North Carolina | 56-1572719 | |||||||||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |||||||||||||
4600 Silicon Drive | ||||||||||||||
Durham | North Carolina | 27703 | ||||||||||||
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading | Name of each exchange on which registered | ||||||
Common Stock, $0.00125 par value | CREE | The Nasdaq Stock Market LLC | ||||||
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ☐ | ||||||||
Emerging growth company | ☐ |
Item 2. | |||||||||||
March 31, 2019 | June 24, 2018 | ||||||
(In thousands, except par value) | |||||||
ASSETS | |||||||
Current assets: | |||||||
Cash and cash equivalents | $456,157 | $118,924 | |||||
Short-term investments | 333,111 | 268,161 | |||||
Total cash, cash equivalents and short-term investments | 789,268 | 387,085 | |||||
Accounts receivable, net | 150,390 | 86,398 | |||||
Income tax receivable | 489 | 2,256 | |||||
Inventories | 172,793 | 151,636 | |||||
Prepaid expenses | 19,201 | 24,521 | |||||
Other current assets | 25,916 | 12,921 | |||||
Current assets held for sale (Note 2) | 340,782 | 225,544 | |||||
Total current assets | 1,498,839 | 890,361 | |||||
Property and equipment, net | 607,659 | 589,073 | |||||
Goodwill | 530,004 | 530,004 | |||||
Intangible assets, net | 203,016 | 215,815 | |||||
Other long-term investments | 44,122 | 57,501 | |||||
Deferred income taxes | 9,958 | 5,766 | |||||
Other assets | 5,559 | 11,604 | |||||
Long-term assets held for sale (Note 2) | — | 337,692 | |||||
Total assets | $2,899,157 | $2,637,816 | |||||
LIABILITIES AND SHAREHOLDERS’ EQUITY | |||||||
Current liabilities: | |||||||
Accounts payable, trade | $111,203 | $105,354 | |||||
Accrued salaries and wages | 63,361 | 41,877 | |||||
Income taxes payable | 1,701 | — | |||||
Accrued contract liabilities (Note 3) | 47,328 | — | |||||
Other current liabilities | 20,472 | 19,280 | |||||
Current liabilities held for sale (Note 2) | 90,355 | 82,053 | |||||
Total current liabilities | 334,420 | 248,564 | |||||
Long-term liabilities: | |||||||
Long-term debt | — | 292,000 | |||||
Convertible notes, net | 463,491 | — | |||||
Deferred income taxes | 5,878 | 3,148 | |||||
Other long-term liabilities | 29,453 | 518 | |||||
Long-term liabilities held for sale (Note 2) | — | 21,505 | |||||
Total long-term liabilities | 498,822 | 317,171 | |||||
Commitments and contingencies (Note 13) | |||||||
Shareholders’ equity: | |||||||
Preferred stock, par value $0.01; 3,000 shares authorized at March 31, 2019 and June 24, 2018; none issued and outstanding | — | — | |||||
Common stock, par value $0.00125; 200,000 shares authorized at March 31, 2019 and June 24, 2018; 104,515 issued and outstanding at March 31, 2019 and 101,488 shares issued and outstanding at June 24, 2018 | 131 | 127 | |||||
Additional paid-in-capital | 2,772,042 | 2,549,123 | |||||
Accumulated other comprehensive income, net of taxes | 2,554 | 596 | |||||
Accumulated deficit | (713,780 | ) | (482,710 | ) | |||
Total shareholders’ equity | 2,060,947 | 2,067,136 | |||||
Non-controlling interest | 4,968 | 4,945 | |||||
Total liabilities and equity | $2,899,157 | $2,637,816 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, 2019 | March 25, 2018 | March 31, 2019 | March 25, 2018 | ||||||||||||
(In thousands, except per share amounts) | |||||||||||||||
Revenue, net | $274,050 | $225,200 | $828,729 | $659,128 | |||||||||||
Cost of revenue, net | 173,596 | 150,337 | 526,444 | 445,198 | |||||||||||
Gross profit | 100,454 | 74,863 | 302,285 | 213,930 | |||||||||||
Operating expenses: | |||||||||||||||
Research and development | 40,722 | 31,144 | 117,235 | 95,184 | |||||||||||
Sales, general and administrative | 61,626 | 46,631 | 157,937 | 128,743 | |||||||||||
Amortization or impairment of acquisition-related intangibles | 3,906 | 1,516 | 11,717 | 3,224 | |||||||||||
Loss on disposal and impairment of other assets | 5,286 | 1,112 | 5,708 | 6,940 | |||||||||||
Total operating expenses | 111,540 | 80,403 | 292,597 | 234,091 | |||||||||||
Operating (loss) income | (11,086 | ) | (5,540 | ) | 9,688 | (20,161 | ) | ||||||||
Non-operating (expense) income, net | (8,440 | ) | (10,000 | ) | (23,695 | ) | 14,942 | ||||||||
Loss before income taxes | (19,526 | ) | (15,540 | ) | (14,007 | ) | (5,219 | ) | |||||||
Income tax expense (benefit) | 2,785 | (5,377 | ) | 9,252 | (17,633 | ) | |||||||||
(Loss) Income from continuing operations | (22,311 | ) | (10,163 | ) | (23,259 | ) | 12,414 | ||||||||
Loss from discontinued operations, net of tax | (205,420 | ) | (230,370 | ) | (218,085 | ) | (259,067 | ) | |||||||
Net loss | (227,731 | ) | (240,533 | ) | (241,344 | ) | (246,653 | ) | |||||||
Net income attributable to non-controlling interest | 121 | 44 | 23 | 59 | |||||||||||
Net loss attributable to controlling interest | ($227,852 | ) | ($240,577 | ) | ($241,367 | ) | ($246,712 | ) | |||||||
(Loss) Earnings per share - basic | |||||||||||||||
Continuing operations | ($0.22 | ) | ($0.10 | ) | ($0.23 | ) | $0.13 | ||||||||
Discontinued operations | (1.98 | ) | (2.30 | ) | (2.12 | ) | (2.62 | ) | |||||||
Loss per share - basic | ($2.20 | ) | ($2.40 | ) | ($2.35 | ) | ($2.49 | ) | |||||||
(Loss) Earnings per share - diluted | |||||||||||||||
Continuing operations | ($0.22 | ) | ($0.10 | ) | ($0.23 | ) | $0.12 | ||||||||
Discontinued operations | (1.98 | ) | (2.30 | ) | (2.12 | ) | (2.57 | ) | |||||||
Loss per share - diluted | ($2.20 | ) | ($2.40 | ) | ($2.35 | ) | ($2.45 | ) | |||||||
Weighted average shares used in per share calculation: | |||||||||||||||
Basic | 103,659 | 100,140 | 102,807 | 99,046 | |||||||||||
Diluted | 103,659 | 100,140 | 102,807 | 100,672 |
(in millions of U.S. Dollars, except share data) | March 29, 2020 | June 30, 2019 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $323.0 | $500.5 | |||||||||
Short-term investments | 529.9 | 550.9 | |||||||||
Total cash, cash equivalents and short-term investments | 852.9 | 1,051.4 | |||||||||
Accounts receivable, net | 161.0 | 128.9 | |||||||||
Inventories | 170.1 | 187.4 | |||||||||
Income taxes receivable | 6.1 | 0.2 | |||||||||
Prepaid expenses | 27.7 | 23.3 | |||||||||
Other current assets | 12.2 | 19.7 | |||||||||
Current assets held for sale | 0.2 | 1.9 | |||||||||
Total current assets | 1,230.2 | 1,412.8 | |||||||||
Property and equipment, net | 737.6 | 625.2 | |||||||||
Goodwill | 530.0 | 530.0 | |||||||||
Intangible assets, net | 183.6 | 197.9 | |||||||||
Other long-term investments | 31.5 | 39.5 | |||||||||
Deferred tax assets | 6.7 | 5.6 | |||||||||
Other assets | 18.3 | 5.9 | |||||||||
Total assets | $2,737.9 | $2,816.9 | |||||||||
Liabilities and Shareholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $184.8 | $200.9 | |||||||||
Accrued contract liabilities | 45.1 | 45.8 | |||||||||
Income taxes payable | 1.2 | 3.0 | |||||||||
Finance lease liabilities | 0.6 | — | |||||||||
Other current liabilities | 19.7 | 18.5 | |||||||||
Total current liabilities | 251.4 | 268.2 | |||||||||
Long-term liabilities: | |||||||||||
Convertible notes, net | 486.3 | 469.1 | |||||||||
Deferred tax liabilities | 2.3 | 2.0 | |||||||||
Finance lease liabilities - long-term | 2.2 | — | |||||||||
Other long-term liabilities | 50.7 | 36.4 | |||||||||
Total long-term liabilities | 541.5 | 507.5 | |||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, par value $0.01; 3,000 shares authorized at March 29, 2020 and June 30, 2019; NaN issued and outstanding | — | — | |||||||||
Common stock, par value $0.00125; 200,000 shares authorized at March 29, 2020 and June 30, 2019; 108,153 and 106,570 shares issued and outstanding at March 29, 2020 and June 30, 2019, respectively | 0.1 | 0.1 | |||||||||
Additional paid-in-capital | 2,931.3 | 2,874.1 | |||||||||
Accumulated other comprehensive income | 7.8 | 9.5 | |||||||||
Accumulated deficit | (999.7) | (847.5) | |||||||||
Total shareholders’ equity | 1,939.5 | 2,036.2 | |||||||||
Non-controlling interest | 5.5 | 5.0 | |||||||||
Total equity | 1,945.0 | 2,041.2 | |||||||||
Total liabilities and shareholders’ equity | $2,737.9 | $2,816.9 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, 2019 | March 25, 2018 | March 31, 2019 | March 25, 2018 | ||||||||||||
(In thousands) | |||||||||||||||
Net loss | ($227,731 | ) | ($240,533 | ) | ($241,344 | ) | ($246,653 | ) | |||||||
Other comprehensive income (loss) | |||||||||||||||
Currency translation (loss) gain | (250 | ) | 788 | (784 | ) | 2,006 | |||||||||
Net unrealized gain (loss) on available-for-sale securities, net of tax benefit of $0 and $0, respectively | 1,948 | (2,269 | ) | 2,742 | (5,969 | ) | |||||||||
Other comprehensive income (loss) | 1,698 | (1,481 | ) | 1,958 | (3,963 | ) | |||||||||
Comprehensive loss | (226,033 | ) | (242,014 | ) | (239,386 | ) | (250,616 | ) | |||||||
Net income attributable to non-controlling interest | 121 | 44 | 23 | 59 | |||||||||||
Comprehensive loss attributable to controlling interest | ($226,154 | ) | ($242,058 | ) | ($239,409 | ) | ($250,675 | ) |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars, except share data) | |||||||||||||||||||||||||||||||||||
Revenue, net | $215.5 | $274.0 | $698.2 | $828.7 | |||||||||||||||||||||||||||||||
Cost of revenue, net | 154.1 | 173.5 | 500.7 | 526.4 | |||||||||||||||||||||||||||||||
Gross profit | 61.4 | 100.5 | 197.5 | 302.3 | |||||||||||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||||||||||||||
Research and development | 46.7 | 40.7 | 137.7 | 117.2 | |||||||||||||||||||||||||||||||
Sales, general and administrative | 49.7 | 50.6 | 160.1 | 143.7 | |||||||||||||||||||||||||||||||
Amortization or impairment of acquisition-related intangibles | 3.7 | 3.9 | 10.9 | 11.7 | |||||||||||||||||||||||||||||||
Loss on disposal or impairment of other assets | 0.3 | 5.3 | 2.1 | 5.7 | |||||||||||||||||||||||||||||||
Other operating expense | 10.8 | 11.1 | 31.8 | 14.3 | |||||||||||||||||||||||||||||||
Operating (loss) income | (49.8) | (11.1) | (145.1) | 9.7 | |||||||||||||||||||||||||||||||
Non-operating expense, net | 14.5 | 8.4 | 7.8 | 23.7 | |||||||||||||||||||||||||||||||
Loss before income taxes | (64.3) | (19.5) | (152.9) | (14.0) | |||||||||||||||||||||||||||||||
Income tax (benefit) expense | (2.9) | 2.8 | (1.2) | 9.3 | |||||||||||||||||||||||||||||||
Net loss from continuing operations | (61.4) | (22.3) | (151.7) | (23.3) | |||||||||||||||||||||||||||||||
Net loss from discontinued operations | — | (205.4) | — | (218.0) | |||||||||||||||||||||||||||||||
Net loss | (61.4) | (227.7) | (151.7) | (241.3) | |||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | 0.2 | 0.1 | 0.5 | 0.1 | |||||||||||||||||||||||||||||||
Net loss attributable to controlling interest | ($61.6) | ($227.8) | ($152.2) | ($241.4) | |||||||||||||||||||||||||||||||
Basic and diluted loss per share | |||||||||||||||||||||||||||||||||||
Continuing operations attributable to controlling interest | ($0.57) | ($0.22) | ($1.41) | ($0.23) | |||||||||||||||||||||||||||||||
Net loss attributable to controlling interest | ($0.57) | ($2.20) | ($1.41) | ($2.35) | |||||||||||||||||||||||||||||||
Weighted average shares - basic and diluted (in thousands) | 108,115 | 103,659 | 107,718 | 102,807 | |||||||||||||||||||||||||||||||
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Shareholders’ Equity | Non-controlling Interest | Total Equity | ||||||||||||||||||||||||
Number of Shares | Par Value | |||||||||||||||||||||||||||||
(In thousands) | ||||||||||||||||||||||||||||||
Balance at June 24, 2018 | 101,488 | $127 | $2,549,123 | ($482,710 | ) | $596 | $2,067,136 | $4,945 | $2,072,081 | |||||||||||||||||||||
Net loss | — | — | — | (11,067 | ) | — | (11,067 | ) | (67 | ) | (11,134 | ) | ||||||||||||||||||
Currency translation gain, net of tax benefit of $0 | — | — | — | — | 343 | 343 | — | 343 | ||||||||||||||||||||||
Unrealized loss on available-for-sale securities, net of tax expense of $0 | — | — | — | — | (275 | ) | (275 | ) | — | (275 | ) | |||||||||||||||||||
Comprehensive loss | (10,999 | ) | (67 | ) | (11,066 | ) | ||||||||||||||||||||||||
Income tax expense from stock option exercises | — | — | (10,828 | ) | — | — | (10,828 | ) | — | (10,828 | ) | |||||||||||||||||||
Stock-based compensation | — | — | 12,117 | — | — | 12,117 | — | 12,117 | ||||||||||||||||||||||
Exercise of stock options and issuance of shares | 1,032 | 1 | 15,503 | — | — | 15,504 | — | 15,504 | ||||||||||||||||||||||
Adoption of ASC 606 | — | — | — | 10,299 | — | 10,299 | — | 10,299 | ||||||||||||||||||||||
Convertible note issuance | — | — | 110,591 | — | — | 110,591 | — | 110,591 | ||||||||||||||||||||||
Balance at September 23, 2018 | 102,520 | $128 | $2,676,506 | ($483,478 | ) | $664 | $2,193,820 | $4,878 | $2,198,698 | |||||||||||||||||||||
Net loss | — | — | — | (2,450 | ) | — | (2,450 | ) | (31 | ) | (2,481 | ) | ||||||||||||||||||
Currency translation loss, net of tax benefit of $0 | — | — | — | — | (877 | ) | (877 | ) | — | (877 | ) | |||||||||||||||||||
Unrealized gain on available-for-sale securities, net of tax expense of $0 | — | — | — | — | 1,069 | 1,069 | — | 1,069 | ||||||||||||||||||||||
Comprehensive loss | — | — | — | — | — | (2,258 | ) | (31 | ) | (2,289 | ) | |||||||||||||||||||
Income tax benefit from stock option exercises | — | — | 9,278 | — | — | 9,278 | — | 9,278 | ||||||||||||||||||||||
Stock-based compensation | — | — | 13,635 | — | — | 13,635 | — | 13,635 | ||||||||||||||||||||||
Exercise of stock options and issuance of shares | 553 | 1 | 4,182 | — | — | 4,183 | — | 4,183 | ||||||||||||||||||||||
Balance at December 30, 2018 | 103,073 | $129 | $2,703,601 | ($485,928 | ) | $856 | $2,218,658 | $4,847 | $2,223,505 | |||||||||||||||||||||
Net (loss) income | — | — | — | (227,852 | ) | — | (227,852 | ) | 121 | (227,731 | ) | |||||||||||||||||||
Currency translation loss, net of tax benefit of $0 | — | — | — | — | (250 | ) | (250 | ) | — | (250 | ) | |||||||||||||||||||
Unrealized gain on available-for-sale securities, net of tax expense of $0 | — | — | — | — | 1,948 | 1,948 | — | 1,948 | ||||||||||||||||||||||
Comprehensive (loss) income | — | — | — | — | — | (226,154 | ) | 121 | (226,033 | ) | ||||||||||||||||||||
Income tax expense from stock option exercises | — | — | (469 | ) | — | — | (469 | ) | — | (469 | ) | |||||||||||||||||||
Stock-based compensation | — | — | 15,647 | — | — | 15,647 | — | 15,647 | ||||||||||||||||||||||
Exercise of stock options and issuance of shares | 1,442 | 2 | 53,263 | — | — | 53,265 | — | 53,265 | ||||||||||||||||||||||
Balance at March 31, 2019 | 104,515 | $131 | $2,772,042 | ($713,780 | ) | $2,554 | $2,060,947 | $4,968 | $2,065,915 |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | |||||||||||||||||||||||||||||||
Net loss | ($61.4) | ($227.7) | ($151.7) | ($241.3) | |||||||||||||||||||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||||||||||||||
Currency translation loss | — | (0.3) | — | (0.8) | |||||||||||||||||||||||||||||||
Net unrealized (loss) gain on available-for-sale securities | (1.9) | 2.0 | (1.7) | 2.8 | |||||||||||||||||||||||||||||||
Comprehensive loss | (63.3) | (226.0) | (153.4) | (239.3) | |||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | 0.2 | 0.1 | 0.5 | 0.1 | |||||||||||||||||||||||||||||||
Comprehensive loss attributable to controlling interest | ($63.5) | ($226.1) | ($153.9) | ($239.4) |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Shareholders’ Equity | Non-controlling Interest | Total Equity | |||||||||||||||||||||||||
Number of Shares | Par Value | ||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||
Balance at June 25, 2017 | 97,674 | $121 | $2,419,517 | ($202,742 | ) | $5,909 | $2,222,805 | — | $2,222,805 | ||||||||||||||||||||||
Net loss | — | — | — | (19,857 | ) | — | (19,857 | ) | (16 | ) | (19,873 | ) | |||||||||||||||||||
Currency translation gain, net of tax benefit of $0 | — | — | — | — | 1,642 | 1,642 | — | 1,642 | |||||||||||||||||||||||
Unrealized loss on available-for-sale securities, net of tax expense of $0 | — | — | — | — | (39 | ) | (39 | ) | — | (39 | ) | ||||||||||||||||||||
Comprehensive loss | (18,254 | ) | (16 | ) | (18,270 | ) | |||||||||||||||||||||||||
Income tax expense from stock option exercises | — | — | (3,798 | ) | — | — | (3,798 | ) | — | (3,798 | ) | ||||||||||||||||||||
Stock-based compensation | — | — | 10,226 | — | — | 10,226 | — | 10,226 | |||||||||||||||||||||||
Exercise of stock options and issuance of shares | 371 | — | 118 | — | — | 118 | — | 118 | |||||||||||||||||||||||
Contributions from non-controlling interests | — | — | — | — | — | — | — | 4,900 | 4,900 | ||||||||||||||||||||||
Balance at September 24, 2017 | 98,045 | $121 | $2,426,063 | ($222,599 | ) | $7,512 | $2,211,097 | $4,884 | $2,215,981 | ||||||||||||||||||||||
Net income | — | — | — | 13,721 | 13,721 | 31 | 13,752 | ||||||||||||||||||||||||
Currency translation loss, net of tax benefit of $0 | — | — | — | — | (424 | ) | (424 | ) | — | (424 | ) | ||||||||||||||||||||
Unrealized loss on available-for-sale securities, net of tax expense of $0 | — | — | — | — | (3,660 | ) | (3,660 | ) | — | (3,660 | ) | ||||||||||||||||||||
Comprehensive income | — | — | — | — | — | 9,637 | 31 | 9,668 | |||||||||||||||||||||||
Income tax expense from stock option exercises | — | — | (849 | ) | — | — | (849 | ) | — | (849 | ) | ||||||||||||||||||||
Stock-based compensation | — | — | 11,780 | — | — | 11,780 | — | 11,780 | |||||||||||||||||||||||
Exercise of stock options and issuance of shares | 1,843 | 2 | 46,430 | — | — | 46,432 | — | 46,432 | |||||||||||||||||||||||
Balance at December 24, 2017 | 99,888 | $123 | $2,483,424 | ($208,878 | ) | $3,428 | $2,278,097 | $4,915 | $2,283,012 | ||||||||||||||||||||||
Net (loss) income | — | — | — | (240,577 | ) | — | (240,577 | ) | 44 | (240,533 | ) | ||||||||||||||||||||
Currency translation gain, net of tax benefit of $0 | — | — | — | — | 788 | 788 | — | 788 | |||||||||||||||||||||||
Unrealized loss on available-for-sale securities, net of tax expense of $0 | — | — | — | — | (2,269 | ) | (2,269 | ) | — | (2,269 | ) | ||||||||||||||||||||
Comprehensive (loss) income | — | — | — | — | — | (242,058 | ) | 44 | (242,014 | ) | |||||||||||||||||||||
Income tax (expense) benefit from stock option exercises | — | — | (1,291 | ) | — | — | (1,291 | ) | — | (1,291 | ) | ||||||||||||||||||||
Stock-based compensation | — | — | 11,471 | — | — | 11,471 | — | 11,471 | |||||||||||||||||||||||
Exercise of stock options and issuance of shares | 599 | 1 | 15,692 | — | — | 15,693 | — | 15,693 | |||||||||||||||||||||||
Balance at March 25, 2018 | 100,487 | $124 | $2,509,296 | ($449,455 | ) | $1,947 | $2,061,912 | $4,959 | $2,066,871 |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Equity - Controlled Interest | Non-controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S Dollars, except share data) | Number of Shares | Par Value | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 106,570 | $0.1 | $2,874.1 | ($847.5) | $9.5 | $2,036.2 | $5.0 | $2,041.2 | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (37.8) | — | (37.8) | — | (37.8) | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on available-for-sale securities | — | — | — | — | 0.5 | 0.5 | — | 0.5 | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss | (37.3) | — | (37.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding on vested equity awards | — | — | (14.3) | — | — | (14.3) | — | (14.3) | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 17.4 | — | — | 17.4 | — | 17.4 | |||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of shares | 1,127 | — | 18.6 | — | — | 18.6 | — | 18.6 | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 29, 2019 | 107,697 | $0.1 | $2,895.8 | ($885.3) | $10.0 | $2,020.6 | $5.0 | $2,025.6 | |||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | — | — | — | (52.8) | — | (52.8) | 0.3 | (52.5) | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on available-for-sale securities | — | — | — | — | (0.3) | (0.3) | — | (0.3) | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive (loss) income | (53.1) | 0.3 | (52.8) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding on vested equity awards | — | — | (0.4) | — | — | (0.4) | — | (0.4) | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 13.4 | — | — | 13.4 | — | 13.4 | |||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of shares | 334 | — | 10.7 | — | — | 10.7 | — | 10.7 | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 29, 2019 | 108,031 | $0.1 | $2,919.5 | ($938.1) | $9.7 | $1,991.2 | $5.3 | $1,996.5 | |||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | — | — | — | (61.6) | — | (61.6) | 0.2 | (61.4) | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on available-for-sale securities | — | — | — | — | (1.9) | (1.9) | — | (1.9) | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive (loss) income | (63.5) | 0.2 | (63.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding on vested equity awards | — | — | (1.5) | — | — | (1.5) | — | (1.5) | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 11.6 | — | — | 11.6 | — | 11.6 | |||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of shares | 122 | — | 1.7 | — | — | 1.7 | — | 1.7 | |||||||||||||||||||||||||||||||||||||||||||||
Balance at March 29, 2020 | 108,153 | $0.1 | $2,931.3 | ($999.7) | $7.8 | $1,939.5 | $5.5 | $1,945.0 |
Nine Months Ended | |||||||
March 31, 2019 | March 25, 2018 | ||||||
(In thousands) | |||||||
Cash flows from operating activities: | |||||||
Net loss | ($241,344 | ) | ($246,653 | ) | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 116,256 | 113,244 | |||||
Amortization of debt issuance costs and discount | 12,687 | — | |||||
Stock-based compensation | 40,497 | 33,319 | |||||
Impairment charges | 197,580 | 247,455 | |||||
Loss on disposal or impairment of long-lived assets | 2,842 | 8,803 | |||||
Amortization of premium/discount on investments | 2,113 | 3,943 | |||||
Loss (gain) on equity investment | 12,443 | (7,510 | ) | ||||
Foreign exchange loss (gain) on equity investment | 936 | (2,543 | ) | ||||
Deferred income taxes | (1,655 | ) | (49,875 | ) | |||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (56,339 | ) | 5,728 | ||||
Inventories | (19,237 | ) | (4,640 | ) | |||
Prepaid expenses and other assets | 3,517 | 2,041 | |||||
Accounts payable, trade | 6,590 | 15,328 | |||||
Accrued salaries and wages and other liabilities | 110,083 | 6,783 | |||||
Net cash provided by operating activities | 186,969 | 125,423 | |||||
Cash flows from investing activities: | |||||||
Purchases of property and equipment | (106,522 | ) | (128,433 | ) | |||
Purchases of patent and licensing rights | (9,148 | ) | (7,913 | ) | |||
Proceeds from sale of property and equipment | 286 | 538 | |||||
Purchases of short-term investments | (251,676 | ) | (174,623 | ) | |||
Proceeds from maturities of short-term investments | 146,368 | 166,771 | |||||
Proceeds from sale of short-term investments | 28,185 | 176,981 | |||||
Purchase of acquired business, net of cash acquired | — | (427,120 | ) | ||||
Net cash used in investing activities | (192,507 | ) | (393,799 | ) | |||
Cash flows from financing activities: | |||||||
Proceeds from issuing shares to non-controlling interest | — | 4,900 | |||||
Payment of acquisition-related contingent consideration | — | (1,850 | ) | ||||
Proceeds from long-term debt borrowings | 95,000 | 555,000 | |||||
Payments on long-term debt borrowings | (387,000 | ) | (384,000 | ) | |||
Proceeds from convertible notes | 575,000 | — | |||||
Payments of debt issuance costs | (12,938 | ) | — | ||||
Net proceeds from issuance of common stock | 72,948 | 62,240 | |||||
Net cash provided by financing activities | 343,010 | 236,290 | |||||
Effects of foreign exchange changes on cash and cash equivalents | (239 | ) | 715 | ||||
Net increase (decrease) in cash and cash equivalents | 337,233 | (31,371 | ) | ||||
Cash and cash equivalents: | |||||||
Beginning of period | 118,924 | 132,597 | |||||
End of period | $456,157 | $101,226 | |||||
Supplemental disclosure of cash flow information: | |||||||
Significant non-cash transactions: | |||||||
Accrued property and equipment | $15,247 | $19,275 |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Equity - Controlled Interest | Non-controlling Interest | Total Equity | |||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars, except share data) | Number of Shares | Par Value | |||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 24, 2018 | 101,488 | $0.1 | $2,549.1 | ($482.7) | $0.6 | $2,067.1 | $5.0 | $2,072.1 | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (11.1) | — | (11.1) | — | (11.1) | |||||||||||||||||||||||||||||||||||||||||||||
Currency translation gain | — | — | — | — | 0.3 | 0.3 | — | 0.3 | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized loss on available-for-sale securities | — | — | — | — | (0.3) | (0.3) | — | (0.3) | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss | (11.1) | — | (11.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding on vested equity awards | — | — | (10.8) | — | — | (10.8) | — | (10.8) | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 12.1 | — | — | 12.1 | — | 12.1 | |||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of shares | 1,032 | — | 15.5 | — | — | 15.5 | — | 15.5 | |||||||||||||||||||||||||||||||||||||||||||||
Convertible note issuance | — | — | 110.6 | — | — | 110.6 | — | 110.6 | |||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASC 606 | — | — | — | 10.3 | — | 10.3 | — | 10.3 | |||||||||||||||||||||||||||||||||||||||||||||
Balance at September 23, 2018 | 102,520 | $0.1 | $2,676.5 | ($483.5) | $0.6 | $2,193.7 | $5.0 | $2,198.7 | |||||||||||||||||||||||||||||||||||||||||||||
Net loss | — | — | — | (2.5) | — | (2.5) | — | (2.5) | |||||||||||||||||||||||||||||||||||||||||||||
Currency translation loss | — | — | — | — | (0.9) | (0.9) | — | (0.9) | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on available-for-sale securities | — | — | — | — | 1.1 | 1.1 | — | 1.1 | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss | (2.3) | — | (2.3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding on vested equity awards | — | — | (1.1) | — | — | (1.1) | — | (1.1) | |||||||||||||||||||||||||||||||||||||||||||||
Repurchased shares | — | — | — | — | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 13.6 | — | — | 13.6 | — | 13.6 | |||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of shares | 553 | — | 14.6 | — | — | 14.6 | — | 14.6 | |||||||||||||||||||||||||||||||||||||||||||||
Balance at December 30, 2018 | 103,073 | $0.1 | $2,703.6 | ($486.0) | $0.8 | $2,218.5 | $5.0 | $2,223.5 | |||||||||||||||||||||||||||||||||||||||||||||
Net (loss) income | — | — | — | (227.8) | — | (227.8) | 0.1 | (227.7) | |||||||||||||||||||||||||||||||||||||||||||||
Currency translation loss | — | — | — | — | (0.3) | (0.3) | — | (0.3) | |||||||||||||||||||||||||||||||||||||||||||||
Unrealized gain on available-for-sale securities | — | — | — | — | 2.0 | 2.0 | — | 2.0 | |||||||||||||||||||||||||||||||||||||||||||||
Comprehensive loss | (226.1) | 0.1 | (226.0) | ||||||||||||||||||||||||||||||||||||||||||||||||||
Tax withholding on vested equity awards | — | — | (0.5) | — | — | (0.5) | — | (0.5) | |||||||||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | 15.6 | — | — | 15.6 | — | 15.6 | |||||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of shares | 1,442 | — | 53.3 | — | — | 53.3 | — | 53.3 | |||||||||||||||||||||||||||||||||||||||||||||
Balance at March 31, 2019 | 104,515 | $0.1 | $2,772.0 | ($713.8) | $2.5 | $2,060.8 | $5.1 | $2,065.9 |
Nine months ended | |||||||||||||||||
(in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | |||||||||||||||
Operating activities: | |||||||||||||||||
Net loss from continuing operations | ($151.7) | ($23.3) | |||||||||||||||
Adjustments to reconcile net loss to net cash (used in) provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 90.9 | 93.1 | |||||||||||||||
Amortization of debt issuance costs and discount | 17.2 | 12.7 | |||||||||||||||
Stock-based compensation | 41.3 | 34.5 | |||||||||||||||
Loss on disposal or impairment of long-lived assets | 2.1 | 5.7 | |||||||||||||||
Amortization of premium/discount on investments | 0.5 | 2.0 | |||||||||||||||
Realized (gain) loss on sale of investments | (1.3) | 0.1 | |||||||||||||||
Loss on equity investment | 9.2 | 12.4 | |||||||||||||||
Foreign exchange (gain) loss on equity investment | (1.2) | 0.9 | |||||||||||||||
Deferred income taxes | (0.8) | (1.7) | |||||||||||||||
Changes in operating assets and liabilities: | |||||||||||||||||
Accounts receivable, net | (31.9) | (63.6) | |||||||||||||||
Inventories | 18.4 | (20.2) | |||||||||||||||
Prepaid expenses and other assets | 1.9 | (4.6) | |||||||||||||||
Accounts payable, trade | (19.2) | 18.4 | |||||||||||||||
Accrued salaries and wages and other liabilities | (20.6) | 81.4 | |||||||||||||||
Accrued contract liabilities | 5.7 | 31.9 | |||||||||||||||
Net cash (used in) provided by operating activities of continuing operations | (39.5) | 179.7 | |||||||||||||||
Net cash provided by operating activities of discontinued operations | — | 9.3 | |||||||||||||||
Cash (used in) provided by operating activities | (39.5) | 189.0 | |||||||||||||||
Investing activities: | |||||||||||||||||
Purchases of property and equipment | (168.9) | (93.3) | |||||||||||||||
Purchases of patent and licensing rights | (5.2) | (7.0) | |||||||||||||||
Proceeds from sale of property and equipment | 1.8 | 0.3 | |||||||||||||||
Purchases of short-term investments | (425.2) | (251.7) | |||||||||||||||
Proceeds from maturities of short-term investments | 342.5 | 146.4 | |||||||||||||||
Proceeds from sale of short-term investments | 102.8 | 28.2 | |||||||||||||||
Net cash used in investing activities of continuing operations | (152.2) | (177.1) | |||||||||||||||
Net cash used in investing activities of discontinued operations | — | (15.4) | |||||||||||||||
Cash used in investing activities | (152.2) | (192.5) | |||||||||||||||
Financing activities: | |||||||||||||||||
Proceeds from long-term debt borrowings | — | 95.0 | |||||||||||||||
Payments on long-term debt borrowings, including finance lease obligations | (0.4) | (387.0) | |||||||||||||||
Proceeds from convertible notes | — | 575.0 | |||||||||||||||
Payments of debt issuance costs | — | (12.9) | |||||||||||||||
Proceeds from issuance of common stock | 31.0 | 83.3 | |||||||||||||||
Tax withholding on vested equity awards | (16.2) | (12.4) | |||||||||||||||
Net cash provided by financing activities of continuing operations | 14.4 | 341.0 | |||||||||||||||
Net cash provided by financing activities of discontinued operations | — | — | |||||||||||||||
Cash provided by financing activities | 14.4 | 341.0 | |||||||||||||||
Effects of foreign exchange changes on cash and cash equivalents | (0.2) | (0.2) | |||||||||||||||
Net change in cash and cash equivalents | (177.5) | 337.3 | |||||||||||||||
Cash and cash equivalents, beginning of period | 500.5 | 118.9 | |||||||||||||||
Cash and cash equivalents, end of period | $323.0 | $456.2 | |||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, 2019 | March 25, 2018 | March 31, 2019 | March 25, 2018 | ||||||||||||
Revenue, net | $109,386 | $130,759 | $376,008 | $425,100 | |||||||||||
Cost of revenue, net | 82,490 | 106,564 | 287,553 | 347,037 | |||||||||||
Gross profit | 26,896 | 24,195 | 88,455 | 78,063 | |||||||||||
Total operating expenses | 231,937 | 286,717 | 306,350 | 366,375 | |||||||||||
Non-operating income | 197 | 348 | 497 | 1,068 | |||||||||||
Loss from discontinued operations before income taxes | (204,844 | ) | (262,174 | ) | (217,398 | ) | (287,244 | ) | |||||||
Income tax expense (benefit) | 576 | (31,804 | ) | 687 | (28,177 | ) | |||||||||
Loss from discontinued operations, net of income taxes | ($205,420 | ) | ($230,370 | ) | ($218,085 | ) | ($259,067 | ) |
Three months ended | Nine months ended | ||||||||||
(in millions of U.S. Dollars) | March 31, 2019 | March 31, 2019 | |||||||||
Revenue, net | $109.4 | $376.0 | |||||||||
Cost of revenue, net | 82.5 | 287.5 | |||||||||
Gross profit | 26.9 | 88.5 | |||||||||
Operating expenses: | |||||||||||
Research and development | 8.8 | 27.4 | |||||||||
Sales, general and administrative | 21.2 | 68.2 | |||||||||
Amortization or impairment of acquisition-related intangibles | 2.0 | 9.1 | |||||||||
Goodwill impairment charges | 197.6 | 197.6 | |||||||||
Loss on disposal or impairment of long-lived assets | 1.8 | 2.1 | |||||||||
Other operating expense | 0.5 | 1.9 | |||||||||
Operating loss | (205.0) | (217.8) | |||||||||
Non-operating income | (0.2) | (0.5) | |||||||||
Loss before income taxes | (204.8) | (217.3) | |||||||||
Income tax expense | 0.6 | 0.7 | |||||||||
Net loss | ($205.4) | ($218.0) |
March 31, 2019 | June 24, 2018 | ||||||
Assets Held for Sale | |||||||
Accounts receivable, net | $59,929 | $67,477 | |||||
Prepaid and other current assets | 7,264 | 11,059 | |||||
Income tax receivable | 494 | 449 | |||||
Inventories | 143,104 | 144,379 | |||||
Property and equipment, net | 71,226 | 72,246 | |||||
Deferred tax assets | 538 | 685 | |||||
Intangible assets, net | 133,358 | 174,239 | |||||
Goodwill | — | 90,326 | |||||
Other long term assets | 203 | 196 | |||||
Valuation allowance on disposal group | (75,334 | ) | — | ||||
Total Assets Held for Sale* | $340,782 | $561,056 | |||||
Liabilities Held for Sale | |||||||
Accounts payable | $34,201 | $45,953 | |||||
Accrued salaries and wages | 18,661 | 11,581 | |||||
Other accrued liabilities | 21,122 | 24,248 | |||||
Income tax payable | — | 271 | |||||
Other long term liabilities | 16,371 | 21,505 | |||||
Total Liabilities Held for Sale* | $90,355 | $103,558 |
Nine Months Ended | |||||||
March 31, 2019 | March 25, 2018 | ||||||
Net cash provided by discontinued operating activities | $9,294 | $49,047 | |||||
Net cash used in discontinued investing activities | (15,356 | ) | (12,577 | ) |
Balance as of June 24, 2018 | Adjustments | Opening Balance as of June 25, 2018 | |||||||||
Assets: | |||||||||||
Accounts Receivable | $86,398 | $43,355 | $129,753 | ||||||||
Liabilities: | |||||||||||
Accrued Contract Liabilities | — | (42,675 | ) | (42,675 | ) | ||||||
Stockholders' Equity: | |||||||||||
Accumulated Deficit | (482,710 | ) | 10,299 | (472,411 | ) |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, 2019 | March 25, 2018 | March 31, 2019 | March 25, 2018 | ||||||||||||
United States | $67,643 | $53,796 | $194,463 | $161,446 | |||||||||||
China | 83,448 | 86,700 | 289,957 | 279,017 | |||||||||||
Europe | 63,238 | 46,788 | 197,168 | 112,656 | |||||||||||
Other | 59,721 | 37,916 | 147,141 | 106,009 | |||||||||||
Total Revenue | $274,050 | $225,200 | $828,729 | $659,128 |
Right-of-use asset (1) | $ | |||||||
Current lease liability (2) | 4.4 | |||||||
Non-current lease liability (3) | 8.1 | |||||||
12.5 | ||||||||
Finance lease assets (4) | ||||||||
Total finance lease liabilities | 2.8 |
Asset Amount | Estimated Life in Years | ||||
Lease agreement | $1,000 | 10 | |||
Customer relationships | 92,000 | 15 | |||
Developed technology | 44,000 | 14 | |||
Non-compete agreements | 12,000 | 4 | |||
Total identifiable intangible assets | $149,000 |
Three Months Ended | Nine Months Ended | |||||||
March 25, 2018 | March 25, 2018 | |||||||
Revenue | $240,180 | $724,547 | ||||||
Net (loss) income | (14,485 | ) | 3,802 | |||||
(Loss) earnings per share, basic | ($0.14 | ) | $0.04 | |||||
(Loss) earnings per share, diluted | ($0.14 | ) | $0.04 |
Nine months ended | |||||
(in millions of U.S. Dollars) | March 29, 2020 | ||||
Cash used in operating activities: | |||||
Cash paid for operating leases | $4.8 | ||||
Cash paid for interest portion of financing leases (1) | — | ||||
Cash used in financing activities: | |||||
Cash paid for principal portion of finance leases | 0.4 | ||||
Non-cash operating activities: | |||||
Operating lease additions due to adoption of ASC 842 | 12.2 | ||||
Operating lease additions and modifications, net | 4.7 | ||||
Finance lease additions | 3.3 |
Fiscal Year Ending | Operating Leases | Finance Leases | Total | ||||||||
June 28, 2020 (remainder of fiscal 2020) | $1.6 | $0.4 | $2.0 | ||||||||
June 27, 2021 | 4.4 | 0.4 | 4.8 | ||||||||
June 26, 2022 | 3.4 | 0.4 | 3.8 | ||||||||
June 25, 2023 | 1.8 | 0.4 | 2.2 | ||||||||
June 30, 2024 | 0.9 | 0.4 | 1.3 | ||||||||
Thereafter | 1.2 | 1.1 | 2.3 | ||||||||
Total lease payments | 13.3 | 3.1 | 16.4 | ||||||||
Imputed lease interest | (0.8) | (0.3) | (1.1) | ||||||||
Total lease liabilities | $12.5 | $2.8 | $15.3 |
Operating Leases | Finance Leases | |||||||
Weighted average remaining lease term (in months) | 43 | 80 | ||||||
Weighted average discount rate | 3.59 | % | 3.40 | % |
Fiscal Years Ending | (in millions of U.S. Dollars) | ||||
June 28, 2020 | $4.1 | ||||
June 27, 2021 | 2.3 | ||||
June 26, 2022 | 1.2 | ||||
June 25, 2023 | 0.7 | ||||
June 30, 2024 | — | ||||
Thereafter | — | ||||
Total future minimum rental payments | $8.3 |
(in millions of U.S. Dollars) | (in millions of U.S. Dollars) | March 29, 2020 | June 30, 2019 | |||||||||||||||
Billed trade receivables | Billed trade receivables | $156.7 | $125.8 | |||||||||||||||
Unbilled contract receivables | Unbilled contract receivables | 1.0 | 0.7 | |||||||||||||||
Royalties | Royalties | 3.7 | 2.8 | |||||||||||||||
161.4 | 129.3 | |||||||||||||||||
March 31, 2019 | June 24, 2018 | |||||||||||||||||
Billed trade receivables | $146,883 | $128,858 | ||||||||||||||||
Unbilled contract receivables | 4,023 | 966 | ||||||||||||||||
150,906 | 129,824 | |||||||||||||||||
Allowance for sales returns, discounts and other incentives | — | (42,675 | ) | |||||||||||||||
Allowance for bad debts | (516 | ) | (751 | ) | Allowance for bad debts | (0.4) | (0.4) | |||||||||||
Accounts receivable, net | $150,390 | $86,398 | Accounts receivable, net | $161.0 | $128.9 |
(in millions of U.S. Dollars) | March 29, 2020 | June 30, 2019 | |||||||||
Raw material | $45.0 | $42.4 | |||||||||
Work-in-progress | 92.0 | 101.1 | |||||||||
Finished goods | 33.1 | 43.9 | |||||||||
Inventories | $170.1 | $187.4 |
March 31, 2019 | June 24, 2018 | ||||||
Raw material | $37,580 | $35,092 | |||||
Work-in-progress | 95,882 | 86,193 | |||||
Finished goods | 39,331 | 30,351 | |||||
Inventories | $172,793 | $151,636 |
(in millions of U.S. Dollars) | March 29, 2020 | June 30, 2019 | |||||||||
Accounts payable, trade | $90.8 | $90.7 | |||||||||
Accrued salaries and wages | 59.1 | 70.9 | |||||||||
Accrued expenses | 31.2 | 34.0 | |||||||||
Other | 3.7 | 5.3 | |||||||||
Accounts payable and accrued expenses | $184.8 | $200.9 |
March 31, 2019 | June 24, 2018 | ||||||
Accrued taxes | $4,943 | $6,414 | |||||
Accrued professional fees | 12,419 | 4,901 | |||||
Accrued warranty | 1,241 | 1,399 | |||||
Accrued other | 1,869 | 6,566 | |||||
Other current liabilities | $20,472 | $19,280 |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | |||||||||||||||||||||||||||||||
Factory optimization restructuring | $1.1 | $— | $3.5 | $— | |||||||||||||||||||||||||||||||
Severance and other restructuring | — | — | 0.8 | 2.6 | |||||||||||||||||||||||||||||||
Total restructuring costs | 1.1 | — | 4.3 | 2.6 | |||||||||||||||||||||||||||||||
Project, transformation and transaction costs | 7.0 | 10.1 | 20.4 | 10.7 | |||||||||||||||||||||||||||||||
Factory optimization start-up costs | 2.1 | — | 5.0 | — | |||||||||||||||||||||||||||||||
Non-restructuring related executive severance | 0.6 | 1.0 | 2.1 | 1.0 | |||||||||||||||||||||||||||||||
Other operating expense | $10.8 | $11.1 | $31.8 | $14.3 |
(in millions of U.S. Dollars) | March 29, 2020 | June 30, 2019 | |||||||||
Currency translation gain | $9.5 | $9.5 | |||||||||
Net unrealized loss on available-for-sale securities | (1.7) | — | |||||||||
Accumulated other comprehensive income, net of taxes | $7.8 | $9.5 |
March 31, 2019 | June 24, 2018 | ||||||
Currency translation gain | $4,292 | $5,075 | |||||
Net unrealized loss on available-for-sale securities | (1,738 | ) | (4,479 | ) | |||
Accumulated other comprehensive income, net of taxes | $2,554 | $596 |
Three Months Ended | Nine Months Ended | |||||||||||||
March 31, 2019 | March 25, 2018 | March 31, 2019 | March 25, 2018 | |||||||||||
Foreign currency (loss) gain, net | ($613 | ) | $3,530 | ($1,107 | ) | $4,386 | ||||||||
Loss on sale of investments, net | (25 | ) | (133 | ) | (132 | ) | (85 | ) | ||||||
(Loss) gain on equity investment, net | (3,898 | ) | (13,968 | ) | (12,457 | ) | 7,510 | |||||||
Interest (expense) income, net | (3,731 | ) | 739 | (9,763 | ) | 3,354 | ||||||||
Other, net | (173 | ) | (168 | ) | (236 | ) | (223 | ) | ||||||
Non-operating (expense) income, net | ($8,440 | ) | ($10,000 | ) | ($23,695 | ) | $14,942 |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | |||||||||||||||||||||||||||||||
Foreign currency loss (gain), net | $0.3 | $0.5 | ($0.8) | $1.1 | |||||||||||||||||||||||||||||||
(Gain) loss on sale of investments, net | (1.2) | — | (1.3) | 0.1 | |||||||||||||||||||||||||||||||
Gain on arbitration proceeding | (8.0) | — | (8.0) | — | |||||||||||||||||||||||||||||||
Loss on equity investment, net | 19.1 | 3.8 | 9.2 | 12.4 | |||||||||||||||||||||||||||||||
Interest expense | 7.5 | 7.4 | 22.6 | 18.8 | |||||||||||||||||||||||||||||||
Interest income | (3.1) | (3.6) | (13.5) | (9.0) | |||||||||||||||||||||||||||||||
Other, net | (0.1) | 0.3 | (0.4) | 0.3 | |||||||||||||||||||||||||||||||
Non-operating expense, net | $14.5 | $8.4 | $7.8 | $23.7 |
Nine months ended | |||||||||||||||||
Non-cash operating activities | March 29, 2020 | March 31, 2019 | |||||||||||||||
Lease asset and liability additions (1) | $15.8 | $— | |||||||||||||||
Lease asset and liability modifications, net | 4.4 | — | |||||||||||||||
Accumulated Other Comprehensive Income Component | Amount Reclassified Out of Accumulated Other Comprehensive Loss | Affected Line Item in the Consolidated Statements of (Loss) Income | ||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||
March 31, 2019 | March 25, 2018 | March 31, 2019 | March 25, 2018 | |||||||||||||||
Net unrealized loss on available-for-sale securities, net of taxes | ($25 | ) | ($133 | ) | ($132 | ) | ($85 | ) | Non-operating (expense) income, net | |||||||||
Less income tax effect | — | — | — | — | Income tax expense (benefit) | |||||||||||||
Total reclassifications | ($25 | ) | ($133 | ) | ($132 | ) | ($85 | ) |
March 29, 2020 | ||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||||||||||||||||||
Municipal bonds | $74.3 | $0.7 | ($0.2) | $74.8 | ||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 315.3 | 0.9 | (2.2) | 314.0 | ||||||||||||||||||||||||||||||||||||||||
U.S. agency securities | 21.5 | 0.1 | — | 21.6 | ||||||||||||||||||||||||||||||||||||||||
U.S. treasury securities | 68.8 | 0.8 | — | 69.6 | ||||||||||||||||||||||||||||||||||||||||
Non-U.S. certificates of deposit | 31.8 | 0.7 | — | 32.5 | ||||||||||||||||||||||||||||||||||||||||
U.S. certificates of deposit | 5.2 | — | — | 5.2 | ||||||||||||||||||||||||||||||||||||||||
Variable rate demand note | 2.5 | — | — | 2.5 | ||||||||||||||||||||||||||||||||||||||||
Commercial paper | 9.7 | — | — | 9.7 | ||||||||||||||||||||||||||||||||||||||||
Total short-term investments | $529.1 | $3.2 | ($2.4) | $529.9 | ||||||||||||||||||||||||||||||||||||||||
June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||||||||||||||||||||||||||||||
Municipal bonds | $78.2 | $0.4 | ($0.1) | $78.5 | ||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 256.0 | 1.0 | — | 257.0 | ||||||||||||||||||||||||||||||||||||||||
U.S. agency securities | 25.6 | — | — | 25.6 | ||||||||||||||||||||||||||||||||||||||||
U.S. treasury securities | 92.4 | 0.1 | — | 92.5 | ||||||||||||||||||||||||||||||||||||||||
Non-U.S. certificates of deposit | 49.1 | 1.1 | — | 50.2 | ||||||||||||||||||||||||||||||||||||||||
U.S. certificates of deposit | 22.4 | — | — | 22.4 | ||||||||||||||||||||||||||||||||||||||||
Variable rate demand note | 16.9 | — | — | 16.9 | ||||||||||||||||||||||||||||||||||||||||
Commercial paper | 7.8 | — | — | 7.8 | ||||||||||||||||||||||||||||||||||||||||
Total short-term investments | $548.4 | $2.6 | ($0.1) | $550.9 |
March 31, 2019 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
Municipal bonds | $96,029 | $170 | ($297 | ) | $95,902 | |||||||||||
Corporate bonds | 151,244 | 337 | (274 | ) | 151,307 | |||||||||||
U.S. agency securities | 4,689 | 1 | (1 | ) | 4,689 | |||||||||||
U.S. Treasury securities | 28,972 | 7 | (18 | ) | 28,961 | |||||||||||
Non-U.S. certificates of deposit | 50,277 | 782 | — | 51,059 | ||||||||||||
U.S. certificates of deposit | — | — | — | — | ||||||||||||
Commercial paper | 1,193 | — | — | 1,193 | ||||||||||||
Total short-term investments | $332,404 | $1,297 | ($590 | ) | $333,111 | |||||||||||
June 24, 2018 | ||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Estimated Fair Value | |||||||||||||
Municipal bonds | $110,198 | $17 | ($939 | ) | $109,276 | |||||||||||
Corporate bonds | 77,871 | 36 | (1,150 | ) | 76,757 | |||||||||||
U.S. agency securities | 3,922 | — | (38 | ) | 3,884 | |||||||||||
U.S. Treasury securities | — | — | — | — | ||||||||||||
Non-U.S. certificates of deposit | 77,744 | — | — | 77,744 | ||||||||||||
U.S. certificates of deposit | 500 | — | — | 500 | ||||||||||||
Commercial paper | — | — | — | — | ||||||||||||
Total short-term investments | $270,235 | $53 | ($2,127 | ) | $268,161 |
March 31, 2019 | March 29, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | Greater than 12 Months | Total | Less than 12 Months | Greater than 12 Months | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | $2,406 | $— | $68,677 | ($297 | ) | $71,083 | ($297 | ) | Municipal bonds | $20.6 | ($0.2) | $— | $— | $20.6 | ($0.2) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 31,144 | (17 | ) | 32,930 | (257 | ) | 64,074 | (274 | ) | Corporate bonds | 213.0 | (2.2) | — | — | 213.0 | (2.2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency securities | 5,788 | (1 | ) | — | — | 5,788 | (1 | ) | U.S. agency securities | 2.0 | — | — | — | 2.0 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | 10,110 | (2 | ) | 3,907 | (16 | ) | 14,017 | (18 | ) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $49,448 | ($20 | ) | $105,514 | ($570 | ) | $154,962 | ($590 | ) | Total | $235.6 | ($2.4) | $— | $— | $235.6 | ($2.4) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of securities with an unrealized loss | 54 | 85 | 139 | Number of securities with an unrealized loss | 263 | — | 263 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
June 24, 2018 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Less than 12 Months | Greater than 12 Months | Total | Less than 12 Months | Greater than 12 Months | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | $97,470 | ($861 | ) | $3,642 | ($78 | ) | $101,112 | ($939 | ) | Municipal bonds | $4.3 | $— | $29.8 | ($0.1) | $34.1 | ($0.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | 61,453 | (1,088 | ) | 1,486 | (62 | ) | 62,939 | (1,150 | ) | Corporate bonds | 41.8 | — | 14.7 | — | 56.5 | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency securities | 3,884 | (38 | ) | — | — | 3,884 | (38 | ) | U.S. agency securities | 7.7 | — | — | — | 7.7 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury securities | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. treasury securities | U.S. treasury securities | 2.0 | — | 3.9 | — | 5.9 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $162,807 | ($1,987 | ) | $5,128 | ($140 | ) | $167,935 | ($2,127 | ) | Total | $55.8 | $— | $48.4 | ($0.1) | $104.2 | ($0.1) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Number of securities with an unrealized loss | 151 | 6 | 157 | Number of securities with an unrealized loss | 46 | 47 | 93 |
Within One Year | After One, Within Five Years | After Five, Within Ten Years | After Ten Years | Total | ||||||||||||||||||||||||||||
Municipal bonds | $15.8 | $59.0 | $— | $— | $74.8 | |||||||||||||||||||||||||||
Corporate bonds | 158.7 | 155.3 | — | — | 314.0 | |||||||||||||||||||||||||||
U.S. agency securities | 10.5 | 11.1 | — | — | 21.6 | |||||||||||||||||||||||||||
U.S. treasury securities | 48.6 | 21.0 | — | — | 69.6 | |||||||||||||||||||||||||||
Non-U.S. certificates of deposit | 31.5 | 1.0 | — | — | 32.5 | |||||||||||||||||||||||||||
U.S. certificates of deposit | 5.2 | — | — | — | 5.2 | |||||||||||||||||||||||||||
Variable rate demand note | — | — | — | 2.5 | 2.5 | |||||||||||||||||||||||||||
Commercial paper | 9.7 | — | — | — | 9.7 | |||||||||||||||||||||||||||
Total short-term investments | $280.0 | $247.4 | $— | $2.5 | $529.9 |
Within One Year | After One, Within Five Years | After Five, Within Ten Years | After Ten Years | Total | |||||||||||||||
Municipal bonds | $37,749 | $58,153 | $— | $— | $95,902 | ||||||||||||||
Corporate bonds | 61,245 | 90,062 | — | — | 151,307 | ||||||||||||||
U.S. agency securities | 3,988 | 701 | — | — | 4,689 | ||||||||||||||
U.S. Treasury securities | 28,961 | — | — | — | 28,961 | ||||||||||||||
Non-U.S. certificates of deposit | 51,059 | — | — | — | 51,059 | ||||||||||||||
Commercial paper | 1,193 | — | — | — | 1,193 | ||||||||||||||
Total short-term investments | $184,195 | $148,916 | $— | $— | $333,111 |
March 29, 2020 | June 30, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | $68.2 | $— | $— | $68.2 | $95.0 | $— | $— | $95.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | — | — | — | — | — | 15.0 | — | 15.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency securities | — | 11.6 | — | 11.6 | — | 18.8 | — | 18.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. treasury securities | — | — | — | — | 2.5 | — | — | 2.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. certificates of deposit | — | 43.2 | — | 43.2 | — | 105.8 | — | 105.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | — | — | — | — | — | 1.0 | — | 1.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total cash equivalents | 68.2 | 54.8 | — | 123.0 | 97.5 | 140.6 | — | 238.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | — | 74.8 | — | 74.8 | — | 78.5 | — | 78.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | — | 314.0 | — | 314.0 | — | 257.0 | — | 257.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency securities | — | 21.6 | — | 21.6 | — | 25.6 | — | 25.6 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. treasury securities | 69.6 | — | — | 69.6 | 92.5 | — | — | 92.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. certificates of deposit | — | 5.2 | — | 5.2 | — | 22.4 | — | 22.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. certificates of deposit | — | 32.5 | — | 32.5 | — | 50.2 | — | 50.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | — | 9.7 | — | 9.7 | — | 7.8 | — | 7.8 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Variable rate demand note | — | 2.5 | — | 2.5 | — | 16.9 | — | 16.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total short-term investments | 69.6 | 460.3 | — | 529.9 | 92.5 | 458.4 | — | 550.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other long-term investments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common stock of non-U.S. corporations | — | 31.5 | — | 31.5 | — | 39.5 | — | 39.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total assets | $137.8 | $546.6 | $— | $684.4 | $190.0 | $638.5 | $— | $828.5 |
March 31, 2019 | June 24, 2018 | ||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | ||||||||||||||||||||||||
Assets: | |||||||||||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||||||||
Corporate bonds | $— | $4,452 | $— | $4,452 | $— | $— | $— | $— | |||||||||||||||||||||||
U.S. Treasury securities | 2,998 | — | — | 2,998 | — | — | — | — | |||||||||||||||||||||||
Non-U.S. certificates of deposit | — | 147,771 | — | 147,771 | — | 75,499 | — | 75,499 | |||||||||||||||||||||||
Commercial paper | — | 4,742 | — | 4,742 | — | 275 | — | 275 | |||||||||||||||||||||||
U.S. agency securities | — | 1,800 | — | 1,800 | — | — | — | — | |||||||||||||||||||||||
Money market funds | 7,414 | — | — | 7,414 | 1,992 | — | — | 1,992 | |||||||||||||||||||||||
Total cash equivalents | 10,412 | 158,765 | — | 169,177 | 1,992 | 75,774 | — | 77,766 | |||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||
Municipal bonds | — | 95,902 | — | 95,902 | — | 109,276 | — | 109,276 | |||||||||||||||||||||||
Corporate bonds | — | 151,307 | — | 151,307 | — | 76,757 | — | 76,757 | |||||||||||||||||||||||
U.S. agency securities | — | 4,689 | — | 4,689 | 3,884 | — | — | 3,884 | |||||||||||||||||||||||
U.S. Treasury securities | 28,961 | — | — | 28,961 | — | — | — | — | |||||||||||||||||||||||
U.S. certificates of deposit | — | — | — | — | — | 500 | — | 500 | |||||||||||||||||||||||
Variable rate demand note | — | — | — | — | — | — | — | — | |||||||||||||||||||||||
Commercial paper | — | 1,193 | — | 1,193 | — | — | — | — | |||||||||||||||||||||||
Non-U.S. certificates of deposit | — | 51,059 | — | 51,059 | — | 77,744 | — | 77,744 | |||||||||||||||||||||||
Total short-term investments | 28,961 | 304,150 | — | 333,111 | 3,884 | 264,277 | — | 268,161 | |||||||||||||||||||||||
Other long-term investments: | |||||||||||||||||||||||||||||||
Common stock of non-U.S. corporations | — | 44,122 | — | 44,122 | — | 57,501 | — | 57,501 | |||||||||||||||||||||||
Total other long-term investments | — | 44,122 | — | 44,122 | — | 57,501 | — | 57,501 | |||||||||||||||||||||||
Total assets | $39,373 | $507,037 | $— | $546,410 | $5,876 | $397,552 | $— | $403,428 |
Wolfspeed | $349.7 | |||||
LED Products | ||||||
$530.0 |
March 29, 2020 | June 30, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | (in millions of U.S. Dollars) | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | June 24, 2018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer relationships | $147,820 | ($62,002 | ) | $85,818 | $147,820 | ($56,558 | ) | $91,262 | Customer relationships | $147.8 | ($68.4) | $79.4 | $147.8 | ($63.8) | $84.0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Developed technology | 75,878 | (23,116 | ) | 52,762 | 75,878 | (19,018 | ) | 56,860 | Developed technology | 74.9 | (28.4) | 46.5 | 75.9 | (24.5) | 51.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-compete agreements | 12,231 | (3,392 | ) | 8,839 | 12,231 | (1,142 | ) | 11,089 | Non-compete agreements | 12.2 | (6.4) | 5.8 | 12.2 | (4.1) | 8.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade names, finite-lived | 450 | (450 | ) | — | 450 | (450 | ) | — | Trade names, finite-lived | 0.5 | (0.5) | — | 0.5 | (0.5) | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Acquisition related intangible assets | Acquisition related intangible assets | 235.4 | (103.7) | 131.7 | 236.4 | (92.9) | 143.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Patent and licensing rights | 120,401 | (64,804 | ) | 55,597 | 119,158 | (62,554 | ) | 56,604 | Patent and licensing rights | 112.9 | (61.0) | 51.9 | 120.4 | (66.0) | 54.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total intangible assets with finite lives | 356,780 | (153,764 | ) | 203,016 | 355,537 | (139,722 | ) | 215,815 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Trade names, indefinite-lived | — | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total intangible assets | $356,780 | ($153,764 | ) | $203,016 | $355,537 | ($139,722 | ) | $215,815 | Total intangible assets | $348.3 | ($164.7) | $183.6 | $356.8 | ($158.9) | $197.9 |
(in millions of U.S. Dollars) Fiscal Year Ending | Acquisition Related Intangibles | Patents | Total | ||||||||||||||
June 28, 2020 (remainder of fiscal 2020) | $3.6 | $2.2 | $5.8 | ||||||||||||||
June 27, 2021 | 14.5 | 8.3 | 22.8 | ||||||||||||||
June 26, 2022 | 13.5 | 7.5 | 21.0 | ||||||||||||||
June 25, 2023 | 11.0 | 6.5 | 17.5 | ||||||||||||||
June 30, 2024 | 10.4 | 5.6 | 16.0 | ||||||||||||||
Thereafter | 78.7 | 21.8 | 100.5 | ||||||||||||||
Total future amortization expense | $131.7 | $51.9 | $183.6 |
(in millions of U.S. Dollars) | March 29, 2020 | June 30, 2019 | |||||||||
Principal | $575.0 | $575.0 | |||||||||
Unamortized discount and issuance costs | (88.7) | (105.9) | |||||||||
Net carrying amount | $486.3 | $469.1 |
(in millions of U.S. Dollars) | March 29, 2020 | June 30, 2019 | |||||||||
Discount related to value of conversion option | $113.3 | $113.3 | |||||||||
Debt issuance costs | (2.7) | (2.7) | |||||||||
Net carrying amount | $110.6 | $110.6 |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | |||||||||||||||||||||||||||||||
Interest expense | $1.3 | $1.2 | $3.8 | $2.9 | |||||||||||||||||||||||||||||||
Amortization of discount and issuance costs | 5.8 | 5.5 | 17.2 | 12.7 | |||||||||||||||||||||||||||||||
Total interest expense | $7.1 | $6.7 | $21.0 | $15.6 |
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, 2019 | March 25, 2018 | March 31, 2019 | March 25, 2018 | |||||||||||||
Interest expense | $1,258 | $— | $2,935 | $— | ||||||||||||
Amortization of discount and issuance costs | 5,490 | — | 12,687 | — | ||||||||||||
Total interest expense | $6,748 | $— | $15,622 | $— |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, 2019 | March 25, 2018 | March 31, 2019 | March 25, 2018 | ||||||||||||
Net (loss) income from continuing operations | ($22,311 | ) | ($10,163 | ) | ($23,259 | ) | $12,414 | ||||||||
Net income attributable to non-controlling interest | 121 | 44 | 23 | 59 | |||||||||||
Income (loss) before discontinued operations | (22,432 | ) | (10,207 | ) | (23,282 | ) | 12,355 | ||||||||
Loss from discontinued operations, net of tax | (205,420 | ) | (230,370 | ) | (218,085 | ) | (259,067 | ) | |||||||
Net loss attributable to controlling interest | ($227,852 | ) | ($240,577 | ) | ($241,367 | ) | ($246,712 | ) | |||||||
Weighted average common shares | 103,659 | 100,140 | 102,807 | 99,046 | |||||||||||
Basic (loss) earnings per share from continuing operations and non-controlling interest | ($0.22 | ) | ($0.10 | ) | ($0.23 | ) | $0.13 | ||||||||
Basic (loss) per share from discontinued operations | (1.98 | ) | (2.30 | ) | (2.12 | ) | (2.62 | ) | |||||||
(Loss) earnings per share - basic | ($2.20 | ) | ($2.40 | ) | ($2.35 | ) | ($2.49 | ) |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, 2019 | March 25, 2018 | March 31, 2019 | March 25, 2018 | ||||||||||||
Net (loss) income from continuing operations | ($22,311 | ) | ($10,163 | ) | ($23,259 | ) | $12,414 | ||||||||
Net income attributable to non-controlling interest | 121 | 44 | 23 | 59 | |||||||||||
Income (loss) before discontinued operations | (22,432 | ) | (10,207 | ) | (23,282 | ) | 12,355 | ||||||||
Loss from discontinued operations, net of tax (Note 2) | (205,420 | ) | (230,370 | ) | (218,085 | ) | (259,067 | ) | |||||||
Net loss attributable to controlling interest | ($227,852 | ) | ($240,577 | ) | ($241,367 | ) | ($246,712 | ) | |||||||
Weighted average common shares - basic | 103,659 | 100,140 | 102,807 | 99,046 | |||||||||||
Dilutive effect of stock options, nonvested shares and Employee Stock Purchase Plan purchase rights | — | — | — | 1,626 | |||||||||||
Weighted average common shares - diluted | 103,659 | 100,140 | 102,807 | 100,672 | |||||||||||
Diluted (loss) earnings per share from continuing operations and non-controlling interest | ($0.22 | ) | ($0.10 | ) | ($0.23 | ) | $0.12 | ||||||||
Diluted (loss) per share from discontinued operations | (1.98 | ) | (2.30 | ) | (2.12 | ) | (2.57 | ) | |||||||
(Loss) earnings per share - diluted | ($2.20 | ) | ($2.40 | ) | ($2.35 | ) | ($2.45 | ) |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars, except share data) | March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | |||||||||||||||||||||||||||||||
Net loss from continuing operations | ($61.4) | ($22.3) | ($151.7) | ($23.3) | |||||||||||||||||||||||||||||||
Net income attributable to noncontrolling interest | 0.2 | 0.1 | 0.5 | 0.1 | |||||||||||||||||||||||||||||||
Loss from continuing operations attributable to controlling interest | (61.6) | (22.4) | (152.2) | (23.4) | |||||||||||||||||||||||||||||||
Net loss from discontinued operations | — | (205.4) | — | (218.0) | |||||||||||||||||||||||||||||||
Net loss attributable to controlling interest | ($61.6) | ($227.8) | ($152.2) | ($241.4) | |||||||||||||||||||||||||||||||
Weighted average shares - basic and diluted (in thousands) | 108,115 | 103,659 | 107,718 | 102,807 | |||||||||||||||||||||||||||||||
Loss per share - basic and diluted: | |||||||||||||||||||||||||||||||||||
Continuing operations attributable to controlling interest | ($0.57) | ($0.22) | ($1.41) | ($0.23) | |||||||||||||||||||||||||||||||
Discontinued operations | $— | ($1.98) | $— | ($2.12) | |||||||||||||||||||||||||||||||
Number of Shares | Weighted Average Exercise Price | ||||||||||||||||
Outstanding at June 24, 2018 | 6,287 | $39.58 | |||||||||||||||
(shares in thousands) | (shares in thousands) | Number of Shares | Weighted Average Exercise Price | ||||||||||||||
Outstanding at June 30, 2019 | Outstanding at June 30, 2019 | 2,418 | $39.81 | ||||||||||||||
Granted | — | $— | Granted | — | $— | ||||||||||||
Exercised | (2,104 | ) | $35.69 | Exercised | (595) | $35.78 | |||||||||||
Forfeited or expired | (249 | ) | $48.34 | Forfeited or expired | (34) | $50.40 | |||||||||||
Outstanding at March 31, 2019 | 3,934 | $40.11 | |||||||||||||||
Outstanding at March 29, 2020 | Outstanding at March 29, 2020 | 1,789 | $40.96 |
Number of RSAs/RSUs | Weighted Average Grant-Date Fair Value | ||||||||||||||||
Nonvested at June 24, 2018 | 3,689 | $27.53 | |||||||||||||||
(awards and units in thousands) | (awards and units in thousands) | Number of RSAs/RSUs | Weighted Average Grant-Date Fair Value | ||||||||||||||
Nonvested at June 30, 2019 | Nonvested at June 30, 2019 | 3,081 | $34.99 | ||||||||||||||
Granted | 1,338 | $47.81 | Granted | 994 | $57.56 | ||||||||||||
Vested | (884 | ) | $26.84 | Vested | (1,085) | $30.38 | |||||||||||
Forfeited | (316 | ) | $27.65 | Forfeited | (168) | $33.66 | |||||||||||
Nonvested at March 31, 2019 | 3,827 | $34.87 | |||||||||||||||
Nonvested at March 29, 2020 | Nonvested at March 29, 2020 | 2,822 | $44.79 |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | |||||||||||||||||||||||||||||||
Cost of revenue, net | $2.8 | $2.2 | $7.5 | $5.6 | |||||||||||||||||||||||||||||||
Research and development | 2.4 | 1.9 | 7.2 | 5.6 | |||||||||||||||||||||||||||||||
Sales, general and administrative | 6.2 | 9.4 | 26.6 | 23.3 | |||||||||||||||||||||||||||||||
Total stock-based compensation expense | $11.4 | $13.5 | $41.3 | $34.5 | |||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, 2019 | March 25, 2018 | March 31, 2019 | March 25, 2018 | ||||||||||||
Income Statement Classification: | |||||||||||||||
Cost of revenue, net | $2,084 | $1,519 | $5,559 | $4,737 | |||||||||||
Research and development | 1,883 | 1,959 | 5,582 | 5,620 | |||||||||||
Sales, general and administrative | 9,411 | 6,372 | 23,319 | 19,043 | |||||||||||
Total stock-based compensation expense included in continuing operations | 13,378 | 9,850 | 34,460 | 29,400 | |||||||||||
Total stock-based compensation expense included in discontinued operations | 2,057 | 1,309 | 6,037 | 3,919 | |||||||||||
Total stock-based compensation expense | $15,435 | $11,159 | $40,497 | $33,319 |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||||||||||||||||||||||||||
Revenue: | |||||||||||||||||||||||||||||||||||
Wolfspeed revenue | $113.9 | $141.2 | $362.3 | $403.9 | |||||||||||||||||||||||||||||||
LED Products revenue | 101.6 | 132.8 | 335.9 | 424.8 | |||||||||||||||||||||||||||||||
Total revenue | $215.5 | $274.0 | $698.2 | $828.7 | |||||||||||||||||||||||||||||||
Gross Profit and Gross Margin: | |||||||||||||||||||||||||||||||||||
Wolfspeed gross profit | $45.5 | $68.8 | $146.3 | $193.9 | |||||||||||||||||||||||||||||||
Wolfspeed gross margin | 39.9 | % | 48.7 | % | 40.4 | % | 48.0 | % | |||||||||||||||||||||||||||
LED Products gross profit | 20.3 | 37.0 | 68.9 | 121.8 | |||||||||||||||||||||||||||||||
LED Products gross margin | 20.0 | % | 27.9 | % | 20.5 | % | 28.7 | % | |||||||||||||||||||||||||||
Total segment gross profit | 65.8 | 105.8 | 215.2 | 315.7 | |||||||||||||||||||||||||||||||
Unallocated costs | (4.4) | (3.9) | (17.7) | (10.8) | |||||||||||||||||||||||||||||||
COGS acquisition related costs | — | (1.4) | — | (2.6) | |||||||||||||||||||||||||||||||
Consolidated gross profit | $61.4 | $100.5 | $197.5 | $302.3 | |||||||||||||||||||||||||||||||
Consolidated gross margin | 28.5 | % | 36.7 | % | 28.3 | % | 36.5 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 31, 2019 | March 25, 2018 | March 31, 2019 | March 25, 2018 | ||||||||||||
Revenue: | |||||||||||||||
Wolfspeed revenue | $141,253 | $81,902 | $403,958 | $218,628 | |||||||||||
LED Products revenue | 132,797 | 143,298 | 424,771 | 440,500 | |||||||||||
Total revenue | $274,050 | $225,200 | $828,729 | $659,128 | |||||||||||
Gross Profit and Gross Margin: | |||||||||||||||
Wolfspeed gross profit | $68,851 | $39,285 | $193,947 | $105,816 | |||||||||||
Wolfspeed gross margin | 48.7 | % | 48.0 | % | 48.0 | % | 48.4 | % | |||||||
LED Products gross profit | 36,982 | 37,764 | 121,787 | 115,180 | |||||||||||
LED Products gross margin | 27.8 | % | 26.4 | % | 28.7 | % | 26.1 | % | |||||||
Total segment gross profit | 105,833 | 77,049 | 315,734 | 220,996 | |||||||||||
Unallocated costs | (3,938 | ) | (2,186 | ) | (10,782 | ) | (7,066 | ) | |||||||
COGS acquisition related costs | (1,441 | ) | — | (2,667 | ) | — | |||||||||
Consolidated gross profit | $100,454 | $74,863 | $302,285 | $213,930 | |||||||||||
Consolidated gross margin | 36.7 | % | 33.2 | % | 36.5 | % | 32.5 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | Revenue | % of Revenue | Revenue | % of Revenue | Revenue | % of Revenue | Revenue | % of Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
United States | $45.3 | 21.0 | % | $68.8 | 25.1 | % | $161.4 | 23.1 | % | $197.8 | 23.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
China | 55.4 | 25.7 | % | 83.0 | 30.3 | % | 200.8 | 28.8 | % | 289.6 | 34.9 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Europe | 64.8 | 30.1 | % | 63.2 | 23.1 | % | 188.3 | 27.0 | % | 197.1 | 23.8 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other | 50.0 | 23.2 | % | 59.0 | 21.5 | % | 147.7 | 21.2 | % | 144.2 | 17.4 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $215.5 | $274.0 | $698.2 | $828.7 |
March 29, 2020 | June 30, 2019 | ||||||||||
Wolfspeed | $90.1 | $81.6 | |||||||||
LED Products | 74.2 | 99.2 | |||||||||
Total segment inventories | 164.3 | 180.8 | |||||||||
Unallocated inventories | 5.8 | 6.6 | |||||||||
Consolidated inventories | $170.1 | $187.4 |
March 31, 2019 | June 24, 2018 | ||||||
Wolfspeed | $67,490 | $47,190 | |||||
LED Products | 100,384 | 100,452 | |||||
Total segment inventories | 167,874 | 147,642 | |||||
Unallocated inventories | 4,919 | 3,994 | |||||
Consolidated inventories | $172,793 | $151,636 |
Capacity and overhead cost reductions | Total estimated charges | Amounts incurred through June 24, 2018 | Amounts incurred through March 31, 2019 | Cumulative amounts incurred through March 31, 2019 | Affected Line Item in the Consolidated Statements of Loss | ||||||||||||
Loss on disposal or impairment of long-lived assets | $227 | $227 | $— | $227 | Loss on disposal and impairment of long-lived assets | ||||||||||||
Severance expense | 3,744 | 3,460 | 284 | 3,744 | Sales, general and administrative expenses | ||||||||||||
Lease termination and facility consolidation costs | 2,207 | 156 | 2,051 | 2,207 | Sales, general and administrative expenses | ||||||||||||
Total restructuring charges | $6,178 | $3,843 | $2,335 | $6,178 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||
March 31, 2019 | March 25, 2018 | March 31, 2019 | March 25, 2018 | ||||||||||||||||||||||||
Dollars | % of Revenue | Dollars | % of Revenue | Dollars | % of Revenue | Dollars | % of Revenue | ||||||||||||||||||||
Revenue, net | $274,050 | 100 | % | $225,200 | 100 | % | $828,729 | 100 | % | $659,128 | 100 | % | |||||||||||||||
Cost of revenue, net | 173,596 | 63 | % | 150,337 | 67 | % | 526,444 | 64 | % | 445,198 | 68 | % | |||||||||||||||
Gross profit | 100,454 | 37 | % | 74,863 | 33 | % | 302,285 | 36 | % | 213,930 | 32 | % | |||||||||||||||
Research and development | 40,722 | 15 | % | 31,144 | 14 | % | 117,235 | 14 | % | 95,184 | 14 | % | |||||||||||||||
Sales, general and administrative | 61,626 | 22 | % | 46,631 | 21 | % | 157,937 | 19 | % | 128,743 | 20 | % | |||||||||||||||
Amortization or impairment of acquisition-related intangibles | 3,906 | 1 | % | 1,516 | 1 | % | 11,717 | 1 | % | 3,224 | — | % | |||||||||||||||
Loss on disposal and impairment of other assets | 5,286 | 2 | % | 1,112 | — | % | 5,708 | 1 | % | 6,940 | 1 | % | |||||||||||||||
Operating (loss) income | (11,086 | ) | (4 | )% | (5,540 | ) | (2 | )% | 9,688 | 1 | % | (20,161 | ) | (3 | )% | ||||||||||||
Non-operating (expense) income, net | (8,440 | ) | (3 | )% | (10,000 | ) | (4 | )% | (23,695 | ) | (3 | )% | 14,942 | 2 | % | ||||||||||||
Loss before income taxes | (19,526 | ) | (7 | )% | (15,540 | ) | (7 | )% | (14,007 | ) | (2 | )% | (5,219 | ) | (1 | )% | |||||||||||
Income tax expense (benefit) | 2,785 | 1 | % | (5,377 | ) | (2 | )% | 9,252 | 1 | % | (17,633 | ) | (3 | )% | |||||||||||||
Net (loss) income from continuing operations | (22,311 | ) | (8 | )% | ($10,163 | ) | (5 | )% | ($23,259 | ) | (3 | )% | $12,414 | 2 | % | ||||||||||||
Loss from discontinued operations, net of tax (Note 2) | (205,420 | ) | (75 | )% | (230,370 | ) | (102 | )% | (218,085 | ) | (26 | )% | (259,067 | ) | (39 | )% | |||||||||||
Net loss | (227,731 | ) | (83 | )% | (240,533 | ) | (107 | )% | (241,344 | ) | (29 | )% | (246,653 | ) | (37 | )% | |||||||||||
Net income attributable to non-controlling interest | 121 | — | % | 44 | — | % | 23 | — | % | 59 | — | % | |||||||||||||||
Net loss attributable to controlling interest | ($227,852 | ) | (83 | )% | ($240,577 | ) | (107 | )% | ($241,367 | ) | (29 | )% | ($246,712 | ) | (37 | )% | |||||||||||
(Loss) Earnings per share - basic | |||||||||||||||||||||||||||
Continuing operations | ($0.22 | ) | ($0.10 | ) | ($0.23 | ) | $0.13 | ||||||||||||||||||||
Discontinued operations | (1.98 | ) | (2.30 | ) | (2.12 | ) | (2.62 | ) | |||||||||||||||||||
Loss per share - basic | ($2.20 | ) | ($2.40 | ) | ($2.35 | ) | ($2.49 | ) | |||||||||||||||||||
(Loss) Earnings per share - diluted | |||||||||||||||||||||||||||
Continuing operations | ($0.22 | ) | ($0.10 | ) | ($0.23 | ) | $0.12 | ||||||||||||||||||||
Discontinued operations | (1.98 | ) | (2.30 | ) | (2.12 | ) | (2.57 | ) | |||||||||||||||||||
Loss per share - diluted | ($2.20 | ) | ($2.40 | ) | ($2.35 | ) | ($2.45 | ) |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars, except share data) | Dollars | % of Revenue | Dollars | % of Revenue | Amount | % of Revenue | Amount | % of Revenue | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue, net | $215.5 | 100.0 | % | $274.0 | 100.0 | % | $698.2 | 100.0 | % | $828.7 | 100.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost of revenue, net | 154.1 | 71.5 | 173.5 | 63.3 | 500.7 | 71.7 | 526.4 | 63.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross profit | 61.4 | 28.5 | 100.5 | 36.7 | 197.5 | 28.3 | 302.3 | 36.5 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | 46.7 | 21.7 | 40.7 | 14.9 | 137.7 | 19.7 | 117.2 | 14.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales, general and administrative | 49.7 | 23.1 | 50.6 | 18.5 | 160.1 | 22.9 | 143.7 | 17.3 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amortization or impairment of acquisition-related intangibles | 3.7 | 1.7 | 3.9 | 1.4 | 10.9 | 1.6 | 11.7 | 1.4 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on disposal or impairment of other assets | 0.3 | 0.1 | 5.3 | 1.9 | 2.1 | 0.3 | 5.7 | 0.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other operating expense | 10.8 | 5.0 | 11.1 | 4.1 | 31.8 | 4.6 | 14.3 | 1.7 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Operating (loss) income | (49.8) | (23.1) | (11.1) | (4.1) | (145.1) | (20.8) | 9.7 | 1.2 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating expense, net | 14.5 | 6.7 | 8.4 | 3.1 | 7.8 | 1.1 | 23.7 | 2.9 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss before income taxes | (64.3) | (29.8) | (19.5) | (7.1) | (152.9) | (21.9) | (14.0) | (1.7) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | (2.9) | (1.3) | 2.8 | 1.0 | (1.2) | (0.2) | 9.3 | 1.1 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss from continuing operations | ($61.4) | (28.5) | ($22.3) | (8.1) | ($151.7) | (21.7) | ($23.3) | (2.8) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss from discontinued operations | — | — | (205.4) | (75.0) | — | — | (218.0) | (26.3) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss | (61.4) | (28.5) | (227.7) | (83.1) | (151.7) | (21.7) | (241.3) | (29.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income attributable to non-controlling interest | 0.2 | 0.1 | 0.1 | — | 0.5 | 0.1 | 0.1 | — | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to controlling interest | ($61.6) | (28.6) | ($227.8) | (83.1) | ($152.2) | (21.8) | ($241.4) | (29.1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Basic and diluted loss per share | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Continuing operations attributable to controlling interest | ($0.57) | ($0.22) | ($1.41) | ($0.23) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to controlling interest | ($0.57) | ($2.20) | ($1.41) | ($2.35) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | March 25, 2018 | Change | March 31, 2019 | March 25, 2018 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | (in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | Change | March 29, 2020 | March 31, 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Wolfspeed revenue | $141,253 | $81,902 | $59,351 | 72 | % | $403,958 | $218,628 | $185,330 | 85 | % | Wolfspeed revenue | $113.9 | $141.2 | ($27.3) | (19) | % | $362.3 | $403.9 | ($41.6) | (10) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percent of revenue | 52 | % | 36 | % | 49 | % | 33 | % | Percent of revenue | 53 | % | 52 | % | 52 | % | 49 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LED Products revenue | 132,797 | 143,298 | (10,501 | ) | (7 | )% | 424,771 | 440,500 | (15,729 | ) | (4 | )% | LED Products revenue | 101.6 | 132.8 | (31.2) | (23) | % | 335.9 | 424.8 | (88.9) | (21) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Percent of revenue | 48 | % | 64 | % | 51 | % | 67 | % | Percent of revenue | 47 | % | 48 | % | 48 | % | 51 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total revenue | $274,050 | $225,200 | $48,850 | 22 | % | $828,729 | $659,128 | $169,601 | 26 | % | Total revenue | $215.5 | $274.0 | ($58.5) | (21) | % | $698.2 | $828.7 | ($130.5) | (16) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
March 31, 2019 | March 25, 2018 | Change | March 31, 2019 | March 25, 2018 | Change | ||||||||||||||||||||||||
Wolfspeed gross profit | $68,851 | $39,285 | $29,566 | 75 | % | $193,947 | $105,816 | $88,131 | 83 | % | |||||||||||||||||||
Wolfspeed gross margin | 48.7 | % | 48.0 | % | 48.0 | % | 48.4 | % | |||||||||||||||||||||
LED Products gross profit | 36,982 | 37,764 | (782 | ) | (2 | )% | 121,787 | 115,180 | 6,607 | 6 | % | ||||||||||||||||||
LED Products gross margin | 27.8 | % | 26.4 | % | 28.7 | % | 26.1 | % | |||||||||||||||||||||
Unallocated costs | (3,938 | ) | (2,186 | ) | (1,752 | ) | (80 | )% | (10,782 | ) | (7,066 | ) | (3,716 | ) | (53 | )% | |||||||||||||
COGS acquisition related costs | (1,441 | ) | — | (1,441 | ) | (100 | )% | (2,667 | ) | — | (2,667 | ) | (100 | )% | |||||||||||||||
Consolidated gross profit | $100,454 | $74,863 | $25,591 | 34 | % | $302,285 | $213,930 | $88,355 | 41 | % | |||||||||||||||||||
Consolidated gross margin | 36.7 | % | 33.2 | % | 36.5 | % | 32.5 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | Change | March 29, 2020 | March 31, 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Wolfspeed gross profit | $45.5 | $68.8 | ($23.3) | (34) | % | $146.3 | $193.9 | ($47.6) | (25) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Wolfspeed gross margin | 39.9 | % | 48.7 | % | 40.4 | % | 48.0 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
LED Products gross profit | 20.3 | 37.0 | (16.7) | (45) | % | 68.9 | 121.8 | (52.9) | (43) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
LED Products gross margin | 20.0 | % | 27.9 | % | 20.5 | % | 28.7 | % | |||||||||||||||||||||||||||||||||||||||||||||||||||
Unallocated costs | (4.4) | (3.9) | (0.5) | (13) | % | (17.7) | (10.8) | (6.9) | (64) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
COGS acquisition related costs | — | (1.4) | 1.4 | 100 | % | — | (2.6) | 2.6 | 100 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated gross profit | $61.4 | $100.5 | ($39.1) | (39) | % | $197.5 | $302.3 | ($104.8) | (35) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Consolidated gross margin | 28.5 | % | 36.7 | % | 28.3 | % | 36.5 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | Change | March 29, 2020 | March 31, 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Research and development | $46.7 | $40.7 | $6.0 | 15 | % | $137.7 | $117.2 | $20.5 | 17 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Percent of revenue | 22 | % | 15 | % | 20 | % | 14 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
March 31, 2019 | March 25, 2018 | Change | March 31, 2019 | March 25, 2018 | Change | ||||||||||||||||||||||||
Research and development | $40,722 | $31,144 | $9,578 | 31 | % | $117,235 | $95,184 | $22,051 | 23 | % | |||||||||||||||||||
Percent of revenue | 15 | % | 14 | % | 14 | % | 14 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
March 31, 2019 | March 25, 2018 | Change | March 31, 2019 | March 25, 2018 | Change | ||||||||||||||||||||||||
Sales, general and administrative | $61,626 | $46,631 | $14,995 | 32 | % | $157,937 | $128,743 | $29,194 | 23 | % | |||||||||||||||||||
Percent of revenue | 22 | % | 21 | % | 19 | % | 20 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | Change | March 29, 2020 | March 31, 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Sales, general and administrative | $49.7 | $50.6 | ($0.9) | (2) | % | $160.1 | $143.7 | $16.4 | 11 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Percent of revenue | 23 | % | 18 | % | 23 | % | 17 | % |
Three months ended | Nine months ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 31, 2019 | March 25, 2018 | Change | March 31, 2019 | March 25, 2018 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | (in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | Change | March 29, 2020 | March 31, 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer relationships | $1,815 | $611 | $1,204 | 197 | % | $5,444 | $1,174 | $4,270 | 364 | % | Customer relationships | $1.5 | $1.8 | ($0.3) | (17) | % | $4.6 | $5.4 | ($0.8) | (15) | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Developed technology | 1,341 | 724 | 617 | 85 | % | 4,023 | 1,831 | 2,192 | 120 | % | Developed technology | 1.4 | 1.3 | 0.1 | 8 | % | 4.0 | 4.0 | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Non-compete agreements | 750 | 181 | 569 | 314 | % | 2,250 | 219 | 2,031 | 927 | % | Non-compete agreements | 0.8 | 0.8 | — | — | % | 2.3 | 2.3 | — | — | % | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total amortization | $3,906 | $1,516 | $2,390 | 158 | % | $11,717 | $3,224 | $8,493 | 263 | % | Total amortization | $3.7 | $3.9 | ($0.2) | (5) | % | $10.9 | $11.7 | ($0.8) | (7) | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | Change | March 29, 2020 | March 31, 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss on disposal or impairment of other assets | $0.3 | $5.3 | ($5.0) | (94) | % | $2.1 | $5.7 | ($3.6) | (63) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
March 31, 2019 | March 25, 2018 | Change | March 31, 2019 | March 25, 2018 | Change | ||||||||||||||||||||||||
Loss on disposal and impairment of other assets | $5,286 | $1,112 | $4,174 | 375 | % | $5,708 | $6,940 | ($1,232 | ) | (18 | )% |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | Change | March 29, 2020 | March 31, 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Factory optimization restructuring | $1.1 | $— | $1.1 | 100 | % | $3.5 | $— | $3.5 | 100 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Severance and other restructuring | — | — | — | — | % | 0.8 | 2.6 | (1.8) | (69) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Total restructuring costs | 1.1 | — | 1.1 | 100 | % | 4.3 | 2.6 | 1.7 | 65 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Project, transformation and transaction costs | 7.0 | 10.1 | (3.1) | (31) | % | 20.4 | 10.7 | 9.7 | 91 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Factory optimization start-up costs | 2.1 | — | 2.1 | 100 | % | 5.0 | — | 5.0 | 100 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Non-restructuring related executive severance | 0.6 | 1.0 | (0.4) | (40) | % | 2.1 | 1.0 | 1.1 | 110 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Other operating expense | $10.8 | $11.1 | ($0.3) | (3) | % | $31.8 | $14.3 | $17.5 | 122 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
March 31, 2019 | March 25, 2018 | Change | March 31, 2019 | March 25, 2018 | Change | ||||||||||||||||||||||||
Loss on sale of investments, net | ($25 | ) | ($133 | ) | $108 | (81 | )% | ($132 | ) | ($85 | ) | ($47 | ) | 55 | % | ||||||||||||||
(Loss) gain on equity investment, net | (3,898 | ) | (13,968 | ) | 10,070 | (72 | )% | (12,457 | ) | 7,510 | (19,967 | ) | (266 | )% | |||||||||||||||
Foreign currency (loss) gain, net | (613 | ) | 3,530 | (4,143 | ) | (117 | )% | (1,107 | ) | 4,386 | (5,493 | ) | (125 | )% | |||||||||||||||
Interest (expense) income, net | (3,731 | ) | 739 | (4,470 | ) | (605 | )% | (9,763 | ) | 3,354 | (13,117 | ) | (391 | )% | |||||||||||||||
Other, net | (173 | ) | (168 | ) | (5 | ) | 3 | % | (236 | ) | (223 | ) | (13 | ) | 6 | % | |||||||||||||
Non-operating (expense) income, net | ($8,440 | ) | ($10,000 | ) | $1,560 | (16 | )% | ($23,695 | ) | $14,942 | ($38,637 | ) | (259 | )% |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | Change | March 29, 2020 | March 31, 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(Gain) loss on sale of investments, net | ($1.2) | $— | ($1.2) | (100) | % | ($1.3) | $0.1 | ($1.4) | (1,400) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Loss on equity investment, net | $19.1 | $3.8 | $15.3 | 403 | % | $9.2 | $12.4 | ($3.2) | (26) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Gain on arbitration proceeding | (8.0) | — | (8.0) | (100) | % | (8.0) | — | (8.0) | (100) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Foreign currency loss (gain), net | 0.3 | 0.5 | (0.2) | (40) | % | (0.8) | 1.1 | (1.9) | (173) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest expense | 7.5 | 7.4 | 0.1 | 1 | % | 22.6 | 18.8 | 3.8 | 20 | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Interest income | (3.1) | (3.6) | 0.5 | 14 | % | (13.5) | (9.0) | (4.5) | (50) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Other, net | (0.1) | 0.3 | (0.4) | (133) | % | (0.4) | 0.3 | (0.7) | (233) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Non-operating expense, net | $14.5 | $8.4 | $6.1 | 73 | % | $7.8 | $23.7 | ($15.9) | (67) | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 29, 2020 | March 31, 2019 | Change | March 29, 2020 | March 31, 2019 | Change | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Income tax (benefit) expense | ($2.9) | $2.8 | ($5.7) | (204) | % | ($1.2) | $9.3 | ($10.5) | (113) | % | |||||||||||||||||||||||||||||||||||||||||||||||||
Effective tax rate | 5 | % | (14) | % | 1 | % | (66) | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||
March 31, 2019 | March 25, 2018 | Change | March 31, 2019 | March 25, 2018 | Change | ||||||||||||||||||||||||
Income tax expense (benefit) | $2,785 | ($5,377 | ) | $8,162 | 152 | % | $9,252 | ($17,633 | ) | $26,885 | 152 | % | |||||||||||||||||
Effective tax rate | (14.3 | )% | 34.6 | % | (66.1 | )% | 337.9 | % |
Three months ended | |||||||||||||||||||||||
March 29, 2020 | June 30, 2019 | Change | |||||||||||||||||||||
Days of sales outstanding (a) | 53 | 34 | 19 | ||||||||||||||||||||
Days of supply in inventory (b) | 99 | 104 | (5) | ||||||||||||||||||||
Days in accounts payable (c) | (73) | (72) | (1) | ||||||||||||||||||||
Cash conversion cycle | 79 | 66 | 13 |
Three Months Ended | ||||||
March 31, 2019 | June 24, 2018 | Change | ||||
Days of sales outstanding(a) | 34 | 29 | 5 | |||
Days of supply in inventory(b) | 90 | 76 | 14 | |||
Days in accounts payable(c) | (58) | (54) | (4 | ) | ||
Cash conversion cycle | 66 | 51 | 15 |
Nine Months Ended | ||||||||||||||
March 31, 2019 | March 25, 2018 | Change | ||||||||||||
Net cash provided by operating activities | $186,969 | $125,423 | $61,546 | 49 | % | |||||||||
Net cash used in investing activities | (192,507 | ) | (393,799 | ) | 201,292 | 51 | % | |||||||
Net cash provided by financing activities | 343,010 | 236,290 | 106,720 | 45 | % | |||||||||
Effects of foreign exchange changes on cash and cash equivalents | (239 | ) | 715 | (954 | ) | (133 | )% | |||||||
Net increase (decrease) in cash and cash equivalents | $337,233 | ($31,371 | ) | $368,604 | (1,175 | )% |
Nine months ended | |||||||||||||||||||||||||||||||||||
March 29, 2020 | March 31, 2019 | Change | |||||||||||||||||||||||||||||||||
Cash (used in) provided by operating activities | ($39.5) | $189.0 | ($228.5) | (121) | % | ||||||||||||||||||||||||||||||
Cash used in investing activities | (152.2) | (192.5) | 40.3 | 21 | % | ||||||||||||||||||||||||||||||
Cash provided by financing activities | 14.4 | 341.0 | (326.6) | (96) | % | ||||||||||||||||||||||||||||||
Effect of foreign exchange changes | (0.2) | (0.2) | — | — | % | ||||||||||||||||||||||||||||||
Net change in cash and cash equivalents | ($177.5) | $337.3 | ($514.8) | (153) | % |
Incorporated by Reference | |||||||||||||||||||||||
Exhibit No. | Description | Filed Herewith | Form | Exhibit | Filing Date | ||||||||||||||||||
Indenture, dated as of April 21, 2020, between the Company and U.S. Bank National Association | 8-K | 4.1 | 4/21/2020 | ||||||||||||||||||||
Form of 1.75% Convertible Senior Note due 2026 (included in Exhibit 4.1) | 8-K | 4.2 | 4/21/2020 | ||||||||||||||||||||
Fifth Amendment to the Credit Agreement, dated as of March 27, 2020, by and among Cree, Inc., Wells Fargo Bank, National Association, as administrative agent, and the other lenders party thereto | X | ||||||||||||||||||||||
Certification by Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||||||||||||||
Certification by Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||||||||||||||
Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||||||||||||||
Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||||||||||||||
101 | The following materials from Cree, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 29, 2020 formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statements of Comprehensive Loss; (iv) Consolidated Statement of Shareholders' Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial Statements | X | |||||||||||||||||||||
104 | The cover page from the Cree Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 29, 2020 formatted in Inline XBRL (included in Exhibit 101) | X |
CREE, INC. | |||||
April 30, 2020 | |||||
/s/ Neill P. Reynolds | |||||
Neill P. Reynolds | |||||
Executive Vice President and Chief Financial Officer | |||||
(Authorized Officer and Principal Financial and Chief Accounting Officer) |