Shareholders' Equity

12 Months Ended

Jun. 28, 2014

Shareholders' Equity [Abstract]

Shareholders' Equity

SHAREHOLDERS’ EQUITY

In January 2003, the Board of Directors adopted a policy of paying quarterly dividends. The Company paid dividends of $46.1 million, $33.0 million and $29.0 million, or $0.39, $0.35 and $0.31 per share, during fiscal 2014, 2013 and 2012, respectively. The declaration and payment of dividends and the amount paid, if any, are subject to the discretion of the Board of Directors and depend on the earnings, financial condition, capital and surplus requirements of the Company and other factors the Board of Directors may consider relevant.

The Company does not currently have a common stock repurchase program, but does repurchase shares in private party transactions from time to time. Private party transactions are shares repurchased in connection with the vesting of restricted stock awards to satisfy employees' minimum statutory tax withholding obligations. During fiscal 2014, the Company repurchased 60 thousand shares of common stock for $7.5 million in private party transactions. During fiscal 2013 and 2012, the Company repurchased 112 thousand and 90 thousand shares of common stock for $12.4 million and $8.2 million, respectively, in private party transactions. All ordinary shares repurchased by the Company will either be canceled or held as treasury shares available for reissuance in the future for general corporate purposes.

Share-Based Compensation Plans

All share-based compensation for employees and directors is granted under the 2008 Long-Term Incentive Plan, as amended. The plan has been approved by the Company’s shareholders and provides for the granting of awards to its employees and directors. As of June 28, 2014, there were 5.5 million shares available to be granted. The purpose of the plan is to attract and retain individuals of exceptional managerial talent and encourage these individuals to acquire a vested interest in the Company’s success and prosperity. The awards that are granted under this program include non-qualified stock options, restricted shares and restricted share units. Restricted shares are generally service-based, requiring a certain length of service before vesting occurs, while restricted share units can be either service-based or performance-based. Performance-based restricted share units require a certain length of service until vesting; however, they contain an additional performance feature, which can vary the amount of shares ultimately paid out based on certain performance criteria specified in the plan. Awards granted under the plan vest and may be exercised and/or sold from one to ten years after the date of grant based on a vesting schedule.

Share-based compensation expense was $24.6 million for fiscal 2014, $18.4 million for fiscal 2013, and $19.0 million for fiscal 2012. As of June 28, 2014, unrecognized share-based compensation expense was $23.4 million and the weighted average period over which the expense is expected to be recognized was approximately 1.9 years. Proceeds from the exercise of stock options and excess income tax benefits attributable to stock options exercised are credited to common stock.

Stock Options

A summary of activity related to stock options is presented below (in thousands, except per share amounts):

	Fiscal Year Ended June 28, 2014
	Number of Options		Weighted Average Exercise Price Per Share		Weighted Average Remaining Term in Years	Aggregate Intrinsic Value
Beginning options outstanding	891		$	63.24
Granted	165		$	119.87
Exercised	(200	)	$	48.94
Forfeited or expired	(6	)	$	110.53
Ending options outstanding	850		$	77.26	6.4	$	58.4
Options exercisable	491		$	53.06	4.9	$	45.6
Options expected to vest	351		$	110.15	8.3	$	12.6

The aggregate intrinsic value for options exercised during the year was $17.8 million for fiscal 2014, $29.5 million for fiscal 2013 and $38.9 million for fiscal 2012. The weighted average fair value per share at the grant date for options granted during the year was $38.28 for fiscal 2014, $34.24 for fiscal 2013 and $28.68 for fiscal 2012. The fair values were estimated using the Black-Scholes option pricing model with the following weighted average assumptions:

	Fiscal Year
	2014		2013		2012
Dividend yield	0.3	%	0.3	%	0.4	%
Volatility, as a percent	32.7	%	34.9	%	34.7	%
Risk-free interest rate	1.8	%	0.8	%	1.0	%
Expected life in years	5.3		5.4		5.4

The valuation model utilizes historical volatility. The risk-free interest rate is based on the yield of U.S. government securities with a maturity date that coincides with the expected term of the option. The expected life in years is estimated based on past exercise behavior of employees.

Nonvested Restricted Shares

A summary of activity related to nonvested restricted shares is presented below (in thousands, except per share amounts):

	Fiscal Year Ended June 28, 2014
	Number of Nonvested Shares		Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Term in Years	Aggregate Intrinsic Value
Beginning nonvested restricted shares outstanding	9		$	100.84
Granted	16		$	145.19
Vested	(16	)	$	145.19
Forfeited	—		$	—
Ending nonvested restricted shares outstanding	9		$	100.84	0.4	$	1,267

The weighted average fair value per share at the date of grant for restricted shares granted during the year was $145.19 for fiscal 2014, $100.84 for fiscal 2013 and $89.42 for fiscal 2012. The total fair value of restricted shares that vested during the year was $2.3 million for fiscal 2014, $0.6 million for fiscal 2013 and $0.7 million for fiscal 2012.

Nonvested Service-Based Restricted Share Units

A summary of activity related to nonvested service-based restricted share units is presented below (in thousands, except per share amounts):

	Fiscal Year Ended June 28, 2014
	Number of Nonvested Service- Based Share Units		Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Term in Years	Aggregate Intrinsic Value
Beginning nonvested service-based share units outstanding	260		$	83.60
Granted	115		$	133.08
Vested	(109	)	$	61.89
Forfeited	(19	)	$	130.83
Ending non-vested service-based share units outstanding	247		$	112.89	1.1	$	36,087

The weighted average fair value per share at the date of grant for service-based restricted share units granted during the year was $133.08 for fiscal 2014, $109.20 for fiscal 2013 and $90.99 for fiscal 2012. The total fair value of service-based restricted share units that vested during the year was $6.8 million for fiscal 2014, $5.7 million for fiscal 2013 and $5.7 million for fiscal 2012.

Nonvested Performance-Based Restricted Share Units

A summary of activity related to nonvested performance-based restricted share units is presented below (in thousands, except per share amounts):

	Fiscal Year Ended June 28, 2014
	Number of Nonvested Performance- Based Share Units		Weighted Average Grant Date Fair Value Per Share		Weighted Average Remaining Term in Years	Aggregate Intrinsic Value
Beginning nonvested performance-based share units outstanding	158		$	84.85
Granted	107		$	119.85
Vested	(78	)	$	59.22
Forfeited	(5	)	$	11.59
Ending nonvested performance-based share units outstanding	182		$	109.63	1.4	$	26,552

The weighted average fair value per share at the date of grant for performance-based restricted share units granted during the year was $119.85 for fiscal 2014, $108.60 for fiscal 2013 and $90.72 for fiscal 2012. The weighted average fair value of performance-based restricted share units can fluctuate depending upon the success or failure of the achievement of performance criteria as set forth in the plan. The total fair value of performance-based restricted share units that vested during the year was $4.6 million for fiscal 2014, $5.0 million for fiscal 2013 and $4.3 million for fiscal 2012.