STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2012

Stockholders' Equity Note [Abstract]

Components of the company's stock-based compensation expense, net of amount capitalized in inventory

The components of the Company's stock-based compensation expense for the years ended December 31, 2012, 2011 and 2010 are summarized below:

	Years Ended
	December 31, 2012		December 31, 2011			December 31, 2010
	(in thousands)
Employee stock options	$	3,470	$	5,685		$	9,230
Employee stock purchase plan	3,107		2,511			1,844
Restricted stock units	65,397		60,906			50,478
Net amounts released from (capitalized in) inventory	468		(977		)	(1,042		)
	$	72,442	$	68,125		$	60,510

Summary of the distribution of stock-based compensation expense

The following table summarizes stock-based compensation, net of amount capitalized in (released from) inventory, included in operating results for the years ended December 31, 2012, 2011 and 2010:

	Years Ended
	December 31, 2012			December 31, 2011			December 31, 2010
	(in thousands)
Cost of revenue	$	8,052		$	7,840		$	8,159
Research and development	22,825			22,916			19,324
Selling, general and administrative	41,565			37,369			33,027
Total stock-based compensation expense, before income taxes	72,442			68,125			60,510
Tax benefit	(12,060		)	(10,453		)	(7,548		)
Total stock-based compensation expense, net of income taxes	$	60,382		$	57,672		$	52,962

Activity under the entity's 2005 Stock Plan

Activity under Atmel’s 2005 Stock Plan is set forth below: 

			Outstanding Options			Weighted-
					Exercise	Average
	Available for Grant		Number of Options		Price per Share	Exercise Price per Share
	(in thousands, except per share data)
Balances, December 31, 2009	28,478		18,828		$1.68-$24.44	$	4.38
Restricted stock units issued	(11,701	)	—		—	—
Plan adjustment for restricted stock units issued	(9,127	)	—		—	—
Performance-based restricted stock units issued	(472	)	—		—	—
Plan adjustment for performance-based restricted stock units issued	(368	)	—		—	—
Restricted stock units cancelled	2,151		—		—	—
Plan adjustment for restricted stock units cancelled	1,678		—		—	—
Options granted	(315	)	315		$4.77-$10.01	5.39
Options cancelled/expired/forfeited	1,139		(1,139	)	$2.11-$24.44	5.79
Options exercised	—		(5,344	)	$1.68-$10.82	4.21
Balances, December 31, 2010	11,463		12,660		$1.68-$14.94	$	4.35
Additional shares authorized	19,000		—		—	—
Restricted stock units issued	(6,343	)	—		—	—
Plan adjustment for restricted stock units issued	(4,017	)	—		—	—
Performance-based restricted stock units issued	(3,474	)	—		—	—
Plan adjustment for performance-based restricted stock units issued	(2,124	)	—		—	—
Restricted stock units cancelled	1,025		—		—	—
Plan adjustment for restricted stock units cancelled	793		—		—	—
Performance-based restricted stock units cancelled	25		—		—	—
Plan adjustment for performance-based restricted stock units cancelled	17		—		—	—
Options cancelled/expired/forfeited	158		(158	)	$2.11-$14.94	5.01
Options exercised	—		(4,285	)	$1.80-$13.77	4.51
Balances, December 31, 2011	16,523		8,217		$1.68-$10.01	$	4.26
Restricted stock units issued	(8,507	)	—		—	—
Plan adjustment for restricted stock units issued	(5,189	)	—		—	—
Performance-based restricted stock units issued	(338	)	—		—	—
Adjustment for performance-based restricted stock units issued	(206	)	—		—	—
Restricted stock units cancelled	1,783		—		—	—
Plan adjustment for restricted stock units cancelled	1,248		—		—	—
Performance-based restricted stock units cancelled	330		—		—	—
Plan adjustment for performance-based restricted stock units cancelled	201		—		—	—
Options cancelled/expired/forfeited	303		(303	)	$2.11-$8.83	4.05
Options exercised	—		(1,239	)	$1.68-$8.89	3.76
Balances, December 31, 2012	6,148		6,675		$1.68-$10.01	$	4.33

Activity related to restricted stock units

Activity related to restricted stock units is set forth below:

	Number of Units		Weighted-Average Grant Date Fair Value
	(in thousands, except per share data)
Balances, December 31, 2009	24,044		$	4.29
Restricted stock units issued	11,701		7.97
Restricted stock units vested	(4,816	)	4.56
Restricted stock units cancelled	(1,200	)	4.16
Performance-based restricted stock units issued	472		5.49
Performance-based restricted stock units cancelled	(951	)	4.10
Balances, December 31, 2010	29,250		$	5.74
Restricted stock units issued	6,343		10.88
Restricted stock units vested	(6,345	)	5.20
Restricted stock units cancelled	(1,025	)	6.80
Performance-based restricted stock units issued	3,474		13.94
Performance-based restricted stock units vested	(8,485	)	4.22
Performance-based restricted stock units cancelled	(25	)	9.77
Balances, December 31, 2011	23,187		$	8.99
Restricted stock units issued	8,507		6.11
Restricted stock units vested	(7,975	)	6.80
Restricted stock units cancelled	(1,783	)	7.81
Performance-based restricted stock units issued	338		9.19
Performance-based restricted stock units cancelled	(330	)	12.31
Balances, December 31, 2012	21,944		$	8.71

Schedule of options outstanding and exercisable, by range of exercise price

Options Outstanding							Options Exercisable
Range of Exercise Price	Number Outstanding	Weighted- Average Remaining Contractual Term (years)	Weighted- Average Exercise Price		Aggregate Intrinsic Value		Number Exercisable	Weighted- Average Remaining Contractual Term (years)	Weighted- Average Exercise Price		Aggregate Intrinsic Value
(In thousands, except per share prices and life data)
1.68-3.29	920	3.86	$	3.20	$	3,079	920	3.86	$	3.20	$	3,079
3.32-3.32	1,047	5.21	3.32		3,381		1,047	5.20	3.32		3,381
3.41-4.20	833	5.64	4.13		2,018		810	5.61	4.13		1,961
4.23-4.37	524	4.04	4.25		1,203		367	4.11	4.26		807
4.43-4.43	873	6.71	4.43		1,850		635	6.71	4.43		1,345
4.56-4.78	589	4.70	4.74		1,064		543	4.55	4.74		983
4.89-4.89	813	3.60	4.89		1,349		813	3.60	4.89		1,349
4.92-6.05	717	4.06	5.42		807		717	4.15	5.42		794
6.11-7.38	348	3.77	6.31		98		319	3.72	6.33		86
10.01-10.01	11	7.87	10.01		—		7	7.88	10.01		—
	6,675	4.75	$	4.33	$	14,849	6,178	4.67	$	4.32	$	13,785

Assumptions used to estimate the fair value of each option grant

The fair value of each option grant is estimated on the date of grant using the Black-Scholes option pricing model with the following weighted-average assumptions:

	Year Ended
	December 31, 2010
Risk-free interest rate	2.05	%
Expected life (years)	5.54
Expected volatility	54	%
Expected dividend yield	—

Assumptions used to estimate the fair value of the Company's ESPP shares

The following assumptions were utilized to determine the fair value of the Company’s ESPPs shares:

	Years Ended
	December 31, 2012		December 31, 2011		December 31, 2010
Risk-free interest rate	0.15	%	0.12	%	0.18	%
Expected life (years)	0.50		0.50		0.50
Expected volatility	51	%	46	%	45	%
Expected dividend yield	—		—		—