v3.25.4

Stock-Based Compensation | 6 Months Ended
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Dec. 28, 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 Long-Term Incentive Plan and the Management Incentive Plan, which each provide for awards in the form of incentive stock options, stock appreciation right, restricted stock, restricted stock unit, performance share, performance stock unit, performance unit, other awards, or any combination of these. Please refer to Note 1 "Basis of Presentation and New Accounting Standards" for more information on the two equity-based compensation plans. The Company’s stock-based awards can be either service-based and/or performance-based. Performance-based conditions are generally tied to future financial and/or operating performance of the Company and/or external based market metrics. The compensation expense with respect to performance-based grants is recognized if the Company believes it is probable that the performance condition will be achieved. The Company reassesses the probability of the achievement of the performance condition at each reporting period, and adjusts the compensation expense for subsequent changes in the estimate or actual outcome. As with non-performance based awards, compensation expense is recognized over the vesting period. For performance awards with market conditions, the Company estimates the grant date fair value using the Monte Carlo valuation model and expenses the awards over the vesting period regardless of whether the market condition is ultimately satisfied. Total stock-based compensation expense was classified in the consolidated statements of operations as follows:
| Successor | Predecessor |  |
(in millions of U.S. Dollars) | Period from September 30, 2025 to December 28, 2025 | September 29, 2025 | Three months ended December 29, 2024 |  |  |  |
Cost of revenue, net | $5.9 |  | $— |  | $9.0 |  |  |  |  |
Research and development | 0.3 |  | — |  | 2.9 |  |  |  |  |
Sales, general and administrative | 1.4 |  | — |  | 8.3 |  |  |  |  |
Total stock-based compensation expense | $7.6 |  | $— |  | $20.2 |  |  |  |  |
| Successor | Predecessor
(in millions of U.S. Dollars) | Period from September 30, 2025 to December 28, 2025 | Period from June 30, 2025 to September 29, 2025 | Six months ended December 29, 2024
Cost of revenue, net | $5.9 |  | $7.8 |  | $17.5 |
Research and development | 0.3 |  | 2.2 |  | 6.1 |
Sales, general and administrative | 1.4 |  | 3.6 |  | 20.3 |
Total stock-based compensation expense | $7.6 |  | $13.6 |  | $43.9 |
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. Market or Performance-based stock units During the period from September 30, 2025 to December 28, 2025, the Company granted 1.1 million performance stock units ("PSUs") pursuant to the 2025 MIP. The PSUs vest 50% based on achievement on internal metrics that include revenue and leveraged free cash flow targets, while 50% are earned based on the Company's total stockholder return (“TSR”) relative to the TSR of the constituents of the Russell 3000 Index (the “Index”). For the PSUs granted from September 30, 2025 to December 28, 2025, the performance period commenced on December 1, 2025 and will end on June 30, 2028. The number of shares vesting could range from —% to 200% times the target number of units granted. The fair values of PSUs based on TSR are estimated using a Monte Carlo simulation. The determination of fair value of the PSUs is based on our stock price and a number of assumptions including the expected volatility, expected dividend yield and the risk-free interest rate. The expected volatility at the date of grant was based on the historical volatilities of our stock and the companies included in the Index over the performance period. The Monte Carlo model is based on random projections of stock-price paths and must be repeated numerous times to achieve a probabilistic assessment. The key assumptions used in valuing these market-based awards are as follows:
| Successor
(in millions of U.S. Dollars) | Period from September 30, 2025 to December 28, 2025
Number of simulations | 500,000
Expected volatility | 52.44 | %
Expected life in years | 2.56 years
Risk-free interest rate | 3.55 | %
Dividend yield | — | %
The grant date fair value of the market-based awards, as determined by the Monte Carlo valuation model, was $30.91 per share for the PSU grants issued during the period from September 30, 2025 to December 28, 2025.

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