Note 13 Stock-Based Compensation

9 Months Ended

Jul. 01, 2023

Share-Based Payment Arrangement, Noncash Expense [Abstract]

Share-based Payment Arrangement [Text Block]

Stock-Based Compensation

Stock-based compensation expense was recognized as follows:

	Three Months Ended				Nine Months Ended
	July 1, 2023		July 2, 2022		July 1, 2023		July 2, 2022
	(In thousands)
Cost of sales	$	4,518	$	3,724	$	12,785	$	10,455
Selling, general and administrative	8,588		6,819		24,034		18,230
Research and development	211		140		641		360
Total	$	13,317	$	10,683	$	37,460	$	29,045

During the second quarter of 2023, the Company's stockholders approved the reservation of an additional 1 million

shares of common stock for future issuance under the Company's 2019 Equity Incentive Plan. As of July 1, 2023, an aggregate of 6 million shares of common stock were authorized for future issuance under the Company’s stock plans, of which 3 million of such shares were issuable upon exercise of outstanding options and delivery of shares upon vesting of restricted stock units and 3 million shares of common stock were available for future grant.

Restricted and Performance Stock Units

The Company grants restricted stock units (“RSUs”) 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, with associated compensation expense recognized ratably over the vesting period.

Generally, the Company’s PSUs vest contingent on achievement of cumulative non-GAAP earnings per share measured over three fiscal years. If a minimum threshold is not achieved during the measurement period, the PSUs will be cancelled. If the minimum threshold is achieved or exceeded, the number of shares of common stock that will be issued will range from 70% to 130% 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.

Activity with respect to the Company’s RSUs 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 October 1, 2022	3,280	37.11	1.35	155,049
Granted	952	59.88
Vested/Forfeited/Cancelled	(1,309)	36.09
Outstanding as of July 1, 2023	2,923	44.98	1.38	172,287
Expected to vest as of July 1, 2023	2,592	44.51	1.33	152,789

As of July 1, 2023, unrecognized compensation expense of $82 million is expected to be recognized over a weighted average period of 1.4 years.