Share-Based Compensation

3 Months Ended

Mar. 31, 2014

Share Based Compensation [Abstract]

Share-Based Compensation [TextBlock]

NOTE F – 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,
		2014		2013
Cost of sales	$	96	$	123
Selling and administrative expense		2,850		2,843
Research and development expense		273		290
Total share-based compensation expense	$	3,219	$	3,256

Stock Options.Stock options generally vest in equal annual installments over a four-year period and expire eight 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, 2014 was approximately $0 million. Stock option expense was approximately $1 million for both the three months ended March 31, 2014 and 2013.

A summary of the stock option grants 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, 2014	3,126	$	18.93	4	$	17,461
Granted	-		-
Exercised	(41)		9.70			560
Forfeited or expired	(2)		29.21
Outstanding at March 31, 2014	3,083	$	19.04	4	$	23,126
Exercisable at March 31, 2014	2,470	$	18.14	3	$	20,601

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, 2014, total unrecognized share-based compensation expense related to unvested stock options, net of forfeitures, was approximately $5 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.

Share grant expense for the three months ended March 31, 2014and 2013 was approximately $2 million and $1 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, 2014	1,131	$	22.35	$	26,656
Granted	3		22.90
Vested	(7)		23.34		150
Forfeited	(4)		23.13
Non-vested at March 31, 2014	1,123	$	22.34	$	29,324

As of March 31, 2014, total unrecognized share-based compensation expense related to non-vested stock awards, net of forfeitures, was approximately $15 million, before income taxes, and is expected to be recognized over a weighted average period of approximately 2 years.