Stock-Based Compensation

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



	Three Months Ended				Nine Months Ended
(In thousands)	September 28, 2019		September 29, 2018		September 28, 2019		September 29, 2018
Cost of products sold	$	453	$	219	$	982	$	652
Research and development	1,658		926		4,029		2,970
Selling, general, and administrative	3,569		1,563		8,324		6,286
Total stock-based compensation	$	5,680	$	2,708	$	13,335	$	9,908

Market-Based and Performance-Based Stock Compensation

In fiscal years 2019 and 2018, we granted various awards of RSUs with either a market condition or a performance condition to certain executives. During the third quarter of fiscal 2019, we granted approximately 0.3 million additional awards of RSUs with a market condition to certain executives. Under the terms of these grants, vesting of the market condition RSUs will not occur unless the Company achieves total shareholder return at least equivalent to the 25^th percentile of semiconductors on the Philadelphia Stock Exchange, which condition is tested for one-third of the grants on the first, second and third anniversary of grants. If the 75^th percentile of the market condition is achieved the awards may vest at 250% or 200% for the executives. Also during the third quarter of fiscal 2019, the market condition for awards granted in the previous year achieved the 75^th percentile of the condition, and the first tranche of these awards vested at 250% or 200% of the RSUs, as applicable for the respective executive. For these awards, we incurred stock compensation expense of approximately $0.9 million and $0.1 million in the third quarter of fiscal 2019 and fiscal 2018, respectively, and approximately $2.9 million and $0.6 million in the first nine months of fiscal 2019 and fiscal 2018, respectively, which is recorded as a component of total stock-based compensation expense.

The following table summarizes the activity for our awards with a market or performance condition during the first nine months of fiscal 2019:



(Shares in thousands)	Total
Balance, December 29, 2018	909
Granted	584
Effect of vesting multiplier	187
Vested	(338	)
Canceled	(106	)
Balance, September 28, 2019	1,236