Stock-Based Compensation

9 Months Ended

Oct. 03, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation:

Total stock-based compensation expense included in our Consolidated Statements of Operations was as follows:



	Three Months Ended				Nine Months Ended
(In thousands)	October 3, 2015		September 27, 2014		October 3, 2015		September 27, 2014
Line item:
Cost of products sold	$	406	$	215	$	1,044	$	592
Research and development	2,789		1,356		6,644		3,744
Selling, general and administrative	1,004		1,562		4,874		5,207
Acquisition related charges	402		—		4,293		—
Total stock-based compensation	$	4,601	$	3,133	$	16,855	$	9,543

During the first and second quarters of 2015, we granted approximately 306,000 stock options and 91,500 stock options and RSUs, respectively, with a market condition to certain executives. During the third quarter, there were no new grants with a market condition. The options and RSUs have a two year vesting and vest between 0% and 200% of the target amount, based on the Company's relative Total Shareholder Return (TSR) when compared to the TSR of a component of companies of the PHLX Semiconductor Sector Index over a two year period. The fair values of the options were determined and fixed on the date of grant using a lattice-based option-pricing valuation model, which incorporates a Monte-Carlo simulation, and considered the likelihood that we would achieve the market condition. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period. As of October 3, 2015, 397,500 market-based stock options were outstanding. In the third quarter and first nine months of 2015, we incurred stock compensation expense of $0.1 million and $0.4 million, respectively, related to these market condition awards.

Total stock-based compensation for the nine months ended October 3, 2015 was $16.9 million of which $3.9 million was paid during the period.