XML 32 R18.htm IDEA: XBRL DOCUMENT v3.20.2
Stock-Based Compensation
 12 Months Ended
Jul. 03, 2020
Share-based Payment Arrangement [Abstract]  
Stock-Based Compensation Stock-Based Compensation
STOCK INCENTIVE PLANS
The Board of Directors approved the Company’s 2018 Stock Incentive Plan (the “2018 Plan”) on July 23, 2018. The 2018 Plan became effective upon the approval of shareholders at the Company’s annual meeting held on October 24, 2018. The aggregate number of shares authorized for issuance under the 2018 Plan is 2,862 shares, with an additional 710 shares rolled into the 2018 Plan that were available for future grant under the Company’s 2005 Stock Incentive Plan, as amended and restated (the “2005 Plan”) at the time of shareholder approval of the 2018 Plan. The 2018 Plan replaced the 2005 Plan. On November 6, 2019, an additional 184 shares from the 2005 Plan were rolled into the 2018 Plan as a result of forfeiture, cancellation, or termination (other than by exercise) of previously-made grants under the 2005 Plan. The shares authorized for issuance under the 2018 Plan will continue to be increased by any future cancellations, forfeitures or terminations (other than by exercise) of awards under the 2005 Plan. The foregoing does not affect any outstanding awards under the 2005 Plan, which remain in full force and effect in accordance with their terms. The 2018 Plan provides for the grant of non-qualified and incentive stock options, restricted stock, stock appreciation rights and deferred stock awards to employees and non-employees. All stock options are granted with an exercise price of not less than 100% of the fair value of the Company’s common stock at the date of grant and the options generally have a term of seven years. There were 2,632 shares available for future grant under the 2018 Plan at July 3, 2020.
As part of the Company's ongoing annual equity grant program for employees, the Company grants performance-based restricted stock awards to certain executives and employees pursuant to the 2018 Plan. Performance awards vest based on the requisite service period subject to the achievement of specific financial performance targets. Based on the performance targets, some of these awards require graded vesting which results in more rapid expense recognition compared to traditional time-based vesting over the same vesting period. The Company monitors the probability of achieving the performance targets on a quarterly basis and may adjust periodic stock compensation expense accordingly based on its determination of the likelihood for reaching targets. The performance targets generally include the achievement of internal performance targets in relation to a peer group of companies.
EMPLOYEE STOCK PURCHASE PLAN
The number of shares authorized for issuance under the Company’s 1997 Employee Stock Purchase Plan, as amended and restated (“ESPP”), is 1,800 shares. Under the ESPP, rights are granted to purchase shares of common stock at 85% of the lesser of the market value of such shares at either the beginning or the end of each six-month offering period. The ESPP permits employees to purchase common stock through payroll deductions, which may not exceed 10% of an employee’s compensation as defined in the ESPP. The number of shares issued under the ESPP during fiscal years 2020, 2019, and 2018 was 89, 102 and 82, respectively. Shares available for future purchase under the ESPP totaled 29 at July 3, 2020.
STOCK OPTION AND AWARD ACTIVITY
The following table summarizes activity of the Company’s stock option plans since June 30, 2018: 
 Options Outstanding
 Number of
Shares		Weighted Average
Exercise Price		Weighted Average
Remaining
Contractual Term
(Years)		Aggregate
Intrinsic Value as
of 7/3/2020
Outstanding at June 30, 20184 $5.52 3.13
Granted— — 
Exercised— — 
Cancelled— — 
Outstanding at June 30, 20194 $5.52 2.13
Granted— $— 
Exercised(1)$5.52 
Cancelled— $— 
Outstanding at July 3, 20203 $5.52 1.12$208 
Vested and expected to vest at July 3, 20203 $5.52 1.12$208 
Exercisable at July 3, 20203 $5.52 1.12$208 
The intrinsic value of the options exercised during fiscal years 2020, and 2018 was $67 and $1,780, respectively. There were no options exercised during fiscal 2019. Non-vested stock options are subject to the risk of forfeiture until the fulfillment of specified conditions. As of July 3, 2020, June 30, 2019 and 2018, there was no unrecognized compensation cost related to non-vested options granted under the Company’s stock plans. There were no stock options granted during fiscal years 2020, 2019 or 2018.
The following table summarizes the status of the Company’s non-vested restricted stock awards since June 30, 2018:
 Non-Vested Restricted Stock Awards
 Number of
Shares		Weighted Average
Grant Date
Fair Value
Outstanding at June 30, 20181,135 $27.26 
Granted468 52.50 
Vested(478)51.50 
Forfeited(79)36.97 
Outstanding at June 30, 20191,046 $39.62 
Granted522 80.87 
Vested(562)31.40 
Forfeited(49)54.96 
Outstanding at July 3, 2020957 $61.59 
The total fair value of restricted stock awards vested during fiscal years 2020, 2019, and 2018 was $46,089, $24,596 and $38,344, respectively.
Non-vested restricted stock awards are subject to the risk of forfeiture until the fulfillment of specified conditions. As of July 3, 2020, there was $44,690 of total unrecognized compensation cost related to non-vested restricted stock awards granted under the Company’s stock plans that is expected to be recognized over a weighted-average period of 2.4 years from July 3, 2020. As of June 30, 2019, there was $32,886 of total unrecognized compensation cost related to non-vested restricted stock awards granted under the Company’s stock plans that is expected to be recognized over a weighted-average period of 2.5 years from June 30, 2019.
STOCK-BASED COMPENSATION EXPENSE
The Company recognizes expense for its share-based payment plans in the Consolidated Statements of Operations and Comprehensive Income in accordance with ASC 718. The Company had $562 and $241 of capitalized stock-based compensation expense on the Consolidated Balance Sheets as of July 3, 2020 and June 30, 2019, respectively. Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the service period. The following table presents share-based compensation expenses from continuing operations included in the Company’s Consolidated Statements of Operations and Comprehensive Income:
 Fiscal Years Ended
 July 3, 2020June 30, 2019June 30, 2018
Cost of revenues$989 $820 $502 
Selling, general and administrative21,688 16,188 14,828 
Research and development3,861 2,414 1,984 
Stock-based compensation expense before tax26,538 19,422 17,314 
Income taxes(6,900)(5,263)(5,713)
Stock-based compensation expense, net of income taxes$19,638 $14,159 $11,601