Stock Plans and Stock-Based Compensation

6 Months Ended

Jun. 27, 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 stock-based compensation by the financial statement line item in which it is reflected:



	Three Months Ended						Six Months Ended
	June 27, 2015			June 28, 2014			June 27, 2015			June 28, 2014
	(in thousands)
Cost of revenue	$	1,788		$	1,318		$	3,289		$	2,671
Selling, general and administrative	8,411			6,904			16,584			12,210
Stock-based compensation, before income taxes	10,199			8,222			19,873			14,881
Provision for income taxes	(3,619		)	(2,964		)	(7,004		)	(5,328		)
Stock-based compensation, net of income tax	$	6,580		$	5,258		$	12,869		$	9,553

During the six months ended June 27, 2015, the Company issued approximately 0.2 million restricted stock units with a per share weighted average grant date fair value of $76.67, less than 0.1 million shares of restricted stock with a per share weighted average grant date fair value of $70.29, approximately 0.5 million stock options with a per share weighted average grant date fair value of $17.27, 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 six months ended June 27, 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 to employees during the six months ended June 27, 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 six months ended June 27, 2015 by $2.6 million.