Share-based Compensation Expense

12 Months Ended

Dec. 29, 2013

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

Share-based Compensation Expense

Share-based Compensation Expense

Total share-based compensation expense for all stock awards consists of the following (in thousands):

	Years Ended
	December 29, 2013			December 30, 2012			January 1, 2012
Cost of product revenue	$	6,223		$	7,575		$	6,951
Cost of service and other revenue	777			461			695
Research and development	37,439			30,879			32,105
Selling, general and administrative	61,387			55,409			52,341
Share-based compensation expense before taxes	105,826			94,324			92,092
Related income tax benefits	(32,819		)	(30,759		)	(32,168		)
Share-based compensation expense, net of taxes	$	73,007		$	63,565		$	59,924

The assumptions used for the specified reporting periods and the resulting estimates of weighted-average fair value per share of options granted and for stock purchased under the ESPP during those periods are as follows:

	Years Ended
	December 29, 2013		December 30, 2012		January 1, 2012
Stock options granted:
Risk-free interest rate	0.14 - 1.86%		0.56 - 0.93%		0.85 - 2.23%
Expected volatility	30 - 44%		41 - 48%		41 - 53%
Expected term	0.8 - 9.4 years		4.0 - 6.6 years		4.7 - 5.5 years
Expected dividends	—		—		—
Weighted average fair value per share	$	40.66	$	15.47	$	27.47
Stock purchased under the ESPP:
Risk-free interest rate	0.08 - 0.15%		0.09 - 0.17%		0.16 - 0.30%
Expected volatility	31 - 32%		33 - 64%		43 - 48%
Expected term	0.5 - 1.0 year		0.5 - 1.0 year		0.5 - 1.0 year
Expected dividends	—		—		—
Weighted average fair value per share	$	19.30	$	16.45	$	20.08

As of December 29, 2013, approximately $216.9 million of total unrecognized compensation cost related to stock options, restricted stock, and ESPP shares issued to date is expected to be recognized over a weighted-average period of approximately 2.2 years.