Share-Based Compensation | 9 Months Ended |
Mar. 29, 2014 |
Share-Based Compensation [Abstract] | ' |
Share-Based Compensation | ' |
7. Share-Based Compensation |
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The following table shows the total compensation cost and the related tax benefits recognized for share-based compensation plans in the income statement for the periods indicated: |
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| | Quarter Ended | | Nine Months Ended |
| | March 29, | | March 30, | | March 29, | | March 30, |
| | 2014 | | 2013 | | 2014 (a) | | 2013 |
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Share-based compensation expense | | $ 25,805 | | $ 30,183 | | $ 78,566 | | $ 89,209 |
Income tax benefit related to share-based compensation expense | | 7,938 | | 10,172 | | 24,374 | | 30,340 |
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(a) Approximately $9,834 of share based compensation expense and $3,793 of related income tax benefit are related to the sale of the Reed Krakoff business and restructuring and transformation recognized by the Company in the first quarter of fiscal 2014. See Footnote 2 for information as it relates to the sale of the Reed Krakoff business. |
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Stock Options |
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A summary of stock option activity under the Coach stock option plans during the nine months ended March 29, 2014 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 | | 2,322 | | 52.95 | | | | |
Exercised | | -1,285 | | 33.07 | | | | |
Forfeited or expired | | -2,165 | | 55.50 | | | | |
Outstanding at March 29, 2014 | | 11,765 | | 44.15 | | | | |
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Vested and expected to vest at March 29, 2014 | | 11,272 | | 43.85 | | | | |
Exercisable at March 29, 2014 | | 7,641 | | 38.70 | | | | |
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At March 29, 2014, $30,623 of total unrecognized compensation cost related to non-vested stock option awards is expected to be recognized over a weighted-average period of 1.0 years. |
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The weighted-average grant-date fair value of individual options granted during the first nine months of fiscal 2014 and fiscal 2013 was $9.94 and $13.07, respectively. The total intrinsic value of options exercised during the first nine months of fiscal 2014 and fiscal 2013 was $26,138 and $50,502, respectively. |
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The total cash received from these option exercises was $42,479 and $56,586, respectively, and the actual tax benefit realized from these option exercises was $9,665 and $19,377, 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 nine months ended March 29, 2014 is as follows: |
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| | Number of Non-vested Share Units | | Weighted-Average Grant-Date Fair Value Per Share | | | | |
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Non-vested at June 29, 2013 | | 3,269 | | $ 54.06 | | | | |
Granted | | 1,962 | | 53.09 | | | | |
Vested | | -1,459 | | 51.01 | | | | |
Forfeited | | -485 | | 55.03 | | | | |
Non-vested at March 29, 2014 | | 3,287 | | 54.70 | | | | |
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At March 29, 2014, $109,669 of total unrecognized compensation cost related to non-vested RSU awards is expected to be recognized over a weighted-average period of 1.1 years. |
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The weighted-average grant-date fair value per share of RSU awards granted during the first nine months of fiscal 2014 and fiscal 2013 was $53.09 and $54.94, respectively. The total fair value of RSUs vested during the first nine months of fiscal 2014 and fiscal 2013 was $76,895 and $79,641, respectively. |
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Performance-based Restricted Stock Unit Awards (“PRSU”) |
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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, during the nine months ended March 29, 2014 is as follows: |
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| | Number of Non-vested Share Units | | Weighted-Average Grant-Date Fair Value Per Share | | | | |
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Non-vested at June 29, 2013 | | 1,093 | | $ 46.84 | | | | |
Granted | | 308 | | 32.29 | | | | |
Change due to performance condition achievement | | 62 | | 36.48 | | | | |
Vested | | -435 | | 40.27 | | | | |
Forfeited | | -110 | | 43.82 | | | | |
Non-vested at March 29, 2014 | | 918 | | 44.72 | | | | |
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At March 29, 2014, $16,546 of total unrecognized compensation cost related to non-vested PRSU awards is expected to be recognized over a weighted-average period of 1.5 years. |
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The weighted-average grant-date fair value per share of PRSU awards granted during the first nine months of fiscal 2014 and fiscal 2013 was $32.29 and $50.55, respectively. The total fair value of shares vested during the first nine months of fiscal 2014 and fiscal 2013 was $23,149 and $0, respectively. |
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During the first nine months of fiscal 2014, the Company granted 241 shares of common stock with a fair value of $6,814 to selected executives as retention PRSU awards with a maximum potential number of shares issued and fair value (excluding dividends) of 321 shares and $9,085, respectively. These shares are included within the PRSU tables above. The shares of common stock under these PRSU awards will be earned and distributed based on performance criteria which compares 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 the first nine months of fiscal 2014 and 2013, the cash tax benefit realized for the tax deductions from all service and performance-based RSUs were $33,091 and $23,247, respectively. |
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