Equity Compensation (Tables)

12 Months Ended

Mar. 30, 2019

Summary of Activity in Total Stock Available for Grant

The following table summarizes the activity in total shares available for grant (in thousands):

	Shares
	Available for
	Grant
Balance, March 26, 2016	6,287
Shares added	—
Granted	(1,719	)
Forfeited	124
Balance, March 25, 2017	4,692
Shares added	—
Granted	(1,755	)
Forfeited	128
Balance, March 31, 2018	3,065
Shares added	2,509
Granted	(2,371	)
Forfeited	120
Balance, March 30, 2019	3,323

Summary of Effect of Stock-Based Compensation on Cost of Goods Sold

The following table summarizes the effects of stock-based compensation on cost of goods sold, research and development, sales, general and administrative, pre-tax income, and net income after taxes for shares granted under the Plan (in thousands, except per share amounts):

	Fiscal Year
	2019			2018			2017
Cost of sales	$	877		$	1,474		$	1,071
Research and development	29,115			26,137			21,186
Sales, general and administrative	19,697			21,130			17,336
Effect on pre-tax income	49,689			48,741			39,593
Income Tax Benefit	(5,748		)	(5,953		)	(12,482		)
Total stock-based compensation expense (net of taxes)	43,941			42,788			27,111
Stock-based compensation effects on basic earnings per share	$	0.73		$	0.67		$	0.43
Stock-based compensation effects on diluted earnings per share	0.71			0.65			0.41

Schedule of Fair Value of Stock Option Grants

We estimate the fair value of each stock option on the date of grant using the Black-Scholes option-pricing model using a dividend yield of zero and the following additional assumptions:

	March 30, 2019	March 31, 2018		March 25, 2017
Expected stock price volatility	38.00-38.14 %	37.36	%	47.66	%
Risk-free interest rate	2.57-2.94 %	1.67	%	1.13	%
Expected term (in years)	3.12-3.73	3.03		2.79

Schedule of Stock Option Activity

Additional information with respect to stock option activity is as follows (in thousands, except per share amounts):

	Outstanding Options
	Number		Weighted Average Exercise Price
Balance, March 26, 2016	2,925		$	17.96
Options granted	215		54.65
Options exercised	(1,382	)	11.87
Options forfeited	—		—
Options expired	—		—
Balance, March 25, 2017	1,758		$	27.25
Options granted	216		55.72
Options exercised	(234	)	18.84
Options forfeited	—		—
Options expired	—		—
Balance, March 31, 2018	1,740		$	31.91
Options granted	280		40.41
Options exercised	(108	)	15.03
Options forfeited	(38	)	49.62
Options expired	(9	)	55.01
Balance, March 30, 2019	1,865		$	33.68

Summary of Outstanding Options Vesting, Expected to Vest, or Exercisable

Additional information with regards to outstanding options that are vesting, expected to vest, or exercisable as of March 30, 2019 is as follows (in thousands, except years and per share amounts):

	Number of Options	Weighted Average Exercise price		Weighted Average Remaining Contractual Term (years)	Aggregate Intrinsic Value
Vested and expected to vest	1,858	$	33.64	5.64	$	20,786
Exercisable	1,322	$	28.97	4.49	$	19,733

Summary of Outstanding and Exercisable Options

The following table summarizes information regarding outstanding and exercisable options as of March 30, 2019 (in thousands, except per share amounts):

	Options Outstanding				Options Exercisable
		Weighted Average Remaining Contractual Life	Weighted Average Exercise		Number	Weighted Average
Range of Exercise Prices	Number	(years)	Price		Exercisable	Exercise Price
$5.00 - $16.25	345	1.83	$	14.32	345	$	14.32
$16.28 - $23.34	326	4.85	21.78		326	21.78
$23.80 - $32.29	309	6.28	31.23		255	31.22
$33.38 - $38.99	303	5.45	38.27		210	38.37
$41.49 - $54.65	387	8.23	48.21		118	54.65
$55.72 - $55.72	195	7.93	55.72		68	55.72
	1,865	5.65	$	33.68	1,322	$	28.97

Summary of Restricted Stock Units Vesting or Expected to Vest

Additional information with regards to outstanding restricted stock units that are expected to vest as of March 30, 2019, is as follows (in thousands, except year and per share amounts):

	Shares	Weighted Average Fair Value		Weighted Average Remaining Contractual Term (years)
Expected to vest	2,738	$	48.07	1.63

Summary of Monte Carlo Simulation Assumptions for Market Stock Units

The fair values estimated from the Monte Carlo simulation were calculated using a dividend yield of zero and the following additional assumptions:

	Year Ended
	March 30, 2019	March 31, 2018
Expected stock price volatility	38.00-38.14 %	37.36	%
Risk-free interest rate	2.62-3.01 %	1.74	%
Expected term (in years)	3.00	3.00

Schedule of Market Stock Units Activity

A summary of the activity for MSU’s in fiscal year 2019, 2018, and 2017 is presented below (in thousands, except year and per share amounts):

	Shares		Weighted Average Fair Value
March 26, 2016	125		$	34.85
Granted	55		75.58
Vested	—		—
Forfeited	—		—
March 25, 2017	180		$	47.30
Granted	89		47.26
Vested	(70	)	22.00
Forfeited	—		—
March 31, 2018	199		$	56.16
Granted	68		53.13
Vested	—		—
Forfeited	(101	)	43.41
March 30, 2019	166		$	62.77

Summary of Outstanding MSUs Expected to Vest

Additional information with regard to outstanding MSU’s that are expected to vest as of March 30, 2019 is as follows (in thousands, except year and per share amounts):

	Shares	Weighted Average Fair Value		Weighted Average Remaining Contractual Term (years)
Expected to vest	160	$	62.91	1.64

Restricted Stock Units (RSUs)

Summary of Restricted Stock and Restricted Stock Units Activity

A summary of the activity for RSU’s in fiscal year 2019, 2018, and 2017 is presented below (in thousands, except year and per share amounts):

	Shares		Weighted Average Fair Value
March 26, 2016	3,163		$	26.14
Granted	947		52.40
Vested	(1,032	)	24.67
Forfeited	(83	)	28.40
March 25, 2017	2,995		34.91
Granted	936		55.79
Vested	(1,077	)	24.79
Forfeited	(85	)	41.09
March 31, 2018	2,769		45.70
Granted	1,416		40.57
Vested	(1,176	)	33.65
Forfeited	(175	)	48.15
March 30, 2019	2,834		$	47.99