Company: MRCY
Filing Date: 2025-08-11
Form Type: 10-K
Source: 0001049521-25-000024
Chunk: 134

Company: MERCURY SYSTEMS INC
Filing Date: 2025-08-11
Form: 10-K
Item: Item 8
Chunk 134
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)44.69 Forfeited(314)41.40 Outstanding at June 27, 20251,742 $40.37 The total fair value of restricted stock awards vested during fiscal years 2025, 2024 and 2023 was $16,643, $15,994 and $25,587, respectively.STOCK-BASED COMPENSATION EXPENSEThe Company recognizes expense for its share-based payment plans in the Consolidated Statements of Operations and Comprehensive (Loss) Income in accordance with ASC 718. The Company had $1,712 and $456 of capitalized stock-based compensation expense on the Consolidated Balance Sheets as of June 27, 2025 and June 28, 2024, respectively. Under the fair value recognition provisions of ASC 718, stock-based compensation cost is measured at the grant date based on the value of the award and is recognized as expense over the service period. The following table presents share-based compensation expenses from continuing operations included in the Company’s Consolidated Statements of Operations and Comprehensive (Loss) Income: Fiscal Years Ended June 27, 2025June 28, 2024June 30, 2023Cost of revenues$1,205 $2,919 $2,926 Selling, general and administrative17,809 16,936 18,335 Research and development6,005 5,814 6,492 Stock-based compensation expense before tax25,019 25,669 27,753 Income taxes(1)(6,755)(6,931)(7,216)Stock-based compensation expense, net of income taxes$18,264 $18,738 $20,537 (1) Federal and state statutory rate of 27%

P.Operating Segment, Geographic Information and Significant Customers

Operating segments are defined as components of an enterprise evaluated regularly by the Company's chief executive officer who acts as its CODM in deciding how to allocate resources and assess performance. The Company evaluated its internal organization under FASB ASC 280, Segment Reporting ("ASC 280") to determine whether there has been a change to its conclusion of a single operating and reportable segment. The Company concluded there has been no changes given the CODM continues to evaluate and manage the Company on the basis of one operating and reportable segment. The Company utilized the management approach for determining its operating segment in accordance with ASC 280. 

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The Company adopted Accounting Standard