Stock Options And Other Share Based Compensation (Tables)

12 Months Ended

Jul. 03, 2015

Stock Options And Other Share Based Compensation (Tables) [Abstract]

Share Based Compensation Expense

The following table summarizes the amounts and classification of share-based compensation expense:

		2015		2014		2013
		(In millions)
Total expense		$	37	$	35	$	33
Included in:
	Cost of product sales and services	$	4	$	4	$	2
	Engineering, selling and administrative expenses		33		31		31
	Income from continuing operations		37		35		33
Tax effect on share-based compensation expense			(11)		(11)		(10)
Total share-based compensation expense after-tax		$	26	$	24	$	23

Assumptions used in calculating fair value of stock option grants

A summary of the significant assumptions used in determining the fair value of stock option grants under our SIPs is as follows:

	2015		2014		2013
Expected dividends	2.7	%	2.8	%	3.0	%
Expected volatility	24.3	%	30.7	%	33.5	%
Risk-free interest rates	1.7	%	1.7	%	0.7	%
Expected term (years)	5.02		5.10		5.23

Summary of stock option activity

A summary of stock option activity under our SIPs as of July 3, 2015 and changes during fiscal 2015 is as follows:

		Weighted		Weighted
		Average		Average
		Exercise		Remaining
		Price		Contractual	Aggregate
	Shares	Per Share		Term	Intrinsic Value
				(In years)	(In millions)
Stock options outstanding at June 27, 2014	3,873,644	$	47.13
Stock options forfeited or expired	(262,097)	$	58.47
Stock options granted	1,333,140	$	73.30
Stock options exercised	(716,564)	$	45.30
Stock options outstanding at July 3, 2015	4,228,123	$	54.99	7.58	$	96.89
Stock options exercisable at July 3, 2015	1,909,215	$		6.28	$	65.13

Nonvested stock options

A summary of the status of our nonvested stock options at July 3, 2015 and changes during fiscal 2015 is as follows:

		Weighted-
		Average
		Grant-Date
		Fair Value
	Shares	Per Share
Nonvested stock options at June 27, 2014	2,418,302		$	11.25
Stock options granted	1,333,140		$	12.51
Stock options vested	(1,432,534)		$	10.96
Nonvested stock options at July 3, 2015	2,318,908		$	12.16

Summary of restricted stock and restricted stock units

A summary of the status of these awards at July 3, 2015 and changes during fiscal 2015 is as follows:

		Weighted-
		Average
		Grant
		Price
	Shares	Per Share
Restricted stock and restricted stock units outstanding at June 27, 2014	688,856		$	48.95
Restricted stock and restricted stock units granted	159,960		$	78.05
Restricted stock and restricted stock units vested	(332,007)		$	41.95
Restricted stock and restricted stock units forfeited	(54,361)		$	53.75
Restricted stock and restricted stock units outstanding at July 3, 2015	462,448		$	63.48

Summary of performance shares and performance share units

A summary of the status of these awards at July 3, 2015 and changes during fiscal 2015 is as follows:

		Weighted-
		Average
		Grant
		Price
	Shares	Per Share
Performance share units outstanding at June 27, 2014	811,323		$	48.56
Performance share units granted	229,943		$	64.23
Performance share units vested	(202,579)		$	35.90
Performance share units forfeited	(75,331)		$	51.67
Performance share units outstanding at July 3, 2015	763,356		$	56.33