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Share-Based Compensation
 6 Months Ended
Jul. 04, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation and Equity
Share-Based Compensation

Stock Options

Options activity for the six months ended July 4, 2015 was as follows:
(In thousands, except per share data)
Number of
Shares
 
Weighted-
Average
Exercise 
Price
 
Aggregate
Intrinsic 
Value
 
Weighted-Average      
Remaining      
Contractual
 Term (Yrs)      
Outstanding at beginning of year
24,629

 
$
27.00

 
 
 
 
Granted
3,154

 
68.22

 
 
 
 
Exercised
(2,900
)
 
14.20

 
 
 
 
Forfeited and expired
(228
)
 
47.51

 
 
 
 
Outstanding as of July 4, 2015
24,655

 
33.59

 
$
862,290

 
6.30
 
 
 
 
 
 
 
 
Exercisable as of July 4, 2015
14,213

 
$
19.32

 
$
698,720

 
4.71

The weighted-average assumptions used to estimate the fair value, under the Black-Scholes-Merton pricing model, of stock options granted during the six months ended July 4, 2015 were as follows:
Expected volatility (%)
 
27.4
%
Expected term (yrs)
 
7

Risk-free rate (%)
 
1.8
%
Fair value per option
 
$
21.85


As of July 4, 2015, there was $170 million of total unrecognized compensation cost related to stock options granted under all plans. That cost is expected to be recognized over a weighted-average period of 3.58 years.
Non-vested Shares

Non-vested share activity for the six months ended July 4, 2015 was as follows:
(In thousands, except per share data)
Number of Shares
 
Weighted-Average
Grant Date Fair Value
 
 
 
 
Outstanding at beginning of year
506

 
$
46.21

Granted
293

 
69.21

Vested
(172
)
 
44.78

Forfeited
(55
)
 
42.72

 
 
 
 
Outstanding as of July 4, 2015
572

 
$
58.82


As of July 4, 2015, there was $23 million of total unrecognized compensation cost related to non-vested share awards granted under all plans. That cost is expected to be recognized over a weighted-average period of 1.89 years.

The following table presents total compensation expense recognized with respect to stock options, non-vested shares and our associate stock purchase plan:
 
Three Months Ended
 
Six Months Ended
(In thousands)
2015
 
2014
 
2015
 
2014
 
 
 
 
 
 
 
 
Stock option and non-vested share compensation expense
$
19,290

 
$
14,620

 
$
34,451

 
$
28,269

Associate stock purchase plan expense
1,365

 
1,094

 
2,753

 
2,377

Amounts capitalized in software development costs, net of amortization
(208
)
 
(510
)
 
(300
)
 
(674
)
 
 
 
 
 
 
 
 
Amounts charged against earnings, before income tax benefit
$
20,447

 
$
15,204

 
$
36,904

 
$
29,972

 
 
 
 
 
 
 
 
Amount of related income tax benefit recognized in earnings
$
6,664

 
$
5,336

 
$
12,197

 
$
10,520