Stock-Based Compensation (Tables)

9 Months Ended

Oct. 26, 2014

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Allocation Of Stock-Based Compensation

The following table summarizes pre-tax, stock-based compensation expense included in the unaudited condensed consolidated statements of income captions for the three and nine months ended October 26, 2014 and October 27, 2013, respectively.

	Three Months Ended				Nine Months Ended
(in thousands)	October 26, 2014		October 27, 2013		October 26, 2014		October 27, 2013
Cost of sales	$	391	$	413	$	1,109	$	1,146
Selling, general and administrative	4,620		3,449		12,132		11,879
Product development and engineering	2,924		2,967		7,815		8,585
Stock-based compensation, pre-tax	$	7,935	$	6,829	$	21,056	$	21,610
Net change in stock-based compensation capitalized into inventory	$	121	$	96	$	148	$	181

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 and nine months ended October 26, 2014 and October 27, 2013, respectively:

	Three Months Ended		Nine Months Ended
	October 26, 2014	October 27, 2013	October 26, 2014	October 27, 2013
Expected lives, in years	4.3	4.1	3.0 - 4.4	4.1 - 4.7
Estimated volatility	33%	33%	33% - 34%	33% - 35%
Dividend yield	—	—	—	—
Risk-free interest rate	1.3%	1.1%	0.74% - 1.43%	0.65% - 1.3%
Weighted average fair value on grant date	$6.72	$8.15	$7.09	$9.05

Summary Of The Activity For Stock Option Awards

The following table summarizes the activity for stock options for the nine months ended October 26, 2014:

(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	381		24.49
Options exercised	(484	)	$	16.42	$	4,599
Options cancelled/forfeited	(41	)	26.60
Balance at October 26, 2014	1,791		23.21		4,952		$	4,968	1,005
Exercisable at October 26, 2014	1,005		$	20.30	$	4,872				2.4

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 first nine months of fiscal year 2015 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 third quarter of fiscal year 2015. The Company did not grant any restricted stock units that vest according to a market performance condition in the three and nine months ended October 27, 2013.

Tranche 1:

	Nine Months Ended
	October 26, 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:

	Nine Months Ended
	October 26, 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

Summary Of The Activity For Employee Stock Unit Awards

The following table summarizes the employees’ restricted stock unit activity for the nine months ended October 26, 2014:

(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	878		23.80
Restricted stock units vested	(665	)	25.27		$	16,020
Restricted stock units forfeited	(196	)	26.51
Balance at October 26, 2014	2,212		$	26.47			$	49,891	2.6

(1) Reflects the value of Semtech Corporation 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 non-employee directors’ activity for restricted stock units for the nine months ended October 26, 2014:

(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	24				26.59
Restricted stock units vested	(18	)			35.17
Restricted stock units forfeited	—				—
Change in liability			480
Balance at October 26, 2014	24		$	4,461	$	26.59	$	383	0.7

Performance shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary Of The Activity For Performance Unit Awards

The following table summarizes the activity for performance-based restricted stock units for the nine months ended October 26, 2014:

			Subject to Share Settlement		Subject to Cash Settlement				Weighted  Average Grant Date		Aggregate		Weighted Average 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-based units granted	256		128		128				24.74
Performance-based units vested	(93	)	(52	)	(41	)			23.36
Performance-based units cancelled/forfeited	(17	)	(9	)	(8	)			25.51
Change in liability							16
Balance at October 26, 2014	522		259		263		$	1,321	$	27.57	$	6,850	1.6

Market performance shares [Member]

Share-based Compensation Arrangement by Share-based Payment Award [Line Items]

Summary Of The Activity For Performance Unit Awards

The following table summarizes the activity for market performance restricted stock units for the nine months ended October 26, 2014:

		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 October 26, 2014	220	$	15.59	$	2,204	1.2