Share-Based Compensation (Tables)

3 Months Ended

Mar. 31, 2013

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 weighted average assumptions:

	Three months ended
	March 31, 2013	April 1, 2012
Dividend yield	None	None
Expected volatility	0.38	0.43
Risk-free interest rate	0.67%	0.62%
Expected term	4.4 years	4.3 years
Estimated annual forfeiture rate	8.59%	8.57%
Weighted average fair value at grant date	$16.46	$17.09

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:

	Three months ended
	March 31, 2013	April 1, 2012
Dividend yield	None	None
Expected volatility	0.33	0.38
Risk-free interest rate	0.13%	0.15%
Expected term	½ year	½ year
Weighted average fair value at purchase date	$12.54	$12.24

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 March 31, 2013 and changes during the three months endedMarch 31, 2013 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 December 30, 2012	15,426		$	40.73	3.2	$	109,411
Granted	910		51.38
Exercised	(2,942	)	32.29			55,870
Forfeited	(113	)	42.77
Expired	(2,169	)	60.94
Options and SARs outstanding at March 31, 2013	11,112		39.87		4.0	168,991
Options and SARs vested and expected to vest after March 31, 2013, net of forfeitures	10,589		39.51		3.9	164,943
Options and SARs exercisable at March 31, 2013	6,435		35.84		2.9	124,402

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 endedMarch 31, 2013 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 30, 2012	3,077		$	43.51	$	131,622
Granted	1,839		51.50
Vested	(697	)	42.83		35,026
Forfeited	(68	)	43.81
Non-vested share units at March 31, 2013	4,151		47.18		195,851

Share-based compensation expense

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

	Three months ended
	March 31, 2013			April 1, 2012
Share-based compensation expense by caption:
Cost of revenues	$	1,717		$	1,537
Research and development	11,640			10,027
Sales and marketing	3,871			3,629
General and administrative	4,506			3,887
Total share-based compensation expense	21,734			19,080
Total tax benefit recognized	(6,916		)	(5,169		)
Decrease in net income	$	14,818		$	13,911
Share-based compensation expense by type of award:
Stock options and SARs	$	8,269		$	9,216
RSUs	11,970			7,894
ESPP	1,495			1,970
Total share-based compensation expense	21,734			19,080
Total tax benefit recognized	(6,916		)	(5,169		)
Decrease in net income	$	14,818		$	13,911

Fair value of options and RSUs

The total grant date fair value of options and RSUs vested during the three months ended March 31, 2013 and April 1, 2012 was as follows (in thousands):

	Three months ended
	March 31, 2013		April 1, 2012
Fair value of options vested	$	14,568	$	14,760
Fair value of RSUs vested	29,821		19,301
Total fair value of options and RSUs vested	$	44,389	$	34,061