Share-based Compensation Expense (Tables)

12 Months Ended

Dec. 29, 2013

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

Share-based compensation expense for all stock awards

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

Assumptions used to estimate the fair value per share of options granted and employee stock purchase rights granted

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