Share-Based Compensation

3 Months Ended

Mar. 31, 2013

Share Based Compensation [Abstract]

Share-Based Compensation [TextBlock]

NOTE J – 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,
		2013		2012
Cost of sales	$	123	$	103
Selling and administrative expense		2,843		3,126
Research and development expense		290		316
Total share-based compensation expense	$	3,256	$	3,545

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 three months ended March 31, 2013 was approximately $0 million. Stock option expense was approximately $1 million for both thethree months ended March 31, 2013 and 2012.

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, 2013	3,713	$	17.85	5	$	9,744
Exercised	(5)		8.57			79
Forfeited or expired (1)	(410)		20.34
Outstanding at March 31, 2013	3,298	$	17.55	4	$	16,622
Exercisable at March 31, 2013	2,546	$	16.37	3	$	15,306

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• The Compensation Committee of the Board of Directors reviewed the grants of stock options to the Company's Chief Executive Officer in 2009, 2010, 2011 and 2012 (each such annual grant, an “Option Grant”), and approved a Confirmation Agreement in which the Company and the Company's Chief Executive Officer agreed and confirmed that the Company's Chief Executive Officer will assert no claim that any Option Grant in 2009, 2010, 2011 or 2012 provided for the purchase of more than 100,000 shares of the Company's Common Stock, and that each Option Grant document be deemed amended to reflect the foregoing 100,000 share limitation.

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, 2013, total unrecognized share-based compensation expense related to unvested stock options, net of forfeitures, was approximately $6 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, 2013 was approximately$2million. Share grant expense for both the three months ended March 31, 2013 and 2012 was approximately $1 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, 2013	1164	$	20.42	$
Granted	2		18.03
Vested	(6)		23.64		113
Forfeited	(9)		20.80
Non-vested at March 31, 2013	1151	$	20.51	$	24,184

As of March 31, 2013, total unrecognized share-based compensation expense related to non-vested stock awards, net of forfeitures, was approximately $18 million, before income taxes, and is expected to be recognized over a weighted average period of approximately 2years.