Note 15. Stock-Based Compensation

Overview

The impact on the Company’s results of operations of recording stock-based compensation by function for the three and nine months ended March 30, 2019 and March 31, 2018, as follows (in millions):



	Three Months Ended				Nine Months Ended
	March 30, 2019		March 31, 2018		March 30, 2019		March 31, 2018
Cost of revenues	$	1.1	$	0.8	$	2.8	$	2.4
Research and development	1.6		1.2		4.4		3.7
Selling, general and administrative	8.1		5.6		21.3		16.7
Total stock-based compensation expense	$	10.8	$	7.6	$	28.5	$	22.8

Approximately $1.0 million and $0.8 million of stock-based compensation expense was capitalized to inventory as of March 30, 2019 and March 31, 2018, respectively.

Full Value Awards

Full Value Awards refer to restricted stock units that are granted without an exercise price and are converted to shares immediately upon vesting. Performance-based awards are performance-based with market conditions, performance conditions, time-based or a combination, and are expected to vest over one to four years. When converted into shares upon vesting, shares equivalent in value to the minimum withholding taxes liability on the vested shares are withheld by the Company for the payment of such taxes.

During the nine months ended March 30, 2019 and March 31, 2018, the Company granted 3.8 million and 3.1 million time-based awards, respectively. The fair value of the time-based Full Value Awards is based on the closing market price of the Company’s common stock on the date of award. The majority of these time-based awards vest over three years, with 33% vesting after one year and the balance vesting quarterly over the remaining two years.

During the nine months ended March 30, 2019 and March 31, 2018, the Company granted 0.5 million and 0.6 million, performance-based awards, respectively. These performance-based shares represent the target amount of grants, and the actual number of shares awarded upon vesting may vary depending upon the achievement of the relevant performance conditions. The shares attained over target upon vesting are reflected as awards granted during the period. Accordingly, during the nine months ended March 30, 2019 and March 31, 2018, the Company granted additional 0.1 million and 0.2 million shares due to performance-based shares attained over target. The aggregate grant-date fair value of performance-based awards granted during the nine months ended March 30, 2019 and March 31, 2018 were estimated to be $6.2 million and $6.1 million, respectively. The majority of performance-based awards vest in equal annual installments over three years based on the attainment of certain performance measures and the employee’s continued service through the vest date. The performance-based awards with market condition were valued using a Monte Carlo simulation.

As of March 30, 2019, $58.5 million of unrecognized stock-based compensation cost related to Full Value Awards remains to be amortized. That cost is expected to be recognized over an estimated amortization period of 1.8 years.