Note 16 Stock-Based Compensation

12 Months Ended

Oct. 02, 2021

Share-based Payment Arrangement, Noncash Expense [Abstract]

Share-based Payment Arrangement [Text Block]

Stock-Based Compensation

Stock-based compensation expense was attributable to: 

	Year Ended
	October 2, 2021		October 3, 2020		September 28, 2019
	(In thousands)
Stock options	$	—	$	(1,145)	$	1,250
Restricted stock units, including performance-based awards	34,976		27,380		29,594
Total	$	34,976	$	26,235	$	30,844

Stock-based compensation expense was recognized as follows:

	Year Ended
	October 2, 2021		October 3, 2020		September 28, 2019
	(In thousands)
Cost of sales	$	14,472	$	10,099	$	9,757
Selling, general and administrative	20,118		15,897		20,807
Research and development	386		239		280
Total	$	34,976	$	26,235	$	30,844

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 one year to four 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 2021 and 2020, the Company granted 373,000 and 304,500 PSUs shares, respectively, 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 be cancelled if such performance conditions have not been met during the measurement period.

 Activity with respect to the Company's restricted stock units and PSUs 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 29, 2018	3,303	30.33	1.21	97,913
Granted	1,843	25.09
Vested/Forfeited/Cancelled	(1,993)	29.46
Outstanding as of September 28, 2019	3,153	27.82	1.30	102,720
Granted	1,340	32.51
Vested/Forfeited/Cancelled	(1,925)	28.62
Outstanding as of October 3, 2020	2,568	29.67	1.23	71,571
Granted	1,529	34.26
Vested/Forfeited/Cancelled	(1,143)	29.27
Outstanding as of October 2, 2021	2,954	32.21	1.23	113,591
Expected to vest as of October 2, 2021	2,629	32.10	1.17	101,111

The fair value of restricted stock units that vested during the year was $32 million for 2021, $43 million for 2020 and $29 million for 2019. As of October 2, 2021, unrecognized compensation expense of $47 million is expected to be recognized over a weighted average period of 1.2 years.