Quarterly report pursuant to Section 13 or 15(d)

Equity and Long-Term Incentive Compensation Plans (Tables)

v3.10.0.1
Equity and Long-Term Incentive Compensation Plans (Tables)
3 Months Ended
Sep. 30, 2018
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, 2018
3,680

Restricted stock units granted (2)
(637
)
Restricted stock units granted adjustment (3)
5

Restricted stock units canceled
4

Balance as of September 30, 2018
3,052

__________________ 
(1)
The number of restricted stock units reflects the application of the award multiplier (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 three months ended September 30, 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 September 30, 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 three months ended September 30, 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 (0.4 million shares for the three months ended September 30, 2018 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 three months ended September 30, 2018.
Schedule of Stock-based Compensation Expense
The following table shows pre-tax stock-based compensation expense for the indicated periods: 
 
Three months ended
September 30,
(In thousands)
2018
 
2017
Stock-based compensation expense by:
 
 
 
Costs of revenues
$
1,831

 
$
1,416

Research and development
2,519

 
2,171

Selling, general and administrative
11,788

 
10,444

Total stock-based compensation expense
$
16,138

 
$
14,031

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
September 30, 2018
 
As of
June 30, 2018
Inventory
$
4,817

 
$
4,580

Schedule of Restricted Stock Activity
The following table shows the activity and weighted-average grant date fair value for restricted stock units during the three months ended September 30, 2018:
Restricted Stock Units
Shares(1)
(In thousands)
 
Weighted-Average
Grant Date
Fair Value
Outstanding restricted stock units as of June 30, 2018(2)
2,014

 
$
76.50

Granted(2)
318

 
$
118.47

Granted adjustments(3)
(2
)
 
$
50.88

Vested and released
(332
)
 
$
63.72

Withheld for taxes
(234
)
 
$
63.72

Forfeited
(2
)
 
$
87.87

Outstanding restricted stock units as of September 30, 2018(2)
1,762

 
$
88.21

__________________ 
(1)
Share numbers reflect actual shares subject to awarded restricted stock units. 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 September 30, 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 (42 thousand shares for the fiscal year ended June 30, 2017, 0.2 million shares for the fiscal year ended June 30, 2018 and 0.2 million shares for the three months ended September 30, 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.
(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 three months ended September 30, 2018.
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
September 30,
(In thousands, except for weighted-average grant date fair value)
2018
 
2017
Weighted-average grant date fair value per unit
$
118.47

 
$
88.96

Grant date fair value of vested restricted stock units
$
36,072

 
$
36,534

Tax benefits realized by the Company in connection with vested and released restricted stock units
$
6,918

 
$
18,412


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 model and the straight-line attribution approach with the following weighted-average assumptions: 
 
Three months ended
September 30,
 
2018
 
2017
Stock purchase plan:
 
 
 
Expected stock price volatility
30.0
%
 
25.9
%
Risk-free interest rate
1.9
%
 
0.9
%
Dividend yield
2.9
%
 
2.6
%
Expected life (in years)
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
September 30,
2018
 
2017
Tax benefits realized by the Company in connection with the disqualifying dispositions of shares purchased under the ESPP
$
511

 
$
847

Weighted-average fair value per share based on Black-Scholes model
$
22.73

 
$
19.04