Equity and Long-Term Incentive Compensation Plans (Tables)
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9 Months Ended |
Mar. 31, 2018 |
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| Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
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| 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:
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(In thousands) |
Available
For Grant(1)
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Balance as of June 30, 2017 |
4,710 |
|
Restricted stock units granted (2)
|
(682 |
) |
Restricted stock units granted adjustment (3)
|
33 |
|
Restricted stock units canceled |
65 |
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Balance as of March 31, 2018 |
4,126 |
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__________________
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(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).
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(2) |
Includes restricted stock units granted to senior management during the nine months ended March 31, 2018 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 March 31, 2018, 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 nine months ended March 31, 2018, 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 nine months ended March 31, 2018 reflects the application of the multiplier described above).
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(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 nine months ended March 31, 2018.
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| Schedule of Stock-based Compensation Expense |
The following table shows pre-tax stock-based compensation expense for the indicated periods:
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Three months ended
March 31, |
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Nine months ended
March 31, |
(In thousands) |
2018 |
|
2017 |
|
2018 |
|
2017 |
Stock-based compensation expense by: |
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Costs of revenues |
$ |
2,386 |
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$ |
1,205 |
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$ |
5,458 |
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|
$ |
3,772 |
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Research and development |
3,185 |
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|
1,999 |
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|
7,631 |
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|
6,072 |
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Selling, general and administrative |
10,639 |
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|
9,332 |
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|
30,891 |
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|
26,614 |
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Total stock-based compensation expense |
$ |
16,210 |
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|
$ |
12,536 |
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|
$ |
43,980 |
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$ |
36,458 |
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| Schedule of Stock-based Compensation Capitalized as Inventory |
The following table shows stock-based compensation capitalized as inventory as of the dates indicated below:
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(In thousands) |
As of
March 31, 2018 |
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As of
June 30, 2017 |
Inventory |
$ |
4,323 |
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|
$ |
2,820 |
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| 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 nine months ended March 31, 2018 and restricted stock units outstanding as of March 31, 2018 and June 30, 2017:
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Restricted Stock Units |
Shares(1)
(In thousands)
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|
Weighted-Average
Grant Date
Fair Value
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Outstanding restricted stock units as of June 30, 2017(2)
|
2,241 |
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|
$ |
68.24 |
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Granted(2)
|
341 |
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|
$ |
91.84 |
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Granted adjustments(3)
|
(17 |
) |
|
$ |
74.26 |
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Vested and released |
(385 |
) |
|
$ |
63.45 |
|
Withheld for taxes |
(286 |
) |
|
$ |
63.45 |
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Forfeited |
(32 |
) |
|
$ |
66.75 |
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Outstanding restricted stock units as of March 31, 2018(2)
|
1,862 |
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|
$ |
74.26 |
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__________________
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|
(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.
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(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 March 31, 2018, 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 nine months ended March 31, 2018) 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.
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(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 nine months ended March 31, 2018.
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| 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:
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Three months ended
March 31, |
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Nine months ended
March 31, |
(In thousands, except for weighted-average grant date fair value) |
2018 |
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2017 |
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2018 |
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2017 |
Weighted-average grant date fair value per unit |
$ |
109.80 |
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|
$ |
86.04 |
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|
$ |
91.84 |
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|
$ |
71.45 |
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Grant date fair value of vested restricted stock units |
$ |
745 |
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|
$ |
2,769 |
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|
$ |
42,601 |
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|
$ |
33,820 |
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Tax benefits realized by the Company in connection with vested and released restricted stock units |
$ |
249 |
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|
$ |
1,135 |
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$ |
16,731 |
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$ |
15,829 |
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| 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:
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Three months ended
March 31, |
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Nine months ended
March 31, |
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2018 |
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2017 |
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2018 |
|
2017 |
Stock purchase plan: |
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Expected stock price volatility |
31.5 |
% |
|
26.1 |
% |
|
28.7 |
% |
|
23.4 |
% |
Risk-free interest rate |
1.3 |
% |
|
0.5 |
% |
|
1.1 |
% |
|
0.5 |
% |
Dividend yield |
2.4 |
% |
|
2.7 |
% |
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2.5 |
% |
|
2.8 |
% |
Expected life (in years) |
0.5 |
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|
0.5 |
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|
0.5 |
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|
0.5 |
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| 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:
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(In thousands, except for weighted-average fair value per share) |
Three months ended
March 31, |
|
Nine months ended
March 31, |
2018 |
|
2017 |
|
2018 |
|
2017 |
Total cash received from employees for the issuance of shares under the ESPP |
$ |
— |
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|
$ |
— |
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|
$ |
20,579 |
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|
$ |
23,694 |
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Number of shares purchased by employees through the ESPP |
— |
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|
— |
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|
264 |
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|
384 |
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Tax benefits realized by the Company in connection with the disqualifying dispositions of shares purchased under the ESPP |
$ |
787 |
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|
$ |
1,035 |
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$ |
1,681 |
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$ |
1,957 |
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Weighted-average fair value per share based on Black-Scholes model |
$ |
23.61 |
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$ |
16.47 |
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$ |
21.89 |
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$ |
15.14 |
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