Stock-Based Compensation (Tables)

3 Months Ended

Mar. 29, 2013

Schedule of Compensation Expense Included in the Consolidated Statements of Comprehensive Income

Our stock-based compensation expense included in the consolidated statements of comprehensive income was as follows:



	Three Months Ended
(In thousands)	March 29, 2013			March 30, 2012

Cost of sales	$	445		$	448
Research and development expense	9,786			9,853
Selling, general, and administrative expense	12,011			12,092
Pre-tax stock-based compensation expense	22,242			22,393
Less: income tax benefit	(5,678		)	(5,704		)
Net stock-based compensation expense	$	16,564		$	16,689

Schedule of Assumptions Used to Estimate Fair Value of ESPP, RSUs and PRSUs

The assumptions used to estimate the fair value of RSUs and PRSUs were as follows:



	Three Months Ended
	March 29, 2013			March 30, 2012

RSUs and PRSUs:
Risk-free interest rate	0.4		%	0.3		%
Dividend yield	1.2		%	0.8		%
Weighted-average estimated fair value	$	32.52		$	38.96

In addition, we apply an expected forfeiture rate when amortizing stock-based compensation expense.

Summary of Activity for Restricted Stock Units and Performance Based Restricted Stock Units

A summary of activity for our RSUs and PRSUs for the three months ended March 29, 2013 and information regarding RSUs and PRSUs outstanding and expected to vest as of March 29, 2013 is as follows:



(In thousands, except per share amounts and terms)	Number of Shares		Weighted-Average Grant-Date Fair Market Value Per Share		Weighted-Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value ⁽¹⁾
Outstanding, December 31, 2012	6,960		$	34.03
Grants	171		$	33.51
Vested	(237	)	$	36.41
Forfeited	(69	)	$	35.09
Outstanding, March 29, 2013	6,825		$	33.93	1.3	$	242,016
Vested and expected to vest, March 29, 2013	6,130		$	33.77	1.3	$	217,377


(1)	Aggregate intrinsic value represents the closing price per share of our stock on March 29, 2013, multiplied by the number of RSUs and PRSUs outstanding or vested and expected to vest as of March 29, 2013.

Summary of Stock Option Activity

A summary of stock option activity for the three months ended March 29, 2013 and information regarding stock options outstanding, exercisable, and vested and expected to vest as of March 29, 2013 is as follows:



(In thousands, except per share amounts and terms)	Number of Shares		Weighted-Average Exercise Price Per Share		Weighted-Average Remaining Contractual Term (in Years)	Aggregate Intrinsic Value ⁽¹⁾
Outstanding, December 31, 2012	5,163		$	25.81
Exercises	(429	)	$	19.70
Outstanding, March 29, 2013	4,734		$	26.37	4.1	$	48,678
Exercisable, March 29, 2013	3,482		$	22.67	2.5	$	46,588
Vested and expected to vest, March 29, 2013	4,587		$	26.03	3.9	$	48,481


(1)	For those stock options with an exercise price below the closing price per share on March 29, 2013, aggregate intrinsic value represents the difference between the exercise price and the closing price per share of our common stock on March 29, 2013, multiplied by the number of stock options outstanding, exercisable, or vested and expected to vest as of March 29, 2013.