Stock-Based Compensation (Tables)

12 Months Ended

Dec. 31, 2012

Stock-Based Compensation Expense

Stock-based compensation expense included in continuing operations, net of estimated forfeitures, related to the Company’s stock options, ESPP and RSU awards by expense category was as follows:

	Year Ended December 31,
	2012		2011		2010
	(In thousands)
Cost of revenues	$	11,946	$	6,921	$	7,044
Research and development		47,064		23,646		23,471
Selling, general and administrative		49,290		20,343		23,487
Total stock-based compensation expense	$	108,300	$	50,910	$	54,002

Summary of Changes in Stock Options Outstanding

The following table summarizes changes in stock options outstanding:

	Number of Shares			Weighted-Average Exercise Price per Share		Weighted-Average Remaining Contractual Term		Aggregate Intrinsic Value
	(In thousands)					(In years)		(In thousands)
Options outstanding at January 1, 2012		64,245		$	6.19
Assumed in SandForce acquisition		7,542		$	0.75
Granted		5,479		$	8.37
Exercised		(15,679	)	$	5.15
Canceled		(5,545	)	$	8.34
Options outstanding at December 31, 2012		56,042		$	5.75		3.67	$	102,589
Options exercisable at December 31, 2012		34,742		$	6.08		2.56	$	55,534

Summary of Unvested Service-Based Restricted Stock

The vesting of service-based RSUs requires that the employee remain employed by the Company for a specified period of time.

The following table summarizes changes in service-based RSUs outstanding:

	Number of Units			Weighted-Average Grant Date Fair Value per Share
	(In thousands)
Unvested service-based RSUs outstanding at January 1, 2012		12,085		$	5.94
Assumed in SandForce acquisition		1,576		$	6.17
Granted		8,579		$	8.11
Vested		(3,642	)	$	5.87
Forfeited		(943	)	$	6.60
Unvested service-based RSUs outstanding at December 31, 2012		17,655		$	6.99

Summary of Unvested Performance-Based Restricted Stock

The following table summarizes changes in performance-based RSUs outstanding:

	Number of Units			Weighted-Average Grant Date Fair Value per Share
	(In thousands)
Unvested performance-based RSUs outstanding at January 1, 2012		4,729		$	5.98
Granted		2,986		$	8.52
Vested		(1,446	)	$	5.85
Forfeited		(635	)	$	6.60
Unvested performance-based RSUs outstanding at December 31, 2012		5,634		$	7.29

Employee Stock Purchase Plan [Member]

Summary of Weighted Average Assumptions in Fair Value of Option Grant

The following table summarizes the weighted-average assumptions that the Company applied in the calculation of the fair value of ESPP grants:

	Year Ended December 31,
	2012			2011			2010
Estimated grant date fair value per share	$	1.94		$	1.81		$	1.49
Expected life (years)		0.8			0.8			0.8
Risk-free interest rate		0.2	%		0.1	%		0.2	%
Volatility		43	%		45	%		36	%

Employee Stock Option [Member]

Summary of Weighted Average Assumptions in Fair Value of Option Grant

The following table summarizes the weighted-average assumptions that the Company applied in the lattice model:

	Year Ended December 31,
	2012			2011			2010
Estimated grant date fair value per share	$	2.83		$	2.14		$	1.95
Expected life (years)		4.46			4.51			4.30
Risk-free interest rate		0.72	%		1.83	%		1.91	%
Volatility		47	%		47	%		51	%