Stock-Based Compensation

6 Months Ended

Jun. 29, 2019

Stock-Based Compensation

12. 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 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.

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 Operations (in thousands):

	Three Months Ended				Six Months Ended
	June 29,		June 30,		June 29,		June 30,
	2019		2018		2019		2018
Cost of revenues	$	326	$	294	$	645	$	590
Research and development		6,459		5,669		12,556		11,438
Selling, general and administrative		6,884		6,156		13,052		12,283
		13,669		12,119		26,253		24,311
Income tax (expense) benefit		(2,186)		1,677		1,134		6,896
	$	15,855	$	10,442	$	25,119	$	17,415

The increase in income tax expense during the three months ended June 29, 2019 and the decrease in income tax benefit during the six months ended June 29, 2019 was primarily due to a change in our position related to the treatment of stock-based compensation within our intercompany cost-sharing arrangement. See Note 13, Income Taxes, to the Condensed Consolidated Financial Statements for additional information. The Company had approximately $89.1 million of total unrecognized compensation costs related to granted stock options and awards as of June 29, 2019 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.