Stock-Based Compensation
 12 Months Ended
Jun. 29, 2013
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stock-Based Compensation [Text Block]
STOCK-BASED COMPENSATION

At June 29, 2013, the Company had five stock option plans and one employee stock purchase plan, including the Company's 1996 Stock Incentive Plan (the "1996 Plan"), 1993 Officer and Director Stock Option Plan, 1987 Stock Option Plan, 1987 Supplemental Stock Option Plan, Supplemental Non-employee Stock Option Plan and 2008 Employee Stock Purchase Plan ("2008 ESPP").

The following tables show total stock-based compensation expense by type of award, and the resulting tax effect, included in the Consolidated Statements of Income for fiscal years 2013, 2012 and 2011:

 
For the Year Ended
 
June 29,
2013
 
Stock Options
 
Restricted Stock Units
 
Employee Stock Purchase Plan
 
Total
 
(in thousands)
Cost of goods sold
$
1,532

 
$
8,862

 
$
2,210

 
$
12,604

Research and development
7,230

 
31,475

 
5,441

 
44,146

Selling, general and administrative
5,331

 
19,523

 
2,204

 
27,058

Pre-tax stock-based compensation expense
$
14,093

 
$
59,860

 
$
9,855

 
$
83,808

Less: income tax effect
 
 
 
 
 
 
14,745

Net stock-based compensation expense
 
 
 
 
 
 
$
69,063


 
For the Year Ended
 
June 30,
2012
 
Stock Options
 
Restricted Stock Units
 
Employee Stock Purchase Plan
 
Total
 
(in thousands)
Cost of goods sold
$
2,014

 
$
9,387

 
$
1,738

 
$
13,139

Research and development
7,844

 
35,699

 
5,525

 
49,068

Selling, general and administrative
6,436

 
19,493

 
1,731

 
27,660

Pre-tax stock-based compensation expense
$
16,294

 
$
64,579

 
$
8,994

 
$
89,867

Less: income tax effect
 
 
 
 
 
 
20,215

Net stock-based compensation expense
 
 
 
 
 
 
$
69,652


 
For the Year Ended
 
June 25,
2011
 
Stock Options
 
Restricted Stock Units
 
Employee Stock Purchase Plan
 
Total
 
(in thousands)
Cost of goods sold
$
2,625

 
$
9,819

 
$
1,557

 
$
14,001

Research and development
11,325

 
36,926

 
5,435

 
53,686

Selling, general and administrative
6,120

 
18,944

 
1,546

 
26,610

Pre-tax stock-based compensation expense
$
20,070

 
$
65,689

 
$
8,538

 
$
94,297

Less: income tax effect
 
 
 
 
 
 
25,457

Net stock-based compensation expense
 
 
 
 
 
 
$
68,840


Fair Value

The fair value of share-based awards granted to employees under the Company's 1996 Plan and 2008 ESPP is estimated on the date of grant using the Black-Scholes option valuation model. Expected volatilities are based on the historical volatilities from its traded common stock over a period equal to the expected term. The Company is utilizing the simplified method under ASC 718 to estimate expected holding periods. The risk-free interest rate is based on the U.S. Treasury yield. The Company determines the dividend yield by dividing the annualized dividends per share by the prior quarter's average stock price. The result is analyzed by the Company to decide whether it represents expected future dividend yield. As required by ASC 718, the Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis.
The fair value of each award granted in fiscal years 2013, 2012 and 2011 has been estimated at the date of grant using the Black-Scholes option valuation model and the following weighted-average assumptions:

 
Stock Options For the Year Ended
 
6/29/2013
 
6/30/2012
 
6/25/2011
Expected holding period (in years) 
5.3

 
5.1

 
5.2

Risk-free interest rate
0.7
%
 
1.2
%
 
1.7
%
Expected stock price volatility 
37.7
%
 
36.9
%
 
37.1
%
Dividend yield 
3.3
%
 
3.2
%
 
4.2
%
 
 
 
 
 
 
 
ESPP For the Year Ended
 
6/29/2013
 
6/30/2012
 
6/25/2011
Expected holding period (in years) 
0.5

 
0.5

 
0.5

Risk-free interest rate
0.1
%
 
0.1
%
 
0.1
%
Expected stock price volatility 
24.0
%
 
25.0
%
 
24.7
%
Dividend yield 
3.1
%
 
3.2
%
 
3.3
%


The weighted-average fair value of stock options granted was $6.69, $5.91 and $4.02 per share for fiscal years 2013, 2012 and 2011, respectively. The weighted-average fair value of RSUs granted was $25.30, $20.80 and $16.61 per share for fiscal years 2013, 2012 and 2011, respectively.
Stock Options

1996 Stock Incentive Plan

The Company's 1996 Plan, which was previously approved by the Company's stockholders, permits the grant of up to 126.1 million shares. The 1996 Plan provides for the grant of stock options, restricted stock units and restricted stock. To date, the Company has only issued stock options and restricted stock units. Under the 1996 Plan, the exercise price for all stock options will not be less than the fair market value of the Company's common stock on the date of grant. Options granted under the 1996 Plan, as well as under the Company's other stock plans described above, generally vest over a period of up to four years and expire from five to ten years from the date of the grant or such shorter term as may be provided in the agreement.

At June 29, 2013, the Company had 21.0 million shares of its common stock available for issuance to employees and other option recipients under its 1996 Stock Incentive Plan, 1993 Officer and Director Stock Option Plan, 1987 Stock Option Plan, 1987 Supplemental Stock Option Plan, and Supplemental Non-employee Stock Option Plan.

The following table summarizes stock options outstanding, exercisable and vested and expected to vest as of June 29, 2013:

 
Options
 
Weighted Average Remaining Contractual Term (In Years)
 
Aggregate Intrinsic Value (1) 
 
Number of Shares
 
Weighted Average Exercise Price
 
Balance at June 26, 2010
29,162,507

 
$27.05
 
 
 
 

     Options Granted
3,559,132

 
17.61
 
 
 
 

     Options Exercised
(1,460,652
)
 
17.22
 
 
 
 

     Options Cancelled
(2,928,501
)
 
33.67
 
 
 
 

 
 
 
 
 
 
 
 

Balance at June 25, 2011
28,332,486

 
25.62
 
 
 
 

     Options Granted
3,353,017

 
23.14
 
 
 
 

     Options Exercised
(2,843,444
)
 
16.55
 
 
 
 

     Options Cancelled
(4,607,065
)
 
31.62
 
 
 
 

 
 
 
 
 
 
 
 
Balance at June 30, 2012
24,234,994

 
25.20
 
 
 
 
 
 
 
 
 
 
 
 
     Options Granted
2,788,088

 
27.47
 
 
 
 
     Options Exercised
(3,919,847
)
 
18.17
 
 
 
 
     Options Cancelled
(3,021,896
)
 
31.10
 
 
 
 
 
 
 
 
 
 
 
 
Balance at June 29, 2013
20,081,339

 
26.00
 
3.3
 
$
108,826,977

 
 
 
 
 
 
 
 
Exercisable at June 29, 2013
10,640,111

 
$29.54
 
1.8
 
$
49,277,850

 
 
 
 
 
 
 
 
Vested and expected to vest, June 29, 2013
19,065,351

 
$26.11
 
3.2
 
$
104,361,444



(1)
Aggregate intrinsic value represents the difference between the exercise price and the closing price per share of the Company's common stock on June 28, 2013, the last business day preceding the fiscal year end, multiplied by the number of option outstanding, exercisable or vested and expected to vest as of June 29, 2013.

The following table summarizes information about stock options that were outstanding and exercisable at June 29, 2013:

 
 
Outstanding Options
 
Options Exercisable
Range of Exercise Prices
 
Number
Outstanding at
June 29, 2013
 
Weighted Average
Remaining
Contractual Term
(In years) 
 
Weighted
Average
Exercise
Price 
 
Number
Exercisable at
June 29, 2013
 
Weighted
Average
Exercise
Price 
$12.00 - $20.00
 
7,152,934

 
3.4
 
$15.85
 
3,336,951

 
$14.24
$20.01 - $30.00
 
6,298,270

 
5.4
 
$25.15
 
781,333

 
$25.29
$30.01 - $40.00
 
4,410,061

 
1.4
 
$35.20
 
4,301,753

 
$35.29
$40.01 - $51.00
 
2,220,074

 
1.2
 
$42.90
 
2,220,074

 
$42.90
 
 
20,081,339

 
 
 
 
 
10,640,111

 
 


During fiscal year 2013, the Company granted approximately 2.8 million stock options from its 1996 Plan with an estimated total grant date fair value of $18.7 million. The total intrinsic value of options exercised during fiscal years 2013, 2012 and 2011 were $44.7 million, $30.7 million and $11.8 million, respectively. The grant date fair value of options vested during fiscal years 2013, 2012 and 2011 were $11.2 million, $14.7 million and $23.0 million, respectively. As of June 29, 2013, there was $31.7 million of total unrecognized compensation costs related to 9.5 million unvested stock options expected to be recognized over a weighted average period of approximately 2.7 years.

Restricted Stock Units

Restricted stock units ("RSUs") generally vest on a quarterly basis over a service period of up to four years from the grant date. The restricted stock units represent a promise by the Company to the employees to issue shares of its common stock in the future, provided the vesting criteria are satisfied. RSUs granted reduce the total number of shares available for issuance under the 1996 Plan by a factor of two. To the extent RSUs are returned back to the 1996 Plan, for example, due to cancellations, such RSUs would increase the number of shares available to grant by a factor of two.

The following table summarizes outstanding and expected to vest RSUs as of June 29, 2013 and their activity during fiscal years 2013, 2012 and 2011:

 
Number of
Shares 
 
Weighted Average Remaining Contractual Term (In Years)
 
Aggregate
Intrinsic
Value (1) 
Balance at June 26, 2010
10,575,417

 
 
 
 

     Restricted stock units granted
4,171,372

 
 
 
 

     Restricted stock units released
(3,922,768
)
 
 
 
 

     Restricted stock units cancelled
(823,283
)
 
 
 
 

 
 
 
 
 
 
Balance at June 25, 2011
10,000,738

 
 
 
 
     Restricted stock units granted
3,645,864

 
 
 
 
     Restricted stock units released
(3,433,989
)
 
 
 
 
     Restricted stock units cancelled
(1,289,159
)
 
 
 
 
 
 
 
 
 
 
Balance at June 30, 2012
8,923,454

 
 
 
 
 
 
 
 
 
 
     Restricted stock units granted
3,074,466

 
 
 
 
     Restricted stock units released
(3,097,369
)
 
 
 
 
     Restricted stock units cancelled
(935,019
)
 
 
 
 
 
 
 
 
 
 
Balance at June 29, 2013
7,965,532

 
2.6
 
$
227,785,157

 
 
 
 
 
 
Expected to vest at June 29, 2013
7,102,927

 
2.6
 
$
200,799,758



(1) Aggregate intrinsic value for RSUs represents the closing price per share of the Company's common stock on June 28, 2013, the last business day preceding the fiscal year end, multiplied by the number of RSUs outstanding, or expected to vest as of June 29, 2013.

The Company withheld shares worth $29.0 million related to employee withholding taxes based on the value of the RSUs on their vesting date as determined by the Company's closing stock price during the fiscal year ended June 29, 2013. The total payments for the employees' tax obligations to the taxing authorities are reflected as financing activities within the Consolidated Statements of Cash Flows.

As of June 29, 2013, there was $117.4 million of unrecognized compensation cost related to 8.0 million unvested RSUs, which is expected to be recognized over a weighted average period of approximately 2.6 years.

2008 Employee Stock Purchase Plan

Under the 2008 ESPP, the Company has reserved to date 10.0 million shares of its common stock for future issuance. The 2008 ESPP permits two purchases over a twelve month offer period. Pursuant to the terms of the 2008 ESPP, eligible employees may elect withholdings of up to 25% of eligible compensation to purchase shares of common stock at the lower of (i) 85% of the fair market value of the shares on the offer date or (ii) 85% of the fair market value of the shares on the purchase date. The 2008 ESPP does not permit employees to buy more than $25,000 worth of stock annually or 1,600 shares during an offer period.

The Company issued 1.6 million shares of its common stock for total consideration of $36.3 million related to the ESPP plan during the fiscal year ended June 29, 2013. As of June 29, 2013, the Company had 4.7 million shares of its common stock reserved and available for future issuance under the 2008 ESPP.