Note 11 Stock-Based Compensation

9 Months Ended

Jun. 27, 2015

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 27, 2015		June 28, 2014		June 27, 2015		June 28, 2014
	(In thousands)
Stock options	$	1,689	$	2,433	$	7,927	$	7,791
Restricted stock units	2,584		1,805		7,551		5,479
Total	$	4,273	$	4,238	$	15,478	$	13,270

Stock-based compensation expense was recognized as follows:



	Three Months Ended				Nine Months Ended
	June 27, 2015		June 28, 2014		June 27, 2015		June 28, 2014
	(In thousands)
Cost of sales	$	1,412	$	1,298	$	4,479	$	3,863
Selling, general and administrative	2,810		2,916		10,872		9,370
Research and development	51		24		127		37
Total	$	4,273	$	4,238	$	15,478	$	13,270

During the second quarter of 2015, the Company's stockholders approved the reservation of an additional 1.7 million shares of common stock for future issuance under the Company's 2009 Incentive Plan. As of June 27, 2015, an aggregate of 13.2 million shares were authorized for future issuance under the Company's stock plans, of which 10.2 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 3.0 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 27, 2014	8,181		12.90	5.30	93,767
Granted	557		24.56
Exercised/Cancelled/Forfeited/Expired	(1,591	)	16.60
Outstanding as of June 27, 2015	7,147		12.99	5.19	63,503
Vested and expected to vest as of June 27, 2015	7,027		12.90	5.14	62,905
Exercisable as of June 27, 2015	5,792		12.22	4.48	54,805

The weighted-average grant date fair value of stock options granted during the three and nine months ended June 27, 2015 was $11.02 per share and $12.53 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 27, 2015, unrecognized compensation expense of $8.6 million is expected to be recognized over a weighted average period of 1.9 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 27, 2014	2,341		13.29	2.01	56,064
Granted	952		23.46
Vested/Forfeited/Cancelled	(273	)	13.44
Outstanding as of June 27, 2015	3,020		16.48	1.76	65,112
Expected to vest as of June 27, 2015	1,970		16.23	1.66	42,465

As of June 27, 2015, unrecognized compensation expense of $23.2 million is expected to be recognized over a weighted average period of 1.7 years. Additionally, as of June 27, 2015, unrecognized compensation expense related to performance-based restricted stock units for which achievement of the performance criteria is not considered probable was $13.6 million.