STOCK BASED COMPENSATION

6 Months Ended

Jun. 30, 2011

STOCK BASED COMPENSATION

NOTE 7 – STOCK BASED COMPENSATION

At June 30, 2011 we had stock options outstanding under the following plans:

(i) The 2011 Incentive Stock Plan, which our stockholders approved in May 2011;

(ii) The 2008 Incentive Stock Plan, which our stockholders approved in May 2008;

(iii) the 2005 Incentive Stock Plan, which our stockholders approved in April 2005;

(iv) the 2000 Nonstatutory Stock Option Plan, which expired in February 2010;

(v) the 1997 Stock Option Plan, which expired in January 2007;

(vi) the Directors Stock Option Plan, which expired in May 2006;

(vii) the 1995 Incentive Compensation Plan, which expired in July 2005;

(viii) our Employee Stock Purchase Plan (ESPP), which our stockholders approved in May 2001.

The following table presents the total stock-based compensation expense resulting from stock option awards and the ESPP included in the condensed consolidated statements of income:

In thousands
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Cost of revenues – stock option plan	$	30	$	55	$	56	$	115
Selling, general and administrative – stock option plan		3,362		3,533		6,786		7,123
Selling, general and administrative – restricted stock units		216		86		374		86
Selling, general and administrative – ESPP		247		193		502		417
Total pre-tax expense	$	3,855	$	3,867	$	7,718	$	7,741

As of June 30, 2011, there was $33.6 million of total unrecognized compensation expense, related to non-vested stock options, which is expected to be recognized over a weighted-average period of 1.92 years.

The following table sets forth the tax benefits related to stock compensation:

In thousands
	Three Months Ended				Six Months Ended
	June 30,				June 30,
	2011		2010		2011		2010
Tax benefit recognized in income Statement	$	909	$	1,533	$	2,177	$	3,061
Excess tax benefit realized		6,457		12,267		14,549		13,430

The Black-Scholes option-pricing model is used in determining the fair value of each option grant using the assumptions noted in the table below. The expected term of options granted is based on historical experience and represents the period of time that awards granted are expected to be outstanding. Expected volatility is based upon historical volatility of the Company’s stock. The expected dividend yield is zero. The risk-free interest rate is based upon the U.S. Treasury yield rates of a comparable period.

The assumptions that we used in the Black-Scholes model are as follows:

	Three Months Ended June  30,						Six Months Ended June  30,
	2011			2010			2011			2010
Expected term (in years)		5.75			5.75			5.75			5.75
Expected volatility		27.83	%		29.69	%		27.93	%		28.42	%
Expected dividend yield		0.00	%		0.00	%		0.00	%		0.00	%
Risk free interest rate		1.97	%		1.75	%		2.29	%		2.41	%

The weighted average grant date fair value of the stock options granted during the three and six months ended June 30, 2011 and 2010 was as follows:

	Three Months Ended June  30,				Six Months Ended June  30,
	2011		2010		2011		2010
Weighted average fair value at grant date	$	24.27	$	16.29	$	16.85	$	13.36

Stock option activity for the six months ended June 30, 2011, was as follows:

	Number of Options			Weighted Average Exercise Price per Share		Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
						(in years)
Outstanding at December 31, 2010		6,508,833		$	41.86
Granted		1,014,201			85.35
Exercised		(829,799	)		32.54
Cancelled or expired		(153,425	)		50.88
Outstanding at June 30, 2011		6,539,810		$	49.58		6.90	$	258,679,846
Exercisable at June 30, 2011		3,452,973		$	39.69		5.70	$	170,702,765
Vested and expected to vest in the future at June 30, 2011		5,923,936		$	48.08		6.73	$	243,208,572

The total exercise intrinsic value represents the total pre-tax value (the difference between the sales price on that trading day in the quarter ended June 30, and the exercise price associated with the respective option).

	Three Months Ended June  30,				Six Months Ended June 30,
	2011		2010		2011		2010
Total exercise intrinsic value of options exercised	$	21,215	$	37,519	$	45,489	$	41,833

Restricted stock units (RSUs) activity for the six months ended June 30, 2011, was as follows:

	Number of Units			Weighted Average Remaining Contractual Life		Aggregate Intrinsic Value
				(in years)
Outstanding at December 31, 2010		20,000
Granted		18,488
Forfeited		(3,250	)
Outstanding at June 30, 2011		35,238			2.14	$	3,140,411
Exercisable at June 30, 2011		0			0.00	$	0.00
Vested and expected to vest in the future at June 30, 2011		27,216			2.11	$	2,425,509