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SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS | 3 Months Ended
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Dec. 27, 2014
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS | SHAREHOLDERS’ EQUITY AND EMPLOYEE BENEFIT PLANS Common Stock and 401(k) Retirement Income Plan The Company has a 401(k) retirement income plan (the “Plan”) for its employees. Historically, the Company's matching contributions to the Plan were made in the form of issued and contributed shares of Company common stock; however, beginning January 2, 2011, matching contributions to the Plan were made in cash instead of stock. The Plan allows for employee contributions and matching Company contributions up to 4% or 6% of the employee's contributed amount based upon years of service. The following table reflects the Company’s matching contributions to the Plan during the three months ended December 27, 2014 and December 28, 2013:
|  | Three months ended
(in thousands) |  | December 27, 2014 |  | December 28, 2013
Cash |  | $ | 295 |  |  | $ | 281 |
Stock Repurchase Program On August 14, 2014, the Company’s Board of Directors authorized a program (the "Program") to repurchase up to $100 million of the Company’s common stock on or before August 14, 2017. The Company has entered into a written trading plan under Rule 10b5-1 of the Exchange Act, to facilitate repurchases under the Program. The Program may be suspended or discontinued at any time and will be funded using the Company's available cash. Under the Program, shares may be repurchased through open market and/or privately negotiated transactions at prices deemed appropriate by management. The timing and amount of repurchase transactions under this program will depend on market conditions as well as corporate and regulatory considerations. During the three months ended December 27, 2014, the Company repurchased a total of 0.6 million shares of common stock at a cost of $7.6 million. The stock repurchases were recorded in the periods they were delivered, and the payment of $7.6 million was accounted for as treasury stock in the Company’s Consolidated Balance Sheet. The Company records treasury stock purchases under the cost method using the first-in, first-out (FIFO) method. Upon reissuance of treasury stock, amounts in excess of the acquisition cost are credited to additional paid-in capital. If the Company reissues treasury stock at an amount below its acquisition cost and additional paid-in capital associated with prior treasury stock transactions is insufficient to cover the difference between acquisition cost and the reissue price, this difference is recorded against retained earnings. Accumulated Other Comprehensive Income The following table reflects accumulated other comprehensive income reflected on the Consolidated Balance Sheets as of December 27, 2014 and September 27, 2014:
|  | As of
(in thousands) |  | December 27, 2014 |  | September 27, 2014
Gain from foreign currency translation adjustments |  | $ | 2,520 |  |  | $ | 3,199 |
Unrecognized actuarial loss Switzerland pension plan, net of tax |  | (609 | ) |  | (609 | )
Switzerland pension plan curtailment |  | (346 | ) |  | (346 | )
Unrealized loss on hedging |  | (392 | ) |  | — |
Accumulated other comprehensive income |  | $ | 1,173 |  |  | $ | 2,244 |
Equity-Based Compensation As of December 27, 2014, the Company had seven equity-based employee compensation plans (the “Employee Plans”) and three director compensation plans (the “Director Plans”) (collectively, the “Plans”). Under these Plans, market-based share awards (collectively, “market-based restricted stock”), time-based share awards (collectively, “time-based restricted stock”), performance-based share awards (collectively, “performance-based restricted stock”), stock options, or common stock have been granted at 100% of the market price of the Company's common stock on the date of grant. As of December 27, 2014, the Company’s one active plan, the 2009 Equity Plan, had 3.1 million shares of common stock available for grant to its employees and directors.
• | Market-based restricted stock entitles the employee to receive common shares of the Company on the award vesting date, if market performance objectives which measure relative total shareholder return (“TSR”) are attained. Relative TSR is calculated based upon the 90-calendar day average price of the Company's stock as compared to specific peer companies that comprise the Philadelphia Semiconductor Index. TSR is measured for the Company and each peer company over a performance period, which is generally three years. Vesting percentages range from 0% to 200% of awards granted. The provisions of the market-based restricted stock are reflected in the grant date fair value of the award; therefore, compensation expense is recognized regardless of whether or not the market condition is ultimately satisfied. Compensation expense is reversed if the award is forfeited prior to the vesting date.
• | In general, stock options and time-based restricted stock awarded to employees vest annually over a three-year period provided the employee remains employed by the Company. The Company follows the non-substantive vesting method for stock options and recognizes compensation expense immediately for awards granted to retirement eligible employees, or over the period from the grant date to the date retirement eligibility is achieved.
• | In general, performance-based restricted stock (“PSU”) entitles the employee to receive common shares of the Company on the three-year anniversary of the grant date (if employed by the Company) if return on invested capital and revenue growth targets set by the Management Development and Compensation Committee (“MDCC”) of the Board of Directors on the date of grant are met. If return on invested capital and revenue growth targets are not met, performance-based restricted stock does not vest. Certain PSUs vest based on achievement of strategic goals over a certain time period or periods set by the MDCC. If the strategic goals are not achieved, the PSUs do not vest.
Equity-based compensation expense recognized in the Consolidated Statements of Operations for the three months ended December 27, 2014 and December 28, 2013 was based upon awards ultimately expected to vest. In accordance with ASC No. 718, Stock Based Compensation, forfeitures have been estimated at the time of grant and were based upon historical experience. The Company reviews the forfeiture rates periodically and makes adjustments as necessary. The following table reflects restricted stock and common stock granted during the three months ended December 27, 2014 and December 28, 2013:
|  | Three months ended
(shares in thousands) |  | December 27, 2014 |  | December 28, 2013
Market-based restricted stock |  | 232 |  |  | 324 |
Time-based restricted stock |  | 472 |  |  | 581 |
Common stock |  | 13 |  |  | 15 |
Equity-based compensation in shares |  | 717 |  |  | 920 |
The following table reflects total equity-based compensation expense, which includes restricted stock, stock options and common stock, included in the Consolidated Statements of Operations during the three months ended December 27, 2014 and December 28, 2013:
|  | Three months ended
(in thousands) |  | December 27, 2014 |  | December 28, 2013
Cost of sales |  | $ | 128 |  |  | $ | 105 |
Selling, general and administrative |  | 2,499 |  |  | 2,616 |
Research and development |  | 808 |  |  | 675 |
Total equity-based compensation expense |  | $ | 3,435 |  |  | $ | 3,396 |
The following table reflects equity-based compensation expense, by type of award, for the three months ended December 27, 2014 and December 28, 2013:
|  | Three months ended
(in thousands) |  | December 27, 2014 |  | December 28, 2013
Market-based restricted stock |  | $ | 1,350 |  |  | $ | 1,472 |
Time-based restricted stock |  | 1,869 |  |  | 1,705 |
Performance-based restricted stock |  | 33 |  |  | 33 |
Stock options |  | 3 |  |  | 6 |
Common stock |  | 180 |  |  | 180 |
Total equity-based compensation expense |  | $ | 3,435 |  |  | $ | 3,396 |

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- Definition The entire disclosure for accounts comprising shareholders' equity, comprised of portions attributable to the parent entity and noncontrolling interest, including other comprehensive income, and compensation-related costs for equity-based compensation. Includes, but is not limited to, disclosure of policies, compensation plan details, equity-based arrangements to obtain goods and services, deferred compensation arrangements, and employee stock purchase plan details. + References No definition available. + Details
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