XML 57 R18.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stock Plans
3 Months Ended
Mar. 30, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock Plans
Stock Plans

In addition to the Company's Employee Stock Purchase Plan, the Company utilizes one stock-based compensation plan, the 2009 Incentive Plan (the “2009 Plan”). Under the 2009 Plan, 10.0 million shares of the Company's common stock are authorized for stock option grants, restricted stock awards, performance units and stock grants as part of the Company’s compensation programs. In addition to shares of the Company’s common stock originally authorized for issuance under the 2009 Plan, the 2009 Plan includes shares of the Company’s common stock previously granted under the Amended and Restated 2001 Incentive Plan and the 2005 Incentive Plan that were canceled or forfeited without the shares being issued.
The following table summarizes total pre-tax compensation expense recognized related to the Company’s stock options, restricted stock, restricted stock units, performance units and stock grants, net of estimated forfeitures, included in the Company’s condensed consolidated statements of operations for the three months ended March 30, 2014 and March 31, 2013:
 
Three Months Ended
 
March 30,
2014
 
March 31,
2013
 
(In thousands)
Cost of product and service revenue
$
333

 
$
313

Research and development expenses
141

 
216

Selling, general and administrative expenses
4,042

 
3,887

Total stock-based compensation expense
$
4,516

 
$
4,416


The total income tax benefit recognized in the condensed consolidated statements of operations for stock-based compensation was $1.6 million and $1.4 million for the three months ended March 30, 2014 and March 31, 2013, respectively. Stock-based compensation costs capitalized as part of inventory were $0.3 million as of both March 30, 2014 and March 31, 2013. The excess tax benefit recognized from stock compensation, classified as a financing cash activity, was zero for both the three months ended March 30, 2014 and March 31, 2013.
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 Months Ended
 
March 30,
2014
 
March 31,
2013
Risk-free interest rate
1.5
%
 
0.9
%
Expected dividend yield
0.7
%
 
0.8
%
Expected lives
5 years

 
5 years

Expected stock volatility
30.9
%
 
38.5
%

The following table summarizes stock option activity for the three months ended March 30, 2014:
 
Number
of
Shares
 
Weighted-
Average
Price
 
Weighted-Average
Remaining
Contractual Term
 
Total
Intrinsic
Value
 
(In thousands)
 
 
 
(In years)
 
(In millions)
Outstanding at December 29, 2013
3,494

 
$
23.34

 
 
 
 
Granted
446

 
43.08

 
 
 
 
Exercised
(310
)
 
23.30

 
 
 
 
Canceled
(4
)
 
20.97

 
 
 
 
Forfeited
(16
)
 
29.58

 
 
 
 
Outstanding at March 30, 2014
3,610

 
$
25.75

 
3.8
 
$
65.1

Exercisable at March 30, 2014
2,567

 
$
21.83

 
2.9
 
$
56.4

Vested and expected to vest in the future
3,565

 
$
25.66

 
3.8
 
$
64.6


The weighted-average per-share grant-date fair value of options granted was $11.85 and $10.90 for the three months ended March 30, 2014 and March 31, 2013, respectively. The total intrinsic value of options exercised was $6.5 million and $3.1 million for the three months ended March 30, 2014 and March 31, 2013, respectively. Cash received from option exercises was $7.2 million and $5.5 million for the three months ended March 30, 2014 and March 31, 2013, respectively.
The total compensation expense recognized related to the Company’s outstanding options was $1.5 million and $1.3 million for the three months ended March 30, 2014 and March 31, 2013, respectively.
There was $9.5 million of total unrecognized compensation cost, net of estimated forfeitures, related to nonvested stock options granted as of March 30, 2014. This cost is expected to be recognized over a weighted-average period of 2.2 years and will be adjusted for any future changes in estimated forfeitures.
Restricted Stock Awards: The following table summarizes restricted stock award activity for the three months ended March 30, 2014:
 
Number of
Shares
 
Weighted-
Average
Grant-
Date Fair
Value
 
(In thousands)
 
 
Nonvested at December 29, 2013
649

 
$
29.24

Granted
216

 
42.55

Vested
(246
)
 
27.70

Forfeited
(21
)
 
32.00

Nonvested at March 30, 2014
598

 
$
34.59


The weighted-average per-share grant-date fair value of restricted stock awards granted was $42.55 and $34.06 during the three months ended March 30, 2014 and March 31, 2013, respectively. The fair value of restricted stock awards vested was $6.8 million and $6.9 million for the three months ended March 30, 2014 and March 31, 2013, respectively. The total compensation expense recognized related to the Company’s outstanding restricted stock awards was $2.0 million and $2.1 million for the three months ended March 30, 2014 and March 31, 2013, respectively.
As of March 30, 2014, there was $15.7 million of total unrecognized compensation cost, net of forfeitures, related to nonvested restricted stock awards. That cost is expected to be recognized over a weighted-average period of 1.8 years.
Performance Units: The Company granted 79,463 and 98,056 performance units during the three months ended March 30, 2014 and March 31, 2013, respectively, as part of the Company’s executive incentive program. The weighted-average per-share grant-date fair value of performance units granted during the three months ended March 30, 2014 and March 31, 2013 was $42.84 and $34.06, respectively. The total compensation expense recognized related to these performance units was $1.0 million for both the three months ended March 30, 2014 and March 31, 2013. As of March 30, 2014, there were 271,679 performance units outstanding and subject to forfeiture, with a corresponding liability of $3.7 million recorded in accrued expenses and other current liabilities.
Stock Awards: The Company generally grants stock awards only to non-employee members of the Board. The Company did not grant any stock awards during either the three months ended March 30, 2014 or March 31, 2013.
Employee Stock Purchase Plan: During the three months ended March 30, 2014, the Company issued 31,854 shares of common stock under the Company's Employee Stock Purchase Plan at a weighted-average price of $39.17 per share. During the three months ended March 31, 2013, the Company issued 45,762 shares of common stock under the Company's Employee Stock Purchase Plan at a weighted-average price of $30.15 per share. At March 30, 2014, an aggregate of 1.1 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.