Share-Based Compensation | 3 Months Ended |
Sep. 28, 2013 |
Share-Based Compensation [Abstract] | ' |
Share-Based Compensation | ' |
7. Share-Based Compensation |
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The following table shows the total compensation cost charged against income for share-based compensation plans and the related tax benefits recognized in the income statement for the periods indicated: |
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| | Quarter Ended | |
| | September 28, | | September 29, | |
| | 2013 | | 2012 | |
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Compensation expense: | | | | | |
Ongoing | | $ 17,506 | | $ 28,533 | |
Sale of Reed Krakoff business; restructuring and transformation | | 9,834 | | - | |
| | $ 27,340 | | $ 28,533 | |
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Related income tax benefit: | | | | | |
Ongoing | | $ 4,721 | | $ 9,856 | |
Sale of Reed Krakoff business; restructuring and transformation | | 3,793 | | - | |
| | $ 8,514 | | $ 9,856 | |
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Stock Options |
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A summary of stock option activity under the Coach stock option plans during the period ended September 28, 2013 is as follows: |
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| | Number of Options Outstanding | | Weighted-Average Exercise Price | |
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Outstanding at June 29, 2013 | | 12,893 | | $ 43.37 | |
Granted | | 2,081 | | 53.27 | |
Exercised | | -763 | | 32.14 | |
Forfeited or expired | | -1,504 | | 54.05 | |
Outstanding at September 28, 2013 | | 12,707 | | 44.40 | |
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Vested and expected to vest at September 28, 2013 | | 12,518 | | 44.24 | |
Exercisable at September 28, 2013 | | 8,516 | | 39.38 | |
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At September 28, 2013, $40,843 of total unrecognized compensation cost related to non-vested stock option awards is expected to be recognized over a weighted-average period of 1.2 years. |
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The weighted-average grant-date fair value of individual options granted during the first quarter of fiscal 2014 and fiscal 2013 was $10.02 and $13.18, respectively. The total intrinsic value of options exercised during the first quarter of fiscal 2014 and fiscal 2013 was $16,483 and $21,520, respectively. |
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The total cash received from these option exercises was $24,527 and $23,303, respectively, and the actual tax benefit realized from these option exercises was $6,305 and $8,232, respectively. |
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Service-based Restricted Stock Unit Awards (“RSUs”) |
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A summary of service-based RSU activity during the quarter ended September 28, 2013 is as follows: |
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| | Number of Non-vested Share Units | | Weighted-Average Grant-Date Fair Value | |
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Non-vested at June 29, 2013 | | 3,269 | | $ 54.06 | |
Granted | | 1,662 | | 53.32 | |
Vested | | -1,248 | | 49.58 | |
Forfeited | | -299 | | 55.01 | |
Non-vested at September 28, 2013 | | 3,384 | | 55.27 | |
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At September 28, 2013, $140,867 of total unrecognized compensation cost related to non-vested share awards is expected to be recognized over a weighted-average period of 1.3 years. |
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The weighted-average grant-date fair value of share awards granted during the first quarter of fiscal 2014 and fiscal 2013 was $53.32 and $55.63, respectively. The total fair value of shares vested during the first quarter of fiscal 2014 and fiscal 2013 was $66,300 and $72,618, respectively. |
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Performance-based Restricted Stock Unit Awards (“PRSUs”) |
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The Company grants performance-based share awards to key executives, the vesting of which is subject to the executive’s continuing employment and the Company's achievement of certain performance goals. A summary of performance-based share award activity, which includes dividend equivalent shares, during the quarter ended September 28, 2013 is as follows: |
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| | Number of Non-vested Share Units | | Weighted-Average Grant-Date Fair Value | |
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Non-vested at June 29, 2013 | | 1,093 | | $ 46.84 | |
Change due to performance condition achievement | | 57 | | 35.61 | |
Granted | | 354 | | 36.70 | |
Vested | | -488 | | 42.07 | |
Forfeited | | -88 | | 49.34 | |
Non-vested at September 28, 2013 | | 928 | | 44.56 | |
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At September 28, 2013, $20,413 of total unrecognized compensation cost related to non-vested share awards is expected to be recognized over a weighted-average period of 1.7 years. |
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The weighted-average grant-date fair value of share awards granted during the first quarter of fiscal 2014 and fiscal 2013 was $36.70 and $56.83, respectively. The total fair value of shares vested during the first quarter of fiscal 2014 and fiscal 2013 was $25,915 and $0, respectively. |
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Within the 354 total PRSU awards granted during the first quarter of fiscal 2014, the Company granted 239 shares of common stock with a fair value of $6,759 to selected executives as retention PRSU awards with a maximum share count and fair value (excluding dividends) of 318 shares and $8,989, respectively. The shares of common stock under these PRSU awards will be earned and distributed based on performance criteria which compare the Company’s total stockholder return over the performance period to the total stockholder return of the companies included in the Standard & Poor’s 500 Index on the date of grant (excluding the Company). The grant date fair value of the PRSU awards was determined utilizing a Monte Carlo simulation and the following assumptions: expected volatility of 32.61%, risk-free interest rate of 0.63%, and dividend yield of 0.00%. |
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In first quarter of fiscal 2014 and 2013, the cash tax benefit realized for the tax deductions from all RSUs (service and performance-based) was $30,672 and $20,146, respectively. |
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