Stock-Based Compensation

9 Months Ended

Oct. 01, 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 units (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				Nine Months Ended
	October 1,		October 2,		October 1,		October 2,
	2022		2021		2022		2021
Cost of revenues	$	288	$	261	$	834	$	696
Research and development		8,788		7,071		23,482		18,190
Selling, general and administrative		6,874		6,964		18,897		18,030
		15,950		14,296		43,213		36,916
Income tax (provision) benefit		1,230		(627)		4,444		632
Share-based compensation – continuing operations		14,720		14,923		38,769		36,284
Share-based compensation – discontinued operations, net		—		(4,115)		—		(1,006)
Total	$	14,720	$	10,808	$	38,769	$	35,278

The Company had approximately $123.4 million of total unrecognized compensation cost related to equity grants as of October 1, 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.