XML 42 R31.htm IDEA: XBRL DOCUMENT v3.5.0.2
Share-Based Compensation (Tables)
9 Months Ended
Oct. 30, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Allocation Of Stock-Based Compensation
The following table summarizes pre-tax, share-based compensation included in the unaudited condensed consolidated statements of income for the three and nine months ended October 30, 2016 and October 25, 2015.
 
 
Three Months Ended
 
Nine Months Ended
(in thousands)
October 30, 2016
 
October 25, 2015
 
October 30, 2016
 
October 25, 2015
Revenue offset
$
3,669

 
$

 
$
3,669

 
$

Cost of sales
360

 
197

 
1,108

 
1,071

Selling, general and administrative
3,965

 
2,933

 
12,001

 
6,006

Product development and engineering
1,401

 
1,987

 
4,420

 
6,320

Share-based compensation
$
9,395

 
$
5,117

 
$
21,198

 
$
13,397

Net change in share-based compensation capitalized into inventory
$
124

 
$
(233
)
 
$
106

 
$
45

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 30, 2016 and October 25, 2015, respectively:
 
 
Three Months Ended
 
Nine Months Ended
 
October 30, 2016
 
October 25, 2015
 
October 30, 2016
 
October 25, 2015
Expected lives, in years
4.2
 
4.2
 
4.1 - 4.5
 
4.2 - 4.3
Estimated volatility
32%
 
32%
 
32%
 
29% - 32%
Dividend yield
 
 
 
Risk-free interest rate
1.0%
 
1.3%
 
1.1% - 1.3%
 
1.24% - 1.29%
Weighted average fair value on grant date
$7.10
 
$4.80
 
$5.67
 
$6.09
Summary Of The Activity For Stock Option Awards
The following table summarizes the activity for stock options for the nine months ended October 30, 2016:
 
 
 
 
 
 
 
 
 
 
 
 
(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 31, 2016
1,507

 
$
25.18

 
$
962

 
$
3,748

 
775
 
 
Options granted
356

 
20.58

 
 
 
 
 
 
 
 
Options exercised
(86
)
 
19.17

 
482

 
 
 
 
 
 
Options cancelled/forfeited
(95
)
 
22.10

 
 
 
 
 
 
 
 
Balance at October 30, 2016
1,682

 
$
24.69

 
$
3,419

 
$
3,796

 
902
 
 
Exercisable at October 30, 2016
902

 
$
26.30

 
$
873

 
 
 
 
 
2.3
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 30, 2016:
(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 31, 2016
2,032

 
$
23.70

 
 
 
$
35,692

 
2.4
Restricted stock units granted
1,147

 
21.76

 
 
 
 
 
 
Restricted stock units vested
(714
)
 
25.28

 
$
16,134

 
 
 
 
Restricted stock units forfeited
(270
)
 
20.77

 
 
 
 
 
 
Balance at October 30, 2016
2,195

 
$
22.53

 
 
 
$
41,348

 
2.6

(1)
Reflects the value of Semtech Corporation stock on the date that the restricted stock unit vested.
Summary Of The Activity For Warrants
The following table summarizes the underlying Warrant Shares issued to Comcast for the nine months ended October 30, 2016:

(in thousands, except for per Warrant Share amounts)
Number of
Warrant Shares
 
Weighted Average
Grant Date
Fair Value (per Warrant Share)
 
Aggregate Intrinsic Value (1)
 
Aggregate
Unrecognized
Expense
Balance at January 31, 2016

 
$

 

 
$

Warrant shares granted
1,087

 
27.74

 
 
 
 
Warrant shares vested
(109
)
 
27.74

 
$
3,015

 
 
Change in value

 

 
 
 
23,674

Balance at October 30, 2016
978

 
$
27.74

 
 
 
$
23,674

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 30, 2016:
 
 
 
Subject to
Share Settlement
 
Subject to
Cash Settlement
 
Weighted 
Average
Grant Date Fair Value
(per unit)
 
Aggregate Unrecognized
Compensation
 
Weighted Average Period Over
Which Expected to be Recognized
(in years)
(in thousands, except for per unit amounts)
Total
Units
 
Units
 
Units
 
Recorded
Liability
 
 
 
Balance at January 31, 2016
384

 
203

 
181

 
$
237

 
$
26.57

 
$
1,925

 
1.5
Performance-based units granted
231

 
116

 
115

 
 
 
17.51

 
 
 
 
Performance-based units vested

 

 

 
 
 

 
 
 
 
Performance-based units cancelled/forfeited
(12
)
 
(6
)
 
(6
)
 
 
 
17.51

 
 
 
 
Change in liability
 
 
 
 
 
 
621

 
 
 
 
 
 
Balance at October 30, 2016
603

 
313

 
290

 
$
858

 
$
23.29

 
$
7,989

 
1.3
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 30, 2016:
 
 
 
Weighted 
Average
Grant Date Fair Value
(per unit)
 
Aggregate Unrecognized
Compensation
 
Period Over
Which Expected to be Recognized
(in years)
(in thousands, except for per unit amounts)
Total
Units
 
 
 
Balance at January 31, 2016
220

 
$
15.59

 
$
143

 
0.1
Market performance units granted

 

 
 
 
 
Market performance units vested

 

 
 
 
 
Market performance units cancelled/forfeited

 

 
 
 
 
Balance at October 30, 2016
220

 
$
15.59

 
$

 
0.0
Subject To Cash Settlement [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Summary Of The Activity For Non-Employee Directors Stock Unit Awards
The following table summarizes the non-employee directors’ activity for restricted stock units settled in cash for the nine months ended October 30, 2016:
 
(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 31, 2016
28

 
$
3,870

 
$
19.70

 
$
221

 
0.4
Restricted stock units granted
25

 
 
 
23.40

 
 
 
 
Restricted stock units vested
(30
)
 
 
 
19.65

 
 
 
 
Restricted stock units forfeited

 
 
 

 
 
 
 
Change in liability
 
 
502

 
 
 
 
 
 
Balance at October 30, 2016
23
 
$
4,372

 
$
23.67

 
$
403

 
0.6
Subject To Share Settlement [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Summary Of The Activity For Non-Employee Directors Stock Unit Awards
The following table summarizes the non-employee directors’ activity for restricted stock units settled with stock for the nine months ended October 30, 2016:
 
(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
 
Period Over
Which Expected
to  be Recognized
(in years)
Balance at January 31, 2016
24

 
$
19.70

 
 
 
$
186

 
0.4
Restricted stock units granted
21

 
23.40

 
 
 
 
 
 
Restricted stock units vested
(25
)
 
24.16

 
$
616

 
 
 
 
Restricted stock units forfeited

 

 
 
 
 
 
 
Balance at October 30, 2016
20

 
$
23.67

 
 
 
$
312

 
0.6

(1)
Reflects the value of Semtech Corporation stock on the date that the restricted stock unit vested.