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STOCK OPTION AND BENEFIT PLANS | 12 Months Ended
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Jun. 30, 2018
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] |
STOCK OPTION AND BENEFIT PLANS | STOCK OPTION AND BENEFIT PLANS The Company’s incentive plan provides for equity and liability awards to employees and non-employee directors in the form of stock options, stock appreciation rights (SARs), restricted stock, restricted stock units, stock awards, stock units, performance shares, performance units, and other stock-based or cash-based awards. Compensation cost is recognized on a straight-line basis over the requisite employee service period, which is generally the vesting period, and is recorded as employee compensation expense in cost of goods sold, research, development and engineering, and selling, general and administrative expenses. Share-based compensation is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on historical experience and future expectations. In addition to service conditions, these SARs contain a performance condition. The additional performance condition is based upon the achievement of Return on Invested Capital (ROIC) goals relative to a peer group. All awards with performance conditions are measured over the vesting period and are charged to compensation expense over the requisite service period based on the number of shares expected to vest. The SARs cliff vest after a three-year period from date of grant and expire five years from date of grant. On July 28, 2017, the Company granted 272,500 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $7.26 and a grant date fair value of $1.89, as of June 30, 2018, 247,500 remain outstanding. The grant date fair value for the awards granted during fiscal year 2018, were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of July 28, 2017:
| Fiscal Year 2018
| July 28, 2017
Expected dividend yield | —%
Risk – free interest rate | 1.70%
Expected volatility | 29.76%
Expected life | 4.00
On October 28, 2016, the Company granted 10,000 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $8.04 and a grant date fair value of $2.30, as of June 30, 2018, 10,000 remain outstanding. The grant date fair value for the awards granted during fiscal year 2017, were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of October 28, 2016:
| Fiscal Year 2017
| October 28, 2016
Expected dividend yield | —%
Risk – free interest rate | 1.63%
Expected volatility | 33.43%
Expected life | 4.00
On July 26, 2016, the Company granted 242,500 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $8.18 and a grant date fair value of $2.42, as of June 30, 2018, 217,500 remain outstanding. The grant date fair value for the awards granted during fiscal year 2017, were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of July 26, 2016:
| Fiscal Year 2017
| July 26, 2016
Expected dividend yield | —%
Risk – free interest rate | 0.93%
Expected volatility | 36.13%
Expected life | 4.00
On July 29, 2015, the Company granted 248,166 SARs under the 2010 Incentive Plan to certain key employees and outside directors at a strike price of $10.26 and a grant date fair value of $3.65, as of June 30, 2018, 213,333 remain outstanding. The grant date fair value for the awards granted during fiscal year 2016, were estimated using the Black Scholes option valuation method with the following weighted average assumptions as of July 29, 2015:
| Fiscal Year 2016
| July 29, 2015
Expected dividend yield | —%
Risk – free interest rate | 1.39%
Expected volatility | 43.66%
Expected life | 4.00
Subsequent to June 30, 2018, the Company granted 161,250 SARs with a strike price of $8.17 and a grant date fair value of $2.27. Share-based compensation expense is recognized only for those awards that are expected to vest, with forfeitures estimated at the date of grant based on the Company’s historical experience and future expectations. This forfeiture rate will be revised, if necessary, in subsequent periods if actual forfeitures differ from the amount estimated. Share-based compensation expense for fiscal years ended June 30, 2018, July 1, 2017 and July 2, 2016 was $0.4 million, $0.7 million and $0.8 million, respectively. The Black-Scholes option valuation model is used by the Company for estimating the fair value of SARs. Option valuation models require the input of highly subjective assumptions, particularly for the expected term and expected stock price volatility. Changes in these assumptions can materially affect the fair value estimates. There were no SARs exercised during fiscal year 2018. The intrinsic value for SARs exercised in fiscal years 2017 and 2016 was $0.4 million and $0.2 million, respectively. As of June 30, 2018, total unrecognized compensation expense related to nonvested share-based compensation arrangements was approximately $0.5 million. This expense is expected to be recognized over a weighted-average period of 1.63 years. The following table summarizes the Company’s Options and SARs activity for all plans from June 27, 2015 through June 30, 2018:
| SARs Available For Grant |  | SARs Outstanding |  | Aggregate Intrinsic Value (in thousands) |  | Weighted Average Exercise Price |  | Weighted Average Remaining Contractual Life (in years)
Balances, June 27, 2015 | 855,836 |  |  | 813,831 |  |  | $ | 2,312 |  |  | $ | 7.99 |  |  | 2.5
Shares authorized | — |  |  |  |  |  |  | — |  |  |
SARs granted | (248,166 | ) |  | 248,166 |  |  |  |  | 10.26 |  |  |
SARs forfeited | 26,999 |  |  | (26,999 | ) |  |  |  | 9.48 |  |  |
SARs exercised | — |  |  | (63,333 | ) |  | 165 |  |  | 4.56 |  |  |
Balances, July 2, 2016 | 634,669 |  |  | 971,665 |  |  | $ | 339 |  |  | $ | 8.75 |  |  | 2.4
Shares authorized | — |  |  |  |  |  |  | — |  |  |
SARs granted | (252,500 | ) |  | 252,500 |  |  |  |  | 8.17 |  |  |
SARs forfeited | 12,166 |  |  | (12,166 | ) |  |  |  | 8.60 |  |  |
SARs exercised | — |  |  | (127,000 | ) |  | 385 |  |  | 4.77 |  |  |
Balances, July 1, 2017 | 394,335 |  |  | 1,084,999 |  |  | $ | — |  |  | $ | 9.09 |  |  | 2.3
Shares authorized | — |  |  |  |  |  |  | — |  |  |
SARs granted | (272,500 | ) |  | 272,500 |  |  |  |  | 7.26 |  |  |
SARs forfeited | 282,500 |  |  | (282,500 | ) |  |  |  | 7.84 |  |  |
SARs exercised | — |  |  | — |  |  | — |  |  | — |  |  |
Balances, June 30, 2018 | 404,335 |  |  | 1,074,999 |  |  | $ | 79 |  |  | $ | 8.90 |  |  | 2.3
Exercisable at June 30, 2018 |  |  | 386,666 |  |  | $ | — |  |  | $ | 9.62 |  |  | 0.7
Additional information regarding SARs outstanding and exercisable as of June 30, 2018, is as follows:
Range of Exercise Prices |  | Number Outstanding |  | Weighted Avg. Remaining Contractual Life (yrs.) |  | Weighted Avg. Exercise Price |  | Number Exercisable |  | Weighted Avg. Exercise Price
$4.40 – $7.90 |  | 247,500 |  |  | 4.1 |  | $ | 7.26 |  |  | — |  |  | $ | — |
7.91 – 9.91 |  | 423,333 |  |  | 2.3 |  | 8.07 |  |  | 195,833 |  |  | 7.94 |
9.92 – 11.34 |  | 404,166 |  |  | 1.1 |  | 10.77 |  |  | 190,833 |  |  | 11.34 |
$4.40 to $11.34 |  | 1,074,999 |  |  | 2.3 |  | $ | 8.90 |  |  | 386,666 |  |  | $ | 9.62 |
The Company has defined contribution plans available to U.S. employees who have attained age 21. Company contributions to the plans were approximately $0.8 million, $0.6 million, and $0.6 million during fiscal years 2018, 2017 and 2016, respectively.

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- Definition The entire disclosure for compensation-related costs for equity-based compensation, which may include disclosure of policies, compensation plan details, allocation of equity compensation, incentive distributions, equity-based arrangements to obtain goods and services, deferred compensation arrangements, employee stock ownership plan details and employee stock purchase plan details. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 718 -URI http://asc.fasb.org/topic&trid=2228938 Reference 2: http://www.xbrl.org/2003/role/presentationRef -Publisher FASB -Name Accounting Standards Codification -Topic 505 -SubTopic 50 -URI http://asc.fasb.org/subtopic&trid=2208855 + Details
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