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Stock-Based Compensation (Tables)
12 Months Ended
Dec. 31, 2013
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
Summary of Stock Option Activity

The following table summarizes the Company’s stock option activity for the year ended December 31, 2013:

 

     Shares
(in thousands)
    Weighted-
Average
Exercise
Price
     Weighted-
Average
Remaining
Contractual
Term
(in  years)
     Aggregate
Intrinsic Value
(in thousands)
 

Outstanding as of December 31, 2012

     7,118      $ 12.78         

Granted

     1,740        21.47         

Exercised

     (2,445     11.37         

Forfeited or expired

     (275     16.39         
  

 

 

   

 

 

       

Outstanding as of December 31, 2013

     6,138      $ 15.65         7.2       $ 138,302   
  

 

 

   

 

 

    

 

 

    

 

 

 

Exercisable as of December 31, 2013

     1,678      $ 11.72         5.3       $ 44,386   
  

 

 

   

 

 

    

 

 

    

 

 

 

Options vested or expected to vest at December 31, 2013 (1)

     5,541      $ 15.32         7.1       $ 126,670   
  

 

 

   

 

 

    

 

 

    

 

 

 

 

(1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options.
Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted

The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions:

 

     Year Ended December 31,  
     2013     2012     2011  

Risk-free rate

     2.0     2.0     2.9

Expected dividend yield

     -     1.2     1.1

Expected volatility

     42     44     43

Expected term (in years)

     5.8        5.7        5.5   
Stock-Based Compensation Expense

The following table details the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):

 

     Year Ended December 31,  
     2013      2012      2011  

Product cost of revenue

   $ 747       $ 581       $ 456   

Service cost of revenue

     177         161         172   

Research, development, and engineering

     2,585         2,149         2,268   

Selling, general, and administrative

     7,111         5,629         5,172   
  

 

 

    

 

 

    

 

 

 
   $     10,620       $     8,520       $     8,068