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Stock-Based Compensation
9 Months Ended
Sep. 30, 2017
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 the second quarter of fiscal 2017, the stockholders of the Company approved amendments to both the 2009 Plan and the 2009 Purchase Plan. These 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 RSUs, performance stock units (PSUs) and restricted stock awards (RSAs)) are estimated based on their intrinsic values. The fair values of 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

 

 

 

September 30,
2017

 

October 1,
2016

 

September 30,
2017

 

October 1,
2016

 

Cost of revenues

 

$

281

 

$

272

 

$

803

 

$

807

 

Research and development

 

5,411

 

4,580

 

16,161

 

14,695

 

Selling, general and administrative

 

5,663

 

4,343

 

16,043

 

14,555

 

 

 

11,355

 

9,195

 

33,007

 

30,057

 

Income tax benefit

 

2,674

 

2,124

 

11,131

 

6,630

 

 

 

$

8,681

 

$

7,071

 

$

21,876

 

$

23,427

 

 

The increases in income tax benefit in the three and nine months ended September 30, 2017 were primarily due to the recognition of excess tax benefits in connection with the Company’s adoption of ASU 2016-09. The Company had approximately $71.6 million of total unrecognized compensation costs related to granted stock options and awards as of September 30, 2017 that are expected to be recognized over a weighted-average period of approximately 2.1 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented.