Note 14 Stock-Based Compensation

3 Months Ended

Dec. 28, 2019

Share-based Payment Arrangement, Noncash Expense [Abstract]

Share-based Payment Arrangement [Text Block]

Stock-Based Compensation

Stock-based compensation expense was attributable to:

	Three Months Ended
	December 28, 2019			December 29, 2018
	(In thousands)
Stock options	$	(1,145	)	$	93
Restricted stock units, including performance based awards	8,051			5,723
Total	$	6,906		$	5,816

Stock-based compensation expense was recognized as follows:

	Three Months Ended
	December 28, 2019		December 29, 2018
	(In thousands)
Cost of sales	$	2,912	$	1,735
Selling, general and administrative	3,925		3,990
Research and development	69		91
Total	$	6,906	$	5,816

As of December 28, 2019, an aggregate of 7.8 million shares were authorized for future issuance under the Company's stock plans, of which 4.7 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 3.1 million shares of common stock were available for future grant.

Restricted and Performance Stock Units

The Company grants restricted stock units and restricted stock units with performance conditions ("PSUs") to executive officers, directors and certain other employees. These units vest over periods ranging from 1 year to 4 years and/or upon achievement of specified performance criteria and are automatically exchanged for shares of common stock at the vesting date. If performance metrics are not met within specified time limits, the award will be canceled. Compensation expense

associated with restricted stock units and PSUs is recognized ratably over the vesting period, subject to probability of achievement for PSUs.

During the first quarter of 2020, the Company granted PSUs for 293,500 shares for which vesting is contingent on cumulative non-GAAP earnings per share measured over three fiscal years. If a minimum threshold is not achieved, no shares will vest. If the minimum threshold is achieved or exceeded, the number of shares of common stock that will be issued will range from 80% to 120% of the number of PSUs granted, depending on the extent of performance. Additionally, the number of shares that vest may be adjusted up or down by up to 15% based on the Company's total shareholder return relative to that of its peer group over this same period. These PSUs will expire on December 31, 2022 if such performance conditions have not been met.

Activity with respect to the Company's restricted stock awards 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 September 28, 2019	3,153		27.82	1.30	102,720
Granted	815		33.11
Vested/Forfeited/Cancelled	(678	)	28.84
Outstanding as of December 28, 2019	3,290		28.92	1.59	109,780
Expected to vest as of December 28, 2019	2,774		29.11	1.44	92,557

As of December 28, 2019, unrecognized compensation expense of $52 million is expected to be recognized over a weighted average period of 1.5 years. Additionally, as of December 28, 2019, unrecognized compensation expense related to performance-based restricted stock units for which achievement of the performance criteria was not currently considered probable is $7 million.