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 1, 2017		July 2, 2016
Stock-based compensation included in:
Cost of revenues	$	2,150	$	2,119
Research and development	17,466		15,120
Selling, general and administrative	12,420		12,165
	$	32,036	$	29,404

Employee Stock Option Plans

The types of awards allowed under the 2007 Equity Incentive Plan (2007 Equity Plan) include incentive stock options, non-qualified stock options, restricted stock units (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; however, there was no issuance of stock options during the first quarter of fiscal year 2018 and the entire fiscal year 2017. The Company's stock-based compensation expenses related to options during the first quarter of fiscal year 2018 and the number of options outstanding as of July 1, 2017 were not material. As of July 1, 2017, 12.2 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 1, 2017 and July 2, 2016 was $2.8 million and $12.6 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
April 2, 2016	6,619		$	40.74
Granted	3,398		$	44.38
Vested	(2,619	)	$	39.49
Cancelled	(410	)	$	41.63
April 1, 2017	6,988		$	42.93
Granted	317		$	57.99
Vested	(1,439	)	$	41.45
Cancelled	(95	)	$	44.14
July 1, 2017	5,771		$	43.66

The estimated fair values of RSUs 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 2018 was $57.99 ($42.52 for the first quarter of fiscal 2017), which were calculated based on estimates at the date of grant using the following weighted-average assumptions:



	Three Months Ended
	July 1, 2017		July 2, 2016
Risk-free interest rate	1.7	%	1.0	%
Dividend yield	2.3	%	2.8	%

For the majority of RSUs granted, the number of shares of common stock issued on the date the RSU awards vest is net of the minimum statutory withholding requirements that we pay in cash to the appropriate taxing authorities on behalf of our employees. In the condensed consolidated statement of cash flows, these amounts have been included as a reduction in the cash proceeds from issuance of common stock under our various stock plans. During the first three months of fiscal years 2018 and 2017, we withheld $25.6 million and $26.7 million worth of RSU awards, respectively, to satisfy the employees’ tax obligations.

During the first three months of fiscal years 2018 and 2017, the Company realized tax benefits of $11.6 million and $6.8 million, respectively, in the condensed consolidated statement of income as a component of the provision for income taxes.

Employee Stock Purchase Plan

The fair values of stock purchase plan rights under the Company’s ESPP were estimated using the Black-Scholes option pricing model. Under the Company’s ESPP, shares are only issued during the second and fourth quarters of each fiscal year. Therefore, no shares were issued during the first quarter of fiscal years 2018 or 2017. The next scheduled purchase under the ESPP is in the second quarter of fiscal year 2018. As of July 1, 2017, 8.2 million shares were available for future issuance under the Company's ESPP.