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)	June 30, 2018		July 1, 2017
Stock-based compensation included in:
Cost of revenues	$	2,035	$	2,150
Research and development	20,930		17,466
Selling, general and administrative	12,643		12,420
	$	35,608	$	32,036

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 2019 and the entire fiscal 2018. The Company's stock-based compensation expenses related to options during the first quarter of fiscal 2019 and the number of options outstanding as of June 30, 2018 were not material. As of June 30, 2018, 11.2 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 June 30, 2018 and July 1, 2017 was $220 thousand and $2.8 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
April 1, 2017	6,988		$	42.93
Granted	3,718		$	60.18
Vested	(3,016	)	$	43.30
Cancelled	(701	)	$	48.16
March 31, 2018	6,989		$	51.39
Granted	261		$	65.69
Vested	(212	)	$	53.68
Cancelled	(128	)	$	50.50
June 30, 2018	6,910		$	51.84

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 2019 was $65.69 ($57.99 for the first quarter of fiscal 2018), which were calculated based on estimates at the date of grant using the following weighted-average assumptions:



	Three Months Ended
	June 30, 2018		July 1, 2017
Risk-free interest rate	2.7	%	1.7	%
Dividend yield	2.1	%	2.3	%

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 the Company pays in cash to the appropriate taxing authorities on behalf of the Company's employees. During the first three months of fiscal 2019 and 2018, the Company withheld $5.5 million and $25.6 million worth of RSU awards, respectively, to satisfy the employees’ tax obligations.

During the first three months of fiscal 2019, the Company realized an immaterial amount of excess tax benefits in the condensed consolidated statements of income as a component of the provision for income taxes. During the first three months of fiscal 2018, the Company realized tax benefits of $11.6 million.

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 2019 or 2018. The next scheduled purchase under the ESPP is in the second quarter of fiscal 2019. As of June 30, 2018, 9.3 million shares were available for future issuance under the Company's ESPP.