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Stock-Based Compensation | 12 Months Ended
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Jun. 29, 2025
Share-Based Payment Arrangement [Abstract] |
Stock-Based Compensation | Stock-Based Compensation Overview of Employee Stock-Based Compensation Plans The Company currently has two equity-based compensation plans, the 2023 Long-Term Incentive Compensation Plan (the "2023 LTIP") and the 2025 Inducement Award Plan (the "Inducement Plan"), from which stock-based compensation awards can be granted to employees and, in the case of the 2023 LTIP, directors. The terms of the Inducement Plan are substantially similar to the 2023 LTIP but with such other terms and conditions intended to comply with Section 303A.08 of the New York Stock Exchange Company Listed Manual. At June 29, 2025, there were 6.5 million shares authorized for issuance under the 2023 LTIP and 3.9 million shares remaining for future grants. At June 29, 2025, there were 2.0 million shares authorized for issuance under the Inducement Plan. all of which are remaining for future grants. The 2023 LTIP and the Inducement Plan provide for awards in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and other awards. The Company also previously had an Employee Stock Purchase Plan ("ESPP") that provided employees with the opportunity to purchase common stock at a discount. In April 2025, the Compensation Committee approved the termination of the ESPP, which was effective immediately. The ESPP limited employee contributions to 15% of each employee’s compensation (as defined in the plan) and allowed employees to purchase shares at a 15% discount, subject to IRS limitations. The ESPP provided for a twelve-month participation period, divided into two equal six-month purchase periods, and also provided a look-back feature. At the end of each six-month period in April and October, participants could purchase the Company’s common stock through the ESPP at a 15% discount to the fair market value of the common stock on the first day of the twelve-month participation period or the purchase date, whichever is lower. The ESPP also provided an automatic reset feature to start participants on a new twelve-month participation period if the fair market value of common stock declines during the first six-month purchase period. Restricted Stock Units A summary of nonvested restricted stock units (RSUs) outstanding as of June 29, 2025 and changes during the year then ended is as follows (shares in thousands):
| Number of RSUs |  | Weighted Average Grant-Date Fair Value
Nonvested at June 30, 2024 | 3,038 |  |  | $72.33 |
Granted | 4,879 |  |  | 16.42 |
Vested | (908) |  |  | 66.59 |
Forfeited | (2,382) |  |  | 37.85 |
Nonvested at June 29, 2025 | 4,627 |  |  | $32.41 |
The aggregate fair value of awards vested in fiscal years ended June 29, 2025, June 30, 2024 and June 25, 2023, based on the market price of the Company's common stock on the vesting date, was $13.1 million, $55.2 million and $61.6 million, respectively. As of June 29, 2025, there was $74.6 million of unrecognized compensation cost related to nonvested awards, which is expected to be recognized over a weighted average period of 2.48 years. Stock-Based Compensation Valuation and Expense Total stock-based compensation expense was classified in the consolidated statements of operations as follows:
| Fiscal Years Ended
(in millions of U.S. Dollars) | June 29, 2025 |  | June 30, 2024 |  | June 25, 2023
Cost of revenue, net | $36.9 |  |  | $28.5 |  |  | $20.3 |
Research and development | 11.6 |  |  | 11.4 |  |  | 11.2 |
Sales, general and administrative | 24.8 |  |  | 45.0 |  |  | 41.2 |
Total stock-based compensation expense | $73.3 |  |  | $84.9 |  |  | $72.7 |
Stock-based compensation expense may differ from the impact of stock-based compensation to additional paid in capital due to manufacturing related stock-based compensation capitalized within inventory. The Black-Scholes and Monte Carlo option pricing models require the input of highly subjective assumptions. The assumptions listed below represent management's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if other assumptions had been used, recorded share-based compensation expense could have been materially different from that depicted above. The range of assumptions used to value stock issued under the ESPP were as follows:
| Fiscal Years Ended
| June 29, 2025 |  | June 30, 2024 |  | June 25, 2023
Risk-free interest rate | 4.28 - 5.21% |  | 5.44 - 5.54% |  | 4.57 - 5.06%
Expected life, in years | 0.5 - 1.0 |  | 0.5 - 1.0 |  | 0.5 - 1.0
Volatility | 73.7 - 100.2% |  | 73.5 - 74.4% |  | 66.8 - 86.2%
Dividend yield | — |  |  | — |  |  | — |
The range of assumptions used for performance-based awards with market conditions were as follows:
| Fiscal Years Ended
| June 29, 2025 |  | June 30, 2024 |  | June 25, 2023
Risk-free interest rate | 3.92% |  | 4.52% |  | 2.80%
Expected life, in years | 3.0 |  | 3.0 |  | 3.0
Average volatility of peer companies | 67.4% |  | 65.9% |  | 68.8%
Average correlation coefficient of peer companies | 0.41 |  | 0.44 |  | 0.48
Dividend yield | — |  |  | — |  |  | — |
Awards are valued using the Monte Carlo model. All performance-based awards with market conditions for each fiscal year presented were issued on a single date each year and therefore no range is shown. The following describes each of these assumptions and the Company’s methodology for determining each assumption: Risk-Free Interest Rate The Company estimates the risk-free interest rate using the United States Treasury bill rate with a remaining term equal to the expected life of the award. Expected Life The expected life represents the period the awards are expected to be outstanding. In determining the appropriate expected life of its stock options, the Company segregates its grantees into categories based upon employee levels that are expected to be indicative of similar option-related behavior. The expected useful lives for each of these categories are then estimated giving consideration to (1) the weighted average vesting periods, (2) the contractual lives of the stock options, (3) the relationship between the exercise price and the fair market value of the Company’s common stock, (4) expected employee turnover, (5) the expected future volatility of the Company’s common stock, and (6) past and expected exercise behavior, among other factors. Expected Volatility The Company estimates expected volatility for the options and ESPP awards. giving consideration to the expected life of the respective award, the Company’s current expected growth rate, implied volatility in traded options for its common stock, and the historical volatility of its common stock. For purposes of estimating volatility for use in the Monte Carlo model for the market-based awards, the Company utilizes historical volatilities of the Company and the members of the defined peer group. Expected Dividend Yield The Company estimates the expected dividend yield by giving consideration to its current dividend policies as well as those anticipated in the future considering the Company’s current plans and projections. The Company has not historically issued dividends. Correlation Coefficient The correlation coefficients are calculated based upon the price data used to calculate the historical volatilities and are used to model the way in which each entity tends to move in relation to its peers.

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