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Equity and Share-Based Compensation (Tables)
 9 Months Ended
Sep. 28, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Dividends Declared
During the nine months ended September 28, 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
April 15, 2014
 
0.225

 
May 5, 2014
 
52.0

 
May 27, 2014
July 15, 2014
 
0.300

 
August 4, 2014
 
68.5

 
August 25, 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
 
Nine months ended
 
September 28,
2014
 
September 29,
2013
 
September 28,
2014
 
September 29,
2013
Dividend yield
1.14%
 
0% - 1.65%
 
1.14% - 1.25%
 
0% - 1.65%
Expected volatility
0.31
 
0.35
 
0.32
 
0.37
Risk-free interest rate
1.30%
 
1.21%
 
1.27%
 
0.73%
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
$21.76
 
$14.66
 
$18.84
 
$16.26
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
 
Nine months ended
 
September 28,
2014
 
September 29,
2013
 
September 28,
2014
 
September 29,
2013
Dividend yield
1.14%
 
1.65%
 
1.14% - 1.25%
 
0% - 1.65%
Expected volatility
0.33
 
0.35
 
0.31
 
0.34
Risk-free interest rate
0.05%
 
0.08%
 
0.07%
 
0.11%
Expected term
½ year
 
½ year
 
½ year
 
½ year
Weighted-average fair value at purchase date
$22.52
 
$13.72
 
$19.39
 
$13.08
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 September 28, 2014 and changes during the nine months ended September 28, 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
1,004

 
76.12

 
 
 
 
Exercised
(3,082
)
 
40.44

 
 
 
131,448

Forfeited
(219
)
 
53.69

 
 
 
 
Expired
(7
)
 
41.58

 
 
 
 
Options assumed through acquisition
427

 
68.49

 
 
 
 
Options and SARs outstanding at September 28, 2014
4,716

 
50.28

 
4.6
 
230,857

Options and SARs vested and expected to vest after September 28, 2014, net of forfeitures
4,427

 
49.51

 
4.5
 
220,110

Options and SARs exercisable at September 28, 2014
1,699

 
37.01

 
3.2
 
105,668
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 nine months ended September 28, 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
2,783

 
80.55

 
 

Vested
(1,499
)
 
50.25

 
120,673

Forfeited
(402
)
 
30.55

 
 

Assumed through acquisition
445

 
94.35

 
 
Non-vested share units at September 28, 2014
5,781

 
66.92

 
382,289
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 28,
2014
 
September 29,
2013
 
September 28,
2014
 
September 29,
2013
Share‑based compensation expense by caption:
 
 
 
 
 
 
 
Cost of revenue
$
4,001

 
$
2,716

 
$
10,118

 
$
6,880

Research and development
21,469

 
13,142

 
54,644

 
37,486

Sales and marketing
13,800

 
5,241

 
27,261

 
13,813

General and administrative
10,925

 
4,831

 
22,651

 
14,146

Total share‑based compensation expense
50,195

 
25,930

 
114,674

 
72,325

Total tax benefit recognized
(14,122
)
 
(7,227
)
 
(31,931
)
 
(20,365
)
Decrease in net income
$
36,073

 
$
18,703

 
$
82,743

 
$
51,960

 
 
 
 
 
 
 
 
Share‑based compensation expense by type of award:
 
 
 
 
 
 
 
Stock options and SARs
$
11,158

 
$
8,035

 
$
27,053

 
$
24,358

RSUs
35,540

 
15,900

 
78,995

 
42,658

ESPP
3,497

 
1,995

 
8,626

 
5,309

Total share‑based compensation expense
50,195

 
25,930

 
114,674

 
72,325

Total tax benefit recognized
(14,122
)
 
(7,227
)
 
(31,931
)
 
(20,365
)
Decrease in net income
$
36,073

 
$
18,703

 
$
82,743

 
$
51,960
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 28, 2014 and September 29, 2013 was as follows (in thousands):
 
Three months ended
 
Nine months ended
 
September 28,
2014
 
September 29,
2013
 
September 28,
2014
 
September 29,
2013
Options
$
11,364

 
$
7,018

 
$
29,207

 
$
28,868

RSUs
17,218

 
2,206

 
75,308

 
38,109

Total grant date fair value of vested options and RSUs
$
28,582

 
$
9,224

 
$
104,515

 
$
66,977