Stock-Based Employee Compensation

6 Months Ended

Dec. 31, 2013

Stock-Based Employee Compensation [Abstract]

Stock-Based Employee Compensation

(9)Stock-Based Employee Compensation

We measure the compensation expense of all stock-based awards at fair value on the grant date.  We estimate the fair value of stock options and purchase rights granted under the employee stock purchase plan (the “ESPP”) using the Black-Scholes valuation model. The fair value of restricted stock units is equal to the market value of the underlying shares as determined at the grant date less the fair value of dividends that holders are not entitled to, during the vesting period.  We recognize the fair value as compensation expense using the straight-line method over the service period for awards expected to vest.

We estimate the fair value of stock options granted under our stock option plans and purchase rights granted under the ESPP using the following assumptions:

	Three Months Ended December 31,				Six Months Ended December 31,
	2013		2012		2013		2012
Stock options:
Weighted average grant date fair value	$	10.90	$	9.38	$	10.90	$	9.34
Weighted average risk-free interest rate		1.44%		0.61%		1.44%		0.61%
Expected option life in years		4.9		4.9		4.9		4.9
Dividend yield		2.06%		1.74%		2.06%		1.75%
Expected volatility		30%		33%		30%		33%
ESPP purchase rights:
Weighted average risk-free interest rate		0.08%		0.15%		0.08%		0.15%
Expected option life in years		6 months		6 months		6 months		6 months
Dividend yield		1.44% - 1.96%		1.67%		1.44% - 1.96%		1.67%
Expected volatility		24% - 28%		27% - 30%		24% - 28%		27% - 30%

During the six months ended December 31, 2013 and 2012, we also granted performance restricted stock units (“PRSUs”), which contain a market condition, with the ultimate realizable number of PRSUs dependent on relative total stockholder return over a three-year period, up to a maximum amount to be issued under the award of 200% of the original grant. The weighted average fair value of PRSUs granted during the six months ended December 31, 2013 and 2012 was estimated at $50.09 and $37.87 per PRSU, respectively, using a Monte-Carlo simulation valuation model.