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Equity and Share-Based Compensation (Tables)
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3 Months Ended |
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Mar. 30, 2014
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| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
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| Dividends Declared |
Through March 30, 2014, the Company’s Board of Directors declared the following dividends: | | | | | | | | | | | | | | Declaration Date | | Dividend per Share | | Record Date | | Total Amount Declared | | Payment Date | | | | | | | (In millions) | | | January 21, 2014 | | $ | 0.225 |
| | February 3, 2014 | | $ | 51.7 |
| | February 24, 2014 |
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| 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, excluding unvested stock options assumed through acquisitions, was estimated using the following weighted-average assumptions: | | | | | | Three months ended | | March 30,
2014 | | March 31,
2013 | Dividend yield | 1.25% – 1.44% | | —% | Expected volatility | 0.32 | | 0.38 | Risk-free interest rate | 1.22% | | 0.67% | Expected term | 4.4 years | | 4.4 years | Estimated annual forfeiture rate | 8.51% | | 8.59% | Weighted-average fair value at grant date | $18.53 | | $16.46 |
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| 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 30,
2014 | | March 31,
2013 | Dividend yield | 1.65% | | —% | Expected volatility | 0.31 | | 0.33 | Risk-free interest rate | 0.08% | | 0.13% | Expected term | ½ year | | ½ year | Weighted-average fair value at purchase date | $17.25 | | $12.54 |
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| Stock options and stock appreciation rights |
A summary of stock option and SARs activities under all of the Company’s share-based compensation plans as of March 30, 2014 and changes during the three months ended March 30, 2014 are 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 29, 2013 | 6,593 |
| | $ | 40.66 |
| | 4.2 | | $ | 195,018 |
| Granted | 937 |
| | 74.50 |
| | | | | Exercised | (1,634 | ) | | 38.48 |
| | | | 57,828 |
| Forfeited | (58 | ) | | 49.08 |
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| Expired | (1 | ) | | 40.77 |
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| Options and SARs outstanding at March 30, 2014 | 5,837 |
| | 46.62 |
| | 4.7 | | 198,394 |
| Options and SARs vested and expected to vest after March 30, 2014, net of forfeitures | 5,445 |
| | 45.75 |
| | 4.6 | | 189,811 |
| Options and SARs exercisable at March 30, 2014 | 2,188 |
| | 33.69 |
| | 3.2 | | 102,668 |
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| 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 ended March 30, 2014 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 29, 2013 | 4,454 |
| | $ | 49.87 |
| | $ | 221,457 |
| Granted | 1,970 |
| | 74.50 |
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| Vested | (1,077 | ) | | 46.29 |
| | 80,409 |
| Forfeited | (83 | ) | | 52.04 |
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| Non-vested share units at March 30, 2014 | 5,264 |
| | 59.63 |
| | 314,389 |
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| Share-based compensation expense |
The following tables set forth the detailed allocation of the share-based compensation expense (in thousands): | | | | | | | | | | Three months ended | | March 30,
2014 | | March 31,
2013 | Share-based compensation expense by caption: | | | | Cost of revenue | $ | 2,610 |
| | $ | 1,717 |
| Research and development | 15,675 |
| | 11,640 |
| Sales and marketing | 6,257 |
| | 3,871 |
| General and administrative | 5,488 |
| | 4,506 |
| Total share-based compensation expense | 30,030 |
| | 21,734 |
| Total tax benefit recognized | (8,776 | ) | | (6,916 | ) | Decrease in net income | $ | 21,254 |
| | $ | 14,818 |
| | | | | Share-based compensation expense by type of award: | | | | Stock options and SARs | $ | 7,924 |
| | $ | 8,269 |
| RSUs | 19,465 |
| | 11,970 |
| ESPP | 2,641 |
| | 1,495 |
| Total share-based compensation expense | 30,030 |
| | 21,734 |
| Total tax benefit recognized | (8,776 | ) | | (6,916 | ) | Decrease in net income | $ | 21,254 |
| | $ | 14,818 |
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| Fair value of options and RSUs |
The total grant date fair value of options and RSUs vested during the three months ended March 30, 2014 and March 31, 2013 was as follows (in thousands): | | | | | | | | | | Three months ended | | March 30,
2014 | | March 31,
2013 | Options | $ | 10,228 |
| | $ | 14,568 |
| RSUs | 49,866 |
| | 29,821 |
| Total grant date fair value of vested options and RSUs | $ | 60,094 |
| | $ | 44,389 |
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