STOCK-BASED COMPENSATION

3 Months Ended

Sep. 29, 2018

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

We recognize stock-based compensation expense in our condensed consolidated statement of operations related to all share-based awards, including grants of stock options, based on the grant date fair value of such share-based awards.

The amounts included in cost of revenues and operating expenses for stock-based compensation were as follows:



	Three Months Ended
	September 29, 2018			September 30, 2017
	(Thousands)
Stock-based compensation by category of expense:
Cost of revenues	$	562		$	438
Research and development	1,067			867
Selling, general and administrative	2,375			1,894
	$	4,004		$	3,199
Stock-based compensation by type of award:
Stock options	$	8		$	32
Restricted stock awards	4,285			3,464
Inventory adjustment to cost of revenues	(289		)	(297		)
	$	4,004		$	3,199

Included in stock-based compensation for the three months ended September 29, 2018 and September 30, 2017 is approximately $0.3 million and $0.7 million, respectively, in stock-based compensation cost related to the issuance of PSUs granted in August 2015 and August 2016. We recorded no stock-based compensation expense related to the issuance of PSUs granted in August 2017 as we determined that the achievement of the performance conditions associated with these PSUs was not probable as of September 29, 2018. The amount of stock-based compensation expense recognized in any one period related to PSUs can vary based on the achievement or anticipated achievement of the performance conditions. If the performance conditions are not met or not expected to be met, no compensation cost would be recognized on the shares underlying the PSUs, and any previously recognized compensation expense related to those PSUs would be reversed.

As of September 29, 2018 and June 30, 2018, we capitalized $1.2 million and $0.9 million, respectively, of stock-based compensation in inventory.

As of September 29, 2018, we had minimal unrecognized stock-based compensation expense related to unvested stock options, that will be recognized over a weighted-average period of 0.2 years, and $46.9 million in unrecognized stock-based compensation expense related to unvested time-based and performance-based restricted stock awards that will be recognized over a weighted-average period of 2.7 years.