Stock-Based Compensation

9 Months Ended

Sep. 30, 2011

Stock-Based Compensation [Abstract]

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 nine-month periods ended September 30, 2011 and 2010:

	Three Months Ended September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Selling and administrative expenses	$	1,058		$	1,103		$	5,320		$	4,125
Total stock-based compensation expense included in operating expenses	$	1,058		$	1,103		$	5,320		$	4,125
Income before income taxes		(1,058	)		(1,103	)		(5,320	)		(4,125	)
Provision for income taxes		279			327			1,511			1,291
Net income	$	(779	)	$	(776	)	$	(3,809	)	$	(2,834	)
Net cash provided by operating activities	$	(300	)	$	(482	)	$	(2,537	)	$	(2,385	)
Net cash used in financing activities	$	300		$	482		$	2,537		$	2,385

Stock Option Awards

A summary of the Company's stock option activity for the nine-month period ended September 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		183		$	76.55
Exercised		(186	)	$	30.49
Forfeited		(49	)	$	47.22
Expired or canceled		—		$	—
Outstanding at September 30, 2011		811		$	42.10	$	19,554		4.3 years
Exercisable at September 30, 2011		447		$	32.56	$	13,880		3.3 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 September 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 September 30,				Nine Months Ended September 30,
	2011		2010		2011		2010
Weighted-average estimated grant-date fair value of employee stock options granted (per share)	$	29.70			$	28.26
Total pre-tax intrinsic value of stock options exercised	$	1,306	$	3,625	$	8,741	$	11,855
Pre-tax unrecognized compensation expense, net of estimated forfeitures as of September 30, 2011					$	4,212
Weighted-average period (in years) to be recognized as expense						2.0

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 September 30,						Nine Months Ended September 30,
	2011			2010			2011			2010
Assumptions:
Risk-free interest rate		1.3	%		1.6	%		1.9	%		2.3	%
Dividend yield		0.2	%		0.5	%		0.3	%		0.5	%
Volatility factor		45			45			44			43
Expected life (in years)		3.8			4.4			4.3			4.7

Restricted Share Awards

A summary of the Company's restricted share award activity for the nine-month period ended September 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		44		$	77.89
Vested		(51	)	$	38.27
Forfeited		(10	)	$	43.18
Nonvested at September 30, 2011		144		$	46.55

The restricted shares granted in the nine-month period ended September 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:

	Nine Months Ended September 30,
	2011		2010
Total fair value of awards vested during the period	$	3,828	$	950
Pre-tax unrecognized compensation expense, net of estimated forfeitures as of September 30, 2011	$	3,327
Weighted-average period (in years) to be recognized as expense		2.0