Annual report pursuant to Section 13 and 15(d)

Stock-Based Compensation (Tables)

v2.4.0.6
Stock-Based Compensation (Tables)
12 Months Ended
Jun. 30, 2012
Share-based Compensation [Abstract]  
Schedule of Combined Activity Under Equity Incentive Plan
The following table summarizes the combined activity under the equity incentive plans for the indicated periods:
(In thousands)
Available
For Grant
Balances as of June 30, 2009(1)
7,702

Shares added to 2004 Plan
11,000

Restricted stock units granted(2)
(5,213
)
Restricted stock units canceled (2)
1,140

Restricted stock units withheld for taxes(2)(3)
244

Options canceled/expired/forfeited
1,161

Plan shares expired(4)
(872
)
Balances as of June 30, 2010(1)
15,162

Restricted stock units granted(2)(5)
(4,062
)
Restricted stock units canceled(2)
367

Options canceled/expired/forfeited
1,141

Plan shares expired(4)
(1,054
)
Balances as of June 30, 2011(1)
11,554

Restricted stock units granted(2)(6)
(4,145
)
Restricted stock units canceled(2)
508

Options canceled/expired/forfeited
788

Plan shares expired(4)
(736
)
Balances as of June 30, 2012(1)
7,969


__________________  
(1)
Includes shares available for issuance under the 2004 Plan, as well as under the Company’s 1998 Outside Director Option Plan (the “Outside Director Plan”), which only permits the issuance of stock options to the Company’s non-employee members of the Board of Directors. As of June 30, 2012, 1.7 million shares were available for grant under the Outside Director Plan.
(2)
The number of restricted stock units provided in this row reflects the application of the 1.8x multiple described above.
(3)
Effective November 4, 2009, any shares withheld by the Company after such date in satisfaction of applicable withholding taxes upon the issuance, vesting or settlement of equity awards under the 2004 Plan are no longer available for future issuance under the 2004 Plan.
(4)
Represents the portion of shares listed as “Options canceled/expired/forfeited” above that were issued under the Company’s equity incentive plans other than the 2004 Plan or the Outside Director Plan. Because the Company is only currently authorized to issue equity awards under the 2004 Plan and the Outside Director Plan, any equity awards that are canceled, expire or are forfeited under any other Company equity incentive plans do not result in additional shares being available to the Company for future grant.
(5)
Includes 0.3 million restricted stock units granted to senior management during the fiscal year ended June 30, 2011 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such restricted stock units that are deemed to have been earned). As of June 30, 2012, it had not yet been determined the extent to which (if at all) the performance-based vesting criteria of such restricted stock units had been satisfied. Therefore, this line item includes all such performance-based restricted stock units granted during such fiscal year, reported at the maximum possible number of shares that may ultimately be issuable under such restricted stock units if all applicable performance-based and service-based criteria are fully satisfied.
(6)
Includes 0.2 million restricted stock units granted to senior management during the fiscal year ended June 30, 2012 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such restricted stock units that are deemed to have been earned). As of June 30, 2012, it had not yet been determined the extent to which (if at all) the performance-based vesting criteria of such restricted stock units had been satisfied. Therefore, this line item includes all such performance-based restricted stock units granted during such fiscal year, reported at the maximum possible number of shares that may ultimately be issuable under such restricted stock units if all applicable
Schedule of Stock-Based Compensation Expense
The following table shows pre-tax stock-based compensation expense for the indicated periods: 
 
Year ended June 30,
(In thousands)
2012
 
2011
 
2010
Stock-based compensation expense by:
 
 
 
 
 
Costs of revenues
$
13,710

 
$
13,935

 
$
14,275

Engineering, research and development
21,505

 
24,539

 
27,289

Selling, general and administrative
43,620

 
42,956

 
44,418

Total stock-based compensation expense
$
78,835

 
$
81,430

 
$
85,982

Schedule of Stock Option Activity
The following table summarizes the activity and weighted-average exercise price for stock options under all plans during the fiscal year ended June 30, 2012: 
Stock Options
Shares
(In thousands)
 
Weighted-Average
Exercise Price
Outstanding stock options as of June 30, 2011
7,675

 
$
45.38

Granted

 
$

Exercised
(3,043
)
 
$
42.50

Canceled/expired/forfeited
(788
)
 
$
46.85

Outstanding stock options as of June 30, 2012
3,844

 
$
47.36

Vested and exercisable as of June 30, 2012
3,843

 
$
47.36

Schedule of Intrinsic Value, Cash Received and Tax Benefits for Stock Option Exercises
The following table shows the total intrinsic value of options exercised, total cash received from employees and non-employee Board members as a result of stock option exercises and tax benefits realized by the Company in connection with these stock option exercises for the indicated periods: 
(In thousands)
Year ended June 30,
2012
 
2011
 
2010
Total intrinsic value of options exercised
$
23,395

 
$
19,408

 
$
1,217

Total cash received from employees and non-employee Board members as a result of stock option exercises
$
129,306

 
$
94,488

 
$
15,154

Tax benefits realized by the Company in connection with these exercises
$
7,867

 
$
6,653

 
$
447

Schedule of Stock-Based Compensation Capitalized as Inventory
The following table shows stock-based compensation capitalized as inventory as of the dates indicated below:
(In thousands)
As of June 30,
2012
 
2011
Inventory
$
7,692

 
$
6,701

Schedule of Restricted Stock Activity
The following table shows the applicable number of restricted stock units and weighted-average grant date fair value for restricted stock units granted, vested and released, withheld for taxes, and forfeited during the fiscal year ended June 30, 2012 and restricted stock units outstanding as of June 30, 2012 and 2011:
 
Restricted Stock Units
Shares
(In thousands) (1)
 
Weighted-Average
Grant Date
Fair Value
Outstanding restricted stock units as of June 30, 2011
6,540

 
$
33.56

Granted(2)
2,303

 
$
36.63

Vested and released
(1,421
)
 
$
39.69

Withheld for taxes
(722
)
 
$
39.71

Forfeited
(282
)
 
$
32.54

Outstanding restricted stock units as of June 30, 2012(2)
6,418

 
$
32.66

 __________________ 
(1)
Share numbers reflect actual shares subject to awarded restricted stock units. Under the terms of the 2004 Plan, each of the share numbers presented in this column is multiplied by 1.8 to calculate the impact on the share reserve under the 2004 Plan.
(2)
Includes 0.2 million restricted stock units granted to senior management during the fiscal year ended June 30, 2012 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such restricted stock units that are deemed to have been earned). As of June 30, 2012, it had not yet been determined the extent to which (if at all) the performance-based vesting criteria of such restricted stock units had been satisfied. Therefore, this line item includes all such performance-based restricted stock units, reported at the maximum possible number of shares that may ultimately be issuable under such restricted stock units if all applicable performance-based and service-based criteria are fully satisfied.
Schedule of Grant Date Fair Value, Weighted-Average Grant Date Fair Value, and Tax Benefits for Restricted Stock Units
The following table shows the grant date fair value after estimated forfeitures and weighted-average grant date fair value per unit for the restricted stock units granted and tax benefits realized by the Company in connection with vested and released restricted stock units for the indicated periods: 
(In thousands, except for weighted-average grant date fair value)
Year ended June 30,
2012
 
2011
 
2010
Grant date fair value after estimated forfeitures
$
60,102

 
$
45,915

 
$
64,230

Weighted-average grant date fair value per unit
$
36.63

 
$
31.24

 
$
34.36

Tax benefits realized by the Company in connection with vested and released restricted stock units
$
28,914

 
$
23,302

 
$
14,181

Schedule of Employee Stock Purchase Rights Valuation
The fair value of each purchase right under the ESPP was estimated on the date of grant using the Black-Scholes option valuation model and the straight-line attribution approach with the following weighted-average assumptions: 
 
Year ended June 30,
 
2012
 
2011
 
2010
Stock purchase plan:
 
 
 
 
 
Expected stock price volatility
36.0
%
 
38.0
%
 
35.0
%
Risk free interest rate
0.1
%
 
0.2
%
 
0.2
%
Dividend yield
3.2
%
 
3.1
%
 
1.6
%
Expected life of options (in years)
0.50

 
0.50

 
0.50

Schedule of Cash Received, Number of Shares Purchased, Tax Benefits and Weighted-Average Fair Value for the ESPP
The following table shows total cash received from employees for the issuance of shares under the ESPP, the number of shares purchased by employees through the ESPP, the tax benefits realized by the Company in connection with the disqualifying dispositions of shares purchased under the ESPP and the weighted-average fair value per share for the indicated periods:
(In thousands, except for weighted-average fair value per share)
Year ended June 30,
2012
 
2011
 
2010
Total cash received from employees for the issuance of shares under the ESPP
$
34,263

 
$
30,085

 
$
20,714

Number of shares purchased by employees through the ESPP
918

 
1,123

 
758

Tax benefits realized by the Company in connection with the disqualifying dispositions of shares purchased under the ESPP
$
2,206

 
$
2,194

 
$
994

Weighted-average fair value per share based on Black-Scholes model
$
10.02

 
$
7.41

 
$
8.51