STOCKHOLDERS' EQUITY (Tables)

12 Months Ended

Dec. 31, 2011

STOCKHOLDERS' EQUITY

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

	Years Ended
	December 31, 2011			December 31, 2010			December 31, 2009
	(in thousands)
Employee stock options	$	5,685		$	9,230		$	11,419
Employee stock purchase plan		2,511			1,844			2,208
Restricted stock units		60,906			50,478			16,542
Amounts capitalized in inventory		(977	)		(1,042	)		(111	)
	$	68,125		$	60,510		$	30,058

Summary of the distribution of stock-based compensation expense

	Years Ended
	December 31, 2011			December 31, 2010			December 31, 2009
	(in thousands)
Cost of revenues	$	7,840		$	8,159		$	4,831
Research and development		22,916			19,324			12,088
Selling, general and administrative		37,369			33,027			13,139
Total stock-based compensation expense, before income taxes		68,125			60,510			30,058
Tax benefit		(10,453	)		(7,548	)		—
Total stock-based compensation expense, net of income taxes	$	57,672		$	52,962		$	30,058

Activity under the entity's 2005 Stock Plan

				Outstanding Options
									Weighted- Average Exercise Price per Share
	Available for Grant			Number of Options			Exercise Price per Share
	(in thousands, except per share data)
Balances, December 31, 2008		30,186			31,263		$	1.68-$24.44	$	5.54
Restricted stock units issued		(8,951	)		—			—		—
Performance-based restricted stock units issued		(83	)		—			—		—
Adjustment for restricted stock units issued		(7,046	)		—			—		—
Restricted stock units cancelled		1,766			—			—		—
Adjustment for restricted stock units cancelled		1,377			—			—		—
Options granted		(3,167	)		3,167		$	3.49-4.43		4.31
Options cancelled/expired/forfeited		14,396			(14,396	)	$	1.80-24.44		7.02
Options exercised		—			(1,206	)	$	1.80-4.35		2.71
Balances, December 31, 2009		28,478			18,828		$	1.68-$24.44	$	4.38
Restricted stock units issued		(11,701	)		—
Adjustment for restricted stock units issued		(9,127	)		—
Performance-based restricted stock units issued		(472	)		—
Adjustment for perfomance-based restricted stock units issued		(368	)		—
Restricted stock units cancelled		2,151			—
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	)		—
Adjustment for restricted stock units issued		(4,017	)		—
Performance-based restricted stock units issued		(3,474	)		—
Adjustment for perfomance-based restricted stock units issued		(2,124	)		—
Restricted stock units cancelled		1,025			—
Adjustment for restricted stock units cancelled		793			—
Performance-based restricted stock units cancelled		25			—
Adjustment for perfomance-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

Activity related to restricted stock units

Activity related to restricted stock units is set forth below:

	Number of Shares			Weighted-Average Fair Value Per Share
	(In thousands, except per share data)
Balance, December 31, 2008		20,422		$	4.33
Restricted stock units issued		8,951			4.18
Performance-based restricted stock units issued		83			3.63
Restricted stock units vested		(3,646	)		3.83
Restricted stock units cancelled		(750	)		3.90
Performance-based restricted stock units cancelled		(1,016	)		3.78
Balance, December 31, 2009		24,044		$	4.38
Restricted stock units issued		11,701			7.97
Performance-based restricted stock units issued		472			5.49
Restricted stock units vested		(4,816	)		6.23
Restricted stock units cancelled		(1,200	)		4.28
Performance-based restricted stock units cancelled		(951	)		4.10
Balance, December 31, 2010		29,250		$	5.56
Restricted stock units issued		6,343			10.88
Performance-based restricted stock units issued		3,474			13.94
Restricted stock units vested		(6,345	)		11.79
Performance-based restricted stock units vested		(8,485	)		14.00
Restricted stock units cancelled		(1,025	)		6.80
Performance-based restricted stock units cancelled		(25	)		9.77
Balance, December 31, 2011		23,187		$	3.18

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 - 3.24		981		3.95	$	2.73	$	5,270		905		3.76	$	2.69	$	4,901
3.26 - 3.29		512		3.62		3.28		2,465		505		3.58		3.28		2,432
3.32 - 3.32		1,090		6.21		3.32		5,210		1,005		6.19		3.32		4,803
3.41 - 4.20		926		6.66		4.13		3,676		592		6.58		4.12		2,358
4.23 - 4.40		820		4.95		4.25		3,157		332		5.12		4.27		1,224
4.43 - 4.43		1,000		7.71		4.43		3,670		413		7.71		4.43		1,516
4.56 - 4.89		1,528		5.19		4.82		5,013		1,443		5.01		4.82		4,729
4.92 - 5.75		826		4.79		5.39		2,234		826		5.01		5.39		2,111
5.96 - 8.89		520		4.97		6.38		870		396		4.57		6.42		638
10.01 - 10.01		14		8.88		10.01		—		3		8.88		10.01		—
		8,217		5.48	$	4.26	$	31,565		6,420		5.21	$	4.22	$	24,712

Assumptions used to estimate the fair value of each option grant

	Years Ended
	December 31, 2010			December 31, 2009
Risk-free interest rate		2.05	%		2.38	%
Expected life (years)		5.54			5.58
Expected volatility		54	%		55	%
Expected dividend yield		—			—

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

	Years Ended
	December 31, 2011			December 31, 2010			December 31, 2009
Risk-free interest rate		0.12	%		0.18	%		0.35	%
Expected life (years)		0.50			0.50			0.50
Expected volatility		46	%		45	%		73	%
Expected dividend yield		—			—			—