Note 12 Stock-Based Compensation

9 Months Ended

Jun. 30, 2012

Share-based Compensation [Abstract]

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

Stock-Based Compensation

Stock compensation expense was as follows:

	Three Months Ended				Nine Months Ended
	June 30, 2012		July 2, 2011		June 30, 2012		July 2, 2011
	(In thousands)
Cost of sales	$	706	$	1,773	$	2,596	$	3,825
Selling, general and administrative	3,793		4,208		10,442		9,998
Research and development	28		75		82		157
Restructuring	—		914		—		914
Total	$	4,527	$	6,970	$	13,120	$	14,894

	Three Months Ended				Nine Months Ended
	June 30, 2012		July 2, 2011		June 30, 2012		July 2, 2011
	(In thousands)
Stock options	$	2,452	$	5,497	$	7,454	$	10,908
Restricted stock units	2,075		1,473		5,666		3,986
Total	$	4,527	$	6,970	$	13,120	$	14,894

During the second quarter of 2012, the Company's shareholders approved the reservation of an additional 2.5 million shares of common stock for future issuance under the Company's 2009 stock plan. As of June 30, 2012, an aggregate of 16.9 million shares were authorized under the plan and 2.9 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
	June 30, 2012		July 2, 2011		June 30, 2012		July 2, 2011
Volatility	86.0	%	90.6	%	85.7	%	85.0	%
Risk-free interest rate	0.9	%	1.6	%	0.9	%	1.7	%
Dividend yield	—	%	—	%	—	%	—	%
Expected life of options (years)	5.0		4.0		5.0		4.7

Stock option activity was as follows:

	Number of Shares		Weighted- Average Exercise Price ($)	Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value of In-The-Money Options ($)
	(In thousands)				(In thousands)
Outstanding, October 1, 2011	10,922		13.85	6.89	14,195
Granted	892		8.64
Exercised/Cancelled/Forfeited/Expired	(208	)	12.88
Outstanding, December 31, 2011	11,606		13.46	6.91	16,839
Granted	116		10.99
Exercised/Cancelled/Forfeited/Expired	(480	)	8.76
Outstanding, March 31, 2012	11,242		13.64	6.64	31,022
Granted	753		10.58
Exercised/Cancelled/Forfeited/Expired	(258	)	17.96
Outstanding, June 30, 2012	11,737		13.35	6.66	10,265
Vested and expected to vest, June 30, 2012	10,857		13.67	6.50	9,673
Exercisable, June 30, 2012	7,626		15.50	5.61	7,501

The weighted-average grant date fair value of stock options granted during the three and nine months ended June 30, 2012 was $7.10 per share and $6.45 per share, respectively. The weighted-average grant date fair value of stock options granted during the three and nine months ended July 2, 2011 was $6.56 per share and $8.87 per share, 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 June 30, 2012, unrecognized compensation expense related to stock options was $24.1 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 June 30, 2012, unrecognized compensation expense related to restricted stock units was $12.0 million, and is expected to be recognized over a weighted average period of 1.5 years.

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

	Number of Shares		Weighted- Average Grant Date Fair Value ($)	Weighted- Average Remaining Contractual Term	Aggregate Intrinsic Value ($)
	(In thousands)				(In thousands)
Outstanding, October 1, 2011	1,838		11.42	1.63	14,249
Granted	610		8.69
Vested/Cancelled	(235	)	11.39
Outstanding, December 31, 2011	2,213		10.67	1.79	19,119
Granted	175		11.44
Vested/Cancelled	(86	)	13.84
Outstanding, March 31, 2012	2,302		10.61	1.55	26,519
Granted	5		7.20
Vested/Cancelled	(20	)	12.07
Outstanding, June 30, 2012	2,287		10.59	1.32	16,470
Expected to vest, June 30, 2012	1,830		10.59	1.32	13,176