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Stock-Based Compensation Expense (Tables)
 6 Months Ended
Jul. 02, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Summary of Stock Option Activity
The following table summarizes the Company’s stock option activity for the six-month period ended July 2, 2017:
 
Shares
(in thousands)
 
Weighted-
Average
Exercise
Price
 
Weighted-
Average
Remaining
Contractual
Term (in years)
 
Aggregate
Intrinsic
Value
(in thousands)
Outstanding as of December 31, 2016
6,433

 
$
32.16

 
 
 
 
Granted
1,937

 
77.36

 
 
 
 
Exercised
(1,365
)
 
25.68

 
 
 
 
Forfeited or expired
(64
)
 
43.11

 
 
 
 
Outstanding as of July 2, 2017
6,941

 
$
45.95

 
7.91
 
$
270,790

Exercisable as of July 2, 2017
2,015

 
$
27.39

 
5.85
 
$
115,900

Options vested or expected to vest as of July 2, 2017 (1)
6,033

 
$
44.28

 
7.74
 
$
245,371

 (1) In addition to the vested options, the Company expects a portion of the unvested options to vest at some point in the future. Options expected to vest are calculated by applying an estimated forfeiture rate to the unvested options.
Weighted-Average Assumptions Used in Estimating Fair Values of Stock Options Granted
The fair values of stock options granted in each period presented were estimated using the following weighted-average assumptions:
 
Three-months Ended
 
Six-months Ended
 
July 2, 2017
 
July 3, 2016
 
July 2, 2017
 
July 3, 2016
Risk-free rate
2.4
%
 
1.7
%
 
2.4
%
 
1.7
%
Expected dividend yield
0.39
%
 
0.84
%
 
0.39
%
 
0.84
%
Expected volatility
41
%
 
41
%
 
41
%
 
41
%
Expected term (in years)
5.2

 
5.4

 
5.3

 
5.5
Nonvested Restricted Stock Shares Activity
The following table summarizes the Company's restricted stock activity for the six-month period ended July 2, 2017:
 
Shares (in thousands)
 
Weighted-Average Grant Fair Value
 
Aggregate Intrinsic Value (in thousands)(1)
Nonvested as of December 31, 2016
20

 
$
34.05

 
 
Granted
—

 
—

 
 
Vested
(10
)
 
34.05

 
825

Forfeited or expired
—

 
—

 
 
Nonvested as of July 2, 2017
10

 
$
34.05

 
$
849
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs
The following table presents the stock-based compensation expense by caption for each period presented on the Consolidated Statements of Operations (in thousands):
 
Three-months Ended
 
Six-months Ended
 
July 2, 2017
 
July 3, 2016
 
July 2, 2017
 
July 3, 2016
Cost of revenue
$
454

 
$
229

 
$
884

 
$
522

Research, development, and engineering
2,715

 
1,397

 
5,325

 
3,576

Selling, general, and administrative
4,677

 
2,831

 
9,120

 
7,163

 
$
7,846

 
$
4,457

 
$
15,329

 
$
11,261