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Stock-Based Compensation (Tables)
6 Months Ended
Mar. 31, 2012
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of weighted-average assumptions used to estimate fair value of stock options granted and shares purchased
The fair values of shares purchased under the Employee Stock Purchase Plan (“ESPP”) for the three and six months ended March 31, 2012 and April 2, 2011, respectively, were estimated using the following weighted-average assumptions:
 
 
Employee Stock Purchase Plan
 
 
 
Three Months Ended
 
Six Months Ended
 
 
 
March 31,
2012
 
April 2,
2011
 
March 31,
2012
 
April 2,
2011
 
Expected life in years
 
0.5

 
0.5

 
0.5

 
0.5
 
Expected volatility
 
54.7
%
 
30.2
%
 
52.1
%
 
30.4
%
 
Risk-free interest rate
 
0.1
%
 
0.2
%
 
0.1
%
 
0.2
%
 
Expected dividends
 

 

 

 

 
Weighted average fair value per share
 
$
14.70

 
$
10.06

 
$
14.81

 
$9.92
 

    
There were no stock options granted during the three and six months ended March 31, 2012 and April 2, 2011.
 
Schedule of weighted average assumptions of performance units
The weighted average fair value for these performance units was $71.59 and was determined using a Monte Carlo simulation model incorporating the following weighted average assumptions:
 
Risk-free interest rate
0.39
%
Volatility
41.8
%
Schedule of stock-based compensation expense
The following table shows total stock-based compensation expense and related tax benefits included in the condensed consolidated statements of operations for the three and six months ended March 31, 2012 and April 2, 2011 (in thousands):
 
Three Months Ended
 
Six Months Ended
 
 
March 31, 2012
 
April 2, 2011
 
March 31, 2012
 
April 2, 2011
 
Cost of sales
$
441

 
$
344

 
$
810

 
$
588

 
Research and development
431

 
363

 
824

 
700

 
Selling, general and administrative
3,288

 
2,454

 
6,548

 
4,796

 
Income tax benefit
(1,265
)
 
(849
)
 
(2,593
)
 
(1,524
)
 
 
$
2,895

 
$
2,312

 
$
5,589

 
$
4,560

 
Schedule of stock option activity
The following is a summary of option activity for our Stock Plans (in thousands, except per share amounts and weighted average remaining contractual term in years):
 
Number of
Shares
 
Weighted
Average
Exercise Price
Per Share
 
Weighted
Average
Remaining
Contractual
Term in Years
 
Aggregate
Intrinsic Value
Outstanding at October 1, 2011
917

 
$
27.80

 
 

 
 

Granted

 

 
 

 
 

Exercised
(177
)
 
27.57

 
 

 
 

Forfeitures
(1
)
 
26.16

 
 

 
 

Expirations

 

 
 

 
 

Outstanding at March 31, 2012
739

 
$
27.85

 
4.0

 
$
22,523

Vested and expected to vest at March 31, 2012
736

 
$
27.80

 
3.9

 
$
22,465

Exercisable at March 31, 2012
554

 
$
27.53

 
3.4

 
$
17,061

Schedule of restricted stock award and restricted stock unit activity
The following table summarizes the activity of our time based and market- performance based restricted stock units for the first six months of fiscal 2012 (in thousands, except per share amounts):

 
Time Based Restricted Stock Units
 
Market-Based Performance Restricted Stock Units
 
Number of
Shares(1)
 
Weighted
Average
Grant Date
Fair Value
 
Number of
Shares(2)
 
Weighted
Average
Grant Date
Fair Value
Nonvested stock at October 1, 2011
404

 
$
34.71

 
101

 
$
49.77

Granted
245

 
53.78

 
95

 
63.85

Vested
(198
)
 
32.65

 
(44
)
 
53.18

Forfeited
(6
)
 
48.11

 

 

Nonvested stock at March 31, 2012
445

 
$
47.30

 
152

 
$
57.55


__________________________________________
(1)Service-based restricted stock vested during each fiscal year.
(2)Performance-based awards and units included at 100% of target goal; under the terms of the awards, the recipient may earn between 0% and 200% of the award.