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Stock-Based Compensation (Tables)
 9 Months Ended
Jul. 02, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of weighted-average assumptions used to estimate fair value of stock options granted and shares purchased
The fair values of shares purchased under the Employee Stock Purchase Plan (“ESPP”) for the three and nine months ended July 2, 2016 and July 4, 2015, respectively, were estimated using the following weighted-average assumptions:
 
 
Employee Stock Purchase Plan
 
 
 
Three Months Ended
 
Nine Months Ended
 
 
 
July 2,
2016
 
July 4,
2015
 
July 2,
2016
 
July 4,
2015
 
Expected life in years
 
0.5

 
0.5

 
0.5

 
0.5

 
Expected volatility
 
38.5
%
 
30.8
%
 
31.6
%
 
26.8
%
 
Risk-free interest rate
 
0.37
%
 
0.06
%
 
0.28
%
 
0.06
%
 
Expected dividend yield
 
—
%
 
—
%
 
—
%
 
—
%
 
Weighted average fair value per share
 
$
21.35

 
$
14.58

 
$
16.08

 
$
14.27

 
Schedule of weighted average assumptions of performance units
We grant performance restricted stock units to officers and certain employees. The performance restricted stock unit agreements provide for the award of performance restricted stock units with each unit representing the right to receive one share of our common stock to be issued after the applicable award vesting period. The final number of units awarded, if any, for these performance grants will be determined as of the vesting dates, based upon our total shareholder return over the performance period compared to the Russell 2000 Index and could range from no units to a maximum of twice the initial award units. The weighted average fair value for these performance units was determined using a Monte Carlo simulation model incorporating the following weighted average assumptions:
 
 
Nine Months Ended
 
 
July 2, 2016
 
July 4, 2015
Risk-free interest rate
 
1.20
%
 
0.96
%
Volatility
 
27.0
%
 
28.7
%
Weighted average fair value
 
$74.48
 
$70.57

We recognize the estimated cost of these awards, as determined under the simulation model, over the related service period, with no adjustment in future periods based upon the actual shareholder return over the performance period.
 
Schedule of stock-based compensation expense
The following table shows total stock-based compensation expense and related tax benefits included in the condensed consolidated statements of operations for the three and nine months ended July 2, 2016 and July 4, 2015 (in thousands):
 
Three Months Ended
 
Nine Months Ended
 
 
July 2, 2016
 
July 4, 2015
 
July 2, 2016
 
July 4, 2015
 
Cost of sales
$
677

 
$
664

 
$
1,876

 
$
1,937

 
Research and development
610

 
529

 
1,646

 
1,415

 
Selling, general and administrative
4,402

 
3,372

 
11,299

 
10,385

 
Income tax benefit
(1,588
)
 
(1,272
)
 
(3,450
)
 
(3,005
)
 
 
$
4,101

 
$
3,293

 
$
11,371

 
$
10,732

 

During the three and nine months ended July 2, 2016, $0.7 million and $2.0 million was capitalized into inventory for all stock plans, $0.7 million and $1.9 million was amortized to cost of sales and $0.8 million remained in inventory at July 2, 2016. During the three and nine months ended July 4, 2015, $0.6 million and $1.9 million was capitalized into inventory for all stock plans, $0.7 million and $1.9 million was amortized to cost of sales and $0.7 million remained in inventory at July 4, 2015. 
Schedule of restricted stock award and restricted stock unit activity
The following table summarizes the activity of our time-based and performance restricted stock units for the first nine months of fiscal 2016 (in thousands, except per share amounts):

 
Time Based Restricted Stock Units
 
Performance Restricted Stock Units
 
Number of
Shares
 
Weighted
Average
Grant Date
Fair Value
 
Number of
Shares
 
Weighted
Average
Grant Date
Fair Value
Nonvested stock at October 3, 2015
394

 
$
65.17

 
199

 
$
67.09

Granted
269

 
64.42

 
65

 
74.48

Vested(1)
(191
)
 
61.12

 
(57
)
 
48.48

Forfeited
(12
)
 
63.82

 
(38
)
 
48.48

Nonvested stock at July 2, 2016
460

 
$
66.45

 
169

 
$
74.10


__________________________________________
(1)Service-based restricted stock vested during each fiscal year. Performance-based awards and units included at 100% of target goal; under the terms of the awards, the recipient may earn between 0% and 200% of the award.