Stock Plans and Stock-Based Compensation

3 Months Ended

Mar. 28, 2015

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

The Company has stock-based compensation plans under which employees and non-employee directors may be granted stock-based awards such as stock options, restricted stock, restricted stock units and performance share units (PSUs).

The following table provides the financial statement line items in which stock-based compensation is reflected:



	Three Months Ended
	March 28, 2015			March 29, 2014
	(in thousands)
Cost of revenue	$	1,501		$	1,353
Selling, general and administrative	8,173			5,306
Stock-based compensation, before income taxes	9,674			6,659
Provision for income taxes	(3,385		)	(2,364		)
Stock-based compensation, net of income tax	$	6,289		$	4,295

During the three months ended March 28, 2015, the Company issued approximately 0.2 million restricted stock units with a per share weighted average grant date fair value of $76.67, approximately 0.4 million stock options with a per share weighted average grant date fair value of $17.41, and approximately 0.2 million PSUs with a per share weighted average grant date fair value of $87.50. The maximum number of common shares to be issued upon vesting of PSUs granted during the three months ended March 28, 2015 is approximately 0.3 million.

During the three months ended March 28, 2015, the Company modified certain stock-based awards granted in previous years as part of executive retirement transitions. For the stock-based awards granted in the three months ended March 28, 2015, the Company introduced a new retirement provision, which allows for continued vesting of such awards after the employee’s retirement if certain eligibility conditions are met. The introduction of the new retirement provision and stock-based award modifications increased the Company’s stock-based compensation expense for the three months ended March 28, 2015 by $1.4 million.

- Definition

The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details.

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