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Stock Plans
 9 Months Ended
Oct. 03, 2021
Share-based Payment Arrangement [Abstract]  
Stock Plans Stock Plans
The following table summarizes total pre-tax compensation expense recognized related to the Company’s stock option grants, restricted stock awards, performance restricted stock units, performance units and stock awards, included in the Company’s condensed consolidated statements of operations for the three and nine months ended October 3, 2021 and October 4, 2020:
 Three Months Ended
 October 3,
2021		October 4,
2020
 (In thousands)
Cost of revenue$692 $253 
Research and development expenses366 316 
Selling, general and administrative expenses6,146 9,034 
Total stock-based compensation expense$7,204 $9,603 
The total income tax benefit recognized in the condensed consolidated statements of operations for stock-based compensation was $4.1 million and $2.2 million for the three and nine months ended October 3, 2021 and October 4, 2020, respectively. Stock-based compensation costs capitalized as part of inventory were $0.5 million and $0.3 million as of October 3, 2021 and October 4, 2020, respectively.
Stock Options: The fair value of each option grant is estimated using the Black-Scholes option pricing model. The Company’s weighted-average assumptions used in the Black-Scholes option pricing model were as follows:
 Three and Nine Months Ended
 October 3,
2021		October 4,
2020
Risk-free interest rate0.6 %0.9 %
Expected dividend yield0.2 %0.3 %
Expected term5 years5 years
Expected stock volatility27.3 %23.8 %
The following table summarizes stock option activity for the nine months ended October 3, 2021:
Number
of
Shares		Weighted-
Average Exercise
Price		Weighted-Average
Remaining
Contractual 
Term		Total
Intrinsic
Value
 (In thousands) (In years)(In millions)
Outstanding at January 3, 2021961 $74.40 
Granted162 134.53 
Exercised(96)53.98 
Forfeited(7)88.54 
Outstanding at October 3, 20211,020 $85.78 4.3$46.2 
Exercisable at October 3, 2021640 $72.63 3.2$36.7 
The weighted-average per-share grant-date fair value of options granted during the nine months ended October 3, 2021 and October 4, 2020 was $65.80 and $18.98. The total intrinsic value of options exercised during the three and nine months ended October 3, 2021 and October 4, 2020 was $9.5 million and $7.8 million, respectively. Cash received from option exercises for the nine months ended October 3, 2021 and October 4, 2020 was $5.0 million and $1.1 million, respectively.
The total compensation expense recognized related to the Company’s outstanding options was $0.9 million and $0.8 million for the three and nine months ended October 3, 2021 and October 4, 2020, respectively.
There was $8.9 million of total unrecognized compensation cost related to nonvested stock options granted as of October 3, 2021. This cost is expected to be recognized over a weighted-average period of 2.3 years.
Restricted Stock Awards: The following table summarizes restricted stock award activity for the nine months ended October 3, 2021:
Number of
Shares		Weighted-
Average
Grant-
Date Fair
Value
 (In thousands) 
Nonvested at January 3, 2021296 $85.67 
Granted102 129.27 
Vested(102)83.16 
Forfeited(5)86.90 
Nonvested at October 3, 2021291 $101.83 
The fair value of restricted stock awards vested during the three and nine months ended October 3, 2021 and October 4, 2020 was $8.5 million and $1.4 million, respectively. The total compensation expense recognized related to the Company’s outstanding restricted stock awards was $2.8 million and $2.7 million for the three and nine months ended October 3, 2021 and October 4, 2020, respectively.
As of October 3, 2021, there was $23.4 million of total unrecognized compensation cost related to nonvested restricted stock awards. This cost is expected to be recognized over a weighted-average period of 1.8 years.
Performance Restricted Stock Units: As part of the Company's executive compensation program, the Company granted 77,373 performance restricted stock units during the nine months ended October 3, 2021 that will vest based on performance of the Company. The weighted-average per-share grant date fair value of performance restricted stock units granted during the nine months ended October 3, 2021 was $113.44. During the nine months ended October 3, 2021, no performance restricted stock units were forfeited. The total compensation expense recognized related to performance restricted stock units was $1.4 million and $2.0 million for the three and nine months ended October 3, 2021 and October 4, 2020, respectively. As of October 3, 2021, there were 128,386 performance restricted stock units outstanding.
Performance Units: No performance units were granted during the nine months ended October 3, 2021. During the nine months ended October 3, 2021, no performance units were forfeited. The total compensation expense (income) recognized related to performance units was $0.1 million and $3.3 million for the three and nine months ended October 3, 2021 and October 4, 2020, respectively. As of October 3, 2021, there were no performance units outstanding.
Stock Awards: The Company’s stock award program provides an annual equity award to non-employee directors. During the nine months ended October 3, 2021, the Company awarded no shares to non-employee directors. The total compensation expense recognized related to the stock awards were minimal for the nine months ended October 4, 2020.
Employee Stock Purchase Plan: During the nine months ended October 3, 2021, the Company issued 58 shares of common stock under the Company's Employee Stock Purchase Plan at a weighted-average price of $136.33 per share. During the nine months ended October 4, 2020, the Company issued 13,612 shares of common stock under the Company's Employee Stock Purchase Plan at a weighted-average price of $92.25 per share. At October 3, 2021, an aggregate of 0.8 million shares of the Company’s common stock remained available for sale to employees out of the 5.0 million shares authorized by shareholders for issuance under this plan.