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Share-Based Compensation (Tables)
 12 Months Ended
Dec. 30, 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, excluding unvested stock options assumed through acquisitions, was estimated using the following annual weighted average assumptions:
 
Fiscal years ended
 
December 30,
2012
 
January 1,
2012
 
January 2,
2011
Dividend yield
None
 
None
 
None
Expected volatility
0.43
 
0.43
 
0.50
Risk-free interest rate
0.60%
 
1.49%
 
1.53%
Expected term
4.3 years
 
4.3 years
 
3.9 years
Estimated annual forfeiture rate
8.59%
 
8.57%
 
7.32%
Weighted average fair value at grant date
$16.45
 
$17.37
 
$12.58
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions
The fair value of the Company’s ESPP shares issued to employees was estimated using the following weighted average assumptions:
 
Fiscal years ended
 
December 30,
2012
 
January 1,
2012
 
January 2,
2011
Dividend yield
None
 
None
 
None
Expected volatility
0.41
 
0.43
 
0.56
Risk-free interest rate
0.15%
 
0.13%
 
0.18%
Expected term
½ year
 
½ year
 
½ year
Weighted average fair value at purchase date
$11.87
 
$12.17
 
$9.95
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 December 30, 2012 and changes during the three fiscal years ended December 30, 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 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

Granted
2,336

 
46.49

 
 
 
 
Exercised
(3,403
)
 
21.32

 
 
 
81,622

Forfeited
(469
)
 
38.12

 
 
 
 

Expired
(597
)
 
53.10

 
 
 
 

Options and SARs outstanding at December 30, 2012
15,426

 
40.73

 
3.2
 
109,411

Options and SARs vested and expected to vest after December 30, 2012, net of forfeitures
14,953

 
40.60

 
3.1
 
108,480

Options and SARs exercisable at December 30, 2012
10,535

 
39.93

 
2.1
 
89,646
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 December 30, 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 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

Granted
1,840

 
45.04

 
 

Vested
(646
)
 
47.75

 
29,479

Forfeited
(227
)
 
42.85

 
 

Assumed through acquisition
59

 
46.63

 
 

Non-vested share units at December 30, 2012
3,077

 
43.51

 
131,622
Share-based compensation expense
The following tables set forth the detailed allocation of the share-based compensation expense (in thousands):
 
Fiscal years ended
 
December 30,
2012
 
January 1,
2012
 
January 2,
2011
Share-based compensation expense by caption:
 
 
 
 
 
Cost of product revenues
$
7,459

 
$
4,674

 
$
5,821

Research and development
41,009

 
34,202

 
26,292

Sales and marketing
14,585

 
10,593

 
10,934

General and administrative
15,390

 
13,641

 
34,543

Total share-based compensation expense
78,443

 
63,110

 
77,590

Total tax benefit recognized
(20,122
)
 
(17,008
)
 
(26,720
)
Decrease in net income
$
58,321

 
$
46,102

 
$
50,870

 
 
 
 
 
 
Share-based compensation expense by type of award:
 
 
 
 
 
Stock options and SARs
$
35,428

 
$
33,684

 
$
55,821

RSUs
35,260

 
22,355

 
15,081

ESPP
7,755

 
7,071

 
6,688

Total share-based compensation expense
78,443

 
63,110

 
77,590

Total tax benefit recognized
(20,122
)
 
(17,008
)
 
(26,720
)
Decrease in net income
$
58,321

 
$
46,102

 
$
50,870
Fair value of options and RSUs
The total grant date fair value of options and RSUs vested during the three years ended December 30, 2012 was as follows (in thousands):
 
Fiscal years ended
 
December 30,
2012
 
January 1,
2012
 
January 2,
2011
Fair value of options vested
$
37,674

 
$
33,868

 
$
40,509

Fair value of RSUs vested
24,327

 
11,747

 
15,868

Total fair value of options and RSUs vested
$
62,001

 
$
45,615

 
$
56,377