Stock-Based Compensation Plans

The Company's equity incentive plans are broad-based, long-term retention programs that cover employees, consultants and non-employee directors of the Company. These plans are intended to attract and retain talented employees, consultants and non-employee directors and to provide such persons with a proprietary interest in the Company.

Stock-Based Compensation

The following table summarizes stock-based compensation expense related to stock awards granted under the Company's equity incentive plans and rights to acquire stock granted under the Company's ESPP:



(In thousands)	April 2, 2016			March 28, 2015			March 29, 2014
Stock-based compensation included in:
Cost of revenues	$	7,977		$	8,101		$	7,602
Research and development	59,692			50,185			46,197
Selling, general and administrative	44,315			40,994			40,515
Restructuring charges	—			579			—
Stock-based compensation effect on income before taxes	111,984			99,859			94,314
Income tax effect	(34,119		)	(29,268		)	(27,327		)
Net stock-based compensation effect on net income	$	77,865		$	70,591		$	66,987

In accordance with the authoritative guidance on accounting for share-based payments, the Company adjusts stock-based compensation on a quarterly basis for changes to the estimate of expected equity award forfeitures based on actual forfeiture experience. The effect of adjusting the forfeiture rate for all expense amortization was recognized in the period the forfeiture estimate was changed, and was not material for all periods presented.

As of April 2, 2016 and March 28, 2015, the ending inventory balances included $2.0 million of capitalized stock-based compensation. During fiscal 2016, 2015 and 2014, the tax benefit realized for the tax deduction from option exercises and other awards, including amounts credited to additional paid-in capital, totaled $56.3 million, $55.0 million and $67.0 million, respectively.

The fair values of stock options and stock purchase plan rights under the Company's equity incentive plans and ESPP were estimated as of the grant date using the Black-Scholes option pricing model. The Company's expected stock price volatility assumption is estimated using implied volatility of the Company's traded options. The expected life of options granted is based on the historical exercise activity as well as the expected disposition of all options outstanding. The expected life of options granted also considers the actual contractual term.

The Company's stock-based compensation expense relating to options granted during fiscal 2016, 2015 and 2014 were not material.

The weighted-average fair value per share of stock purchase rights granted under the ESPP during fiscal 2016, 2015 and 2014 were $11.20, $9.17 and $11.11, respectively. These fair values per share were estimated at the date of grant using the following weighted-average assumptions:



	Employee Stock Purchase Plan
	2016		2015		2014
Expected life of options (years)	1.3		1.3		1.3
Expected stock price volatility	0.26		0.25		0.24
Risk-free interest rate	0.5	%	0.3	%	0.2	%
Dividend yield	2.7	%	2.9	%	2.4	%

The estimated fair values of restricted stock unit (RSU) awards were calculated based on the market price of Xilinx common stock on the date of grant, reduced by the present value of dividends expected to be paid on Xilinx common stock prior to vesting. The per share weighted-average fair value of RSUs granted during fiscal 2016, 2015 and 2014 were $41.19, $43.11 and $38.90, respectively. The weighted average fair value of RSUs granted in fiscal 2016, 2015 and 2014 were calculated based on estimates at the date of grant using the following weighted-average assumptions:



	2016		2015		2014
Risk-free interest rate	1.3	%	0.8	%	0.7	%
Dividend yield	2.8	%	2.5	%	2.5	%

Options outstanding that have vested and are expected to vest in future periods as of April 2, 2016 are as follows:



(Shares and intrinsic value in thousands)	Number of Shares	Weighted-Average Exercise Price Per Share	Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value ⁽¹⁾
Vested (i.e., exercisable)	1,241	$25.33	0.98	$	27,653
Expected to vest	15	$31.74	1.73	$	246
Total vested and expected to vest	1,256	$25.41	0.99	$	27,899

Total outstanding	1,257	$25.42	0.99	$	27,917


(1)	These amounts represent the difference between the exercise price and $47.62, the closing price per share of Xilinx's stock on April 2, 2016, for all in-the-money options outstanding.

Options outstanding that are expected to vest are net of estimated future option forfeitures in accordance with the authoritative guidance of accounting for share-based payment, which are estimated when compensation costs are recognized. Options with a fair value of $344 thousand completed vesting during fiscal 2016. As of April 2, 2016, total unrecognized stock-based compensation costs related to stock options and ESPP were $64 thousand and $12.9 million, respectively. The total unrecognized stock-based compensation cost for stock options and ESPP is expected to be recognized over a weighted-average period of 0.6 years and 0.8 years, respectively.

Employee Stock Option Plans

Under the Company's stock option plans (Option Plans), options reserved for future issuance of common shares to employees and directors of the Company total 14.2 million shares as of April 2, 2016, including 12.9 million shares available for future grants under the 2007 Equity Incentive Plan (2007 Equity Plan). Options to purchase shares of the Company's common stock under the Option Plans are granted at 100% of the fair market value of the stock on the date of grant. The contractual term for stock awards granted under the 2007 Equity Plan is seven years from the grant date. Prior to April 1, 2007, stock options granted by the Company generally expire ten years from the grant date. Stock awards granted to existing and newly hired employees generally vest over a four-year period from the date of grant.

A summary of shares available for grant under the 2007 Equity Plan is as follows:



(Shares in thousands)	Shares Available for Grant
March 30, 2013	15,990
Additional shares reserved	2,000
Stock options granted	(8	)
Stock options cancelled	26
RSUs granted	(3,297	)
RSUs cancelled	326
March 29, 2014	15,037
Additional shares reserved	3,000
Stock options cancelled	6
RSUs granted	(3,201	)
RSUs cancelled	531
March 28, 2015	15,373
Stock options cancelled	10
RSUs granted	(3,088	)
RSUs cancelled	634
April 2, 2016	12,929

The types of awards allowed under the 2007 Equity Plan include incentive stock options, non-qualified stock options, RSUs, restricted stock and stock appreciation rights. To date, the Company has issued a mix of non-qualified stock options and RSUs under the 2007 Equity Plan.

A summary of the Company's Option Plans activity and related information is as follows:



	Options Outstanding
(Shares in thousands)	Number of Shares		Weighted-Average Exercise Price Per Share
March 30, 2013	12,753		$28.01
Granted	8		$41.08
Exercised	(7,421	)	$29.95
Forfeited/cancelled/expired	(60	)	$35.61
March 29, 2014	5,280		$25.22
Granted	—		—
Exercised	(2,009	)	$25.80
Forfeited/cancelled/expired	(24	)	$32.22
March 28, 2015	3,247		$24.81
Granted	—		—
Exercised	(1,977	)	$24.38
Forfeited/cancelled/expired	(13	)	$32.10
April 2, 2016	1,257		$25.42
Options exercisable at:
April 2, 2016	1,241		$25.33
March 28, 2015	3,173		$24.59

The total pre-tax intrinsic value of options exercised during fiscal 2016 and 2015 was $42.6 million and $37.3 million, respectively. This intrinsic value represents the difference between the exercise price and the fair market value of the Company's common stock on the date of exercise.

Since the Company adopted the policy of retiring all repurchased shares of its common stock, new shares are issued upon employees' exercise of their stock options.

The following information relates to options outstanding and exercisable under the Option Plans as of April 2, 2016:



	Options Outstanding			Options Exercisable
		Weighted-	Weighted-		Weighted-
(Shares in thousands)		Average	Average		Average
		Remaining	Exercise		Exercise
	Options	Contractual Term	Price Per	Options	Price Per
Range of Exercise Prices	Outstanding	(Years)	Share	Exercisable	Share
$18.97 - $19.79	5	0.18	$19.22	5	$19.22
$20.57 - $29.27	1,105	0.76	$24.32	1,105	$24.32
$30.21 - $38.56	147	2.75	$33.90	131	$33.84
	1,257	0.99	$25.42	1,241	$25.33

RSU Awards

A summary of the Company's RSU activity and related information is as follows:



	RSUs Outstanding
(Shares and intrinsic value in thousands)	Number of Shares		Weighted-Average Grant-Date Fair Value Per Share	Weighted Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value ⁽¹⁾
March 30, 2013	5,996		$30.83
Granted	3,297		$38.90
Vested ⁽²⁾	(2,066	)	$29.25
Cancelled	(326	)	$32.28
March 29, 2014	6,901		$35.08
Granted	3,201		$43.11
Vested ⁽²⁾	(2,698	)	$33.82
Cancelled	(531	)	$32.91
March 28, 2015	6,873		$39.07
Granted	3,088		$41.19
Vested ⁽²⁾	(2,691	)	$37.23
Cancelled	(592	)	$39.43
April 2, 2016	6,678		$40.74	2.31	$	318,023

Expected to vest as of April 2, 2016	5,426		$40.71	2.31	$	258,375


(1)	Aggregate intrinsic value for RSUs represents the closing price per share of Xilinx's stock on April 2, 2016 of $47.62, multiplied by the number of RSUs outstanding or expected to vest as of April 2, 2016.


(2)	The number of RSUs vested includes shares that the Company withheld on behalf of employees to satisfy the statutory tax withholding requirements.

RSUs with a fair value of $100.2 million were vested during fiscal 2016. As of April 2, 2016, total unrecognized stock-based compensation costs related to non-vested RSUs was $179.7 million. The total unrecognized stock-based compensation cost for RSUs is expected to be recognized over a weighted-average period of 2.5 years.

Employee Stock Purchase Plan

Under the Company's ESPP, qualified employees can obtain a 24-month purchase right to purchase the Company's common stock at the end of each six-month exercise period. Participation is limited to 15% of the employee's annual earnings up to a maximum of $21 thousand in a calendar year. Approximately 81% of all eligible employees participate in the ESPP. The purchase price of the stock is 85% of the lower of the fair market value at the beginning of the 24-month offering period or at the end of each six-month exercise period. Employees purchased 1.1 million shares for $37.6 million in fiscal 2016, 1.2 million shares for $39.0 million in fiscal 2015, and 1.2 million shares for $37.9 million in fiscal 2014. The next scheduled purchase under the ESPP is in the second quarter of fiscal 2017. As of April 2, 2016, 9.4 million shares were available for future issuance.