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Stock Options and Other Share-Based Compensation
9 Months Ended
Mar. 30, 2012
Stock Options and Other Share-Based Compensation [Abstract]  
Stock Options and Other Share-Based Compensation

Note C Stock Options and Other Share-Based Compensation

 

As of March 30, 2012, we had two shareholder-approved employee stock incentive plans (“SIPs”) under which options or other share-based compensation was outstanding, and we had the following types of share-based awards outstanding under our SIPs: stock options, performance share awards, performance share unit awards, restricted stock awards and restricted stock unit awards. We believe that such awards more closely align the interests of employees with those of shareholders. Certain share-based awards provide for accelerated vesting if there is a change in control (as defined under our SIPs). The compensation cost related to our share-based awards that was charged against income for the quarter and three quarters ended March 30, 2012 was $9.8 million and $26.4 million, respectively. The compensation cost related to our share-based awards that was charged against income for the quarter and three quarters ended April 1, 2011 was $10.4 million and $36.5 million, respectively.

 

Grants to employees under our SIPs during the quarter ended March 30, 2012 consisted of 5,850 stock options and 5,100 restricted stock unit awards. Grants to employees under our SIPs during the three quarters ended March 30, 2012 consisted of 1,831,352 stock options, 271,275 performance share unit awards, 365,650 restricted stock unit awards and 10,400 restricted stock awards. The fair value of each option award was estimated on the date of grant using the Black-Scholes-Merton option-pricing model which used the following assumptions: expected volatility of 34.63 percent; expected dividend yield of 2.24 percent; and expected life of 5.10 years.