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 Employee Stock Purchase Plan (ESPP):



	Three Months Ended
(In thousands)	July 2, 2016		June 27, 2015
Stock-based compensation included in:
Cost of revenues	$	2,119	$	1,964
Research and development	15,120		14,692
Selling, general and administrative	12,165		9,664
	$	29,404	$	26,320

As a result of the early adoption of new guidance on accounting for share-based payments and in the first quarter of fiscal 2017, the Company recorded excess tax benefits realized for the tax deduction from option exercises and other awards of $6.8 million in the provision for income taxes. Please refer to "Note 2. Recent Accounting Changes and Accounting Pronouncements" and "Note 14. Income Taxes" for more details regarding the adoption of the new guidance. During the first quarter of fiscal 2016, the Company recorded excess tax benefits realized for the tax deduction from option exercises and other awards of $2.2 million in additional paid-in capital.

The fair values of stock purchase plan rights under the Company’s ESPP were estimated using the Black-Scholes option pricing model.

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 the first quarter of fiscal 2017 was $42.52 ($42.45 for the first quarter of fiscal 2016), which were calculated based on estimates at the date of grant using the following weighted-average assumptions:



	Three Months Ended
	July 2, 2016		June 27, 2015
Risk-free interest rate	1.0	%	1.3	%
Dividend yield	2.8	%	2.7	%

Employee Stock Option Plans

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 28, 2015	3,247		$	24.81
Exercised	(1,977	)	$	24.38
Forfeited/cancelled/expired	(13	)	$	32.10
April 2, 2016	1,257		$	25.42
Exercised	(561	)	$	23.40
Forfeited/cancelled/expired	(1	)	$	27.86
July 2, 2016	695		$	27.04
Options exercisable at:
July 2, 2016	682		$	26.95
April 2, 2016	1,241		$	25.33

The types of awards allowed under the 2007 Equity Incentive Plan (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, but there was no issuance of stock options during the first quarter of fiscal 2017 and the entire fiscal 2016. As of July 2, 2016, 12.9 million shares remained available for grant under the 2007 Equity Plan.

The total pre-tax intrinsic value of options exercised during the three months ended July 2, 2016 and June 27, 2015 was $12.6 million and $15.8 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.

RSU Awards

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



	RSUs Outstanding
(Shares in thousands)	Number of Shares		Weighted-Average Grant-Date Fair Value Per Share
March 28, 2015	6,873		$	39.07
Granted	3,088		$	41.19
Vested	(2,691	)	$	37.23
Cancelled	(592	)	$	39.43
April 2, 2016	6,678		$	40.74
Granted	155		$	42.52
Vested	(2,010	)	$	39.45
Cancelled	(149	)	$	40.77
July 2, 2016	4,674		$	41.35

Employee Stock Purchase Plan

Under the Company’s ESPP, no shares were issued during the first quarter of fiscal 2017 or 2016. The next scheduled purchase under the ESPP is in the second quarter of fiscal 2017. As of July 2, 2016, 9.4 million shares were available for future issuance.