Note 12 Stock-Based Compensation

9 Months Ended

Jun. 28, 2014

Share-based Compensation [Abstract]

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

Stock-Based Compensation

Stock-based compensation expense was attributable to:

	Three Months Ended				Nine Months Ended
	June 28, 2014		June 29, 2013		June 28, 2014		June 29, 2013
	(In thousands)
Stock options	$	2,433	$	2,665	$	7,791	$	8,039
Restricted stock units	1,805		1,703		5,479		5,337
Total	$	4,238	$	4,368	$	13,270	$	13,376

Stock-based compensation expense was recognized as follows:

	Three Months Ended				Nine Months Ended
	June 28, 2014		June 29, 2013		June 28, 2014		June 29, 2013
	(In thousands)
Cost of sales	$	1,298	$	1,471	$	3,863	$	4,102
Selling, general and administrative	2,916		2,876		9,370		9,175
Research and development	24		21		37		99
Total	$	4,238	$	4,368	$	13,270	$	13,376

During the second quarter of 2014, the Company's stockholders approved the reservation of an additional 1.7 million million shares of common stock for future issuance under the Company's 2009 Incentive Plan. As of June 28, 2014, an aggregate of 14.3 million shares were authorized for future issuance under the Company's stock plans, of which 11.2 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 3.1 million shares of common stock were available for future grant.

Stock Options

Stock option activity was as follows:

	Number of Shares		Weighted- Average Exercise Price ($)	Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value of In-The-Money Options ($)
	(In thousands)				(In thousands)
Outstanding as of September 28, 2013	9,562		12.65	5.99	62,825
Granted	641		15.82
Exercised/Cancelled/Forfeited/Expired	(1,371	)	12.94
Outstanding as of June 28, 2014	8,832		12.83	5.53	82,771
Vested and expected to vest as of June 28, 2014	8,634		12.86	5.46	80,781
Exercisable as of June 28, 2014	6,887		13.16	4.75	63,273

The weighted-average grant date fair value of stock options granted during the three and nine months ended June 28, 2014 was $8.74 per share and $9.13 per share, respectively. The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value of in-the-money options that would have been received by the option holders had all option holders exercised their options at the Company's closing stock price on the date indicated.

As of June 28, 2014, unrecognized compensation expense of $11.7 million is expected to be recognized over a weighted average period of 2.0 years.

Restricted Stock Units

Activity with respect to the Company's restricted stock units was as follows:

	Number of Shares		Weighted- Average Grant Date Fair Value ($)	Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value ($)
	(In thousands)				(In thousands)
Outstanding as of September 28, 2013	1,768		10.90	2.02	31,052
Granted	1,177		17.05
Vested/Forfeited/Cancelled	(597	)	13.86
Outstanding as of June 28, 2014	2,348		13.23	2.24	50,984
Expected to vest as of June 28, 2014	1,232		12.85	1.96	26,741

As of June 28, 2014, unrecognized compensation expense of $16.6 million is expected to be recognized over a weighted average period of 1.8 years. Additionally, as of June 28, 2014, unrecognized compensation expense related to performance-based restricted stock units was $9.1 million. To date, no expense has been recorded for these performance-based restricted stock units as achievement of the performance criteria is not considered probable.