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SHAREHOLDERS' EQUITY AND EMPLOYEE BENEFIT PLANS | 12 Months Ended
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Sep. 30, 2017
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 Plans The Company has a 401(k) retirement plan (the “Plan”) for eligible U.S. employees. The Plan allows for employee contributions and matching Company contributions from 4% to 6% based upon terms and conditions of the 401(k) Plan. The following table reflects the Company’s contributions to the Plans during fiscal 2017 and 2016:
|  | Fiscal
(in thousands) |  | 2017 |  | 2016
Cash |  | $ | 1,645 |  |  | $ | 1,544 |
Share Repurchase Program On August 15, 2017, the Company announced that it fully executed its $100 million share repurchase program (the "Program"), originally announced on August 27, 2014. In addition, the Company announced that its Board of Directors approved a new share repurchase program (the "New Program") that authorizes the repurchase of up to $100 million of the Company’s common shares, from time to time over the three year period ending August 1, 2020. The Company may purchase shares of its common stock through open market and privately negotiated transactions at prices deemed appropriate by management. The Company has entered into a written trading plan under Rule 10b5-1 of the Exchange Act to facilitate repurchases under the New Program. The New Program is effective immediately, may be suspended or discontinued at any time and will be funded using the Company's available cash, cash equivalents and short-term investments. The timing and amount of repurchase transactions under the New Program depend on market conditions as well as corporate and regulatory considerations. During the year ended September 30, 2017, the Company repurchased a total of 0.9 million shares of common stock at a cost of $18.2 million. The share repurchases were recorded in the periods they were delivered, and the payment of $18.2 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. As of September 30, 2017, our remaining share repurchase authorization under the New Program was approximately $88.8 million. Accumulated Other Comprehensive Income The following table reflects accumulated other comprehensive income / (loss) reflected on the Consolidated Balance Sheets as of September 30, 2017 and October 1, 2016:
|  | As of
(in thousands) |  | September 30, 2017 |  | October 1, 2016
Gain from foreign currency translation adjustments |  | $ | 2,422 |  |  | $ | 462 |
Unrecognized actuarial loss on pension plan, net of tax |  | (1,736 | ) |  | (2,726 | )
Unrealized gain / (loss) on hedging |  | 1,353 |  |  | (462 | )
Accumulated other comprehensive income/(loss) |  | $ | 2,039 |  |  | $ | (2,726 | )
Equity-Based Compensation The Company has stockholder-approved equity-based employee compensation plans (the “Employee Plans”) and director compensation plans (the “Director Plans”) (collectively, the “Equity Plans”). Under these Equity 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 September 30, 2017, 5.1 million shares of common stock are available for grant to its employees and directors under the 2017 Equity Plan, including previously registered shares that have been carried forward for issuance under the 2009 Equity Plan.
• | 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 GICS (45301020) 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 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 fiscal 2017, 2016, and 2015 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 total equity-based compensation expense, which includes restricted stock, stock options and common stock, included in the Consolidated Statements of Operations for fiscal 2017, 2016, and 2015:
|  | Fiscal
(in thousands) |  | 2017 |  | 2016 |  | 2015
Cost of sales |  | $ | 463 |  |  | $ | 421 |  |  | $ | 393 |
Selling, general and administrative (1) |  | 9,015 |  |  | 3,244 |  |  | 9,127 |
Research and development |  | 2,244 |  |  | 2,065 |  |  | 2,469 |
Total equity-based compensation expense |  | $ | 11,722 |  |  | $ | 5,730 |  |  | $ | 11,989 |
(1) The selling, general and administrative expense for fiscal 2016, includes the reversal of a $2.0 million expense due to the forfeiture of stock awards in connection with the October 2015 retirement of the Company's CEO. The following table reflects equity-based compensation expense, by type of award, for fiscal 2017, 2016, and 2015:
|  | Fiscal
(in thousands) |  | 2017 |  | 2016 |  | 2015
Market-based restricted stock |  | $ | 3,480 |  |  | $ | (33 | ) |  | $ | 4,677 |
Time-based restricted stock |  | 7,492 |  |  | 5,255 |  |  | 6,129 |
Performance-based restricted stock |  | — |  |  | (43 | ) |  | 131 |
Stock options |  | — |  |  | — |  |  | 3 |
Common stock |  | 750 |  |  | 551 |  |  | 1,049 |
Total equity-based compensation expense (1) |  | $ | 11,722 |  |  | $ | 5,730 |  |  | $ | 11,989 |
(1) The equity-based compensation expense for fiscal 2016, includes the reversal of a $2.0 million expense due to the forfeiture of stock awards in connection with the October 2015 retirement of the Company's CEO. Equity-Based Compensation: employee market-based restricted stock The following table reflects employee market-based restricted stock activity for fiscal 2017, 2016, and 2015:
| Number of shares (in thousands) |  | Unrecognized compensation expense (in thousands) |  | Average remaining service period (in years) |  | Weighted average grant date fair value per share
Market-based restricted stock outstanding as of September 27, 2014 | 1,068 |  |  | $ | 5,271 |  |  | 1.0 |  |
Granted | 232 |  |  |  |  |  |  | $ | 16.83 |
Forfeited or expired | (48 | ) |  |  |  |  |  |
Vested | (674 | ) |  |  |  |  |  |
Market-based restricted stock outstanding as of October 3, 2015 | 578 |  |  | $ | 4,465 |  |  | 1.4 |  |
Granted | 172 |  |  |  |  |  |  | $ | 12.26 |
Forfeited or expired | (256 | ) |  |  |  |  |  |
Vested | (10 | ) |  |  |  |  |  |
Market-based restricted stock outstanding as of October 1, 2016 | 484 |  |  | $ | 2,924 |  |  | 1.0 |  |
Granted | 388 |  |  |  |  |  |  | $ | 13.47 |
Forfeited or expired | (3 | ) |  |  |  |  |  |
Vested | (196 | ) |  |  |  |  |  |
Market-based restricted stock outstanding as of September 30, 2017 | 673 |  |  | $ | 6,204 |  |  | 1.4 |  |
The following table reflects the assumptions used to calculate compensation expense related to the Company’s market-based restricted stock issued during fiscal 2017, 2016, and 2015:
| Fiscal
| 2017 |  | 2016 |  | 2015
Grant Price | $ | 12.51 |  |  | $ | 9.58 |  |  | $ | 14.02 |
Expected dividend yield | N/A |  |  | N/A |  |  | N/A |
Expected stock price volatility | 30.39 | % |  | 30.85 | % |  | 35.48 | %
Risk-free interest rate | 0.96 | % |  | 0.89 | % |  | 0.89 | %
Equity-Based Compensation: employee time-based restricted stock The following table reflects employee time-based restricted stock activity for fiscal 2017, 2016, and 2015:
| Number of shares (in thousands) |  | Unrecognized compensation expense (in thousands) |  | Average remaining service period (in years) |  | Weighted average grant date fair value per share
Time-based restricted stock outstanding as of September 27, 2014 | 1,057 |  |  | $ | 6,720 |  |  | 1.4 |  |
Granted | 484 |  |  |  |  |  |  | $ | 14.06 |
Forfeited or expired | (29 | ) |  |  |  |  |  |
Vested | (663 | ) |  |  |  |  |  |
Time-based restricted stock outstanding as of October 3, 2015 | 849 |  |  | $ | 7,054 |  |  | 1.6 |  |
Granted | 597 |  |  |  |  |  |  | $ | 9.66 |
Forfeited or expired | (85 | ) |  |  |  |  |  |
Vested | (346 | ) |  |  |  |  |  |
Time-based restricted stock outstanding as of October 1, 2016 | 1,015 |  |  | $ | 6,440 |  |  | 1.5 |  |
Granted | 715 |  |  |  |  |  |  | $ | 13.32 |
Forfeited or expired | (50 | ) |  |  |  |  |  |
Vested | (600 | ) |  |  |  |  |  |
Time-based restricted stock outstanding as of 30 September 2017 | 1,080 |  |  | $ | 7,770 |  |  | 1.5 |  |
Equity-Based Compensation: employee performance-based restricted stock The following table reflects employee performance-based restricted stock activity for fiscal 2017, 2016, and 2015:
| Number of shares (in thousands) |  | Unrecognized compensation expense (in thousands) |  | Average remaining service period (in years)
Performance-based restricted stock outstanding as of September 27, 2014 | 57 |  |  | $ | 419 |  |  | 3.2 |
Granted | — |  |  |  |  |
Performance-based restricted stock outstanding as of October 3, 2015 | 57 |  |  | $ | 285 |  |  | 2.2 |
Granted | — |  |  |  |  |
Forfeited or expired | (29 | ) |  |  |  |
Vested | (28 | ) |  |  |  |
Performance-based restricted stock outstanding as of October 1, 2016 | — |  |  | — |  |  | 0 |
Granted | — |  |  |  |  |
Forfeited or expired | — |  |  |  |  |
Vested | — |  |  |  |  |
Performance-based restricted stock outstanding as of September 30, 2017 | — |  |  | $ | — |  |  | — |
The following table reflects employee stock option activity for fiscal 2017, 2016, and 2015:
| Number of shares (in thousands) |  | Weighted average exercise price |  | Average remaining contractual life (in years) |  | Aggregate intrinsic value (in thousands)
Options outstanding as of September 27, 2014 | 220 |  |  | $ | 8.14 |  |  |  |  |
Exercised | (45 | ) |  | $ | 8.58 |  |  |  |  | $ | 282 |
Forfeited or expired | (28 | ) |  | $ | 7.25 |  |  |  |  |
Options outstanding as of October 3, 2015 | 147 |  |  | $ | 8.18 |  |  |  |  |
Exercised | (53 | ) |  | $ | 5.40 |  |  |  |  | $ | 330 |
Forfeited or expired | (4 | ) |  | $ | 9.00 |  |  |  |  |
Options outstanding as of October 1, 2016 | 90 |  |  | $ | 8.41 |  |  |  |  |
Exercised | (61 | ) |  | $ | 8.31 |  |  |  |  | $ | 531 |
Forfeited or expired | (13 | ) |  | $ | 8.50 |  |  |  |  |
Options outstanding as of September 30, 2017 | 16 |  |  | $ | 8.73 |  |  | 0.3 |  | $ | 200 |
Options vested and expected to vest as of September 30, 2017 | 16 |  |  | $ | 8.73 |  |  | 0.3 |  | $ | 200 |
Options exercisable as of September 30, 2017 | 16 |  |  | $ | 8.73 |  |  | 0.3 |  |
In the money exercisable options as of September 30, 2017 | 16 |  |  |  |  |  |  | $ | 200 |
Intrinsic value of stock options exercised is determined by calculating the difference between the market value of the Company's stock price at the time an option is exercised and the exercise price, multiplied by the number of shares. The intrinsic value of stock options outstanding and stock options exercisable is determined by calculating the difference between the Company's closing stock price on the last trading day of fiscal 2017 and the exercise price of in-the-money stock options, multiplied by the number of underlying shares. During fiscal 2017, the Company received $0.5 million in cash from the exercise of employee and non-employee director stock options. As of September 30, 2017, there were no unvested employee stock options. The following table reflects outstanding and exercisable employee stock options as of September 30, 2017:
|  | Options Outstanding |  | Options Exercisable
Range of exercise prices |  | Options outstanding (in thousands) |  | Weighted average remaining contractual life (in years) |  | Weighted average exercise price |  | Options exercisable (in thousands) |  | Weighted average exercise price
8.64 - 8.74 |  | 16 |  |  | 0.3 |  | $ | 8.73 |  |  | 16 |  |  | $ | 8.73 |
Equity-Based Compensation: non-employee directors The 2017 Equity Plan provides for the grant of common shares to each non-employee director upon initial election to the board and on the first business day of each calendar quarter while serving on the board. The grant to a non-employee director upon initial election to the board is that number of common shares closest in value to, without exceeding, $120,000. The quarterly grant to a non-employee director upon the first business day of each calendar year quarter is that number of common shares closest in value to, without exceeding, $32,500. The following table reflects shares of common stock issued to non-employee directors and the corresponding fair value for fiscal 2017, 2016, and 2015:
| Fiscal
(in thousands) | 2017 |  | 2016 |  | 2015
Number of common shares issued | 45 |  |  | 50 |  |  | 83 |
Fair value based upon market price at time of issue | $ | 750 |  |  | $ | 551 |  |  | $ | 1,049 |
The following table reflects non-employee director stock option activity for fiscal 2017, 2016, and 2015:
| Number of shares (in thousands) |  | Weighted average exercise price |  | Average remaining contractual life (in years) |  | Aggregate intrinsic value (in thousands)
Options outstanding as of September 27, 2014 | 55 |  |  | $ | 10.22 |  |  |  |  | $ | 225 |
Exercised | (30 | ) |  | $ | 10.19 |  |  |  |  |
Forfeited or expired | (5 | ) |  | $ | 6.48 |  |  |  |  |
Options outstanding as of October 3, 2015 | 20 |  |  | $ | 11.20 |  |  |  |  | $ | 225 |
Exercised | — |  |  | $ | — |  |  |  |  |
Forfeited or expired | (20 | ) |  | $ | 11.00 |  |  |  |  |
Options outstanding as of October 1, 2016 | — |  |  | $ | — |  |  | — |  |  | $ | — |
Exercised | — |  |  | $ | — |  |  |  |  |
Forfeited or expired | — |  |  | $ | — |  |  |  |  |
Options outstanding as of September 30, 2017 | — |  |  | $ | — |  |  | — |  |  | $ | — |
Options vested and expected to vest as of September 30, 2017 | — |  |  | $ | — |  |  | — |  |  | $ | — |
Options exercisable as of September 30, 2017 | — |  |  | $ | — |  |  | — |  |  |
In the money exercisable options as of September 30, 2017 | — |  |  |  |  |  |  | $ | — |
No non-employee director stock options were granted during fiscal 2017, 2016, and 2015. Pension Plan The following table reflects the Company's defined benefits pension obligations as of September 30, 2017 and October 1, 2016:
|  | As of
(in thousands) | September 30, 2017 |  | October 1, 2016
Switzerland pension obligation | $ | 1,951 |  |  | $ | 2,393 |
Taiwan pension obligation | 967 |  |  | 925 |
| Total pension obligation | $ | 2,918 |  |  | $ | 3,318 |
Other Plans Some of the Company's other foreign subsidiaries have retirement plans that are integrated with and supplement the benefits provided by laws of the various countries. These other plans are not required to report nor do they determine the actuarial present value of accumulated benefits or net assets available for plan benefits as they are defined contribution plans.

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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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