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Stockholders' Equity
 9 Months Ended
Apr. 01, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]  
Stockholders' Equity
Stockholders’ Equity
2007 Stock Equity Plan and Activities
We have one stock incentive plan for our employees and nonemployee directors, the 2007 Stock Equity Plan, as amended and restated effective November 13, 2015 (the “2007 Stock Plan”). As of April 1, 2016, we have various incentive programs under the 2007 Stock Plan, including annual and long-term incentive programs (“AIP” or “LTIP”) and a global equity program (“GEP”). The Company is authorized to issue up to 26.9 million shares of common stock under the 2007 Stock Plan.
During the first three quarters of fiscal 2016, we awarded 1,831,158 market-based stock units and 2,293,647 restricted stock units associated with our fiscal 2016 LTIP under the 2007 Stock Plan. For the market-based stock units, the performance criteria are based on multiple target closing prices of the Company’s common stock for the fiscal years ending 2016, 2017 and 2018. Once the shares are earned for fiscal years ending 2016 and 2017, they will be vested on the last day of fiscal 2018. For the shares earned for the fiscal year ending 2018, they will be vested on the date that the Compensation Committee certifies achievement of the performance metrics. Vesting of these shares is dependent on continuous employment with us through the date the performance metric is achieved.
During the first quarter of fiscal 2016, we cancelled 803,210 performance stock units due to the performance criteria not being achieved. During the first three quarters of fiscal 2016, we cancelled 65,062 performance stock units, 104,531 share of restricted stock unit, and options to purchase 1,649,094 shares of our common stock due to employee terminations. During the first three quarters of fiscal 2016, options to purchase 242,538 shares of our common stock expired.
We issue new shares of our common stock to our employees upon the exercise of stock options, vesting of restricted stock awards and units or vesting of performance share awards and units. All awards that are cancelled prior to vesting or expire unexercised are returned to the approved pool of reserved shares under the 2007 Stock Plan and made available for future grants. Shares of our common stock remaining available for future issuance under the 2007 Stock Plan totaled 8,542,662 as of April 1, 2016.
Share-Based Compensation
Total compensation expense for share-based awards included in our condensed consolidated statements of operations for the third quarter and first three quarters of fiscal 2016 and 2015 was as follows:
 
Quarter Ended
 
Three Quarters Ended
(In millions)
April 1,
2016
 
April 3,
2015
 
April 1,
2016
 
April 3,
2015
By Expense Category:
 
 
 
 
 
 
 
Cost of revenues
$
0.1

 
$
0.1

 
$
0.1

 
$
0.1

Research and development
—

 
—

 
0.1

 
0.1

Selling and administrative
0.4

 
0.6

 
1.2

 
1.5

Total share-based compensation expense
$
0.5

 
$
0.7

 
$
1.4

 
$
1.7

By Types of Award:
 
 
 
 
 
 
 
Options
$
0.2

 
$
0.4

 
$
0.7

 
$
1.2

Restricted and performance stock awards and units
0.3

 
0.3

 
0.7

 
0.5

Total share-based compensation expense
$
0.5

 
$
0.7

 
$
1.4

 
$
1.7


As of April 1, 2016, there was $3.1 million of total unrecognized compensation expense related to unvested share-based awards granted under our 2007 Stock Plan. This expense is expected to be recognized over a weighted average period of 2.16 years.
The fair value of each option grant under our 2007 Stock Plan was estimated using the Black-Scholes option pricing model on the date of grant. A summary of the significant weighted average assumptions we used in the Black-Scholes valuation model is as follows:
 
Quarter Ended
 
Three Quarters Ended
 
April 1,
2016
 
April 3,
2015
 
April 1,
2016
 
April 3,
2015
Expected dividends
N/A
 
—
%
 
N/A
 
—
%
Expected volatility
N/A
 
54.0
%
 
N/A
 
53.9
%
Risk-free interest rate
N/A
 
1.09
%
 
N/A
 
1.13
%
Expected term (years)
N/A
 
4.33

 
N/A
 
4.25

Weighted average grant date fair value per share granted
N/A
 
$0.56
 
N/A
 
$0.55

The fair value of each market-based stock unit with market condition was estimated using a Monte-Carlo simulation model. A summary of the significant weighted average assumptions we used in the Monte Carlo simulation model is as follows:
 
Quarter Ended
 
Three Quarters Ended
 
April 1,
2016
 
April 3,
2015
 
April 1,
2016
 
April 3,
2015
Expected dividends
N/A
 
N/A
 
—
%
 
N/A
Expected volatility
N/A
 
N/A
 
52.43
%
 
N/A
Risk-free interest rate
N/A
 
N/A
 
1.21
%
 
N/A
Weighted average grant date fair value per share granted
N/A
 
N/A
 
0.21

 
N/A

The fair value of the market-based stock units with market condition criteria is expensed over the derived service period for each separate vesting tranche. If the derived service period is rendered, the total fair value of the award at the date of the grant is recognized as compensation expense even if the market condition is not achieved. No performance stock units were issued during the third quarter of 2016.