Noncash Share-based Compensation (Note)

6 Months Ended

Jun. 30, 2012

Noncash Share-based Compensation [Abstract]

Noncash Share-based Compensation

4. Noncash Share-based Compensation

The Company has two non-cash share based compensation plans; the 1999 Equity Incentive Plan ("1999 Stock Plan") and the 2007 Equity Incentive Plan ("2007 Stock Plan").

1999 Stock Plan. Under the 1999 Stock Plan, the Company is authorized to grant options to purchase shares of common stock to its employees, directors and consultants at the Company’s discretion. The Company’s 1999 Stock Plan was terminated in March 2007 for purposes of granting any future equity awards. There were issued and outstanding stock options to purchase 48,497 shares of the Company’s common stock under the 1999 Stock Plan on June 30, 2012.

2007 Stock Plan. Under the 2007 Stock Plan, the Company is authorized to grant awards to the Company's employees, officers, directors and other individuals providing services to the Company or any of its affiliates. The 2007 Stock Plan has an evergreen provision that allows for an annual increase equal to the lesser of (i) 3.5% of the Company’s outstanding shares (ii) 900,000 shares or (iii) any lesser amount determined by the Compensation Committee of the Board of Directors.

During the three months ended June 30, 2012, the Company granted 31,500 shares of RSUs to certain non-executive employees. These units vest over four years, convert to shares of common stock upon certain triggering events, and carried a weighted average grant-date fair value of $15.25. The Company did not grant any MSUs, stock options or SARs during the three months ended June 30, 2012.

During the six months ended June 30, 2012, the Company granted 583,800 shares of RSUs with a weighted average grant-date fair value of $18.83. During the six months ended June 30, 2012, the Company granted 205,000 shares of MSUs to certain executive officers and non-executive employees. These units vest on January 1, 2014, convert to shares of common stock upon certain triggering events and carried a weighted average grant-date fair value of $26.08 upon their issuance. The Company did not grant any stock options or SARs during the six months ended June 30, 2012.

Share-based compensation expense is allocated to expense categories on the unaudited condensed consolidated statements of comprehensive income. The following table summarizes share-based compensation expense included in the Company’s unaudited condensed consolidated statements of comprehensive income for the three and six months ended June 30, 2012 and 2011:

	For the Three Months Ended June 30,				For the Six Months Ended June 30,
	2012		2011		2012		2011
Share-based compensation:
Cost of revenue:
License and implementation	$	301	$	278	$	630	$	612
Total included in cost of revenue	301		278		630		612
Operating expenses:
Selling, marketing, general and administrative	1,636		932		2,904		2,004
Research and development	503		395		938		745
Total included in operating expenses	2,139		1,327		3,842		2,749
Total share-based compensation expense	$	2,440	$	1,605	$	4,472	$	3,361

In February 2012, the Company increased the number of shares available for issuance by 900,000 to 6,368,000 under the evergreen provision in the 2007 Stock Plan. As of June 30, 2012, 686,482 shares remained available for issuance under the 2007 Stock Plan. At June 30, 2012, there was an estimated $23.5 million of total unrecognized compensation costs related to share-based compensation arrangements. These costs will be recognized over a weighted average period of 2.8 years.