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Stock-Based Compensation (Tables)
 12 Months Ended
Jan. 25, 2015
Share-based Compensation [Abstract]  
Schedule of allocation of stock-based compensation
The following table shows total stock-based compensation expense included in the consolidated statements of operations for fiscal years 2015, 2014 and 2013: 
 
Fiscal Year Ended
(in thousands)
January 25, 2015
 
January 26, 2014
 
January 27, 2013
Cost of sales
$
1,621

 
$
1,664

 
$
1,218

Selling, general and administrative
17,387

 
12,071

 
14,965

Product development and engineering
10,621

 
10,854

 
8,345

Stock-based compensation, pre-tax
$
29,629

 
$
24,589

 
$
24,528

Net change in stock-based compensation capitalized out of (into) inventory
$
111

 
$
36

 
$
(33
)
Schedule of fair value assumptions
The following table summarizes the assumptions used in the Black-Scholes model to determine the fair value of options granted in fiscal years 2015, 2014 and 2013:
 
Fiscal Year Ended
 
January 25, 2015
 
January 26, 2014
 
January 27, 2013
Expected lives, in years
3.0 - 4.4
 
4.1 - 4.7
 
4.4 - 4.6
Estimated volatility
33% - 40%
 
30% - 35%
 
38% - 41%
Dividend yield
—
 
—
 
—
Risk-free interest rate
0.74% - 1.47%
 
0.65% - 1.6%
 
0.66% - 0.73%
Weighted average fair value on grant date
$7.18
 
$8.92
 
$9.52
Schedule of summary of the activity for stock option awards
A summary of the activity for stock option awards for fiscal years 2015, 2014 and 2013 is presented below:
(in thousands, except for per share amounts)
Number
of
Shares
 
Weighted
Average
Exercise
Price
(per share)
 
Aggregate
Intrinsic
Value (1)
 
Aggregate
Unrecognized
Compensation
 
Number of
Shares
Exercisable
 
Weighted
Average
Contractual
Term (years)
Balance at January 29, 2012
3,690

 
$
16.94

 
$
44,435

 
$
4,699

 
2,767
 
 
Options granted
258

 
28.21

 
 
 
 
 
 
 
 
Options exercised
(1,254
)
 
15.70

 
14,508

 
 
 
 
 
 
Options cancelled/forfeited
(115
)
 
25.30

 
 
 
 
 
 
 
 
Balance at January 27, 2013
2,579

 
18.29

 
29,789

 
3,817

 
1,937
 
 
Options granted
376

 
30.62

 
 
 
 
 
 
 
 
Options exercised
(970
)
 
16.61

 
16,052

 
 
 
 
 
 
Options cancelled/forfeited
(50
)
 
26.10

 
 
 
 
 
 
 
 
Balance at January 26, 2014
1,935

 
21.33

 
7,722

 
4,354

 
1,275
 
 
Options granted
426

 
24.87

 
 
 
 
 
 
 
 
Options exercised
(554
)
 
16.04

 
5,446

 
 
 
 
 
 
Options cancelled/forfeited
(44
)
 
26.69

 
 
 
 
 
 
 
 
Balance at January 25, 2015
1,763

 
$
23.70

 
$
7,722

 
$
4,688

 
986
 
 
Exercisable at January 26, 2015
986

 
$
21.03

 
$
6,582

 
 
 
 
 
2.3
Vested and expected to vest after January 26, 2015
1,670

 
$
23.60

 
$
7,498

 
 
 
 
 
3.3

(1)
Represents the difference between the exercise price and the value of the Company’s stock at the time of exercise, for exercised grants. For outstanding awards, represents the difference between the exercise price and the value of the Company’s stock at fiscal year end.
Schedule of stock option exercise price range
The following table summarizes information about stock options outstanding at January 25, 2015:
(number of shares in thousands)
Number
of
Shares
 
Weighted Average
Exercise Price
(per share)
 
Weighted Average
Contractual Term
(years)
Price Range Analysis - Outstanding
 
 
 
 
 
$1.15 - $4.53
4

  
$
4.04

 
2.6
$7.97 - $13.76
24

  
10.57

 
1.0
$15.54 - $23.33
697

  
18.42

 
1.8
$23.56 - $35.17
1,037

  
27.63

 
4.6
Total outstanding
1,762

  
$
23.70

 
3.5
Price Range Analysis - Exercisable
 
 
 
 
 
$1.15 - $4.53
4

  
$
4.04

 
2.6
$7.97 - $13.76
24

  
10.57

 
1.0
$15.54 - $23.33
679

  
18.31

 
1.8
$23.56 - $35.17
279

  
28.80

 
3.7
Total exercisable
986

  
$
21.03

 
2.3
Schedule of unvested stock option awards
The following table summarizes information regarding unvested stock option awards at January 25, 2015:
(in thousands, except for per share amounts)
Number
of
Shares
 
Weighted Average
Exercise Price
(per share)
 
Weighted Average
Grant Date
Fair Value
(per share)
 
Weighted Average
Remaining Expense
Period (years)
 
Total Fair Value
Balance at January 29, 2012
924

 
$
18.47

 
$
6.99

 
1.8
 
$
6,452

Options granted
258

 
28.21

 
9.52

 
 
 
2,457

Options vested
(484
)
 
16.42

 
6.49

 
 
 
3,144

Options forfeited
(56
)
 
21.69

 
7.74

 
 
 
432

Balance at January 27, 2013
642

 
23.66

  
8.31

  
1.9
  
5,333

Options granted
376

 
30.62

  
8.92

  
 
  
3,355

Options vested
(310
)
 
21.58

  
7.77

  
 
  
2,406

Options forfeited
(48
)
 
26.16

  
8.53

  
 
  
422

Balance at January 26, 2014
660

 
28.39

  
8.88

  
2.3
  
5,856

Options granted
426

 
24.87

  
7.18

  
 
 
3,058

Options vested
(275
)
 
27.03

  
8.77

  
 
 
2,414

Options forfeited
(35
)
 
26.32

  
8.02

  
 
 
283

Balance at January 25, 2015
776

 
$
27.09

  
$
8.01

  
2.4
  
$
6,217
Schedule of summary of the activity for restricted stock awards
The following table summarizes the activity for restricted stock awards for fiscal year 2013 (there was no activity in fiscal years 2015 and 2014):
(in thousands, except for per share amounts)
Number of
Shares
 
Weighted Average
Grant Date
Fair Value
(per share)
 
Aggregate
Intrinsic
Value (1)
 
Aggregate
Unrecognized
Compensation
 
Weighted Average
Period Over
Which Expected
to be Recognized
(in years)
Balance at January 29, 2012
32

 
$
14.57

  
 
  
$
81

  
0.1
Restricted stocks granted
—

 
 
  
 
  
 
  
 
Restricted stocks vested
(32
)
 
14.57

  
$
902

  
 
  
 
Restricted stocks cancelled
—

 


  
 
  
 
  
 
Balance at January 27, 2013
—

 
$
—

 
 
 
$
—

 
0
(1)
Represents the value of Semtech stock on the date that the restricted stock vested.
Schedule of summary of the activity for performance unit awards
The following table summarizes the activity for performance units during fiscal years 2015, 2014 and 2013:
 
 
 
Subject to
Share Settlement
 
Subject to
Cash Settlement
 
Weighted 
Average
Grant Date
 
Aggregate
 
Period Over
Which Expected
(in thousands, except for per share amounts)
Total
Units
 
Units
 
Units
 
Recorded
Liability
 
Fair Value
(per share)
 
Unrecognized
Compensation
 
to be Recognized
(in years)
Balance at January 29, 2012
360

 
180

  
180

  
$
6,034

  
$
16.65

  
$
4,829

  
1.0
Performance units granted
144

 
77

 
67

 
 
  
29.30

  
 
 
 
Performance units vested
(144
)
 
(72
)
 
(72
)
 
(4,172
)
  
11.92

 
 
 
 
Performance units cancelled/forfeited
(7
)
 
(4
)
 
(3
)
 


  
29.35

  
 
 
 
Change in liability
 
 
 
 
 
 
2,560

  
 
  
 
 
 
Balance at January 27, 2013
353

 
181

 
172

 
4,422

  
23.50

  
4,754

  
1.1
Performance units granted
186

 
93

 
93

 
 
  
30.82

  
 
 
 
Performance units vested
(114
)
 
(57
)
 
(57
)
 
—

  
16.68

  
 
 
 
Performance units cancelled/forfeited
(49
)
 
(25
)
 
(24
)
 


  
28.82

  
 
 
 
Change in liability
 
 
 
 
 
 
(3,117
)
  
 
 
 
 
 
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
)
 
—

 
23.83

 
 
 
 
Performance units cancelled/forfeited
(113
)
 
(57
)
 
(56
)
 
 
 
28.76

 
 
 
 
Change in liability
 
 
 
 
 
 
586

 
 
 
 
 
 
Balance at January 25, 2015
426

 
211

 
215

 
$
1,891

 
$
27.17

 
$
6,164

 
1.6
Schedule 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 fiscal year 2015 for both Tranche 1 and Tranche 2.

Tranche 1:
 
For the fiscal year ended January 25, 2015
Expected life, in years
1.6

Estimated volatility
34
%
Dividend yield
—
%
Risk-free interest rate
1.5
%
Weighted average fair value on grant date
$
17.26


Tranche 2:
 
For the fiscal year ended January 25, 2015
Expected life, in years
2.1

Estimated volatility
34
%
Dividend yield
—
%
Risk-free interest rate
1.5
%
Weighted average fair value on grant date
$
14.88
Schedule of summary of activity for market performance units
The following table summarizes the activity for the market performance restricted stock units for the fiscal year ended January 25, 2015:
(in thousands, except for per share amounts)
Total Units
 
Weighted Average
Grant Date
Fair Value
(per unit)
 
Aggregate
Unrecognized
Compensation
 
Weighted Average
Period Over
Which Expected
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 January 25, 2015
220

 
$
15.59

 
$
—

 
1.2
Schedule of summary of the activity for employee stock unit awards
The following table summarizes the stock unit award activity for fiscal years 2015, 2014 and 2013:
(in thousands, except per share amount)
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 29, 2012
1,982

 
$
19.06

  
 
  
$
31,472

  
2.4
Stock units granted
1,517

 
26.73

  
 
  
 
  
 
Stock units vested
(699
)
 
18.20

  
$
18,438

  
 
  
 
Stock units forfeited
(242
)
 
23.65

  
 
  
 
  
 
Balance at January 27, 2013
2,558

 
23.41

  
 
  
49,374

  
2.5
Stock units granted
891

 
30.95

  
 
  
 
  
 
Stock units vested
(1,026
)
 
21.34

  
31,861

  
 
  
 
Stock units forfeited
(228
)
 
25.81

  
 
  
 
  
 
Balance at January 26, 2014
2,195

 
27.18

 
 
 
49,563

 
2.5
Stock units granted
929

 
23.90

 
 
 
 
 
 
Stock units vested
(752
)
 
25.55

 
$
18,237

 
 
 
 
Stock units forfeited
(234
)
 
26.29

 
 
 
 
 
 
Balance at January 25, 2015
2,138

 
$
26.43

 
 
 
$
44,506

 
2.4
(1)
Reflects the value of Semtech stock on the date that the stock unit vested.
Schedule of summary of the activity for non-employee directors stock unit awards
The following table summarizes the activity for stock unit awards for fiscal years 2015, 2014 and 2013:
(in thousands, except per share amount)
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 29, 2012
18

 
$
3,873

  
$
27.60

  
$
216

  
0.4
Stock units granted
20

 
 
  
24.46

  
 
  
 
Stock units vested
(18
)
 
 
  
27.60

  
 
  
 
Stock units forfeited
—

 
 
  
 
 
 
  
 
Change in liability
 
 
684

  
 
 
 
  
 
Balance at January 27, 2013
20

 
4,557

 
24.46

  
253

  
0.4
Stock units granted
18

 
 
 
35.17

 
 
 
 
Stock units vested
(20
)
 
 
 
24.46

 
 
 
 
Stock units forfeited
—

 
 
 
 
 
 
 
 
Change in liability
 
 
(576
)
 
 
 
 
 
 
Balance at January 26, 2014
18

 
3,981

 
35.17

 
177

 
0.4
Stock units granted
24

 
 
 
26.59

 
 
 
 
Stock units vested
(18
)
 
 
 
35.17

 
 
 
 
Stock units forfeited
—

 
 
 
 
 
 
 
 
Change in liability
 
 
1,233

 
 
 
 
 
 
Balance at January 25, 2015
24

 
$
5,214

 
$
26.59

 
$
275

 
0.4