Stock-Based Compensation (Tables)

12 Months Ended

Jun. 29, 2019

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

Schedule of the Impact on Results of Operations of Recording Stock-based Compensation

The impact on the Company’s results of operations of recording stock-based compensation expense by function for fiscal 2019, 2018 and 2017 was as follows (in millions):

	Years Ended
	June 29, 2019		June 30, 2018		July 1, 2017
Cost of revenue	$	3.8	$	3.3	$	3.6
Research and development	6.1		4.9		5.7
Selling, general and administrative	28.3		22.3		23.9
Total stock-based compensation expense	$	38.2	$	30.5	$	33.2

Schedule of Stock Options Activities

The following is a summary of stock option activities (in millions, except per share amounts):

	Options Outstanding
	Number of Shares		Weighted-Average Exercise Price
Balance as of July 2, 2016	3.1		$	5.91
Exercised	(1.6	)	5.66
Balance as of July 1, 2017	1.5		6.16
Exercised	(0.2	)	4.53
Balance as of June 30, 2018	1.3		6.42
Exercised	(0.1	)	10.54
Balance as of June 29, 2019	1.2		$	5.95
Expected to vest	1.2		$	5.95

Schedule of Significant Ranges of Outstanding and Exercisable Options

The following table summarizes outstanding and exercisable options as of June 29, 2019.

	Options Outstanding						Options Exercisable
Exercise Price	Number of Shares	Weighted Average Remaining Contractual Term (years)	Weighted Average Exercise Price		Aggregate Intrinsic Value (millions)		Number of Shares	Weighted Average Remaining Contractual Term (years)	Weighted Average Exercise Price		Aggregate Intrinsic Value (millions)
$5.95	1,180,257	4.63	5.95		$	8.7	885,193	4.63	5.95		$	6.5
	1,180,257	4.63	$	5.95	$	8.7	885,193	4.63	$	5.95	$	6.5

Schedule of Employee Stock Purchase Plan Activity

The following summarizes the shares purchased and issued, pursuant to the Company’s ESPP during the year ended June 29, 2019 and the fair value market value of the shares at the purchase date:

Purchase date	July 31, 2018		January 31, 2019
Shares issued	240,807		209,985
Fair market value at purchase date	$	8.67	$	10.15

Schedule of Changes in Nonvested Full Value Awards

A summary of the status of the Company’s non-vested Full Value Awards as of June 29, 2019 and changes during the same period is presented below (amount in millions, except per share amounts):

	Full Value Awards
	Performance Shares (1)		Non-Performance Shares		Total Number of Shares		Weighted-average Grant-dated Fair Value
Non-vested at July 2, 2016	1.0		8.4		9.4		$	6.55
Awards granted	0.6		3.7		4.3		$	7.86
Awards vested	(0.6	)	(4.5	)	(5.1	)	$	6.66
Awards forfeited	—		(1.3	)	(1.3	)	$	6.83
Non-vested at July 1, 2017	1.0		6.3		7.3		$	7.17
Awards granted	0.8		3.3		4.1		$	10.01
Awards vested	(0.6	)	(3.6	)	(4.2	)	$	7.10
Awards forfeited	(0.1	)	(0.7	)	(0.8	)	$	8.01
Non-vested at June 30, 2018	1.1		5.3		6.4		$	8.93
Awards granted	0.5		3.9		4.4		$	11.52
Awards vested	(0.6	)	(3.2	)	(3.8	)	$	8.61
Awards forfeited	—		(0.3	)	(0.3	)	$	9.63
Non-vested June 29, 2019	1.0		5.7		6.7		$	10.81

(1)

Performance Shares refer to the Company’s MSU and PSU awards, where the actual number of shares awarded upon vesting may be higher or lower than the target amount depending on the achievement of the relevant market conditions and performance goal achievement. The majority of MSUs vest in equal annual installments over three to four years based on the attainment of certain total shareholder performance measures and the employee’s continued service through the vest date. The aggregate grant-date fair value of MSUs granted during fiscal 2019, 2018 and 2017 was estimated to be $6.2 million, $4.7 million and $3.3 million, respectively, and was calculated using a Monte Carlo simulation. The Company did not grant any PSU awards in fiscal 2019 and the fair value of the PSUs granted in fiscal 2018 was $1.4 million. PSU awards vest based on the attainment of certain performance measures and the employee’s continued service through the vest date.

Schedule of Valuation Assumptions of Fair Value Awards

The Company estimates the fair value of the MSUs on the date of grant using a Monte Carlo simulation with the following assumptions:

	Years Ended
	June 29, 2019		June 30, 2018		July 1, 2017
Volatility of common stock	28.9	%	30.1	%	33.2	%
Average volatility of peer companies	31.0	%	32.6	%	36.9	%
Average correlation coefficient of peer companies	0.1383		0.1618		0.1856
Risk-free interest rate	2.6	%	1.4	%	0.7	%

The Company did not issue stock option grants during the fiscal years ended June 29, 2019, June 30, 2018 and July 1, 2017. The Company estimates the fair value ESPP purchase rights using a BSM valuation model. The fair value is estimated on the date of grant using the BSM option valuation model with the following weighted-average assumptions:

	Employee Stock Purchase Plans
	June 29, 2019		June 30, 2018		July 1, 2017
Expected term (in years)	0.5		0.5		0.5
Expected volatility	33.2	%	28.0	%	33.4	%
Risk-free interest rate	2.3	%	1.4	%	0.5	%