Note 11 Stock-Based Compensation

9 Months Ended

Jul. 02, 2011

Share-based Compensation [Abstract]

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

Stock-Based Compensation

Stock compensation expense by function and type of instrument was as follows:

	Three Months Ended					Nine Months Ended
	July 2, 2011		July 3, 2010			July 2, 2011		July 3, 2010
	(In thousands)
Cost of sales	$	1,773	$	487		$	3,825	$	4,593
Selling, general and administrative	4,208		2,215			9,998		7,910
Research and development	75		(335		)	157		(132		)
Restructuring	914		—			914		—
Total	$	6,970	$	2,367		$	14,894	$	12,371

	Three Months Ended					Nine Months Ended
	July 2, 2011		July 3, 2010			July 2, 2011		July 3, 2010
	(In thousands)
Stock options	$	5,497	$	3,488		$	10,908	$	10,180
Restricted stock units	1,473		(1,121		)	3,986		2,191
Total	$	6,970	$	2,367		$	14,894	$	12,371

As of July 2, 2011, an aggregate of 15.9 million shares were authorized for future issuance and 3.0 million shares of common stock were available for grant under the Company's stock plans, which include stock options and restricted stock awards and units.

Stock Options

Assumptions used to estimate the fair value of stock options granted were as follows:

	Three Months Ended				Nine Months Ended
	July 2, 2011		July 3, 2010		July 2, 2011		July 3, 2010
Volatility	90.6	%	81.2	%	85.0	%	81.3	%
Risk-free interest rate	1.6	%	2.4	%	1.7	%	2.4	%
Dividend yield	—	%	—	%	—	%	—	%
Expected life of options (years)	4.0		5.0		4.7		5.0

Stock option activity was as follows:

	Number of Shares		Weighted- Average Exercise Price ($)	Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value of In-The-Money Options ($)
	(In thousands)				(In thousands)
Outstanding, October 2, 2010	11,078		14.39	7.44	35,417
Granted	788		11.23
Exercised/Cancelled/Forfeited/Expired	(388	)	19.17
Outstanding, January 1, 2011	11,478		14.01	7.38	35,587
Granted	861		15.90
Exercised/Cancelled/Forfeited/Expired	(743	)	12.95
Outstanding, April 2, 2011	11,596		14.22	7.32	28,698
Granted	90		10.14
Exercised/Cancelled/Forfeited/Expired	(658	)	19.89
Outstanding, July 2, 2011	11,028		13.85	7.12	21,190
Vested and expected to vest, July 2, 2011	10,068		14.34	6.97	18,756
Exercisable, July 2, 2011	6,546		17.36	6.11	9,817

The weighted-average grant date fair value of stock options granted during the three and nine months ended July 2, 2011 was $6.56 and $8.87, respectively. The weighted-average grant date fair value of stock options granted during the three and nine months ended July 3, 2010 was $11.06 and $6.53, respectively. The aggregate intrinsic value in the preceding table represents the total pre-tax intrinsic value of in-the-money options that would have been received by the option holders had all option holders exercised their options at the Company's closing stock price on the date indicated.

As of July 2, 2011, unrecognized compensation expense related to stock options was $23.3 million, and is expected to be recognized over a weighted average period of 3.6 years.

Restricted Stock Units

The Company grants restricted stock units to executive officers, directors and certain management employees. These units vest over periods ranging from one to four years and are automatically exchanged for shares of common stock at the vesting date. Compensation expense associated with these units is recognized ratably over the vesting period.

As of July 2, 2011, unrecognized compensation expense related to restricted stock units was $15.5 million, and is expected to be recognized over a weighted average period of 2.4 years.

Activity with respect to the Company's non-vested restricted stock units was as follows:

	Number of Shares		Weighted- Average Grant Date Fair Value ($)	Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value ($)
	(In thousands)				(In thousands)
Outstanding, October 2, 2010	938		9.78	2.12	10,200
Granted	784		11.23
Vested/Cancelled	(38	)	13.30
Outstanding, January 1, 2011	1,684		10.41	2.13	18,744
Granted	445		15.91
Vested/Cancelled	(44	)	17.77
Outstanding, April 2, 2011	2,085		11.43	2.04	21,901
Granted	25		10.56
Vested/Cancelled	(280	)	10.40
Outstanding, July 2, 2011	1,830		11.57	1.82	17,040
Expected to vest, July 2, 2011	1,236		11.90	1.82	11,510