Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation

Stock-Based Compensation

Note 8. Stock-Based Compensation

The following table summarizes the total stock-based compensation expense included in the consolidated statements of operations and the realized excess tax benefits included in the consolidated statements of cash flows for the three and six-month periods ended June 30, 2011 and 2010:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Selling and administrative expenses	$	1,928		$	1,165		$	4,262		$	3,022
Total stock-based compensation expense included in operating expenses	$	1,928		$	1,165		$	4,262		$	3,022
Income before income taxes		(1,928	)		(1,165	)		(4,262	)		(3,022	)
Provision for income taxes		573			357			1,232			964
Net income	$	(1,355	)	$	(808	)	$	(3,030	)	$	(2,058	)
Net cash provided by operating activities	$	(724	)	$	(414	)	$	(2,237	)	$	(1,903	)
Net cash used in financing activities	$	724		$	414		$	2,237		$	1,903

Stock Option Awards

A summary of the Company's stock option activity for the six-month period ended June 30, 2011 is presented in the following table (underlying shares in thousands):

	Shares			Outstanding Weighted- Average Exercise Price (per share)		Aggregate Intrinsic Value		Weighted- Average Remaining Contractual Life
Outstanding at December 31, 2010		863		$	32.69
Granted		179		$	76.34
Exercised		(160	)	$	30.75
Forfeited		(25	)	$	47.01
Expired or canceled		—		$	—
Outstanding at June 30, 2011		857		$	41.65	$	36,346		4.6 years
Exercisable at June 30, 2011		456		$	32.03	$	23,749		3.5 years

The aggregate intrinsic value was calculated as the difference between the exercise price of the underlying stock options and the quoted closing price of the Company's common stock at June 30, 2011 multiplied by the number of in-the-money stock options. The following table presents certain other information about the Company's stock options:

	Three Months Ended June 30,				Six Months Ended June 30,
	2011		2010		2011		2010
Weighted-average estimated grant-date fair value of employee stock options granted (per share)	$	28.96			$	28.23
Total pre-tax intrinsic value of stock options exercised	$	2,903	$	1,897	$	7,435	$	8,230
Pre-tax unrecognized compensation expense, net of estimated forfeitures as of June 30, 2011					$	5,115
Weighted-average period (in years) to be recognized as expense						2.1

Valuation Assumptions

The fair value of each stock option grant under the Company's Amended and Restated Long-Term Incentive Plan was estimated on the date of grant using the Black-Scholes option-pricing model. The weighted-average assumptions used for the periods indicated are noted in the table below:

	Three Months Ended June 30,						Six Months Ended June 30,
	2011			2010			2011			2010
Assumptions:
Risk-free interest rate		1.4	%		1.7	%		1.9	%		2.3	%
Dividend yield		0.2	%		0.5	%		0.3	%		0.5	%
Volatility factor		45			46			44			43
Expected life (in years)		3.8			3.8			4.3			4.7

Restricted Share Awards

A summary of the Company's restricted share award activity for the six-month period ended June 30, 2011 is presented in the following table (underlying shares in thousands):

	Shares			Weighted- Average  Grant- Date Fair Value (per share)
Nonvested at December 31, 2010		161		$	35.13
Granted		43		$	77.81
Vested		(41	)	$	38.08
Forfeited		(9	)	$	39.86
Nonvested at June 30, 2011		154		$	46.09

The restricted shares granted in the six-month period ended June 30, 2011 were valued at the market close price of the Company's common stock on the date of grant. The following table presents certain other information about the Company's restricted share awards:

	Six Months Ended June 30,
	2011		2010
Total fair value of awards vested during the period	$	3,035	$	843
Pre-tax unrecognized compensation expense, net of estimated forfeitures as of June 30, 2011	$	3,770
Weighted-average period (in years) to be recognized as expense		2.2