Annual report pursuant to Section 13 and 15(d)

Equity and Long-Term Incentive Compensation Plans (Tables)

v2.4.0.8
Equity and Long-Term Incentive Compensation Plans (Tables)
12 Months Ended
Jun. 30, 2014
Share-based Compensation [Abstract]  
Schedule of Combined Activity Under Equity Incentive Plan
The following table summarizes the combined activity under the Company's equity incentive plans for the indicated periods:
(In thousands)
Available
For Grant
Balances as of June 30, 2011
11,554

Restricted stock units granted(1)
(4,145
)
Restricted stock units canceled(1)
508

Options canceled/expired/forfeited
788

Plan shares expired(2)
(736
)
Balances as of June 30, 2012
7,969

Restricted stock units granted(1)(3)
(1,899
)
Restricted stock units canceled(1)
466

Options canceled/expired/forfeited
207

Plan shares expired(2)
(47
)
Balances as of June 30, 2013
6,696

Plan shares increased
2,900

Restricted stock units granted(1)(3)
(1,268
)
Restricted stock units canceled(1)
468

Options canceled/expired/forfeited
59

Plan shares expired(2)
(51
)
Balances as of June 30, 2014
8,804


__________________  
(1)
The number of restricted stock units provided in this row reflects the application of the award multiplier as described above (1.8x or 2.0x depending on the grant date of the applicable award).
(2)
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 and 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, expired or are forfeited under any other Company equity incentive plans do not result in additional shares being available to the Company for future grant.
(3)
Includes restricted stock units granted to senior management during the applicable fiscal year 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, 2014, 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 criteria are achieved at their maximum and all applicable service-based criteria are fully satisfied (i.e., 0.6 million shares for the fiscal year ended June 30, 2013 and 0.6 million shares for the fiscal year ended June 30, 2014, which in each case reflects the application of the 1.8x multiple described above that was in effect as of the applicable grant date).

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)
2014
 
2013
 
2012
Stock-based compensation expense by:
 
 
 
 
 
Costs of revenues
$
9,101

 
$
11,433

 
$
13,710

Engineering, research and development
16,397

 
19,346

 
21,505

Selling, general and administrative
35,442

 
39,305

 
43,620

Total stock-based compensation expense
$
60,940

 
$
70,084

 
$
78,835

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,
2014
 
2013
Inventory
$
8,278

 
$
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 fiscal year ended June 30, 2014: 
Stock Options
Shares
(In thousands)
 
Weighted-Average
Exercise Price
Outstanding stock options as of June 30, 2013
1,663

 
$
48.97

Granted

 
$

Exercised
(1,463
)
 
$
49.61

Canceled/expired/forfeited
(59
)
 
$
52.76

Outstanding stock options as of June 30, 2014 (all outstanding and all vested and exercisable)
141

 
$
40.70

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,
2014
 
2013
 
2012
Total intrinsic value of options exercised
$
18,022

 
$
15,884

 
$
23,395

Total cash received from employees and non-employee Board members as a result of stock option exercises
$
72,700

 
$
89,935

 
$
129,306

Tax benefits realized by the Company in connection with these exercises
$
5,708

 
$
5,223

 
$
7,867

Schedule of Restricted Stock Units 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, 2014 and restricted stock units outstanding as of June 30, 2014 and 2013: 
Restricted Stock Units
Shares
(In thousands) (1)
 
Weighted-Average
Grant Date
Fair Value
Outstanding restricted stock units as of June 30, 2013(2)
5,374

 
$
34.39

Granted(2)
702

 
$
53.28

Vested and released
(1,589
)
 
$
33.28

Withheld for taxes
(871
)
 
$
33.28

Forfeited
(260
)
 
$
37.15

Outstanding restricted stock units as of June 30, 2014(2)
3,356

 
$
38.95

 __________________ 
(1)
Share numbers reflect actual shares subject to awarded restricted stock units. As described above, under the terms of the 2004 Plan, the number of shares subject to each award reflected in this number is multiplied by either 1.8 or 2.0 (depending on the grant date of the award) to calculate the impact of the award on the share reserve under the 2004 Plan.
(2)
Includes restricted stock units granted to senior management during the applicable fiscal year 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, 2014, 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 criteria are achieved at their maximum and all applicable service-based criteria are fully satisfied (i.e., 0.3 million shares for each of the fiscal years ended June 30, 2013 and June 30, 2014).
Schedule of 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)
Year ended June 30,
2014
 
2013
 
2012
Weighted-average grant date fair value per unit
$
53.28

 
$
47.71

 
$
32.19

Tax benefits realized by the Company in connection with vested and released restricted stock units
$
44,298

 
$
29,204

 
$
28,914

Schedule of Employee Stock Purchase Plan
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,
 
2014
 
2013
 
2012
Stock purchase plan:
 
 
 
 
 
Expected stock price volatility
27.5
%
 
28.8
%
 
36.0
%
Risk-free interest rate
0.1
%
 
0.1
%
 
0.1
%
Dividend yield
2.9
%
 
3.2
%
 
3.2
%
Expected life (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,
2014
 
2013
 
2012
Total cash received from employees for the issuance of shares under the ESPP
$
39,675

 
$
36,186

 
$
34,263

Number of shares purchased by employees through the ESPP
796

 
877

 
918

Tax benefits realized by the Company in connection with the disqualifying dispositions of shares purchased under the ESPP
$
2,221

 
$
1,452

 
$
2,206

Weighted-average fair value per share based on Black-Scholes model
$
12.31

 
$
10.46

 
$
10.02