Stockholders' Equity

12 Months Ended

Jul. 02, 2016

Equity [Abstract]

Stockholders' Equity

STOCKHOLDERS’ EQUITY

Authorized Shares

On July 23, 2012, in connection with the Opnext acquisition, our stockholders approved an amendment to our Restated Certificate of Incorporation to increase the number of authorized shares of Oclaro to 176.0 million, consisting of 175.0 million shares of common stock and 1.0 million shares of preferred stock. On November 10, 2015, our stockholders approved a further amendment to our Restated Certificate of Incorporation, increasing the number of authorized shares of our common stock from 175.0 million shares to 275.0 million shares.

Common Stock

On May 2, 2014, PECM Strategic Funding L.P. and Providence TMT Debt Opportunity Fund L.P., holders of warrants (the “Warrants”) to purchase shares of our common stock, exercised the Warrants in full. We delivered approximately 1.0 million shares of our common stock in connection with the cashless exercise of the Warrants.

On December 19, 2013, the holders of our convertible notes exercised their rights to exchange the convertible notes for our common stock. The exchange rate for the exchanges was 541.7118 shares of common stock per $1,000 in principal amount of convertible notes. We issued approximately 13.5 million shares of common stock in connection with the exchange, with cash payable in lieu of fractional shares.

Preferred Stock

Our restated certificate of incorporation authorizes us to issue up to 1.0 million shares of preferred stock with designations, rights and preferences determined from time-to-time by our board of directors. To date, we have not issued any preferred stock.

Warrants

On May 6, 2013, we entered into Amendment Number Two to the Credit Agreement (refer to Note 6, Credit Line and Notes for further details), pursuant to which we issued warrants to purchase, in the aggregate, 1,836,000 shares of our common stock at an exercise price of $1.50 per share (subject to adjustment from time to time, as provided in the Warrants). The Warrants were issued by us in consideration of the Term Lenders entering into the Amendment and providing the Term Loan. The offer and sale of the Warrants was not registered under the Securities Act of 1933 in reliance upon the exemption from registration under Section 4(2) of the Securities Act as such transaction did not involve a public offering of securities. We also granted to the Term Lenders certain registration rights with respect to the Warrants.

The warrants were valued using the Black-Scholes pricing model, which were determined to have a value of $0.7 million as of the date of grant. On May 2, 2014, the Term Lenders exercised their Warrants. We delivered approximately 1.0 million shares of our common stock in connection with the cashless exercise of the Warrants.

The following table summarizes activity relating to warrants to purchase our common stock:

	Warrants Outstanding		Weighted- Average Exercise Price
	(Thousands)
Balance at June 29, 2013	1,836		1.50
Exercised	(1,836	)	1.50
Balance at June 28, 2014, June 27, 2015 and July 2, 2016	—		$	—

Accumulated Other Comprehensive Income

The components of accumulated other comprehensive income, net of tax, are as follows:

	July 2, 2016			June 27, 2015
	(Thousands)
Currency translation adjustments	$	40,184		$	41,351
Japan defined benefit plan	(363		)	175
	$	39,821		$	41,526