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Stock-Based Compensation
 3 Months Ended
Apr. 01, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Share-Based Compensation
Stock-Based Compensation
Stock-Based Award Activity
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):
 
Three Months Ended 
 April 1, 2017
 
Shares
 
Average
Exercise Price
Options outstanding, beginning of period
8,521

 
$
28.56

Granted
53

 
80.03

Canceled
(47
)
 
31.11

Exercised
(955
)
 
26.09

Options outstanding, end of period
7,572

 
$
29.22

Options exercisable, end of period
4,615

 
$
26.83


The number of RSUs issued and outstanding under all of the Company’s stock option plans are as follows (in thousands, except for grant date fair value amounts):
 
Three Months Ended 
 April 1, 2017
 
Units
 
Weighted Average Grant
 Date Fair Value
RSUs outstanding, beginning of period
2,706

 
$
41.45

Granted
—

 
—

Canceled
—

 
—

Expired
—

 
—

Vested
—

 
—

RSUs outstanding, end of period
2,706

 
$
41.45


At April 1, 2017, an aggregate of 16.1 million shares of common stock were reserved for future issuance under the Company’s 2007 Stock Incentive Plan (the 2007 Plan) and prior equity incentive plans, of which 5.8 million shares were available for future grant under the 2007 Plan.
Valuation of Stock-Based Award Activity
The fair value of each RSU award is determined based on the closing price of the Company’s common stock on the grant date.
The Black-Scholes option pricing model is used to estimate the fair value of options granted under the Company’s stock-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
 
 
April 1,
2017
 
April 2,
2016
Risk-free interest rate
 
1.9% to 2.2%
 
1.3% to 1.9%
Expected term (in years)
 
5.5
 
5.7
Estimated volatility
 
29.7% to 30.1%
 
34.6% to 35.7%
Expected dividends
 
0%
 
0%
Weighted-average fair value of options granted
 
$25.25
 
$13.13

The total stock-based compensation expense for the three months ended April 1, 2017 and April 2, 2016 was $2.9 million and $3.0 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 April 1, 2017 was $484.9 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 April 1, 2017 was $306.6 million. The aggregate intrinsic value of options exercised during the three months ended April 1, 2017 was $54.6 million The unrecognized stock-based compensation expense related to unvested options and RSUs was $25.1 million and less than $0.1 million as of April 1, 2017, respectively. The weighted-average remaining contractual term of options with an exercise price less than the closing price of the Company’s common stock as of April 1, 2017 and RSUs outstanding was 5.7 years and less than 0.5 year, respectively. 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 April 1, 2017 was 4.2 years.