Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2022

Stock-Based Compensation

Schedule of stock-based compensation costs recognized in the Condensed Consolidated Statements of Income

The following table presents details of stock-based compensation costs recognized in the Consolidated Statements of Income (in thousands):

	Year Ended
	December 31,		January 1,		January 2,
	2022		2022		2021
Cost of revenues	$	1,152	$	964	$	970
Research and development		32,860		24,986		23,359
Selling, general and administrative		26,498		30,892		25,125
		60,510		56,842		49,454
Income tax benefit		(5,980)		(954)		(3,694)
Share-based compensation – continuing operations		54,530		55,888		45,760
Share-based compensation – discontinued operations, net		—		(2,007)		10,715
Total	$	54,530	$	53,881	$	56,475

Summary of assumptions used to estimate fair values for ESPP

The fair values estimated from the Black-Scholes option-pricing model for ESPP shares granted were calculated using the following assumptions:

	Year Ended
	December 31,		January 1,		January 2,
Employee Stock Purchase Plan	2022		2022		2021
Expected volatility	44	%	42	%	67	%
Risk-free interest rate %	3.18	%	0.05	%	0.15	%
Expected term (in months)	9		9		9
Dividend yield	—		—		—

Summary of assumptions used to estimate fair values for MSUs

The fair values estimated from the Monte Carlo simulation for MSUs were calculated using the following assumptions:

	Year Ended
	January 2,
MSUs	2021
Expected volatility	36	%
Risk-free interest rate %	1.3	%
Expected term (in years)	2.9
Dividend yield	—

Summary of stock-based compensation activity, options

A summary of stock-based compensation activity with respect to fiscal 2022 follows:

		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Exercise		Contractual Term	Value
Stock Options	(000s)	Price		(In Years)	(000s)
Outstanding at January 1, 2022	118	$	38.80	4.12	$	19,825
Outstanding at December 31, 2022	118	$	38.80	3.12	$	11,457
Vested at December 31, 2022 and expected to vest	118	$	38.80	3.12	$	11,457
Exercisable at December 31, 2022	118	$	38.80	3.12	$	11,457

Summary of stock-based compensation activity, RSAs and RSUs

		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Grant Date		Vesting Term	Value
RSAs and RSUs	(000s)	Fair Value		(In Years)	(000s)
Outstanding at January 1, 2022	831	$	117.25
Granted	487	$	144.40
Vested or issued	(378)	$	110.12
Cancelled or forfeited	(43)	$	134.92
Outstanding at December 31, 2022	897	$	134.74	1.18	$	121,668
Outstanding at December 31, 2022 and expected to vest	825	$	134.22	1.18	$	111,979

Summary of stock-based compensation activity, PSUs and MSUs

		Weighted-		Weighted-Average	Aggregate
		Average		Remaining	Intrinsic
	Shares	Grant Date		Vesting Term	Value
PSUs and MSUs	(000s)	Fair Value		(In Years)	(000s)
Outstanding at January 1, 2022	246	$	105.77
Granted	52	$	160.97
Vested or issued	—	$	—
Cancelled or forfeited	(73)	$	54.77
Outstanding at December 31, 2022	225	$	134.93	1.27	$	30,599
Outstanding at December 31, 2022 and expected to vest	329	$	138.15	1.27	$	44,604

Summary of weighted average fair value at the date of grant

The following summarizes the Company’s weighted average fair value at the date of grant:

	Year Ended
	December 31,		January 1,		January 2,
	2022		2022		2021
Per grant of RSAs and RSUs	$	144.40	$	135.28	$	100.27
Per grant of PSUs and MSUs	$	160.97	$	145.11	$	98.58

Summary of stock-based payment and stock option values

The following summarizes the Company’s stock-based payment and stock option values (in thousands):

	Year Ended
	December 31,		January 1,		January 2,
	2022		2022		2021
Intrinsic value of stock options exercised	$	—	$	986	$	558
Intrinsic value of RSUs that vested	$	57,621	$	76,654	$	48,534
Grant date fair value of RSUs that vested	$	41,610	$	47,726	$	37,477
Intrinsic value of PSUs and MSUs that vested	$	—	$	5,231	$	8,545
Grant date fair value of PSUs and MSUs that vested	$	—	$	3,562	$	6,302

Summary of shares reserved of common stock for future issuance

As of December 31, 2022, the Company had reserved shares of common stock for future issuance as follows (in thousands):

2009 Plan	2,520
2009 ESPP	1,145
Total shares reserved	3,665