(Decrease) for the Nine Months Ended September 30,
	2011			2010
Cost of sales	$	436		$	337
Operating expenses		2,404			2,650
Net earnings		(1,782	)		(1,837	)

As required by ASC 718, the Company has made an estimate of expected forfeitures based on its historical experience and is recognizing compensation cost only for those stock-based compensation awards expected to vest.

The Company's stock incentive plans allow for the granting of restricted stock awards and options to purchase common stock. Both incentive stock options and nonqualified stock options can be awarded under the plans. No option will be exercisable for longer than ten years after the date of grant. The Company has approved and reserved a number of shares to be issued upon exercise of the outstanding options that is adequate to cover all exercises. As of September 30, 2011, the plans had 4,798,084 shares available for future awards. Compensation expense for stock options and restricted stock awards is recognized on a straight-line basis over the vesting period, generally three years for stock options, four years for employee restricted stock awards, and four to seven years for non-employee director restricted stock awards. Certain awards provide for accelerated vesting if there is a change in control (as defined in the plans) or other qualifying events.

Option activity for the nine months ended September 30, 2011 and 2010 is summarized below:

For the nine months ended September 30, 2011	Shares (000s)			Weighted Average Exercise Price		Aggregate Intrinsic Value ($000s)		Weighted Average Remaining Contractual Term
Outstanding as of December 31, 2010		2,955		$	14.21	$	57,930
Granted		15			40.59
Exercised		(226	)		11.52
Forfeited		(50	)		24.47
Outstanding as of September 30, 2011		2,694		$	14.39	$	61,814		5.7
Exercisable as of September 30, 2011		2,006		$	10.69	$	53,394		4.7

For the nine months ended September 30, 2010	Shares (000s)			Weighted Average Exercise Price		Aggregate Intrinsic Value ($000s)		Weighted Average Remaining Contractual Term
Outstanding as of December 31, 2009		3,286		$	11.28	$	36,342
Granted		2			23.53
Exercised		(370	)		6.72
Forfeited		(6	)		17.83
Outstanding as of September 30, 2010		2,912		$	11.85	$	55,350		6.1
Exercisable as of September 30, 2010		2,069		$	9.29	$	44,644		5.1

ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted average assumptions: dividend yields of 0.5% and 0.5%; expected volatilities of 36% and 45%; risk-free interest rates of 1.4% and 1.7%; and expected lives of 4.5 and 4.0, in each case for the nine months ended September 30, 2011 and 2010, respectively.

The Company used a projected expected life for each award granted based on historical experience of employees' exercise behavior. Expected volatility is based on the Company's historical volatility levels. Dividend yields are based on the Company's historical dividend yields. Risk-free interest rates are based on the implied yields currently available on U.S. Treasury zero coupon issues with a remaining term equal to the expected life.

Other information pertaining to option activity during the three and nine months ended September 30, 2011 and 2010 was as follows:

	Three Months Ended September 30,				Nine months ended September 30,
	2011		2010		2011		2010
Weighted-average fair value of options granted	$	13.48	$	8.58	$	12.37	$	8.32
Total intrinsic value of stock options exercised ($000s)	$	952	$	4,400	$	6,081	$	6,919

Non-vested restricted stock activity for the nine months ended September 30, 2011 and 2010 is summarized below:

Nine months ended September 30, 2011	Shares (000s)			Weighted Average Grant Date Fair Value
Non-vested balance as of December 31, 2010		363		$	17.66
Granted		1			40.88
Vested		(7	)		12.41
Forfeited		(17	)		19.12
Non-vested balance as of September 30, 2011		340		$	17.77

Nine months ended September 30, 2010	Shares (000s)			Weighted Average Grant Date Fair Value
Non-vested balance as of December 31, 2009		418		$	14.56
Vested		(38	)		13.56
Non-vested balance as of September 30, 2010		380		$	14.66

As of September 30, 2011 and 2010, there was $5,658 and $5,456 respectively, of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. As of September 30, 2011, the unrecognized compensation cost is expected to be recognized over a weighted-average period of 1.5 years. The Company estimates that share-based compensation expense for the year ended December 31, 2011 will be approximately $3,800.

STOCK SPLITS AND REPURCHASE OF COMMON STOCK

On December 11, 2009, the Board of Directors of the Company approved a three-for-two split of the Company's common stock to be effected in the form of a stock dividend to shareholders of record on December 30, 2009.  Such stock dividend was made on January 20, 2010.  The stock split was recognized by reclassifying the par value of the additional shares resulting from the split, from additional paid-in capital to common stock. The stock split was applied retroactively to all periods presented.

The Company has an approved stock repurchase program. The total authorization under this program is 3,763,038 shares. Since the inception of the program, a total of 2,010,488 shares have been purchased, none of which remained in treasury at September 30, 2011 or 2010. During the nine months ended September 30, 2011, a total of 19,545 shares have been purchased at an average cost of $5.55 per share. 16,830 of these shares were related to the repurchase of forfeited restricted shares. The Company intends to acquire shares from time to time at prevailing market prices if and to the extent it deems it advisable to do so based on its assessment of corporate cash flow, market conditions and other factors.