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Stock-Based Compensation
6 Months Ended
Mar. 28, 2015
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation
Stock-Based Compensation
The following presents stock-based compensation expense in the Company’s Consolidated Statements of Operations:
 
Three Months Ended
 
Six Months Ended
 
March 28,
2015
 
March 29,
2014
 
March 28,
2015
 
March 29,
2014
Cost of revenues
$
2.3

 
$
2.1

 
$
4.3

 
$
3.6

Research and development
2.2

 
2.2

 
4.1

 
4.1

Selling and marketing
2.3

 
2.4

 
4.3

 
4.1

General and administrative
6.9

 
5.7

 
13.0

 
9.5

Restructuring and divestiture

 

 
0.1

 
4.8

 
$
13.7

 
$
12.4

 
$
25.8

 
$
26.1


The Company granted 1.2 million and 2.2 million stock options during the six months ended March 28, 2015 and March 29, 2014, respectively, with weighted-average exercise prices of $26.42 and $21.85, respectively. There were 7.8 million options outstanding at March 28, 2015 with a weighted-average exercise price of $21.67.
The Company uses a binomial model to determine the fair value of its stock options. The weighted-average assumptions utilized to value these stock options are indicated in the following table:
 
 
Three Months Ended
 
Six Months Ended
 
March 28,
2015
 
March 29,
2014
 
March 28,
2015
 
March 29,
2014
Risk-free interest rate
1.7
%
 
1.3
%
 
1.7
%
 
1.2
%
Expected volatility
38.6
%
 
41.4
%
 
38.6
%
 
41.4
%
Expected life (in years)
5.3

 
4.5

 
5.3

 
4.4

Dividend yield

 

 

 

Weighted average fair value of options granted
$
10.36

 
$
7.82

 
$
9.55

 
$
7.65


The Company granted 1.4 million and 2.3 million restricted stock units (RSUs) during the six months ended March 28, 2015 and March 29, 2014, respectively, with weighted-average grant date fair values of $26.35 and $21.53, respectively. As of March 28, 2015, there were 3.8 million unvested RSUs outstanding with a weighted-average grant date fair value of $23.52. In addition, the Company granted 0.3 million performance stock units (PSUs) in fiscal 2015 to members of its senior management team, which have a weighted-average grant date fair value of $26.58. Each recipient of PSUs is eligible to receive between zero and 200% of the target number of shares of the Company’s common stock at the end of three years provided the Company’s defined Return on Invested Capital metrics are achieved. The Company is recognizing compensation expense ratably over the required service period based on its estimate of the number of shares that will vest. If there is a change in the estimate of the number of shares that are probable of vesting, the Company will cumulatively adjust compensation expense in the period that the change in estimate is made.
At March 28, 2015, there was $26.8 million and $83.2 million of unrecognized compensation expense related to stock options and stock units (comprised of RSUs and PSUs), respectively, to be recognized over a weighted-average period of 3.5 years and 2.8 years, respectively.