Note 16 Stock-Based Compensation

12 Months Ended

Oct. 03, 2020

Share-based Payment Arrangement, Noncash Expense [Abstract]

Share-based Payment Arrangement [Text Block]

Stock-Based Compensation

Stock-based compensation expense was attributable to: 

	Year Ended
	October 3, 2020		September 28, 2019		September 29, 2018
	(In thousands)
Stock options	$	(1,145)	$	1,250	$	1,779
Restricted stock units, including performance-based awards	27,380		29,594		31,046
Total	$	26,235	$	30,844	$	32,825

Stock-based compensation expense was recognized as follows:

	Year Ended
	October 3, 2020		September 28, 2019		September 29, 2018
	(In thousands)
Cost of sales	$	10,099	$	9,757	$	8,187
Selling, general and administrative	15,897		20,807		25,206
Research and development	239		280		(568)
Total	$	26,235	$	30,844	$	32,825

Restricted and Performance Stock Units

The Company grants restricted stock units and restricted stock units with performance conditions ("PSUs") to executive officers, directors and certain other employees. These units vest over periods ranging from one year to four years and/

or upon achievement of specified performance criteria and are automatically exchanged for shares of common stock at the vesting date. If performance metrics are not met within specified time limits, the award will be canceled. Compensation expense associated with restricted stock units and PSUs is recognized ratably over the vesting period, subject to probability of achievement for PSUs.

During the first two quarters of 2020, the Company granted PSUs for 304,500 shares for which vesting is contingent on cumulative non-GAAP earnings per share measured over three fiscal years. If a minimum threshold is not achieved, no shares will vest. If the minimum threshold is achieved or exceeded, the number of shares of common stock that will be issued will range from 80% to 120% of the number of PSUs granted, depending on the extent of performance. Additionally, the number of shares that vest may be adjusted up or down by up to 15% based on the Company's total shareholder return relative to that of its peer group over this same period. These PSUs will expire on December 31, 2022 if such performance conditions have not been met.

 Activity with respect to the Company's restricted stock units and PSUs 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 30, 2017	3,359	27.56	1.51	124,800
Granted	1,102	33.51
Vested/Forfeited/Cancelled	(1,158)	25.31
Outstanding as of September 29, 2018	3,303	30.33	1.21	97,913
Granted	1,843	25.09
Vested/Forfeited/Cancelled	(1,993)	29.46
Outstanding as of September 28, 2019	3,153	27.82	1.30	102,720
Granted	1,340	32.51
Vested/Forfeited/Cancelled	(1,925)	28.62
Outstanding as of October 3, 2020	2,568	29.67	1.23	71,571
Expected to vest as of October 3, 2020	2,093	29.85	1.26	58,337

The fair value of restricted stock units that vested during the year was $43 million for 2020, $29 million for 2019 and $36 million for 2018. As of October 3, 2020, unrecognized compensation expense of $34 million is expected to be recognized over a weighted average period of 1.3 years. Additionally, as of October 3, 2020, unrecognized compensation expense related to performance-based restricted stock units for which achievement of performance criteria was not currently considered probable was $7 million.