Share-Based Compensation

3 Months Ended

Apr. 03, 2020

Share-based Payment Arrangement [Abstract]

Note 8: Share-Based Compensation

Total share-based compensation expense related to the Company's RSUs, stock grant awards and the ESPP were recorded within the Consolidated Statements of Operations and Comprehensive Income as follows (in millions):


	Quarters Ended
	April 3, 2020		March 29, 2019
Cost of revenue	$	2.5	$	1.9
Research and development	4.1		3.6
Selling and marketing	2.9		3.8
General and administrative	6.2		10.4
Share-based compensation expense	$	15.7	$	19.7
Related income tax benefits at federal rate of 21%	(3.3)		(4.1)
Share-based compensation expense, net of taxes	$	12.4	$	15.6

As of April 3, 2020, total unrecognized share-based compensation expense, net of estimated forfeitures, related to non-vested RSUs with service, performance and market conditions was $132.5 million, which is expected to be recognized over a weighted-average period of 1.7 years. There were no stock options exercised during the quarter ended April 3, 2020. Upon option exercise, vesting of RSUs, stock grant awards or completion of a purchase under the ESPP, the Company issues new shares of common stock. The annualized pre-vesting forfeiture rate for RSUs was estimated to be 5% for the quarters ended April 3, 2020 and March 29, 2019.

Shares Available

As of April 3, 2020 and December 31, 2019, there was an aggregate of 18.1 million and 25.5 million shares of common stock, respectively, available for grant under the Amended and Restated SIP. As of April 3, 2020 and December 31, 2019, there was an aggregate of 4.3 million and 4.8 million shares of common stock, respectively, available for issuance under the ESPP.

Restricted Stock Units

RSUs generally vest ratably over three years for awards with service condition and over two years for awards with performance or market conditions, or a combination thereof, and are settled in shares of the Company's common stock upon vesting. A summary of the RSU transactions for the quarter ended April 3, 2020 is as follows (in millions, except per share data):


	Number of Shares	Weighted-Average Grant Date Fair Value Per Share
Non-vested RSUs at December 31, 2019	8.9	$	20.84
Granted	4.8	18.94

Released	(2.7)	18.31
Forfeited	(0.1)	20.69
Non-vested RSUs at April 3, 2020	10.9	20.63