XML 17 R33.htm IDEA: XBRL DOCUMENT

Stock-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2012

Weighted-Average Assumptions For Option Awards Granted


	Three Months Ended March 31
	2012			2011
Expected volatility		36	%		34	%
Expected term (in years)		5.7			5.7
Risk-free interest rate		1.0	%		2.1	%
Expected dividend yield		None			None

Summary Of Employee Stock Options Activity


	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, 2011		15,779		$	17.26
Granted		133		$	19.36
Exercised		(863	)	$	17.27
Canceled/forfeited/expired		(427	)	$	18.25

Outstanding at March 31, 2012		14,622		$	17.24		7.22	$	93,754

Vested or expected to vest at March 31, 2012		13,502		$	17.19		7.07	$	87,229

Exercisable at March 31, 2012		5,989		$	15.42		5.00	$	48,501

(1)	These amounts represent the difference between the exercise price and $23.27, the closing price of Quest Software, Inc. stock on March 31, 2012 as reported on the NASDAQ National Market, for all options outstanding that have an exercise price currently below the closing price.

Summary Of RSU Awards Activity


	Number of Shares			Weighted-Average Grant Date Fair Value (per share)
Nonvested at January 1, 2012		236,331		$	15.88
Granted		—		$	—
Vested		(86,524	)	$	14.66
Forfeited		(9,623	)	$	15.91

Nonvested at March 31, 2012⁽¹⁾		140,184		$	16.63

(1)	132,135 of these shares are expected to vest.

Classification Of Stock-Based Compensation Expense


	Three Months Ended March 31
	2012		2011
Cost of services	$	232	$	316
Sales and marketing		1,728		2,109
Research and development		1,497		2,152
General and administrative		2,628		2,836

Total stock-based compensation		6,083		7,413
Tax benefit associated with stock-based compensation expense ⁽¹⁾		2,385		2,869

Reduction of net income	$	3,698	$	4,544

(1)

The recognized tax benefit related to stock-based compensation expense was estimated to be 39.2% and 38.7% for the quarter ended March 31, 2012 and 2011, respectively. This approximates the blended Federal and State statutory tax rate after the benefit for state taxes.

- 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