Stock-Based Compensation Plans

3 Months Ended

Jul. 02, 2011

Stock-Based Compensation Plans

Stock-Based Compensation Plans

Note 7. 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:

	Three Months Ended
	July 2,		July 3,
(In thousands)	2011		2010
Stock-based compensation included in:
Cost of revenues	$	1,310	$	1,267
Research and development		6,487		7,204
Selling, general and administrative		5,970		6,649
	$	13,767	$	15,120

During the first quarter of fiscal 2012 and 2011, the tax benefit realized for the tax deduction from option exercises and other awards, including amounts credited to additional paid-in capital, totaled $5.3 million and $188 thousand, respectively.

The fair values of stock options and stock purchase plan rights under the Company's equity incentive plans and Employee Stock Purchase Plan were estimated as of the grant date using the Black-Scholes option pricing model. The Company's expected stock price volatility assumption for stock options 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 weighted-average fair values per share of stock options granted during the first quarter of fiscal 2012 and 2011 were $7.80 and $6.39, respectively, which were estimated at the date of grant using the following weighted-average assumptions:

	Three Months Ended
	July 2,			July 3,
	2011			2010
Expected life of options (years)		5.1			5.1
Expected stock price volatility		0.30			0.31
Risk-free interest rate		1.8	%		2.5	%
Dividend yield		2.2	%		2.5	%

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 values of RSUs granted during the first quarter of fiscal 2012 and 2011 were $31.75 and $24.04, respectively, which were calculated based on estimates at the date of grant using the following weighted-average assumptions:

	Three Months Ended
	July 2,			July 3,
	2011			2010
Risk-free interest rate		1.0	%		1.5	%
Dividend yield		2.3	%		2.5	%

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
April 3, 2010		31,026		$	30.51
Granted		2,345		$	26.36
Exercised		(5,704	)	$	25.42
Forfeited/cancelled/expired		(2,698	)	$	50.69
April 2, 2011		24,969		$	29.11
Granted		40		$	33.91
Exercised		(1,515	)	$	25.08
Forfeited/cancelled/expired		(1,785	)	$	36.77
July 2, 2011		21,709		$	28.76
Options exercisable at:
July 2, 2011		18,127		$	29.63
April 2, 2011		20,837		$	30.08

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. The mix of stock options and RSU awards changes depending upon the grade level of the employees. Employees at the lower grade levels typically receive mostly RSUs and may also receive stock options. Employees at the higher grade levels, including the Company's executive officers, receive both stock options and RSUs. As of July 2, 2011, 13.0 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, 2011 and July 3, 2010 was $14.9 million and $1.6 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 3, 2010		3,652		$	21.70
Granted		2,043		$	25.14
Vested		(1,192	)	$	22.23
Cancelled		(288	)	$	21.99
April 2, 2011		4,215		$	23.19
Granted		163		$	31.75
Vested		(784	)	$	22.60
Cancelled		(147	)	$	22.49
July 2, 2011		3,447		$	23.75

Employee Stock Purchase Plan

Under the Employee Stock Purchase Plan, no shares were issued during the first quarter of fiscal 2012 or 2011. The next scheduled purchase under the Employee Stock Purchase Plan is in the second quarter of fiscal 2012. As of July 2, 2011, 7.4 million shares were available for future issuance out of 44.5 million shares authorized.