STOCK BASED COMPENSATION (Tables)

12 Months Ended

Dec. 31, 2012

Shares Reserved for Issuance, Consisting both Shares Available for Option Grants and Shares Granted as Options

As of December 31, 2012, we reserved the following shares for issuance, consisting of both shares available for awards under the 2011 Plan, 2008 Plan, 2005 Plan, 2000 Plan, and 1997 Plan and shares issuable under outstanding stock option grants and restricted stock unit awards:

1996 Directors Plan shares	40,784
1997 Plan shares	54,522
2000 Plan shares	232,096
2005 Plan shares	2,384,111
2008 Plan shares	3,285,547
2011 Plan shares	3,000,000
Total shares reserved	8,997,060

Stock-Based Compensation Expense Resulting from Stock Option Awards and Employee Stock Purchase Plan

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

In thousands
	Years Ended December 31,
	2012		2011		2010
Cost of revenues—stock option plan	$	136	$	121	$	224
Selling, general and administrative—stock option plan		13,630		13,428		13,914
Selling, general and administrative—restricted stock unit		1,474		811		304
Selling, general and administrative—ESPP		1,099		1,007		856
Total	$	16,339	$	15,367	$	15,298

Tax Benefits Related to Stock Compensation

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

In thousands
	Years Ended December 31,
	2012		2011		2010
Tax benefit recognized in income statement	$	5,818	$	6,091	$	7,359
Excess tax benefit realized		30,161		17,410		24,687

Option Activity

Option activity for the years ended December 31, 2012, 2011 and 2010 is summarized as follows:

	2012					2011					2010
	Number of Options			Weighted Average Exercise Price per Share		Number of Options			Weighted Average Exercise Price per Share		Number of Options			Weighted Average Exercise Price per Share
Outstanding at beginning of year		6,342,337		$	50.06		6,508,833		$	41.86		7,387,753		$	35.43
Granted		1,142,205			86.63		1,050,226			85.28		1,388,846			54.13
Exercised		(1,803,601	)		36.30		(963,218	)		32.41		(2,106,156	)		26.95
Forfeited		(136,518	)		63.12		(244,378	)		53.49		(156,269	)		47.07
Cancelled or expired		(759	)		75.29		(9,126	)		28.93		(5,341	)		55.50
Outstanding at end of year		5,543,664		$	61.69		6,342,337		$	50.06		6,508,833		$	41.86
Exercisable at end of year		2,674,411		$	50.48		3,406,594		$	40.31		3,099,479		$	34.49
Available for future grant		3,312,992					4,396,346					2,240,937

Intrinsic Value of Options Exercised

The total exercise intrinsic value represents the total pre-tax intrinsic value (the difference between the sales price on that trading day in the year ended December 31, 2012 and the exercise price associated with the respective option).

In thousands
	Years Ended December 31,
	2012		2011		2010
Total exercise intrinsic value of options exercised	$	97,816	$	52,939	$	78,500

Outstanding Options

The following tables set forth the information related to outstanding options for the years ended December 31, 2012, 2011 and 2010:

In years
	2012		2011		2010
Weighted average remaining contractual life of outstanding options		6.7		6.5		6.7

In thousands
	2012		2011		2010
Total aggregate intrinsic value of outstanding options	$	175,200	$	184,300	$	254,200

Exercisable Options

The following tables set forth the information related to exercisable options:

In years
	2012		2011		2010
Weighted average remaining contractual life of exercisable options		5.5		5.3		5.3

In thousands
	2012		2011		2010
Total aggregate intrinsic value of exercisable options	$	114,500	$	128,900	$	143,900

Options Outstanding and Exercisable by Price Range

Options outstanding and exercisable as of December 31, 2012 by price range are presented below:

	Options Outstanding						Options Exercisable
Range of Exercise Price	Shares		Outstanding Average Remaining Life in Years		Weighted Average Exercise Price		Shares		Weighted Average Exercise Price
$17.525-$38.565		846,746		3.29	$	32.32		834,746	$	32.35
$38.905-$43.330		70,362		4.36		42.90		70,362		42.90
$43.340-$46.830		648,422		6.02		46.82		321,543		46.81
$46.870-$50.820		114,322		6.01		48.99		84,882		49.19
$50.890-$51.550		865,481		7.07		51.54		330,343		51.54
$51.750-$54.590		578,345		5.10		53.26		434,889		53.27
$54.600-$84.910		431,837		7.35		66.90		253,244		62.87
$85.000-$85.000		828,915		8.11		85.00		207,227		85.00
$85.020-$86.140		15,250		9.12		85.52		400		86.02
$86.240-$94.760		1,143,984		9.10		87.05		136,775		87.60
		5,543,664		6.71	$	61.69		2,674,411	$	50.48

Assumptions used in Black-Scholes Option-Pricing Model for Determining Fair Value of Options Granted

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

	Years Ended December 31,
	2012			2011			2010
Stock options granted (shares)		1,142,205			1,050,226			1,388,846
Weighted average grant date fair value	$	20.14		$	21.07		$	13.74
Expected term (in years)		6.00			5.75			5.75
Expected volatility		27.87	%		27.42	%		28.31	%
Expected dividend yield		0.00	%		0.00	%		0.00	%
Risk free interest rate		1.05	%		2.21	%		2.33	%

Restricted Stock Units Activity

Restricted stock units (“RSUs”) activity for the years ended December 31, 2012, 2011 and 2010 is summarized as follows below. RSUs vest at the end of three or five years. Our 2008 and 2011 Plans include a share reserve related to RSUs granted at a 2-1 ratio.

	2012					2011					2010
	Number of Units			Weighted Average Remaining Contractual Life		Number  of Units			Weighted Average Remaining Contractual Life		Number of Units		Weighted Average Remaining Contractual Life
				(in years)					(in years)				(in years)
Outstanding at beginning of year		34,738					20,000					0
Granted		39,237					18,488					20,000
Released		(4,000	)				0					0
Forfeited		(1,773	)				(3,750	)				0
Outstanding at end of year		68,202			2.58		34,738			1.63		20,000		2.12
Exercisable at end of year		0			0.00		0			0.00		0		0.00

In thousands
	2012		2011		2010
Total aggregate intrinsic value of outstanding units	$	6,362	$	2,707	$	1,618