Stock-Based Employee Compensation (Tables)

3 Months Ended

Jul. 02, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Compensation expense

The following table summarizes stock-based compensation expense by line items appearing in the Company’s Condensed Consolidated Statements of Operations:

	Three Months Ended
(in thousands)	July 2, 2017		July 3, 2016
Cost of revenue	$	632	$	779
Research and development	5,963		4,308
Selling, general and administrative	5,225		5,428
Total stock-based compensation expense	$	11,820	$	10,515

Stock option activity

The following is a summary of the Company's stock option activity and related weighted average exercise prices for each category:

	Three Months Ended July 2, 2017
(shares in thousands)	Shares		Price
Beginning stock options outstanding	1,374		$	13.01
Exercised (1)	(89	)	7.09
Canceled	(9	)	24.60
Ending stock options outstanding	1,276		$	13.35
Ending stock options exercisable	985		$	11.94

(1) Upon exercise, the Company issues new shares of common stock.

Nonvested restricted stock units activity

The following table summarizes the Company's RSU activity and related weighted-average exercise prices for each category for the three months ended July 2, 2017:

	Three Months Ended July 2, 2017
(shares in thousands)	Shares		Weighted-average grant date fair value per share
Beginning RSUs outstanding	3,843		$	18.88
Assumed from GigPeak acquisition	328		23.62
Granted	2,030		23.83
Released	(1,137	)	16.65
Forfeited	(137	)	21.21
Ending RSUs outstanding	4,927		$	21.69

Fair value assumptions

The following weighted average assumptions were used to calculate the fair value of the market-based equity award using a Monte Carlo simulation model:

	May 15, 2017			June 15, 2016			June 15, 2015			June 15, 2014
Estimated fair value	$	27.65		$	28.01		$	33.08		$	21.00
Expected volatility	43.36		%	46.90		%	41.22		%	34.6		%
Expected term (in years)	2.88			1.80			1.80			1.80
Risk-free interest rate	1.47		%	0.70		%	0.65		%	0.38		%

Employee stock purchase plan activity

Activity under the Company's ESPP for the three months ended July 2, 2017 is summarized in the following table:

(in thousands, except per share amounts)
Number of shares issued	140
Average issuance price	$	20.12
Number of shares available as of July 2, 2017	3,124