STOCK-BASED COMPENSATION

3 Months Ended

Jun. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Disclosure of Compensation Related Costs, Share-based Payments [Text Block]

STOCK-BASED COMPENSATION

The following table summarizes the amount of stock-based compensation included in the Condensed consolidated statements of operations:

	Three Months Ended
	June 30,
(in thousands)	2012			2011
Cost of revenues	$	596		$	546
Research, development and engineering	1,124			947
Selling, general and administrative	2,900			2,686
Stock-based compensation included in operating expenses	4,024			3,633
Total stock-based compensation	4,620			4,179
Income tax benefit	(1,382		)	(1,282		)
Total stock-based compensation, net of tax	$	3,238		$	2,897

Stock Options

The following is a summary of the Company’s stock option activity during the three months ended June 30, 2012:

	Options Outstanding
	Number of Shares		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life	Aggregate Intrinsic Value
	(in thousands)				(in years)	(in thousands)
Outstanding at March 31, 2012	3,304		$	26.47
Options granted	200		$	33.27
Options exercised	(63	)	$	20.83
Options forfeited or expired	(97	)	$	34.76
Outstanding at June 30, 2012	3,344		$	26.75	3.7	$	24,187
Vested and expected to vest at June 30, 2012	3,303		$	26.66	3.6	$	24,148
Exercisable at June 30, 2012	2,427		$	24.26	2.8	$	22,900

The total intrinsic value of options exercised during the three months ended June 30, 2012 and 2011 was $0.8 million and $9.1 million, respectively.  Intrinsic value is defined as the amount by which the fair value of the underlying stock exceeds the exercise price at the time of option exercise. The total cash received as a result of stock option exercises during the three months ended June 30, 2012 was $1.3 million.

As of June 30, 2012, total unrecognized compensation cost related to unvested stock options was $9.7 million, which is expected to be recognized over a weighted average period of 2.0 years.

Restricted Stock

The following is a summary of the Company’s restricted stock activity dring the three months ended June 30, 2012:

	Number of Shares		Weighted Average Grant Date Fair Value
	(in thousands)
Non-vested at March 31, 2012	815		$	33.37
Restricted stock granted	441		$	31.10
Restricted stock vested	(110	)	$	33.75
Restricted stock forfeited	(37	)	$	31.79
Non-vested at June 30, 2012	1,109		$	32.48

The weighted average grant-date fair value of awards of restricted stock and restricted stock units (collectively "restricted stock") is based on the quoted market price of the Company's common stock on the date of grant. The weighted average grant-date fair value of restricted stock granted during the three months ended June 30, 2012 and 2011 was $31.10 and $36.60, respectively. The total fair value of restricted stock that vested during the three months ended June 30, 2012 and 2011 was $3.7 million and $1.3 million, respectively.

As of June 30, 2012, total unrecognized compensation cost related to unvested restricted stock was $25.4 million, which is expected to be recognized over a weighted average period of 2.9 years.  

Valuation Assumptions

The Company estimates the fair value of stock options and Employee Stock Purchase Plan (“ESPP”) shares using a Black-Scholes option valuation model.  The fair value of stock options granted during the respective periods is estimated on the date of grant using the following weighted average assumptions:

	Three Months Ended
	June 30,
Employee Stock Options	2012			2011
Expected volatility	41.7		%	44.4		%
Risk-free interest rate	0.6		%	1.4		%
Expected dividends	1.3		%	0.6		%
Expected life (in years)	4.3			4.0
Weighted-average grant date fair value	$	10.30		$	12.58

The Company recognizes the grant-date fair value of stock-based compensation as compensation expense using the straight-line attribution approach over the service period for which the stock-based compensation is expected to vest.

No purchase rights were granted under the ESPP during the three months ended June 30, 2012 and 2011.