Quarterly report pursuant to Section 13 or 15(d)

Equity and Long-Term Incentive Compensation Plans (Tables)

v2.4.0.8
Equity and Long-Term Incentive Compensation Plans (Tables)
3 Months Ended
Sep. 30, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Combined Activity Under Equity Incentive Plans
The following table summarizes the combined activity under the Company's equity incentive plans for the indicated period:
(In thousands)
Available
For Grant
Balances as of June 30, 2013(1)
6,696

Restricted stock units granted(2)(3)
(1,224
)
Restricted stock units canceled(2)
36

Options canceled/expired/forfeited
27

Plan shares expired(4)
(18
)
Balances as of September 30, 2013(1)
5,517

__________________ 
(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 September 30, 2013, 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)
Includes 0.3 million (reflected as 0.6 million shares in this table due to the application of the 1.8x multiple described above) restricted stock units granted to senior management during the three months ended September 30, 2013 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 September 30, 2013, 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 period, reported at the maximum possible number of shares that may ultimately be issuable under such restricted stock units if all applicable performance-based criteria are achieved at their maximum and all applicable service-based criteria are fully satisfied.
(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.
Schedule of Stock-based Compensation Expense
The following table shows pre-tax stock-based compensation expense for the indicated periods: 
 
Three months ended
September 30,
(In thousands)
2013
 
2012
Stock-based compensation expense by:
 
 
 
Costs of revenues
$
3,177

 
$
3,275

Engineering, research and development
5,408

 
5,463

Selling, general and administrative
10,634

 
10,246

Total stock-based compensation expense
$
19,219

 
$
18,984

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
September 30, 2013
 
As of
June 30, 2013
Inventory
$
8,382

 
$
8,098

Schedule of Stock Option Activity
The following table summarizes the activity and weighted-average exercise price for stock options under all plans during the three months ended September 30, 2013: 
Stock Options
Shares
(In thousands)
 
Weighted-Average
Exercise Price
Outstanding stock options as of June 30, 2013
1,663

 
$
48.97

Granted

 
$

Exercised
(820
)
 
$
49.98

Canceled/expired/forfeited
(27
)
 
$
50.42

Outstanding stock options as of September 30, 2013 (all outstanding and all vested and exercisable)
816

 
$
47.92

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: 
 
Three months ended
September 30,
(In thousands)
2013
 
2012
Total intrinsic value of options exercised
$
7,883

 
$
3,927

Total cash received from employees and non-employee Board members as a result of stock option exercises
$
41,047

 
$
23,250

Tax benefits realized by the Company in connection with these exercises
$
2,617

 
$
1,294

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 three months ended September 30, 2013 and restricted stock units outstanding as of September 30, 2013 and June 30, 2013: 
Restricted Stock Units
Shares
(In thousands) (1)
 
Weighted-Average
Grant Date
Fair Value
Outstanding restricted stock units as of June 30, 2013
5,374

 
$
34.39

Granted(2)
680

 
$
53.02

Vested and released
(1,457
)
 
$
32.46

Withheld for taxes
(814
)
 
$
32.46

Forfeited
(20
)
 
$
33.56

Outstanding restricted stock units as of September 30, 2013(2)
3,763

 
$
38.93

__________________ 
(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 0.3 million restricted stock units granted to senior management during the three months ended September 30, 2013 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 September 30, 2013, 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 criteria are achieved at their maximum and all applicable 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 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)
Three months ended
September 30,
2013
 
2012
Weighted-average grant date fair value per unit
$
53.02

 
$
51.65

Tax benefits realized by the Company in connection with vested and released restricted stock units
$
40,606

 
$
17,871

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: 
 
Three months ended
September 30,
 
2013
 
2012
Stock purchase plan:
 
 
 
Expected stock price volatility
29.1
%
 
30.2
%
Risk-free interest rate
0.1
%
 
0.1
%
Dividend yield
2.9
%
 
3.3
%
Expected life of options (in years)
0.5

 
0.5

Schedule of Tax Benefits Realized and Weighted-average fair value for the ESPP
The following table shows 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)
Three months ended
September 30,
2013
 
2012
Tax benefits realized by the Company in connection with the disqualifying dispositions of shares purchased under the ESPP
$
786

 
$
606

Weighted-average fair value per share based on Black-Scholes model
$
11.80

 
$
10.54