Stock-Based Compensation (Tables)

3 Months Ended

Mar. 02, 2012

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

Assumptions Used to Value Option Grants

The assumptions used to value option grants during the three months ended March 2, 2012 and March 4, 2011 were as follows: 

	2012		2011
Expected life (in years)	3.9		3.8 - 4.1
Volatility	34	%	31 - 35%
Risk free interest rate	0.54	%	1.46 - 1.92%

Assumptions Used to Value Employee Stock Purchase Rights

The assumptions used to value employee stock purchase rights during the three months ended March 2, 2012 and March 4, 2011 were as follows:

	2012	2011
Expected life (in years)	0.5 - 2.0	0.5 - 2.0
Volatility	36%	32 - 34%
Risk free interest rate	0.06 - 0.27%	0.19 - 0.61%

Stock Option Activity

Option activity for the three months ended March 2, 2012 and the fiscal year ended December 2, 2011 was as follows (in thousands):

	2012		2011
Beginning outstanding balance	34,802		37,075
Granted	15		4,507
Exercised	(1,760	)	(4,987	)
Cancelled	(1,566	)	(2,268	)
Increase due to acquisition	1,103		475
Ending outstanding balance	32,594		34,802

Stock Options Outstanding

Information regarding stock options outstanding at March 2, 2012 and March 4, 2011 is summarized below:

	Number of Shares (thousands)	Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value(*) (millions)
2012
Options outstanding	32,594	$	30.97	3.14	$	148.4
Options vested and expected to vest	31,783	$	31.08	3.07	$	142.4
Options exercisable	25,490	$	32.61	2.39	$	85.2
2011
Options outstanding	38,529	$	31.18	3.80	$	203.1
Options vested and expected to vest	36,857	$	31.22	3.70	$	194.6
Options exercisable	26,948	$	31.92	2.95	$	133.1

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^(*)  The intrinsic value is calculated as the difference between the market value as of the end of the fiscal period and the exercise price of the shares. As reported by the NASDAQ Global Select Market, the market values as of March 2, 2012 and March 4, 2011 were $33.73 and $35.27, respectively.

Restricted Stock Unit Activity

Restricted stock unit activity for the three months ended March 2, 2012 and the fiscal year ended December 2, 2011 was as follows (in thousands):

	2012		2011
Beginning outstanding balance	16,871		13,890
Awarded	6,964		8,180
Released	(4,631	)	(3,819	)
Forfeited	(965	)	(1,587	)
Increase due to acquisition	111		207
Ending outstanding balance	18,350		16,871

Restricted Stock Units Outstanding

Information regarding restricted stock units outstanding at March 2, 2012 and March 4, 2011 is summarized below:

	Number of Shares (thousands)	Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value(*) (millions)
2012
Restricted stock units outstanding	18,350	1.90	$	618.9
Restricted stock units vested and expected to vest	15,432	1.79	$	519.6
2011
Restricted stock units outstanding	17,923	1.92	$	632.1
Restricted stock units vested and expected to vest	13,661	1.75	$	481.1

^{_________________________________________} 

^(*)  The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of March 2, 2012 and March 4, 2011 were $33.73 and $35.27, respectively. 

Performance Share Activity 2012 Program

The following table sets forth the summary of performance share activity under our 2012 Program for the three months ended March 2, 2012 (in thousands): 

	Shares Granted	Maximum Shares Eligible to Receive
Beginning outstanding balance	—	—
Awarded	1,125	1,688
Forfeited	—	—
Ending outstanding balance	1,125	1,688

Performance Share Activity Prior Years Programs

The following table sets forth the summary of performance share activity under our 2007, 2008, 2010 and 2011 programs, based upon share awards actually achieved, for the three months ended March 2, 2012 and the fiscal year ended December 2, 2011 (in thousands):

	2012		2011
Beginning outstanding balance	405		557
Achieved	492		337
Released	(442	)	(436	)
Forfeited	(2	)	(53	)
Ending outstanding balance	453		405

Performance Shares Outstanding

Information regarding performance shares outstanding at March 2, 2012 and March 4, 2011 is summarized below: 

	Number of Shares (thousands)	Weighted Average Remaining Contractual Life (years)	Aggregate Intrinsic Value(*) (millions)
2012
Performance shares outstanding	453	1.23	$	15.3
Performance shares vested and expected to vest	403	1.20	$	13.5
2011
Performance shares outstanding	469	1.11	$	16.6
Performance shares vested and expected to vest	401	1.08	$	13.9

^{_________________________________________} 

^(*)  The intrinsic value is calculated as the market value as of the end of the fiscal period. As reported by the NASDAQ Global Select Market, the market values as of March 2, 2012 and March 4, 2011 were $33.73 and $35.27, respectively

Total Stock-Based Compensation Costs

Total stock-based compensation costs that have been included in our Condensed Consolidated Statements of Income for the three months ended March 2, 2012 and March 4, 2011 were as follows (in thousands):

	2012				2011
Income Statement Classifications	Option Grants and Stock Purchase Rights		Restricted Stock and Performance Share Awards		Option Grants and Stock Purchase Rights		Restricted Stock and Performance Share Awards
Cost of revenue—subscription	$	742	$	603	$	192	$	321
Cost of revenue—services and support	1,116		2,070		1,095		2,075
Research and development	7,199		18,081		6,755		20,578
Sales and marketing	8,780		16,916		7,550		16,416
General and administrative	4,500		11,574		5,949		10,061
Total	$	22,337	$	49,244	$	21,541	$	49,451