Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Incentive Compensation Plans (Tables)

v3.5.0.2
Stock-Based Incentive Compensation Plans (Tables)
 9 Months Ended
Sep. 24, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Stock-based Compensation Expense, Allocation of Recognized Period Costs
The following table summarizes stock-based compensation expense related to employee stock options and restricted stock units, which is allocated within the Company’s condensed consolidated statements of operations as follows:
 
Three Months Ended
Nine Months Ended
 
September 24,
2016
 
September 26,
2015
 
September 24,
2016
 
September 26,
2015
 
(In millions)
Cost of sales
$
—

 
$
—

 
$
1

 
$
2

Research and development
15

 
7

 
34

 
27

Marketing, general and administrative
8

 
6

 
22

 
18

Stock-based compensation expense, net of tax of $0
$
23

 
$
13

 
$
57

 
$
47

Weighted Average Valuation Assumptions for Stock Options
The weighted average assumptions applied in the lattice-binomial model that the Company uses to estimate the fair value of employee stock options are as follows:
 
 
Three Months Ended
 
Nine Months Ended
 
September 24,
2016
 
September 26,
2015
 
September 24,
2016
 
September 26,
2015
Expected volatility
59.85
%
 
71.71
%
 
59.85
%
 
60.19
%
Risk-free interest rate
1.00
%
 
1.32
%
 
1.00
%
 
1.24
%
Expected dividends
0.00
%
 
0.00
%
 
0.00
%
 
0.00
%
Expected life
3.98 years

 
3.91 years

 
3.98 years

 
3.91 years