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SHARE-BASED COMPENSATION
9 Months Ended
Mar. 29, 2020
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract]  
SHARE-BASED COMPENSATION

11.

SHARE-BASED COMPENSATION

 

The following table presents the components of share-based compensation expense by award type.

 

 

 

Three Months Ended

 

 

Nine Months Ended

 

 

 

March 29,

 

 

March 31,

 

 

March 29,

 

 

March 31,

 

 

 

2020

 

 

2019

 

 

2020

 

 

2019

 

Restricted stock awards

 

$

378

 

 

$

50

 

 

$

898

 

 

$

667

 

Performance stock units

 

 

(219

)

 

 

116

 

 

 

(204

)

 

 

341

 

Stock options

 

 

-

 

 

 

205

 

 

 

9

 

 

 

151

 

Share-based compensation expense

 

$

159

 

 

$

371

 

 

$

703

 

 

$

1,159

 

Adjustment to Share-Based Compensation

Based upon current economic trends, the probability of attaining the performance criteria of the Performance Stock Units (PSUs”) has been lowered. As a result, the amount of share-based compensation expense has been lowered by approximately $0.4 million on a cumulative basis from original estimates during the three months ended March 29, 2020. 

Restricted Stock Awards

During the nine months ended March 29, 2020, the Company granted 138,457 RSAs to the Company’s non-executive directors, officers and certain other key employees. Generally, the shares of restricted stock granted during the nine months ended March 29, 2020, vest pro-rata over three years for officers and certain other key employees and over one year for non-executive directors. The Company determined the fair value of the shares awarded by using the close price of our common stock as of the date of grant. The weighted average grant date fair value of RSAs granted in the nine months ended March 29, 2020, was $17.41 per share.

The following table summarizes the status of nonvested RSAs as of March 29, 2020, and changes during the nine months then ended.

 

 

 

 

 

 

 

Average

 

 

 

Nonvested

 

 

Grant-Date

 

 

 

Restricted

 

 

Fair Value

 

 

 

Shares

 

 

(per share)

 

Nonvested at June 30, 2019

 

 

53,804

 

 

$

22.94

 

Granted

 

 

138,457

 

 

 

17.41

 

Vested

 

 

(24,854

)

 

 

20.84

 

Forfeited

 

 

(34,797

)

 

 

20.24

 

Nonvested at March 29, 2020

 

 

132,610

 

 

 

18.27

 

As of March 29, 2020, there was $1.6 million of total unrecognized compensation expense related to nonvested RSAs.  The Company expects this expense to be recognized over a weighted average period of 1.7 years.

Performance Stock Units

PSUs are a form of long-term incentive compensation awarded to executive officers and certain other key employees designed to directly align the interests of employees to the interests of the Company’s stockholders, and to create long-term stockholder value. The awards will be earned based on the Company’s achievement of certain performance criteria over a three-year performance period. The performance period for the awards commences on July 1 of the fiscal year in which they were granted and continue for a three-year period, ending on June 30 of the applicable year. The probability of achieving the performance criteria is assessed quarterly. Following the determination of the Company’s achievement with respect to the performance criteria, the number of shares awarded is subject to further adjustment based on the application of a total shareholder return (“TSR”) modifier. The grant date fair value is determined based on both the probability assessment of the Company achieving the performance criteria and an estimate of the expected TSR modifier. The TSR modifier estimate is determined using a Monte Carlo Simulation model, which considers the likelihood of numerous possible outcomes of long-term market performance. Compensation expense related to nonvested PSUs is recognized ratably over the performance period.

The following table summarizes the status of nonvested PSUs as of March 29, 2020, and changes during the nine months then ended.

 

 

 

 

 

 

 

Average

 

 

 

Nonvested

 

 

Grant-Date

 

 

 

Performance

 

 

Fair Value

 

 

 

Stock Units

 

 

(per share)

 

Nonvested at June 30, 2019

 

 

50,621

 

 

$

23.34

 

Granted

 

 

72,048

 

 

 

18.14

 

Vested

 

 

-

 

 

 

-

 

Forfeited

 

 

(46,882

)

 

 

20.82

 

Nonvested at March 29, 2020

 

 

75,787

 

 

 

19.95

 

As of March 29, 2020, there was $0.3 million of total unrecognized compensation expense related to nonvested PSUs.  The Company expects this expense to be recognized over a weighted average period of 2.0 years.