Stock-Based Compensation

6 Months Ended

Dec. 30, 2012

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-based Compensation

Equity Incentive Plans

 At December 30, 2012, 20.7 million shares were available for grant under the Company’s equity incentive plans.  The Company’s restricted awards generally vest annually over a period of five years (20% a year) based upon continued employment with the Company.  Options also generally become exercisable over a five-year period (generally 10% every six months) based upon continued employment.  Options granted prior to January 11, 2005 expire ten years after the date of grant; options granted after January 11, 2005 expire seven years after the date of the grant.

The Company has an Employee Stock Purchase Plan (“ESPP”) that permits eligible employees to purchase common stock through payroll deductions at 85% of the fair market value of the common stock at the end of each six-month offering period.  The offering periods generally commence on approximately May 1 and November 1 of each year.  At December 30, 2012, 1.2 million shares were available for issuance under the ESPP.

Accounting for Stock-Based Compensation

Compensation cost for restricted stock awards is based on the fair market value of the Company’s stock on the date of grant.  Compensation cost for stock options is calculated on the date of grant using the fair value of stock options as determined using the Black-Scholes valuation model.  The Company amortizes the compensation cost straight-line over the vesting period, which is generally five years.  The Black-Scholes valuation model requires the Company to estimate key assumptions such as expected option term, stock price volatility and forfeiture rates to determine the fair value of a stock option. The estimate of these key assumptions is based on historical information and judgment regarding market factors and trends.

As of December 30, 2012, there was approximately $151.3 million of total unrecognized stock-based compensation cost related to share-based payments granted under the Company’s stock-based compensation plans that will be recognized over a period of approximately 5 years.  Future grants will add to this total, whereas quarterly amortization and the vesting of the existing grants will reduce this total.

The Company issues new shares of common stock upon exercise of stock options. For the six months ended December 30, 2012, options for approximately 0.9 million shares were exercised for a gain to the optionee (aggregate intrinsic value) of $6.6 million determined as of the dates of the option exercises.

Stock Options

The following table summarizes stock option activity and related information under all stock option plans during the period indicated:

	Stock Options Outstanding		Weighted- Average Exercise Price
Outstanding options, July 1, 2012	11,080,860		$	31.12
Granted	—		—
Forfeited and expired	(763,150	)	37.00
Exercised	(893,429	)	25.07
Outstanding options, December 30, 2012	9,424,281		$	31.22
Options vested and exercisable at:
December 30, 2012	7,603,399		$	33.25

Restricted Stock

The following table summarizes the Company’s restricted stock and restricted stock unit activity under all equity award plans during the period indicated:

	Restricted Awards Outstanding		Weighted-Average Grant-Date Fair Value
Nonvested at July 1, 2012	5,398,008		$	30.67
Granted	1,501,476		31.67
Vested	(877,710	)	30.57
Forfeited	(74,669	)	30.14
Nonvested at December 30, 2012	5,947,105		$	30.95