Stock-Based Compensation And Employee Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2011

Stock-Based Compensation And Employee Benefit Plans [Abstract]

Summary Activity Of Employee Stock Options


	Number of Shares (in thousands)			Weighted-Average Exercise Price (per share)		Weighted-Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in thousands) ⁽¹⁾
Outstanding at December 31, 2010		13,130		$	16.93
Granted		6,425		$	19.30
Exercised		(1,875	)	$	17.24
Canceled/forfeited/expired		(1,901	)	$	21.98

Outstanding at December 31, 2011		15,779		$	17.26		7.38	$	42,593

Vested or expected to vest at December 31, 2011		14,423		$	17.17		7.21	$	39,946

Exercisable at December 31, 2011		5,213		$	14.10		4.34	$	25,746

(1)	These amounts represent the difference between the exercise price and $18.60, the closing price of Quest Software, Inc. stock on December 31, 2011 as reported on the NASDAQ National Market, for all options outstanding that have an exercise price currently below the closing price.

Summary Activity Of RSU Awards


	Number of Shares		Weighted-Average Grant Date Fair Value (per share)
Non-vested at January 1, 2011		787,798	$	14.99
Granted		—	$	—
Vested		(474,679)	$	14.44
Forfeited		(76,788)	$	15.70

Non-vested at December 31, 2011⁽¹⁾		236,331	$	15.88

(1)	225,744 of these shares are expected to vest.

Classification Of Stock-Based Compensation Expense


	Year Ended December 31,
	2011		2010		2009
Cost of licenses	$	—	$	1	$	1
Cost of services		1,042		1,114		737
Sales and marketing		7,150		6,861		4,997
Research and development		8,180		8,015		5,385
General and administrative		8,897		7,109		4,058

Total stock-based compensation		25,269		23,100		15,178
Tax benefit associated with stock-based compensation expense ⁽¹⁾		9,905		8,940		6,071

Reduction of net income	$	15,364	$	14,160	$	9,107

(1)

The recognized tax benefit related to stock-based compensation expense is estimated to be 39.2%, 38.7% and 40% in fiscal years 2011, 2010 and 2009, respectively. These rates approximate the blended Federal and State statutory tax rate after the benefit for state taxes which provides an accurate estimate of the current and deferred tax benefits ultimately received from stock-based compensation.

Weighted-Average Assumptions For Option Awards Granted

Year Ended December 31

2011

2010

2009

Range:

Weighted
Average:

Range:

Weighted
Average:

Range:

Weighted
Average:

Risk-free interest rate

0.8% to 2.5%

1.4%

1.1% to 3.1%

2.1%

1.6% to 3.2%

2.6%

Expected term (in years)

5.2 to 6.8

5.7

5.3 to 8.0

5.9

5.4 to 5.9

5.9

Expected volatility

34% to 36%

34%

34% to 37%

35%

36% to 40%

38%

Expected dividend yield

None

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

+ References+ Details

- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

+ References+ Details