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Share-Based Compensation (Tables)
 12 Months Ended
Jan. 01, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Fair value of stock options granted to employees, officers and non-employee board members and ESPP shares granted to employees
. The fair value of the Company’s stock options granted to employees, officers and non-employee board members and ESPP shares issued to employees, excluding unvested stock options assumed through the acquisition of Pliant, was estimated using the following annual weighted average assumptions:
 
Fiscal years ended
 
January 1,
2012
 
January 2,
2011
 
January 3,
2010
Option Plan Shares
 
 
 
 
 
Dividend yield
None
 
None
 
None
Expected volatility
0.43
 
0.50
 
0.85
Risk-free interest rate
1.49%
 
1.53%
 
1.41%
Expected term
4.3 years
 
3.9 years
 
3.6 years
Estimated annual forfeiture rate
8.57%
 
7.32%
 
9.07%
Weighted average fair value at grant date
$17.37
 
$12.58
 
$5.36
 
 
 
 
 
 
Employee Stock Purchase Plan Shares
 
 
 
 
 
Dividend yield
None
 
None
 
None
Expected volatility
0.43
 
0.56
 
0.73
Risk-free interest rate
0.13%
 
0.18%
 
0.35%
Expected term
½ year
 
½ year
 
½ year
Weighted average fair value at purchase date
$12.17
 
$9.95
 
$4.82
Stock options and stock appreciation rights
A summary of stock option and stock appreciation rights (“SARs”) activity under all of the Company’s share-based compensation plans as of January 1, 2012 and changes during the three fiscal years ended January 1, 2012 is presented below (in thousands, except exercise price and contractual term):
 
Shares
 
Weighted Average Exercise Price
 
Weighted Average Remaining Contractual Term (Years)
 
Aggregate Intrinsic Value
Options and SARs outstanding at December 28, 2008
25,057

 
$
33.59

 
4.9
 
$
5,284

Granted
4,242

 
9.41

 
 
 
 

Exercised
(964
)
 
12.60

 
 
 
5,807

Forfeited
(1,376
)
 
32.94

 
 
 
 

Expired
(2,063
)
 
38.97

 
 
 
 

Options and SARs outstanding at January 3, 2010
24,896

 
29.87

 
4.4
 
180,834

Granted
3,016

 
31.67

 
 
 
 

Exercised
(6,471
)
 
22.08

 
 
 
137,976

Forfeited
(449
)
 
24.14

 
 
 
 

Expired
(599
)
 
49.15

 
 
 
 

Options and SARs outstanding at January 2, 2011
20,393

 
32.18

 
3.8
 
393,996

Granted
3,157

 
44.96

 
 
 


Exercised
(5,310
)
 
24.81

 
 
 
126,929

Forfeited
(536
)
 
29.09

 
 
 
 

Expired
(354
)
 
51.79

 
 
 
 

Options assumed through acquisition
209

 
4.35

 
 
 
 

Options and SARs outstanding at January 1, 2012
17,559

 
36.55

 
3.4
 
257,251

Options and SARs vested and expected to vest after January 1, 2012, net of forfeitures
16,963

 
36.50

 
3.4
 
250,522

Options and SARs exercisable at January 1, 2012
11,535

 
37.66

 
2.4
 
167,117
Summary of the changes in RSUs outstanding
A summary of the changes in RSUs outstanding under the Company’s share-based compensation plan during the three fiscal years ended January 1, 2012 is presented below (in thousands, except for weighted average grant date fair value):
 
Shares
 
Weighted Average Grant Date Fair Value
 
Aggregate Intrinsic Value
Non-vested share units at December 28, 2008
1,523

 
$
25.38

 
$
13,983

Granted
95

 
15.12

 
 

Vested
(559
)
 
26.40

 
7,977

Forfeited
(215
)
 
20.86

 
 

Non-vested share units at January 3, 2010
844

 
24.69

 
24,476

Granted
1,100

 
29.39

 
 

Vested
(632
)
 
25.11

 
24,476

Forfeited
(68
)
 
24.67

 
 

Non-vested share units at January 2, 2011
1,244

 
28.64

 
62,007

Granted
1,335

 
47.56

 
 

Vested
(396
)
 
29.63

 
19,309

Forfeited
(132
)
 
37.24

 
 

Non-vested share units at January 1, 2012
2,051

 
40.22

 
100,913
Share-based compensation expense
The following tables set forth the detailed allocation of the share-based compensation expense (in thousands):
 
Fiscal years ended
 
January 1,
2012
 
January 2,
2011
 
January 3,
2010
Share-based compensation expense by caption:
 
 
 
 
 
Cost of product revenues
$
4,674

 
$
5,821

 
$
12,427

Research and development
34,202

 
26,292

 
36,399

Sales and marketing
10,593

 
10,934

 
19,247

General and administrative
13,641

 
34,543

 
27,487

Total share-based compensation expense
63,110

 
77,590

 
95,560

Total tax benefit recognized
(17,008
)
 
(26,720
)
 
(23,767
)
Decrease in net income
$
46,102

 
$
50,870

 
$
71,793

 
 
 
 
 
 
Share-based compensation expense by type of award:
 

 
 

 
 

Stock options and SARs
$
33,684

 
$
55,821

 
$
79,859

RSUs
22,355

 
15,081

 
11,922

ESPP
7,071

 
6,688

 
3,779

Total share-based compensation expense
63,110

 
77,590

 
95,560

Total tax benefit recognized
(17,008
)
 
(26,720
)
 
(23,767
)
Decrease in net income
$
46,102

 
$
50,870

 
$
71,793
Fair value of options and RSUs
The total grant date fair value of options and RSUs vested was as follows (in thousands):
 
Fiscal years ended
 
January 1,
2012
 
January 2,
2011
 
January 3,
2010
Fair value of options vested
$
33,868

 
$
40,509

 
$
59,207

Fair value of RSUs vested
11,747

 
15,868

 
14,755

Total fair value of options and RSUs vested
$
45,615

 
$
56,377

 
$
73,962