Note 13 Stock-Based Compensation

9 Months Ended

Jul. 02, 2022

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Share-based Payment Arrangement [Text Block]

Stock-Based Compensation

Stock-based compensation expense was recognized as follows:

	Three Months Ended				Nine Months Ended
	July 2, 2022		July 3, 2021		July 2, 2022		July 3, 2021
	(In thousands)
Cost of sales	$	3,724	$	3,712	$	10,455	$	10,762
Selling, general and administrative	6,819		4,913		18,230		15,109
Research and development	140		90		360		276
Total	$	10,683	$	8,715	$	29,045	$	26,147

During the second quarter of 2022, the Company’s stockholders approved the reservation of an additional 1.3 million shares of common stock for future issuance under the Company’s 2019 Equity Incentive Plan. As of July 2, 2022, an aggregate

of 7 million shares of common stock were authorized for future issuance under the Company’s stock plans, of which 4 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 3 million shares of common stock were available for future grant.

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, with associated compensation expense recognized ratably over the vesting period.

The Company also grants 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 during the measurement period, the shares will be cancelled. If a 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.

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 October 2, 2021	2,954	32.21	1.23	113,591
Granted	1,404	39.46
Vested/Forfeited/Cancelled	(1,254)	30.27
Outstanding as of July 2, 2022	3,104	36.28	1.45	122,480
Expected to vest as of July 2, 2022	2,723	36.15	1.39	107,454

As of July 2, 2022, unrecognized compensation expense of $68 million is expected to be recognized over a weighted average period of 1.4 years.