This excerpt taken from the SMSC 10-Q filed Jan 8, 2009.
14. Benefit and Incentive Plans (Including Share-Based Payments)
The Company has several stock-based compensation plans in effect under which incentive stock options and non-qualified stock options (collectively Stock Options), restricted stock awards (RSAs) and stock appreciation rights (SARs) are granted to employees and directors. Stock Options, RSAs and SARs are granted with exercise prices not less than the fair value of the underlying shares on the date of grant.
The following table summarizes the compensation expense for Stock Options, RSAs and SARs at fair value as measured per the provisions of SFAS No. 123R (revised 2004), Share-Based Payments (SFAS 123R) included in our condensed consolidated income statements (in thousands):