Stock-Based Compensation

6 Months Ended

Jul. 04, 2015

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

Stock-Based Compensation:

Total stock-based compensation expense included in our Consolidated Statements of Operations was as follows:



	Three Months Ended				Six Months Ended
(In thousands)	July 4, 2015		June 28, 2014		July 4, 2015		June 28, 2014
Line item:
Cost of products sold	$	398	$	211	$	638	$	377
Research and development	2,346		1,354		3,855		2,388
Selling, general and administrative	2,235		1,755		3,870		3,645
Acquisition related charges	—		—		3,891		—
Total stock-based compensation	$	4,979	$	3,320	$	12,254	$	6,410

During the first and seconds quarters of 2015, we granted approximately 306,000 stock options and 91,500 stock options and RSUs, respectively, with a market condition to certain executives. The options and RSUs have a two year vesting and vest between 0% and 200% of the target amount, based on the Company's relative Total Shareholder Return (TSR) when compared to the TSR of a component of companies of the PHLX Semiconductor Sector Index over a two year period. The fair values of the options were determined and fixed on the date of grant using a lattice-based option-pricing valuation model, which incorporates a Monte-Carlo simulation, and considered the likelihood that we would achieve the market condition. TSR is a measure of stock price appreciation plus dividends paid, if any, in the performance period. As of July 4, 2015, 397,500 market-based stock options were outstanding. In the second quarter of 2015, we incurred stock compensation expense of $0.3 million related to these market condition awards.

Total stock-based compensation for the six months ended July 4, 2015 was $12.3 million of which $3.9 million was paid during the period.