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STOCK BASED COMPENSATION (Tables)
6 Months Ended
Jun. 30, 2011
Stock-Based Compensation Expense Resulting From Stock Option Awards and ESPP

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   
  

 

 

    

 

 

    

 

 

    

 

 

 
Tax Benefits Related to Stock Compensation

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
Assumptions used in Black-Scholes Model

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 %
Weighted Average Grant Date Fair Value of Stock Options Granted

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

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
Intrinsic Value of Options Exercised

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

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