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Share-Based Compensation (Tables)
12 Months Ended
Jun. 27, 2020
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 2020, were as follows:

 

 

 

Awards

 

 

 

 

 

 

2019

 

 

2019

 

 

 

 

 

 

2010

 

 

 

Available

 

 

2019

 

 

Employee

 

 

Employee

 

 

2010

 

 

Employee

 

 

 

Under All

 

 

Incentive

 

 

Inducement

 

 

Stock

 

 

Incentive

 

 

Stock

 

 

 

Share-Based

 

 

Compensation

 

 

Equity

 

 

Purchase

 

 

Compensation

 

 

Purchase

 

 

 

Award Plans

 

 

Plan

 

 

Plan

 

 

Plan

 

 

Plan

 

 

Plan

 

Balance at June 2019

 

 

2,891,466

 

 

 

 

 

 

 

 

 

 

 

 

2,743,563

 

 

 

147,903

 

Additional shares authorized

 

 

3,508,175

 

 

 

1,230,000

 

 

 

650,000

 

 

 

1,500,000

 

 

 

 

 

 

128,175

 

Transferred between plans

 

 

 

 

 

705,452

 

 

 

 

 

 

 

 

 

(705,452

)

 

 

 

Stock options granted

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Restricted stock units granted

 

 

(742,586

)

 

 

(320,032

)

 

 

(92,813

)

 

 

 

 

 

(329,741

)

 

 

 

Market stock units granted

 

 

(359,336

)

 

 

(140,381

)

 

 

(187,958

)

 

 

 

 

 

(30,997

)

 

 

 

Performance stock units granted

 

 

(335,966

)

 

 

(130,110

)

 

 

(20,449

)

 

 

 

 

 

(185,407

)

 

 

 

Performance stock units performance adjustment

 

 

10,242

 

 

 

 

 

 

 

 

 

 

 

 

10,242

 

 

 

 

Market stock units performance adjustment

 

 

58,707

 

 

 

 

 

 

 

 

 

 

 

 

58,707

 

 

 

 

Purchases under employee stock purchase plan

 

 

(346,502

)

 

 

 

 

 

 

 

 

(71,029

)

 

 

 

 

 

(275,473

)

Forfeited

 

 

1,186,383

 

 

 

67,472

 

 

 

 

 

 

 

 

 

1,118,911

 

 

 

 

Fungible share ratio adjustment

 

 

(308,424

)

 

 

 

 

 

 

 

 

 

 

 

(308,424

)

 

 

 

Plan shares no longer available for grant

 

 

(2,371,402

)

 

 

 

 

 

 

 

 

 

 

 

(2,371,402

)

 

 

 

Plan shares cancelled

 

 

(605

)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

(605

)

Balance at June 2020

 

 

3,190,152

 

 

 

1,412,401

 

 

 

348,780

 

 

 

1,428,971

 

 

 

 

 

 

 

 

Share-Based Compensation, Cash-Based Awards and Related Tax Benefit Recognized in Condensed Consolidated Statements of Operations

Share-based compensation and the related tax benefit recognized in our consolidated statements of income for fiscal 2020, 2019, and 2018 were as follows (in millions):

 

 

 

2020

 

 

2019

 

 

2018

 

Cost of revenue

 

$

2.1

 

 

$

3.1

 

 

$

3.2

 

Research and development

 

 

32.3

 

 

 

33.7

 

 

 

38.6

 

Selling, general, and administrative

 

 

26.0

 

 

 

22.2

 

 

 

29.5

 

Total

 

$

60.4

 

 

$

59.0

 

 

$

71.3

 

Income tax benefit on share-based compensation

 

$

6.3

 

 

$

4.3

 

 

$

11.1

 

Schedule of Stock Option Activity

Certain stock option activity for fiscal 2020 and balances as of the end of fiscal 2020 were as follows:

 

 

 

Stock

 

 

Weighted

 

 

 

 

 

 

 

Option

 

 

Average

 

 

Intrinsic

 

 

 

Awards

 

 

Exercise

 

 

Value

 

 

 

Outstanding

 

 

Price

 

 

(In millions)

 

Balance at June 2019

 

 

1,191,929

 

 

$

59.07

 

 

 

 

 

Exercised

 

 

(542,776

)

 

 

44.03

 

 

 

 

 

Forfeited

 

 

(8,117

)

 

 

50.70

 

 

 

 

 

Expired

 

 

(311,250

)

 

 

74.16

 

 

 

 

 

Balance at June 2020

 

 

329,786

 

 

 

69.78

 

 

$

0.4

 

Exercisable at June 2020

 

 

329,057

 

 

 

69.83

 

 

$

0.4

 

Cash Received and Aggregate Intrinsic Value of Stock Options Exercised

Cash received and the aggregate intrinsic value of stock options exercised for fiscal 2020, 2019, and 2018 were as follows (in millions):

 

 

 

2020

 

 

2019

 

 

2018

 

Cash received

 

$

23.9

 

 

$

5.2

 

 

$

16.7

 

Aggregate intrinsic value

 

$

10.8

 

 

$

2.4

 

 

$

15.2

 

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 2020, 2019, and 2018 were as follows (in millions, except shares purchased and weighted average purchase price):

 

 

 

2020

 

 

2019

 

 

2018

 

Shares purchased

 

 

346,502

 

 

 

544,886

 

 

 

486,263

 

Weighted average purchase price

 

$

30.50

 

 

$

29.48

 

 

$

32.07

 

Cash received

 

$

10.6

 

 

$

16.1

 

 

$

15.6

 

Aggregate intrinsic value

 

$

10.1

 

 

$

2.8

 

 

$

3.9

 

Fair Value of Each Award Granted under ESPP

The fair value of each award granted under our 2019 ESPP and our 2010 ESPP for fiscal 2020, 2019, and 2018 was estimated using the Black-Scholes option pricing model, assuming no expected dividends and the following range of assumptions:

 

 

 

2020

 

 

2019

 

 

2018

 

Expected volatility

 

43.8%-45.4%

 

 

43.8%-44.2%

 

 

43.7% - 49.8%

 

Expected life in years

 

0.25 - .75

 

 

0.5 - 1.5

 

 

0.5 - 2.0

 

Risk-free interest rate

 

1.62% - 2.43%

 

 

2.43%-2.68%

 

 

1.42% - 2.45%

 

Fair value per award

 

$

15.48

 

 

$

15.63

 

 

$

13.54

 

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 2018 was estimated at the date of grant using the Black-Scholes option pricing model, assuming no expected dividends and the following range of assumptions:

 

 

 

2018

 

Expected volatility

 

46.2%

 

Expected life in years

 

4.4

 

Risk-free interest rate

 

1.8%

 

Fair value per award

 

$

18.04

 

 

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 2020, 2019, and 2018 was estimated at the date of grant using the Monte Carlo simulation model, assuming no expected dividends and the following assumptions:

 

 

 

2020

 

2019

 

 

2018

 

Expected volatility of company

 

45.46% - 52.55%

 

 

50.58

%

 

49.16% - 50.60%

 

Expected volatility of Index

 

24.64% - 33.44%

 

 

23.40

%

 

22.37% - 22.52%

 

Correlation coefficient

 

0.53 - 0.58

 

 

0.51

 

 

0.52 - 0.53

 

Expected life in years

 

2.50 - 4.00

 

 

2.88

 

 

2.80 - 2.92

 

Risk-free interest rate

 

0.26% - 1.52%

 

 

2.92

%

 

1.72% - 1.88%

 

Fair value per award

 

$55.52 - $100.38

 

$27.70 - $85.52

 

 

$48.22 - $59.19

 

Phantom Stock Unit [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Share-Based Compensation, Cash-Based Awards and Related Tax Benefit Recognized in Condensed Consolidated Statements of Operations

 

Included in the preceding table is share-based compensation for our cash-settled phantom stock units, which we granted in October 2019 (see Phantom Stock Units below) (in millions):

 

 

 

2020

 

 

Cost of revenue

 

$

0.2

 

 

Research and development

 

 

9.1

 

 

Selling, general, and administrative

 

 

1.8

 

 

Total

 

$

11.1

 

 

Schedule of Stock Units Activity

Phantom stock activity was as follows:

 

 

 

 

 

 

 

Aggregate

 

 

 

Phantom

 

 

Intrinsic

 

 

 

Stock Units

 

 

Value

 

 

 

Outstanding

 

 

(in millions)

 

Granted

 

 

953,305

 

 

 

 

 

Forfeited

 

 

(164,192

)

 

 

 

 

Balance as of June 2020

 

 

789,113

 

 

$

44.4

 

Deferred stock units outstanding [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Schedule of Stock Units Activity

RSU activity, including RSUs granted, delivered, and forfeited in fiscal 2020, and the balance and aggregate intrinsic value of RSUs as of the end of fiscal 2020 was as follows:

 

 

 

 

 

 

 

Aggregate

 

 

Weighted

 

 

 

 

 

 

 

Intrinsic

 

 

Average

 

 

 

RSU Awards

 

 

Value

 

 

Grant Date

 

 

 

Outstanding

 

 

(in millions)

 

 

Fair Value

 

Balance at June 2019

 

 

1,878,853

 

 

 

 

 

 

$

40.90

 

Granted

 

 

742,586

 

 

 

 

 

 

 

46.26

 

Delivered

 

 

(845,550

)

 

 

 

 

 

 

43.75

 

Forfeited

 

 

(415,565

)

 

 

 

 

 

 

39.77

 

Balance at June 2020

 

 

1,360,324

 

 

$

76.5

 

 

 

42.40

 

Market stock units outstanding [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Schedule of Stock Units Activity

MSU activity, including MSUs granted, delivered, and forfeited in fiscal 2020, and the balance and aggregate intrinsic value of MSUs as of the end of fiscal 2020 were as follows:

 

 

 

 

 

 

 

Aggregate

 

 

Weighted

 

 

 

 

 

 

 

Intrinsic

 

 

Average

 

 

 

MSU Awards

 

 

Value

 

 

Grant Date

 

 

 

Outstanding

 

 

(in millions)

 

 

Fair Value

 

Balance at June 2019

 

 

210,732

 

 

 

 

 

 

$

52.15

 

Granted

 

 

359,336

 

 

 

 

 

 

 

57.51

 

Performance adjustment

 

 

(58,707

)

 

 

 

 

 

 

 

Delivered

 

 

(23,018

)

 

 

 

 

 

 

52.39

 

Forfeited

 

 

(96,811

)

 

 

 

 

 

 

52.46

 

Balance at June 2020

 

 

391,532

 

 

$

22.0

 

 

 

56.93

 

Performance stock units outstanding [Member]  
Share Based Compensation Arrangement By Share Based Payment Award [Line Items]  
Schedule of Stock Units Activity

During the fiscal year ended June 27, 2020, PSU activity, including PSUs granted, delivered, and forfeited, and the balance and aggregate intrinsic value of PSUs as of June 27, 2020 was as follows:

 

 

 

 

 

 

 

Aggregate

 

 

Weighted

 

 

 

 

 

 

 

Intrinsic

 

 

Average

 

 

 

PSU Awards

 

 

Value

 

 

Grant Date

 

 

 

Outstanding

 

 

(in millions)

 

 

Fair Value

 

Balance at June 2019

 

 

192,618

 

 

 

 

 

 

$

38.35

 

Granted

 

 

335,966

 

 

 

 

 

 

 

41.90

 

Performance adjustment

 

 

604

 

 

 

 

 

 

 

 

Delivered

 

 

(61,668

)

 

 

 

 

 

 

39.63

 

Forfeited

 

 

(133,672

)

 

 

 

 

 

 

38.56

 

Balance at June 2020

 

 

333,848

 

 

$

18.8

 

 

 

41.61