Stock-Based Compensation

6 Months Ended

Jun. 30, 2011

Stock-Based Compensation

Stock-Based Compensation

(3) Stock-Based Compensation

In the three months ended June 30, 2010 and 2011, we recognized $1.6 million and $1.8 million, respectively, in stock-based compensation expense. A majority of the expense, $1.5 million and $1.6 million, respectively, was recorded as selling and administrative expenses in the Consolidated Statement of Income, with the remaining expenses incurred as cost of sales and research and development.

In the six months ended June 30, 2010 and 2011, we recognized $3.4 million and $4.0 million, respectively, in stock-based compensation expense. A majority of the expense, $3.1 million and $3.5 million, respectively, was recorded as selling and administrative expenses in the Consolidated Statement of Income, with the remaining expenses incurred as cost of sales and research and development.

As of June 30, 2011, the total compensation cost related to non-vested restricted stock and performance shares and stock options not yet recognized was $14.4 million, which will be recognized over the weighted average life of 1.4 years.

Restricted Stock and Performance Shares

Restricted stock and performance share awards activity under the plans for the six months ended June 30, 2011 was:

	Number of Shares			Weighted- Average Grant Date Fair Value
Outstanding unvested at January 1, 2011		1,338,053		$	15.91
Granted		133,986			22.79
Vested		(150,996	)		16.90
Forfeited/canceled/expired		(218,097	)		18.12
Outstanding unvested at June 30, 2011		1,102,946		$	16.18

Stock Options

Stock option activity under the plans for the six months ended June 30, 2011 was:

	Number of Shares			Weighted- Average Exercise Price
Outstanding at January 1, 2011		1,274,107		$	11.96
Granted		7,600			20.73
Forfeited/canceled/expired		(38,971	)		18.30
Exercised		(125,666	)		9.33
Outstanding at June 30, 2011		1,117,070		$	12.10