Stock-based Compensation

3 Months Ended

Mar. 31, 2014

Share-based Compensation [Abstract]

Stock-based Compensation

Stock-based Compensation

Stock-based compensation expense recognized in the Consolidated Statements of Income are as follows (in thousands):

	Three Months Ended March 31,
	2014		2013
Cost of goods sold	$	653	$	652
Research and development	1,199		1,081
Selling, general and administrative	4,309		3,963
Restructuring expenses	2,595		—
Stock-based compensation expense	$	8,756	$	5,696

Stock-based compensation costs capitalized in inventory are as follows (in thousands):

	March 31,
	2014		2013
Capitalized in inventory	$	729	$	452

As of March 31, 2014, the Company had $32.8 million of total unrecognized stock-based compensation costs, net of estimated forfeitures, to be recognized over a weighted average period of 1.7 years.

The weighted average fair value of stock-based compensation awards granted and vested, and the intrinsic value of options exercised during the period were (in thousands, except per share amounts):

	Three Months Ended March 31,
	2014		2013
Stock Option Awards:
Total fair value of awards vested	$	11	$	13
Total intrinsic value of options exercised	$	8,916	$	1,187
Restricted Stock Unit Awards:
Weighted average grant date fair value per share	$	30.27	$	17.30
Total fair value of awards granted	$	170	$	142
Total fair value of awards vested	$	3,608	$	184

Note 2. Stock-based Compensation - (Continued)

The total amount of cash received from the exercise of stock options in the three months ended March 31,2014 and 2013 was $8.9 million and $1.2 million, respectively, and the related tax impact realized from the exercise of the stock options was a benefit of $2.7 million and $0.3 million, respectively.

 Information with respect to stock option activity is as follows:

	Shares (in  thousands)		Weighted Average Exercise Price		Weighted Average Remaining Contractual Term	Aggregate Intrinsic Value (in thousands)
Outstanding at December 31, 2013	7,338		$	22.38	4.6
Granted	—		—
Exercised	(559	)	18.00
Forfeited	(14	)	27.33
Outstanding at March 31, 2014	6,765		$	22.73	4.2	$	88,047
Exercisable at March 31, 2014	5,553		$	22.27	3.3	$	74,577
Vested and expected to vest at March 31, 2014	6,704		$	22.72	4.2	$	87,374

Information with respect to restricted stock unit activity is as follows:

	Shares (in  thousands)		Weighted Average Grant Date Fair Value
Outstanding at December 31, 2013	2,788		$	21.16
Granted	6		30.27
Vested and distributed	(105	)	25.25
Forfeited	(72	)	26.41
Outstanding at March 31, 2014	2,617		$	20.88

During the three months ended March 31,2014 and 2013, the Company granted approximately 5,600 and 1,200 time-vested restricted stock units, respectively. The fair value of time-vested restricted stock units is fixed and determined on the date of grant based upon the Company's stock price on the date of grant. The weighted average fair values of the time-vested restricted stock units granted during the three months ended March 31,2014 and 2013 were $30.27 and $25.62, respectively.

During the three months ended March 31, 2013, the Company also granted approximately 7,000 market-based restricted stock units. These units may be earned based upon the Company's total shareholder return compared to the total shareholder return of the S&P 500 Index over a three year period. The fair value of the market-based restricted stock units granted during the three months ended March 31, 2013 was $15.87. There were no market-based restricted stock units granted during the three months ended March 31, 2014.

There were no shares issued under the 2011 Employee Stock Purchase Plan ("ESPP") during the three months ended March 31, 2014 and 2013. There are approximately 3,630,000 shares that remain available under the ESPP at March 31, 2014 for future issuance.