Share-Based Compensation

3 Months Ended

Mar. 31, 2012

Share Based Compensation [Abstract]

Share-Based Compensation [TextBlock]

NOTE G – Share-Based Compensation

The following table shows the total compensation expensed for share-based compensation plans, including stock options and share grants,recognized in the statements of operations (in thousands):

		Three Months Ended
		March 31,
		2012		2011
Cost of sales	$	103	$	86
Selling and administrative expense		3,126		2,868
Research and development expense		316		230
Total share-based compensation expense	$	3,545	$	3,184

Stock Options. Stock options generally vest in equal annual installments over a four-year period and expire ten years after the grant date, and expense was estimated on the date of grant using the Black-Scholes option pricing model.

       The total net cash proceeds received from stock option exercises during the three months ended March 31, 2012 was approximately $0 million. Stock option expense for both the three months ended March 31, 2012 and 2011 was approximately $1 million.

A summary of the stock option plans is as follows:

Stock Options	Shares (000)		Weighted Average Exercise Price	Weighted Average Remaining Contractual Term (yrs)		Aggregate Intrinsic Value ($000)
Outstanding at January 1, 2012	3,587	$	16.69	5	$	22,299
Granted	12		21.83
Exercised	(62)		7.51			1,066
Forfeited or expired	-		-
Outstanding at March 31, 2012	3,537	$	16.86	5	$	26,218
Exercisable at March 31, 2012	2,560	$	14.69	4	$	23,111

The aggregate intrinsic value in the table above is before applicable income taxes and represents the amount option holders would have received if all options had been exercised on the last business day of the period indicated, based on the Company's closing stock price.

As of March 31, 2012, total unrecognized stock-based compensation expense related to unvested stock options, net of forfeitures, was approximately $9 million, before income taxes, and is expected to be recognized over a weighted average period of approximately 2 years.

Share Grants. Restricted stock awards and restricted stock units generally vest in equal annual installments over a four-year period.

The total fair value of restricted stock awards vested during the three months ended March 31, 2012 was approximately$1million. Share grant expense for both the three months ended March 31, 2012 and 2011 was approximately $2 million.

A summary of the Company's non-vested share grants is as follows:

Share Grants	Shares (000)		Weighted-Average Grant-Date Fair Value		Aggregate Intrinsic Value ($000)
Non-vested at January 1, 2012	623	$	22.91	$	14,279
Granted	8		21.83
Vested	(9)		23.83		210
Forfeited	(6)		23.00
Non-vested at March 31, 2012	616	$	22.88	$	14,104

As of March 31, 2012, total unrecognized share-based compensation expense related to non-vested stock awards, net of forfeitures, was approximately $20 million, before income taxes, and is expected to be recognized over a weighted average period of approximately 3years.