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Employee Stock Benefit Plans | 12 Months Ended
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Jan. 01, 2021
Share-based Payment Arrangement [Abstract] |
Employee Stock Benefit Plans | NOTE 13: EMPLOYEE STOCK BENEFIT PLANS Amended and Restated 2002 Stock Plan On November 20, 2020, our stockholders approved an amendment to the 2002 Stock Plan to increase the number of shares of common stock available for issuance by 18.0 million shares. As such, our Amended and Restated 2002 Stock Plan provides for the granting of incentive and non-statutory stock options and RSUs for up to 92.6 million shares. At the end of fiscal 2020, the remaining number of shares available for grant under the 2002 stock plan was 21.1 million. Stock-Based Compensation Expense The following table summarizes the components of stock-based compensation expense recognized in our Consolidated Statements of Income for the periods indicated:
Fiscal Years | 2020 |  | 2019 |  | 2018
(In millions) |  |  |  |  |
Restricted stock units | $ | 73.2 |  |  | $ | 67.3 |  |  | $ | 68.9 |
Stock options | 1.5 |  |  | 0.6 |  |  | 1.5 |
ESPP | 8.3 |  |  | 7.1 |  |  | 6.5 |
Total stock-based compensation expense | $ | 83.0 |  |  | $ | 75.0 |  |  | $ | 76.9 |
Stock-based compensation expense was allocated as follows:
Fiscal Years | 2020 |  | 2019 |  | 2018
(In millions) |  |  |  |  |
Cost of sales | $ | 6.7 |  |  | $ | 5.6 |  |  | $ | 4.5 |
Research and development | 22.1 |  |  | 16.7 |  |  | 15.0 |
Sales and marketing | 16.2 |  |  | 13.0 |  |  | 10.0 |
General and administrative | 38.0 |  |  | 39.7 |  |  | 47.4 |
Total stock-based compensation expense | $ | 83.0 |  |  | $ | 75.0 |  |  | $ | 76.9 |
At the end of fiscal 2020, total unamortized stock-based compensation expense was $164.5 million, with a weighted-average recognition period of 2.4 years. Restricted Stock Units We grant RSUs containing only service conditions and RSUs containing a combination of service, performance, and/or market conditions (“PSUs”). RSUs containing only service conditions typically vest ratably over a three to four year service period. PSUs are granted to executive officers and other senior employees and vest after a two to three year service period. The fair value at the grant date is determined by (1) the closing pr ice of our common stock for awards containing only service or both service and performance conditions, or (2) the Monte Carlo valuation model for awards containing both service and market conditions. For PSUs granted prior to and during fiscal 2020, the number of shares received at vesting will range from 0% to 200% of the target grant amount based on either (1) market conditions, (2) performance conditions, or (3) both. Market conditions consider our relative total stockholder return (“TSR”) of our common stock as compared to the TSR of the constituents of either the S&P 500 or S&P 400 over the vesting period. Performance conditions consider the achievement of our financial results over the vesting period.
| 2020 Restricted Stock Units Outstanding
| Number of Units (1) |  | Weighted Average Grant-Date Fair Value per Share
(In millions, except for per share data) |  |  |
Outstanding at the beginning of year | 5.7 |  |  | $ | 39.62 |
Granted (2) | 1.9 |  |  | 42.50 |
Shares vested, net (2) | (1.8) |  |  | 38.94 |
Canceled and forfeited | (0.4) |  |  | 41.55 |
Outstanding at the end of year | 5.4 |  |  | $ | 44.25 |
(1) Includes 0.2 million PSUs granted, 0.5 million PSUs vested, and 1.3 million PSUs outstanding at the end of the year. (2) Excludes approximately 0.2 million PSUs related to achievement above target levels at the vesting date. The weighted-average grant date fair value of all RSUs granted during fiscal 2020, 2019, and 2018 was $42.50, $41.38, and $37.43 per share, respectively. The fair value of all RSUs vested during fiscal 2020, 2019, and 2018 was $78.0 million, $75.7 million, and $73.9 million, respectively. Stock options Employee stock options generally vest after three years, or after five years for certain executive awards, with expiration seven to ten years from the date of grant. The fair value at the grant date is determined by (1) the Black-Scholes valuation model for options with only service conditions, or (2) the Monte Carlo valuation model for certain executive options containing both service and market conditions. The following table summarizes information about stock options outstanding at the end of fiscal 2020:
| Number Of Shares (in millions) |  | Weighted- Average Exercise Price per Share |  | Weighted- Average Remaining Contractual Term (in years) |  | Aggregate Intrinsic Value (in millions)
Outstanding at the beginning of year | 1.1 |  |  | $ | 29.96 |  |  |  |  |
Options granted | 0.2 |  |  | 41.58 |  |  |  |  |
Options exercised | (0.7) |  |  | 29.01 |  |  |  |  |
Cancelled and forfeited | — |  |  | 28.08 |  |  |  |  |
Outstanding at the end of year | 0.6 |  |  | 35.42 |  |  | 5.1 |  | $ | 18.6 |
Options exercisable | 0.2 |  |  | $ | 27.88 |  |  | 1.2 |  | $ | 9.0 |
The total intrinsic value of options exercised during fiscal 2020, 2019, and 2018 was $11.5 million, $16.4 million, and $30.0 million, respectively. The weighted-average grant date fair value per share of stock options granted during fiscal 2020, 2019 and 2018 was $14.30, $12.92, and $10.62, respectively. The fair value of all stock options vested during fiscal 2020, 2019, and 2018 was $0.2 million, $0.2 million, and $1.9 million, respectively. Employee Stock Purchase Plan We have an ESPP under which the stockholders have approved an aggregate of 39.0 million shares of common stock for issuance to eligible employees. The fair value at the grant date is based on the Black-Scholes valuation model. The plan permits eligible employees to purchase common stock through payroll deductions at 85% of the lower of the fair market value of the common stock at the beginning or at the end of each offering period, which is six months. Rights to purchase shares are granted during the first and third quarter of each fiscal year. The ESPP terminates on March 15, 2027. In fiscal 2020, 2019, and 2018, 0.8 million shares were issued, in each fiscal year respectively, representing $26.9 million, $25.7 million, and $24.0 million in cash received for the issuance of stock under the ESPP. At the end of fiscal 2020, the number of shares reserved for future purchases was 6.6 million.

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