Equity Compensation (Tables)

12 Months Ended

Mar. 31, 2018

Summary of Activity in Total Stock Available for Grant

The following table summarizes the activity in total shares available for grant (in thousands):

	Shares
	Available for
	Grant
Balance, March 28, 2015	3,896
Shares added	4,900
Granted	(2,676	)
Forfeited	167
Balance, March 26, 2016	6,287
Shares added	—
Granted	(1,719	)
Forfeited	124
Balance, March 25, 2017	4,692
Shares added	—
Granted	(1,755	)
Forfeited	128
Balance, March 31, 2018	3,065

Summary of Effect of Stock-Based Compensation on Cost of Goods Sold

The following table summarizes the effects of stock-based compensation on cost of goods sold, research and development, sales, general and administrative, pre-tax income, and net income after taxes for shares granted under the Plan (in thousands, except per share amounts):

	Fiscal Year
	2018			2017			2016
Cost of sales	$	1,474		$	1,071		$	1,145
Research and development	26,137			21,186			17,173
Sales, general and administrative	21,130			17,336			15,188
Effect on pre-tax income	48,741			39,593			33,506
Income Tax Benefit	(5,953		)	(12,482		)	(10,306		)
Total share-based compensation expense (net of taxes)	42,788			27,111			23,200
Share-based compensation effects on basic earnings per share	$	0.67		$	0.43		$	0.37
Share-based compensation effects on diluted earnings per share	0.65			0.41			0.35

Schedule of Fair Value of Stock Option Grants

We estimated the fair value of each stock option granted on the date of grant using the Black-Scholes option-pricing model using a dividend yield of zero and the following additional assumptions:

	March 31, 2018		March 25, 2017		March 26, 2016
Expected stock price volatility	37.36	%	47.66	%	40.13 - 45.07%
Risk-free interest rate	1.67	%	1.13	%	0.94 - 1.05%
Expected term (in years)	3.03		2.79		2.72 - 2.97

Schedule of Stock Option Activity

Additional information with respect to stock option activity is as follows (in thousands, except per share amounts):

	Outstanding Options
	Number		Weighted Average Exercise Price
Balance, March 28, 2015	3,333		$	14.31
Options granted	387		31.39
Options exercised	(773	)	8.46
Options forfeited	—		—
Options expired	(22	)	35.41
Balance, March 26, 2016	2,925		$	17.96
Options granted	215		54.65
Options exercised	(1,382	)	11.87
Options forfeited	—		—
Options expired	—		—
Balance, March 25, 2017	1,758		$	27.25
Options granted	216		55.72
Options exercised	(234	)	18.84
Options forfeited	—		—
Options expired	—		—
Balance, March 31, 2018	1,740		$	31.91

Summary of Outstanding Options Vesting, Expected to Vest, or Exercisable

Additional information with regards to outstanding options that are vesting, expected to vest, or exercisable as of March 31, 2018 is as follows (in thousands, except years and per share amounts):

	Number of Options	Weighted Average Exercise price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Vested and expected to vest	1,738	$	31.89	6.11	$	21,446
Exercisable	1,182	$	25.20	4.96	$	19,243

Summary of Outstanding and Exercisable Options

The following table summarizes information regarding outstanding and exercisable options as of March 31, 2018 (in thousands, except per share amounts):

	Options Outstanding				Options Exercisable
		Weighted Average Remaining Contractual Life	Weighted Average Exercise		Number	Weighted Average
Range of Exercise Prices	Number	(years)	Price		Exercisable	Exercise Price
$2.90 - $16.25	403	2.58	$	13.09	403	$	13.09
$16.28 - $23.34	354	5.87	21.78		320	21.91
$23.80 - $23.80	3	5.43	23.80		3	23.80
$31.25 - $31.25	321	7.60	31.25		170	31.25
$32.29 - $54.65	443	6.74	46.06		286	42.37
$55.72 - $55.72	216	9.59	55.72		—	—
	1,740	6.11	$	31.91	1,182	$	25.20

Summary of Restricted Stock Units Vesting or Expected to Vest

Additional information with regards to outstanding restricted stock units that are expected to vest as of March 31, 2018, is as follows (in thousands, except year and per share amounts):

	Shares	Weighted Average Fair Value		Weighted Average Remaining Contractual Term (years)
Expected to vest	2,682	$	45.53	1.42

Summary of Monte Carlo Simulation Assumptions for Market Stock Units

The fair values estimated from the Monte Carlo simulation were calculated using a dividend yield of zero and the following additional assumptions:

	Year Ended
	March 31, 2018		March 25, 2017
Expected stock price volatility	37.36	%	47.66	%
Risk-free interest rate	1.74	%	0.98	%
Expected term (in years)	3.00		3.00

Schedule of Market Stock Units Activity

A summary of the activity for MSU’s in fiscal year 2018, 2017, and 2016 is presented below (in thousands, except year and per share amounts):

	Shares		Weighted Average Fair Value
March 28, 2015	35		$	22.00
Granted	90		39.86
Vested	—		—
Forfeited	—		—
March 26, 2016	125		$	34.85
Granted	55		75.58
Vested	—		—
Forfeited	—		—
March 25, 2017	180		$	47.30
Granted	89		47.26
Vested	(70	)	22.00
Forfeited	—		—
March 31, 2018	199		$	56.16

Summary of Outstanding MSUs Expected to Vest

Additional information with regard to outstanding MSU’s that are expected to vest as of March 31, 2018 is as follows (in thousands, except year and per share amounts):

	Shares	Weighted Average Fair Value		Weighted Average Remaining Contractual Term (years)
Expected to vest	193	$	55.95	1.40

Restricted Stock Units (RSUs)

Summary of Restricted Stock and Restricted Stock Units Activity

A summary of the activity for RSU’s in fiscal year 2018, 2017, and 2016 is presented below (in thousands, except year and per share amounts):

	Shares		Weighted Average Fair Value
March 28, 2015	2,821		$	25.57
Granted	1,437		31.51
Vested	(992	)	32.48
Forfeited	(103	)	24.75
March 26, 2016	3,163		26.14
Granted	947		52.40
Vested	(1,032	)	24.67
Forfeited	(83	)	28.40
March 25, 2017	2,995		34.91
Granted	936		55.79
Vested	(1,077	)	24.79
Forfeited	(85	)	41.09
March 31, 2018	2,769		$	45.70