Equity-Based Compensation (Tables)

12 Months Ended

Dec. 28, 2012

Assumptions used to Calculate Weighted Average Fair Value of Stock Option Grants

The following table summarizes the assumptions used to compute the weighted average fair value of stock option grants:

	2012			2011			2010
Expected volatility		43.3	%		46.5	%		42.0	%
Risk-free interest rate		0.9	%		2.0	%		2.1	%
Expected term (in years)		5.3			5.3			5.3
Expected dividend yield		2.0	%		1.5	%		1.0	%

Stock Option Activity

The following is a summary of stock option activity during 2012, and status at December 28, 2012:

	Shares			Weighted Average Exercise Price		Weighted Average Remaining Contractual Term (in years)		Aggregate Intrinsic Value (in millions)
Outstanding – beginning of year		20,719,482		$	7.68
Granted		2,102,207		$	3.95
Exercised		(150,593	)	$	0.63
Forfeited/expired		(5,957,941	)	$	7.05
Outstanding – end of year		16,713,155		$	7.50		3.6	$	—
Exercisable – end of year		14,282,666		$	7.96		2.7	$	—
Options vested or expected to vest		16,566,555		$	7.53		3.6	$	—

Cash-Settled Stock Appreciation Rights Activity

The following is a summary of cash-settled SARs activity in 2012:

	Shares			Weighted Average Exercise Price
Outstanding – beginning of year		492,131		$	6.81
Granted		16,200		$	3.98
Forfeited/expired		(52,136	)	$	7.15
Outstanding – end of year		456,195		$	6.67

Restricted Stock Unit Activity

Restricted stock activity for 2012 follows:

	Shares			Weighted Average Grant Date Fair Value
Non-vested – beginning of year		4,854,587		$	6.29
Granted		2,810,166		$	3.83
Vested		(2,432,556	)	$	6.07
Forfeited		(1,332,332	)	$	6.21
Non-vested – end of year		3,899,865		$	4.68

Performance Stock Unit Activity

PSU activity for 2012 follows:

	Shares			Weighted Average Grant Date Fair Value
Non-vested – beginning of year		2,269,410		$	5.51
Granted		1,963,478		$	3.98
Vested		(847,680	)	$	5.27
Forfeited		(1,751,342	)	$	4.94
Non-vested – end of year		1,633,866		$	4.40

Equity-Based Compensation Expense

The following table sets forth the total equity-based compensation expense resulting from stock options, SARs, restricted stock, and PSUs by line item on the income statement:

	2012			2011			2010
Cost of revenue – products	$	1.1		$	1.6		$	2.0
Cost of revenue – services		1.7			2.1			2.3
Research and development		5.5			7.9			8.4
Sales and marketing		2.9			4.3			5.2
General and administrative		8.6			8.7			9.1
Equity-based compensation expense before income taxes		19.8			24.6			27.0
Income tax benefit		(0.4	)		(2.8	)		(8.6	)
Total equity-based compensation expense after income taxes	$	19.4		$	21.8		$	18.4

Total Equity-Based Compensation Expense by Type

The following table sets forth the total equity-based compensation expense by type:

	2012			2011			2010
Stock options	$	4.1		$	4.8		$	5.1
Cash-settled SARs		(0.1	)		(0.3	)		0.2
Restricted stock		11.4			16.9			17.0
Performance stock units		4.4			3.2			4.7
Total	$	19.8		$	24.6		$	27.0