Stock-Based Compensation (Tables)

12 Months Ended

Jun. 27, 2020

Share-based Payment Arrangement [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 2020, 2019 and 2018 was as follows (in millions):

	Years Ended
	June 27, 2020		June 29, 2019		June 30, 2018
Cost of revenue	$	4.3	$	3.8	$	3.3
Research and development	7.7		6.1		4.9
Selling, general and administrative	32.6		28.3		22.3
Total stock-based compensation expense	$	44.6	$	38.2	$	30.5

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 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
Exercised	—		—
Balance as of June 27, 2020	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 27, 2020.

	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	3.64	5.95	$	7.7	1,180,257	3.64	5.95	$	7.7

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 27, 2020 and the fair value market value of the shares at the purchase date:

Purchase date	July 31, 2019		January 31, 2020
Shares issued	222,956		261,303
Fair market value at purchase date	$	10.98	$	14.45

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 27, 2020 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 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
Awards granted	0.7		3.2		3.9		$	13.76
Awards vested	(0.7	)	(3.4	)	(4.1	)	$	10.40
Awards forfeited	—		(0.4	)	(0.4	)	$	11.44
Non-vested June 27, 2020	1.0		5.1		6.1		$	12.97

(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 2020, 2019 and 2018 was estimated to be $7.7 million, $6.2 million and $4.7 million, respectively, and was calculated using a Monte Carlo simulation. The Company did not grant any PSU awards in fiscal 2020 and 2019. 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 27, 2020		June 29, 2019		June 30, 2018
Volatility of common stock	30.4	%	28.9	%	30.1	%
Average volatility of peer companies	52.5	%	31.0	%	32.6	%
Average correlation coefficient of peer companies	0.1842		0.1383		0.1618
Risk-free interest rate	1.5	%	2.6	%	1.4	%

The Company did not issue stock option grants during the fiscal years ended June 27, 2020, June 29, 2019 and June 30, 2018. 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 27, 2020		June 29, 2019		June 30, 2018
Expected term (in years)	0.5		0.5		0.5
Expected volatility	27.6	%	33.2	%	28.0	%
Risk-free interest rate	1.8	%	2.3	%	1.4	%