Share-Based Compensation

6 Months Ended

Jul. 04, 2015

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

The number and weighted-average exercise price of options issued and outstanding under all of the Company’s stock option plans are as follows (in thousands, except for exercise prices):



	Six Months Ended July 4, 2015
	Shares		Average Exercise Price
Options outstanding, beginning of period	9,956		$	23.59
Granted	726		$	34.80
Canceled	(138	)	$	24.12
Exercised	(786	)	$	19.34
Options outstanding, end of period	9,758		$	24.75
Options exercisable, end of period	5,786		$	24.39
Options available for grant, end of period	5,185

The Black-Scholes option pricing model is used to estimate the fair value of options granted under the Company’s share-based compensation plans. The range of assumptions used and the resulting weighted-average fair value of options granted at the date of grant were as follows:



	Three Months Ended		Six Months Ended
	July 4, 2015	June 28, 2014	July 4, 2015	June 28, 2014
Risk-free interest rate	1.4% to 1.9%	1.5% to 1.8%	1.3% to 1.9%	1.4% to 1.8%
Expected term (in years)	5.5	5.1	5.5	5.1
Estimated volatility	32.0% to 34.0%	32.2% to 33.1%	32.0% to 37.4%	31.8% to 33.1%
Expected dividends	0%	0%	0%	0%
Weighted-average fair value of options granted	$12.45	$7.6	$11.64	$8.65

The total share-based compensation expense for the three and six months ended July 4, 2015 was $2.5 million and $5.4 million, respectively. The total share-based compensation expense for the three and six months ended June 28, 2014 was $2.6 million and $5.2 million, respectively.

The aggregate intrinsic value of options is calculated as the positive difference, if any, between the market value of the Company’s common stock on the date of exercise or the respective period end, as appropriate, and the exercise price of the options. The aggregate intrinsic value of options outstanding, with an exercise price less than the closing price of the Company’s common stock, as of July 4, 2015 was $53.7 million. The aggregate intrinsic value of options exercisable, with an exercise price less than the closing price of the Company’s common stock, as of July 4, 2015 was $23.7 million. The aggregate intrinsic value of options exercised during the three and six months ended July 4, 2015 was $8.3 million and $11.6 million, respectively.

The unrecognized share-based compensation expense related to unvested options granted after January 1, 2006 was $25.4 million as of July 4, 2015. The weighted-average remaining contractual term of options outstanding, with an exercise price less than the closing price of the Company’s common stock, as of July 4, 2015 was 5.8 years. The weighted-average remaining contractual term of options exercisable, with an exercise price less than the closing price of the Company’s common stock, as of July 4, 2015 was 4.2 years.