Stock-Based Compensation

9 Months Ended

Oct. 01, 2016

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”). In fiscal 2014, the stockholders of the Company approved amendments to both the 2009 Plan and the 2009 Purchase Plan. The amendments authorized additional shares of common stock for issuance, to comply with changes in applicable law, improve the Company’s corporate governance and to implement other best practices. The amended plans are currently effective.

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

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

	Three Months Ended				Nine Months Ended
	October 1,  2016		October 3, 2015		October 1,  2016		October 3, 2015
Cost of revenues	$	272	$	249	$	807	$	708
Research and development	4,580		4,623		14,695		14,378
Selling, general and administrative	4,343		4,350		14,555		15,712
	9,195		9,222		30,057		30,798
Income tax benefit	2,124		1,089		6,630		3,575
	$	7,071	$	8,133	$	23,427	$	27,223

The Company had approximately $59.4 million of total unrecognized compensation costs related to granted stock options and awards as of October 1, 2016 that are expected to be recognized over a weighted-average period of approximately 2.2 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented.