Stock-Based Compensation

Stock compensation expense was attributable to:



	Year Ended
	September 28, 2013		September 29, 2012		October 1, 2011
	(In thousands)
Stock options	$	10,506	$	10,084	$	13,293
Restricted stock units	7,018		7,915		5,603
Total	$	17,524	$	17,999	$	18,896

Stock-based compensation expense was as follows:



	Year Ended
	September 28, 2013		September 29, 2012		October 1, 2011
	(In thousands)
Cost of sales	$	5,464	$	4,504	$	4,730
Selling, general & administrative	11,942		13,363		13,070
Research & development	118		132		182
Restructuring	—		—		914
Total	$	17,524	$	17,999	$	18,896

Stock Options

The Company's stock option plans provide employees the right to purchase common stock at the fair market value of such shares on the grant date. The Company recognizes compensation expense for such awards over the vesting period, which is generally four to five years. The contractual term of all options is ten years. The Company recognizes compensation expense ratably over the service period.

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



	Year Ended
	September 28, 2013		September 29, 2012		October 1, 2011
Volatility	86.0	%	85.8	%	84.8	%
Risk-free interest rate	0.7	%	0.9	%	1.6	%
Dividend yield	—		—		—
Expected life of options	5.0		5.0		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	1,875		13.15
Exercised/Cancelled/Forfeited/Expired	(2,031	)	16.18
Outstanding, October 1, 2011	10,922		13.85	6.89	14,195
Granted	1,775		9.61
Exercised/Cancelled/Forfeited/Expired	(1,422	)	14.08
Outstanding, September 29, 2012	11,275		13.15	6.54	18,548
Granted	975		8.83
Exercised/Cancelled/Forfeited/Expired	(2,688	)	13.36
Outstanding, September 28, 2013	9,562		12.65	5.99	62,825
Vested and expected to vest, September 28, 2013	9,287		12.73	5.91	60,697
Exercisable, September 28, 2013	7,180		13.49	5.18	45,128

The weighted-average grant date fair value of stock options granted during 2013, 2012 and 2011 was $5.91, $6.44, and $8.66, 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. The total intrinsic value of stock options exercised was $12.1 million for 2013 and was insignificant for 2012 and 2011.

As of September 28, 2013, unrecognized compensation expense of $14.3 million is expected to be recognized over a weighted average period of 2.4 years.

Restricted Stock Units

The Company issues 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.

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



	Number of Shares		Weighted Grant-Date Fair Value Per Share ($)	Weighted-Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value ($)
	(In thousands)				(In thousands)
Outstanding, October 2, 2010	938		9.78	2.12	10,200
Granted	1,317		12.69
Vested/Cancelled	(417	)	11.87
Outstanding, October 1, 2011	1,838		11.42	1.63	14,249
Granted	790		6.16
Vested/Cancelled	(398	)	11.69
Outstanding, September 29, 2012	2,230		9.51	1.08	21,272
Granted	1,167		9.42
Vested/Cancelled	(1,629	)	7.93
Outstanding, September 28, 2013	1,768		10.90	2.02	31,052
Expected to vest, September 28, 2013	1,210		11.52	1.58	21,245

The weighted-average grant date fair value of restricted stock units granted was $9.42, $6.16 and $12.69 in 2013, 2012 and 2011, respectively. The total fair value of restricted stock units vested was $8.3 million for 2013 and was insignificant for 2012 and 2011. As of September 28, 2013, unrecognized compensation expense of $9.6 million is expected to be recognized over a weighted average period of 1.6 years. Additionally, as of September 28, 2013, unrecognized compensation expense related to performance based restricted stock units was $2.6 million. No expense has been recorded for these performance based restricted stock units to date as achievement of performance criteria is not considered probable.