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Equity Plans
3 Months Ended
Nov. 26, 2021
Compensation And Retirement Disclosure [Abstract]  
Equity Plans

Equity Plans

 

As of November 26, 2021, 4.3 million shares of our ordinary shares were available for future awards under our equity plans.

 

Restricted Share Awards and Restricted Share Units Awards (“Restricted Awards”)

 

Aggregate Restricted Award activity was as follows:

 

Three months ended

 

November 26,

2021

 

 

November 27,

2020

 

 

 

 

 

 

 

 

 

 

Awards granted

 

 

266

 

 

 

548

 

Weighted average grant-date fair value per share

 

$

56.04

 

 

$

20.81

 

Aggregate vesting-date fair value of shares vested

 

$

11,956

 

 

$

8,370

 

 

Restricted Awards include grants with service, performance and/or market conditions with restrictions that generally lapse after a three to four-year service period. Awards with market conditions are based on either the Company’s share price or the Company’s total shareholder return (“TSR”) relative to companies included in a market index. For awards with market conditions, the number of shares that will vest will vary between 0% and 200% of target amounts, depending upon the Company’s achievement level over the specified performance period. The fair value of awards with market conditions were fixed at the grant date using a Monte Carlo simulation analysis and were based on significant inputs not observable in the market.

 

In May 2020, we granted a performance-based restricted share award that had both service and performance conditions. As of August 28, 2020, we deemed it was probable that the service condition would be met and the attainment of the performance condition for this award was probable. On October 20, 2020, we modified this award, as well as another time-based award, each for our former CEO, to accelerate the remaining service-based vesting requirements such that they became fully vested as of the acceleration date. These modifications resulted in additional share-based compensation expense in the first quarter of 2021 of $5.8 million.

 

As of November 26, 2021, total unrecognized compensation costs for unvested Restricted Awards was $93.1 million, which was expected to be recognized over a weighted average period of 2.95 years.

 

Share Options

 

Share option activity and assumptions were as follows:

 

Three months ended

 

November 27,

2020

 

 

 

 

 

 

Share options granted

 

 

250

 

Weighted average grant-date fair value per share

 

$

13.30

 

Average expected term in years

 

 

6.25

 

Weighted-average expected volatility

 

 

52.07

%

Weighted-average risk-free interest rate

 

 

0.49

%

Expected dividend yield

 

 

—

 

 

As of November 26, 2021, total unrecognized compensation costs for unvested options was $5.3 million, which was expected to be recognized over a weighted average period of 1.96 years.

 

Employee Share Purchase Plan

 

Under our employee share purchase plan (“ESPP”), employees purchased 67 thousand ordinary shares for $3.0 million in the first quarter of 2022 and 87 thousand shares for $1.8 million in the first quarter of 2021.

 

Share-Based Compensation Expense

 

Three months ended

 

November 26,

2021

 

 

November 27,

2020

 

 

 

 

 

 

 

 

 

 

Share-based compensation expense by caption:

 

 

 

 

 

 

 

 

Cost of sales

 

$

1,731

 

 

$

838

 

Research and development

 

 

1,540

 

 

 

778

 

Selling, general and administrative

 

 

6,504

 

 

 

9,472

 

 

 

$

9,775

 

 

$

11,088

 

 

Income tax benefits related to the tax deductions for share-based awards are recognized only upon the settlement of the related share-based awards. Consistent with our treatment of income or loss from our U.S. operations, our income tax provision in the first quarters of 2022 and 2021 reflects de minimis income tax benefits for share-based compensation expense.