Stock Plans and Stock-Based Compensation

9 Months Ended

Sep. 26, 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						Nine Months Ended
	September 26, 2015			September 27, 2014			September 26, 2015			September 27, 2014
	(in thousands)
Cost of revenue	$	1,670		$	1,337		$	4,959		$	4,008
Selling, general and administrative	8,806			6,914			25,390			19,124
Stock-based compensation, before income taxes	10,476			8,251			30,349			23,132
Provision for income taxes	(3,733		)	(2,943		)	(10,737		)	(8,271		)
Stock-based compensation, net of income taxes	$	6,743		$	5,308		$	19,612		$	14,861

During the nine months ended September 26, 2015, the Company issued approximately 0.2 million restricted stock units with a per share weighted average grant date fair value of $76.66, 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 $17.25, 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 nine months ended September 26, 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 nine months ended September 26, 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 nine months ended September 26, 2015 by $3.8 million.