STOCKHOLDERS EQUITY

12 Months Ended

Sep. 30, 2012

STOCKHOLDERS EQUITY [Abstract]

STOCKHOLDERS EQUITY

14.   STOCKHOLDERS’ EQUITY

The following is a summary of our capital stock activity over the past three years:

	Number of Shares
	Common Stock	Treasury Stock
September 30, 2009	26,143,116	2,698,234
Exercise of stock options	74,019
Restricted stock under EIP, net of forfeitures	127,390
Restricted stock under Deposit Share Plan	2,140
Common stock under ESPP	38,050
Repurchases of common stock under share repurchase plans		723,184
Repurchases of common stock – other		24,651
September 30, 2010	26,384,715	3,446,069
Exercise of stock options	1,085,965
Restricted stock under EIP, net of forfeitures	115,069
Restricted stock under Deposit Share Plan, net of forfeitures	5,223
Common stock under ESPP	61,364
Repurchases of common stock under share repurchase plans		1,235,668
Repurchases of common stock – other		33,840
September 30, 2011	27,652,336	4,715,577
Exercise of stock options	976,645
Restricted stock under EIP and OIP, net of forfeitures	159,879
Restricted stock under Deposit Share Plan, net of forfeitures	5,022
Common stock under ESPP	70,645
Repurchases of common stock under share repurchase plans		929,407
Repurchases of common stock – other		37,304
September 30, 2012	28,864,527	5,682,288

COMMON STOCK

Each share of common stock, including of restricted stock awards, but not restricted stock units, entitles the holder to one vote on all matters submitted to a vote of Cabot Microelectronics’ stockholders.  Common stockholders are entitled to receive ratably the dividends, if any, as may be declared by the Board of Directors.  The number of authorized shares of common stock is 200,000,000 shares.

SHARE REPURCHASES

In November 2010, our Board of Directors authorized a share repurchase program for up to $125,000 of our outstanding common stock, which became effective on the authorization date.  We repurchased 671,100 shares for $29,105 during fiscal 2011 and we repurchased 929,407 shares for $33,026 during fiscal 2012 under this program.  As of December 13, 2011, we had $82,869 remaining under this share repurchase program.  In conjunction with a new capital management initiative, on December 13, 2011, our Board of Directors authorized an increase in the amount available under our share repurchase program to $150,000.  With this increased authorization, as of September 30, 2012, $130,000 remains outstanding under our share repurchase program.  Shares are repurchased from time to time, depending on market conditions, in open market transactions, at management’s discretion.  We repurchased 564,568 shares for $25,000 in fiscal 2011 under a prior share repurchase program, which was completed during the fiscal quarter ended March 31, 2011.  During fiscal 2010, we repurchased 723,184 shares of common stock under this prior program at a cost of $24,998.  To date, we have funded share repurchases under our share repurchase program from our existing cash balance, and anticipate we will continue to do so.  The program, which became effective on the authorization date, may be suspended or terminated at any time, at the Company’s discretion.  For additional information on share repurchases, see Part II, Item 5. “Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities”.

Separate from this share repurchase program, a total of 37,304, 33,840 and 24,651 shares were purchased during fiscal 2012, 2011 and 2010, respectively, pursuant to the terms of our EIP and OIP as shares withheld from award recipients to cover payroll taxes on the vesting of shares of restricted stock granted under the EIP and OIP.