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Equity and Share-Based Compensation (Tables)
 3 Months Ended
Mar. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
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
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
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
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

 
 
 
 

Expired
(1
)
 
40.77

 
 
 
 

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
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

 
 

Vested
(1,077
)
 
46.29

 
80,409

Forfeited
(83
)
 
52.04

 
 

Non-vested share units at March 30, 2014
5,264

 
59.63

 
314,389
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
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