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Share Repurchase Programs
9 Months Ended
Mar. 30, 2014
Equity [Abstract]  
Share Repurchase Programs
Share Repurchase Programs
In November 2013, the Company's Board of Directors approved a $200.0 million share repurchase program that superseded the existing share repurchase program authorized in August 2008. The share repurchases are authorized to be completed through the combination of individually negotiated transactions, accelerated share buybacks, and open market purchases.
On November 13, 2013, the Company entered into an accelerated stock buyback agreement ("ASB") with Goldman, Sachs & Co. (Goldman Sachs) to repurchase an aggregate of approximately $44.3 million of outstanding common stock. The ASB is expected to be completed by May 19, 2014. Under the ASB, the Company paid approximately $44.3 million to Goldman Sachs on November 18, 2013, and Goldman Sachs delivered to the Company approximately 4.6 million shares of common stock, reflecting 80% of the $44.3 million paid. For accounting purposes, the ASB is considered a treasury stock purchase for the initial shares delivered, and a forward contract indexed to the Company's common stock for the shares to be delivered under the ASB. The forward contract is not required to be separately accounted for as a derivative. The Company accounted for the 4.6 million shares delivered as treasury stock, which reduced the outstanding common shares used to calculate basic and diluted EPS. The 20% holdback, approximately $8.9 million, was recorded in additional paid-in capital, which will be reclassified to treasury stock as the remaining shares are delivered. Upon final settlement of the ASB, the Company may receive additional shares or pay additional cash or shares (at the Company's option), based on the daily volume weighted average market price (VWAP) of the Company’s common stock over the course of a calculation period, less a discount, and is subject to certain adjustments under the ASB. Increases in the VWAP during the remaining ASB term will decrease the shares to be delivered to the Company by Goldman Sachs, or could result in cash or shares delivered by the Company to Goldman Sachs, while decreases in the daily VWAP during the remaining ASB term will increase the shares to be delivered to the Company by Goldman Sachs. Upon final settlement, outstanding shares will be adjusted to reflect the final shares delivered by the Company or Goldman Sachs, and amounts settled in cash by the Company, if any, will be recorded to treasury stock. The ASB is subject to customary termination and adjustment provisions following the occurrence of specified events, including major corporate transactions such as announcements of mergers and acquisitions.
The Company repurchased, in the open market and not a part of the ASB, approximately 0.5 million shares of its common stock during the three months ended March 30, 2014 at an average price of $7.39 per share for a total of approximately $3.4 million, recorded as treasury stock. During the nine months ended March 30, 2014, the Company repurchased approximately 12.3 million shares, at an average price of $7.72, for a total of approximately $94.5 million, recorded as treasury stock, which included the 4.6 million shares repurchased through the ASB for approximately $35.4 million and approximately 7.7 million shares from the open market and the individually negotiated transactions for approximately $59.1 million. Based upon the timing of the transactions, approximately $0.4 million of shares repurchased in the open market had not settled as of March 30, 2014. These shares are excluded from outstanding shares at the end of the current quarter and have been settled in cash during the fourth quarter of fiscal 2014.
As of March 30, 2014, approximately $96.6 million remains under the authorized repurchase program (exclusive of the remaining unsettled forward amount of the ASB).