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Share-Based Compensation (Tables)
12 Months Ended
Jun. 25, 2016
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
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 2016, 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 2015

 

 

2,560,131

 

 

 

 

 

 

2,302,512

 

 

 

257,619

 

Additional shares authorized

 

 

375,296

 

 

 

 

 

 

 

 

 

375,296

 

Stock options granted

 

 

(440,362

)

 

 

 

 

 

(440,362

)

 

 

 

Deferred stock units granted

 

 

(704,225

)

 

 

 

 

 

(704,225

)

 

 

 

Market stock units granted

 

 

(77,700

)

 

 

 

 

 

(77,700

)

 

 

 

Market stock units performance adjustment

 

 

(39,273

)

 

 

 

 

 

(39,273

)

 

 

 

Purchases under employee stock purchase plan

 

 

(302,781

)

 

 

 

 

 

 

 

 

(302,781

)

Forfeited

 

 

87,315

 

 

 

100

 

 

 

87,215

 

 

 

 

Plan shares expired

 

 

(100

)

 

 

(100

)

 

 

 

 

 

 

Balance at June 2016

 

 

1,458,301

 

 

 

 

 

 

1,128,167

 

 

 

330,134

 

 

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 2016, 2015, and 2014 were as follows (in millions):

 

 

 

2016

 

 

2015

 

 

2014

 

Cost of revenue

 

$

1.8

 

 

$

1.4

 

 

$

1.1

 

Research and development

 

 

30.6

 

 

 

24.5

 

 

 

18.5

 

Selling, general, and administrative

 

 

24.4

 

 

 

18.2

 

 

 

13.3

 

Total

 

$

56.8

 

 

$

44.1

 

 

$

32.9

 

Income tax benefit on share-based compensation

 

$

14.7

 

 

$

12.5

 

 

$

10.6

 

 

Balance of Outstanding and Exercisable Stock Options

Certain stock option activity for fiscal 2016 and balances as of the end of fiscal 2016 were as follows:

 

 

 

Stock

 

 

Weighted

 

 

 

 

 

 

 

Option

 

 

Average

 

 

Intrinsic

 

 

 

Awards

 

 

Exercise

 

 

Value

 

 

 

Outstanding

 

 

Price

 

 

(In millions)

 

Balance at June 2015

 

 

2,870,425

 

 

$

38.50

 

 

 

 

 

Granted

 

 

440,362

 

 

 

79.05

 

 

 

 

 

Exercised

 

 

(570,156

)

 

 

29.22

 

 

 

 

 

Forfeited

 

 

(29,089

)

 

 

70.18

 

 

 

 

 

Balance at June 2016

 

 

2,711,542

 

 

 

49.69

 

 

$

39.9

 

Exercisable at June 2016

 

 

1,994,854

 

 

 

36.29

 

 

$

39.7

 

 

Cash Received and Aggregate Intrinsic Value of Stock Options Exercised

Cash received and the aggregate intrinsic value of stock options exercised for fiscal 2016, 2015, and 2014 were as follows (in millions):

 

 

 

2016

 

 

2015

 

 

2014

 

Cash received

 

$

16.6

 

 

$

36.2

 

 

$

71.7

 

Aggregate intrinsic value

 

$

29.7

 

 

$

69.9

 

 

$

79.3

 

 

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 2016, 2015, and 2014 were as follows (in millions, except shares purchased and weighted average purchase price):

 

 

 

2016

 

 

2015

 

 

2014

 

Shares purchased

 

 

302,781

 

 

 

367,646

 

 

 

409,084

 

Weighted average purchase price

 

$

52.42

 

 

$

35.11

 

 

$

22.07

 

Cash received

 

$

15.8

 

 

$

12.9

 

 

$

9.0

 

Aggregate intrinsic value

 

$

7.0

 

 

$

13.7

 

 

$

12.8

 

 

Fair Value of Each Award Granted under ESPP

The fair value of each award granted under our 2010 ESPP for fiscal 2016, 2015, and 2014 was estimated using the Black-Scholes option pricing model, assuming no expected dividends and the following range of assumptions:

 

 

 

2016

 

 

2015

 

 

2014

 

Expected volatility

 

37.4% - 40.6%

 

 

36.8% - 47.9%

 

 

43.8% - 49.3%

 

Expected life in years

 

0.5 - 1.0

 

 

0.5 - 2.0

 

 

0.5 - 1.0

 

Risk-free interest rate

 

0.33% - 0.54%

 

 

0.07% - 0.54%

 

 

0.05% - 0.13%

 

Fair value per award

 

$

24.52

 

 

$

21.23

 

 

$

15.04

 

 

Market stock units outstanding [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Balance and Aggregate Intrinsic Value of Stock Units

MSU activity, including MSUs granted, delivered, and forfeited in fiscal 2016, and the balance and aggregate intrinsic value of MSUs as of the end of fiscal 2016 were as follows:

 

 

 

 

 

 

 

Aggregate

 

 

Weighted

 

 

 

 

 

 

 

Intrinsic

 

 

Average

 

 

 

MSU Awards

 

 

Value

 

 

Grant Date

 

 

 

Outstanding

 

 

(in millions)

 

 

Fair Value

 

Balance at June 30, 2015

 

 

132,376

 

 

 

 

 

 

$

58.95

 

Granted

 

 

77,700

 

 

 

 

 

 

 

126.74

 

Performance adjustment

 

 

39,273

 

 

 

 

 

 

 

 

Delivered

 

 

(103,199

)

 

 

 

 

 

 

53.13

 

Balance at June 30, 2016

 

 

146,150

 

 

$

7.6

 

 

 

97.54

 

 

Deferred stock units outstanding [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Balance and Aggregate Intrinsic Value of Stock Units

DSU activity, including DSUs granted, delivered, and forfeited in fiscal 2016, and the balance and aggregate intrinsic value of DSUs as of the end of fiscal 2016 were as follows:

 

 

 

 

 

 

 

Aggregate

 

 

Weighted

 

 

 

 

 

 

 

Intrinsic

 

 

Average

 

 

 

DSU Awards

 

 

Value

 

 

Grant Date

 

 

 

Outstanding

 

 

(in millions)

 

 

Fair Value

 

Balance at June 30, 2015

 

 

860,376

 

 

 

 

 

 

$

58.94

 

Granted

 

 

704,225

 

 

 

 

 

 

 

83.49

 

Delivered

 

 

(500,394

)

 

 

 

 

 

 

53.53

 

Forfeited

 

 

(58,226

)

 

 

 

 

 

 

73.82

 

Balance at June 30, 2016

 

 

1,005,981

 

 

$

52.5

 

 

 

77.93

 

 

Stock Option Plans [Member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Fair Value of Each Award Granted

The fair value of each award granted under our share-based compensation plans for fiscal 2016, 2015, and 2014 was estimated at the date of grant using the Black-Scholes option pricing model, assuming no expected dividends and the following range of assumptions:

 

 

 

2016

 

 

2015

 

 

2014

 

Expected volatility

 

40.4% - 44.2%

 

 

38.7% - 44.0%

 

 

40.1% - 44.5%

 

Expected life in years

 

3.8 - 4.6

 

 

3.8 - 4.3

 

 

3.8 - 4.3

 

Risk-free interest rate

 

1.22% - 1.72%

 

 

1.18% - 1.80%

 

 

1.31% - 1.74%

 

Fair value per award

 

$

28.30

 

 

$

27.19

 

 

$

18.72

 

 

Incentive Compensation Plans [member]  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Fair Value of Each Award Granted

The fair value of each MSU granted from our plans for fiscal 2016, 2015, and 2014 was estimated at the date of grant using the Monte Carlo simulation model, assuming no expected dividends and the following assumptions:

 

 

 

2016

 

 

2015

 

 

2014

 

Expected volatility of company

 

 

45.57

%

 

 

43.65

%

 

 

38.79

%

Expected volatility of SOX index

 

 

19.65

%

 

 

20.60

%

 

 

24.95

%

Correlation coefficient

 

 

0.42

 

 

 

0.43

 

 

0.53

 

Expected life in years

 

 

2.94

 

 

 

2.93

 

 

2.92

 

Risk-free interest rate

 

 

0.92

%

 

 

0.79

%

 

 

0.57

%

Fair value per award

 

$

126.74

 

 

$

66.48

 

 

$

60.62