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Share-Based Compensation (Tables)
12 Months Ended
Jun. 24, 2017
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 2017, were as follows:

 

 

 

Awards

 

 

 

 

 

 

2010

 

 

 

Available

 

 

2010

 

 

Employee

 

 

 

Under All

 

 

Incentive

 

 

Stock

 

 

 

Share-Based

 

 

Compensation

 

 

Purchase

 

 

 

Award Plans

 

 

Plan

 

 

Plan

 

Balance at June 2016

 

 

1,458,301

 

 

 

1,128,167

 

 

 

330,134

 

Additional shares authorized

 

 

2,952,121

 

 

 

2,600,000

 

 

 

352,121

 

Stock options granted

 

 

(356,107

)

 

 

(356,107

)

 

 

 

Deferred stock units granted

 

 

(922,784

)

 

 

(922,784

)

 

 

 

Market stock units granted

 

 

(105,800

)

 

 

(105,800

)

 

 

 

Market stock units performance adjustment

 

 

55,739

 

 

 

55,739

 

 

 

 

Purchases under employee stock purchase plan

 

 

(302,085

)

 

 

 

 

 

(302,085

)

Forfeited

 

 

355,855

 

 

 

355,855

 

 

 

 

Fungible Shares Ratio Adjustment

 

 

(188,171

)

 

 

(188,171

)

 

 

 

Plan shares expired

 

 

 

 

 

 

 

 

 

Balance at June 2017

 

 

2,947,069

 

 

 

2,566,899

 

 

 

380,170

 

 

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 2017, 2016, and 2015 were as follows (in millions):

 

 

 

2017

 

 

2016

 

 

2015

 

Cost of revenue

 

$

2.2

 

 

$

1.8

 

 

$

1.4

 

Research and development

 

 

33.1

 

 

 

30.6

 

 

 

24.5

 

Selling, general, and administrative

 

 

26.5

 

 

 

24.4

 

 

 

18.2

 

Total

 

$

61.8

 

 

$

56.8

 

 

$

44.1

 

Income tax benefit on share-based compensation

 

$

16.1

 

 

$

14.7

 

 

$

12.5

 

 

Balance of Outstanding and Exercisable Stock Options

Certain stock option activity for fiscal 2017 and balances as of the end of fiscal 2017 were as follows:

 

 

 

Stock

 

 

Weighted

 

 

 

 

 

 

 

Option

 

 

Average

 

 

Intrinsic

 

 

 

Awards

 

 

Exercise

 

 

Value

 

 

 

Outstanding

 

 

Price

 

 

(In millions)

 

Balance at June 2016

 

 

2,711,542

 

 

$

46.69

 

 

 

 

 

Granted

 

 

356,107

 

 

 

53.24

 

 

 

 

 

Exercised

 

 

(404,738

)

 

 

26.48

 

 

 

 

 

Forfeited

 

 

(105,827

)

 

 

70.81

 

 

 

 

 

Expired

 

 

(66,916

)

 

 

72.57

 

 

 

 

 

Balance at June 2017

 

 

2,490,168

 

 

 

49.20

 

 

$

41.1

 

Exercisable at June 2017

 

 

1,911,046

 

 

 

44.28

 

 

$

39.1

 

 

Cash Received and Aggregate Intrinsic Value of Stock Options Exercised

Cash received and the aggregate intrinsic value of stock options exercised for fiscal 2017, 2016, and 2015 were as follows (in millions):

 

 

 

2017

 

 

2016

 

 

2015

 

Cash received

 

$

10.7

 

 

$

16.6

 

 

$

36.2

 

Aggregate intrinsic value

 

$

12.3

 

 

$

29.7

 

 

$

69.9

 

 

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 2017, 2016, and 2015 were as follows (in millions, except shares purchased and weighted average purchase price):

 

 

 

2017

 

 

2016

 

 

2015

 

Shares purchased

 

 

302,085

 

 

 

302,781

 

 

 

367,646

 

Weighted average purchase price

 

$

46.74

 

 

$

52.42

 

 

$

35.11

 

Cash received

 

$

14.1

 

 

$

15.8

 

 

$

12.9

 

Aggregate intrinsic value

 

$

2.7

 

 

$

7.0

 

 

$

13.7

 

 

Fair Value of Each Award Granted under ESPP

The fair value of each award granted under our 2010 ESPP for fiscal 2017, 2016, and 2015 was estimated using the Black-Scholes option pricing model, assuming no expected dividends and the following range of assumptions:

 

 

 

2017

 

 

2016

 

 

2015

 

Expected volatility

 

38.4 - 54.9%

 

 

37.4% - 40.6%

 

 

36.8% - 47.9%

 

Expected life in years

 

0.5 - 2.0

 

 

0.5 - 1.0

 

 

0.5 - 2.0

 

Risk-free interest rate

 

0.62% - 1.20%

 

 

0.33% - 0.54%

 

 

0.07% - 0.54%

 

Fair value per award

 

$

20.44

 

 

$

24.52

 

 

$

21.23

 

 

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 2017, and the balance and aggregate intrinsic value of MSUs as of the end of fiscal 2017 were as follows:

 

 

 

 

 

 

 

Aggregate

 

 

Weighted

 

 

 

 

 

 

 

Intrinsic

 

 

Average

 

 

 

MSU Awards

 

 

Value

 

 

Grant Date

 

 

 

Outstanding

 

 

(in millions)

 

 

Fair Value

 

Balance at June 30, 2016

 

 

146,150

 

 

 

 

 

 

$

97.54

 

Granted

 

 

105,800

 

 

 

 

 

 

 

67.51

 

Performance adjustment

 

 

(55,739

)

 

 

 

 

 

 

 

Delivered

 

 

(10,339

)

 

 

 

 

 

 

60.62

 

Forfeited

 

 

(27,276

)

 

 

 

 

 

 

91.88

 

Balance at June 30, 2017

 

 

158,596

 

 

$

9.5

 

 

 

82.88

 

 

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 2017, and the balance and aggregate intrinsic value of DSUs as of the end of fiscal 2017 were as follows:

 

 

 

 

 

 

 

Aggregate

 

 

Weighted

 

 

 

 

 

 

 

Intrinsic

 

 

Average

 

 

 

DSU Awards

 

 

Value

 

 

Grant Date

 

 

 

Outstanding

 

 

(in millions)

 

 

Fair Value

 

Balance at June 30, 2016

 

 

1,005,981

 

 

 

 

 

 

$

77.93

 

Granted

 

 

922,784

 

 

 

 

 

 

 

62.62

 

Delivered

 

 

(452,131

)

 

 

 

 

 

 

73.36

 

Forfeited

 

 

(155,836

)

 

 

 

 

 

 

75.14

 

Balance at June 30, 2017

 

 

1,320,798

 

 

$

79.2

 

 

 

69.14

 

 

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 2017, 2016, and 2015 was estimated at the date of grant using the Black-Scholes option pricing model, assuming no expected dividends and the following range of assumptions:

 

 

 

2017

 

 

2016

 

 

2015

 

Expected volatility

 

45.2% - 48.3%

 

 

40.4% - 44.2%

 

 

38.7% - 44.0%

 

Expected life in years

 

3.8 - 4.6

 

 

3.8 - 4.6

 

 

3.8 - 4.3

 

Risk-free interest rate

 

1.03% - 1.94%

 

 

1.22% - 1.72%

 

 

1.18% - 1.80%

 

Fair value per award

 

$

21.08

 

 

$

28.30

 

 

$

27.19

 

 

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 2017, 2016, and 2015 was estimated at the date of grant using the Monte Carlo simulation model, assuming no expected dividends and the following assumptions:

 

 

 

2017

 

 

2016

 

 

2015

 

Expected volatility of company

 

 

52.54

%

 

 

45.57

%

 

 

43.65

%

Expected volatility of SOX index

 

 

21.23

%

 

 

19.65

%

 

 

20.60

%

Correlation coefficient

 

 

0.45

 

 

 

0.42

 

 

 

0.43

 

Expected life in years

 

 

2.92

 

 

 

2.94

 

 

 

2.93

 

Risk-free interest rate

 

 

1.01

%

 

 

0.92

%

 

 

0.79

%

Fair value per award

 

$

67.51

 

 

$

126.74

 

 

$

66.48