Cover Page
Cover Page - shares | 6 Months Ended | |
Dec. 29, 2019 | Jan. 31, 2020 | |
Cover page. | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 29, 2019 | |
Document Transition Report | false | |
Entity File Number | 0-12933 | |
Entity Registrant Name | LAM RESEARCH CORPORATION | |
Entity Incorporation, State or Country Code | DE | |
Entity Tax Identification Number | 94-2634797 | |
Entity Address, Address Line One | 4650 Cushing Parkway, | |
Entity Address, City or Town | Fremont, | |
Entity Address, State or Province | CA | |
Entity Address, Postal Zip Code | 94538 | |
City Area Code | 510 | |
Local Phone Number | 572-0200 | |
Title of 12(b) Security | Common Stock, Par Value $0.001 Per Share | |
Trading Symbol | LRCX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 145,548,470 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Entity Central Index Key | 0000707549 | |
Current Fiscal Year End Date | --06-28 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | |
Income Statement [Abstract] | ||||
Revenue | $ 2,583,501 | $ 2,522,673 | $ 4,749,247 | $ 4,853,364 |
Cost of goods sold | 1,403,857 | 1,377,640 | 2,587,893 | 2,650,133 |
Gross margin | 1,179,644 | 1,145,033 | 2,161,354 | 2,203,231 |
Research and development | 318,861 | 285,556 | 605,688 | 577,228 |
Selling, general, and administrative | 174,272 | 169,098 | 331,700 | 343,873 |
Total operating expenses | 493,133 | 454,654 | 937,388 | 921,101 |
Operating income | 686,511 | 690,379 | 1,223,966 | 1,282,130 |
Other expense, net | (13,924) | (30,649) | (26,652) | (31,026) |
Income before income taxes | 672,587 | 659,730 | 1,197,314 | 1,251,104 |
Income tax expense | (158,077) | (90,875) | (217,015) | (148,889) |
Net income | $ 514,510 | $ 568,855 | $ 980,299 | $ 1,102,215 |
Net income per share: | ||||
Basic (usd per share) | $ 3.57 | $ 3.67 | $ 6.79 | $ 7.10 |
Diluted (usd per share) | $ 3.43 | $ 3.51 | $ 6.52 | $ 6.73 |
Number of shares used in per share calculations: | ||||
Basic (shares) | 143,987 | 155,022 | 144,330 | 155,340 |
Diluted (shares) | 150,097 | 162,170 | 150,389 | 163,749 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 514,510 | $ 568,855 | $ 980,299 | $ 1,102,215 |
Other comprehensive income (loss), net of tax: | ||||
Foreign currency translation adjustment | 7,511 | (7,268) | (1,187) | (13,529) |
Cash flow hedges: | ||||
Net unrealized gains during the period | 4,079 | 3,388 | ||
Net unrealized gains during the period | 5,122 | 11,988 | ||
Net losses (gains) reclassified into earnings | 1,384 | 2,734 | ||
Net losses (gains) reclassified into earnings | (5,726) | (4,578) | ||
Net change | 5,463 | 6,122 | ||
Net change | (604) | 7,410 | ||
Available-for-sale investments: | ||||
Net unrealized (losses) gains during the period | (1,713) | 585 | (2,713) | 298 |
Net losses (gains) reclassified into earnings | 593 | (51) | 983 | (54) |
Net change | (1,120) | 534 | (1,730) | 244 |
Defined benefit plans, net change in unrealized component | 459 | 375 | 578 | (1,368) |
Other comprehensive income (loss), net of tax | 12,313 | (6,963) | 3,783 | (7,243) |
Comprehensive income | $ 526,823 | $ 561,892 | $ 984,082 | $ 1,094,972 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 29, 2019 | Jun. 30, 2019 | ||
ASSETS | ||||
Cash and cash equivalents | $ 3,035,887 | $ 3,658,219 | [1] | |
Investments | 1,647,867 | 1,772,984 | [1] | |
Accounts receivable, less allowance for doubtful accounts of $5,357 as of December 29, 2019, and $5,021 as of June 30, 2019 | 2,030,490 | 1,455,522 | [1] | |
Inventories | 1,528,620 | 1,540,140 | [1] | |
Prepaid expenses and other current assets | 212,101 | 133,544 | [1] | |
Total current assets | 8,454,965 | 8,560,409 | [1] | |
Property and equipment, net | 1,047,254 | |||
Property and equipment, net | [1] | 1,059,077 | ||
Restricted cash and investments | 253,907 | 255,177 | [1] | |
Goodwill | 1,484,824 | 1,484,597 | [1] | |
Intangible assets, net | 193,116 | 216,950 | [1] | |
Other assets | 480,056 | 425,123 | [1] | |
Total assets | 11,914,122 | 12,001,333 | [1] | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||
Trade accounts payable | 452,779 | 376,561 | [1] | |
Accrued expenses and other current liabilities | 1,114,013 | 946,641 | [1] | |
Deferred profit | 366,417 | 381,317 | [1] | |
Current portion of long-term debt and finance lease obligations | 632,292 | 667,131 | [1] | |
Total current liabilities | 2,565,501 | 2,371,650 | [1] | |
Long-term debt and finance lease obligations, less current portion | 3,786,067 | 3,822,768 | [1] | |
Income taxes payable | 872,778 | 892,790 | [1] | |
Other long-term liabilities | 272,043 | 190,821 | [1] | |
Total liabilities | 7,496,389 | 7,278,029 | [1] | |
Commitments and contingencies | [1] | |||
Temporary equity, convertible notes | 38,304 | 49,439 | [1] | |
Stockholders’ equity: | ||||
Preferred stock, at par value of $0.001 per share; authorized, 5,000 shares, none outstanding | 0 | 0 | [1] | |
Common stock, at par value of $0.001 per share; authorized, 400,000 shares; issued and outstanding, 142,462 shares at December 29, 2019, and 144,433 shares at June 30, 2019 | 142 | 144 | [1] | |
Additional paid-in capital | 6,528,821 | 6,409,405 | [1] | |
Treasury stock, at cost; 143,917 shares at December 29, 2019, and 140,573 shares at June 30, 2019 | (12,673,292) | (11,602,573) | [1] | |
Accumulated other comprehensive loss | (60,247) | (64,030) | [1] | |
Retained earnings | 10,584,005 | 9,930,919 | [1] | |
Total stockholders’ equity | 4,379,429 | 4,673,865 | [1] | |
Total liabilities and stockholders’ equity | $ 11,914,122 | $ 12,001,333 | [1] | |
[1] | Derived from audited financial statements |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Dec. 29, 2019 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 5,357 | $ 5,021 |
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 142,462,000 | 144,433,000 |
Common stock, shares outstanding (in shares) | 142,462,000 | 144,433,000 |
Treasury stock, shares (in shares) | 143,917,000 | 140,573,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 29, 2019 | Dec. 23, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 980,299 | $ 1,102,215 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 130,194 | 161,599 |
Deferred income taxes | 74,516 | (62,704) |
Equity-based compensation expense | 88,630 | 89,149 |
Amortization of note discounts and issuance costs | 3,250 | 2,276 |
Other, net | 3,699 | 848 |
Changes in operating assets and liabilities | (508,613) | 69,322 |
Net cash provided by operating activities | 771,975 | 1,362,705 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures and intangible assets | (101,310) | (162,021) |
Purchases of available-for-sale securities | (1,619,695) | (785,188) |
Maturities of available-for-sales securities | 952,327 | 364,720 |
Sales of available-for-sale securities | 795,559 | 581,108 |
Other, net | (10,528) | (4,019) |
Net cash provided by (used for) investing activities | 16,353 | (5,400) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on debt | (46,952) | (86,271) |
Net repayments of commercial paper | 0 | (359,604) |
Treasury stock purchases | (1,083,199) | (1,737,414) |
Dividends paid | (325,589) | (342,279) |
Reissuance of treasury stock related to employee stock purchase plan | 38,447 | 32,920 |
Proceeds from issuance of common stock | 4,501 | 109 |
Other, net | 0 | (13,207) |
Net cash used for financing activities | (1,412,792) | (2,505,746) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 862 | (5,032) |
Net decrease in cash, cash equivalents, and restricted cash | (623,602) | (1,153,473) |
Cash, cash equivalents, and restricted cash at beginning of period | 3,913,396 | 4,768,558 |
Cash, cash equivalents, and restricted cash at end of period | 3,289,794 | 3,615,085 |
Schedule of non-cash transactions: | ||
Accrued payables for stock repurchases | 289 | 4 |
Accrued payables for capital expenditures | 27,966 | 36,582 |
Transfers of inventory to property and equipment, net | 27,472 | 33,723 |
Reconciliation of cash, cash equivalents, and restricted cash | ||
Total cash, cash equivalents, and restricted cash | $ 3,289,794 | $ 3,615,085 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | |
Beginning balance (shares) at Jun. 24, 2018 | 156,892 | ||||||
Beginning balance at Jun. 24, 2018 | $ 6,501,851 | $ 157 | $ 6,144,425 | $ (7,846,476) | $ (57,449) | $ 8,261,194 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Sale of common stock (shares) | 79 | ||||||
Sale of common stock | 109 | 109 | |||||
Purchase of treasury stock (shares) | (9,491) | ||||||
Purchase of treasury stock | (1,737,302) | $ (9) | (1,737,293) | ||||
Reissuance of treasury stock (shares) | 273 | ||||||
Reissuance of treasury stock | 32,920 | 22,637 | 10,283 | ||||
Equity-based compensation expense | 89,149 | 89,149 | |||||
Effect of conversion of convertible notes (shares) | 2,103 | ||||||
Effect of conversion of convertible notes | (20,547) | $ 2 | (20,549) | ||||
Exercise of warrants (shares) | 4,105 | ||||||
Exercise of warrants | (8) | $ 4 | (12) | ||||
Reclassification from temporary to permanent equity | 21,183 | 21,183 | |||||
Adoption of ASU 2018-02 | ASU 2018-02 | (2,227) | 2,227 | |||||
Net income | 1,102,215 | 1,102,215 | |||||
Other comprehensive income (loss) | (7,243) | ||||||
Other comprehensive loss | (5,016) | (5,016) | |||||
Cash dividends declared | (339,103) | (339,103) | |||||
Ending balance (shares) at Dec. 23, 2018 | 153,961 | ||||||
Ending balance at Dec. 23, 2018 | 5,784,363 | $ 154 | 6,256,942 | (9,573,486) | (64,692) | 9,165,445 | |
Beginning balance (shares) at Sep. 23, 2018 | 153,384 | ||||||
Beginning balance at Sep. 23, 2018 | 5,322,825 | $ 153 | 6,195,024 | (9,582,409) | (57,729) | 8,767,786 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Sale of common stock (shares) | 47 | ||||||
Sale of common stock | 109 | 109 | |||||
Purchase of treasury stock (shares) | (1,683) | ||||||
Purchase of treasury stock | (1,361) | $ (1) | (1,360) | ||||
Reissuance of treasury stock (shares) | 273 | ||||||
Reissuance of treasury stock | 32,920 | 22,637 | 10,283 | ||||
Equity-based compensation expense | 38,806 | 38,806 | |||||
Effect of conversion of convertible notes (shares) | 141 | ||||||
Effect of conversion of convertible notes | (1,435) | (1,435) | |||||
Exercise of warrants (shares) | 1,799 | ||||||
Exercise of warrants | 0 | $ 2 | (2) | ||||
Reclassification from temporary to permanent equity | 1,803 | 1,803 | |||||
Net income | 568,855 | 568,855 | |||||
Other comprehensive income (loss) | (6,963) | (6,963) | |||||
Cash dividends declared | (171,196) | (171,196) | |||||
Ending balance (shares) at Dec. 23, 2018 | 153,961 | ||||||
Ending balance at Dec. 23, 2018 | 5,784,363 | $ 154 | 6,256,942 | (9,573,486) | (64,692) | 9,165,445 | |
Beginning balance (shares) at Jun. 30, 2019 | 144,433 | ||||||
Beginning balance at Jun. 30, 2019 | 4,673,865 | [1] | $ 144 | 6,409,405 | (11,602,573) | (64,030) | 9,930,919 |
Ending balance (shares) at Sep. 29, 2019 | 144,871 | ||||||
Ending balance at Sep. 29, 2019 | 4,936,393 | $ 145 | 6,456,492 | (11,680,689) | (72,560) | 10,233,005 | |
Beginning balance (shares) at Jun. 30, 2019 | 144,433 | ||||||
Beginning balance at Jun. 30, 2019 | 4,673,865 | [1] | $ 144 | 6,409,405 | (11,602,573) | (64,030) | 9,930,919 |
Increase (Decrease) in Stockholders' Equity | |||||||
Sale of common stock (shares) | 183 | ||||||
Sale of common stock | 4,501 | 4,501 | |||||
Purchase of treasury stock (shares) | (3,639) | ||||||
Purchase of treasury stock | (1,083,459) | $ (3) | (1,083,456) | ||||
Reissuance of treasury stock (shares) | 296 | ||||||
Reissuance of treasury stock | 38,447 | 25,710 | 12,737 | ||||
Equity-based compensation expense | 88,630 | 88,630 | |||||
Effect of conversion of convertible notes (shares) | 1,189 | ||||||
Effect of conversion of convertible notes | (10,559) | $ 1 | (10,560) | ||||
Reclassification from temporary to permanent equity | 11,135 | 11,135 | |||||
Net income | 980,299 | 980,299 | |||||
Other comprehensive income (loss) | 3,783 | 3,783 | |||||
Cash dividends declared | (330,231) | (330,231) | |||||
Ending balance (shares) at Dec. 29, 2019 | 142,462 | ||||||
Ending balance at Dec. 29, 2019 | 4,379,429 | $ 142 | 6,528,821 | (12,673,292) | (60,247) | 10,584,005 | |
Beginning balance (shares) at Sep. 29, 2019 | 144,871 | ||||||
Beginning balance at Sep. 29, 2019 | 4,936,393 | $ 145 | 6,456,492 | (11,680,689) | (72,560) | 10,233,005 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Sale of common stock (shares) | 72 | ||||||
Sale of common stock | 632 | 632 | |||||
Purchase of treasury stock (shares) | (3,242) | ||||||
Purchase of treasury stock | (1,005,343) | $ (3) | (1,005,340) | ||||
Reissuance of treasury stock (shares) | 296 | ||||||
Reissuance of treasury stock | 38,447 | 25,710 | 12,737 | ||||
Equity-based compensation expense | 45,725 | 45,725 | |||||
Effect of conversion of convertible notes (shares) | 465 | ||||||
Effect of conversion of convertible notes | (3,987) | (3,987) | |||||
Reclassification from temporary to permanent equity | 4,249 | 4,249 | |||||
Net income | 514,510 | 514,510 | |||||
Other comprehensive income (loss) | 12,313 | 12,313 | |||||
Cash dividends declared | (163,510) | (163,510) | |||||
Ending balance (shares) at Dec. 29, 2019 | 142,462 | ||||||
Ending balance at Dec. 29, 2019 | $ 4,379,429 | $ 142 | $ 6,528,821 | $ (12,673,292) | $ (60,247) | $ 10,584,005 | |
[1] | Derived from audited financial statements |
Condensed Consolidated Statem_5
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | |
Statement of Stockholders' Equity [Abstract] | ||||
Dividends declared per share (usd per share) | $ 1.15 | $ 1.10 | $ 2.3 | $ 2.20 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 6 Months Ended |
Dec. 29, 2019 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of Lam Research Corporation (“Lam Research” or the “Company”) for the fiscal year ended June 30, 2019 , which are included in the Company’s Annual Report on Form 10-K as of and for the year ended June 30, 2019 (the “2019 Form 10-K”). The Company’s reports on Form 10-K, Form 10-Q and Form 8-K are available online at the Securities and Exchange Commission website on the Internet. The address of that site is www.sec.gov . The Company also posts its reports on Form 10-K, Form 10-Q and Form 8-K on its corporate website at http://investor.lamresearch.com . The content on any website referred to in this Form 10-Q is not a part of or incorporated by reference in this Form 10-Q unless expressly noted. The condensed consolidated financial statements include the accounts of Lam Research and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s reporting period is a 52/53-week fiscal year. The Company’s current fiscal year will end June 28, 2020 and includes 52 weeks. The quarters ended December 29, 2019 (the “ December 2019 quarter”) and December 23, 2018 (the “ December 2018 quarter”) included 13 weeks. Reclassifications: Certain prior fiscal year balances have been reclassified to conform to the current fiscal year presentation. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 6 Months Ended |
Dec. 29, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted In February 2016, the FASB issued ASU 2016-02, “Leases.” The amendment establishes the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. In January 2018 and July 2018 the FASB issued ASU 2018-01 and ASU 2018-11 amending the effects of ASU 2016-02, which in combination with ASU 2016-02 were codified as Accounting Standard Codification topic 842 (“ASC 842”). The Company adopted ASC 842 on the first day of the current fiscal year, July 1, 2019, under the modified-retrospective approach, applying the amendments to prospective reporting periods. Results for reporting periods beginning on or after July 1, 2019 are presented under ASC 842, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under ASC 840. The Company elected the package of practical expedients that allowed the Company not to reassess (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct lease costs for existing leases. The Company did not elect to use hindsight in connection with the adoption of ASC 842. The Company adopted ASC 842 by recording operating right-of-use assets of $110.8 million , net of deferred rent liabilities of $3.0 million that were reclassified to operating right-of-use assets, and operating lease liabilities of $113.8 million . The Company also recognized an adjustment of $3.0 million to retained earnings, net of tax; a reduction of $40.4 million to property and equipment, net; and a reduction of $43.8 million to finance leases ( $42.3 million of which was previously recognized in long-term debt and finance lease obligations, less current portion and the remaining was previously recognized in current portion of long-term debt and finance lease obligations) related to its de-recognition of its previously recorded build-to-suit arrangements. The adoption of the standard did not materially impact the Company’s Condensed Consolidated Statement of Operations and had no impact on cash flows. Updates Not Yet Effective In June 2016, the FASB released ASU 2016-13, “Financial Instruments – Credit Losses.” The amendment revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including but not limited to, available for sale debt securities and accounts receivable. The FASB issued a subsequent amendment to the initial guidance in November 2019 within ASU 2019-11. The Company is required to adopt these amendments starting in the first quarter of fiscal year 2021 using a modified-retrospective approach. Early adoption is permitted. The Company is still evaluating the impact of this standard, but does not expect the adoption to have a material impact on its Condensed Consolidated Financial Statements. In November 2018, the FASB issued ASU 2018-18, "Collaborative Arrangements (Topic 808).” The amendment clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under Topic 606 when the counterparty is a customer for a good or service that is a distinct unit of account. The amendment also precludes entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers. The Company is required to adopt this standard starting in the first quarter of fiscal year 2021. The standard should be applied retrospectively to the period when the Company initially adopted ASC 606. The Company is currently evaluating the impact of adoptions on its Condensed Consolidated Financial Statements. In April 2019, the FASB issued ASU 2019-04,”Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ”, that clarifies and improves areas of guidance related to the recently issued standards on credit losses (ASU 2016-13), hedging (ASU 2017-12), and recognition and measurement of financial instruments (ASU 2016-01). The amendments generally have the same effective dates as their related standards. If already adopted, the amendments of ASU 2016-01 and ASU 2016-13 are effective starting in the first quarter of fiscal year 2021. The amendments of ASU 2017-12 were effective in the first quarter of fiscal year 2020, and did not have a material impact on the Company’s Condensed Consolidated Financial Statements. The Company continues to evaluate the impact of ASU 2016-13 and will consider the amendments of ASU 2019-04 as part of that process. |
REVENUE
REVENUE | 6 Months Ended |
Dec. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Deferred Revenue Revenue of $125.9 million and $323.9 million included in deferred revenue at June 30, 2019 was recognized during the three and six months ended December 29, 2019 . The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of December 29, 2019 and when the Company expects to recognize the amounts as revenue: Less than 1 Year 1-3 Years More than 3 Years Total (In thousands) Deferred revenue $ 372,927 $ 37,834 (1) $ — $ 410,761 (1) This amount is reported in Deferred profit on the Company's Condensed Consolidated Balance Sheets as the customers can demand the liability to be performed at any time. Disaggregation of Revenue The Company operates in one reportable business segment: manufacturing and servicing of wafer processing semiconductor manufacturing equipment. The Company’s material operating segments qualify for aggregation due to their customer base and similarities in economic characteristics, nature of products and services, and processes for procurement, manufacturing, and distribution. The Company operates in seven geographic regions: United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan. For geographical reporting, revenue is attributed to the geographic location in which the customers’ facilities are located. The Company serves three primary markets: memory, foundry, and logic/integrated device manufacturing. The following table presents the Company’s revenues disaggregated by geographic region: Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, (In thousands) China $ 758,286 $ 361,782 $ 1,349,954 $ 955,613 Taiwan 680,871 425,533 1,072,363 705,583 Korea 463,178 631,502 914,661 1,011,272 United States 223,725 135,696 407,384 255,801 Japan 208,240 691,817 481,913 1,361,857 Southeast Asia 184,168 165,204 397,923 363,340 Europe 65,033 111,139 125,049 199,898 $ 2,583,501 $ 2,522,673 $ 4,749,247 $ 4,853,364 The following table presents the percentages of system revenues to each of the primary markets we serve: Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, Memory 52 % 79 % 58 % 78 % Foundry 36 % 13 % 31 % 15 % Logic/integrated device manufacturing 12 % 8 % 11 % 7 % |
EQUITY-BASED COMPENSATION PLANS
EQUITY-BASED COMPENSATION PLANS | 6 Months Ended |
Dec. 29, 2019 | |
Share-based Payment Arrangement [Abstract] | |
EQUITY-BASED COMPENSATION PLANS | EQUITY-BASED COMPENSATION PLANS The Lam Research Corporation 2015 Stock Incentive Plan, as amended (the “2015 Plan”), provides for the grant of non-qualified equity-based awards of the Company’s Common Stock to eligible employees and non-employee directors, including stock options, restricted stock units (“RSUs”), and market-based performance RSUs (“market-based PRSUs”). An option is a right to purchase Common Stock at a set price. An RSU award is an agreement to issue a set number of shares of Common Stock at the time of vesting. The Company’s market-based PRSUs contain both a market condition and a service condition. The Company’s options, RSU, and market-based PRSU awards typically vest over a period of three years . The Company also has an employee stock purchase plan that allows employees to purchase its Common Stock at a discount through payroll deductions. The Company recognized the following equity-based compensation expense (including expense related to the employee stock purchase plan) and related income tax benefit in the Condensed Consolidated Statements of Operations: Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, (in thousands) Equity-based compensation expense $ 45,725 $ 38,806 $ 88,630 $ 89,149 Income tax benefit recognized related to equity-based compensation expense $ 4,461 $ 5,763 $ 14,279 $ 13,867 |
OTHER EXPENSE, NET
OTHER EXPENSE, NET | 6 Months Ended |
Dec. 29, 2019 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE, NET | OTHER EXPENSE, NET The significant components of other expense, net, are as follows: Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, (in thousands) Interest income $ 25,454 $ 17,809 $ 57,238 $ 36,742 Interest expense (42,615 ) (19,784 ) (86,610 ) (41,572 ) Gains (losses) on deferred compensation plan-related assets, net 14,129 (22,374 ) 13,693 (17,160 ) Foreign exchange (losses) gains, net (2,287 ) 2,581 (2,816 ) 2,632 Other, net (8,605 ) (8,881 ) (8,157 ) (11,668 ) $ (13,924 ) $ (30,649 ) $ (26,652 ) $ (31,026 ) |
INCOME TAX EXPENSE
INCOME TAX EXPENSE | 6 Months Ended |
Dec. 29, 2019 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX EXPENSE | INCOME TAX EXPENSE The Company recorded an income tax expense of $158.1 million and $217.0 million for the three and six months ended December 29, 2019 , which yielded an effective tax rate of approximately 23.5% and 18.1% , respectively. The difference between the U.S. federal statutory tax rate of 21% and the Company’s effective tax rate for the three months ended December 29, 2019 was primarily due to income in lower tax jurisdictions, U.S. taxation on low-taxed foreign income, and a cumulative income tax benefit reversal due to a court ruling, as outlined below. In November 2019, the U.S. Court of Appeals for the Ninth Circuit (“Ninth Circuit”) rejected the en banc appeal petitioned by Altera Corporation (“Altera”) in July 2019. The Company has evaluated the impact of this decision and views the denial as an indication that Altera’s position of excluding stock-based compensation expense in an inter-company cost-sharing arrangement is unlikely to be sustained upon further litigation. As a result, the Company has reversed $74.5 million of net tax assets associated with stock-based compensation benefits related to previous years in the Condensed Consolidated Financial Statements in the three months ended December 29, 2019. In conclusion, the Company is no longer reflecting a net tax benefit within its financial statements related to excluding stock-based compensation from its inter-company cost-sharing arrangement. If, at a future date, Altera secured a favorable ruling from the Supreme Court, the Company would re-evaluate the decision to record an income tax benefit at that time. Please refer to Note 7, “Income Taxes,” to the Company’s Consolidated Financial Statements in Part II, Item 8 of its 2019 Form 10-K for additional information. The Internal Revenue Service (“IRS”) is examining the Company’s U.S. federal income tax return for the fiscal year ended June 24, 2018. As of December 29, 2019 , no significant adjustments have been proposed by the IRS. The Company is unable to make a reasonable estimate as to when cash settlements, if any, with the IRS will occur. The Company is in various stages of examinations in connection with all of its tax audits worldwide, and it is difficult to determine when these examinations will be settled. It is reasonably possible that over the next 12-month period the Company may experience an increase or decrease in its unrecognized tax benefits as a result of tax examinations or lapses of statute of limitations. The change in unrecognized tax benefits may range up to $10.0 million . |
NET INCOME PER SHARE
NET INCOME PER SHARE | 6 Months Ended |
Dec. 29, 2019 | |
Earnings Per Share [Abstract] | |
NET INCOME PER SHARE | NET INCOME PER SHARE Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the treasury stock method, for dilutive stock options, restricted stock units, convertible notes, and warrants. Dilutive shares outstanding include the effect of the convertible notes. Refer to Note 12 - Long-term Debt and Other Borrowings for additional information regarding the Company’s convertible notes. The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share. Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, (in thousands, except per share data) Numerator: Net income $ 514,510 $ 568,855 $ 980,299 $ 1,102,215 Denominator: Basic average shares outstanding 143,987 155,022 144,330 155,340 Effect of potential dilutive securities: Employee stock plans 1,528 1,435 1,359 1,487 Convertible notes 4,582 5,713 4,700 5,894 Warrants — — — 1,028 Diluted average shares outstanding 150,097 162,170 150,389 163,749 Net income per share - basic $ 3.57 $ 3.67 $ 6.79 $ 7.10 Net income per share - diluted $ 3.43 $ 3.51 $ 6.52 $ 6.73 For purposes of computing diluted net income per share, weighted-average common shares do not include potentially dilutive securities that are anti-dilutive under the treasury stock method. The following potentially dilutive securities were excluded: Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, (in thousands) Options and RSUs 3 227 4 890 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 6 Months Ended |
Dec. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The Company maintains an investment portfolio of various holdings, types, and maturities. The Company’s mutual funds, which are related to the Company’s obligations under the deferred compensation plan, are classified as trading securities. Investments classified as trading securities are recorded at fair value based upon quoted market prices. Differences between the cost and fair value of trading securities are recognized as other income (expense) in the Condensed Consolidated Statements of Operations. All of the Company’s other investments are classified as available-for-sale and consequently are recorded in the Condensed Consolidated Balance Sheets at fair value with unrealized gains or losses reported as a separate component of accumulated other comprehensive income (loss), net of tax. Fair Value The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value. The level of an asset or liability in the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities with sufficient volume and frequency of transactions. Level 2: Valuations based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or model-derived valuations techniques for which all significant inputs are observable in the market or can be corroborated by observable market data, for substantially the full term of the assets or liabilities. Level 3: Valuations based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities and based on non-binding, broker-provided price quotes and may not have been corroborated by observable market data. The Company’s primary financial instruments include its cash, cash equivalents, investments, restricted cash and investments, long-term investments, accounts receivable, accounts payable, long-term debt and leases, and foreign currency related derivative instruments. The estimated fair value of cash, accounts receivable, and accounts payable approximates their carrying value due to the short period of time to their maturities. The estimated fair values of lease obligations approximate their carrying value as the substantial majority of these obligations have interest rates that adjust to market rates on a periodic basis. Refer to Note 12 - Long-Term Debt and Other Borrowings for additional information regarding the fair value of the Company’s senior notes and convertible senior notes. The following table sets forth the Company’s cash, cash equivalents, investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of December 29, 2019 , and June 30, 2019 : December 29, 2019 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 580,318 $ — $ — $ 580,318 $ 576,439 $ — $ 3,879 $ — Time deposit 1,606,528 — — 1,606,528 1,356,500 — 250,028 — Level 1: Money market funds 977,274 — — 977,274 977,274 — — — U.S. Treasury and agencies 476,406 116 (54 ) 476,468 — 476,468 — — Mutual funds 75,244 5,792 (452 ) 80,584 — — — 80,584 Level 1 Total 1,528,924 5,908 (506 ) 1,534,326 977,274 476,468 — 80,584 Level 2: Government-sponsored enterprises 9,819 — (3 ) 9,816 2,799 7,017 — — Foreign government bonds 30,507 2 (6 ) 30,503 — 30,503 — — Corporate notes and bonds 1,225,526 742 (444 ) 1,225,824 122,875 1,102,949 — — Mortgage backed securities — residential 4,172 8 — 4,180 — 4,180 — — Mortgage backed securities — commercial 26,751 34 (35 ) 26,750 — 26,750 — — Level 2 Total 1,296,775 786 (488 ) 1,297,073 125,674 1,171,399 — — Total $ 5,012,545 $ 6,694 $ (994 ) $ 5,018,245 $ 3,035,887 $ 1,647,867 $ 253,907 $ 80,584 June 30, 2019 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 467,460 $ — $ — $ 467,460 $ 462,310 $ — $ 5,150 $ — Time deposit 1,563,686 — — 1,563,686 1,313,659 — 250,027 — Level 1: Money market funds 1,644,659 — — 1,644,659 1,644,659 — — — U.S. Treasury and agencies 465,655 283 (24 ) 465,914 86,981 378,933 — — Mutual funds 76,961 1,063 (283 ) 77,741 — — — 77,741 Level 1 Total 2,187,275 1,346 (307 ) 2,188,314 1,731,640 378,933 — 77,741 Level 2: Government-sponsored enterprises 16,005 5 (41 ) 15,969 — 15,969 — — Foreign government bonds 24,408 35 — 24,443 — 24,443 — — Corporate notes and bonds 1,466,167 2,310 (99 ) 1,468,378 150,610 1,317,768 — — Mortgage backed securities — residential 6,148 — (4 ) 6,144 — 6,144 — — Mortgage backed securities — commercial 29,587 140 — 29,727 — 29,727 — — Level 2 Total 1,542,315 2,490 (144 ) 1,544,661 150,610 1,394,051 — — Total $ 5,760,736 $ 3,836 $ (451 ) $ 5,764,121 $ 3,658,219 $ 1,772,984 $ 255,177 $ 77,741 The Company accounts for its investment portfolio at fair value. Realized gains (losses) for investment sales are specifically identified. Management assesses the fair value of investments in debt securities that are not actively traded through consideration of interest rates and their impact on the present value of the cash flows to be received from the investments. The Company also considers whether changes in the credit ratings of the issuer could impact the assessment of fair value. Additionally, the Company also considers factors such as the Company’s intent to sell the security and whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. The Company did not recognize any losses on investments due to other-than-temporary impairments during the three and six months ended December 29, 2019 or December 23, 2018 . Additionally, gross realized gains/(losses) from sales of investments were insignificant in the three and six months ended December 29, 2019 and December 23, 2018 . The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions: December 29, 2019 Unrealized Losses Unrealized Losses Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) U.S. Treasury and agencies $ 325,502 $ (54 ) $ — $ — $ 325,502 $ (54 ) Mutual funds 2,925 (195 ) 7,955 (257 ) 10,880 (452 ) Government-sponsored enterprises — — 6,995 (3 ) 6,995 (3 ) Foreign government bonds 29,420 (6 ) — — 29,420 (6 ) Corporate notes and bonds 703,002 (441 ) 6,780 (3 ) 709,782 (444 ) Mortgage backed securities — commercial 16,805 (35 ) — — 16,805 (35 ) $ 1,077,654 $ (731 ) $ 21,730 $ (263 ) $ 1,099,384 $ (994 ) The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities are as follows as of December 29, 2019 : Cost Estimated (in thousands) Due in one year or less $ 3,889,431 $ 3,889,377 Due after one year through five years 444,558 444,950 Due in more than five years 22,994 23,016 $ 4,356,983 $ 4,357,343 The Company has the ability, if necessary, to liquidate its investments in order to meet the Company’s liquidity needs in the next 12 months. Accordingly, those investments with contractual maturities greater than 12 months from the date of purchase nonetheless are classified as short-term on the accompanying Condensed Consolidated Balance Sheets. Derivative Instruments and Hedging The Company carries derivative financial instruments (“derivatives”) on its Condensed Consolidated Balance Sheets at their fair values. The Company enters into foreign currency forward contracts and foreign currency options with financial institutions with the primary objective of reducing volatility of earnings and cash flows related to foreign currency exchange rate fluctuations. In addition, the Company enters into interest rate swap arrangements to manage interest rate risk. The counterparties to these derivatives are large global financial institutions that the Company believes are creditworthy, and therefore, it does not consider the risk of counterparty nonperformance to be material. Cash Flow Hedges The Company’s financial position is routinely subjected to market risk associated with foreign currency exchange rate fluctuations on non-U.S. dollar transactions or cash flows, primarily from Japanese yen-denominated revenues and euro- denominated and Korean won-denominated expenses. The Company’s policy is to mitigate the foreign exchange risk arising from the fluctuations in the value of these non-U.S. dollar denominated transactions or cash flows through a foreign currency cash flow hedging program, using forward contracts and foreign currency options that generally expire within 12 months and no later than 24 months . These hedge contracts are designated as cash flow hedges and are carried on the Company’s balance sheet at fair value with the effective portion of the contracts’ gains or losses included in accumulated other comprehensive income (loss) and subsequently recognized in revenue/expense in the same period the hedged items are recognized. In addition, the Company has entered into interest rate swap agreements to hedge against the variability of cash flows due to changes in certain benchmark interest rates on fixed rate debt. These instruments are designated as cash flow hedges at inception and are settled in conjunction with the issuance of debt. The effective portion of the contracts’ gains or losses is included in accumulated other comprehensive income (loss) and is amortized into income as the hedged item impacts earnings. During the three and six months ended December 29, 2019 , the Company entered into a series of these interest rate swap agreements with a total notional value of $200 million . As of December 29, 2019 , the Company had a net gain of $1.9 million accumulated in other comprehensive income, net of tax, related to these interest rate swap agreements. Additionally, in January 2020, the Company entered into an additional series of interest rate swap agreements with a total notional value of $200 million . At inception and at each quarter-end, hedges are tested prospectively and retrospectively for effectiveness using regression analysis. Changes in the fair value of foreign exchange contracts due to changes in time value are included in the assessment of effectiveness. To qualify for hedge accounting, the hedge relationship must meet criteria relating to both the derivative instrument and the hedged item. These criteria include identification of the hedging instrument, the hedged item, the nature of the risk being hedged and how the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value or cash flows will be measured. There were no material gains or losses during the three and six months ended December 29, 2019 and December 23, 2018 associated with forecasted transactions that failed to occur. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be tested to demonstrate an expectation of providing highly effective offsetting changes to future cash flows on hedged transactions. When derivative instruments are designated and qualify as effective cash flow hedges, the Company recognizes effective changes in the fair value of the hedging instrument within accumulated other comprehensive income (loss) until the hedged exposure is realized. Consequently, the Company’s results of operations are not subject to fluctuation as a result of changes in the fair value of the derivative instruments. If hedges are not highly effective or if the Company does not believe that the underlying hedged forecasted transactions will occur, the Company may not be able to account for its derivative instruments as cash flow hedges. If this were to occur, future changes in the fair values of the Company’s derivative instruments would be recognized in earnings. Additionally, related amounts previously recorded in other comprehensive income would be reclassified to income immediately. As of December 29, 2019 , the Company had a net gain of $2.0 million accumulated in other comprehensive income, net of tax, related to foreign exchange cash flow hedges which it expects to reclassify from other comprehensive income into earnings over the next 12 months . Additionally, as of December 29, 2019 , the Company had a net loss of $2.1 million accumulated in other comprehensive income, net of tax, related to interest rate contracts which it expects to reclassify from other comprehensive income into earnings over the next 5.2 years . Fair Value Hedges The Company has interest rate contracts whereby the Company receives fixed rates and pays variable rates based on certain benchmark interest rates, resulting in a net increase or decrease to interest expense, a component of other expense, net in our Condensed Consolidated Statement of Operations. These interest rate contracts are designated as fair value hedges and hedge against changes in the fair value of our debt portfolio. The Company concluded that these interest rate contracts meet the criteria necessary to qualify for the short-cut method of hedge accounting, and as such an assumption is made that the change in the fair value of the hedged debt, due to changes in the benchmark rate, exactly offsets the change in the fair value of the interest rate swap. Therefore, the derivative is considered to be effective at achieving offsetting changes in the fair value of the hedged liability, and no ineffectiveness is recognized. During the quarter ended September 29, 2019, the Company terminated and consequently discontinued the hedging relationship of selected interest rate contracts; refer to Note 12 - Long-Term Debt and Other Borrowings for additional information regarding the accumulated fair value adjustment and the related amortization. Balance Sheet Hedges The Company also enters into foreign currency forward contracts to hedge fluctuations associated with foreign currency denominated monetary assets and liabilities, primarily cash, third-party accounts receivable, accounts payable, and intercompany receivables and payables. These forward contracts are not designated for hedge accounting treatment. Therefore, the change in fair value of these derivatives is recorded as a component of other income (expense) and offsets the change in fair value of the foreign currency denominated assets and liabilities, which are also recorded in other income (expense). As of December 29, 2019 , the Company had the following outstanding foreign currency contracts that were entered into under its cash flow and balance sheet hedge programs: Notional Value Derivatives Designated as Derivatives Not Designated (in thousands) Foreign currency forward contracts Buy Contracts Sell Contracts Buy Contracts Sell Contracts Japanese yen $ — $ 100,830 $ 61,301 $ — Euro 61,007 — 42,371 — Korean won 15,401 — — 4,294 British pound sterling — — 48,439 — Taiwan dollar — — 33,328 — Chinese renminbi — — 31,683 — Swiss franc — — 22,493 — Singapore dollar — — 21,409 — Indian rupee — — 7,855 — $ 76,408 $ 100,830 $ 268,879 $ 4,294 The fair value of derivative instruments in the Company’s Condensed Consolidated Balance Sheet as of December 29, 2019 , and June 30, 2019 were as follows: December 29, 2019 June 30, 2019 Fair Value of Derivative Instruments (Level 2) Fair Value of Derivative Instruments (Level 2) Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value (in thousands) Derivatives designated as hedging instruments: Foreign exchange contracts Prepaid expense $ 2,437 Accrued expenses and other current liabilities $ 16 Prepaid expense $ 119 Accrued expenses and other current liabilities $ 2,756 Interest rate contracts, short-term — Accrued expenses and other current liabilities 2,746 — Accrued expenses and other current liabilities 5,149 Interest rate contracts, long-term Other assets 3,605 — Other assets 1,537 — Derivatives not designated as hedging instruments: Foreign exchange contracts Prepaid expense 21 Accrued expenses and other current liabilities 200 Prepaid expense 1,249 Accrued expenses and other current liabilities 748 Total Derivatives $ 6,063 $ 2,962 $ 2,905 $ 8,653 Under the master netting agreements with the respective counterparties to the Company’s derivative contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. However, the Company has elected to present the derivative assets and derivative liabilities on a gross basis on its balance sheet. As of December 29, 2019 , the potential effect of rights of offset associated with the above foreign exchange and interest rate contracts would be an offset to assets and liabilities by $2.3 million , resulting in a net derivative asset of $3.8 million and net derivative liability of $0.7 million . As of June 30, 2019 , the potential effect of rights of offset associated with the above foreign exchange and interest rate contracts would be an offset to both assets and liabilities by $2.4 million , resulting in a net derivative asset of $0.5 million and a net derivative liability of $6.2 million . The Company is not required to pledge, nor is the Company entitled to receive, cash collateral for these derivative transactions. The effect of derivative instruments designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”) was as follows: Three Months Ended Six Months Ended December 29, 2019 December 29, 2019 Location of Gain Loss Gain (Loss) Loss Derivatives in Cash Flow Hedging Relationships (in thousands) Foreign Exchange Contracts Revenue $ 2,264 $ (172 ) $ 3,198 $ (506 ) Foreign Exchange Contracts Cost of goods sold 196 (1,090 ) (1,067 ) (1,900 ) Foreign Exchange Contracts Selling, general, and administrative 130 (417 ) (465 ) (893 ) Interest Rate Contracts Other expense, net 2,394 (35 ) 2,394 (70 ) $ 4,984 $ (1,714 ) $ 4,060 $ (3,369 ) Three Months Ended Six Months Ended December 23, 2018 December 23, 2018 Location of Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Derivatives in Cash Flow Hedging Relationships (in thousands) Foreign Exchange Contracts Revenue $ 8,229 $ 7,813 $ 16,670 $ 8,487 Foreign Exchange Contracts Cost of goods sold (1,965 ) (851 ) (2,089 ) (2,408 ) Foreign Exchange Contracts Selling, general, and administrative (674 ) (651 ) (878 ) (1,178 ) Interest Rate Contracts Other expense, net — (33 ) — (66 ) $ 5,590 $ 6,278 $ 13,703 $ 4,835 The effect of derivative instruments not designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations was as follows: Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, Derivatives Not Designated as Hedging Instruments: Location Gain Gain Loss Gain (in thousands) Foreign Exchange Contracts Other income $ 3,571 $ 301 $ (1,930 ) $ 10,889 The following table presents the effect of the fair value cash flow hedge accounting on the Statement of Financial Performance as well as presents the location and amount of gain/(loss) recognized in Income on fair value and cash flow hedging relationships: Three Months Ended Six Months Ended December 29, 2019 December 29, 2019 Revenue Cost of Goods Sold Selling, General and Admini-strative Other Income (Expense) Revenue Cost of Goods Sold Selling, General and Admini-strative Other Income (Expense) (in thousands) Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded: $ 2,583,501 $1,403,857 $ 174,272 $ (13,924 ) $ 4,749,247 $ 2,587,893 $ 331,700 $ (26,652 ) The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20: Interest contracts: Hedged items $ — $ — $ — $ 2,342 $ — $ — $ — $ (5,092 ) Derivatives designated as hedging instruments $ — $ — $ — $ (2,342 ) $ — $ — $ — $ 5,092 Gain or (loss) on cash flow hedging relationships in Subtopic 815-20: Foreign exchange contracts: Amount of loss reclassified from accumulated other comprehensive income into income $ (172 ) $ (1,090 ) $ (417 ) $ — $ (506 ) $ (1,900 ) $ (893 ) $ — Interest rate contracts: Amount of loss reclassified from accumulated other comprehensive income into income $ — $ — $ — $ (35 ) $ — $ — $ — $ (70 ) Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, investments, restricted cash and investments, trade accounts receivable, and derivative financial instruments used in hedging activities. Cash is placed on deposit at large global financial institutions. Such deposits may be in excess of insured limits. Management believes that the financial institutions that hold the Company’s cash are creditworthy and, accordingly, minimal credit risk exists with respect to these balances. The Company’s overall portfolio of available-for-sale securities must maintain an average minimum rating of “AA-” or “Aa3” as rated by Standard and Poor’s, Fitch Ratings, or Moody’s Investor Services. To ensure diversification and minimize concentration, the Company’s policy limits the amount of credit exposure with any one financial institution or commercial issuer. The Company is exposed to credit losses in the event of nonperformance by counterparties on foreign currency and interest rate hedge contracts that are used to mitigate the effect of exchange rate and interest rate fluctuations, and on contracts related to structured share repurchase arrangements. These counterparties are large global financial institutions and, to date, no such counterparty has failed to meet its financial obligations to the Company. Credit risk evaluations, including trade references, bank references, and Dun & Bradstreet ratings, are performed on all new customers and the Company monitors its customers’ financial condition and payment performance. In general, the Company does not require collateral on sales. |
INVENTORIES
INVENTORIES | 6 Months Ended |
Dec. 29, 2019 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. System shipments to customers in Japan, for which title does not transfer until customer acceptance, are classified as finished goods inventory and carried at cost until title transfers. Inventories consist of the following: December 29, June 30, (in thousands) Raw materials $ 980,751 $ 994,738 Work-in-process 200,626 174,219 Finished goods 347,243 371,183 $ 1,528,620 $ 1,540,140 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 6 Months Ended |
Dec. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The balance of goodwill is approximately $1.5 billion as of December 29, 2019 and June 30, 2019 , respectively. As of December 29, 2019 , $61.1 million of the goodwill balance is tax deductible and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law. Intangible Assets The following table provides the Company’s intangible assets: December 29, 2019 June 30, 2019 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 630,206 $ (508,199 ) $ 122,007 $ 630,165 $ (483,204 ) $ 146,961 Existing technology 669,488 (651,379 ) 18,109 669,399 (647,837 ) 21,562 Patents and other intangible assets 135,048 (82,048 ) 53,000 126,235 (77,808 ) 48,427 Total intangible assets $ 1,434,742 $ (1,241,626 ) $ 193,116 $ 1,425,799 $ (1,208,849 ) $ 216,950 The Company recognized $16.5 million and $36.3 million in intangible asset amortization expense during the three months ended December 29, 2019 and December 23, 2018 , respectively. The Company recognized $32.7 million and $72.7 million in intangible asset amortization expense during the six months ended December 29, 2019 and December 23, 2018 , respectively. The estimated future amortization expense of intangible assets as of December 29, 2019 , is reflected in the table below. The table excludes $13.5 million of capitalized costs for intangible assets that have not been placed into service. Fiscal Year Amount (in thousands) 2020 (remaining 6 months) $ 32,742 2021 63,431 2022 59,093 2023 14,025 2024 7,324 Thereafter 2,962 $ 179,577 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 6 Months Ended |
Dec. 29, 2019 | |
Payables and Accruals [Abstract] | |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following: December 29, June 30, (in thousands) Accrued compensation $ 390,033 $ 336,090 Warranty reserves 118,193 127,932 Income and other taxes payable 134,615 49,926 Dividend payable 163,510 158,868 Other 307,662 273,825 $ 1,114,013 $ 946,641 |
LONG-TERM DEBT AND OTHER BORROW
LONG-TERM DEBT AND OTHER BORROWINGS | 6 Months Ended |
Dec. 29, 2019 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND OTHER BORROWINGS | LONG-TERM DEBT AND OTHER BORROWINGS As of December 29, 2019 , and June 30, 2019 , the Company’s outstanding debt consisted of the following: December 29, 2019 June 30, 2019 Amount Effective Interest Rate Amount Effective Interest Rate Fixed-rate 2.75% Senior Notes Due March 15, 2020 ("2020 Notes") $ 500,000 2.88 % $ 500,000 2.88 % Fixed-rate 2.80% Senior Notes Due June 15, 2021 ("2021 Notes") 800,000 2.95 % 800,000 2.95 % Fixed-rate 3.80% Senior Notes Due March 15, 2025 ("2025 Notes") 500,000 3.87 % 500,000 3.87 % Fixed-rate 3.75% Senior Notes Due March 15, 2026 ("2026 Notes") 750,000 3.86 % 750,000 3.86 % Fixed-rate 4.00% Senior Notes Due March 15, 2029 ("2029 Notes") 1,000,000 4.09 % 1,000,000 4.09 % Fixed-rate 2.625% Convertible Notes Due May 15, 2041 ("2041 Notes") 167,091 (1) 4.28 % 212,349 (1) 4.28 % Fixed-rate 4.875% Senior Notes Due March 15, 2049 ("2049 Notes") 750,000 4.93 % 750,000 4.93 % Total debt outstanding, at par 4,467,091 4,512,349 Unamortized discount (60,332 ) (73,191 ) Fair value adjustment - interest rate contracts 1,300 (2) (3,612 ) Unamortized bond issuance costs (5,096 ) (5,535 ) Total debt outstanding, at carrying value $ 4,402,963 $ 4,430,011 Reported as: Current portion of long-term debt, and commercial paper $ 628,614 $ 662,308 Long-term debt 3,774,349 3,767,703 Total debt outstanding, at carrying value $ 4,402,963 $ 4,430,011 ____________________________ (1) As of the report date, these notes were convertible at the option of the bondholder. This is a result of the following condition being met: the market value of the Company’s Common Stock was greater than 130% of the convertible notes conversion price for 20 or more of the 30 consecutive trading days preceding the quarter-end. As a result, the 2041 Notes were classified in current liabilities and a portion of the equity component, associated with the convertible notes representing the unamortized discount, was classified in temporary equity on the Company’s Consolidated Balance Sheets. Upon closure of the conversion period, the notes not converted will be reclassified back into noncurrent liabilities and the temporary equity will be reclassified into permanent equity. (2) This amount includes a cumulative fair market gain of $2.8 million for discontinued hedging relationships, net of an immaterial amount of amortization for the three and six months ended December 29, 2019 . Convertible Senior Notes In June 2012, with the acquisition of Novellus Systems, Inc., the Company assumed $700 million in aggregate principal amount of 2.625% Convertible Senior Notes due May 15, 2041 (the “2041 Notes”). The Company pays cash interest at an annual rate of 2.625% , on a semi-annual basis on May 15 and November 15 of each year. The 2041 Notes also have a contingent interest payment provision that may require the Company to pay additional interest, up to 0.60% per year, based on certain thresholds, beginning with the semi-annual interest payment on May 15, 2021, and upon the occurrence of certain events, as outlined in the indenture governing the 2041 Notes. The Company separately accounts for the liability and equity components of the 2041 Notes. The initial debt components of the 2041 Notes were valued based on the present value of the future cash flows using the Company’s borrowing rate at the date of the issuance or assumption for similar debt instruments without the conversion feature, which equals the effective interest rate on the liability component disclosed in the table below, respectively. The equity component was initially valued equal to the principal value of the notes, less the present value of the future cash flows using the Company’s borrowing rate at the date of the issuance or assumption for similar debt instruments without a conversion feature, which equated to the initial debt discount. The 2041 Notes may be redeemed on or after May 21, 2021 at a price equal to outstanding principal plus accrued and unpaid interest if the last reported sales price of common shares has been equal to or more than 150% of the then applicable conversion price for at least 20 trading days during the 30 consecutive trading days prior to the redemption notice date. Under certain circumstances, the 2041 Notes may be converted into shares of the Company’s Common Stock. The number of shares each debenture is convertible into is based on conversion rates, disclosed in the table below. The principal value of the 2041 Note conversions in the three and six months ended December 29, 2019 , was approximately $17.2 million and $45.3 million , respectively. During the quarter ended December 29, 2019 and in the subsequent period through February 3, 2020, the Company received notice of conversion for an additional $116.6 million principal value of 2041 Notes, which will settle in the quarter ending March 29, 2020. Selected additional information regarding the 2041 Notes outstanding as of December 29, 2019 , and June 30, 2019 , is as follows: December 29, June 30, 2041 Notes 2041 Notes (in thousands, except years, percentages, conversion rate, and conversion price) Carrying amount of permanent equity component, net of tax $ 161,271 $ 160,604 Carrying amount of temporary equity component, net of tax $ 38,304 $ 49,439 Remaining amortization period (years) 21.4 21.9 Fair Value of Notes (Level 2) $ 1,532,188 Conversion rate (shares of common stock per $1,000 principal amount of notes) 31.2089 Conversion price (per share of common stock) $ 32.04 If-converted value in excess of par value $ 1,364,475 Estimated share dilution using average quarterly stock price $264.15 per share 4,582 Senior Notes On March 4, 2019, the company completed a public offering of $750 million aggregate principal amount of the Company’s Senior Notes due March 15, 2026 (the “2026 Notes”), $1.0 billion aggregate principal amount of the Company’s Senior Notes due March 15, 2029 (the “2029 Notes”), and $750 million aggregate principal amount of the Company’s Senior Notes due March 15, 2049 (the “2049 Notes”). The Company pays interest at an annual rate of 3.75% , 4.00% , and 4.875% , on the 2026, 2029, and 2049 Notes, respectively, on a semi-annual basis on March 15 and September 15 of each year. On March 12, 2015, the Company completed a public offering of $500 million aggregate principal amount of the Company’s Senior Notes due March 15, 2020 (the “2020 Notes”) and $500 million aggregate principal amount of the Company’s Senior Notes due March 15, 2025 (the “2025 Notes”). The Company pays interest at an annual rate of 2.75% and 3.80% on the 2020 Notes and 2025 Notes, respectively, on a semi-annual basis on March 15 and September 15 of each year. During the year ended June 26, 2016, the Company entered into a series of interest rate contracts hedging the fair value of a portion of the 2025 Notes par value, whereby the Company receives a fixed rate and pays a variable rate based on a certain benchmark interest rate. Refer to Note 8 - Financial Instruments for additional information regarding these interest rate contracts. On June 7, 2016, the Company completed a public offering of $800 million aggregate principal amount of Senior Notes due June 2021 (the “2021 Notes”). The Company pays interest at an annual rate of 2.80% on the 2021 Notes on a semi-annual basis on June 15 and December 15 of each year. The Company may redeem the 2020, 2021, 2025, 2026, 2029 and 2049 Notes (collectively the “Senior Notes”) at a redemption price equal to 100% of the principal amount of such series (“par”), plus a “make whole” premium as described in the indenture in respect to the Senior Notes and accrued and unpaid interest before February 15, 2020 , for the 2020 Notes, before May 15, 2021 for the 2021 Notes, before December 15, 2024 for the 2025 Notes, before January 15, 2026 for the 2026 Notes, before December 15, 2028 for the 2029 Notes, and before September 15, 2048 for the 2049 Notes. In addition, upon the occurrence of certain events, as described in the indenture, the Company will be required to make an offer to repurchase the Senior Notes at a price equal to 101% of the principal amount of the respective note, plus accrued and unpaid interest. Selected additional information regarding the Senior Notes outstanding as of December 29, 2019 , is as follows: Remaining Amortization period Fair Value of Notes (Level 2) (years) (in thousands) 2020 Notes 0.2 $ 500,410 2021 Notes 1.5 $ 809,552 2025 Notes 5.2 $ 536,190 2026 Notes 6.2 $ 805,748 2029 Notes 9.2 $ 1,104,060 2049 Notes 29.2 $ 947,325 Commercial Paper Program On November 13, 2017, the Company established a commercial paper program (“the CP Program”) under which the Company may issue unsecured commercial paper notes on a private placement basis up to a maximum aggregate principal amount of $1.25 billion . The net proceeds from the commercial paper program will be used for general corporate purposes, including repurchases of the Company’s Common Stock from time to time under the Company’s stock repurchase program. Amounts available under the CP Program may be re-borrowed. The CP Program is backstopped by the Company’s Revolving Credit Arrangement. As of December 29, 2019 and June 30, 2019, the Company had no outstanding borrowings under the CP Program. Revolving Credit Facility On March 12, 2014, the Company established an unsecured Credit Agreement. This agreement was amended on November 10, 2015 (the “Amended and Restated Credit Agreement”), October 13, 2017 (the “2nd Amendment”), and February 25, 2019 (the “3rd Amendment”). Under the Amended and Restated Credit Agreement (as amended by the 2nd and 3rd Amendment), the Company has a revolving credit facility of $1.25 billion with a syndicate of lenders with an expansion option that will allow the Company, subject to certain requirements, to request an increase in the facility of up to an additional $600.0 million , for a potential total commitment of $1.85 billion . The facility matures on October 13, 2022. Interest on amounts borrowed under the credit facility is, at the Company’s option, based on (1) a base rate, defined as the greatest of (a) prime rate, (b) Federal Funds rate plus 0.5% , or (c) one-month LIBOR plus 1.0% , plus a spread of 0.0% to 0.5% , or (2) LIBOR multiplied by the statutory rate, plus a spread of 0.9% to 1.50% , in each case as the applicable spread is determined based on the rating of the Company’s non-credit enhanced, senior unsecured long-term debt. Principal and any accrued and unpaid interest is due and payable upon maturity. Additionally, the Company will pay the lenders a quarterly commitment fee that varies based on the Company’s credit rating. The Amended and Restated Credit Agreement contains affirmative covenants, negative covenants, financial covenants and events of default. As of December 29, 2019 , the Company had no borrowings outstanding under the credit facility and was in compliance with all financial covenants. Interest Cost The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Senior Notes, convertible notes, the term loan agreement, commercial paper, and the revolving credit facility during the three and six months ended December 29, 2019 and December 23, 2018 . Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, (in thousands) Contractual interest coupon $ 40,665 $ 16,550 $ 81,787 $ 33,977 Amortization of interest discount 1,158 887 2,393 1,787 Amortization of issuance costs 416 329 830 658 Effect of interest rate contracts, net 155 777 830 1,530 Total interest cost recognized $ 42,394 $ 18,543 $ 85,840 $ 37,952 |
LEASES
LEASES | 6 Months Ended |
Dec. 29, 2019 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases certain office spaces, manufacturing and warehouse spaces, equipment, and vehicles. On July 1, 2019 the Company adopted ASC 842. Refer to Note 2 - Recent Accounting Pronouncements for additional information regarding the adoption. While the majority of the Company’s lease arrangements are operating leases, the Company has certain leases that qualify as finance leases. Lease accounting policy Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company includes renewals and terminations in the calculation of the right-of-use asset and liability when the provision is reasonably certain to be exercised. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future lease payments when the rate implicit in the lease is unknown. The Company has elected the following practical expedients and accounting policy elections for accounting under ASC 842: (i) leases with an initial lease term of 12 months or less are not recorded on the balance sheet; and (ii) lease and non-lease components of a contract are accounted for as a single lease component. Lease details The components of lease expense were as follows: Three Months Ended Six Months Ended December 29, December 29, (in thousands) Financing lease cost: Amortization of right-of-use assets $ 891 $ 1,819 Interest on lease liabilities 115 265 Total finance lease cost $ 1,006 $ 2,084 Operating lease cost $ 10,421 $ 21,185 Variable lease cost 22,071 41,018 Variable lease payments are expensed as incurred and are not included within the right of use asset and lease liability calculation. Variable lease payments primarily include costs associated with the Company’s third party logistics arrangements that contain one or more embedded leases. Variable lease costs will fluctuate based on factory output and material receipt volumes. Short-term rental expense, for agreements less than one year in duration, were immaterial for the three and six months ended December 29, 2019 . Supplemental cash flow information related to leases was as follows: Six Months Ended December 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 19,384 Financing cash flows paid for principal portion of finance leases 1,647 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 11,968 Finance leases 1,357 Supplemental balance sheet information related to leases were as follows: December 29, 2019 (in thousands) Operating leases Other assets $ 101,605 Accrued expenses and other current liabilities $ 36,480 Other long-term liabilities 70,442 Total operating lease liabilities $ 106,922 Finance Leases Property and Equipment, net $ 18,684 Current portion of long-term debt and lease liabilities $ 3,677 Long-term debt and lease liabilities 11,719 Total finance lease liabilities $ 15,396 December 29, 2019 Weighted-Average Remaining Lease Term Weighted-Average Discount Rate (in years) Operating leases 4.4 2.57 % Finance leases 4.3 2.82 % As of December 29, 2019 , the maturities of lease liabilities are as follows: Fiscal Year Operating Leases Finance Leases (in thousands) 2020 (remaining 6 months) $ 19,237 $ 2,022 2021 34,265 3,548 2022 18,256 6,208 2023 11,659 1,200 2024 8,591 841 Thereafter 20,809 2,920 Total lease payments $ 112,817 $ 16,739 Less imputed interest (5,895 ) (1,343 ) Total $ 106,922 $ 15,396 Selected Operating Leases and Related Guarantees The Company leases the majority of its administrative, research and development and manufacturing facilities, regional sales/service offices, and certain equipment under non-cancelable operating leases. Certain of the Company’s facility leases for buildings located at its Fremont, California headquarters, Tualatin, Oregon campus, and certain other facility leases provide the Company with options to extend the leases for additional periods or to purchase the facilities. Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation. The Company has operating leases regarding certain improved properties in Fremont and Livermore, California (the “California Operating Leases”). The Company is required to maintain cash collateral in an aggregate of approximately $250.0 million in separate interest-bearing accounts as security for the Company’s obligations. These amounts are recorded with other restricted cash and investments in the Company’s Condensed Consolidated Balance Sheet as of December 29, 2019 . During the term of the California Operating Leases and when the terms of the California Operating Leases expire, the property subject to the California Operating Leases may be re-marketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate guarantee made by the Company under the California Operating Leases is generally no more than $220.4 million ; however, under certain default circumstances, the guarantee with regard to the California Operating Lease may be 100% of the lessor’s aggregate investment in the applicable property, which in no case will exceed $250.0 million , in the aggregate. |
LEASES | LEASES The Company leases certain office spaces, manufacturing and warehouse spaces, equipment, and vehicles. On July 1, 2019 the Company adopted ASC 842. Refer to Note 2 - Recent Accounting Pronouncements for additional information regarding the adoption. While the majority of the Company’s lease arrangements are operating leases, the Company has certain leases that qualify as finance leases. Lease accounting policy Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company includes renewals and terminations in the calculation of the right-of-use asset and liability when the provision is reasonably certain to be exercised. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future lease payments when the rate implicit in the lease is unknown. The Company has elected the following practical expedients and accounting policy elections for accounting under ASC 842: (i) leases with an initial lease term of 12 months or less are not recorded on the balance sheet; and (ii) lease and non-lease components of a contract are accounted for as a single lease component. Lease details The components of lease expense were as follows: Three Months Ended Six Months Ended December 29, December 29, (in thousands) Financing lease cost: Amortization of right-of-use assets $ 891 $ 1,819 Interest on lease liabilities 115 265 Total finance lease cost $ 1,006 $ 2,084 Operating lease cost $ 10,421 $ 21,185 Variable lease cost 22,071 41,018 Variable lease payments are expensed as incurred and are not included within the right of use asset and lease liability calculation. Variable lease payments primarily include costs associated with the Company’s third party logistics arrangements that contain one or more embedded leases. Variable lease costs will fluctuate based on factory output and material receipt volumes. Short-term rental expense, for agreements less than one year in duration, were immaterial for the three and six months ended December 29, 2019 . Supplemental cash flow information related to leases was as follows: Six Months Ended December 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 19,384 Financing cash flows paid for principal portion of finance leases 1,647 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 11,968 Finance leases 1,357 Supplemental balance sheet information related to leases were as follows: December 29, 2019 (in thousands) Operating leases Other assets $ 101,605 Accrued expenses and other current liabilities $ 36,480 Other long-term liabilities 70,442 Total operating lease liabilities $ 106,922 Finance Leases Property and Equipment, net $ 18,684 Current portion of long-term debt and lease liabilities $ 3,677 Long-term debt and lease liabilities 11,719 Total finance lease liabilities $ 15,396 December 29, 2019 Weighted-Average Remaining Lease Term Weighted-Average Discount Rate (in years) Operating leases 4.4 2.57 % Finance leases 4.3 2.82 % As of December 29, 2019 , the maturities of lease liabilities are as follows: Fiscal Year Operating Leases Finance Leases (in thousands) 2020 (remaining 6 months) $ 19,237 $ 2,022 2021 34,265 3,548 2022 18,256 6,208 2023 11,659 1,200 2024 8,591 841 Thereafter 20,809 2,920 Total lease payments $ 112,817 $ 16,739 Less imputed interest (5,895 ) (1,343 ) Total $ 106,922 $ 15,396 Selected Operating Leases and Related Guarantees The Company leases the majority of its administrative, research and development and manufacturing facilities, regional sales/service offices, and certain equipment under non-cancelable operating leases. Certain of the Company’s facility leases for buildings located at its Fremont, California headquarters, Tualatin, Oregon campus, and certain other facility leases provide the Company with options to extend the leases for additional periods or to purchase the facilities. Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation. The Company has operating leases regarding certain improved properties in Fremont and Livermore, California (the “California Operating Leases”). The Company is required to maintain cash collateral in an aggregate of approximately $250.0 million in separate interest-bearing accounts as security for the Company’s obligations. These amounts are recorded with other restricted cash and investments in the Company’s Condensed Consolidated Balance Sheet as of December 29, 2019 . During the term of the California Operating Leases and when the terms of the California Operating Leases expire, the property subject to the California Operating Leases may be re-marketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate guarantee made by the Company under the California Operating Leases is generally no more than $220.4 million ; however, under certain default circumstances, the guarantee with regard to the California Operating Lease may be 100% of the lessor’s aggregate investment in the applicable property, which in no case will exceed $250.0 million , in the aggregate. |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 6 Months Ended |
Dec. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Refer to Note 13 - Leases for details regarding guarantees surrounding selected operating leases. Other Guarantees The Company has issued certain indemnifications to its lessors for taxes and general liability under some of its agreements. The Company has entered into insurance contracts that are intended to limit its exposure to such indemnifications. As of December 29, 2019 , the Company had not recorded any liability on its Condensed Consolidated Financial Statements in connection with these indemnifications, as it does not believe that it is probable that any material amounts will be paid under these guarantees. Generally, the Company indemnifies, under pre-determined conditions and limitations, its customers for infringement of third-party intellectual property rights by the Company’s products or services. The Company seeks to limit its liability for such indemnity to an amount not to exceed the sales price of the products or services subject to its indemnification obligations. The Company does not believe that it is probable that any material amounts will be paid under these guarantees. The Company provides guarantees and standby letters of credit to certain parties as required for certain transactions initiated during the ordinary course of business. As of December 29, 2019 , the maximum potential amount of future payments that the Company could be required to make under these arrangements and letters of credit was $58.4 million . The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid. In addition, the Company has entered into indemnification agreements with its officers and directors, consistent with its Bylaws and Certificate of Incorporation; and under local law, the Company may be required to provide indemnification to its employees for actions within the scope of their employment. Although the Company maintains insurance contracts that cover some of the potential liability associated with these indemnification agreements, there is no guarantee that all such liabilities will be covered. The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid under such indemnification agreements or statutory obligations. Warranties The Company provides standard warranties on its systems. The liability amount is based on actual historical warranty spending activity by type of system, customer, and geographic region, modified for any known differences such as the impact of system reliability improvements. Changes in the Company’s product warranty reserves were as follows: Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, (in thousands) Balance at beginning of period $ 114,470 $ 157,363 $ 127,932 $ 169,407 Warranties issued during the period 40,419 36,853 70,899 72,793 Settlements made during the period (31,848 ) (44,199 ) (66,916 ) (89,506 ) Changes in liability for pre-existing warranties (4,848 ) (2,262 ) (13,722 ) (4,939 ) Balance at end of period $ 118,193 $ 147,755 $ 118,193 $ 147,755 Legal Proceedings While the Company is not currently a party to any legal proceedings that it believes material, the Company is either a defendant or plaintiff in various actions that have arisen from time to time in the normal course of business, including intellectual property claims. The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. Based on current information, the Company does not believe that a material loss from known matters is probable and therefore has not recorded an accrual of any material amount for litigation or other contingencies related to existing legal proceedings. |
STOCK REPURCHASE PROGRAM
STOCK REPURCHASE PROGRAM | 6 Months Ended |
Dec. 29, 2019 | |
Equity [Abstract] | |
STOCK REPURCHASE PROGRAM | STOCK REPURCHASE PROGRAM In November 2018, the Board of Directors authorized the Company to repurchase up to an additional $5.0 billion of Common Stock. These repurchases can be conducted on the open market or as private purchases and may include the use of derivative contracts with large financial institutions, in all cases subject to compliance with applicable law. This repurchase program has no termination date and may be suspended or discontinued at any time. Funding for this repurchase program may be through a combination of cash on hand, cash generation, and borrowings. As of December 29, 2019 , the Company has purchased approximately $3.0 billion of shares under this authorization, comprised of $0.5 billion of open market purchases and execution of $2.5 billion of accelerated share repurchase arrangements. Repurchases under the repurchase program were as follows during the periods indicated: Period Total Number of Total Cost of Average Price (1) Amount (in thousands, except per share data) Available balance as of June 30, 2019 $ 3,033,500 Quarter ended September 29, 2019 383 $ 75,196 $ 196.34 $ 2,958,304 Quarter ended December 29, 2019 3,224 $ 1,000,475 $ — $ 1,957,829 (1) Average price paid per share excludes the effect of accelerated share repurchases. See additional disclosure below regarding the Company’s accelerated share repurchase activity during the six months ended December 29, 2019. In addition to the shares repurchased under the Board-authorized repurchase program shown above, during the three and six months ended December 29, 2019 , the Company acquired 18 thousand shares at a total cost of $4.9 million and 32 thousand shares at a total cost of $7.8 million , respectively, which the Company withheld through net settlements to cover minimum tax withholding obligations upon the vesting of restricted stock unit awards granted under the Company’s equity compensation plans. The shares retained by the Company through these net share settlements are not a part of the Board-authorized repurchase program but instead are authorized under the Company’s equity compensation plan. Accelerated Share Repurchase Agreements On November 22, 2019, the Company entered into two separate accelerated share repurchase agreements (collectively, the "November 2019 ASR") with two financial institutions to repurchase a total of $1.0 billion of Common Stock. The Company took an initial delivery of approximately 2.9 million shares, which represented 75% of the prepayment amount divided by the Company’s closing stock price on November 22, 2019. The total number of shares received under the November 2019 ASR will be based upon the average daily volume weighted average price of the Company’s Common Stock during the repurchase period, less an agreed upon discount. Final settlement of the November 2019 ASR will occur no later than May 27, 2020. On June 4, 2019, the Company entered into four separate accelerated share repurchase agreements (collectively, the "June 2019 ASR") with two financial institutions to repurchase a total of $750 million of Common Stock. The Company took an initial delivery of approximately 3.1 million shares, which represented 75% of the prepayment amount divided by the Company’s closing stock price on June 4, 2019. The total number of shares received under the June 2019 ASR was based upon the average daily volume weighted average price of the Company’s Common Stock during the repurchase period, less an agreed upon discount. Final settlement of the agreements occurred during November 2019, resulting in the receipt of approximately 361 thousand additional shares, which yielded a weighted-average share price of approximately $215.60 for the transaction period. |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 6 Months Ended |
Dec. 29, 2019 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive income (loss), net of tax at December 29, 2019 , as well as the activity for the six months ending December 29, 2019 , were as follows: Accumulated Foreign Currency Translation Adjustment Accumulated Accumulated Accumulated Total (in thousands) Balance at June 30, 2019 $ (39,370 ) $ (4,330 ) $ 2,146 $ (22,476 ) $ (64,030 ) Other comprehensive (loss) income before reclassifications (1,174 ) 3,388 (2,713 ) 578 79 (Gains) losses reclassified from accumulated other comprehensive income (loss) to net income (13 ) 2,734 (1) 983 (2) — 3,704 Net current-period other comprehensive (loss) income (1,187 ) 6,122 (1,730 ) 578 3,783 Balance at December 29, 2019 $ (40,557 ) $ 1,792 $ 416 $ (21,898 ) $ (60,247 ) (1) Amount of after tax loss reclassified from AOCI into net income located in revenue: $0.4 million loss; cost of goods sold: $1.6 million loss; and selling, general, and administrative expenses: $0.7 million loss. (2) Amount of after tax loss reclassified from accumulated other comprehensive income into net income located in other expense, net. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 6 Months Ended |
Dec. 29, 2019 | |
Accounting Policies [Abstract] | |
Consolidation | The condensed consolidated financial statements include the accounts of Lam Research and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Period | The Company’s reporting period is a 52/53-week fiscal year. The Company’s current fiscal year will end June 28, 2020 and includes 52 |
Recent Accounting Pronouncements | Recently Adopted In February 2016, the FASB issued ASU 2016-02, “Leases.” The amendment establishes the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. In January 2018 and July 2018 the FASB issued ASU 2018-01 and ASU 2018-11 amending the effects of ASU 2016-02, which in combination with ASU 2016-02 were codified as Accounting Standard Codification topic 842 (“ASC 842”). The Company adopted ASC 842 on the first day of the current fiscal year, July 1, 2019, under the modified-retrospective approach, applying the amendments to prospective reporting periods. Results for reporting periods beginning on or after July 1, 2019 are presented under ASC 842, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under ASC 840. The Company elected the package of practical expedients that allowed the Company not to reassess (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct lease costs for existing leases. The Company did not elect to use hindsight in connection with the adoption of ASC 842. The Company adopted ASC 842 by recording operating right-of-use assets of $110.8 million , net of deferred rent liabilities of $3.0 million that were reclassified to operating right-of-use assets, and operating lease liabilities of $113.8 million . The Company also recognized an adjustment of $3.0 million to retained earnings, net of tax; a reduction of $40.4 million to property and equipment, net; and a reduction of $43.8 million to finance leases ( $42.3 million of which was previously recognized in long-term debt and finance lease obligations, less current portion and the remaining was previously recognized in current portion of long-term debt and finance lease obligations) related to its de-recognition of its previously recorded build-to-suit arrangements. The adoption of the standard did not materially impact the Company’s Condensed Consolidated Statement of Operations and had no impact on cash flows. Updates Not Yet Effective In June 2016, the FASB released ASU 2016-13, “Financial Instruments – Credit Losses.” The amendment revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including but not limited to, available for sale debt securities and accounts receivable. The FASB issued a subsequent amendment to the initial guidance in November 2019 within ASU 2019-11. The Company is required to adopt these amendments starting in the first quarter of fiscal year 2021 using a modified-retrospective approach. Early adoption is permitted. The Company is still evaluating the impact of this standard, but does not expect the adoption to have a material impact on its Condensed Consolidated Financial Statements. In November 2018, the FASB issued ASU 2018-18, "Collaborative Arrangements (Topic 808).” The amendment clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under Topic 606 when the counterparty is a customer for a good or service that is a distinct unit of account. The amendment also precludes entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers. The Company is required to adopt this standard starting in the first quarter of fiscal year 2021. The standard should be applied retrospectively to the period when the Company initially adopted ASC 606. The Company is currently evaluating the impact of adoptions on its Condensed Consolidated Financial Statements. In April 2019, the FASB issued ASU 2019-04,”Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments ”, that clarifies and improves areas of guidance related to the recently issued standards on credit losses (ASU 2016-13), hedging (ASU 2017-12), and recognition and measurement of financial instruments (ASU 2016-01). The amendments generally have the same effective dates as their related standards. If already adopted, the amendments of ASU 2016-01 and ASU 2016-13 are effective starting in the first quarter of fiscal year 2021. The amendments of ASU 2017-12 were effective in the first quarter of fiscal year 2020, and did not have a material impact on the Company’s Condensed Consolidated Financial Statements. The Company continues to evaluate the impact of ASU 2016-13 and will consider the amendments of ASU 2019-04 as part of that process. |
Inventories | Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. System shipments to customers in Japan, for which title does not transfer until customer acceptance, are classified as finished goods inventory and carried at cost until title transfers. |
Warranties | The Company provides standard warranties on its systems. The liability amount is based on actual historical warranty spending activity by type of system, customer, and geographic region, modified for any known differences such as the impact of system reliability improvements. |
REVENUE (Tables)
REVENUE (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract Transaction Price not yet Recognized as Revenue | The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of December 29, 2019 and when the Company expects to recognize the amounts as revenue: Less than 1 Year 1-3 Years More than 3 Years Total (In thousands) Deferred revenue $ 372,927 $ 37,834 (1) $ — $ 410,761 (1) This amount is reported in Deferred profit on the Company's Condensed Consolidated Balance Sheets as the customers can demand the liability to be performed at any time. |
Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by geographic region: Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, (In thousands) China $ 758,286 $ 361,782 $ 1,349,954 $ 955,613 Taiwan 680,871 425,533 1,072,363 705,583 Korea 463,178 631,502 914,661 1,011,272 United States 223,725 135,696 407,384 255,801 Japan 208,240 691,817 481,913 1,361,857 Southeast Asia 184,168 165,204 397,923 363,340 Europe 65,033 111,139 125,049 199,898 $ 2,583,501 $ 2,522,673 $ 4,749,247 $ 4,853,364 |
Schedule of System Revenues of Primary Markets | The following table presents the percentages of system revenues to each of the primary markets we serve: Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, Memory 52 % 79 % 58 % 78 % Foundry 36 % 13 % 31 % 15 % Logic/integrated device manufacturing 12 % 8 % 11 % 7 % |
EQUITY-BASED COMPENSATION PLA_2
EQUITY-BASED COMPENSATION PLANS (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Recognized Equity Based Compensation Expense and Related Income Tax Benefit | The Company recognized the following equity-based compensation expense (including expense related to the employee stock purchase plan) and related income tax benefit in the Condensed Consolidated Statements of Operations: Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, (in thousands) Equity-based compensation expense $ 45,725 $ 38,806 $ 88,630 $ 89,149 Income tax benefit recognized related to equity-based compensation expense $ 4,461 $ 5,763 $ 14,279 $ 13,867 |
OTHER EXPENSE, NET (Tables)
OTHER EXPENSE, NET (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Other Income and Expenses [Abstract] | |
Components of Other Expense, Net | The significant components of other expense, net, are as follows: Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, (in thousands) Interest income $ 25,454 $ 17,809 $ 57,238 $ 36,742 Interest expense (42,615 ) (19,784 ) (86,610 ) (41,572 ) Gains (losses) on deferred compensation plan-related assets, net 14,129 (22,374 ) 13,693 (17,160 ) Foreign exchange (losses) gains, net (2,287 ) 2,581 (2,816 ) 2,632 Other, net (8,605 ) (8,881 ) (8,157 ) (11,668 ) $ (13,924 ) $ (30,649 ) $ (26,652 ) $ (31,026 ) |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Earnings Per Share [Abstract] | |
Schedule of Numerators and Denominators of Basic and Diluted Computations for Net Income Per Share | The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share. Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, (in thousands, except per share data) Numerator: Net income $ 514,510 $ 568,855 $ 980,299 $ 1,102,215 Denominator: Basic average shares outstanding 143,987 155,022 144,330 155,340 Effect of potential dilutive securities: Employee stock plans 1,528 1,435 1,359 1,487 Convertible notes 4,582 5,713 4,700 5,894 Warrants — — — 1,028 Diluted average shares outstanding 150,097 162,170 150,389 163,749 Net income per share - basic $ 3.57 $ 3.67 $ 6.79 $ 7.10 Net income per share - diluted $ 3.43 $ 3.51 $ 6.52 $ 6.73 |
Schedule of Potentially Dilutive Securities Excluded from EPS Calculations | The following potentially dilutive securities were excluded: Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, (in thousands) Options and RSUs 3 227 4 890 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Fair Value Disclosures [Abstract] | |
Cash, Cash Equivalents, Investments, Restricted Cash and Investments and Other Assets Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s cash, cash equivalents, investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of December 29, 2019 , and June 30, 2019 : December 29, 2019 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 580,318 $ — $ — $ 580,318 $ 576,439 $ — $ 3,879 $ — Time deposit 1,606,528 — — 1,606,528 1,356,500 — 250,028 — Level 1: Money market funds 977,274 — — 977,274 977,274 — — — U.S. Treasury and agencies 476,406 116 (54 ) 476,468 — 476,468 — — Mutual funds 75,244 5,792 (452 ) 80,584 — — — 80,584 Level 1 Total 1,528,924 5,908 (506 ) 1,534,326 977,274 476,468 — 80,584 Level 2: Government-sponsored enterprises 9,819 — (3 ) 9,816 2,799 7,017 — — Foreign government bonds 30,507 2 (6 ) 30,503 — 30,503 — — Corporate notes and bonds 1,225,526 742 (444 ) 1,225,824 122,875 1,102,949 — — Mortgage backed securities — residential 4,172 8 — 4,180 — 4,180 — — Mortgage backed securities — commercial 26,751 34 (35 ) 26,750 — 26,750 — — Level 2 Total 1,296,775 786 (488 ) 1,297,073 125,674 1,171,399 — — Total $ 5,012,545 $ 6,694 $ (994 ) $ 5,018,245 $ 3,035,887 $ 1,647,867 $ 253,907 $ 80,584 June 30, 2019 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 467,460 $ — $ — $ 467,460 $ 462,310 $ — $ 5,150 $ — Time deposit 1,563,686 — — 1,563,686 1,313,659 — 250,027 — Level 1: Money market funds 1,644,659 — — 1,644,659 1,644,659 — — — U.S. Treasury and agencies 465,655 283 (24 ) 465,914 86,981 378,933 — — Mutual funds 76,961 1,063 (283 ) 77,741 — — — 77,741 Level 1 Total 2,187,275 1,346 (307 ) 2,188,314 1,731,640 378,933 — 77,741 Level 2: Government-sponsored enterprises 16,005 5 (41 ) 15,969 — 15,969 — — Foreign government bonds 24,408 35 — 24,443 — 24,443 — — Corporate notes and bonds 1,466,167 2,310 (99 ) 1,468,378 150,610 1,317,768 — — Mortgage backed securities — residential 6,148 — (4 ) 6,144 — 6,144 — — Mortgage backed securities — commercial 29,587 140 — 29,727 — 29,727 — — Level 2 Total 1,542,315 2,490 (144 ) 1,544,661 150,610 1,394,051 — — Total $ 5,760,736 $ 3,836 $ (451 ) $ 5,764,121 $ 3,658,219 $ 1,772,984 $ 255,177 $ 77,741 |
Schedule of Cash, Cash Equivalents, Investments and Restricted Cash and Investments in Unrealized Loss Positions | The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions: December 29, 2019 Unrealized Losses Unrealized Losses Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) U.S. Treasury and agencies $ 325,502 $ (54 ) $ — $ — $ 325,502 $ (54 ) Mutual funds 2,925 (195 ) 7,955 (257 ) 10,880 (452 ) Government-sponsored enterprises — — 6,995 (3 ) 6,995 (3 ) Foreign government bonds 29,420 (6 ) — — 29,420 (6 ) Corporate notes and bonds 703,002 (441 ) 6,780 (3 ) 709,782 (444 ) Mortgage backed securities — commercial 16,805 (35 ) — — 16,805 (35 ) $ 1,077,654 $ (731 ) $ 21,730 $ (263 ) $ 1,099,384 $ (994 ) |
Schedule of Amortized Cost and Fair Value of Cash Equivalents, Investments, Restricted Cash and Investments with Contractual Maturities | The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities are as follows as of December 29, 2019 : Cost Estimated (in thousands) Due in one year or less $ 3,889,431 $ 3,889,377 Due after one year through five years 444,558 444,950 Due in more than five years 22,994 23,016 $ 4,356,983 $ 4,357,343 |
Schedule of Outstanding Foreign Currency Forward Contracts | As of December 29, 2019 , the Company had the following outstanding foreign currency contracts that were entered into under its cash flow and balance sheet hedge programs: Notional Value Derivatives Designated as Derivatives Not Designated (in thousands) Foreign currency forward contracts Buy Contracts Sell Contracts Buy Contracts Sell Contracts Japanese yen $ — $ 100,830 $ 61,301 $ — Euro 61,007 — 42,371 — Korean won 15,401 — — 4,294 British pound sterling — — 48,439 — Taiwan dollar — — 33,328 — Chinese renminbi — — 31,683 — Swiss franc — — 22,493 — Singapore dollar — — 21,409 — Indian rupee — — 7,855 — $ 76,408 $ 100,830 $ 268,879 $ 4,294 |
Schedule of Fair Value of Derivatives Instruments | The fair value of derivative instruments in the Company’s Condensed Consolidated Balance Sheet as of December 29, 2019 , and June 30, 2019 were as follows: December 29, 2019 June 30, 2019 Fair Value of Derivative Instruments (Level 2) Fair Value of Derivative Instruments (Level 2) Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value (in thousands) Derivatives designated as hedging instruments: Foreign exchange contracts Prepaid expense $ 2,437 Accrued expenses and other current liabilities $ 16 Prepaid expense $ 119 Accrued expenses and other current liabilities $ 2,756 Interest rate contracts, short-term — Accrued expenses and other current liabilities 2,746 — Accrued expenses and other current liabilities 5,149 Interest rate contracts, long-term Other assets 3,605 — Other assets 1,537 — Derivatives not designated as hedging instruments: Foreign exchange contracts Prepaid expense 21 Accrued expenses and other current liabilities 200 Prepaid expense 1,249 Accrued expenses and other current liabilities 748 Total Derivatives $ 6,063 $ 2,962 $ 2,905 $ 8,653 |
Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations | The effect of derivative instruments designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”) was as follows: Three Months Ended Six Months Ended December 29, 2019 December 29, 2019 Location of Gain Loss Gain (Loss) Loss Derivatives in Cash Flow Hedging Relationships (in thousands) Foreign Exchange Contracts Revenue $ 2,264 $ (172 ) $ 3,198 $ (506 ) Foreign Exchange Contracts Cost of goods sold 196 (1,090 ) (1,067 ) (1,900 ) Foreign Exchange Contracts Selling, general, and administrative 130 (417 ) (465 ) (893 ) Interest Rate Contracts Other expense, net 2,394 (35 ) 2,394 (70 ) $ 4,984 $ (1,714 ) $ 4,060 $ (3,369 ) Three Months Ended Six Months Ended December 23, 2018 December 23, 2018 Location of Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Derivatives in Cash Flow Hedging Relationships (in thousands) Foreign Exchange Contracts Revenue $ 8,229 $ 7,813 $ 16,670 $ 8,487 Foreign Exchange Contracts Cost of goods sold (1,965 ) (851 ) (2,089 ) (2,408 ) Foreign Exchange Contracts Selling, general, and administrative (674 ) (651 ) (878 ) (1,178 ) Interest Rate Contracts Other expense, net — (33 ) — (66 ) $ 5,590 $ 6,278 $ 13,703 $ 4,835 The effect of derivative instruments not designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations was as follows: Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, Derivatives Not Designated as Hedging Instruments: Location Gain Gain Loss Gain (in thousands) Foreign Exchange Contracts Other income $ 3,571 $ 301 $ (1,930 ) $ 10,889 The following table presents the effect of the fair value cash flow hedge accounting on the Statement of Financial Performance as well as presents the location and amount of gain/(loss) recognized in Income on fair value and cash flow hedging relationships: Three Months Ended Six Months Ended December 29, 2019 December 29, 2019 Revenue Cost of Goods Sold Selling, General and Admini-strative Other Income (Expense) Revenue Cost of Goods Sold Selling, General and Admini-strative Other Income (Expense) (in thousands) Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded: $ 2,583,501 $1,403,857 $ 174,272 $ (13,924 ) $ 4,749,247 $ 2,587,893 $ 331,700 $ (26,652 ) The effects of fair value and cash flow hedging: Gain or (loss) on fair value hedging relationships in Subtopic 815-20: Interest contracts: Hedged items $ — $ — $ — $ 2,342 $ — $ — $ — $ (5,092 ) Derivatives designated as hedging instruments $ — $ — $ — $ (2,342 ) $ — $ — $ — $ 5,092 Gain or (loss) on cash flow hedging relationships in Subtopic 815-20: Foreign exchange contracts: Amount of loss reclassified from accumulated other comprehensive income into income $ (172 ) $ (1,090 ) $ (417 ) $ — $ (506 ) $ (1,900 ) $ (893 ) $ — Interest rate contracts: Amount of loss reclassified from accumulated other comprehensive income into income $ — $ — $ — $ (35 ) $ — $ — $ — $ (70 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: December 29, June 30, (in thousands) Raw materials $ 980,751 $ 994,738 Work-in-process 200,626 174,219 Finished goods 347,243 371,183 $ 1,528,620 $ 1,540,140 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table provides the Company’s intangible assets: December 29, 2019 June 30, 2019 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 630,206 $ (508,199 ) $ 122,007 $ 630,165 $ (483,204 ) $ 146,961 Existing technology 669,488 (651,379 ) 18,109 669,399 (647,837 ) 21,562 Patents and other intangible assets 135,048 (82,048 ) 53,000 126,235 (77,808 ) 48,427 Total intangible assets $ 1,434,742 $ (1,241,626 ) $ 193,116 $ 1,425,799 $ (1,208,849 ) $ 216,950 |
Estimated Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets as of December 29, 2019 , is reflected in the table below. The table excludes $13.5 million of capitalized costs for intangible assets that have not been placed into service. Fiscal Year Amount (in thousands) 2020 (remaining 6 months) $ 32,742 2021 63,431 2022 59,093 2023 14,025 2024 7,324 Thereafter 2,962 $ 179,577 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: December 29, June 30, (in thousands) Accrued compensation $ 390,033 $ 336,090 Warranty reserves 118,193 127,932 Income and other taxes payable 134,615 49,926 Dividend payable 163,510 158,868 Other 307,662 273,825 $ 1,114,013 $ 946,641 |
LONG-TERM DEBT AND OTHER BORR_2
LONG-TERM DEBT AND OTHER BORROWINGS (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | As of December 29, 2019 , and June 30, 2019 , the Company’s outstanding debt consisted of the following: December 29, 2019 June 30, 2019 Amount Effective Interest Rate Amount Effective Interest Rate Fixed-rate 2.75% Senior Notes Due March 15, 2020 ("2020 Notes") $ 500,000 2.88 % $ 500,000 2.88 % Fixed-rate 2.80% Senior Notes Due June 15, 2021 ("2021 Notes") 800,000 2.95 % 800,000 2.95 % Fixed-rate 3.80% Senior Notes Due March 15, 2025 ("2025 Notes") 500,000 3.87 % 500,000 3.87 % Fixed-rate 3.75% Senior Notes Due March 15, 2026 ("2026 Notes") 750,000 3.86 % 750,000 3.86 % Fixed-rate 4.00% Senior Notes Due March 15, 2029 ("2029 Notes") 1,000,000 4.09 % 1,000,000 4.09 % Fixed-rate 2.625% Convertible Notes Due May 15, 2041 ("2041 Notes") 167,091 (1) 4.28 % 212,349 (1) 4.28 % Fixed-rate 4.875% Senior Notes Due March 15, 2049 ("2049 Notes") 750,000 4.93 % 750,000 4.93 % Total debt outstanding, at par 4,467,091 4,512,349 Unamortized discount (60,332 ) (73,191 ) Fair value adjustment - interest rate contracts 1,300 (2) (3,612 ) Unamortized bond issuance costs (5,096 ) (5,535 ) Total debt outstanding, at carrying value $ 4,402,963 $ 4,430,011 Reported as: Current portion of long-term debt, and commercial paper $ 628,614 $ 662,308 Long-term debt 3,774,349 3,767,703 Total debt outstanding, at carrying value $ 4,402,963 $ 4,430,011 ____________________________ (1) As of the report date, these notes were convertible at the option of the bondholder. This is a result of the following condition being met: the market value of the Company’s Common Stock was greater than 130% of the convertible notes conversion price for 20 or more of the 30 consecutive trading days preceding the quarter-end. As a result, the 2041 Notes were classified in current liabilities and a portion of the equity component, associated with the convertible notes representing the unamortized discount, was classified in temporary equity on the Company’s Consolidated Balance Sheets. Upon closure of the conversion period, the notes not converted will be reclassified back into noncurrent liabilities and the temporary equity will be reclassified into permanent equity. (2) This amount includes a cumulative fair market gain of $2.8 million for discontinued hedging relationships, net of an immaterial amount of amortization for the three and six months ended December 29, 2019 . |
Components of Convertible Notes | Selected additional information regarding the 2041 Notes outstanding as of December 29, 2019 , and June 30, 2019 , is as follows: December 29, June 30, 2041 Notes 2041 Notes (in thousands, except years, percentages, conversion rate, and conversion price) Carrying amount of permanent equity component, net of tax $ 161,271 $ 160,604 Carrying amount of temporary equity component, net of tax $ 38,304 $ 49,439 Remaining amortization period (years) 21.4 21.9 Fair Value of Notes (Level 2) $ 1,532,188 Conversion rate (shares of common stock per $1,000 principal amount of notes) 31.2089 Conversion price (per share of common stock) $ 32.04 If-converted value in excess of par value $ 1,364,475 Estimated share dilution using average quarterly stock price $264.15 per share 4,582 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Selected additional information regarding the Senior Notes outstanding as of December 29, 2019 , is as follows: Remaining Amortization period Fair Value of Notes (Level 2) (years) (in thousands) 2020 Notes 0.2 $ 500,410 2021 Notes 1.5 $ 809,552 2025 Notes 5.2 $ 536,190 2026 Notes 6.2 $ 805,748 2029 Notes 9.2 $ 1,104,060 2049 Notes 29.2 $ 947,325 |
Schedule of Recognized Interest Cost Relating to Both Contractual Interest Coupon and Amortization of Discount on Liability Component of Notes | The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Senior Notes, convertible notes, the term loan agreement, commercial paper, and the revolving credit facility during the three and six months ended December 29, 2019 and December 23, 2018 . Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, (in thousands) Contractual interest coupon $ 40,665 $ 16,550 $ 81,787 $ 33,977 Amortization of interest discount 1,158 887 2,393 1,787 Amortization of issuance costs 416 329 830 658 Effect of interest rate contracts, net 155 777 830 1,530 Total interest cost recognized $ 42,394 $ 18,543 $ 85,840 $ 37,952 |
LEASES (Tables)
LEASES (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows: Three Months Ended Six Months Ended December 29, December 29, (in thousands) Financing lease cost: Amortization of right-of-use assets $ 891 $ 1,819 Interest on lease liabilities 115 265 Total finance lease cost $ 1,006 $ 2,084 Operating lease cost $ 10,421 $ 21,185 Variable lease cost 22,071 41,018 |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows: Six Months Ended December 29, 2019 Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 19,384 Financing cash flows paid for principal portion of finance leases 1,647 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 11,968 Finance leases 1,357 December 29, 2019 Weighted-Average Remaining Lease Term Weighted-Average Discount Rate (in years) Operating leases 4.4 2.57 % Finance leases 4.3 2.82 % |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases were as follows: December 29, 2019 (in thousands) Operating leases Other assets $ 101,605 Accrued expenses and other current liabilities $ 36,480 Other long-term liabilities 70,442 Total operating lease liabilities $ 106,922 Finance Leases Property and Equipment, net $ 18,684 Current portion of long-term debt and lease liabilities $ 3,677 Long-term debt and lease liabilities 11,719 Total finance lease liabilities $ 15,396 December 29, 2019 Weighted-Average Remaining Lease Term Weighted-Average Discount Rate (in years) Operating leases 4.4 2.57 % Finance leases 4.3 2.82 % |
Maturities of Finance Lease Liabilities | As of December 29, 2019 , the maturities of lease liabilities are as follows: Fiscal Year Operating Leases Finance Leases (in thousands) 2020 (remaining 6 months) $ 19,237 $ 2,022 2021 34,265 3,548 2022 18,256 6,208 2023 11,659 1,200 2024 8,591 841 Thereafter 20,809 2,920 Total lease payments $ 112,817 $ 16,739 Less imputed interest (5,895 ) (1,343 ) Total $ 106,922 $ 15,396 |
Maturities of Operating Lease Liabilities | As of December 29, 2019 , the maturities of lease liabilities are as follows: Fiscal Year Operating Leases Finance Leases (in thousands) 2020 (remaining 6 months) $ 19,237 $ 2,022 2021 34,265 3,548 2022 18,256 6,208 2023 11,659 1,200 2024 8,591 841 Thereafter 20,809 2,920 Total lease payments $ 112,817 $ 16,739 Less imputed interest (5,895 ) (1,343 ) Total $ 106,922 $ 15,396 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranties | Changes in the Company’s product warranty reserves were as follows: Three Months Ended Six Months Ended December 29, December 23, December 29, December 23, (in thousands) Balance at beginning of period $ 114,470 $ 157,363 $ 127,932 $ 169,407 Warranties issued during the period 40,419 36,853 70,899 72,793 Settlements made during the period (31,848 ) (44,199 ) (66,916 ) (89,506 ) Changes in liability for pre-existing warranties (4,848 ) (2,262 ) (13,722 ) (4,939 ) Balance at end of period $ 118,193 $ 147,755 $ 118,193 $ 147,755 |
STOCK REPURCHASE PROGRAM (Table
STOCK REPURCHASE PROGRAM (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Equity [Abstract] | |
Repurchases Under the Repurchase Program | Repurchases under the repurchase program were as follows during the periods indicated: Period Total Number of Total Cost of Average Price (1) Amount (in thousands, except per share data) Available balance as of June 30, 2019 $ 3,033,500 Quarter ended September 29, 2019 383 $ 75,196 $ 196.34 $ 2,958,304 Quarter ended December 29, 2019 3,224 $ 1,000,475 $ — $ 1,957,829 (1) Average price paid per share excludes the effect of accelerated share repurchases. See additional disclosure below regarding the Company’s accelerated share repurchase activity during the six months ended December 29, 2019. |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 6 Months Ended |
Dec. 29, 2019 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss), net of tax at December 29, 2019 , as well as the activity for the six months ending December 29, 2019 , were as follows: Accumulated Foreign Currency Translation Adjustment Accumulated Accumulated Accumulated Total (in thousands) Balance at June 30, 2019 $ (39,370 ) $ (4,330 ) $ 2,146 $ (22,476 ) $ (64,030 ) Other comprehensive (loss) income before reclassifications (1,174 ) 3,388 (2,713 ) 578 79 (Gains) losses reclassified from accumulated other comprehensive income (loss) to net income (13 ) 2,734 (1) 983 (2) — 3,704 Net current-period other comprehensive (loss) income (1,187 ) 6,122 (1,730 ) 578 3,783 Balance at December 29, 2019 $ (40,557 ) $ 1,792 $ 416 $ (21,898 ) $ (60,247 ) (1) Amount of after tax loss reclassified from AOCI into net income located in revenue: $0.4 million loss; cost of goods sold: $1.6 million loss; and selling, general, and administrative expenses: $0.7 million loss. (2) Amount of after tax loss reclassified from accumulated other comprehensive income into net income located in other expense, net. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS - Additional Information (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Jul. 01, 2019 | Jun. 30, 2019 | ||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating right-of-use assets | $ 101,605 | ||||
Net lease liability | 106,922 | ||||
Property and equipment, net | [1] | $ (1,059,077) | |||
Current portion of long-term debt and finance lease obligations | $ (632,292) | $ (667,131) | [1] | ||
ASU 2016-02 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Operating right-of-use assets | $ 110,800 | ||||
Deferred rent liabilities | 3,000 | ||||
Net lease liability | 113,800 | ||||
Cumulative-effect adjustment to retained earnings | 3,018 | ||||
Property and equipment, net | 40,400 | ||||
Finance leases | 43,800 | ||||
Current portion of long-term debt and finance lease obligations | 42,300 | ||||
ASU 2016-02 | Retained earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | $ 3,018 | ||||
[1] | Derived from audited financial statements |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended |
Dec. 29, 2019USD ($) | Dec. 29, 2019USD ($)regionsegmentmarket | |
Revenue from Contract with Customer [Abstract] | ||
Revenue recognized | $ | $ 125.9 | $ 323.9 |
Number reportable business segment | segment | 1 | |
Number of operating geographic regions | region | 7 | |
Number of primary markets | market | 3 |
REVENUE - Summary of Contract T
REVENUE - Summary of Contract Transaction Price not yet Recognized as Revenue (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 410,761 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2019-12-30 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 372,927 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of satisfaction | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 37,834 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-06-28 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-06-26 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of satisfaction |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 2,583,501 | $ 2,522,673 | $ 4,749,247 | $ 4,853,364 |
China | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 758,286 | 361,782 | 1,349,954 | 955,613 |
Taiwan | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 680,871 | 425,533 | 1,072,363 | 705,583 |
Korea | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 463,178 | 631,502 | 914,661 | 1,011,272 |
United States | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 223,725 | 135,696 | 407,384 | 255,801 |
Japan | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 208,240 | 691,817 | 481,913 | 1,361,857 |
Southeast Asia | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 184,168 | 165,204 | 397,923 | 363,340 |
Europe | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 65,033 | $ 111,139 | $ 125,049 | $ 199,898 |
REVENUE - Schedule of System Re
REVENUE - Schedule of System Revenues of Primary Markets (Details) - Systems revenue | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | |
Memory | ||||
Concentration Risk [Line Items] | ||||
Primary market revenue, percent | 52.00% | 79.00% | 58.00% | 78.00% |
Foundry | ||||
Concentration Risk [Line Items] | ||||
Primary market revenue, percent | 36.00% | 13.00% | 31.00% | 15.00% |
Logic/integrated device manufacturing | ||||
Concentration Risk [Line Items] | ||||
Primary market revenue, percent | 12.00% | 8.00% | 11.00% | 7.00% |
EQUITY-BASED COMPENSATION PLA_3
EQUITY-BASED COMPENSATION PLANS - Additional Information (Details) | 6 Months Ended |
Dec. 29, 2019 | |
Share-based Payment Arrangement [Abstract] | |
Vesting period (years) | 3 years |
EQUITY-BASED COMPENSATION PLA_4
EQUITY-BASED COMPENSATION PLANS - Recognized Equity-Based Compensation Expenses and Related Income Tax Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | |
Share-based Payment Arrangement [Abstract] | ||||
Equity-based compensation expense | $ 45,725 | $ 38,806 | $ 88,630 | $ 89,149 |
Income tax benefit recognized related to equity-based compensation expense | $ 4,461 | $ 5,763 | $ 14,279 | $ 13,867 |
OTHER EXPENSE, NET (Details)
OTHER EXPENSE, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | |
Other Income and Expenses [Abstract] | ||||
Interest income | $ 25,454 | $ 17,809 | $ 57,238 | $ 36,742 |
Interest expense | (42,615) | (19,784) | (86,610) | (41,572) |
Gains (losses) on deferred compensation plan-related assets, net | 14,129 | (22,374) | 13,693 | (17,160) |
Foreign exchange (losses) gains, net | (2,287) | 2,581 | (2,816) | 2,632 |
Other, net | (8,605) | (8,881) | (8,157) | (11,668) |
Other expense, net | $ (13,924) | $ (30,649) | $ (26,652) | $ (31,026) |
INCOME TAX EXPENSE (Details)
INCOME TAX EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | |
Income Tax Disclosure [Abstract] | ||||
Income tax expense | $ 158,077 | $ 90,875 | $ 217,015 | $ 148,889 |
Effective income tax rate | 23.50% | 18.10% | ||
Tax Adjustments, Settlements, and Unusual Provisions | $ 74,500 | |||
Tax examinations or lapses of statute of limitation | ||||
Income Tax Contingency [Line Items] | ||||
Estimated unrecognized tax benefits reduction | $ 10,000 | $ 10,000 |
NET INCOME PER SHARE - Schedule
NET INCOME PER SHARE - Schedule of Numerators and Denominators of Basic and Diluted Computations for Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | |
Numerator: | ||||
Net income | $ 514,510 | $ 568,855 | $ 980,299 | $ 1,102,215 |
Denominator: | ||||
Basic average shares outstanding (shares) | 143,987 | 155,022 | 144,330 | 155,340 |
Effect of potential dilutive securities: | ||||
Employee stock plans (shares) | 1,528 | 1,435 | 1,359 | 1,487 |
Convertible notes (shares) | 4,582 | 5,713 | 4,700 | 5,894 |
Warrants (shares) | 0 | 0 | 0 | 1,028 |
Diluted average shares outstanding (shares) | 150,097 | 162,170 | 150,389 | 163,749 |
Net income per share - basic (usd per share) | $ 3.57 | $ 3.67 | $ 6.79 | $ 7.10 |
Net income per share - diluted (usd per share) | $ 3.43 | $ 3.51 | $ 6.52 | $ 6.73 |
NET INCOME PER SHARE - Schedu_2
NET INCOME PER SHARE - Schedule of Potentially Dilutive Securities Excluded from EPS Calculations (Details) - shares shares in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | |
Options and RSUs | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of potentially dilutive securities (shares) | 3 | 227 | 4 | 890 |
FINANCIAL INSTRUMENTS - Cash, C
FINANCIAL INSTRUMENTS - Cash, Cash Equivalents, Investments, Restricted Cash and Investments and Other Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Jun. 30, 2019 | Dec. 23, 2018 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, cost | $ 4,356,983 | |||
Total cost | 5,012,545 | $ 5,760,736 | ||
Total, unrealized gain | 6,694 | 3,836 | ||
Total unrealized (loss) | (994) | (451) | ||
Total fair value | 5,018,245 | 5,764,121 | ||
Cash and Cash Equivalents | 3,035,887 | 3,658,219 | [1] | $ 3,359,793 |
Investments | 1,647,867 | 1,772,984 | [1] | |
Restricted cash and investments | 253,907 | 255,177 | [1] | |
Other Assets | 80,584 | 77,741 | ||
Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Total cost | 1,528,924 | 2,187,275 | ||
Total, unrealized gain | 5,908 | 1,346 | ||
Total unrealized (loss) | (506) | (307) | ||
Total fair value | 1,534,326 | 2,188,314 | ||
Cash and Cash Equivalents | 977,274 | 1,731,640 | ||
Investments | 476,468 | 378,933 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 80,584 | 77,741 | ||
Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Total cost | 1,296,775 | 1,542,315 | ||
Total, unrealized gain | 786 | 2,490 | ||
Total unrealized (loss) | (488) | (144) | ||
Total fair value | 1,297,073 | 1,544,661 | ||
Cash and Cash Equivalents | 125,674 | 150,610 | ||
Investments | 1,171,399 | 1,394,051 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Cash | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | 580,318 | 467,460 | ||
Cash and Cash Equivalents | 576,439 | 462,310 | ||
Investments | 0 | 0 | ||
Restricted cash and investments | 3,879 | 5,150 | ||
Other Assets | 0 | 0 | ||
Time deposit | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | 1,606,528 | 1,563,686 | ||
Cash and Cash Equivalents | 1,356,500 | 1,313,659 | ||
Investments | 0 | 0 | ||
Restricted cash and investments | 250,028 | 250,027 | ||
Other Assets | 0 | 0 | ||
Money market funds | Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, cost | 977,274 | 1,644,659 | ||
Debt securities, unrealized gain | 0 | 0 | ||
Debt securities, unrealized (loss) | 0 | 0 | ||
Debt securities, fair value | 977,274 | 1,644,659 | ||
Cash and Cash Equivalents | 977,274 | 1,644,659 | ||
Investments | 0 | 0 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
U.S. Treasury and agencies | Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, cost | 476,406 | 465,655 | ||
Debt securities, unrealized gain | 116 | 283 | ||
Debt securities, unrealized (loss) | (54) | (24) | ||
Debt securities, fair value | 476,468 | 465,914 | ||
Cash and Cash Equivalents | 0 | 86,981 | ||
Investments | 476,468 | 378,933 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Mutual funds | Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Trading securities, cost | 75,244 | 76,961 | ||
Trading securities, unrealized gain | 5,792 | 1,063 | ||
Trading securities, unrealized (loss) | (452) | (283) | ||
Trading securities, fair value | 80,584 | 77,741 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Investments | 0 | 0 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 80,584 | 77,741 | ||
Government-sponsored enterprises | Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, cost | 9,819 | 16,005 | ||
Debt securities, unrealized gain | 0 | 5 | ||
Debt securities, unrealized (loss) | (3) | (41) | ||
Debt securities, fair value | 9,816 | 15,969 | ||
Cash and Cash Equivalents | 2,799 | 0 | ||
Investments | 7,017 | 15,969 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Foreign government bonds | Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, cost | 30,507 | 24,408 | ||
Debt securities, unrealized gain | 2 | 35 | ||
Debt securities, unrealized (loss) | (6) | 0 | ||
Debt securities, fair value | 30,503 | 24,443 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Investments | 30,503 | 24,443 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Corporate notes and bonds | Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, cost | 1,225,526 | 1,466,167 | ||
Debt securities, unrealized gain | 742 | 2,310 | ||
Debt securities, unrealized (loss) | (444) | (99) | ||
Debt securities, fair value | 1,225,824 | 1,468,378 | ||
Cash and Cash Equivalents | 122,875 | 150,610 | ||
Investments | 1,102,949 | 1,317,768 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Mortgage backed securities — residential | Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, cost | 4,172 | 6,148 | ||
Debt securities, unrealized gain | 8 | 0 | ||
Debt securities, unrealized (loss) | 0 | (4) | ||
Debt securities, fair value | 4,180 | 6,144 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Investments | 4,180 | 6,144 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Mortgage backed securities — commercial | Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, cost | 26,751 | 29,587 | ||
Debt securities, unrealized gain | 34 | 140 | ||
Debt securities, unrealized (loss) | (35) | 0 | ||
Debt securities, fair value | 26,750 | 29,727 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Investments | 26,750 | 29,727 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | $ 0 | $ 0 | ||
[1] | Derived from audited financial statements |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | Jan. 31, 2020 | Jun. 30, 2019 | |
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Other than temporary impairment losses, investments | $ 0 | $ 0 | $ 0 | $ 0 | ||
Net unrealized gains during the period | 4,079,000 | 3,388,000 | ||||
Foreign exchange and interest rate contracts | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Foreign exchange contracts amount of offset, assets | 2,300,000 | 2,300,000 | $ 2,400,000 | |||
Foreign exchange contracts amount of offset, liabilities | 2,300,000 | 2,300,000 | 2,400,000 | |||
Net derivative asset from master netting agreements | 3,800,000 | 3,800,000 | 500,000 | |||
Net derivative liability from master netting agreements | 700,000 | 700,000 | $ 6,200,000 | |||
Cash Flow Hedges | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Gain reclassification from AOCI to income, in the next 12 months | 2,000,000 | |||||
Losses accumulated in other comprehensive income expected to reclassify from other comprehensive income into earnings | $ (2,100,000) | |||||
Gains (losses) accumulated in other comprehensive income expected to reclassify from other comprehensive income into earnings, estimate of time to transfer | 5 years 2 months 12 days | |||||
Cash Flow Hedges | Interest rate swap agreement | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative notional amount | $ 200,000,000 | $ 200,000,000 | ||||
Net unrealized gains during the period | $ 1,900,000 | |||||
Minimum | Cash Flow Hedges | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Foreign currency cash flow hedge, expiration period | 12 months | |||||
Maximum | Cash Flow Hedges | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Foreign currency cash flow hedge, expiration period | 24 months | |||||
Subsequent event | Cash Flow Hedges | Interest rate swap agreement | ||||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||||
Derivative notional amount | $ 200,000,000 |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Cash, Cash Equivalents, Investments and Restricted Cash and Investments Unrealized Loss Positions (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Fair Value | |
Unrealized Losses Less than 12 Months | $ 1,077,654 |
Unrealized Losses 12 Months or Greater | 21,730 |
Total | 1,099,384 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months | (731) |
Unrealized Losses 12 Months or Greater | (263) |
Total | (994) |
U.S. Treasury and agencies | |
Fair Value | |
Unrealized losses less than 12 months, available for sale | 325,502 |
Unrealized losses 12 months or greater, available for sale | 0 |
Total, available for sale | 325,502 |
Gross Unrealized Loss | |
Unrealized losses less than 12 months, available for sale | (54) |
Unrealized losses 12 months or greater, available for sale | 0 |
Total, available for sale | (54) |
Mutual funds | |
Fair Value | |
Unrealized losses less than 12 months, trading | 2,925 |
Unrealized losses 12 months or greater, trading | 7,955 |
Total, trading | 10,880 |
Gross Unrealized Loss | |
Unrealized losses less than 12 months, trading | (195) |
Unrealized losses 12 months or greater, trading | (257) |
Total, trading | (452) |
Government-sponsored enterprises | |
Fair Value | |
Unrealized losses less than 12 months, available for sale | 0 |
Unrealized losses 12 months or greater, available for sale | 6,995 |
Total, available for sale | 6,995 |
Gross Unrealized Loss | |
Unrealized losses less than 12 months, available for sale | 0 |
Unrealized losses 12 months or greater, available for sale | (3) |
Total, available for sale | (3) |
Foreign government bonds | |
Fair Value | |
Unrealized losses less than 12 months, available for sale | 29,420 |
Unrealized losses 12 months or greater, available for sale | 0 |
Total, available for sale | 29,420 |
Gross Unrealized Loss | |
Unrealized losses less than 12 months, available for sale | (6) |
Unrealized losses 12 months or greater, available for sale | 0 |
Total, available for sale | (6) |
Corporate notes and bonds | |
Fair Value | |
Unrealized losses less than 12 months, available for sale | 703,002 |
Unrealized losses 12 months or greater, available for sale | 6,780 |
Total, available for sale | 709,782 |
Gross Unrealized Loss | |
Unrealized losses less than 12 months, available for sale | (441) |
Unrealized losses 12 months or greater, available for sale | (3) |
Total, available for sale | (444) |
Mortgage backed securities — commercial | |
Fair Value | |
Unrealized losses less than 12 months, available for sale | 16,805 |
Unrealized losses 12 months or greater, available for sale | 0 |
Total, available for sale | 16,805 |
Gross Unrealized Loss | |
Unrealized losses less than 12 months, available for sale | (35) |
Unrealized losses 12 months or greater, available for sale | 0 |
Total, available for sale | $ (35) |
FINANCIAL INSTRUMENTS - Sched_2
FINANCIAL INSTRUMENTS - Schedule of Amortized Cost and Fair Value of Cash Equivalents, Investments, and Restricted Cash and Investments with Contractual Maturities (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Cost | |
Due in one year or less | $ 3,889,431 |
Due after one year through five years | 444,558 |
Due in more than five years | 22,994 |
Debt securities, cost | 4,356,983 |
Estimated Fair Value | |
Due in one year or less | 3,889,377 |
Due after one year through five years | 444,950 |
Due in more than five years | 23,016 |
Total | $ 4,357,343 |
FINANCIAL INSTRUMENTS - Sched_3
FINANCIAL INSTRUMENTS - Schedule of Outstanding Foreign Currency Forward Contracts (Details) - Foreign exchange contracts - Foreign currency forward contracts $ in Thousands | Dec. 29, 2019USD ($) |
Buy Contracts | Derivatives designated as hedging instruments | |
Derivative [Line Items] | |
Derivative notional amount | $ 76,408 |
Buy Contracts | Derivatives designated as hedging instruments | Japanese yen | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Buy Contracts | Derivatives designated as hedging instruments | Euro | |
Derivative [Line Items] | |
Derivative notional amount | 61,007 |
Buy Contracts | Derivatives designated as hedging instruments | Korean won | |
Derivative [Line Items] | |
Derivative notional amount | 15,401 |
Buy Contracts | Derivatives designated as hedging instruments | British pound sterling | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Buy Contracts | Derivatives designated as hedging instruments | Taiwan dollar | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Buy Contracts | Derivatives designated as hedging instruments | Chinese renminbi | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Buy Contracts | Derivatives designated as hedging instruments | Swiss franc | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Buy Contracts | Derivatives designated as hedging instruments | Singapore dollar | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Buy Contracts | Derivatives designated as hedging instruments | Indian rupee | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Buy Contracts | Derivatives not designated as hedging instruments | |
Derivative [Line Items] | |
Derivative notional amount | 268,879 |
Buy Contracts | Derivatives not designated as hedging instruments | Japanese yen | |
Derivative [Line Items] | |
Derivative notional amount | 61,301 |
Buy Contracts | Derivatives not designated as hedging instruments | Euro | |
Derivative [Line Items] | |
Derivative notional amount | 42,371 |
Buy Contracts | Derivatives not designated as hedging instruments | Korean won | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Buy Contracts | Derivatives not designated as hedging instruments | British pound sterling | |
Derivative [Line Items] | |
Derivative notional amount | 48,439 |
Buy Contracts | Derivatives not designated as hedging instruments | Taiwan dollar | |
Derivative [Line Items] | |
Derivative notional amount | 33,328 |
Buy Contracts | Derivatives not designated as hedging instruments | Chinese renminbi | |
Derivative [Line Items] | |
Derivative notional amount | 31,683 |
Buy Contracts | Derivatives not designated as hedging instruments | Swiss franc | |
Derivative [Line Items] | |
Derivative notional amount | 22,493 |
Buy Contracts | Derivatives not designated as hedging instruments | Singapore dollar | |
Derivative [Line Items] | |
Derivative notional amount | 21,409 |
Buy Contracts | Derivatives not designated as hedging instruments | Indian rupee | |
Derivative [Line Items] | |
Derivative notional amount | 7,855 |
Sell Contracts | Derivatives designated as hedging instruments | |
Derivative [Line Items] | |
Derivative notional amount | 100,830 |
Sell Contracts | Derivatives designated as hedging instruments | Japanese yen | |
Derivative [Line Items] | |
Derivative notional amount | 100,830 |
Sell Contracts | Derivatives designated as hedging instruments | Euro | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives designated as hedging instruments | Korean won | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives designated as hedging instruments | British pound sterling | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives designated as hedging instruments | Taiwan dollar | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives designated as hedging instruments | Chinese renminbi | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives designated as hedging instruments | Swiss franc | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives designated as hedging instruments | Singapore dollar | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives designated as hedging instruments | Indian rupee | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives not designated as hedging instruments | |
Derivative [Line Items] | |
Derivative notional amount | 4,294 |
Sell Contracts | Derivatives not designated as hedging instruments | Japanese yen | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives not designated as hedging instruments | Euro | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives not designated as hedging instruments | Korean won | |
Derivative [Line Items] | |
Derivative notional amount | 4,294 |
Sell Contracts | Derivatives not designated as hedging instruments | British pound sterling | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives not designated as hedging instruments | Taiwan dollar | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives not designated as hedging instruments | Chinese renminbi | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives not designated as hedging instruments | Swiss franc | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives not designated as hedging instruments | Singapore dollar | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Sell Contracts | Derivatives not designated as hedging instruments | Indian rupee | |
Derivative [Line Items] | |
Derivative notional amount | $ 0 |
FINANCIAL INSTRUMENTS - Sched_4
FINANCIAL INSTRUMENTS - Schedule of Fair Value of Derivative Instruments (Details) - Fair Value of Derivative Instruments (Level 2) - USD ($) $ in Thousands | Dec. 29, 2019 | Jun. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | $ 6,063 | $ 2,905 |
Derivative Liabilities | 2,962 | 8,653 |
Derivatives designated as hedging instruments | Prepaid expense and other assets | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | 2,437 | 119 |
Derivatives designated as hedging instruments | Accrued expenses and other current liabilities | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities | 16 | 2,756 |
Derivatives designated as hedging instruments | Accrued expenses and other current liabilities | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities | 2,746 | 5,149 |
Derivatives designated as hedging instruments | Other assets | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | 3,605 | 1,537 |
Derivatives not designated as hedging instruments | Prepaid expense and other assets | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | 21 | 1,249 |
Derivatives not designated as hedging instruments | Accrued expenses and other current liabilities | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities | $ 200 | $ 748 |
FINANCIAL INSTRUMENTS - Sched_5
FINANCIAL INSTRUMENTS - Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations Including Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Revenue | $ 2,583,501 | $ 2,522,673 | $ 4,749,247 | $ 4,853,364 |
Cost of goods sold | 1,403,857 | 1,377,640 | 2,587,893 | 2,650,133 |
Selling, general, and administrative | 174,272 | 169,098 | 331,700 | 343,873 |
Other expense, net | (13,924) | (30,649) | (26,652) | (31,026) |
Foreign Exchange Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Recognized in AOCI | 4,984 | 5,590 | 4,060 | 13,703 |
Foreign Exchange Contracts | Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Recognized in AOCI | 2,264 | 8,229 | 3,198 | 16,670 |
Foreign Exchange Contracts | Revenue | Cash flow hedging | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | (172) | (506) | ||
Foreign Exchange Contracts | Cost of goods sold | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Recognized in AOCI | 196 | (1,965) | (1,067) | (2,089) |
Foreign Exchange Contracts | Cost of goods sold | Cash flow hedging | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | (1,090) | (1,900) | ||
Foreign Exchange Contracts | Selling, general, and administrative | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Recognized in AOCI | 130 | (674) | (465) | (878) |
Foreign Exchange Contracts | Selling, general, and administrative | Cash flow hedging | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | (417) | (893) | ||
Foreign Exchange Contracts | Other expense, net | Cash flow hedging | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | 0 | 0 | ||
Foreign Exchange Contracts | Other income | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) derivative instruments not designated as cash flow hedges | 3,571 | 301 | (1,930) | 10,889 |
Foreign Exchange Contracts | Reclassified from accumulated other comprehensive income | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income | (1,714) | 6,278 | (3,369) | 4,835 |
Foreign Exchange Contracts | Reclassified from accumulated other comprehensive income | Revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income | (172) | 7,813 | (506) | 8,487 |
Foreign Exchange Contracts | Reclassified from accumulated other comprehensive income | Cost of goods sold | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income | (1,090) | (851) | (1,900) | (2,408) |
Foreign Exchange Contracts | Reclassified from accumulated other comprehensive income | Selling, general, and administrative | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income | (417) | (651) | (893) | (1,178) |
Interest Rate Contracts | Revenue | Fair value hedging | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | 0 | 0 | ||
Interest Rate Contracts | Revenue | Fair value hedging | Derivatives designated as hedging instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | 0 | 0 | ||
Interest Rate Contracts | Revenue | Cash flow hedging | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | 0 | 0 | ||
Interest Rate Contracts | Cost of goods sold | Fair value hedging | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | 0 | 0 | ||
Interest Rate Contracts | Cost of goods sold | Fair value hedging | Derivatives designated as hedging instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | 0 | 0 | ||
Interest Rate Contracts | Cost of goods sold | Cash flow hedging | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | 0 | 0 | ||
Interest Rate Contracts | Selling, general, and administrative | Fair value hedging | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | 0 | 0 | ||
Interest Rate Contracts | Selling, general, and administrative | Fair value hedging | Derivatives designated as hedging instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | 0 | 0 | ||
Interest Rate Contracts | Selling, general, and administrative | Cash flow hedging | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | 0 | 0 | ||
Interest Rate Contracts | Other expense, net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Recognized in AOCI | 2,394 | 0 | 2,394 | 0 |
Interest Rate Contracts | Other expense, net | Fair value hedging | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | 2,342 | (5,092) | ||
Interest Rate Contracts | Other expense, net | Fair value hedging | Derivatives designated as hedging instruments | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | (2,342) | 5,092 | ||
Interest Rate Contracts | Other expense, net | Cash flow hedging | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20 | (35) | (70) | ||
Interest Rate Contracts | Reclassified from accumulated other comprehensive income | Other expense, net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Reclassified from AOCI into Income | $ (35) | $ (33) | $ (70) | $ (66) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Jun. 30, 2019 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 980,751 | $ 994,738 | |
Work-in-process | 200,626 | 174,219 | |
Finished goods | 347,243 | 371,183 | |
Total inventories | $ 1,528,620 | $ 1,540,140 | [1] |
[1] | Derived from audited financial statements |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | Jun. 30, 2019 | [1] | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill | $ 1,484,824 | $ 1,484,824 | $ 1,484,597 | |||
Tax deductible goodwill | 61,100 | 61,100 | ||||
Intangible asset amortization expense | 16,500 | $ 36,300 | 32,700 | $ 72,700 | ||
Capitalized costs for internal-use software | $ 13,500 | $ 13,500 | ||||
[1] | Derived from audited financial statements |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross | $ 1,434,742 | $ 1,425,799 | |
Accumulated Amortization | (1,241,626) | (1,208,849) | |
Net | 193,116 | 216,950 | [1] |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 630,206 | 630,165 | |
Accumulated Amortization | (508,199) | (483,204) | |
Net | 122,007 | 146,961 | |
Existing technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 669,488 | 669,399 | |
Accumulated Amortization | (651,379) | (647,837) | |
Net | 18,109 | 21,562 | |
Patents and other intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 135,048 | 126,235 | |
Accumulated Amortization | (82,048) | (77,808) | |
Net | $ 53,000 | $ 48,427 | |
[1] | Derived from audited financial statements |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Estimated Future Amortization Expense of Intangible Assets (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Fiscal Year | |
2020 (remaining 6 months) | $ 32,742 |
2021 | 63,431 |
2022 | 59,093 |
2023 | 14,025 |
2024 | 7,324 |
Thereafter | 2,962 |
Net | $ 179,577 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Dec. 29, 2019 | Jun. 30, 2019 | |
Payables and Accruals [Abstract] | |||
Accrued compensation | $ 390,033 | $ 336,090 | |
Warranty reserves | 118,193 | 127,932 | |
Income and other taxes payable | 134,615 | 49,926 | |
Dividend payable | 163,510 | 158,868 | |
Other | 307,662 | 273,825 | |
Accrued expenses and other current liabilities | $ 1,114,013 | $ 946,641 | [1] |
[1] | Derived from audited financial statements |
LONG-TERM DEBT AND OTHER BORR_3
LONG-TERM DEBT AND OTHER BORROWINGS - Schedule of Outstanding Debt (Details) $ in Thousands | 6 Months Ended | |||||
Dec. 29, 2019USD ($)d | Jun. 30, 2019USD ($) | Mar. 04, 2019 | Jun. 07, 2016 | Mar. 12, 2015 | Jun. 30, 2012 | |
Debt Instrument [Line Items] | ||||||
Total debt outstanding, at par | $ 4,467,091 | $ 4,512,349 | ||||
Unamortized discount | (60,332) | (73,191) | ||||
Fair value adjustment - interest rate contracts | 1,300 | (3,612) | ||||
Unamortized bond issuance costs | (5,096) | (5,535) | ||||
Total debt outstanding, at carrying value | 4,402,963 | 4,430,011 | ||||
Current portion of long-term debt, and commercial paper | 628,614 | 662,308 | ||||
Long-term debt | 3,774,349 | 3,767,703 | ||||
Cumulative amount of fair value hedging adjustment for discontinued hedging relationships | $ 2,800 | |||||
Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (2041 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes interest rate | 2.625% | |||||
Senior notes | Fixed-rate 2.75% Senior Notes Due March 15, 2020 (2020 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes interest rate | 2.75% | 2.75% | ||||
Amount | $ 500,000 | $ 500,000 | ||||
Effective Interest Rate | 2.88% | 2.88% | ||||
Senior notes | Fixed-rate 2.80% Senior Notes Due June 15, 2021 (2021 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes interest rate | 2.80% | 2.80% | ||||
Amount | $ 800,000 | $ 800,000 | ||||
Effective Interest Rate | 2.95% | 2.95% | ||||
Senior notes | Fixed-rate 3.80% Senior Notes Due March 15, 2025 (2025 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes interest rate | 3.80% | 3.80% | ||||
Amount | $ 500,000 | $ 500,000 | ||||
Effective Interest Rate | 3.87% | 3.87% | ||||
Senior notes | Fixed-rate 3.75% Senior Notes Due March 15, 2026 (2026 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes interest rate | 3.75% | 3.75% | ||||
Amount | $ 750,000 | $ 750,000 | ||||
Effective Interest Rate | 3.86% | 3.86% | ||||
Senior notes | Fixed-rate 4.00% Senior Notes Due March 15, 2029 (2029 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes interest rate | 4.00% | 4.00% | ||||
Amount | $ 1,000,000 | $ 1,000,000 | ||||
Effective Interest Rate | 4.09% | 4.09% | ||||
Senior notes | Fixed-rate 4.875% Senior Notes Due March 15, 2049 (2049 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes interest rate | 4.875% | 4.875% | ||||
Amount | $ 750,000 | $ 750,000 | ||||
Effective Interest Rate | 4.93% | 4.93% | ||||
Convertible debt | Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (2041 Notes) | ||||||
Debt Instrument [Line Items] | ||||||
Senior notes interest rate | 2.625% | |||||
Amount | $ 167,091 | $ 212,349 | ||||
Effective Interest Rate | 4.28% | 4.28% | ||||
Stock price percentage of conversion price | 130.00% | |||||
Number of days on which common stock sale price was greater than or equal to 130% of conversion price, in a period of 30 consecutive trading days ending on the last trading day of the preceding the quarter | d | 20 | |||||
Number of consecutive trading days period required | d | 30 |
LONG-TERM DEBT AND OTHER BORR_4
LONG-TERM DEBT AND OTHER BORROWINGS - Convertible Senior Notes (Details) - Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (2041 Notes) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2012USD ($) | Mar. 29, 2020USD ($) | Dec. 29, 2019USD ($) | Dec. 29, 2019USD ($)d | |
Debt Instrument [Line Items] | ||||
Principal amount | $ | $ 700,000,000 | |||
Senior notes interest rate | 2.625% | |||
Convertible debt | ||||
Debt Instrument [Line Items] | ||||
Senior notes interest rate | 2.625% | 2.625% | ||
Stock price percentage of conversion price | 130.00% | |||
Number of days on which common stock sale price was greater than or equal to 130% of conversion price, in a period of 30 consecutive trading days ending on the last trading day of the preceding the quarter | 20 | |||
Number of consecutive trading days period required | 30 | |||
Conversion of notes | $ | $ 17,200,000 | $ 45,300,000 | ||
Convertible debt | Subsequent event | Conversion of 2041 notes | ||||
Debt Instrument [Line Items] | ||||
Conversion of notes | $ | $ 116,600,000 | |||
Convertible debt | Redeemable | ||||
Debt Instrument [Line Items] | ||||
Stock price percentage of conversion price | 150.00% | |||
Number of days on which common stock sale price was greater than or equal to 130% of conversion price, in a period of 30 consecutive trading days ending on the last trading day of the preceding the quarter | 20 | |||
Number of consecutive trading days period required | 30 | |||
Maximum | ||||
Debt Instrument [Line Items] | ||||
Maximum amount of contingent interest rate | 0.60% |
LONG-TERM DEBT AND OTHER BORR_5
LONG-TERM DEBT AND OTHER BORROWINGS - Components of Convertible Senior Notes (Details) - 2041 Notes $ / shares in Units, shares in Thousands | 6 Months Ended | 12 Months Ended |
Dec. 29, 2019USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | |
Debt Instrument [Line Items] | ||
Remaining amortization period (years) | 21 years 4 months 24 days | 21 years 10 months 24 days |
Fair Value of Notes (Level 2) | $ 1,532,188,000 | |
Conversion rate (shares of common stock per $1,000 principal amount of notes) | 0.0312089 | |
Conversion rate (shares of common stock per $1,000 principal amount of notes) | $ 1,000 | |
Conversion price (per share of common stock) (in usd per share) | $ / shares | $ 32.04 | |
If-converted value in excess of par value | $ 1,364,475,000 | |
Estimated share dilution using average quarterly stock price $264.15 per share | shares | 4,582 | |
Share price (usd per share) | $ / shares | $ 264.15 | |
Permanent Equity | ||
Debt Instrument [Line Items] | ||
Carrying amount of equity component, net of tax | $ 161,271,000 | $ 160,604,000 |
Temporary Equity | ||
Debt Instrument [Line Items] | ||
Carrying amount of equity component, net of tax | $ 38,304,000 | $ 49,439,000 |
LONG-TERM DEBT AND OTHER BORR_6
LONG-TERM DEBT AND OTHER BORROWINGS - Senior Notes (Details) - Senior notes - USD ($) | Mar. 12, 2015 | Dec. 29, 2019 | Mar. 04, 2019 | Jun. 07, 2016 |
Debt Instrument [Line Items] | ||||
Debt instrument, redemption price percent | 100.00% | |||
2026 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 750,000,000 | |||
Senior notes interest rate | 3.75% | 3.75% | ||
2029 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 1,000,000,000 | |||
Senior notes interest rate | 4.00% | 4.00% | ||
2049 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 750,000,000 | |||
Senior notes interest rate | 4.875% | 4.875% | ||
2020 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 500,000,000 | |||
Senior notes interest rate | 2.75% | 2.75% | ||
2025 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 500,000,000 | |||
Senior notes interest rate | 3.80% | 3.80% | ||
2021 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 800,000,000 | |||
Senior notes interest rate | 2.80% | 2.80% | ||
Debt instrument, redemption price upon occurrence of certain events, percent | 101.00% |
LONG-TERM DEBT AND OTHER BORR_7
LONG-TERM DEBT AND OTHER BORROWINGS - Schedule of Additional Senior Notes Information (Details) $ in Thousands | 6 Months Ended |
Dec. 29, 2019USD ($) | |
2020 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (years) | 2 months 12 days |
2020 Notes | Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 500,410 |
2021 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (years) | 1 year 6 months |
2021 Notes | Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 809,552 |
2025 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (years) | 5 years 2 months 12 days |
2025 Notes | Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 536,190 |
2026 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (years) | 6 years 2 months 12 days |
2026 Notes | Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 805,748 |
2029 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (years) | 9 years 2 months 12 days |
2029 Notes | Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 1,104,060 |
2049 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (years) | 29 years 2 months 12 days |
2049 Notes | Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 947,325 |
LONG-TERM DEBT AND OTHER BORR_8
LONG-TERM DEBT AND OTHER BORROWINGS - Commercial Paper Program (Details) - Commercial paper - USD ($) | Dec. 29, 2019 | Jun. 30, 2019 | Nov. 13, 2017 |
Line of Credit Facility [Line Items] | |||
Unsecured private placement commercial paper notes, maximum aggregate principal | $ 1,250,000,000 | ||
Borrowings outstanding | $ 0 | $ 0 |
LONG-TERM DEBT AND OTHER BORR_9
LONG-TERM DEBT AND OTHER BORROWINGS - Revolving Credit Facility (Details) - Revolving credit facility - USD ($) | Feb. 25, 2019 | Dec. 29, 2019 |
Extinguishment of Debt [Line Items] | ||
Revolving unsecured credit facility | $ 1,250,000,000 | |
Additional increase in the facility, available expansion | 600,000,000 | |
Revolving unsecured credit facility, available expansion | $ 1,850,000,000 | |
Borrowings outstanding | $ 0 | |
Federal Funds Rate | ||
Extinguishment of Debt [Line Items] | ||
Variable interest spread | 0.50% | |
One-month LIBOR | ||
Extinguishment of Debt [Line Items] | ||
Variable interest spread | 1.00% | |
One-month LIBOR | Minimum | ||
Extinguishment of Debt [Line Items] | ||
Variable interest spread | 0.00% | |
One-month LIBOR | Maximum | ||
Extinguishment of Debt [Line Items] | ||
Variable interest spread | 0.50% | |
LIBOR | Minimum | ||
Extinguishment of Debt [Line Items] | ||
Variable interest spread | 0.90% | |
LIBOR | Maximum | ||
Extinguishment of Debt [Line Items] | ||
Variable interest spread | 1.50% |
LONG-TERM DEBT AND OTHER BOR_10
LONG-TERM DEBT AND OTHER BORROWINGS - Schedule of Recognized Interest Cost Relating to Both Contractual Interest Coupon and Amortization of Discount on Liability Component of Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | |
Debt Disclosure [Abstract] | ||||
Contractual interest coupon | $ 40,665 | $ 16,550 | $ 81,787 | $ 33,977 |
Amortization of interest discount | 1,158 | 887 | 2,393 | 1,787 |
Amortization of issuance costs | 416 | 329 | 830 | 658 |
Effect of interest rate contracts, net | 155 | 777 | 830 | 1,530 |
Total interest cost recognized | $ 42,394 | $ 18,543 | $ 85,840 | $ 37,952 |
LEASES - Schedule of Other Oper
LEASES - Schedule of Other Operating Cost and Expense, by Component (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 29, 2019 | Dec. 29, 2019 | |
Financing lease cost: | ||
Amortization of right-of-use assets | $ 891 | $ 1,819 |
Interest on lease liabilities | 115 | 265 |
Total finance lease cost | 1,006 | 2,084 |
Operating lease cost | 10,421 | 21,185 |
Variable lease cost | $ 22,071 | $ 41,018 |
LEASES - Supplemental Cash Flow
LEASES - Supplemental Cash Flows (Details) $ in Thousands | 6 Months Ended |
Dec. 29, 2019USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows paid for operating leases | $ 19,384 |
Financing cash flows paid for principal portion of finance leases | 1,647 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 11,968 |
Finance leases | $ 1,357 |
LEASES - Supplemental Balance S
LEASES - Supplemental Balance Sheet (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Operating leases | |
Other assets | $ 101,605 |
Accrued expenses and other current liabilities | 36,480 |
Other long-term liabilities | 70,442 |
Total operating lease liabilities | 106,922 |
Finance Leases | |
Property and Equipment, net | 18,684 |
Current portion of long-term debt and lease liabilities | 3,677 |
Long-term debt and lease liabilities | 11,719 |
Total finance lease liabilities | $ 15,396 |
LEASES - Weighted-Average Remai
LEASES - Weighted-Average Remaining Lease Term and Discount Rate (Details) | Dec. 29, 2019 |
Leases [Abstract] | |
Weighted-Average Remaining Lease Term, Operating leases | 4 years 4 months 24 days |
Weighted-Average Discount Rate, Operating leases | 2.57% |
Weighted-Average Remaining Lease Term, Finance leases | 4 years 3 months 18 days |
Weighted-Average Discount Rate, Finance leases | 2.82% |
LEASES - Operating Lease Liabil
LEASES - Operating Lease Liability (Details) $ in Thousands | Dec. 29, 2019USD ($) |
Operating Leases | |
2020 (remaining 6 months) | $ 19,237 |
2021 | 34,265 |
2022 | 18,256 |
2023 | 11,659 |
2024 | 8,591 |
Thereafter | 20,809 |
Total lease payments | 112,817 |
Total lease payments | (5,895) |
Total | 106,922 |
Finance Leases | |
2020 (remaining 6 months) | 2,022 |
2021 | 3,548 |
2022 | 6,208 |
2023 | 1,200 |
2024 | 841 |
Thereafter | 2,920 |
Total lease payments | 16,739 |
Less imputed interest | (1,343) |
Total | $ 15,396 |
LEASES - Narrative (Details)
LEASES - Narrative (Details) - USD ($) | 6 Months Ended | ||
Dec. 29, 2019 | Jun. 30, 2019 | [1] | |
Guarantor Obligations [Line Items] | |||
Restricted cash and investments | $ 253,907,000 | $ 255,177,000 | |
Operating Lease Cash Collateral | |||
Guarantor Obligations [Line Items] | |||
Restricted cash and investments | 250,000,000 | ||
California Operating Leases | |||
Guarantor Obligations [Line Items] | |||
Residual value of operating lease, maximum | $ 220,400,000 | ||
Maximum percentage of aggregate investment value guaranteed | 100.00% | ||
Guarantee obligation maximum exposure | $ 250,000,000 | ||
[1] | Derived from audited financial statements |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) $ in Millions | Dec. 29, 2019USD ($) |
Letters of Credit | |
Loss Contingencies [Line Items] | |
Guarantee obligation maximum exposure | $ 58.4 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Changes in Product Warranty Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | |
Changes in Product Warranty Reserve | ||||
Balance at beginning of period | $ 114,470 | $ 157,363 | $ 127,932 | $ 169,407 |
Warranties issued during the period | 40,419 | 36,853 | 70,899 | 72,793 |
Settlements made during the period | (31,848) | (44,199) | (66,916) | (89,506) |
Changes in liability for pre-existing warranties | (4,848) | (2,262) | (13,722) | (4,939) |
Balance at end of period | $ 118,193 | $ 147,755 | $ 118,193 | $ 147,755 |
STOCK REPURCHASE PROGRAM - Addi
STOCK REPURCHASE PROGRAM - Additional Information (Details) $ / shares in Units, shares in Thousands | Nov. 22, 2019USD ($)financial_institutionagreementshares | Jun. 04, 2019USD ($)financial_institutionagreementshares | Nov. 30, 2019$ / sharesshares | Nov. 30, 2018USD ($) | Dec. 29, 2019USD ($)$ / sharesshares | Sep. 29, 2019$ / sharesshares | Dec. 29, 2019USD ($)shares | Dec. 29, 2019shares |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Net shares of settlements to cover tax withholding obligations (shares) | 18 | 32 | ||||||
Amount paid for shares under net share settlements | $ | $ 4,900,000 | $ 7,800,000 | ||||||
Stock repurchase program | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Board authorized increase | $ | $ 5,000,000,000 | |||||||
Number of shares repurchased (shares) | 3,224 | 383 | 3,000,000 | |||||
Average price paid per share (usd per share) | $ / shares | $ 0 | $ 196.34 | ||||||
Stock repurchase program, open Market trading | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Number of shares repurchased (shares) | 500,000 | |||||||
Stock repurchase program, accelerated share repurchase agreements | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Number of shares repurchased (shares) | 2,500,000 | |||||||
November 2019 ASR | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Number of shares repurchased (shares) | 2,900 | |||||||
Number of accelerated share repurchase agreements | agreement | 2 | |||||||
Number of financial institutions | financial_institution | 2 | |||||||
Accelerated Share Repurchases, Authorized Amount | $ | $ 1,000,000,000 | |||||||
Percent of prepayment divided by closing stock price | 75.00% | |||||||
June 2019 ASR | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Number of shares repurchased (shares) | 3,100 | 361 | ||||||
Number of accelerated share repurchase agreements | agreement | 4 | |||||||
Number of financial institutions | financial_institution | 2 | |||||||
Accelerated Share Repurchases, Authorized Amount | $ | $ 750,000,000 | |||||||
Percent of prepayment divided by closing stock price | 75.00% | |||||||
Average price paid per share (usd per share) | $ / shares | $ 215.60 |
STOCK REPURCHASE PROGRAM - Repu
STOCK REPURCHASE PROGRAM - Repurchases Under the Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 14 Months Ended | ||||
Dec. 29, 2019 | Sep. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Jun. 30, 2019 | |
Equity, Class of Treasury Stock [Line Items] | |||||||
Total Cost of Repurchase | $ 1,005,343 | $ 1,361 | $ 1,083,459 | $ 1,737,302 | |||
Stock repurchase program | |||||||
Equity, Class of Treasury Stock [Line Items] | |||||||
Total Number of Shares Repurchased | 3,224 | 383 | 3,000,000 | ||||
Total Cost of Repurchase | $ 1,000,475 | $ 75,196 | |||||
Average Price Paid Per Share (usd per share) | $ 0 | $ 196.34 | |||||
Amount Available Under Repurchase Program | $ 1,957,829 | $ 2,958,304 | $ 1,957,829 | $ 1,957,829 | $ 3,033,500 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss (Details) $ in Thousands | 6 Months Ended | |
Dec. 29, 2019USD ($) | ||
Change in Accumulated Other Comprehensive Loss | ||
Beginning balance | $ 4,673,865 | [1] |
Other comprehensive (loss) income before reclassifications | 79 | |
(Gains) losses reclassified from accumulated other comprehensive income (loss) to net income | 3,704 | |
Other comprehensive income (loss), net of tax | 3,783 | |
Ending balance | 4,379,429 | |
Accumulated Foreign Currency Translation Adjustment | ||
Change in Accumulated Other Comprehensive Loss | ||
Beginning balance | (39,370) | |
Other comprehensive (loss) income before reclassifications | (1,174) | |
(Gains) losses reclassified from accumulated other comprehensive income (loss) to net income | (13) | |
Other comprehensive income (loss), net of tax | (1,187) | |
Ending balance | (40,557) | |
Accumulated Unrealized Gain or Loss on Cash flow hedges | ||
Change in Accumulated Other Comprehensive Loss | ||
Beginning balance | (4,330) | |
Other comprehensive (loss) income before reclassifications | 3,388 | |
(Gains) losses reclassified from accumulated other comprehensive income (loss) to net income | 2,734 | |
Other comprehensive income (loss), net of tax | 6,122 | |
Ending balance | 1,792 | |
Accumulated Unrealized Holding Gain or Loss on Available-For-Sale Investments | ||
Change in Accumulated Other Comprehensive Loss | ||
Beginning balance | 2,146 | |
Other comprehensive (loss) income before reclassifications | (2,713) | |
(Gains) losses reclassified from accumulated other comprehensive income (loss) to net income | 983 | |
Other comprehensive income (loss), net of tax | (1,730) | |
Ending balance | 416 | |
Accumulated Unrealized Components of Defined Benefit Plans | ||
Change in Accumulated Other Comprehensive Loss | ||
Beginning balance | (22,476) | |
Other comprehensive (loss) income before reclassifications | 578 | |
(Gains) losses reclassified from accumulated other comprehensive income (loss) to net income | 0 | |
Other comprehensive income (loss), net of tax | 578 | |
Ending balance | (21,898) | |
Total | ||
Change in Accumulated Other Comprehensive Loss | ||
Beginning balance | (64,030) | |
Ending balance | $ (60,247) | |
[1] | Derived from audited financial statements |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss Footnotes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2019 | Dec. 23, 2018 | Dec. 29, 2019 | Dec. 23, 2018 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | $ 2,583,501 | $ 2,522,673 | $ 4,749,247 | $ 4,853,364 |
Cost of goods sold | 1,403,857 | 1,377,640 | 2,587,893 | 2,650,133 |
Selling, general, and administrative | $ 174,272 | $ 169,098 | 331,700 | $ 343,873 |
Accumulated Unrealized Gain or Loss on Cash flow hedges | Reclassified from accumulated other comprehensive income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Revenue | (400) | |||
Cost of goods sold | 1,600 | |||
Selling, general, and administrative | $ 700 |
Uncategorized Items - lrcx10q2q
Label | Element | Value |
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | $ 171,196,000 |
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | 163,510,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 255,292,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 253,907,000 |
Accounting Standards Update 2016-16 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (443,000) |
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (443,000) |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 139,355,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 139,355,000 |