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Stock, Stock Options and Rights (Tables)
12 Months Ended
Dec. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Share-based Compensation Award Available for Grant
The following table presents shares authorized, available for future grant and outstanding under each of the Company’s plans at December 31, 2012:
 
 
Authorized
 
Available
 
Outstanding
1996 Stock Incentive Program(1)
34,815

 
1,039

 
12,860

1998 Nonstatutory Stock Option Plan(2)
37

 

 
37

2008 Inducement Award Plan
1,800

 
184

 
1,316

2009 Incentive Plan(1)
19,041

 
758

 
18,022

2012 Incentive Plan
4,000

 
2,994

 
1,006

Total
59,693

 
4,975

 
33,241

______________
(1)
Shares are only available for issuance under the 2012 Incentive Plan after reregistration.
(2)
Shares will be retired upon cancellation.
Stock-Based Compensation by Payment Award
The following summarizes the Company’s stock option transactions for 2012, 2011 and 2010:
 
 
Year ended December 31,
 
2012
 
2011
 
2010
 
Shares
 
Weighted-
average
exercise price
 
Shares
 
Weighted-
average
exercise price
 
Shares
 
Weighted-
average
exercise price
Outstanding at beginning of year
29,547

 
$
6.73

 
28,436

 
$
6.03

 
30,101

 
$
7.96

Granted
7,293

 
$
5.82

 
5,678

 
$
11.94

 
7,521

 
$
7.37

Exercised
(1,189
)
 
$
3.30

 
(2,738
)
 
$
6.43

 
(6,360
)
 
$
5.50

Forfeitures
(2,410
)
 
$
8.02

 
(1,829
)
 
$
12.51

 
(2,826
)
 
$
31.38

Outstanding at end of year
33,241

 
$
6.56

 
29,547

 
$
6.73

 
28,436

 
$
6.03

Exercisable at end of year
19,156

 
$
5.51

 
15,963

 
$
5.34

 
14,208

 
$
6.35

Stock-Based Compensation Exercise Price Range

The following table summarizes information concerning stock options outstanding and exercisable at December 31, 2012: 
 
Options Outstanding
 
Options Exercisable
Range of
Exercise Price
Number
Outstanding
(in thousands)
 
Weighted-
Average
Remaining
Contractual
Life-Years
 
Weighted-
Average
Exercise Price
 
Number
Exercisable
(in thousands)
 
Weighted-
Average
Exercise Price
$ 1.69 – $ 4.00
4,863

 
4.96
 
$
2.60

 
4,716

 
$
2.61

$ 4.01 – $ 5.50
6,333

 
4.65
 
$
5.04

 
5,419

 
$
5.04

$ 5.51 – $ 6.75
10,534

 
7.73
 
$
6.14

 
4,266

 
$
6.39

$ 6.76 – $10.00
6,645

 
6.96
 
$
7.18

 
3,895

 
$
7.18

$10.01 – $13.99
4,866

 
8.20
 
$
12.54

 
860

 
$
12.54

$ 1.69 – $13.99
33,241

 
6.65
 
$
6.56

 
19,156

 
$
5.51

Stock Options and Employee Stock Purchase Plan, Valuation Assumptions
The following table summarizes the average estimates the Company used in the Black-Scholes option-pricing model during 2012, 2011 and 2010, to determine the fair value of employee stock options and employee ESPP rights granted during each period:
 
Stock Options
2012
 
2011
 
2010
Risk free interest rates
1.0
%
 
2.2
%
 
2.6
%
Expected life in years
5.00 years

 
4.99 years

 
4.79 years

Expected dividend yield
%
 
%
 
%
Expected volatility
63.4
%
 
60.2
%
 
60.6
%
Estimated annualized forfeiture rate
5.5
%
 
6.8
%
 
7.5
%
 
 
 
 
 
 
ESPP
2012
 
2011
 
2010
Risk free interest rates
0.1
%
 
0.1
%
 
0.2
%
Expected life in years
0.50 years

 
0.50 years

 
0.50 years

Expected dividend yield
%
 
%
 
%
Expected volatility
58.5
%
 
57.4
%
 
56.3
%
Estimated annualized forfeiture rate
4.0
%
 
4.0
%
 
4.0
%
Options, Grants in Period, Weighted Average Grant Date Fair Value
Based upon these assumptions, the Company has estimated the per share weighted-average grant fair value of its options granted during 2012, 2011, and 2010 as follows:
 
Year ended December 31, 
 
 
2012
 
2011
 
2010
Weighted-average grant fair value
$
3.10

 
$
6.27

 
$
3.86

Schedule of Stock-Based Compensation
The table below summarizes the stock-based compensation expense for 2012, 2011 and 2010:
 
 
Year ended December 31,
 
2012
 
2011
 
2010
Stock-based compensation expense included in cost of goods sold
$
9,021

 
$
6,918

 
$
4,652

Operating expenses:
 
 
 
 
 
Research, development and engineering
9,261

 
8,492

 
6,337

Selling, general and administrative
10,943

 
9,672

 
6,571

Stock-based compensation expense included in operating expenses
20,204

 
18,164

 
12,908

Total stock-based compensation expense included in income from operations
$
29,225

 
$
25,082

 
$
17,560

Schedule of Employee Stock Purchase Plan Activity
During 2012, 2011 and 2010, the approximate number of shares of the Company’s common stock that was purchased under the ESPP was as follows:
 
Year ended December 31, 
 
 
2012
 
2011
 
2010
Shares purchased
3,506

 
1,924

 
1,824