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Share-Based Compensation (Tables)
 6 Months Ended
Jun. 30, 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
 
Six months ended
 
June 30,
2013
 
July 1,
2012
 
June 30,
2013
 
July 1,
2012
Dividend yield
None
 
None
 
None
 
None
Expected volatility
0.32
 
0.40
 
0.38
 
0.43
Risk-free interest rate
0.72%
 
0.53%
 
0.68%
 
0.61%
Expected term
4.3 years
 
3.9 years
 
4.4 years
 
4.3 years
Estimated annual forfeiture rate
8.51%
 
8.59%
 
8.51%
 
8.59%
Weighted average fair value at grant date
$16.22
 
$11.34
 
$16.44
 
$16.72
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
 
Six months ended
 
June 30,
2013
 
July 1,
2012
 
June 30,
2013
 
July 1,
2012
Dividend yield
None
 
None
 
None
 
None
Expected volatility
0.33
 
0.38
 
0.33
 
0.38
Risk-free interest rate
0.13%
 
0.15%
 
0.13%
 
0.15%
Expected term
½ year
 
½ year
 
½ year
 
½ year
Weighted average fair value at purchase date
$12.54
 
$12.24
 
$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 June 30, 2013 and changes during the six months ended June 30, 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
1,010

 
52.14

 
 
 
 
Exercised
(4,954
)
 
34.17

 
 
 
98,469

Forfeited
(300
)
 
43.20

 
 
 
 

Expired
(2,316
)
 
60.78

 
 
 
 

Options and SARs outstanding at June 30, 2013
8,866

 
40.38

 
4.2
 
183,720

Options and SARs vested and expected to vest after June 30, 2013, net of forfeitures
8,440

 
40.00

 
4.1
 
178,132

Options and SARs exercisable at June 30, 2013
4,748

 
35.12

 
3.1
 
123,343
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 June 30, 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
2,131

 
52.25

 
 

Vested
(851
)
 
42.18

 
44,068

Forfeited
(180
)
 
45.97

 
 

Non-vested share units at June 30, 2013
4,177

 
48.15

 
201,113
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
 
June 30,
2013
 
July 1,
2012
 
June 30,
2013
 
July 1,
2012
Share-based compensation expense by caption:
 
 
 
 
 
 
 
Cost of revenues
$
2,447

 
$
1,923

 
$
4,164

 
$
3,460

Research and development
12,704

 
10,623

 
24,344

 
20,650

Sales and marketing
4,701

 
3,634

 
8,572

 
7,263

General and administrative
4,809

 
4,073

 
9,315

 
7,960

Total share-based compensation expense
24,661

 
20,253

 
46,395

 
39,333

Total tax benefit recognized
(6,222
)
 
(4,676
)
 
(13,138
)
 
(9,845
)
Decrease in net income
$
18,439

 
$
15,577

 
$
33,257

 
$
29,488

 
 
 
 
 
 
 
 
Share-based compensation expense by type of award:
 
 
 
 
 
 
 
Stock options and SARs
$
8,054

 
$
9,426

 
$
16,323

 
$
18,642

RSUs
14,788

 
8,608

 
26,758

 
16,502

ESPP
1,819

 
2,219

 
3,314

 
4,189

Total share-based compensation expense
24,661

 
20,253

 
46,395

 
39,333

Total tax benefit recognized
(6,222
)
 
(4,676
)
 
(13,138
)
 
(9,845
)
Decrease in net income
$
18,439

 
$
15,577

 
$
33,257

 
$
29,488
Fair value of options and RSUs
The total grant date fair value of options and RSUs vested during the three and six months ended June 30, 2013 and July 1, 2012 was as follows (in thousands):
 
Three months ended
 
Six months ended
 
June 30,
2013
 
July 1,
2012
 
June 30,
2013
 
July 1,
2012
Fair value of options vested
$
7,282

 
$
8,214

 
$
21,850

 
$
22,974

Fair value of RSUs vested
6,082

 
4,283

 
35,903

 
23,584

Total fair value of options and RSUs vested
$
13,364

 
$
12,497

 
$
57,753

 
$
46,558