Note 11 Stock-Based Compensation

9 Months Ended

Jul. 02, 2016

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
	July 2, 2016		June 27, 2015		July 2, 2016		June 27, 2015
	(In thousands)
Stock options	$	790	$	1,689	$	3,273	$	7,927
Restricted stock units, including performance based awards	4,632		2,584		14,686		7,551
Total	$	5,422	$	4,273	$	17,959	$	15,478

Stock-based compensation expense was recognized as follows:

	Three Months Ended				Nine Months Ended
	July 2, 2016		June 27, 2015		July 2, 2016		June 27, 2015
	(In thousands)
Cost of sales	$	1,542	$	1,412	$	4,879	$	4,479
Selling, general and administrative	3,669		2,810		12,657		10,872
Research and development	211		51		423		127
Total	$	5,422	$	4,273	$	17,959	$	15,478

During the second quarter of 2016, the Company's stockholders approved the reservation of an additional 1.9 million shares of common stock for future issuance under the Company's 2009 Incentive Plan. As of July 2, 2016, an aggregate of 12.7 million shares were authorized for future issuance under the Company's stock plans, of which 9.9 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 2.8 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 October 3, 2015	7,033		13.05	4.94	53,938
Granted	1		23.77
Exercised/Cancelled/Forfeited/Expired	(1,279	)	13.93
Outstanding as of July 2, 2016	5,755		12.85	4.33	82,219
Vested and expected to vest as of July 2, 2016	5,717		12.80	4.31	81,983
Exercisable as of July 2, 2016	5,205		12.08	3.96	78,375

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 such options at the Company's closing stock price on the date indicated.

As of July 2, 2016, unrecognized compensation expense of $3.8 million is expected to be recognized over a weighted average period of 1.7 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 October 3, 2015	2,979		16.52	1.52	59,843
Granted	1,619		22.99
Vested/Forfeited/Cancelled	(503	)	13.75
Outstanding as of July 2, 2016	4,095		19.42	1.56	111,151
Expected to vest as of July 2, 2016	2,490		18.64	1.26	67,591

As of July 2, 2016, unrecognized compensation expense of $27.2 million is expected to be recognized over a weighted average period of 1.3 years. Additionally, as of July 2, 2016, unrecognized compensation expense related to performance-based restricted stock units for which achievement of the performance criteria is not currently considered probable was $28.4 million.