Stockholders' Equity

9 Months Ended

Sep. 30, 2012

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Stockholders’ Equity

Stock Repurchase Program

On April 28, 2010, the Company announced that its Board of Directors had authorized a $150.0 million stock repurchase program of the Company’s common stock from time to time, over the twelve months commencing in May 2010, on the open market or in privately negotiated transactions. On April 19, 2011, the Company’s Board of Directors authorized an extension of the stock repurchase program authorizing up to an additional $150.0 million of repurchases over the twelve months commencing in May 2011. The unused balance from the May 2010 repurchase program was not carried forward for future purchases. On August 8, 2011, the Company's Board of Directors authorized an additional $250.0 million of stock repurchases over the twelve-month period that commenced in May 2011. As a result, the total authorized funding for stock repurchases during that twelve-month period increased to $400.0 million. On April 25, 2012, the Company announced that its Board of Directors had authorized an extension of its share repurchase program. Under this extension, the Company may purchase up to $150.0 million of its common stock during the twelve-month period beginning in May 2012. The unused balance from the May and August 2011 extensions was not carried forward for future purchases. The timing and amount of any shares repurchased will be determined by the Company’s management based on its evaluation of market conditions and other factors. Repurchases may also be made under a Rule 10b5-1 plan, which would permit the Company to repurchase shares when the Company might otherwise be precluded from doing so under insider trading laws. Subject to applicable securities laws, the Company may choose to suspend or discontinue the repurchase program at any time.

During the three and nine months ended September 30, 2012, the Company repurchased 1.2 million and 3.6 million shares, respectively, of its common stock for $36.5 million and $111.6 million, respectively. During the three and nine months ended September 30, 2011, the Company repurchased 6.8 million and 9.4 million shares of its common stock, respectively, for $155.1 million and $248.4 million, respectively. As of September 30, 2012, the Company had $68.4 million remaining available for future purchases of shares under the current repurchase program.

Stock-Based Compensation Expense

The following table summarizes the components of total stock-based compensation expense included in the Company’s consolidated statements of operations for the three and nine months ended September 30, 2012 and 2011 (in thousands):

	For the Three Months Ended September 30,						For the Nine Months Ended September 30,
	2012			2011			2012			2011
Stock-based compensation by type of award:
Stock options	$	3,579		$	3,312		$	11,045		$	10,518
Deferred stock units	—			—			1,885			1,885
RSUs	20,159			12,628			58,621			31,276
Shares issued under the Employee Stock Purchase Plan	1,458			1,142			4,323			4,192
Amounts capitalized as internal-use software	(2,561		)	(1,941		)	(6,694		)	(5,406		)
Total stock-based compensation before income taxes	22,635			15,141			69,180			42,465
Less: Income tax benefit	(9,242		)	(5,746		)	(27,114		)	(15,119		)
Total stock-based compensation, net of taxes	$	13,393		$	9,395		$	42,066		$	27,346
Effect of stock-based compensation on income by line item:
Cost of revenues	$	684		$	634		$	2,251		$	1,779
Research and development expense	4,427			2,629			13,258			7,515
Sales and marketing expense	10,896			6,951			32,024			19,112
General and administrative expense	6,628			4,927			21,647			14,059
Provision for income taxes	(9,242		)	(5,746		)	(27,114		)	(15,119		)
Total cost related to stock-based compensation, net of taxes	$	13,393		$	9,395		$	42,066		$	27,346

In addition to the amounts of stock-based compensation reported in the table above, the Company’s consolidated statements of operations for the three and nine months ended September 30, 2012 include stock-based compensation reflected as a component of amortization of capitalized internal-use software of $2.0 million and $5.7 million, respectively, before taxes. The Company's consolidated statements of operations for the three and nine months ended September 30, 2011 also include stock-based compensation reflected as a component of amortization of capitalized internal-use software of $1.6 million and $5.6 million, respectively, before taxes.