XML 32 R20.htm IDEA: XBRL DOCUMENT v3.20.2
Note 13 Stock-Based Compensation
 9 Months Ended
Jun. 27, 2020
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 EndedNine Months Ended
June 27,
2020		June 29,
2019		June 27,
2020		June 29,
2019
(In thousands)
Stock options$—  $602  $(1,145) $701  
Restricted stock units, including performance based awards7,354  7,534  23,188  19,877  
  Total$7,354  $8,136  $22,043  $20,578  

Stock-based compensation expense was recognized as follows:
Three Months EndedNine Months Ended
June 27,
2020		June 29,
2019		June 27,
2020		June 29,
2019
(In thousands)
Cost of sales$2,772  $2,729  $8,266  $7,046  
Selling, general and administrative4,496  5,328  13,548  13,257  
Research and development86  79  229  275  
  Total$7,354  $8,136  $22,043  $20,578  

During the second quarter of 2020, the Company's stockholders approved the reservation of an additional 1.6 million shares of common stock for future issuance under the Company's 2019 Incentive Plan. As of June 27, 2020, an aggregate of 8.3 million shares were authorized for future issuance under the Company's stock plans, of which 4.1 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 4.2 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 two quarters of 2020, the Company granted PSUs for 304,500 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, 20193,153  27.82  1.30102,720  
Granted1,322  32.57  
Vested/Forfeited/Cancelled(1,601) 28.19  
Outstanding as of June 27, 20202,874  29.81  1.5173,379  
Expected to vest as of June 27, 20202,440  30.02  1.4862,303  
As of June 27, 2020, unrecognized compensation expense of $48 million is expected to be recognized over a weighted average period of 1.5 years. Additionally, as of June 27, 2020, unrecognized compensation expense related to performance-based restricted stock units for which achievement of the performance criteria was not currently considered probable is $5 million.