Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

Stock-based compensation expense was recognized as follows (in thousands):


	Year Ended December 31,
	2012		2011		2010
Cost of goods sold	$	1,496	$	1,266	$	915
Research and development		7,082		7,944		7,218
General and administrative		7,621		9,675		9,266

Total stock-based compensation	$	16,199	$	18,885	$	17,399

Black-Scholes Option-Pricing Model Assumptions Used to Calculate Fair Value of Employee Stock Options and ESPP Purchases

The following tables list the Black-Scholes option-pricing model assumptions used to calculate the fair value of employee and director stock options and ESPP purchases.


	Year Ended December 31, 2012						Year Ended December 31, 2011						Year Ended December 31, 2010
	Stock Options			ESPP			Stock Options			ESPP			Stock Options			ESPP
Average risk-free interest rate		0.9	%		0.1	%		1.6	%		0.1	%		1.8	%		0.2	%
Dividend yield		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%		0.0	%
Volatility factor		62.2	%		45.6	%		63.8	%		53.6	%		62.7	%		47.8	%
Weighted average expected life		5.0 years			0.5 years			4.9 years			0.5 years			4.9 years			0.5 years

Stock Option Activity Under Equity Incentive Plans

The table below presents a summary of stock option activity under our equity incentive plans (in thousands, except for price per share and contractual life information):


	Number of Shares			Weighted- Average Exercise Price per Share		Weighted- Average Remaining Contractual Life (in Years)		Aggregate Intrinsic Value(1)
Outstanding at December 31, 2011		17,046		$	9.29
Options granted		3,435			7.46
Options exercised		(631	)		5.48
Options forfeited and canceled		(852	)		10.34

Outstanding at December 31, 2012		18,998		$	9.03		4.73	$	10,972

Vested and expected to vest at December 31, 2012		18,688		$	9.04		4.70	$	10,916
Exercisable at December 31, 2012		13,449		$	9.05		4.04	$	9,874

(1)	Aggregate intrinsic value represents the difference between the exercise price of the option and the closing market price of our common stock on December 31, 2012.

- Definition

Tabular disclosure of components of a stock option or other award plan under which equity-based compensation is awarded to employees, typically comprised of the amount of unearned compensation (deferred compensation cost), compensation expense, and changes in the quantity and fair value of the shares (or other type of equity) granted, exercised, forfeited, and issued and outstanding pertaining to that plan. Disclosure may also include nature and general terms of such arrangements that existed during the period and potential effects of those arrangements on shareholders, effect of compensation cost arising from equity-based payment arrangements on the income statement, method of estimating the fair value of the goods or services received, or the fair value of the equity instruments granted, during the period, cash flow effects resulting from equity-based payment arrangements and, for registrants that accelerate vesting of out of the money share options, reasons for the decision to accelerate.

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- Definition

Tabular disclosure of the allocation of equity-based compensation costs to a given line item on the balance sheet and income statement for the period. This may include the reporting line for the costs and the amount capitalized and expensed.

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