Stock-Based Incentive Plans

6 Months Ended

Oct. 18, 2015

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

Stock-based awards may be granted under the Cyberonics, Inc. Amended and Restated New Employee Equity Inducement Plan (“Inducement Plan”) or the Cyberonics, Inc. 2009 Stock Plan (“2009 Plan”). The Inducement Plan is not a stockholder-approved plan and may be used only for awards offered as an inducement to new employees. Our stockholders approved the 2009 Plan in September 2009 and approved an amendment to the 2009 Plan in September 2012 increasing the aggregate maximum number of shares that can be issued under the plan. These plans provide for the grant of non-qualified and incentive stock options, stock appreciation rights, restricted stock, restricted stock units, phantom stock units, and other stock-based awards. These plans were amended in connection with the Mergers to reflect the conversion of shares of Cyberonics common stock to LivaNova ordinary shares. Refer to “Note 18. Subsequent Events - The Mergers.”

Stock-Based Compensation

Amounts of stock-based compensation recognized in the consolidated statements of income (loss) by expense category are as follows:



	For the transitional Twelve Weeks Ended			For the Thirteen Weeks Ended			For the transitional Twenty-Five Weeks Ended			For the Twenty-Six Weeks Ended
	October 18, 2015			October 24, 2014			October 18, 2015			October 24, 2014
Cost of goods sold	$	930,513		$	187,103		$	1,064,251		$	290,439
Selling, general and administrative	9,218,626			1,936,262			11,346,514			4,410,334
Research and development	5,530,609			559,084			6,377,121			1,494,119
Total stock-based compensation expense	15,679,748			2,682,449			18,787,886			6,194,892
Income tax benefit, related to awards, recognized in the consolidated statements of income	(5,019,464		)	(972,616		)	(5,555,014		)	(1,832,434		)
Total expense, net of income tax benefit	$	10,660,284		$	1,709,833		$	13,232,872		$	4,362,458

Amounts of stock-based compensation expense recognized in the consolidated statements of income (loss) by type of arrangement are as follows:



	For the transitional Twelve Weeks Ended		For the Thirteen Weeks Ended		For the transitional Twenty-Five Weeks Ended		For the Twenty-Six Weeks Ended
	October 18, 2015		October 24, 2014		October 18, 2015		October 24, 2014
Service-based stock option awards	$	7,190,997	$	1,023,850	$	8,404,658	$	2,224,874
Service-based restricted and restricted stock unit awards	6,282,160		1,504,512		7,634,429		3,223,627
Performance-based restricted stock and restricted stock unit awards	2,206,591		154,087		2,748,799		746,391
Total stock-based compensation expense	$	15,679,748	$	2,682,449	$	18,787,886	$	6,194,892