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Equity Compensation
 12 Months Ended
Mar. 29, 2025
Share-Based Payment Arrangement, Noncash Expense [Abstract]  
Equity Compensation Equity Compensation
The Company is currently granting equity awards from the 2018 Long Term Incentive Plan (the “Plan”), which was approved by stockholders in August 2018 and subsequently amended and restated on July 26, 2024. The Plan provides for granting of stock options, restricted stock awards, restricted stock units, performance awards, and bonus stock awards, or any combination of the foregoing.  To date, the Company has granted stock options, restricted stock units, and performance awards (including market stock units and performance stock units). Each stock option granted reduces the total shares available for grant under the Plan by one share. Each full value award granted (including restricted stock awards, restricted stock units, market stock units, and performance stock units) reduces the total shares available for grant under the Plan by 1.5 shares. Stock options generally vest between one and four years, and are exercisable for a period of ten years from the date of grant.  Restricted stock units are generally subject to vesting from one to three years, depending upon the terms of the grant. Market stock units are subject to a vesting schedule of three years. Performance stock units are generally subject to vesting from one to three years, depending upon the terms of the grant.
The following table summarizes the activity in total shares available for grant (in thousands):
 
 Shares
 Available for
 Grant
Balance, March 26, 20222,617 
Shares added2,090 
Granted(2,536)
Forfeited303 
Balance, March 25, 20232,474 
Shares added— 
Granted(1,813)
Forfeited317 
Balance, March 30, 2024978 
Shares added2,670 
Granted(1,322)
Forfeited214 
Balance, March 29, 20252,540 
Stock-based Compensation Expense

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
 202520242023
Cost of sales$1,332 $1,403 $1,270 
Research and development59,184 63,678 57,312 
Sales, general and administrative23,630 24,190 23,059 
Effect on pre-tax income84,146 89,271 81,641 
Income Tax Benefit(19,152)(20,646)(15,184)
Total stock-based compensation expense (net of taxes)64,994 68,625 66,457 
Stock-based compensation effects on basic earnings per share$1.22 $1.26 $1.19 
Stock-based compensation effects on diluted earnings per share1.18 1.22 1.16 

The total stock-based compensation expense included in the table above and which is attributable to restricted stock units, performance based stock units, and market stock units was $80.7 million, $85.1 million, $78.0 million, for fiscal years 2025, 2024, and 2023, respectively. Stock-based compensation expense is presented within operating activities in the consolidated statement of cash flows.
As of March 29, 2025, there was $138.7 million of compensation costs related to non-vested stock options, restricted stock units, market stock units, and performance stock units granted under the Company’s equity incentive plans not yet recognized in the Company’s financial statements. The unrecognized compensation cost is expected to be recognized over a weighted average period of 1.48 years for stock options, 1.45 years for restricted stock units, 1.92 years for market stock units, and 2.16 years for performance stock units.
In addition to the income tax benefit of stock-based compensation expense shown in the table above, the Company recognized excess tax benefits of $9.4 million, $0.2 million and $1.4 million in fiscal years 2025, 2024, and 2023 respectively.


Stock Options
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 29, 2025March 30, 2024March 25, 2023
Expected stock price volatility
35.70%
34.53% - 39.92%
35.18% - 46.50%
Risk-free interest rate
4.33%
3.99% - 4.11%
2.47% - 3.96%
Expected term (in years)
3.73
3.85 - 4.07
4.04 - 4.33
The Black-Scholes valuation calculation requires us to estimate key assumptions such as stock price volatility, expected term, risk-free interest rate and dividend yield. The expected stock price volatility is based upon implied volatility from traded options on our stock in the marketplace. The expected term of options granted is derived from an analysis of historical exercises and remaining contractual life of stock options, and represents the period of time that options granted are expected to be outstanding after becoming vested. The risk-free interest rate reflects the yield on zero-coupon U.S. Treasury securities for a period that is commensurate with the expected term assumption. Finally, we have never paid cash dividends, do not currently intend to pay cash dividends, and thus have assumed a zero percent dividend yield.
Using the Black-Scholes option valuation model, the weighted average estimated fair values of stock options granted in fiscal years 2025, 2024, and 2023, were $54.04, $39.61, and $42.37, respectively.
During fiscal years 2025, 2024, and 2023, we received a net $15.4 million, $3.3 million, and $10.1 million, respectively, from the exercise of 0.3 million, 0.1 million, and 0.2 million, respectively, stock options granted under the Company’s Stock Plan.
The total intrinsic value of stock options exercised during fiscal year 2025, 2024, and 2023, was $14.7 million, $2.8 million, and $11.4 million, respectively. Intrinsic value represents the difference between the market value of the Company’s common stock at the time of exercise and the strike price of the stock option.
Additional information with respect to stock option activity is as follows (in thousands, except per share amounts):
 
 Outstanding Options
NumberWeighted
Average
Exercise Price
Balance, March 26, 2022820 $57.75 
Options granted143 96.33 
Options exercised(225)45.10 
Options forfeited(18)71.14 
Options expired— — 
Balance, March 25, 2023720 $69.03 
Options granted132 92.69 
Options exercised(66)50.39 
Options forfeited— — 
Options expired— — 
Balance, March 30, 2024786 $74.56 
Options granted4 129.24 
Options exercised(257)59.93 
Options forfeited(29)91.26 
Options expired— — 
Balance, March 29, 2025504 $81.53 
Additional information with regards to outstanding options that are vesting, expected to vest, or exercisable as of March 29, 2025 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 vest495 $81.27 6.63$9,404 
Exercisable337 $74.72 5.87$8,497 
In accordance with U.S. GAAP, stock options outstanding that are expected to vest are presented net of estimated future option forfeitures, which are estimated as compensation costs are recognized. Options with a fair value of $4.3 million, $4.2 million, and $3.0 million, became vested during fiscal years 2025, 2024, and 2023, respectively.
The following table summarizes information regarding outstanding and exercisable options as of March 29, 2025 (in thousands, except per share amounts):
 
 Options OutstandingOptions Exercisable
Weighted Average
Remaining
Contractual Life		Weighted
Average Exercise		NumberWeighted
Average
Range of Exercise PricesNumber(years)PriceExercisableExercise Price
$31.25 - $68.43
88 3.32$44.27 88 $44.27 
$68.56 - $78.00
95 5.4474.51 95 74.51 
$79.16 - $88.00
111 7.0085.69 80 85.76 
$93.24
113 8.8793.24 28 93.24 
$102.37
93 7.86102.37 46 102.37 
$129.24
4 9.33129.24 — — 
504 6.66$81.53 337 $74.72 
As of March 29, 2025, March 30, 2024, and March 25, 2023, the number of options exercisable was 0.3 million, 0.5 million, and 0.5 million respectively.
Restricted Stock Units
Restricted stock units (“RSUs”) are valued as of the grant date and amortized over the requisite vesting period. Generally, RSUs vest 100 percent on the first to third anniversary of the grant date depending on the vesting specifications. A summary of the activity for RSUs in fiscal year 2025, 2024, and 2023 is presented below (in thousands, except per share amounts):
 
SharesWeighted
Average
Fair Value
March 26, 20222,576 $74.45 
Granted1,574 75.97 
Vested(877)70.02 
Forfeited(183)75.58 
March 25, 20233,090 $76.42 
Granted1,099 71.12 
Vested(879)73.54 
Forfeited(211)75.70 
March 30, 20243,099 $75.41 
Granted711 105.87 
Vested(1,163)81.45 
Forfeited(115)78.41 
March 29, 20252,532 $81.04 

The aggregate intrinsic value of RSUs outstanding as of March 29, 2025, March 30, 2024, and March 25, 2023 was $252.0 million, $286.9 million, and $326.3 million, respectively. Intrinsic value is calculated using the closing stock price on the last day of trading in fiscal 2025. Additional information with regards to outstanding RSUs that are expected to vest as of March 29, 2025, is as follows (in thousands, except year and per share amounts):
 
SharesWeighted
Average
Fair Value		Weighted Average
Remaining Contractual
Term (years)
Expected to vest2,396 $80.75 1.43
RSUs outstanding that are expected to vest are presented net of estimated future forfeitures, which are estimated as compensation costs are recognized. RSUs with a fair value of $94.7 million, $64.6 million, and $61.4 million became vested during fiscal years 2025, 2024, and 2023, respectively. The majority of RSUs that vested in 2025, 2024 and 2023 were net settled such that the Company withheld a portion of the shares to satisfy tax withholding requirements. In fiscal years 2025, 2024, and 2023 the vesting of RSUs reduced the authorized and unissued share balance by approximately 1.2 million, 0.9 million, and 0.9 million, respectively. Total shares withheld and subsequently retired out of the Plan were approximately 0.3 million, 0.3 million, and 0.2 million and total payments for the employees’ tax obligations to taxing authorities were $36.4 million, $18.9 million, and $18.0 million for fiscal years 2025, 2024, and 2023, respectively.
Market Stock Units
Market stock units (“MSUs”) granted prior to February 2024 vest based upon the relative total shareholder return (“TSR”) of the Company as compared to that of the Philadelphia Semiconductor Index, while MSUs granted after February 2024 vest based on the TSR of the Company as compared to that of the Russell 3000 Index (collectively referred to as the "Indexes". The requisite service period for these MSUs is also the vesting period, which is three years. The fair value of each MSU granted was determined on the date of grant using the Monte Carlo simulation, which calculates the present value of the potential outcomes of future stock prices of the Company and the Indexes over the requisite service period. The fair value is based on the risk-free rate of return, the volatility of the stock price of the Company and the Indexes, the correlation of the stock price of the Company with the Indexes, and the dividend yield.
The fair values estimated from the Monte Carlo simulation were calculated using a dividend yield of zero and the following additional assumptions:
 
 Fiscal Years Ended
March 29,
2025		March 30,
2024		March 25,
2023
Expected stock price volatility
39.34% - 41.61%
34.53%
35.18% - 46.50%
Risk-free interest rate
3.97% - 4.15%
4.12%
2.67% - 3.92%
Expected term (in years)3.003.003.00

Using the Monte Carlo simulation, the weighted average estimated fair value of the MSUs granted in fiscal year 2025 was $151.8. A summary of the activity for MSUs in fiscal year 2025, 2024, and 2023 is presented below (in thousands, except per share amounts):
 
SharesWeighted
Average
Fair Value
March 26, 202285 $95.75 
Granted38 135.87 
Vested(10)87.43 
Forfeited(24)94.80 
March 25, 202389 $113.83 
Granted35 141.48 
Vested(9)83.96 
Forfeited(14)83.96 
March 30, 2024101 $130.46 
Granted59 151.80 
Vested(47)109.18 
Forfeited(9)128.36 
March 29, 2025104 $152.23 
The aggregate intrinsic value of MSUs outstanding as of March 29, 2025, March 30, 2024, and March 25, 2023 was $10.4 million, $9.4 million, and $9.3 million, respectively. Intrinsic value is calculated using the closing stock price on the last day of trading in fiscal 2025. Additional information with regard to outstanding MSUs that are expected to vest as of March 29, 2025 is as follows (in thousands, except year and per share amounts):

 
SharesWeighted
Average
Fair Value		Weighted Average
Remaining Contractual
Term (years)
Expected to vest97 $151.73 1.89
MSUs with a fair value of $5.1 million, $0.8 million, and $0.8 million became vested during fiscal year 2025, 2024, and 2023 respectively.
Performance Stock Units
Performance stock units ("PSUs") consist of performance-based restricted stock units subject to a three-fiscal-year performance period, with annual vesting based on performance achieved each fiscal year. The number of shares earned is based on the Company’s strategic revenue during fiscal year 2026 and the year-over-year growth of such strategic revenue over fiscal years 2027 and 2028 relative to goals established by the Compensation Committee. PSUs are valued at the Company's closing stock price on the date of grant.
A summary of the activity for PSUs in fiscal year 2025 is presented below (in thousands, except per share amounts):

SharesWeighted Average Fair Value
March 30, 2024— $— 
Granted109 104.41 
Vested— — 
Forfeited— — 
March 29, 2025109 $104.41 


The aggregate intrinsic value of PSUs outstanding as of March 29, 2025 was $10.9 million, which is calculated using the closing stock price on the last day of trading in fiscal 2025. Additional information with regard to outstanding PSUs that are expected to vest as of March 29, 2025 is as follows (in thousands, except year and per share amounts):

 
SharesWeighted Average Fair ValueWeighted Average Remaining Contractual Term (years)
Expected to vest100 $104.41 2.14
No PSUs vested during fiscal year 2025.