COMPENSATION

Stock-based Compensation

The Company recognizes the grant-date fair value of stock-based compensation as compensation expense using the straight-line attribution approach over the service period for which the stock-based compensation is expected to vest. The following table summarizes the amount of stock-based compensation included in the condensed consolidated statements of operations:



	Three Months Ended December 31,					Nine Months Ended December 31,
(in thousands)	2017		2018			2017			2018
Cost of revenues	$	917	$	1,067		$	2,709		$	3,103

Research, development, and engineering	2,049		2,887			6,158			7,877
Selling, general, and administrative	5,063		7,765			17,180			19,729
Stock-based compensation included in operating expenses	7,112		10,652			23,338			27,606
Total stock-based compensation	8,029		11,719			26,047			30,709
Income tax benefit	2,039		(1,624		)	(5,650		)	(7,605		)
Total stock-based compensation, net of tax	$	10,068	$	10,095		$	20,397		$	23,104

Long Term Incentive Plan (LTIP)

Prior to the Company's acquisition of Polycom, certain Polycom employees were granted incentive rights under the Polycom, Inc. 2016 Long-Term Incentive Plan (“2016 LTIP”). As of the date of acquisition, Plantronics assumed the role of payer to participants of the plan through its payroll but is indemnified by Triangle for obligations under the plan. The acquisition accelerated vesting at 75% of awards held by participants in service as of that date and triggered an initial amount due to such participants. The cash purchase price of the acquisition was reduced by this initial obligation. The remaining 25% of awards will vest upon one-year anniversary of the acquisition. Any future payments above the initial obligation under the plan, provided that the vesting requirements are satisfied, require Triangle to fund Plantronics in order to pay participants for any amount in excess of the purchase price reduction.

At July 2, 2018, $7.9 million was recognized in Accrued liabilities assumed from Polycom and was paid in the second quarter of fiscal 2019. The Company recognized an immaterial amount of compensation expense during the third quarter of fiscal 2019 in respect of the awards vesting on the one-year anniversary, which will be payable in the third quarter of fiscal 2020. The amount due as of the acquisition date is based on cash paid to Triangle that was distributed to its parents. Future distributions to its parents of cash made available to Triangle from the release of escrow accounts or the sale of shares issued in the transaction would trigger further compensation due to incentive rights holders under the plan. Plantronics is indemnified for any obligations in excess of the reduction to purchase price, and because such amounts are not probable or estimable, no further amounts have been recognized.