SHAREHOLDERS' DEFICIT

9 Months Ended

Mar. 23, 2016

Stockholders' Equity Note [Abstract]

SHAREHOLDERS' DEFICIT

SHAREHOLDERS’ DEFICIT

In August 2015, our Board of Directors authorized a $250.0 million increase to our existing share repurchase program resulting in total authorizations of $4,185.0 million. We repurchased approximately 5.4 million shares of our common stock for $266.2 million during the first three quarters of fiscal 2016, including shares purchased as part of our share repurchase program and shares repurchased to satisfy team member tax withholding obligations on the vesting of restricted shares. As of March 23, 2016, approximately $351.6 million was available under our share repurchase authorizations. Our stock repurchase plan has been and will be used to return capital to shareholders and to minimize the dilutive impact of stock options and other share-based awards. We evaluate potential share repurchases under our plan based on several factors, including our cash position, share price, operational liquidity, proceeds from divestitures, borrowings, and planned investment and financing needs. Repurchased common stock is reflected as an increase in treasury stock within shareholders’ deficit.

During the first three quarters of fiscal 2016, we granted approximately 283,000 stock options with a weighted average exercise price per share of $54.02 and a weighted average fair value per share of $11.01, and approximately 308,000 restricted share awards with a weighted average fair value per share of $49.47. Additionally, during the first three quarters of fiscal 2016, approximately 173,000 stock options were exercised resulting in cash proceeds of approximately $4.7 million. We received an excess tax benefit from stock-based compensation of approximately $5.4 million during the first three quarters primarily as a result of the vesting and distribution of restricted stock grants and performance shares and stock option exercises. The excess tax benefit from stock-based compensation represents the additional income tax benefit received resulting from the increase in the fair value of awards from the time of grant to the exercise date.

During the first three quarters of fiscal 2016, we paid dividends of $56.2 million to common stock shareholders, compared to $53.2 million in the prior year. Additionally, our Board of Directors approved a 14% increase in the quarterly dividend from $0.28 to $0.32 per share effective with the dividend declared in August 2015. We also declared a quarterly dividend of $17.8 million in February 2016 which was paid on March 24, 2016. The dividend accrual was included in other accrued liabilities on our consolidated balance sheet as of March 23, 2016.