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Stock-Based Compensation (Tables)
 6 Months Ended
Jun. 26, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Compensation Expense Included in the Consolidated Statements of Comprehensive Income
Stock-based compensation expense included in our consolidated statements of comprehensive income was as follows:
 
 
Three Months Ended
 
Six Months Ended
(In thousands)
 
June 26,
2015
 
June 27,
2014
 
June 26,
2015
 
June 27,
2014
 
 
 
 
 
 
 
 
 
Cost of sales
 
$
440

 
$
495

 
$
847

 
$
961

Research and development expense
 
9,670

 
10,877

 
18,613

 
21,150

Selling, general, and administrative expense
 
11,907

 
13,349

 
22,882

 
25,957

Pre-tax stock-based compensation expense
 
22,017

 
24,721

 
42,342

 
48,068

Less: income tax benefit
 
(6,115
)
 
(6,651
)
 
(11,736
)
 
(12,845
)
Net stock-based compensation expense
 
$
15,902

 
$
18,070

 
$
30,606

 
$
35,223
Schedule of Assumptions Used to Estimate Fair Value of Employee Stock Purchase Plan, Restricted Stock Units, Performance-Based Restricted Stock Units
The assumptions used to estimate the fair value of the RSU awards granted under our stock-based compensation plans were as follows:
 
 
Three Months Ended
 
Six Months Ended
 
 
June 26,
2015
 
June 27,
2014
 
June 26,
2015
 
June 27,
2014
ESPP Purchase Rights:
 
 
 
 
 
 
 
 
Expected term (in years)
 
0.8

 
1.0

 
0.8

 
1.0

Expected stock price volatility
 
41.8
%
 
25.5
%
 
41.8
%
 
25.5
%
Risk-free interest rate
 
0.1
%
 
0.1
%
 
0.1
%
 
0.1
%
Dividend yield
 
1.6
%
 
1.9
%
 
1.6
%
 
1.9
%
Weighted-average estimated fair value
 
$
12.90

 
$
7.68

 
$
12.90

 
$
7.68

 
 
 
 
 
 
 
 
 
RSUs:
 
 
 
 
 
 
 
 
Risk-free interest rate
 
0.8
%
 
0.7
%
 
0.8
%
 
0.7
%
Dividend yield
 
1.6
%
 
1.9
%
 
1.6
%
 
1.9
%
Weighted-average estimated fair value
 
$
43.24

 
$
31.01

 
$
42.63

 
$
30.97

 
 
 
 
 
 
 
 
 
PRSUs:
 
 
 
 
 
 
 
 
Expected Altera stock price volatility
 
30.0
%
 
32.2
%
 
30.0
%
 
32.2
%
Expected Philadelphia Semiconductor Index stock price volatility
 
19.7
%
 
24.3
%
 
19.7
%
 
24.3
%
Risk-free interest rate
 
1.0
%
 
0.9
%
 
1.0
%
 
0.9
%
Dividend yield
 
1.6
%
 
1.9
%
 
1.6
%
 
1.9
%
Weighted-average estimated fair value per share
 
$
58.02

 
$
31.18

 
$
58.02

 
$
31.18

 
 
 
 
 
 
 
 
 
Summary of Activity for Restricted Stock Units and Performance-Based Restricted Stock Units
A summary of activity for our RSUs and PRSUs for the six months ended June 26, 2015 and information regarding RSUs and PRSUs outstanding and expected to vest as of June 26, 2015 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, 2014
 
5,506

 
$
34.00

 
 
 
 
Grants
 
1,843

 
$
44.45

 
 
 
 
Vested
 
(1,353
)
 
$
34.18

 
 
 
 
Forfeited/Cancelled
 
(188
)
 
$
35.24

 
 
 
 
Outstanding, June 26, 2015
 
5,808

 
$
37.24

 
1.6
 
$
297,945

Vested and expected to vest, June 26, 2015
 
5,094

 
$
37.24

 
1.5
 
$
261,331

(1)
Aggregate intrinsic value represents the closing price per share of our stock on June 26, 2015, multiplied by the number of RSUs and market-based PRSUs outstanding or vested and expected to vest as of June 26, 2015.
Summary of Stock Option Activity
A summary of stock option activity for the six months ended June 26, 2015 and information regarding stock options outstanding, exercisable, and vested and expected to vest as of June 26, 2015 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, 2014
 
2,074

 
$
32.60

 
 
 
 
Grants
 
—

 
$
—

 
 
 
 
Exercises
 
(344
)
 
$
23.57

 
 
 
 
Forfeited/Cancelled/Expired
 
(19
)
 
$
30.46

 
 
 
 
Outstanding, June 26, 2015
 
1,711

 
$
34.45

 
5.2
 
$
28,838

Exercisable, June 26, 2015
 
1,403

 
$
34.10

 
4.9
 
$
24,129

Vested and expected to vest, June 26, 2015
 
1,696

 
$
34.45

 
5.2
 
$
28,583

(1)
For those stock options with an exercise price below the closing price per share on June 26, 2015, aggregate intrinsic value represents the difference between the exercise price and the closing price per share of our common stock on June 26, 2015, multiplied by the number of stock options outstanding, exercisable, or vested and expected to vest as of June 26, 2015.