STOCK-BASED COMPENSATION

12 Months Ended

Jun. 24, 2015

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Our shareholders approved stock-based compensation plans including the Stock Option and Incentive Plan and the Stock Option and Incentive Plan for Non-Employee Directors and Consultants (collectively, the “Plans”). In November 2013, our shareholders approved an amendment to the Stock Option and Incentive Plan increasing the number of shares authorized for issuance by 2.0 million shares. The total number of shares authorized for issuance to employees and non-employee directors and consultants under the Plans is currently 37.3 million. The Plans provide for grants of options to purchase our common stock, restricted stock, restricted stock units, performance shares and stock appreciation rights.

(a) Stock Options

Expense related to stock options issued to eligible employees under the Plans is recognized using a graded-vesting schedule over the vesting period or to the date on which retirement eligibility is achieved, if shorter. Stock options generally vest over a period of 1 to 4 years and have contractual terms to exercise of 8 years. Full or partial vesting of awards may occur upon a change in control (as defined in the Plans), or upon an employee’s death, disability or involuntary termination.

Transactions during fiscal 2015 were as follows (in thousands, except option prices):



	Number of Options		Weighted Average Exercise Price		Weighted Average Remaining Contractual Life (Years)	Aggregate Intrinsic Value
Options outstanding at June 25, 2014	1,701		$	24.80
Granted	279		51.24
Exercised	(765	)	21.25
Forfeited or canceled	(42	)	34.45
Options outstanding at June 24, 2015	1,173		$	33.08	4.8	$	28,849
Options exercisable at June 24, 2015	624		$	24.06	3.4	$	20,907

At June 24, 2015, unrecognized compensation expense related to stock options totaled approximately $2.5 million and will be recognized over a weighted average period of 1.8 years. The intrinsic value of options exercised totaled approximately $28.1 million, $25.7 million and $22.4 million during fiscal 2015, 2014 and 2013, respectively. The tax benefit realized on options exercised totaled approximately $9.2 million, $8.9 million and $8.1 million during fiscal 2015, 2014 and 2013, respectively.

(b) Restricted Share Awards

Restricted share awards consist of performance shares, restricted stock and restricted stock units. Performance shares and most restricted stock units issued to eligible employees under the Plans generally vest in full on the third anniversary of the date of grant, while restricted stock units issued to eligible employees under our career equity plan generally vest upon each employee’s retirement from the Company. Expense is recognized ratably over the vesting period, or to the date on which retirement eligibility is achieved, if shorter. Restricted stock and restricted stock units issued to non-employee directors under the Plans generally vest in full on the fourth anniversary of the date of grant or upon each director’s retirement from the Board and are expensed when granted. Full or partial vesting of awards may occur upon a change in control (as defined in the Plans), or upon an employee’s death, disability or involuntary termination.

Transactions during fiscal 2015 were as follows (in thousands, except fair values):



	Number of Restricted Share Awards		Weighted Average Fair Value Per Award
Restricted share awards outstanding at June 25, 2014	1,508		$	29.39
Granted	282		50.71
Vested	(567	)	20.68
Forfeited	(64	)	36.58
Restricted share awards outstanding at June 24, 2015	1,159		$	38.44

At June 24, 2015, unrecognized compensation expense related to restricted share awards totaled approximately $13.7 million and will be recognized over a weighted average period of 2.3 years. The fair value of shares that vested during fiscal 2015, 2014, and 2013 totaled approximately $34.2 million, $42.2 million and $22.0 million, respectively.