Stock Options and Other Share Based Compensation (Tables)

12 Months Ended

Jul. 01, 2011

Stock Options And Other Share Based Compensation (Tables) [Abstract]

Share Based Compensation Expense

The following table summarizes the amounts and classification of share-based compensation expense:

	2011			2010			2009
	(In millions)
Total expense	$	46.1		$	35.3		$	39.3
Included in:
Cost of product sales and services	$	4.2		$	3.9		$	3.5
Engineering, selling and administrative expenses		41.9			31.4			35.8
Income from continuing operations		46.1			35.3			39.3
Tax effect on share-based compensation expense		(15.4	)		(11.7	)		(14.0	)
Total share-based compensation expense after-tax	$	30.7		$	23.6		$	25.3

Assumptions used in calculating fair value of stock option grants

A summary of the significant assumptions used in calculating the fair value of stock option grants under our SIPs is as follows:

	2011			2010			2009
Expected dividends		2.0	%		2.1	%		1.4	%
Expected volatility		35.6	%		38.2	%		33.4	%
Risk-free interest rates		1.5	%		2.4	%		2.6	%
Expected term (years)		4.94			4.71			4.45

Summary of stock option activity

A summary of stock option activity under our SIPs as of July 1, 2011 and changes during fiscal 2011 is as follows:

				Weighted		Weighted
				Average		Average
				Exercise		Remaining
				Price		Contractual		Aggregate
	Shares			Per Share		Term		Intrinsic Value
						(In years)		(In millions)
Stock options outstanding at July 2, 2010		7,027,509		$	37.55
Stock options forfeited or expired		(417,268	)	$	41.14
Stock options granted		1,423,400		$	43.32
Stock options exercised		(809,552	)	$	26.76
Stock options outstanding at July 1, 2011		7,224,089		$	39.69		5.08	$	55.59
Stock options exercisable at July 1, 2011		4,406,774		$	39.26		3.06	$	39.84

Nonvested stock options

A summary of the status of our nonvested stock options at July 1, 2011 and changes during fiscal 2011 is as follows:

				Weighted-
				Average
				Grant-Date
				Fair Value
	Shares			Per Share
Nonvested stock options at July 2, 2010		2,839,757		$	11.76
Stock options granted		1,423,400		$	11.75
Stock options vested		(1,445,842	)	$	12.33
Nonvested stock options at July 1, 2011		2,817,315		$	11.46

Summary of restricted stock and restricted stock units

A summary of the status of our restricted stock and restricted stock units at July 1, 2011 and changes during fiscal 2011 is as follows:

				Weighted-
				Average
				Grant
				Price
	Shares			Per Share
Restricted stock and restricted stock units outstanding at July 2, 2010		590,248		$	42.61
Restricted stock and restricted stock units granted		470,550		$	44.73
Restricted stock and restricted stock units vested		(129,476	)	$	51.46
Restricted stock and restricted stock units forfeited		(117,475	)	$	43.97
Restricted stock and restricted stock units outstanding at July 1, 2011		813,847		$	42.23

Summary of performance shares and performance share units

A summary of the status of our performance shares and performance share units at July 1, 2011 and changes during fiscal 2011 is as follows:

				Weighted-
				Average
				Grant
				Price
	Shares			Per Share
Performance shares and performance share units outstanding at July 2, 2010		979,954		$	44.49
Performance shares and performance share units granted		210,348		$	44.12
Performance shares and performance share units vested		(237,701	)	$	58.74
Performance shares and performance share units forfeited		(54,304	)	$	40.21
Performance shares and performance share units outstanding at July 1, 2011		898,297		$	40.90