Summary of Significant Accounting Policies (Tables)

9 Months Ended

Sep. 30, 2014

Share-Based Compensation Expense and Related Income Tax Benefit

Share-based compensation expense and the related income tax benefit reflected in the Condensed Consolidated Statements of Operations in connection with stock options, restricted stock units, performance-based stock units and the Employee Stock Purchase Plan (“ESPP”) for three and nine months ended September 30, 2014 and 2013 were as follows (in thousands):


	Three Months Ended				Nine Months Ended
	September 30, 2014		September 30, 2013		September 30, 2014		September 30, 2013
Stock options	$	318	$	737	$	1,323	$	2,922
Restricted stock units		1,260		453		3,012		1,287
Performance-based stock units ⁽¹⁾		161		276		498		776
ESPP		172		235		403		807

Total share-based compensation	$	1,911	$	1,701	$	5,236	$	5,792

Income tax benefit	$	576	$	524	$	1,637	$	1,738

(1)	Includes Performance Stock Units (“PSUs”) and market-performance based units (“MSUs”).

Assumptions Used to Estimate Fair Value of Stock Options Granted and Stock Purchase Rights Granted Under Our Employee Stock Purchase Plan

The assumptions used to estimate the fair value of stock options and stock purchase rights granted, and our Employee Stock Purchase Plan (the “Purchase Plan”) for the nine months ended September 30, 2014 and 2013 are as follows:


	Options Nine months Ended		ESPP Nine months Ended
	September 30, 2014	September 30, 2013	September 30, 2014	September 30, 2013
Volatility	42.39 – 49.94%	50.03 – 53.58%	21.4 – 62.24%	28.63 – 41.52%
Expected term (years)	5.53 – 5.57	5.61 – 5.67	1.25	1.25
Risk free interest rate	1.62 – 1.78%	0.77 – 1.40%	0.05 – 0.47%	0.08 – 0.35%
Expected dividend yield	0%	0%	0%	0%

Schedule of Weighted-Average Common Shares Used to Calculate Basic Net (Loss) Income Per Share

The table below reconciles the weighted-average common shares used to calculate basic net (loss) income per share with the weighted-average common shares used to calculate diluted net (loss) income per share (in thousands).


	Three Months Ended September 30,				Nine months Ended September 30,
	2014		2013		2014		2013
Weighted-average common shares outstanding		46,883		48,175		47,088		48,046
Weighted-average dilutive common equivalent shares under the treasury stock method		—		3,253		—		2,805

Weighted-average common shares used in computing diluted net (loss) income per share		46,883		51,428		47,088		50,851

Schedule of Anti-dilutive Securities Excluded from Computation of Earnings Per Share

The following table sets forth all securities excluded from the computation in the table above because their inclusion would have been either anti-dilutive due to basic net loss per share or dilutive due to the exercise price per share (shares in thousands):


	Three Months Ended September 30,				Nine months Ended September 30,
	2014⁽¹⁾		2013⁽²⁾		2014⁽¹⁾		2013⁽²⁾
Stock Options:
Weighted-average excluded shares		8,202		653		8,464		1,880
Weighted-average exercise price	$	5.25	$	6.16	$	5.25	$	6.01
Awards:
Weighted-average excluded shares		1,650		103		1,324		119

(1)	Common equivalent shares are excluded from the calculation of net loss per share for the three and nine months ended September 30, 2014.

(2)	Anti-dilutive common equivalent shares are excluded from the calculation of diluted net income per share for the three and nine months ended September 30, 2013.