Share-based Compensation Expense

12 Months Ended

Dec. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Share-based Compensation Expense

Share-based Compensation Expense

Total share-based compensation expense for all stock awards consists of the following (in thousands):

	Years Ended
	December 30, 2012			January 1, 2012			January 2, 2011
Cost of product revenue	$	7,575		$	6,951		$	5,378
Cost of service and other revenue	461			695			470
Research and development	30,879			32,105			25,428
Selling, general and administrative	55,409			52,341			40,369
Share-based compensation expense before taxes	94,324			92,092			71,645
Related income tax benefits	(30,759		)	(32,168		)	(25,231		)
Share-based compensation expense, net of taxes	$	63,565		$	59,924		$	46,414

The assumptions used for the specified reporting periods and the resulting estimates of weighted-average fair value per share of options granted and for stock purchased under the ESPP during those periods are as follows:

	Years Ended
	December 30, 2012		January 1, 2012		January 2, 2011
Stock options granted:
Risk-free interest rate	0.56 - 0.93%		0.85 - 2.23%		2.05 - 2.73%
Expected volatility	41 - 48%		41 - 53%		46 - 48%
Expected term	4.0 - 6.6 years		4.7 - 5.5 years		6.0 years
Expected dividends	—		—		—
Weighted average fair value per share	$	15.47	$	27.47	$	18.82
Stock purchased under the ESPP:
Risk-free interest rate	0.09 - 0.17%		0.16 - 0.30%		0.17 - 0.48%
Expected volatility	33 - 64%		43 - 48%		46 - 48%
Expected term	0.5 - 1.0 year		0.5 - 1.0 year		0.5 - 1.0 year
Expected dividends	—		—		—
Weighted average fair value per share	$	16.45	$	20.08	$	11.10

As of December 30, 2012, approximately $177.8 million of total unrecognized compensation cost related to stock options, restricted stock units, and ESPP shares issued to date is expected to be recognized over a weighted-average period of approximately 2.3 years.