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Stock-Based Compensation (Tables) | 12 Months Ended
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Jul. 01, 2017
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
Schedule of the impact on the entity's results of operations of recording stock-based compensation by function | The impact on the Company’s results of operations of recording stock-based compensation expense by function for fiscal 2017, 2016 and 2015 was as follows (in millions):
| Years Ended
| July 1, 2017 |  | July 2, 2016 |  | June 27, 2015
Cost of revenue | $ | 3.6 |  |  | $ | 4.8 |  |  | $ | 4.2 |
Research and development | 5.7 |  |  | 8.4 |  |  | 8.1 |
Selling, general and administrative | 23.9 |  |  | 29.2 |  |  | 35.2 |
Total stock-based compensation expense | $ | 33.2 |  |  | $ | 42.4 |  |  | $ | 47.5 |
Schedule of stock options activities | The following is a summary of stock option activities (amount in millions except per share amounts):
| Options Outstanding
| Number of Shares |  | Weighted-Average Exercise Price (1)
Balance as of June 28, 2014 | 3.5 |  |  | $ | 10.13 |
Exercised | (0.9 | ) |  | 7.58 |
Canceled | (0.1 | ) |  | 14.54 |
Balance as of June 27, 2015 | 2.5 |  |  | 10.84 |
Granted | 1.2 |  |  | 5.95 |
Exercised | (0.7 | ) |  | 4.74 |
Canceled | (0.4 | ) |  | 10.52 |
Net adjustment due to the separation | 0.5 |  |  |
Balance as of July 2, 2016 | 3.1 |  |  | 5.91 |
Granted | — |  |  | — |
Exercised | (1.6 | ) |  | 5.66 |
Canceled | — |  |  | — |
Balance as of July 1, 2017 | 1.5 |  |  | $ | 6.16 |
Expected to vest | 1.4 |  |  | $ | 6.18 |
(1) Weighted average exercise price is calculated using exercise prices prior to the Separation and after the Separation.
Schedule of significant ranges of outstanding and exercisable options | The following table summarizes significant ranges of outstanding and exercisable options as of July 1, 2017, adjusted to reflect the impact of the Lumentum separation.
|  | Options Outstanding |  | Options Exercisable
Range of Exercise Prices |  | Number of Shares |  | Weighted Average Remaining Contractual Term (in years) |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value (in millions) |  | Number of Shares |  | Weighted Average Remaining Contractual Term (in years) |  | Weighted Average Exercise Price |  | Aggregate Intrinsic Value (in millions)
$3.28 - $3.28 |  | 104,352 |  |  | 0.12 |  | $ | 3.28 |  |  |  |  | 104,352 |  |  | 0.12 |  | $ | 3.28 |  |  |
$5.74 - $5.74 |  | 132,544 |  |  | 0.92 |  | 5.74 |  |  |  |  | 132,544 |  |  | 0.92 |  | 5.74 |  |  |
$5.95 - $5.95 |  | 1,180,257 |  |  | 6.62 |  | 5.95 |  |  |  |  | 295,065 |  |  | 6.62 |  | 5.95 |  |  |
$11.82 - $11.82 |  | 107,412 |  |  | 1.87 |  | 11.82 |  |  |  |  | 107,412 |  |  | 1.87 |  | 11.82 |  |  |
|  | 1,524,565 |  |  | 5.35 |  | $ | 6.16 |  |  | $ | 6.8 |  |  | 639,373 |  |  | 3.58 |  | $ | 6.46 |  |  | $ | 2.7 |
Schedule of employee stock purchase plan activity | The following summarizes the shares issued and the fair market value at purchase date, pursuant to the Company’s ESPP during the year ended July 1, 2017:
Purchase date | July 29, 2016 |  | January 31, 2017 |
Shares issued | 410,737 |  | 269,102 |
Fair market value at purchase date | $ | 4.76 |  | $ | 6.77 |
Schedule of changes in nonvested Full Value Awards | A summary of the status of the Company’s non-vested Full Value Awards as of July 1, 2017 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 June 28, 2014 | 1.1 |  |  | 8.3 |  |  | 9.4 |  |  | $ | 13.19 |
Awards granted | 0.7 |  |  | 5.3 |  |  | 6.0 |  |  | 11.78 |
Awards vested | (0.8 | ) |  | (4.4 | ) |  | (5.2 | ) |  | 12.96 |
Awards forfeited | — |  |  | (1.4 | ) |  | (1.4 | ) |  | 13.10 |
Non-vested at June 27, 2015 | 1.0 |  |  | 7.8 |  |  | 8.8 |  |  | 12.36 |
Awards granted | 0.7 |  |  | 6.1 |  |  | 6.8 |  |  | 5.75 |
Awards vested | (0.7 | ) |  | (4.8 | ) |  | (5.5 | ) |  | 6.01 |
Awards forfeited | (0.4 | ) |  | (1.8 | ) |  | (2.2 | ) |  | 7.89 |
Net adjustment due to the separation | 0.4 |  |  | 1.1 |  |  | 1.5 |  |  |
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 |
(1) | Performance Shares refer to the Company’s MSU 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. The majority of MSUs vest in equal annual installments over three to four years based on the attainment of certain total shareholder return performance measures and the employee’s continued service through the vest date. The aggregate grant-date fair value of MSUs granted during fiscal 2017, 2016 and 2015 were estimated to be $3.3 million, $3.7 million and $9.4 million respectively, and were calculated using a Monte Carlo simulation.
Schedule of assumptions used to estimate the fair value of awards on the date of grant | 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
| July 1, 2017 |  | July 2, 2016 |  | June 27, 2015
Volatility of common stock | 33.2 | % |  | 33.8 | % |  | 40.8 | %
Average volatility of peer companies | 36.9 | % |  | 52.9 | % |  | 53.4 | %
Average correlation coefficient of peer companies | 0.1856 |  |  | 0.1103 |  |  | 0.2156 |
Risk-free interest rate | 0.7 | % |  | 0.8 | % |  | 0.6 | %
The Company estimates the fair value of Stock Options and ESPP 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:
| Stock Options |  | Employee Stock Purchase Plans
| July 2, 2016 |  | July 1, 2017 |  | July 2, 2016 |  | June 27, 2015
Expected term (in years) | 5.2 |  |  | 0.5 |  |  | 0.5 |  |  | 0.5 |
Expected volatility | 42.3 | % |  | 33.4 | % |  | 45.7 | % |  | 37.9 | %
Risk-free interest rate | 1.2 | % |  | 0.5 | % |  | 0.4 | % |  | 0.1 | %

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