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Share-Based Compensation (Tables)
12 Months Ended
Jun. 27, 2015
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 2015, were as follows:

 

 

 

Awards

 

 

 

 

 

 

 

 

 

 

2010

 

 

 

Available

 

 

2001

 

 

2010

 

 

Employee

 

 

 

Under All

 

 

Incentive

 

 

Incentive

 

 

Stock

 

 

 

Share-Based

 

 

Compensation

 

 

Compensation

 

 

Purchase

 

 

 

Award Plans

 

 

Plan

 

 

Plan

 

 

Plan

 

Balance at June 2014

 

 

3,494,327

 

 

 

 

 

 

3,237,700

 

 

 

256,627

 

Additional shares authorized

 

 

368,638

 

 

 

 

 

 

 

 

 

368,638

 

Stock options granted

 

 

(526,665

)

 

 

 

 

 

(526,665

)

 

 

 

Deferred stock units granted

 

 

(480,382

)

 

 

 

 

 

(480,382

)

 

 

 

Market stock units granted

 

 

(70,300

)

 

 

 

 

 

(70,300

)

 

 

 

Market stock units performance adjustment

 

 

(46,712

)

 

 

 

 

 

(46,712

)

 

 

 

Purchases under employee stock purchase plan

 

 

(367,646

)

 

 

 

 

 

 

 

 

(367,646

)

Forfeited

 

 

189,152

 

 

 

281

 

 

 

188,871

 

 

 

 

Plan shares expired

 

 

(281

)

 

 

(281

)

 

 

 

 

 

 

Balance at June 2015

 

 

2,560,131

 

 

 

 

 

 

2,302,512

 

 

 

257,619

 

 

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 2015, 2014, and 2013 were as follows (in millions):

 

 

 

2015

 

 

2014

 

 

2013

 

Cost of revenue

 

$

1.4

 

 

$

1.1

 

 

$

0.9

 

Research and development

 

 

24.5

 

 

 

18.5

 

 

 

15.8

 

Selling, general, and administrative

 

 

18.2

 

 

 

13.3

 

 

 

15.5

 

Total

 

$

44.1

 

 

$

32.9

 

 

$

32.2

 

Income tax benefit on share-based compensation

 

$

12.5

 

 

$

10.6

 

 

$

9.2

 

 

Balance of Outstanding and Exercisable Stock Options

Certain stock option activity for fiscal 2015 and balances as of the end of fiscal 2015 were as follows:

 

 

 

Stock

 

 

Weighted

 

 

 

 

 

 

 

Option

 

 

Average

 

 

Intrinsic

 

 

 

Awards

 

 

Exercise

 

 

Value

 

 

 

Outstanding

 

 

Price

 

 

(In millions)

 

Balance at June 2014

 

 

3,693,375

 

 

$

30.08

 

 

 

 

 

Granted

 

 

526,665

 

 

 

75.89

 

 

 

 

 

Exercised

 

 

(1,264,446

)

 

 

28.62

 

 

 

 

 

Forfeited

 

 

(85,169

)

 

 

51.12

 

 

 

 

 

Balance at June 2015

 

 

2,870,425

 

 

 

38.50

 

 

$

137.6

 

Exercisable at June 2015

 

 

2,013,810

 

 

 

28.55

 

 

$

116.3

 

 

Cash Received and Aggregate Intrinsic Value of Stock Options Exercised

Cash received and the aggregate intrinsic value of stock options exercised for fiscal 2015, 2014, and 2013 were as follows (in millions):

 

 

 

2015

 

 

2014

 

 

2013

 

Cash received

 

$

36.2

 

 

$

71.7

 

 

$

30.8

 

Aggregate intrinsic value

 

$

69.9

 

 

$

79.3

 

 

$

23.6

 

 

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 2015, 2014, and 2013 was estimated at the date of grant using the Black-Scholes option pricing model, assuming no expected dividends and the following range of assumptions:

 

 

 

2015

 

 

2014

 

 

2013

 

Expected volatility

 

38.7% - 44.0%

 

 

40.1% - 44.5%

 

 

41.8% - 48.9%

 

Expected life in years

 

3.8 - 4.3

 

 

3.8 - 4.3

 

 

3.5 - 4.6

 

Risk-free interest rate

 

1.18% - 1.80%

 

 

1.31% - 1.74%

 

 

0.62% - 0.72%

 

Fair value per award

 

$

27.19

 

 

$

18.72

 

 

$

11.40

 

 

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 2015, 2014, and 2013 were as follows (in millions, except shares purchased and weighted average purchase price):

 

 

 

2015

 

 

2014

 

 

2013

 

Shares purchased

 

 

367,646

 

 

 

409,084

 

 

 

327,465

 

Weighted average purchase price

 

$

35.11

 

 

$

22.07

 

 

$

20.36

 

Cash received

 

$

12.9

 

 

$

9.0

 

 

$

6.7

 

Aggregate intrinsic value

 

$

13.7

 

 

$

12.8

 

 

$

4.8

 

 

Fair Value of Each Award Granted under ESPP

The fair value of each award granted under our 2010 ESPP for fiscal 2015, 2014, and 2013 was estimated using the Black-Scholes option pricing model, assuming no expected dividends and the following range of assumptions:

 

 

 

2015

 

 

2014

 

 

2013

 

Expected volatility

 

36.8% - 47.9%

 

 

43.8% - 49.3%

 

 

38.6% - 40.2%

 

Expected life in years

 

0.5 - 2.0

 

 

0.5 - 1.0

 

 

0.5 - 2.0

 

Risk-free interest rate

 

0.07% - 0.54%

 

 

0.05% - 0.13%

 

 

0.12% - 0.24%

 

Fair value per award

 

$

21.23

 

 

$

15.04

 

 

$

8.31

 

 

Deferred stock units outstanding [Member]  
Balance and Aggregate Intrinsic Value of Stock Units

DSU activity, including DSUs granted, delivered, and forfeited in fiscal 2015, and the balance and aggregate intrinsic value of DSUs as of the end of fiscal 2015 were as follows:

 

 

 

 

 

 

 

Aggregate

 

 

Weighted

 

 

 

 

 

 

 

Intrinsic

 

 

Average

 

 

 

DSU Awards

 

 

Value

 

 

Grant Date

 

 

 

Outstanding

 

 

(in millions)

 

 

Fair Value

 

Balance at June 30, 2014

 

 

1,058,243

 

 

 

 

 

 

$

42.62

 

Granted

 

 

480,382

 

 

 

 

 

 

 

71.33

 

Delivered

 

 

(585,808

)

 

 

 

 

 

 

40.71

 

Forfeited

 

 

(92,441

)

 

 

 

 

 

 

52.05

 

Balance at June 30, 2015

 

 

860,376

 

 

$

74.3

 

 

 

58.94

 

 

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 2015, 2014, and 2013 was estimated at the date of grant using the Monte Carlo simulation model, assuming no expected dividends and the following assumptions:

 

 

 

2015

 

 

2014

 

 

2013

 

Expected volatility of company

 

 

43.65

%

 

 

38.79

%

 

 

36.63

%

Expected volatility of SOX index

 

 

20.60

%

 

 

24.95

%

 

 

28.57

%

Correlation coefficient

 

 

0.43

 

 

0.53

 

 

 

0.58

 

Expected life in years

 

 

2.93

 

 

2.92

 

 

 

2.87

 

Risk-free interest rate

 

 

0.79

%

 

 

0.57

%

 

 

0.31

%

Fair value per award

 

$

66.48

 

 

$

60.62

 

 

$

25.82

 

 

Balance and Aggregate Intrinsic Value of Stock Units

MSU activity, including MSUs granted, delivered, and forfeited in fiscal 2015, and the balance and aggregate intrinsic value of MSUs as of the end of fiscal 2015 were as follows:

 

 

 

 

 

 

 

Aggregate

 

 

Weighted

 

 

 

 

 

 

 

Intrinsic

 

 

Average

 

 

 

MSU Awards

 

 

Value

 

 

Grant Date

 

 

 

Outstanding

 

 

(in millions)

 

 

Fair Value

 

Balance at June 30, 2014

 

 

120,330

 

 

 

 

 

 

$

49.17

 

Granted

 

 

70,300

 

 

 

 

 

 

 

66.48

 

Performance adjustment

 

 

46,712

 

 

 

 

 

 

 

 

Delivered

 

 

(93,424

)

 

 

 

 

 

 

45.87

 

Forfeited

 

 

(11,542

)

 

 

 

 

 

 

55.77

 

Balance at June 30, 2015

 

 

132,376

 

 

$

11.4

 

 

 

58.95