Share-Based Compensation (Tables)

3 Months Ended

Apr. 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 was estimated using the following weighted average assumptions:

	Three months ended
	April 1, 2012	April 3, 2011
Option Plan Shares
Dividend yield	None	None
Expected volatility	0.43	0.43
Risk-free interest rate	0.62%	1.72%
Expected term	4.3 years	4.3 years
Estimated annual forfeiture rate	8.57%	7.32%
Weighted average fair value at grant date	$17.09	$17.94
Employee Stock Purchase Plan Shares
Dividend yield	None	None
Expected volatility	0.38	0.43
Risk-free interest rate	0.15%	0.17%
Expected term	½ year	½ year
Weighted average fair value at purchase date	$12.24	$13.79

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 April 1, 2012 and changes during the three months ended April 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 January 1, 2012	17,559		$	36.55	3.4	$	257,251
Granted	1,895		47.92
Exercised	(1,694	)	25.69			39,385
Forfeited	(88	)	32.00
Expired	(60	)	56.96
Options and SARs outstanding at April 1, 2012	17,612		38.78		3.7	223,551
Options and SARs vested and expected to vest after April 1, 2012, net of forfeitures	16,817		38.59		3.6	217,966
Options and SARs exercisable at April 1, 2012	10,840		39.05		2.4	146,504

Summary of the changes in RSUs outstanding

A summary of the changes in RSUs outstanding under the Company’s share-based compensation plans during the three months ended April 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 January 1, 2012	2,051		$	40.22	$	100,913
Granted	1,222		47.78
Vested	(521	)	48.17		25,111
Forfeited	(31	)	42.66
Assumed through acquisition	59		46.63
Non-vested share units at April 1, 2012	2,780		44.27		137,852

Share-based compensation expense

The following tables set forth the detailed allocation of the share-based compensation expense (in thousands):

	Three months ended
	April 1, 2012			April 3, 2011
Share-based compensation expense by caption:
Cost of product revenues	$	1,537		$	943
Research and development	10,027			7,244
Sales and marketing	3,629			2,174
General and administrative	3,887			4,230
Total share-based compensation expense	19,080			14,591
Total tax benefit recognized	(5,169		)	(4,383		)
Decrease in net income	$	13,911		$	10,208
Share-based compensation expense by type of award:
Stock options and SARs	$	9,216		$	8,683
RSUs	7,894			3,839
ESPP	1,970			2,069
Total share-based compensation expense	19,080			14,591
Total tax benefit recognized	(5,169		)	(4,383		)
Decrease in net income	$	13,911		$	10,208

Fair value of options and RSUs

The total grant date fair value of options and RSUs vested was as follows (in thousands):

	Three months ended
	April 1, 2012		April 3, 2011
Fair value of options vested	$	14,760	$	11,942
Fair value of RSUs vested	19,301		9,117
Total fair value of options and RSUs vested	$	34,061	$	21,059