Stock-Based Compensation

3 Months Ended

Apr. 02, 2022

Stock-Based Compensation

Stock-Based Compensation

10. Stock-Based Compensation

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 awards (RSUs), performance stock units (PSUs) and restricted stock awards (RSAs)) are estimated based on their intrinsic values. The fair values of market stock awards (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
	April 2,		April 3,
	2022		2021
Cost of revenues	$	272	$	236
Research and development		6,991		5,630
Selling, general and administrative		5,612		5,502
		12,875		11,368
Income tax benefit		1,845		682
Share-based compensation – continuing operations		11,030		10,686
Share-based compensation – discontinued operations, net		—		1,475
Total	$	11,030	$	12,161

The Company had approximately $87.3 million of total unrecognized compensation cost related to equity grants as of April 2, 2022 that is expected to be recognized over a weighted-average period of approximately 2.3 years. There were no significant stock-based compensation costs capitalized into assets in any of the periods presented.