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Equity and Share-Based Compensation (Tables)
 9 Months Ended
Sep. 29, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Dividends Declared
Through September 29, 2013, the Company’s Board of Directors declared the following dividends:
Declaration Date
 
Dividend per Share
 
Record Date
 
Total Amount
 
Payment Date
 
 
 
 
 
 
(In millions)
 
 
July 31, 2013
 
$
0.225

 
August 12, 2013
 
$
51.6

 
August 30, 2013
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
 
Nine months ended
 
September 29,
2013
 
September 30,
2012
 
September 29,
2013
 
September 30,
2012
Dividend yield
0% - 1.63%
 
None
 
0% - 1.63%
 
None
Expected volatility
0.35
 
0.45
 
0.37
 
0.43
Risk-free interest rate
1.21%
 
0.51%
 
0.73%
 
0.60%
Expected term
4.3 years
 
4.3 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
$14.66
 
$15.39
 
$16.26
 
$16.63
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
 
Nine months ended
 
September 29,
2013
 
September 30,
2012
 
September 29,
2013
 
September 30,
2012
Dividend yield
0% - 1.63%
 
None
 
0% - 1.63%
 
None
Expected volatility
0.35
 
0.44
 
0.34
 
0.41
Risk-free interest rate
0.08%
 
0.14%
 
0.11%
 
0.15%
Expected term
½ year
 
½ year
 
½ year
 
½ year
Weighted average fair value at purchase date
$13.72
 
$11.38
 
$13.08
 
$11.87
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 September 29, 2013 and changes during the nine months ended September 29, 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
1,126

 
52.56

 
 
 
 
Exercised
(5,782
)
 
34.56

 
 
 
117,358

Forfeited
(369
)
 
43.39

 
 
 
 

Expired
(2,362
)
 
60.70

 
 
 
 

Options assumed through acquisition
183

 
19.37

 
 
 
 
Options and SARs outstanding at September 29, 2013
8,222

 
40.36

 
4.2
 
161,027

Options and SARs vested and expected to vest after September 29, 2013, net of forfeitures
7,843

 
40.02

 
4.1
 
156,295

Options and SARs exercisable at September 29, 2013
4,325

 
35.15

 
3.1
 
107,227
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 nine months ended September 29, 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
2,448

 
52.68

 
 

Vested
(909
)
 
41.94

 
47,403

Forfeited
(243
)
 
46.28

 
 

Non-vested share units at September 29, 2013
4,373

 
48.83

 
213,544
Share-based compensation expense
The following tables set forth the detailed allocation of the share-based compensation expense (in thousands):
 
Three months ended
 
Nine months ended
 
September 29,
2013
 
September 30,
2012
 
September 29,
2013
 
September 30,
2012
Share-based compensation expense by caption:
 
 
 
 
 
 
 
Cost of revenues
$
2,716

 
$
1,929

 
$
6,880

 
$
5,389

Research and development
13,142

 
10,379

 
37,486

 
31,029

Sales and marketing
5,241

 
3,794

 
13,813

 
11,057

General and administrative
4,831

 
3,848

 
14,146

 
11,808

Total share-based compensation expense
25,930

 
19,950

 
72,325

 
59,283

Total tax benefit recognized
(7,227
)
 
(5,464
)
 
(20,365
)
 
(15,309
)
Decrease in net income
$
18,703

 
$
14,486

 
$
51,960

 
$
43,974

 
 
 
 
 
 
 
 
Share-based compensation expense by type of award:
 
 
 
 
 
 
 
Stock options and SARs
$
8,035

 
$
8,550

 
$
24,358

 
$
27,192

RSUs
15,900

 
9,405

 
42,658

 
25,907

ESPP
1,995

 
1,995

 
5,309

 
6,184

Total share-based compensation expense
25,930

 
19,950

 
72,325

 
59,283

Total tax benefit recognized
(7,227
)
 
(5,464
)
 
(20,365
)
 
(15,309
)
Decrease in net income
$
18,703

 
$
14,486

 
$
51,960

 
$
43,974
Fair value of options and RSUs
The total grant date fair value of options and RSUs vested during the three and nine months ended September 29, 2013 and September 30, 2012 was as follows (in thousands):
 
Three months ended
 
Nine months ended
 
September 29,
2013
 
September 30,
2012
 
September 29,
2013
 
September 30,
2012
Fair value of options vested
$
7,018

 
$
7,751

 
$
28,868

 
$
30,725

Fair value of RSUs vested
2,206

 
520

 
38,109

 
24,104

Total fair value of options and RSUs vested
$
9,224

 
$
8,271

 
$
66,977

 
$
54,829