Stock-Based Compensation

3 Months Ended

Mar. 31, 2018

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

Stock-Based Compensation

Stock-Based Compensation

Total stock-based compensation expense included in our Consolidated Statements of Operations is presented in the following table:

	Three Months Ended
(In thousands)	March 31, 2018		April 1, 2017
Cost of products sold	$	237	$	228
Research and development	1,207		1,850
Selling, general, and administrative	3,356		1,765
Total stock-based compensation	$	4,800	$	3,843

The stock-based compensation expense included in Selling, general, and administrative expense for the first quarter of fiscal 2018 includes approximately $1.4 million of additional one-time expense accelerated under the CEO separation agreement executed with our retired CEO during the period.

In fiscal years 2015 through 2017, we granted stock options and RSUs with a market condition to certain executives. The options have a two year vesting period and can 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 in the PHLX Semiconductor Sector Index over a two year period. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period. The fair values of the options and RSUs were determined and fixed on the date of grant using a lattice-based option-pricing valuation model incorporating a Monte-Carlo simulation and a consideration of the likelihood that we would achieve the market condition.

The following table summarizes the activity for our stock options with a market condition during the first quarter of fiscal 2018:

(Shares in thousands)	Unvested		Vested		Total
Balance, December 30, 2017	707		83		790
Vested	(31	)	31		—
Canceled	31		(10	)	21
Balance, March 31, 2018	707		104		811

We incurred stock compensation expense related to these market condition awards of approximately $0.3 million and $0.2 million in the first quarter of fiscal 2018 and the first quarter of fiscal 2017, respectively, which is recorded as a component of total stock-based compensation expense.