Equity Plans

9 Months Ended

May 27, 2022

Share-based Payment Arrangement [Abstract]

Equity Plans

Equity Plans

As of May 27, 2022, 7.7 million 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				Nine Months Ended
	May 27, 2022		May 28, 2021		May 27, 2022		May 28, 2021
Awards granted	935		3,079		1,581		4,513
Weighted average grant-date fair value per share	$	24.25	$	19.97	$	25.96	$	17.65
Aggregate vesting-date fair value of shares vested	$	24,099	$	7,281	$	42,326	$	18,689

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 to our former CEO 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 previously granted to 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 May 27, 2022, total unrecognized compensation costs for unvested Restricted Awards was $99.2 million, which was expected to be recognized over a weighted average period of 2.76 years.

Share Options

Share option activity and assumptions were as follows:

Nine Months Ended	May 28, 2021
Share options granted	500
Weighted average grant-date fair value per share	$	6.65
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 May 27, 2022, total unrecognized compensation costs for unvested options was $3.6 million, which was expected to be recognized over a weighted average period of 1.88 years.

Employee Share Purchase Plan

Under our employee share purchase plan (“ESPP”), employees purchased 307 thousand ordinary shares for $6.5 million in the first nine months of 2022 and 353 thousand ordinary shares for $3.6 million in the first nine months of 2021.

Share-Based Compensation Expense

	Three Months Ended				Nine Months Ended
	May 27, 2022		May 28, 2021		May 27, 2022		May 28, 2021
Share-based compensation expense by caption:
Cost of sales	$	1,724	$	1,166	$	5,103	$	2,807
Research and development	1,679		1,468		4,778		3,055
Selling, general and administrative	7,144		5,747		20,414		19,005
	$	10,547	$	8,381	$	30,295	$	24,867

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 2022 and 2021 reflects de minimis income tax benefits for share-based compensation expense.