Stock-Based Compensation [Text Block] | STOCK-BASED COMPENSATION At June 27, 2015 , the Company had one stock incentive plan, the Company's 1996 Stock Incentive Plan (the ā1996 Planā) and one employee stock purchase plan, the 2008 Employee Stock Purchase Plan (the ā2008 ESPPā). The 1996 Plan was adopted by the Board of Directors to provide the grant of incentive stock options, nonstatutory stock options, restricted stock units (āRSUsā), and market stock units (āMSUsā) to employees, directors, and consultants. Pursuant to the 1996 Plan, the exercise price for incentive stock options and non-statutory stock options is determined to be the fair market value of the underlying shares on the date of grant. Options typically vest ratably over a four-year period measured from the date of grant. Options generally expire no later than ten years after the date of grant, subject to earlier termination upon an optionee's cessation of employment or service. RSUs granted to employees typically vest ratably over a four-year period and are converted into shares of the Company's common stock upon vesting, subject to the employee's continued service to the Company over that period. MSUs granted to employees typically vest ratably over a two to four-year period and are converted into shares of the Company's common stock upon vesting, subject to the employee's continued service to the Company over that period. The number of shares that are released at the end of the performance period can range from zero to a maximum cap depending on the Company's performance. The performance metrics of this program are based on relative performance of the Companyās stock price as compared to the Semiconductor Exchange Traded Fund index, (the āSPDR S&Pā). The following tables show total stock-based compensation expense by type of award, and the resulting tax effect, included in the Consolidated Statements of Income for fiscal years 2015 , 2014 and 2013 : For the Year Ended June 27, Stock Options Restricted Stock Units and Other Awards Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 1,391 $ 8,226 $ 2,257 $ 11,874 Research and development 4,783 31,899 5,375 42,057 Selling, general and administrative 3,863 19,414 2,283 25,560 Pre-tax stock-based compensation expense $ 10,037 $ 59,539 $ 9,915 $ 79,491 Less: income tax effect 14,131 Net stock-based compensation expense $ 65,360 For the Year Ended June 28, Stock Options Restricted Stock Units and Other Awards Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 1,650 $ 8,466 $ 2,132 $ 12,248 Research and development 8,676 31,548 5,452 45,676 Selling, general and administrative 5,486 19,734 2,308 27,528 Pre-tax stock-based compensation expense $ 15,812 $ 59,748 $ 9,892 $ 85,452 Less: income tax effect 15,245 Net stock-based compensation expense $ 70,207 For the Year Ended June 29, Stock Options Restricted Stock Units and Other Awards Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 1,532 $ 8,862 $ 2,210 $ 12,604 Research and development 7,230 31,475 5,441 44,146 Selling, general and administrative 5,331 19,523 2,204 27,058 Pre-tax stock-based compensation expense $ 14,093 $ 59,860 $ 9,855 $ 83,808 Less: income tax effect 14,745 Net stock-based compensation expense $ 69,063 The expenses included in the Consolidated Statements of Income related to Restricted Stock Units and Other Awards include expenses related to Market Stock Units of $1.7 million , $1.5 million and $0.8 million for fiscal years 2015 , 2014 and 2013 , respectively. Stock Options The fair value of options granted to employees under the Companyās Amended and Restated 1996 Stock Incentive Plan is estimated on the date of grant using the Black-Scholes option valuation model. Expected volatilities are based on the historical volatilities from the Companyās traded common stock over a period equal to the expected term. The Company is utilizing the simplified method to estimate expected holding periods. The risk-free interest rate is based on the U.S. Treasury yield. The Company determines the dividend yield by dividing the annualized dividends per share by the prior quarterās average stock price. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis. The fair value of options granted to employees in fiscal years 2015 , 2014 and 2013 has been estimated at the date of grant using the Black-Scholes option valuation model and the following weighted-average assumptions: Stock Options For the Year Ended (1) June 27, June 28, June 29, Expected holding period (in years) 4.8 5.3 5.3 Risk-free interest rate 1.6 % 1.4 % 0.7 % Expected stock price volatility 26.7 % 34.6 % 37.7 % Dividend yield 3.2 % 3.2 % 3.3 % (1) Table excludes impact from assumptions used in valuing the Volterra substitute options granted on October 1, 2013 based on an expected holding period of 3.8 years, risk-free interest rate of 1.0% , expected stock price volatility of 27.5% and dividend yield of 3.4% . The weighted-average fair value of stock options granted was $5.56 , $7.36 and $6.69 per share for fiscal years 2015 , 2014 and 2013 , respectively. At June 27, 2015 , the Company had 26.4 million shares of its common stock available for issuance to employees and other option recipients under its 1996 Stock Incentive Plan. The following table summarizes outstanding, exercisable and vested and expected to vest stock options as of June 27, 2015 and their activity during fiscal years 2015 , 2014 and 2013 : Options Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (1) Number of Shares Weighted Average Exercise Price Balance at June 30, 2012 24,234,994 $25.20 Options Granted 2,788,088 27.47 Options Exercised (3,919,847 ) 18.17 Options Cancelled (3,021,896 ) 31.10 Balance at June 29, 2013 20,081,339 26.00 Options Granted 3,638,729 27.30 Options Exercised (3,568,775 ) 18.60 Options Cancelled (3,987,649 ) 34.86 Balance at June 28, 2014 16,163,644 25.74 Options Granted 63,584 32.22 Options Exercised (3,168,704 ) 18.39 Options Cancelled (2,885,508 ) 33.62 Balance at June 27, 2015 10,173,016 25.83 3.2 $ 90,549,038 Exercisable at June 27, 2015 5,044,473 $24.63 1.8 $ 52,594,028 Vested and expected to vest, June 27, 2015 9,851,208 $25.75 3.1 $ 87,716,577 (1) Aggregate intrinsic value represents the difference between the exercise price and the closing price per share of the Company's common stock on June 26, 2015, the last business day preceding the fiscal year end, multiplied by the number of option outstanding, exercisable or vested and expected to vest as of June 27, 2015 . The following table summarizes information about stock options that were outstanding and exercisable at June 27, 2015 : Outstanding Options Options Exercisable Range of Exercise Prices Number Outstanding at June 27, 2015 Weighted Average Remaining Contractual Term (In years) Weighted Average Exercise Price Number Exercisable at June 27, 2015 Weighted Average Exercise Price $12.00 - $20.00 2,341,984 1.9 $16.97 2,236,731 $16.85 $20.01 - $30.00 6,206,889 4.2 $26.37 1,349,151 $24.14 $30.01 - $40.00 1,526,240 1.1 $36.19 1,360,688 $36.64 $40.01 - $51.00 97,903 0.2 $42.05 97,903 $42.05 10,173,016 5,044,473 During fiscal year 2015 , the Company granted less than 0.1 million stock options from its 1996 Plan with an estimated total grant date fair value of $0.4 million . The total intrinsic value of options exercised during fiscal years 2015 , 2014 and 2013 were $45.6 million , $47.2 million and $44.7 million , respectively. The grant date fair value of options that vested during fiscal years 2015 , 2014 and 2013 were $13.1 million , $16.0 million and $11.2 million , respectively. As of June 27, 2015 , there was $18.0 million of total unrecognized compensation costs related to 5.1 million unvested stock options expected to be recognized over a weighted average period of approximately 1.9 years. Restricted Stock Units and Other Awards The fair value of Restricted Stock Units (āRSUsā) and other awards under the Companyās Amended and Restated 1996 Stock Incentive Plan is estimated using the value of the Companyās common stock on the date of grant, reduced by the present value of dividends expected to be paid on the Companyās common stock prior to vesting. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis. The weighted-average fair value of RSUs and other awards granted was $27.92 , $26.60 and $25.30 per share for fiscal years 2015 , 2014 and 2013 , respectively. The following table summarizes outstanding and expected to vest RSUs and other awards as of June 27, 2015 and their activity during fiscal years 2015 , 2014 and 2013 : Number of Shares Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (1) Balance at June 30, 2012 8,923,454 Restricted stock units and other awards granted 3,074,466 Restricted stock units and other awards released (3,097,369 ) Restricted stock units and other awards cancelled (935,019 ) Balance at June 29, 2013 7,965,532 Restricted stock units and other awards granted 3,916,111 Restricted stock units and other awards released (2,904,787 ) Restricted stock units and other awards cancelled (1,095,859 ) Balance at June 28, 2014 7,880,997 Restricted stock units and other awards granted 3,178,117 Restricted stock units and other awards released (2,589,639 ) Restricted stock units and other awards cancelled (1,339,490 ) Balance at June 27, 2015 7,129,985 2.6 $ 248,348,305 Expected to vest at June 27, 2015 6,253,774 2.6 $ 214,035,409 (1) Aggregate intrinsic value for RSUs and other awards represents the closing price per share of the Company's common stock on June 26, 2015, the last business day preceding the fiscal year end, multiplied by the number of RSUs and other awards outstanding, or expected to vest as of June 27, 2015 . The Company withheld shares totaling $27.8 million in value as a result of employee withholding taxes based on the value of the RSUs on their vesting date for the fiscal year ended June 27, 2015 . The total payments for the employees' tax obligations to the taxing authorities are reflected as financing activities within the Consolidated Statements of Cash Flows. As of June 27, 2015 , there was $134.2 million of unrecognized compensation cost related to 7.1 million unvested RSUs and other awards, which is expected to be recognized over a weighted average period of approximately 2.6 years. Market Stock Units The Company began granting Market Stock Units (āMSUsā) to senior members of management in September 2014 instead of stock options. MSUs are valued based on the relative performance of the Companyās stock price as compared to the Semiconductor Exchange Traded Fund index, (the āSPDR S&Pā). The fair value of MSUs is estimated using a Monte Carlo simulation model on the date of grant. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis. Compensation expense is recognized based on the initial valuation and is not subsequently adjusted as a result of the Companyās performance relative to that of the SPDR S&P index. Vesting for MSUs is contingent upon both service and market conditions, which generally is over a two to four-year period. The following table summarizes outstanding and expected to vest MSUs as of June 27, 2015 and their activity during fiscal years 2015 , 2014 and 2013 : Number of Shares Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (1) Balance at June 30, 2012 ā Market stock units granted 60,000 Market stock units released ā Market stock units cancelled ā Balance at June 29, 2013 (2) 60,000 Market stock units granted 60,000 Market stock units released ā Market stock units cancelled ā Balance at June 28, 2014 (2) 120,000 Market stock units granted 423,044 Market stock units released (42,476 ) Market stock units cancelled (85,728 ) Balance at June 27, 2015 414,840 3.1 $ 14,199,973 Expected to vest at June 27, 2015 356,933 3.1 $ 12,217,827 (1) Aggregate intrinsic value for MSUs represents the closing price per share of the Companyās common stock on June 26, 2015, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of June 27, 2015 . (2) Reflects shares previously granted to the Companyās Chief Executive Officer only. As of June 27, 2015 , there was $4.7 million of unrecognized compensation cost related to 0.4 million unvested MSUs, which is expected to be recognized over a weighted average period of approximately 3.1 years. Employee Stock Purchase Plan Employees are granted rights to acquire common stock under the Companyās 2008 Employee Stock Purchase Plan (the āESPPā). The Company issued 1.6 million shares of its common stock for total consideration of $41.0 million related to the ESPP plan during the fiscal year ended June 27, 2015 . As of June 27, 2015 , the Company had 5.4 million shares of its common stock reserved and available for future issuance under the 2008 ESPP. The fair value of ESPP granted to employees in fiscal years 2015 , 2014 and 2013 has been estimated at the date of grant using the Black-Scholes option valuation model and the following weighted-average assumptions: ESPP For the Year Ended June 27, June 28, June 29, Expected holding period (in years) 0.5 0.5 0.5 Risk-free interest rate 0.1 % 0.1 % 0.1 % Expected stock price volatility 21.8 % 20.7 % 24.0 % Dividend yield 3.3 % 3.4 % 3.1 % As of June 27, 2015 , there was $5.6 million of unrecognized compensation expense related to the ESPP. Other Modifications In September 2006, the Company suspended the issuance of shares to employees upon exercise of stock options, vesting of restricted stock units or pursuant to planned purchases of stock under the Employee Stock Participation Plan until the Company became current with all required SEC filings and its registration statements on Form S-8 were declared effective (āBlackout Periodā). The Company instituted multiple programs in an attempt to compensate employees during this period. In September 2007, the Company decided to cash-settle all options expiring during the Blackout Period (āgoodwill paymentā) based on the price at which 10% of the daily close prices of the Companyās common stock fall above this price for trading days from August 7, 2006 (the date on which the Company initiated a trading blackout on officers and other individuals) through the expiration date of the option. The cash payment is subject to the option holder executing a release of all claims relating to the option. The supplemental goodwill payment modification changed the classification of the associated awards from equity to liability instruments. The modification resulted in a reclassification from additional paid-in capital to accrued salaries and related expenses. In the fourth quarter of fiscal 2015, $7.8 million was reclassified from accrued salaries to additional paid-in capital due to the lapse of the statute of limitations of certain option holders to raise claims relating to the expired options. |