Share-Based Compensation (Tables)

6 Months Ended

Jul. 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

Option Plan Shares. The fair value of the Company’s stock options granted to employees, officers and non-employee board members was estimated using the following weighted average assumptions:

	Three months ended		Six months ended
	July 1, 2012	July 3, 2011	July 1, 2012	July 3, 2011
Dividend yield	None	None	None	None
Expected volatility	0.40	0.43	0.43	0.43
Risk-free interest rate	0.53%	1.33%	0.61%	1.68%
Expected term	3.9 years	4.3 years	4.3 years	4.3 years
Estimated annual forfeiture rate	8.59%	8.57%	8.59%	8.57%
Weighted average fair value at grant date	$11.34	$16.11	$16.72	$17.75

Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block]

Employee Stock Purchase Plan Shares. The fair value of the Company’s ESPP shares issued to employees was estimated using the following weighted average assumptions:

	Three months ended		Six months ended
	July 1, 2012	July 3, 2011	July 1, 2012	July 3, 2011
Dividend yield	None	None	None	None
Expected volatility	0.38	0.43	0.38	0.43
Risk-free interest rate	0.15%	0.17%	0.15%	0.17%
Expected term	½ year	½ year	½ year	½ year
Weighted average fair value at purchase date	$12.24	$13.79	$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 July 1, 2012 and changes during the six months ended July 1, 2012 is presented below (in thousands, except for weighted average exercise price and remaining 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	2,028		47.12
Exercised	(2,109	)	23.64			49,353
Forfeited	(164	)	33.30
Expired	(171	)	53.44
Options and SARs outstanding at July 1, 2012	17,143		39.26		3.5	101,671
Options and SARs vested and expected to vest after July 1, 2012, net of forfeitures	16,469		39.08		3.4	100,224
Options and SARs exercisable at July 1, 2012	11,013		39.12		2.4	73,039

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 six months ended July 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	1,536		45.50
Vested	(622	)	47.87		28,466
Forfeited	(72	)	43.62
Assumed through acquisition	59		46.63
Non-vested share units at July 1, 2012	2,952		43.47		107,687

Share-based compensation expense

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

	Three months ended						Six months ended
	July 1, 2012			July 3, 2011			July 1, 2012			July 3, 2011
Share-based compensation expense by caption:
Cost of product revenues	$	1,923		$	1,090		$	3,460		$	2,032
Research and development	10,623			7,684			20,650			14,928
Sales and marketing	3,634			2,867			7,263			5,042
General and administrative	4,073			2,717			7,960			6,947
Total share-based compensation expense	20,253			14,358			39,333			28,949
Total tax benefit recognized	(4,676		)	(3,349		)	(9,845		)	(7,732		)
Decrease in net income	$	15,577		$	11,009		$	29,488		$	21,217
Share-based compensation expense by type of award:
Stock options and SARs	$	9,426		$	6,966		$	18,642		$	15,648
RSUs	8,608			5,271			16,502			9,110
ESPP	2,219			2,121			4,189			4,191
Total share-based compensation expense	20,253			14,358			39,333			28,949
Total tax benefit recognized	(4,676		)	(3,349		)	(9,845		)	(7,732		)
Decrease in net income	$	15,577		$	11,009		$	29,488		$	21,217

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				Six months ended
	July 1, 2012		July 3, 2011		July 1, 2012		July 3, 2011
Fair value of options vested	$	8,214	$	7,458	$	22,974	$	19,401
Fair value of RSUs vested	4,283		1,227		23,584		10,345
Total fair value of options and RSUs vested	$	12,497	$	8,685	$	46,558	$	29,746