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Equity and Share-Based Compensation (Tables)
 6 Months Ended
Jun. 29, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Dividends Declared
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
April 15, 2014
 
0.225

 
May 5, 2014
 
52.0

 
May 27, 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
 
Six months ended
 
June 29,
2014
 
June 30,
2013
 
June 29,
2014
 
June 30,
2013
Dividend yield
1.20% - 1.25%
 
—%
 
1.20% - 1.44%
 
—%
Expected volatility
0.31
 
0.32
 
0.32
 
0.38
Risk-free interest rate
1.19%
 
0.72%
 
1.22%
 
0.68%
Expected term
4.2 years
 
4.3 years
 
4.4 years
 
4.4 years
Estimated annual forfeiture rate
8.79%
 
8.51%
 
8.79%
 
8.51%
Weighted-average fair value at grant date
$24.07
 
$16.22
 
$18.83
 
$16.44
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions
The fair value of shares issued under the Company’s ESPP program was estimated using the following weighted-average assumptions:
 
Three months ended
 
Six months ended
 
June 29,
2014
 
June 30,
2013
 
June 29,
2014
 
June 30,
2013
Dividend yield
1.25%
 
—%
 
1.25%
 
—%
Expected volatility
0.31
 
0.33
 
0.31
 
0.33
Risk-free interest rate
0.08%
 
0.13%
 
0.08%
 
0.13%
Expected term
½ year
 
½ year
 
½ year
 
½ year
Weighted-average fair value at purchase date
$17.25
 
$12.54
 
$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 June 29, 2014 and changes during the six months ended June 29, 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
990

 
75.91

 
 
 
 
Exercised
(2,392
)
 
37.90

 
 
 
40,580

Forfeited
(104
)
 
48.28

 
 
 
 

Expired
(5
)
 
37.68

 
 
 
 

Options and SARs outstanding at June 29, 2014
5,082

 
48.67

 
4.6
 
274,748

Options and SARs vested and expected to vest after June 29, 2014, net of forfeitures
4,746

 
47.85

 
4.5
 
260,544

Options and SARs exercisable at June 29, 2014
1,849

 
35.62

 
3.2
 
124,068
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 29, 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
2,168

 
76.29

 
 

Vested
(1,259
)
 
46.13

 
97,486

Forfeited
(182
)
 
54.87

 
 

Non-vested share units at June 29, 2014
5,181

 
61.65

 
319,390
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 29,
2014
 
June 30,
2013
 
June 29,
2014
 
June 30,
2013
Share-based compensation expense by caption:
 
 
 
 
 
 
 
Cost of revenue
$
3,507

 
$
2,447

 
$
6,117

 
$
4,164

Research and development
17,500

 
12,704

 
33,175

 
24,344

Sales and marketing
7,204

 
4,701

 
13,461

 
8,572

General and administrative
6,238

 
4,809

 
11,726

 
9,315

Total share-based compensation expense
34,449

 
24,661

 
64,479

 
46,395

Total tax benefit recognized
(9,033
)
 
(6,222
)
 
(17,809
)
 
(13,138
)
Decrease in net income
$
25,416

 
$
18,439

 
$
46,670

 
$
33,257

 
 
 
 
 
 
 
 
Share-based compensation expense by type of award:
 
 
 
 
 
 
 
Stock options and SARs
$
7,971

 
$
8,054

 
$
15,895

 
$
16,323

RSUs
23,990

 
14,788

 
43,455

 
26,758

ESPP
2,488

 
1,819

 
5,129

 
3,314

Total share-based compensation expense
34,449

 
24,661

 
64,479

 
46,395

Total tax benefit recognized
(9,033
)
 
(6,222
)
 
(17,809
)
 
(13,138
)
Decrease in net income
$
25,416

 
$
18,439

 
$
46,670

 
$
33,257
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 29, 2014 and June 30, 2013 was as follows (in thousands):
 
Three months ended
 
Six months ended
 
June 29,
2014
 
June 30,
2013
 
June 29,
2014
 
June 30,
2013
Options
$
7,615

 
$
7,282

 
$
17,843

 
$
21,850

RSUs
8,225

 
6,082

 
58,090

 
35,903

Total grant date fair value of vested options and RSUs
$
15,840

 
$
13,364

 
$
75,933

 
$
57,753