Share-Based Compensation

9 Months Ended

Sep. 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				Nine Months Ended
		September 30,				September 30,
		2012		2011		2012		2011
Cost of sales	$	126	$	112	$	331	$	287
Selling and administrative expense		3,170		3,259		9,417		9,088
Research and development expense		299		272		931		735
Total share-based compensation expense	$	3,595	$	3,643	$	10,679	$	10,110

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 nine months ended September 30, 2012 was approximately $1 million. Stock option expense was approximately $1 millionfor both the three months ended September 30, 2012 and 2011, and approximately $4 million and $3 million for the nine months ended September 30, 2012 and 2011, respectively.

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	401		19.31
Exercised	(273)		4.81			4,249
Forfeited or expired	-		-
Outstanding at September 30, 2012	3,715	$	17.84	5	$	9,115
Exercisable at September 30, 2012	2,711	$	16.47	4	$	8,887

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 September 30, 2012, total unrecognized stock-based compensation expense related to unvested stock options, net of forfeitures, was approximately $11 million, before income taxes, and is expected to be recognized over a weighted average period of approximately 3 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 nine months ended September 30, 2012 was approximately$6million. Share grant expense for both the three months ended September 30, 2012 and 2011 was approximately $2 million.Share grant expense for both the nine months ended September 30, 2012 and 2011 was approximately $7 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	380		18.82
Vested	(294)		21.71		6,373
Forfeited	(23)		22.07
Non-vested at September 30, 2012	686	$	21.19	$	14,529

As of September 30, 2012, total unrecognized share-based compensation expense related to non-vested stock awards, net of forfeitures, was approximately $22 million, before income taxes, and is expected to be recognized over a weighted average period of approximately 3years.