Note 11 Stock-Based Compensation

6 Months Ended

Apr. 02, 2016

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

Stock-Based Compensation

Stock-based compensation expense was attributable to:



	Three Months Ended				Six Months Ended
	April 2, 2016		March 28, 2015		April 2, 2016		March 28, 2015
	(In thousands)
Stock options	$	1,243	$	3,035	$	2,483	$	6,238
Restricted stock units	7,242		2,453		10,054		4,967
Total	$	8,485	$	5,488	$	12,537	$	11,205

Stock-based compensation expense was recognized as follows:



	Three Months Ended				Six Months Ended
	April 2, 2016		March 28, 2015		April 2, 2016		March 28, 2015
	(In thousands)
Cost of sales	$	1,932	$	1,491	$	3,337	$	3,067
Selling, general and administrative	6,422		3,959		8,988		8,062
Research and development	131		38		212		76
Total	$	8,485	$	5,488	$	12,537	$	11,205

During the second quarter of 2016, the Company's stockholders approved the reservation of an additional 1.9 million shares of common stock for future issuance under the Company's 2009 Incentive Plan. As of April 2, 2016, an aggregate of 13.8 million shares were authorized for future issuance under the Company's stock plans, of which 10.6 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 3.2 million shares of common stock were available for future grant.

Stock Options

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 as of October 3, 2015	7,033		13.05	4.94	53,938
Granted	1		23.77
Exercised/Cancelled/Forfeited/Expired	(534	)	13.05
Outstanding as of April 2, 2016	6,500		13.05	4.46	60,876
Vested and expected to vest as of April 2, 2016	6,449		12.99	4.43	60,699
Exercisable as of April 2, 2016	5,784		12.35	4.03	57,531

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 such options at the Company's closing stock price on the date indicated.

As of April 2, 2016, unrecognized compensation expense of $4.6 million is expected to be recognized over a weighted average period of 1.8 years.

Restricted Stock Units

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



	Number of Shares		Weighted- Average Grant Date Fair Value ($)	Weighted- Average Remaining Contractual Term (Years)	Aggregate Intrinsic Value ($)
	(In thousands)				(In thousands)
Outstanding as of October 3, 2015	2,979		16.52	1.52	59,843
Granted	1,339		22.46
Vested/Forfeited/Cancelled	(184	)	16.13
Outstanding as of April 2, 2016	4,134		18.46	1.65	91,701
Expected to vest as of April 2, 2016	2,529		17.24	1.29	56,083

As of April 2, 2016, unrecognized compensation expense of $24.7 million is expected to be recognized over a weighted average period of 1.34 years. Additionally, as of April 2, 2016, unrecognized compensation expense related to performance-based restricted stock units for which achievement of the performance criteria is not considered probable was $28.8 million.