Share-Based Compensation

6 Months Ended

Jun. 30, 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				Six Months Ended
		June 30,				June 30,
		2012		2011		2012		2011
Cost of sales	$	102	$	89	$	205	$	175
Selling and administrative expense		3,121		2,961		6,247		5,829
Research and development expense		316		233		632		463
Total share-based compensation expense	$	3,539	$	3,283	$	7,084	$	6,467

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-Merton option pricing model.

       The total net cash proceeds received from stock option exercises during the six months ended June 30, 2012 was approximately $1 million. Stock option expense was approximately $1 millionfor both the three months ended June 30, 2012 and 2011, and approximately $2 million for both the six months ended June 30, 2012 and 2011.

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	382		19.35
Exercised	(268)		4.66			4,207
Forfeited or expired	-		-
Outstanding at June 30, 2012	3,701	$	17.83	5	$	12,415
Exercisable at June 30, 2012	2,698	$	16.44	4	$	11,916

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 June 30, 2012, total unrecognized stock-based compensation expense related to unvested stock options, net of forfeitures, was approximately $12 million, before income taxes, and is expected to be recognized over a weighted average period of approximately 5 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 six months ended June 30, 2012 was approximately$3million. Share grant expense for both the three months ended June 30, 2012 and 2011 was approximately $3 million and $2 million, respectively.Share grant expense for the six months ended June 30, 2012 and 2011 was approximately $5 million and $4 million, respectively.

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	132		19.46
Vested	(122)		22.11		2,697
Forfeited	(15)		22.49
Non-vested at June 30, 2012	618	$	22.34	$	13,802

As of June 30, 2012, total unrecognized share-based compensation expense related to non-vested stock awards, net of forfeitures, was approximately $21 million, before income taxes, and is expected to be recognized over a weighted average period of approximately 3years.