Quarterly report pursuant to Section 13 or 15(d)

Stock-Based Incentive Compensation Plans (Notes)

v2.4.0.8
Stock-Based Incentive Compensation Plans (Notes)
 3 Months Ended
Mar. 29, 2014
Share-based Compensation [Abstract]  
Stock-Based Incentive Compensation Plans
Stock-Based Incentive Compensation Plans
The following table summarizes stock-based compensation expense related to employee stock options, restricted stock and restricted stock units, which is allocated within the Company’s condensed consolidated statements of operations as follows:
 
 
 
Quarter Ended
 
 
March 29,
2014
 
March 30,
2013
 
 
(In millions)
Cost of sales
 
$
1

 
$
2

Research and development
 
12

 
13

Marketing, general and administrative
 
10

 
9

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

 
$
24


For all periods presented, the Company did not realize any excess tax benefit related to stock-based compensation and therefore did not record any related financing cash flows.
Stock Options
The weighted average assumptions applied in the lattice-binomial model that the Company uses to estimate the fair value employee stock options are as follows:
 
 
 
Quarter Ended
 
 
March 29,
2014
 
March 30,
2013
Expected volatility
 
55.03
%
 
60.97
%
Risk-free interest rate
 
1.06
%
 
0.61
%
Expected dividends
 
0.00
%
 
0.00
%
Expected life
 
3.86 years

 
3.83 years


For the quarters ended March 29, 2014 and March 30, 2013, the Company granted 60,000 and 1,327,000, respectively, employee stock options with weighted average grant date fair values per share of $1.62 and $1.17, respectively.
Restricted Stock and Restricted Stock Units
For the quarters ended March 29, 2014 and March 30, 2013, the Company granted 480,000 and 2,447,000 restricted stock units, respectively, with weighted average grant date fair values per share of $3.80 and $2.69, respectively.