XML 55 R24.htm IDEA: XBRL DOCUMENT v2.4.0.8
Stock-Based Compensation (Tables)
 3 Months Ended
Apr. 27, 2014
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Allocation Of Stock-Based Compensation
The following table shows total pre-tax, stock-based compensation expense included in the unaudited consolidated condensed statements of income for the three months ended April 27, 2014 and April 28, 2013.
 
 
Three Months Ended
(in thousands)
April 27,
2014
 
April 28,
2013
Cost of sales
$
363

 
$
328

Selling, general and administrative
4,065

 
4,882

Product development and engineering
2,419

 
3,416

Stock-based compensation, pre-tax
$
6,847

 
$
8,626

Net change in stock-based compensation capitalized into inventory
$
(9
)
 
$
77
Summary Of Fair Value Assumptions, Stock Options
The following table summarizes the assumptions used in the Black-Scholes model to determine the fair value of stock options granted in the three months ended April 27, 2014 and April 28, 2013:
 
 
Three Months Ended
 
April 27,
2014
 
April 28,
2013
Expected lives, in years
3.0 - 4.4
 
4.2 - 4.7
Estimated volatility
33% - 34%
 
34% - 35%
Dividend yield
—
 
—
Risk-free interest rate
1.26% - 1.31%
 
0.65% - 0.69%
Weighted average fair value on grant date
$7.22
 
$9.04
Summary Of The Activity For Stock Option Awards
A summary of the activity for stock option awards during the first three months of fiscal year 2015 is presented below:
 
 
 
 
 
 
 
 
 
 
 
 
(in thousands, except for per share amounts)
Number
of
Shares
 
Weighted
Average
Exercise
Price
(per share)
 
Aggregate
Intrinsic
Value
 
Aggregate
Unrecognized
Compensation
 
Number of
Shares
Exercisable
 
Weighted
Average
Contractual
Term
(in years)
Balance at January 26, 2014
1,935

 
$
21.33

 
$
7,722

 
$
4,354

 
1,275
 
 
Options granted
201

 
24.74

 
 
 
 
 
 
 
 
Options exercised
(103
)
 
17.31

 
768

 
 
 
 
 
 
Options cancelled/forfeited
(26
)
 
26.61

 
 
 
 
 
 
 
 
Balance at April 27, 2014
2,007

 
$
21.81

 
$
8,266

 
$
4,971

 
1,322
 
 
Exercisable at April 27, 2014
1,322

 
$
18.86

 
$
8,094

 
 
 
 
 
2.3
Summary Of The Activity For Performance Unit Awards
The following table summarizes the activity for performance units for the first three months of fiscal year 2015:
 
 
 
 
Subject to
Share Settlement
 
Subject to
Cash Settlement
 
Weighted 
Average
Grant Date
 
Aggregate
 
Period Over
Which Expected
(in thousands, except for per unit amounts)
Total
Units
 
Units
 
Units
 
Recorded
Liability
 
Fair Value
(per unit)
 
Unrecognized
Compensation
 
to be Recognized
(in years)
Balance at January 26, 2014
376

 
192

 
184

 
$
1,305

 
$
28.50

 
$
3,893

 
1.3
Performance units granted
256

 
128

 
128

 
 
 
24.74

 
 
 
 
Performance units vested
(93
)
 
(52
)
 
(41
)
 
 
 
23.36

 
 
 
 
Performance units cancelled/forfeited
(17
)
 
(9
)
 
(8
)
 
 
 
25.51

 
 
 
 
Change in liability
 
 
 
 
 
 
(560
)
 
 
 
 
 
 
Balance at April 27, 2014
522

 
259

 
263

 
$
745

 
$
27.57

 
$
8,706

 
2.1
Schedule Of Fair Value Assumptions, Market Performance Units
The following tables summarize the assumptions used in the Monte Carlo simulation model to determine the fair value of restricted stock units granted in the three months ended April 27, 2014 for both Tranche 1 and Tranche 2. The Company did not grant any restricted stock units that vest according to a market performance condition in the three months ended April 28, 2013.
Tranche 1:
 
Three Months Ended
 
April 27, 2014
Expected lives, in years
1.6
Estimated volatility
34%
Dividend yield
—
Risk-free interest rate
1.50%
Fair value on grant date
$17.26
Tranche 2:
 
Three Months Ended
 
April 27, 2014
Expected lives, in years
2.1
Estimated volatility
34%
Dividend yield
—
Risk-free interest rate
1.50%
Fair value on grant date
$14.88
Schedule Of the Activity for Market Performance Unit Awards
 
 
 
Weighted 
Average
Grant Date
 
Aggregate
 
Period Over
Which Expected
(in thousands, except for per unit amounts)
Total
Units
 
Fair Value
(per unit)
 
Unrecognized
Compensation
 
to be Recognized
(in years)
Balance at January 26, 2014
—

 
$
—

 
$
—

 
0.0
Market performance units granted
220

 
15.59

 
 
 
 
Market performance units vested
—

 
—

 
 
 
 
Market performance units cancelled/forfeited
—

 
—

 
 
 
 
Balance at April 27, 2014
220

 
$
15.59

 
$
3,074

 
1.7
Summary Of The Activity For Employee Stock Unit Awards
The following table summarizes the restricted stock unit award activity for the first three months of fiscal year 2015:
(in thousands, except for per unit amounts)
Number of
Units
 
Weighted Average
Grant Date
Fair Value
(per unit)
 
Aggregate
Intrinsic
Value (1)
 
Aggregate
Unrecognized
Compensation
 
Weighted Average
Period Over
Which Expected
to be Recognized
(in years)
Balance at January 26, 2014
2,195

 
$
27.18

 
 
 
$
49,563

 
2.5
Restricted stock units granted
256

 
24.74

 
 
 
 
 
 
Restricted stock units vested
(253
)
 
27.25

 
$
6,444

 
 
 
 
Restricted stock units forfeited
(125
)
 
26.21

 
 
 
 
 
 
Balance at April 27, 2014
2,073

 
$
26.93

 
 
 
$
48,052

 
2.5

(1)
Reflects the value of Semtech stock on the date that the restricted stock unit vested.
Summary Of The Activity For Non-Employee Directors Stock Unit Awards
The following table summarizes the activity for stock unit awards for the first three months of fiscal year 2015:
 
(in thousands, except for per unit amounts)
Number of
Units
 
Recorded
Liability
 
Weighted Average
Grant Date
Fair Value
(per unit)
 
Aggregate
Unrecognized
Compensation
 
Period Over
Which Expected
to  be Recognized
(in years)
Balance at January 26, 2014
18

 
$
3,981

 
$
35.17

 
$
177

 
0.4
Restricted stock units granted
—

 
 
 
—

 
 
 
 
Restricted stock units vested
—

 
 
 
—

 
 
 
 
Restricted stock units forfeited
—

 
 
 
—

 
 
 
 
Change in liability
 
 
285

 
 
 
 
 
 
Balance at April 27, 2014
18

 
$
4,266

 
$
35.17

 
$
77

 
0.2