Stock-Based Compensation

3 Months Ended

Mar. 29, 2014

Stock-Based Compensation

Stock-Based Compensation

9. Stock-Based Compensation

In fiscal 2009, the stockholders of the Company approved the 2009 Stock Incentive Plan (the “2009 Plan”) and the 2009 Employee Stock Purchase Plan (the “2009 Purchase Plan”). The 2009 Plan is currently effective, and has a term of 10 years from the shareholders’ approval date. The 2009 Purchase Plan became effective on April 30, 2010.

Stock-based compensation costs are based on the fair values on the date of grant for stock options and on the date of enrollment for the employee stock purchase plans, estimated by using the Black-Scholes option-pricing model. The fair values of stock awards and restricted stock units (RSUs) equal their intrinsic value on the date of grant. The fair values of market stock units (MSUs) generally are estimated using a Monte Carlo simulation based on the date of grant.

The following table presents details of stock-based compensation costs recognized in the Condensed Consolidated Statements of Income (in thousands):

	Three Months Ended
	March 29,  2014		March 30,  2013
Cost of revenues	$	195	$	253
Research and development	4,241		3,339
Selling, general and administrative	4,841		2,668
	9,277		6,260
Income tax benefit	1,311		748
	$	7,966	$	5,512

The increase in stock-based compensation costs in the recent three month period was principally due to increased headcount. The Company had approximately $73.0 million of total unrecognized compensation costs related to granted stock awards as of March 29, 2014 that are expected to be recognized over a weighted-average period of 2.3 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented.