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)
 6 Months Ended
Jun. 25, 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
Six Months Ended
 
June 25,
2016
 
June 27,
2015
 
June 25,
2016
 
June 27,
2015
 
(In millions)
Cost of sales
$
—

 
$
1

 
$
1

 
$
2

Research and development
10

 
10

 
19

 
20

Marketing, general and administrative
8

 
6

 
14

 
12

Stock-based compensation expense, net of tax of $0
$
18

 
$
17

 
$
34

 
$
34

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
 
Six Months Ended
 
June 25,
2016
 
June 27,
2015
 
June 25,
2016
 
June 27,
2015
Expected volatility
N/A
 
54.86
%
 
N/A
 
54.43
%
Risk-free interest rate
N/A
 
1.15
%
 
N/A
 
1.21
%
Expected dividends
N/A
 
0.00
%
 
N/A
 
0.00
%
Expected life
N/A
 
3.91 years

 
N/A
 
3.91 years