XML 107 R27.htm IDEA: XBRL DOCUMENT v2.4.1.9
Equity and Share-Based Compensation (Tables)
 3 Months Ended
Mar. 29, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Dividends Declared
During the three months ended March 29, 2015, the Company’s Board of Directors declared the following dividend:
Declaration Date
 
Dividend per Share
 
Record Date
 
Total Amount Declared
 
Payment Date
 
 
 
 
 
 
(In millions)
 
 
January 20, 2015
 
$
0.30

 
March 2, 2015
 
$
65.9

 
March 23, 2015
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 was estimated using the following weighted-average assumptions:
 
Three months ended
 
March 29,
2015
 
March 30,
2014
Dividend yield
1.52%
 
1.25%
Expected volatility
0.32
 
0.32
Risk-free interest rate
1.18%
 
1.22%
Expected term
4.2 years
 
4.4 years
Estimated annual forfeiture rate
8.79%
 
8.51%
Weighted-average fair value at grant date
$19.56
 
$18.53
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
 
March 29,
2015
 
March 30,
2014
Dividend yield
1.52%
 
1.25%
Expected volatility
0.36
 
0.31
Risk-free interest rate
0.07%
 
0.08%
Expected term
½ year
 
½ year
Weighted-average fair value at purchase date
$20.20
 
$17.25
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 29, 2015 and changes during the three months ended March 29, 2015 are presented below:
 
Shares
 
Weighted-Average Exercise Price Per Share
 
Weighted-Average Remaining Contractual Term
 
Aggregate Intrinsic Value
 
(In thousands)
 
 
 
(Years)
 
(In thousands)
Options and SARs outstanding as of December 28, 2014
4,090

 

$51.94

 
4.5
 
$
202,044

Granted
936

 

$82.30

 
 
 
 
Exercised
(266
)
 

$41.25

 
 
 
$
163,623

Forfeited
(38
)
 

$62.41

 
 
 
 
Expired
(2
)
 

$27.02

 
 
 
 
Options and SARs outstanding as of March 29, 2015
4,720

 

$58.49

 
4.8
 
$
58,404

Options and SARs vested and expected to vest after March 29, 2015, net of forfeitures
4,384

 

$57.35

 
4.7
 
$
57,300

Options and SARs exercisable as of March 29, 2015
1,853

 

$44.26

 
3.4
 
$
40,054
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 29, 2015 is presented below:
 
Shares
 
Weighted-Average Grant Date Fair Value Per Share
 
Aggregate Intrinsic Value
 
(In thousands)
 
 
 
(In thousands)
Non-vested share units as of December 28, 2014
5,587

 

$67.18

 
$
375,366

Granted
2,043

 

$81.98

 
 
Vested
(1,332
)
 

$59.78

 
$
109,863

Forfeited
(124
)
 

$77.21

 
 

Non-vested share units as of March 29, 2015
6,174

 

$67.18

 
$
453,805
Share-based compensation expense
The following tables set forth the detailed allocation of the share-based compensation expense:
 
Three months ended
 
March 29,
2015
 
March 30,
2014
 
(In thousands)
Share‑based compensation expense by caption:
 
 
 
Cost of revenue
$
4,062

 
$
2,610

Research and development
21,043

 
15,675

Sales and marketing
9,535

 
6,257

General and administrative
6,770

 
5,488

Total share‑based compensation expense
41,410

 
30,030

Total tax benefit recognized
(11,069
)
 
(8,776
)
Decrease in net income
$
30,341

 
$
21,254

 
 
 
 
Share‑based compensation expense by type of award:
 
 
 
Stock options
$
8,028

 
$
7,924

RSUs
30,225

 
19,465

ESPP
3,157

 
2,641

Total share‑based compensation expense
41,410

 
30,030

Total tax benefit recognized
(11,069
)
 
(8,776
)
Decrease in net income
$
30,341

 
$
21,254
Fair value of options and RSUs
The total grant date fair value of options and RSUs vested during the period was as follows:
 
Three months ended
 
March 29,
2015
 
March 30,
2014
 
(In thousands)
Options
$
10,787

 
$
10,228

RSUs
79,628

 
49,866

Total grant date fair value of options and RSUs vested during the period
$
90,415

 
$
60,094