Stock-Based Compensation Plans

6 Months Ended

Oct. 02, 2021

Share-based Payment Arrangement [Abstract]

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				Six Months Ended
(In thousands)	October 2, 2021		September 26, 2020		October 2, 2021		September 26, 2020
Stock-based compensation included in:
Cost of revenues	$	3,797	$	2,963	$	7,407	$	5,684
Research and development	42,273		36,110		83,735		66,479
Selling, general and administrative	23,650		19,366		46,187		36,659
	$	69,720	$	58,439	$	137,329	$	108,822

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. As of October 2, 2021, 9.5 million shares remained available for grant under the 2007 Equity Plan.

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, 2020	6,780	$	80.53
Granted	3,885	$	106.36
Vested	(2,558)	$	71.07
Cancelled	(680)	$	85.26
April 3, 2021	7,427	$	96.45
Granted	2,507	$	136.18
Vested	(2,355)	$	83.29
Cancelled	(209)	$	106.66
October 2, 2021	7,370	$	113.54

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 second quarter of fiscal 2022 was $135.77, ($95.59 for the second quarter of fiscal 2021), which were calculated based on estimates at the date of grant using the following weighted-average assumptions:


	Three Months Ended				Six Months Ended
	October 2, 2021		September 26, 2020		October 2, 2021		September 26, 2020
Risk-free interest rate	0.6	%	0.3	%	0.6	%	0.3	%
Dividend yield	—	%	1.5	%	—	%	1.5	%

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 six months of fiscal 2022 and 2021, the Company withheld $83.0 million and $53.4 million worth of RSU awards, respectively, to satisfy the employees’ tax obligations.

During the second quarter and the first six months of fiscal 2022, the Company realized excess tax benefits of $10.5 million and $30.1 million, respectively, primarily from RSU vesting. During the second quarter and the first six months of fiscal 2021, the excess tax benefits were $12.4 million and $12.7 million, respectively, primarily from RSU vesting. These tax benefits were recorded in the condensed consolidated statements of income as a component of the provision (benefit) for income taxes.

Employee Stock Purchase Plan

Under the Company’s ESPP, shares are only issued during the second and fourth quarters of each fiscal year. Employees purchased 259 thousand shares for $19.8 million during the second quarter of fiscal 2022 and 283 thousand shares for $19.8 million during the second quarter of fiscal 2021. The per-share weighted-average fair value of stock purchase rights granted under the ESPP during the second quarter of fiscal 2022 and 2021 was $47.42 and $31.40, respectively. The fair values of stock purchase plan rights granted in the second quarter of fiscal 2022 and 2021 were estimated using the Black-Scholes option pricing model at the date of grant using the following assumptions:


	2022		2021
Expected life of options (years)	1.25		1.25
Expected stock price volatility	0.40		0.38
Risk-free interest rate	0.1	%	0.1	%
Dividend yield	—	%	1.4	%

The next scheduled purchase under the ESPP is in the fourth quarter of fiscal 2022. As of October 2, 2021, 11.6 million shares were available for future issuance under the Company's ESPP.