Quarterly report pursuant to Section 13 or 15(d)

Equity and Long-Term Incentive Compensation Plans (Tables)

v3.8.0.1
Equity and Long-Term Incentive Compensation Plans (Tables)
6 Months Ended
Dec. 31, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Schedule of Combined Activity Under Equity Incentive Plans
The following table summarizes the combined activity under the Company’s equity incentive plans for the indicated periods:
(In thousands)
Available
For Grant(1)
Balance as of June 30, 2017
4,710

Restricted stock units granted (2)
(665
)
Restricted stock units granted adjustment (3)
33

Restricted stock units canceled
59

Balance as of December 31, 2017
4,137

__________________ 
(1)
The number of restricted stock units reflects the application of the award multiplier as described above (1.8x or 2.0x depending on the grant date of the applicable award).
(2)
Includes restricted stock units granted to senior management during the six months ended December 31, 2017 with performance-based vesting criteria (in addition to service-based vesting criteria for any of such restricted stock units that are deemed to have been earned). As of December 31, 2017, it had not yet been determined the extent to which (if at all) the performance-based vesting criteria had been satisfied. Therefore, this line item includes all such performance-based restricted stock units granted during the six months ended December 31, 2017, reported at the maximum possible number of shares that may ultimately be issuable if all applicable performance-based criteria are achieved at their maximum levels and all applicable service-based criteria are fully satisfied (0.3 million shares for the six months ended December 31, 2017 reflects the application of the multiplier described above).
(3)
Represents the portion of restricted stock units granted with performance-based vesting criteria and reported at the actual number of shares issued upon achievement of the performance vesting criteria during the six months ended December 31, 2017.
Schedule of Stock-based Compensation Expense
The following table shows pre-tax stock-based compensation expense for the indicated periods: 
 
Three months ended
December 31,
 
Six months ended
December 31,
(In thousands)
2017
 
2016
 
2017
 
2016
Stock-based compensation expense by:
 
 
 
 
 
 
 
Costs of revenues
$
1,656

 
$
1,305

 
$
3,072

 
$
2,567

Research and development
2,275

 
2,052

 
4,446

 
4,073

Selling, general and administrative
9,808

 
9,087

 
20,252

 
17,282

Total stock-based compensation expense
$
13,739

 
$
12,444

 
$
27,770

 
$
23,922

Schedule of Stock-based Compensation Capitalized as Inventory
The following table shows stock-based compensation capitalized as inventory as of the dates indicated below: 
(In thousands)
As of
December 31, 2017
 
As of
June 30, 2017
Inventory
$
3,039

 
$
2,820

Schedule of Restricted Stock Activity
The following table shows the applicable number of restricted stock units and weighted-average grant date fair value for restricted stock units granted, vested and released, withheld for taxes, and forfeited during the six months ended December 31, 2017 and restricted stock units outstanding as of December 31, 2017 and June 30, 2017:
Restricted Stock Units
Shares(1)
(In thousands)
 
Weighted-Average
Grant Date
Fair Value
Outstanding restricted stock units as of June 30, 2017(2)
2,241

 
$
68.24

Granted(2)
333

 
$
91.39

Granted adjustments(3)
(17
)
 
$
74.26

Vested and released
(379
)
 
$
63.22

Withheld for taxes
(283
)
 
$
63.22

Forfeited
(30
)
 
$
66.10

Outstanding restricted stock units as of December 31, 2017(2)
1,865

 
$
74.13

__________________ 
(1)
Share numbers reflect actual shares subject to awarded restricted stock units. As described above, under the terms of the 2004 Plan, the number of shares subject to each award reflected in this number is multiplied by either 1.8x or 2.0x (depending on the grant date of the award) to calculate the impact of the award on the share reserve under the 2004 Plan.
(2)
Includes restricted stock units granted to senior management with performance-based vesting criteria (in addition to service-based vesting criteria for any of such restricted stock units that are deemed to have been earned). As of December 31, 2017, it had not yet been determined the extent to which (if at all) the performance-based vesting criteria had been satisfied. Therefore, this line item includes all such performance-based restricted stock units, reported at the maximum possible number of shares (0.3 million shares for the fiscal year ended June 30, 2016, 42 thousand shares for the fiscal year ended June 30, 2017 and 0.2 million shares for the six months ended December 31, 2017) that may ultimately be issuable if all applicable performance-based criteria are achieved at their maximum and all applicable service-based criteria are fully satisfied.
(3)
Represents the portion of restricted stock units granted with performance-based vesting criteria and reported at the actual number of shares issued upon achievement of the performance vesting criteria during six months ended December 31, 2017.
Schedule of Grant Date Fair Value, Weighted Average Grant Date Fair Value, and Tax Benefits for Restricted Stock Units
The following table shows the weighted-average grant date fair value per unit for the restricted stock units granted and the restricted stock units vested and tax benefits realized by the Company in connection with vested and released restricted stock units for the indicated periods: 
 
Three months ended
December 31,
 
Six months ended
December 31,
(In thousands, except for weighted-average grant date fair value)
2017
 
2016
 
2017
 
2016
Weighted-average grant date fair value per unit
$
105.15

 
$
75.38

 
$
91.39

 
$
70.95

Grant date fair value of vested restricted stock units
$
5,322

 
$
1,843

 
$
41,856

 
$
31,051

Tax benefits (expense) realized by the Company in connection with vested and released restricted stock units
$
(1,930
)
 
$
765

 
$
16,482

 
$
14,694



Employee Stock Purchase Rights Valuation
The fair value of each purchase right under the ESPP was estimated on the date of grant using the Black-Scholes option valuation model and the straight-line attribution approach with the following weighted-average assumptions: 
 
Three months ended
December 31,
 
Six months ended
December 31,
 
2017
 
2016
 
2017
 
2016
Stock purchase plan:
 
 
 
 
 
 
 
Expected stock price volatility
25.9
%
 
20.6
%
 
25.9
%
 
20.6
%
Risk-free interest rate
0.9
%
 
0.4
%
 
0.9
%
 
0.4
%
Dividend yield
2.6
%
 
3.0
%
 
2.6
%
 
3.0
%
Expected life (in years)
0.5

 
0.5

 
0.5

 
0.5

Schedule of Tax Benefits Realized and Weighted-average fair value for the ESPP
The following table shows the tax benefits realized by the Company in connection with the disqualifying dispositions of shares purchased under the ESPP and the weighted-average fair value per share for the indicated periods: 
(In thousands, except for weighted-average fair value per share)
Three months ended
December 31,
 
Six months ended
December 31,
2017
 
2016
 
2017
 
2016
Total cash received from employees for the issuance of shares under the ESPP
$
20,579

 
$
23,694

 
$
20,579

 
$
23,694

Number of shares purchased by employees through the ESPP
264

 
384

 
264

 
384

Tax benefits realized by the Company in connection with the disqualifying dispositions of shares purchased under the ESPP
$
47

 
$
218

 
$
894

 
$
922

Weighted-average fair value per share based on Black-Scholes model
$
19.04

 
$
14.05

 
$
19.04

 
$
14.05