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STOCKHOLDERS' EQUITY
 6 Months Ended
Jun. 30, 2012
STOCKHOLDERS' EQUITY [Abstract]  
STOCKHOLDERS' EQUITY
NOTE 2 - STOCKHOLDERS' EQUITY

STOCK-BASED COMPENSATION
 
The Company records stock-based compensation in accordance with the provisions of ASC 718, "Compensation-Stock Compensation." The Company's results for the three and six months ended June 30, 2012 and 2011 reflected the following stock-based compensation cost, and such compensation cost had the following effects on net earnings:
 
Increase/(Decrease) for the
Three Months Ended June 30,
 2012 2011
 
Cost of sales
 
$
145
 
 
$
146
 
Operating expenses
 
 
827
 
 
 
759
 
Net earnings
 
 
(620
)
 
 
(564
)
 
 
Increase/(Decrease) for the
Six Months Ended June 30,
 2012 2011
 
Cost of sales
 
$
289
 
 
$
291
 
Operating expenses
 
 
1,657
 
 
 
1,643
 
Net earnings
 
 
(1,231
)
 
 
(1,212
)

As required by ASC 718, the Company has made an estimate of expected forfeitures based on its historical experience and is recognizing compensation cost only for those stock-based compensation awards expected to vest.

The Company's stock incentive plans allow for the granting of restricted stock awards and options to purchase common stock. Both incentive stock options and nonqualified stock options can be awarded under the plans. No option will be exercisable for longer than ten years after the date of grant. The Company has approved and reserved a number of shares to be issued upon exercise of the outstanding options that is adequate to cover all exercises. As of June 30, 2012, the plans had 4,521,024 shares available for future awards. Compensation expense for stock options and restricted stock awards is recognized on a straight-line basis over the vesting period, generally three years for stock options, four years for employee restricted stock awards, and four to seven years for non-employee director restricted stock awards. Certain awards provide for accelerated vesting if there is a change in control (as defined in the plans) or other qualifying events.

Option activity for the six months ended June 30, 2012 and 2011 is summarized below:

 
 
For the six months ended June 30, 2012
 
 
 
 
Shares (000s)
 
 
Weighted Average Exercise Price
 
 
 
Aggregate Intrinsic Value ($000s)
 
 
Weighted Average Remaining Contractual Term
 
Outstanding as of December 31, 2011
 
 
2,514
 
 
$
14.68
 
 
$
65,043
 
 
 
 
  Granted
 
 
225
 
 
 
29.11
 
 
 
 
 
 
 
 
  Exercised
 
 
(92
)
 
 
9.52
 
 
 
 
 
 
 
 
  Forfeited
 
 
(5
)
 
 
28.87
 
 
 
 
 
 
 
 
Outstanding as of June 30, 2012
 
 
2,642
 
 
$
16.06
 
 
$
43,855
 
 
 
 5.4
 
Exercisable as of June 30, 2012
 
 
 2,068
 
 
$
12.51
 
 
$
41,588
 
 
 
 4.5
 
 
 
 
For the six months ended June 30, 2011
 
 
 
 
Shares (000s)
 
 
Weighted Average Exercise Price
 
 
 
Aggregate Intrinsic Value ($000s)
 
 
Weighted Average Remaining Contractual Term
 
Outstanding as of December 31, 2010
 
 
2,955
 
 
$
14.21
 
 
$
57,930
 
 
 
 
  Granted
 
 
14
 
 
 
40.10
 
 
 
 
 
 
 
 
  Exercised
 
 
(195
)
 
 
11.85
 
 
 
 
 
 
 
 
  Forfeited
 
 
(50
)
 
 
24.47
 
 
 
 
 
 
 
 
Outstanding as of June 30, 2011
 
 
2,724
 
 
$
14.32
 
 
$
80,246
 
 
 
 5.9
 
Exercisable as of June 30, 2011
 
 
 2,037
 
 
$
10.67
 
 
$
67,422
 
 
 
 5.0
 

ASC 718 requires companies to measure the cost of employee services received in exchange for an award of equity instruments based on the grant-date fair value of the award. The fair value of each option grant is estimated on the date of the grant using the Black-Scholes option-pricing model with the following weighted average assumptions: dividend yields of 0.5% and 0.5%; expected volatilities of 41% and 36%; risk-free interest rates of 0.8% and 1.4%; and expected lives of 4.6 and 4.5 years, in each case for the six months ended June 30, 2012 and 2011, respectively.

The Company used a projected expected life for each award granted based on historical experience of employees' exercise behavior. Expected volatility is based on the Company's historical volatility levels. Dividend yields are based on the Company's historical dividend yields. Risk-free interest rates are based on the implied yields currently available on U.S. Treasury zero coupon issues with a remaining term equal to the expected life.
 
Other information pertaining to option activity during the three and six months ended June 30, 2012 and 2011 was as follows:
 
 
Three Months Ended
June 30,
 
 
Six Months Ended
June 30,
 
 
2012
 
 
2011
 
 
2012
 
 
2011
 
Weighted-average fair value of options granted
 
$
10.37
 
 
$
12.43
 
 
$
9.75
 
 
$
12.25
 
Total intrinsic value of stock options exercised ($000s)
 
$
411
 
 
$
3,187
 
 
$
2,590
 
 
$
5,129
 

Non-vested restricted stock activity for the six months ended June 30, 2012 and 2011 is summarized below:
 
 
 
Six months ended June 30, 2012
 
 
 
Shares (000s)
 
 
Weighted Average Grant Date Fair Value
 
Non-vested balance as of December 31, 2011
 
 
354
 
 
$
18.77
 
Granted
 
 
44
 
 
 
29.06
 
Vested
 
 
(80
)
 
 
13.72
 
Non-vested balance as of June 30, 2012
 
 
318
 
 
$
21.48
 

 
 
Six months ended June 30, 2011
 
 
 
Shares (000s)
 
 
Weighted Average Grant Date Fair Value
 
Non-vested balance as of December 31, 2010
 
 
363
 
 
$
17.66
 
Granted
 
 
1
 
 
 
40.88
 
Vested
 
 
(7
)
 
 
12.41
 
Forfeited
 
 
(17
)
 
 
19.12
 
Non-vested balance as of June 30, 2011
 
 
340
 
 
$
17.77
 

As of June 30, 2012 and 2011, there was $6,883 and $6,545 respectively, of total unrecognized compensation cost related to non-vested share-based compensation arrangements granted under the plans. As of June 30, 2012, the unrecognized compensation cost is expected to be recognized over a weighted-average period of 1.3 years. The Company estimates that share-based compensation expense for the year ended December 31, 2012 will be approximately $3,900.

REPURCHASE OF COMMON STOCK

The Company has an approved stock repurchase program. The total authorization under this program is 3,763,038 shares. Since the inception of the program in June 1999, a total of 2,033,700 shares have been purchased, none of which remained in treasury at June 30, 2012 or 2011. During the six months ended June 30, 2012, a total of 23,212 shares have been purchased at an average cost of $41.53 per share. The Company intends to acquire shares from time to time at prevailing market prices if and to the extent it deems it advisable to do so based on its assessment of corporate cash flow, market conditions and other factors.