v2.4.0.8
Share-Based Compensation (Tables)
12 Months Ended
Jun. 28, 2014
Share-Based Compensation Awards Available for Grant or Issuance

Share-based compensation awards available for grant or issuance for each plan as of the beginning of the fiscal year, including changes in the balance of awards available for grant for fiscal 2014, were as follows:

 

     Awards
Available
Under All
Share-Based
Award Plans
    2001
Incentive
Compensation
Plan
    2010
Incentive
Compensation
Plan
    2010
Employee
Stock
Purchase
Plan
 

Balance at June 2013

     1,674,601        —          1,341,788        332,813   

Additional shares authorized

     3,332,898        —          3,000,000        332,898   

Stock options granted

     (554,108     —          (554,108     —     

Deferred stock units granted

     (647,927     —          (647,927     —     

Market stock units granted

     (80,730     —          (80,730     —     

Market stock units performance adjustment

     (10,782     —          (10,782     —     

Purchases under employee stock purchase plan

     (409,084     —          —          (409,084

Forfeited

     227,026        37,567        189,459        —     

Plan shares expired

     (37,567     (37,567     —          —     
  

 

 

   

 

 

   

 

 

   

 

 

 

Balance at June 2014

     3,494,327        —          3,237,700        256,627   
  

 

 

   

 

 

   

 

 

   

 

 

 

Share-Based Compensation and Related Tax Benefit Recognized in Consolidated Statements of Income

Share-based compensation and the related tax benefit recognized in our consolidated statements of income for fiscal 2014, 2013, and 2012 were as follows (in thousands):

 

     2014      2013      2012  

Cost of revenue

   $ 1,142       $ 911       $ 1,129   

Research and development

     18,455         15,775         15,509   

Selling, general, and administrative

     13,264         15,524         17,523   
  

 

 

    

 

 

    

 

 

 

Total

   $ 32,861       $ 32,210       $ 34,161   
  

 

 

    

 

 

    

 

 

 

Income tax benefit on share-based compensation

   $ 10,563       $ 9,202       $ 9,589   
  

 

 

    

 

 

    

 

 

 
Balance of Outstanding and Exercisable Stock Options

Certain stock option activity for fiscal 2014 and balances as of the end of fiscal 2014 were as follows:

 

     Stock
Option
Awards
Outstanding
    Weighted
Average
Exercise
Price
     Intrinsic
Value
(In thousands)
 

Balance at June 2013

     6,030,287      $ 26.15      

Granted

     554,108        52.64      

Exercised

     (2,757,509     26.01      

Forfeited

     (133,511     30.46      
  

 

 

      

Balance at June 2014

     3,693,375        30.08       $ 219,037   
  

 

 

      

 

 

 

Exercisable at June 2014

     2,598,694        25.89       $ 164,987   
  

 

 

      

 

 

 

Cash Received and Aggregate Intrinsic Value of Stock Options Exercised

Cash received and the aggregate intrinsic value of stock options exercised for fiscal 2014, 2013, and 2012 were as follows (in thousands):

 

     2014      2013      2012  

Cash received

   $ 71,721       $ 30,766       $ 28,939   

Aggregate intrinsic value

   $ 79,277       $ 23,559       $ 16,878   

Fair Value of Each Award Granted from Stock Option Plans

The fair value of each award granted under our share-based compensation plans for fiscal 2014, 2013, and 2012 was estimated at the date of grant using the Black-Scholes option pricing model, assuming no expected dividends and the following range of assumptions:

 

     2014    2013    2012

Expected volatility

   40.1% - 44.5%    41.8% - 48.9%    44.6% - 47.6%

Expected life in years

   3.8 -  4.3    3.5 -  4.6    4.6

Risk-free interest rate

   1.31% - 1.74%    0.62% -0.72%    0.7% - 1.3%

Fair value per award

   $18.72    $11.40    $10.70
Shares Purchased, Weighted Average Purchase Price, Cash Received, and Aggregate Intrinsic Value for ESPP

Shares purchased, weighted average purchase price, cash received, and the aggregate intrinsic value for employee stock purchase plan purchases in fiscal 2014, 2013, and 2012 were as follows (in thousands, except shares purchased and weighted average purchase price):

 

     2014      2013      2012  

Shares purchased

     409,084         327,465         242,225   

Weighted average purchase price

   $ 22.07       $ 20.36       $ 24.51   

Cash received

   $ 9,026       $ 6,668       $ 5,937   

Aggregate intrinsic value

   $ 12,815       $ 4,845       $ 1,534   
Fair Value of Each Award Granted under ESPP

The fair value of each award granted under our 2010 ESPP for fiscal 2014, 2013, and 2012 was estimated using the Black-Scholes option pricing model, assuming no expected dividends and the following range of assumptions:

 

     2014    2013    2012

Expected volatility

   43.8% - 49.3%    38.6% - 40.2%    34.0% - 37.3%

Expected life in years

   0.5 - 1.0    0.5 - 2.0    0.5 - 2.0

Risk-free interest rate

   0.05% - 0.13%    0.12% - 0.24%    0.1% - 0.3%

Fair value per award

   $15.04    $8.31    $8.93
Deferred stock units outstanding [Member]
 
Balance and Aggregate Intrinsic Value of Stock Units

DSU activity, including DSUs granted, delivered, and forfeited in fiscal 2014, and the balance and aggregate intrinsic value of DSUs as of the end of fiscal 2014 were as follows:

 

     DSU Awards
Outstanding
    Aggregate
Intrinsic
Value
(in thousands)
     Weighted
Average
Grant Date
Fair Value
 

Balance at June 30, 2013

     1,005,435         $ 29.24   

Granted

     647,927           52.83   

Delivered

     (506,937        30.48   

Forfeited

     (88,182        34.80   
  

 

 

      

Balance at June 30, 2014

     1,058,243      $ 94,586         42.62   
  

 

 

   

 

 

    

Market stock units outstanding [Member]
 
Fair Value of Each Award Granted from Stock Option Plans

The fair value of each MSU granted from our plans for fiscal 2014 and 2013 was estimated at the date of grant using the Monte Carlo simulation model, assuming no expected dividends and the following assumptions:

 

     2014     2013  

Expected volatility of company

     38.79     36.63

Expected volatility of SOX index

     24.95     28.57

Correlation coefficient

     0.53        0.58   

Expected life in years

     2.92        2.87   

Risk-free interest rate

     0.57     0.31

Fair value per award

   $ 60.62      $ 25.82   

Balance and Aggregate Intrinsic Value of Stock Units

MSU activity, including MSUs granted, delivered, and forfeited in fiscal 2014, and the balance and aggregate intrinsic value of MSUs as of the end of fiscal 2014 were as follows:

 

           Aggregate      Weighted  
           Intrinsic      Average  
     MSU Awards     Value      Grant Date  
     Outstanding     (in thousands)      Fair Value  

Balance at June 30, 2013

     67,400         $ 25.82   

Granted

     80,730           60.62   

Performance adjustment

     10,782           —     

Delivered

     (33,249        25.82   

Forfeited

     (5,333        25.82   
  

 

 

      

Balance at June 30, 2014

     120,330      $ 10,755         49.17