Cover Page
Cover Page - shares shares in Thousands | 3 Months Ended | |
Sep. 24, 2023 | Oct. 19, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Sep. 24, 2023 | |
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 $0.001 Per Share | |
Trading Symbol | LRCX | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 131,792 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Entity Central Index Key | 0000707549 | |
Current Fiscal Year End Date | --06-30 |
CONDENSED CONSOLIDATED STATEMEN
CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands | 3 Months Ended | |
Sep. 24, 2023 | Sep. 25, 2022 | |
Income Statement [Abstract] | ||
Revenue | $ 3,482,062,000 | $ 5,074,121,000 |
Cost of goods sold | 1,819,420,000 | 2,737,286,000 |
Restructuring charges, net - cost of goods sold | 7,940,000 | 0 |
Total cost of goods sold | 1,827,360,000 | 2,737,286,000 |
Gross margin | 1,654,702,000 | 2,336,835,000 |
Research and development | 422,629,000 | 433,375,000 |
Selling, general, and administrative | 207,023,000 | 205,620,000 |
Restructuring charges, net - operating expenses | 2,021,000 | 0 |
Total operating expenses | 631,673,000 | 638,995,000 |
Operating income | 1,023,029,000 | 1,697,840,000 |
Other income (expense), net | 2,601,000 | (43,095,000) |
Income before income taxes | 1,025,630,000 | 1,654,745,000 |
Income tax expense | (138,232,000) | (228,866,000) |
Net income | $ 887,398,000 | $ 1,425,879,000 |
Net income per share: | ||
Basic (in dollars per share) | $ 6.69 | $ 10.42 |
Diluted (in dollars per share) | $ 6.66 | $ 10.39 |
Number of shares used in per share calculations: | ||
Basic (in shares) | 132,584 | 136,891 |
Diluted (in shares) | 133,166 | 137,208 |
CONDENSED CONSOLIDATED STATEM_2
CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2023 | Sep. 25, 2022 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 887,398 | $ 1,425,879 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment | (20,678) | (33,609) |
Cash flow hedges: | ||
Net unrealized gains during the period | 8,598 | 18,803 |
Net gains reclassified into net income | (8,917) | (9,297) |
Net change | (319) | 9,506 |
Available-for-sale investments: | ||
Net unrealized gains during the period | 182 | 80 |
Net gains reclassified into net income | (10) | (53) |
Net change | 172 | 27 |
Defined benefit plans, net change in unrealized component | 181 | 293 |
Other comprehensive loss, net of tax | (20,644) | (23,783) |
Comprehensive income | $ 866,754 | $ 1,402,096 |
CONDENSED CONSOLIDATED BALANCE
CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands | Sep. 24, 2023 | Jun. 25, 2023 | [1] |
ASSETS | |||
Cash and cash equivalents | $ 5,126,150 | $ 5,337,056 | |
Investments | 30,557 | 37,641 | |
Accounts receivable, less allowance of $5,255 as of September 24, 2023, and $5,344 as of June 25, 2023 | 2,810,953 | 2,823,376 | |
Inventories | 4,747,781 | 4,816,190 | |
Prepaid expenses and other current assets | 278,121 | 214,149 | |
Total current assets | 12,993,562 | 13,228,412 | |
Property and equipment, net | 2,110,511 | 1,856,672 | |
Goodwill | 1,626,382 | 1,622,489 | |
Intangible assets, net | 157,618 | 168,454 | |
Other assets | 1,650,384 | 1,905,616 | |
Total assets | 18,538,457 | 18,781,643 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Trade accounts payable | 528,163 | 470,702 | |
Accrued expenses and other current liabilities | 2,120,055 | 2,010,637 | |
Deferred profit | 1,595,098 | 1,695,221 | |
Current portion of long-term debt and finance lease obligations | 3,861 | 8,358 | |
Total current liabilities | 4,247,177 | 4,184,918 | |
Long-term debt and finance lease obligations, less current portion | 4,980,460 | 5,003,183 | |
Income taxes payable | 780,511 | 882,084 | |
Other long-term liabilities | 482,979 | 501,286 | |
Total liabilities | 10,491,127 | 10,571,471 | |
Commitments and contingencies (refer to Note 13) | |||
Stockholders’ equity: | |||
Preferred stock, at par value of $0.001 per share; authorized, 5,000 shares, none outstanding | 0 | 0 | |
Common stock, at par value of $0.001 per share; authorized, 400,000 shares as of September 24, 2023 and June 25, 2023; issued and outstanding, 132,072 shares as of September 24, 2023, and 133,297 shares as of June 25, 2023 | 132 | 133 | |
Additional paid-in capital | 7,879,031 | 7,809,002 | |
Treasury stock, at cost; 162,646 shares as of September 24, 2023, and 161,380 shares as of June 25, 2023 | (22,365,872) | (21,530,353) | |
Accumulated other comprehensive loss | (121,350) | (100,706) | |
Retained earnings | 22,655,389 | 22,032,096 | |
Total stockholders’ equity | 8,047,330 | 8,210,172 | |
Total liabilities and stockholders’ equity | $ 18,538,457 | $ 18,781,643 | |
[1]Derived from audited financial statements |
CONDENSED CONSOLIDATED BALANC_2
CONDENSED CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands | Sep. 24, 2023 | Jun. 25, 2023 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5,255 | $ 5,344 |
Preferred stock, par value (in dollars 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 (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 132,072,000 | 133,297,000 |
Common stock, shares outstanding (in shares) | 132,072,000 | 133,297,000 |
Treasury stock (in shares) | 162,646,000 | 161,380,000 |
CONDENSED CONSOLIDATED STATEM_3
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 24, 2023 | Sep. 25, 2022 | ||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 887,398 | $ 1,425,879 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 90,479 | 75,751 | |
Deferred income taxes | (24,238) | (133,616) | |
Equity-based compensation expense | 67,211 | 71,110 | |
Other, net | (150) | (2,751) | |
Changes in operating assets and liabilities | (69,537) | (246,785) | |
Net cash provided by operating activities | 951,163 | 1,189,588 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures and intangible assets | (76,992) | (140,063) | |
Proceeds from maturities of available-for-sales securities | 7,275 | 14,695 | |
Other, net | (4,966) | (2,435) | |
Net cash used for investing activities | (74,683) | (127,803) | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Principal payments on debt, including finance lease obligations | (253,109) | (1,854) | |
Treasury stock purchases | (843,238) | (109,779) | |
Dividends paid | (230,332) | (205,615) | |
Proceeds from issuance of common stock | 2,818 | 6,796 | |
Other, net | (2,151) | (489) | |
Net cash used for financing activities | (1,326,012) | (310,941) | |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (11,031) | (16,925) | |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (460,563) | 733,919 | |
Cash, cash equivalents, and restricted cash at beginning of period (1) | [1] | 5,587,372 | 3,773,535 |
Cash, cash equivalents, and restricted cash at end of period (1) | [1] | 5,126,809 | 4,507,454 |
Schedule of non-cash transactions: | |||
Accrued payables for stock repurchases | 37,768 | 88 | |
Accrued payables for capital expenditures | 38,668 | 79,173 | |
Dividends payable | 265,040 | 235,980 | |
Transfers of finished goods inventory to property and equipment | 18,014 | 20,798 | |
Reconciliation of cash, cash equivalents, and restricted cash | |||
Cash and cash equivalents | 5,126,150 | 4,256,499 | |
Restricted cash and cash equivalents (1) | [1] | 659 | 250,955 |
Total cash, cash equivalents, and restricted cash | [1] | $ 5,126,809 | $ 4,507,454 |
[1]Restricted cash is reported within Other assets, in the Condensed Consolidated Balance Sheets |
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 (in shares) at Jun. 26, 2022 | 136,975 | ||||||
Beginning balance at Jun. 26, 2022 | $ 6,278,366 | $ 137 | $ 7,414,916 | $ (19,481,429) | $ (109,982) | $ 18,454,724 | |
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of common stock (in shares) | 85 | ||||||
Issuance of common stock | 6,796 | 6,796 | |||||
Purchase of treasury stock (in shares) | (686) | ||||||
Purchase of treasury stock | (109,821) | $ (1) | (109,820) | ||||
Equity-based compensation expense | 71,110 | 71,110 | |||||
Net income | 1,425,879 | 1,425,879 | |||||
Other comprehensive loss | (23,783) | (23,783) | |||||
Cash dividends declared | (235,980) | (235,980) | |||||
Ending balance (in shares) at Sep. 25, 2022 | 136,374 | ||||||
Ending balance at Sep. 25, 2022 | $ 7,412,567 | $ 136 | 7,492,822 | (19,591,249) | (133,765) | 19,644,623 | |
Beginning balance (in shares) at Jun. 25, 2023 | 133,297 | 133,297 | |||||
Beginning balance at Jun. 25, 2023 | $ 8,210,172 | [1] | $ 133 | 7,809,002 | (21,530,353) | (100,706) | 22,032,096 |
Increase (Decrease) in Stockholders' Equity | |||||||
Issuance of common stock (in shares) | 41 | ||||||
Issuance of common stock | 2,818 | 2,818 | |||||
Purchase of treasury stock (in shares) | (1,266) | ||||||
Purchase of treasury stock | (835,520) | $ (1) | (835,519) | ||||
Equity-based compensation expense | 67,211 | 67,211 | |||||
Net income | 887,398 | 887,398 | |||||
Other comprehensive loss | (20,644) | (20,644) | |||||
Cash dividends declared | $ (264,105) | (264,105) | |||||
Ending balance (in shares) at Sep. 24, 2023 | 132,072 | 132,072 | |||||
Ending balance at Sep. 24, 2023 | $ 8,047,330 | $ 132 | $ 7,879,031 | $ (22,365,872) | $ (121,350) | $ 22,655,389 | |
[1]Derived from audited financial statements |
CONDENSED CONSOLIDATED STATEM_5
CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |
Sep. 24, 2023 | Sep. 25, 2022 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share (in dollars per share) | $ 2 | $ 1.725 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Sep. 24, 2023 | |
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 25, 2023, which are included in the Company’s Annual Report on Form 10-K as of and for the year ended June 25, 2023 (the “2023 Form 10-K”). 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 30, 2024 and includes 53 weeks. The quarters ended September 24, 2023 (the “September 2023 quarter”) and September 25, 2022 included 13 weeks. Reclassification: Certain amounts for the June 25, 2023 Condensed Consolidated Balance Sheet and notes to the financial statements have been reclassified to conform to the current period presentation. |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Sep. 24, 2023 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted or Effective The Company has not adopted any new accounting standards during the first quarter of fiscal year 2024 that have a material impact on the Company’s Condensed Consolidated Financial Statements. Updates Not Yet Effective There are no new accounting standards not yet adopted or effective that are expected to have a material impact on the Company’s Condensed Consolidated Financial Statements. |
REVENUE
REVENUE | 3 Months Ended |
Sep. 24, 2023 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE 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 between system and its customer support-related revenue: Three Months Ended September 24, September 25, (In thousands) Systems revenue $ 2,056,655 $ 3,181,987 Customer support-related revenue and other 1,425,407 1,892,134 $ 3,482,062 $ 5,074,121 Systems revenue includes sales of new leading-edge equipment in deposition, etch and clean markets. Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from the Company’s Reliant product line. The following table presents the Company’s revenues disaggregated by geographic region: Three Months Ended September 24, September 25, (In thousands) China $ 1,687,311 $ 1,530,475 Korea 547,945 855,378 Japan 324,520 458,693 United States 282,224 304,977 Taiwan 242,490 1,120,946 Europe 238,469 262,588 Southeast Asia 159,103 541,064 $ 3,482,062 $ 5,074,121 The following table presents the percentages of leading- and non-leading-edge equipment and upgrade revenue to each of the primary markets the Company serves: Three Months Ended September 24, September 25, Memory 38 % 52 % Foundry 36 % 34 % Logic/integrated device manufacturing 26 % 14 % Deferred Revenue Revenue of $561.8 million included in deferred profit at June 25, 2023 was recognized during the three months ended September 24, 2023, representing 31% of the $1,837.9 million of deferred revenue as of June 25, 2023. The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of September 24, 2023 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 $ 1,421,440 $ 226,972 (1) $ 42,035 (1) $ 1,690,447 (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. |
EQUITY-BASED COMPENSATION PLANS
EQUITY-BASED COMPENSATION PLANS | 3 Months Ended |
Sep. 24, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
EQUITY-BASED COMPENSATION PLANS | EQUITY-BASED COMPENSATION PLANS The Lam Research Corporation 2015 Stock Incentive Plan, as amended, 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 option, 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 September 24, September 25, (in thousands) Equity-based compensation expense $ 67,211 $ 71,110 Income tax benefit recognized related to equity-based compensation expense $ 9,564 $ 11,528 |
OTHER INCOME (EXPENSE), NET
OTHER INCOME (EXPENSE), NET | 3 Months Ended |
Sep. 24, 2023 | |
Other Income and Expenses [Abstract] | |
OTHER INCOME (EXPENSE), NET | OTHER INCOME (EXPENSE), NET The significant components of other income (expense), net, are as follows: Three Months Ended September 24, September 25, (in thousands) Interest income $ 56,564 $ 15,056 Interest expense (45,331) (46,052) (Losses) gains on deferred compensation plan-related assets, net (2,901) (12,726) Foreign exchange gains (losses), net 1,269 6,821 Other, net (7,000) (6,194) $ 2,601 $ (43,095) |
INCOME TAX EXPENSE
INCOME TAX EXPENSE | 3 Months Ended |
Sep. 24, 2023 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX EXPENSE | INCOME TAX EXPENSE The Company’s provision for income taxes and effective tax rate are as follows: Three Months Ended September 24, September 25, (in thousands, except percentages) Income tax expense $ 138,232 $ 228,866 Effective tax rate 13.5 % 13.8 % The difference between the U.S. federal statutory tax rate of 21% and the Company’s effective tax rate for the three months ended September 24, 2023 and September 25, 2022 was primarily due to income in lower tax jurisdictions. On August 16, 2022, the Inflation Reduction Act (the “IRA”) was signed into law. In general, the provisions of the IRA are effective beginning with the Company’s fiscal year 2024, with certain exceptions. The IRA includes a new 15% corporate minimum tax. The Company has evaluated the potential impacts of the IRA and does not expect it to have a material impact on the effective tax rate. However, the Company expects future guidance from the Treasury Department and will further analyze when the guidance is issued. The Internal Revenue Service (“IRS”) is examining the Company’s U.S. federal income tax returns for the fiscal years ended June 30, 2019, and June 28, 2020. To date, 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 uncertain tax positions as a result of tax examinations or lapses of statutes of limitation. The change in uncertain tax positions as a result of lapses of statutes of limitation may range up to $9.8 million. |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Sep. 24, 2023 | |
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, and convertible notes. The following table reconciles the inputs to the basic and diluted computations for net income per share. Three Months Ended September 24, September 25, (in thousands, except per share data) Numerator: Net income $ 887,398 $ 1,425,879 Denominator: Basic average shares outstanding 132,584 136,891 Effect of potential dilutive securities: Employee stock plans 582 317 Diluted average shares outstanding 133,166 137,208 Net income per share - basic $ 6.69 $ 10.42 Net income per share - diluted $ 6.66 $ 10.39 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 impact from potentially dilutive securities, including options and RSUs, was not material for the three months ended September 24, 2023 and September 25, 2022. |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Sep. 24, 2023 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The Company’s investment strategies and investment and fair value policies are unchanged from those disclosed in Note 9, “Financial Instruments,” to our Consolidated Financial Statements in Part II, Item 8 of our 2023 Form 10-K. The financial statement impacts to the Condensed Consolidated Statement of Operations from debt and equity investments were not material as of and for the three months ended September 24, 2023 and September 25, 2022. Debt and Equity Investments measured at fair value on a recurring basis The following tables set forth the Company’s cash, cash equivalents, investments, and other assets measured at fair value on a recurring basis as of September 24, 2023, and June 25, 2023: September 24, 2023 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Other (in thousands) Level 1: Money market funds $ 1,657,890 $ — $ — $ 1,657,890 $ 1,657,890 $ — $ — Mutual funds 100,113 16,826 (1,973) 114,966 — — 114,966 Level 1 Total 1,758,003 16,826 (1,973) 1,772,856 1,657,890 — 114,966 Level 2: Corporate notes and bonds 30,727 2 (172) 30,557 — 30,557 — Level 2 Total 30,727 2 (172) 30,557 — 30,557 — Total subject to fair value hierarchy $ 1,788,730 $ 16,828 $ (2,145) $ 1,803,413 Cash $ 1,772,866 $ 1,772,207 $ — $ 659 Time deposits 1,696,053 1,696,053 — — Total $ 5,272,332 $ 5,126,150 $ 30,557 $ 115,625 June 25, 2023 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Other (in thousands) Level 1: Money market funds $ 2,223,642 $ — $ — $ 2,223,642 $ 2,223,642 $ — $ — Mutual funds 96,646 12,092 (2,069) 106,669 — — 106,669 Level 1 Total 2,320,288 12,092 (2,069) 2,330,311 2,223,642 — 106,669 Level 2: Corporate notes and bonds 38,033 — (392) 37,641 — 37,641 — Level 2 Total 38,033 — (392) 37,641 — 37,641 — Total subject to fair value hierarchy $ 2,358,321 $ 12,092 $ (2,461) $ 2,367,952 Cash $ 2,132,811 $ 2,132,522 $ — $ 289 Time deposits 1,230,919 980,892 — 250,027 Total $ 5,731,682 $ 5,337,056 $ 37,641 $ 356,985 The following is an analysis of the Company’s investments in unrealized loss positions: September 24, 2023 Unrealized Losses Unrealized Losses Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in thousands) Mutual funds $ 599 $ (6) $ 21,788 $ (1,967) $ 22,387 $ (1,973) Corporate notes and bonds 5,378 (1) 17,834 (171) 23,212 (172) $ 5,977 $ (7) $ 39,622 $ (2,138) $ 45,599 $ (2,145) The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities as of September 24, 2023 are as follows: Cost Fair (in thousands) Due in one year or less $ 3,384,670 $ 3,384,500 Due after one year through five years — — $ 3,384,670 $ 3,384,500 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’s hedging strategies and policies are unchanged from those disclosed in Note 9, “Financial Instruments,” to our Consolidated Financial Statements in Part II, Item 8 of our 2023 Form 10-K. As of September 24, 2023 and June 25, 2023 the fair value of outstanding cash flow and balance sheet hedges were not material. The financial statement impacts to the Condensed Consolidated Statement of Operations from derivative instruments and hedging activities were not material as of and for the three months ended September 24, 2023 and September 25, 2022. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Sep. 24, 2023 | |
Inventory Disclosure [Abstract] | |
INVENTORIES | INVENTORIES Inventories are stated at the lower of cost or net realizable value using standard costs that approximate actual costs on a first-in, first-out basis. 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: September 24, June 25, (in thousands) Raw materials $ 3,202,468 $ 3,196,988 Work-in-process 300,408 325,611 Finished goods 1,244,905 1,293,591 $ 4,747,781 $ 4,816,190 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Sep. 24, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The balance of goodwill is approximately $1.6 billion as of September 24, 2023 and June 25, 2023. As of September 24, 2023 and June 25, 2023, $65.4 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, other than goodwill: September 24, 2023 June 25, 2023 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 644,103 $ (632,279) $ 11,824 $ 644,138 $ (631,420) $ 12,718 Existing technology 734,885 (677,619) 57,266 717,331 (674,549) 42,782 Patents and other intangible assets 201,215 (125,134) 76,081 199,532 (116,659) 82,873 Intangible assets subject to amortization 1,580,203 (1,435,032) 145,171 1,561,001 (1,422,628) 138,373 In process research and development 12,447 — 12,447 30,081 — 30,081 Total intangible assets $ 1,592,650 $ (1,435,032) $ 157,618 $ 1,591,082 $ (1,422,628) $ 168,454 The Company recognized $14.0 million and $11.6 million in intangible asset amortization expense during the three months ended September 24, 2023 and September 25, 2022, respectively. The estimated future amortization expense of intangible assets as of September 24, 2023, is reflected in the table below. The table excludes $18.8 million of capitalized costs for intangible assets that have not been placed into service. Fiscal Year Amount (in thousands) 2024 (remaining 9 months) $ 32,556 2025 30,544 2026 20,100 2027 15,360 2028 11,842 Thereafter 15,928 $ 126,330 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 3 Months Ended |
Sep. 24, 2023 | |
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: September 24, June 25, (in thousands) Accrued compensation $ 485,419 $ 481,354 Warranty reserves 240,550 256,781 Income and other taxes payable (1) 587,410 460,630 Dividend payable 265,040 231,267 Restructuring 3,095 8,014 Other 538,541 572,591 $ 2,120,055 $ 2,010,637 (1) The balance in income and other taxes payable includes an accrual of $180.0 million related to federal estimated taxes for which payment is deferred until our quarter ending December 24, 2023, under the IRS Federal tax relief for California disaster area taxpayers. |
LEASES
LEASES | 3 Months Ended |
Sep. 24, 2023 | |
Leases [Abstract] | |
LEASES | LEASESThe Company elected to exercise purchase options available under its finance leases for certain improved properties in Fremont and Livermore, California (the “California Facility Leases”) in the three months ended September 24, 2023. As a result, the Company released cash collateral in an aggregate of approximately $250.0 million of restricted cash that is reported in Other assets in the Company’s Condensed Consolidated Balance Sheet. Additionally, guarantees made to the lessor that each property would have a certain minimum residual value totaling $298.4 million as of June 25, 2023 in the aggregate were eliminated with the extinguishment of the California Facilities Leases. As a result of the purchase of the improved properties, $250.5 million of additions were made to Property and Equipment, Net in the Company’s Condensed Consolidated Balance Sheets primarily comprised of land ($40.5 million) and buildings and improvements ($210.0 million). |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 24, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES 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 September 24, 2023, 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 September 24, 2023, the maximum potential amount of future payments that the Company could be required to make under these arrangements and letters of credit was $197.9 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 directors, officers, and certain other employees, 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. As of September 24, 2023, warranty reserves totaling $24.8 million were reported in other long-term liabilities, the remainder were included in accrued expenses and other current liabilities in the Company’s Condensed Consolidated Balance Sheets. Changes in the Company’s product warranty reserves were as follows: Three Months Ended September 24, September 25, (in thousands) Balance at beginning of period $ 286,663 $ 256,258 Warranties issued during the period 44,519 88,213 Settlements made during the period (52,236) (64,896) Changes in liability for warranties issued during the period (50) (1,269) Changes in liability for pre-existing warranties (13,522) 5,208 Balance at end of period $ 265,374 $ 283,514 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 | 3 Months Ended |
Sep. 24, 2023 | |
Equity [Abstract] | |
STOCK REPURCHASE PROGRAM | STOCK REPURCHASE PROGRAMIn May 2022, the Board of Directors authorized the Company to repurchase up to an additional $5.0 billion of Common Stock; this authorization supplements the remaining balances from any prior authorizations. 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. Repurchases under the repurchase program were as follows during the periods indicated: Period Total Number of Total Cost of Repurchase (2) Average Price Share (1,2) Amount (in thousands, except per share data) Available balance as of June 25, 2023 $ 3,537,217 Quarter ended September 24, 2023 1,257 $ 829,874 $ 660.01 $ 2,707,343 (1) Average price paid per share excludes the effect of accelerated share repurchase activities. (2) The Company’s net share repurchases are subject to a 1% excise tax under the Inflation Reduction Act. Excise tax incurred reduces the amount available under the repurchase program, as applicable, and is included in the cost of shares repurchased in the Condensed Consolidated Statement of Stockholders’ Equity and the calculation of the average price paid per share. In addition to the shares repurchased under the Board-authorized repurchase program shown above, during the three months ended September 24, 2023, the Company acquired 9 thousand shares at a total cost of $5.5 million, 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. |
RESTRUCTURING CHARGES, NET
RESTRUCTURING CHARGES, NET | 3 Months Ended |
Sep. 24, 2023 | |
Restructuring and Related Activities [Abstract] | |
RESTRUCTURING CHARGES, NET | RESTRUCTURING CHARGES, NET The Company records employee severance and separation costs that meet the requirements for recognition in accordance with the relevant guidance of ASC 420, Exit or Disposal Cost Obligations, or ASC 712, Compensation - Non-retirement Post-employment Benefits, as applicable. For involuntary termination benefits that are not provided under the terms of an ongoing benefit arrangement, the liability for the current fair value of expected future costs associated with a management-approved restructuring plan is recognized in the period in which the plan is communicated to the employees and the plan is not expected to change significantly. For ongoing benefit arrangements, inclusive of statutory requirements, employee termination costs are accrued when the existing situation or set of circumstances indicates that an obligation has been incurred, it is probable the benefits will be paid, and the amount can be reasonably estimated. Termination benefits associated with employees that elected to voluntarily terminate as part of the restructuring plan are recorded when the employee irrevocably accepts the offer and the amount can be reasonably estimated. If applicable, the Company records such costs into operating expense over the terminated employees’ future service period beyond any minimum or legally required retention period. The majority of restructuring charges that have been incurred but not yet paid are recorded in Accrued expenses and other current liabilities in the Condensed Consolidated Balance Sheets. In the fiscal year ended June 25, 2023, the Company initiated a restructuring plan designed to better align the Company’s cost structure with its outlook for the economic environment and business opportunities. Under the plan the Company terminated approximately 1,650 employees, incurring expenses related to employee severance and separation costs. Employee severance and separation costs primarily relate to severance, non-cash severance, including equity award compensation expense, pension and other termination benefits. Additionally, the Company made a strategic decision to relocate certain manufacturing activities to pre-existing facilities and incurred charges to move inventory and equipment and exit selected supplier arrangements. During the three months ending September 24, 2023, net restructuring costs of $7.9 million and $2.0 million were recorded in restructuring charges, net - cost of goods sold, and restructuring charges, net - operating expenses, respectively, in the Condensed Consolidated Statements of Operations. No restructuring charges were recognized during the three months ending September 25, 2022. The cumulative cost of the restructuring plan as of September 24, 2023 was $130.3 million. The Company anticipates the restructuring plan to be substantially complete by December 24, 2023, and estimates that incremental restructuring charges totaling approximately $7 million will be incurred in the fiscal quarter ending December 24, 2023. The following table is a summary of the activity related to the restructuring plan: Severance and Benefits Other Total (in thousands) Restructuring liability as of June 25, 2023 $ 7,989 $ 246 $ 8,235 Restructuring expense 5,474 4,487 9,961 Cash payments (10,525) (4,262) (14,787) Non-cash activities 54 16 70 Restructuring liability as of September 24, 2023 $ 2,992 $ 487 $ 3,479 |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2023 | Sep. 25, 2022 | |
Pay vs Performance Disclosure | ||
Net income | $ 887,398 | $ 1,425,879 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Sep. 24, 2023 shares | |
Trading Arrangements, by Individual | |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Timothy M. Archer [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On August 10, 2023, Timothy M. Archer, the President and Chief Executive Officer of the Company, adopted a Rule 10b5-1 Trading Arrangement. Mr. Archer’s Rule 10b5-1 Trading Arrangement provides for: (i) the potential exercise of 10,524 stock options expiring March 1, 2025 and the associated sale of up to 10,524 shares of the Company’s common stock resulting from such exercise; and (ii) the potential sale of up to 8,500 shares of the Company’s common stock; in each case pursuant to the terms of the Rule 10b5-1 Trading Arrangement. Mr. Archer’s Rule 10b5-1 Trading Arrangement has a termination date of August 9, 2024. |
Name | Timothy M. Archer |
Title | President and Chief Executive Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | August 10, 2023 |
Arrangement Duration | 365 days |
Christina C. Correia [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On August 4, 2023, Christina C. Correia, the Corporate Vice President and Chief Accounting Officer of the Company, adopted a Rule 10b5-1 Trading Arrangement. Ms. Correia’s Rule 10b5-1 Trading Arrangement provides for the potential sale of up to 2,588 shares of the Company’s common stock pursuant to the terms of the Rule 10b5-1 Trading Arrangement. Ms. Correia’s Rule 10b5-1 Trading Arrangement has a termination date of December 31, 2024. |
Name | Christina C. Correia |
Title | Corporate Vice President and Chief Accounting Officer |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | August 4, 2023 |
Arrangement Duration | 515 days |
Aggregate Available | 2,588 |
Ava M. Hahn [Member] | |
Trading Arrangements, by Individual | |
Material Terms of Trading Arrangement | On September 6, 2023, Ava M. Hahn, the Senior Vice President, Chief Legal Officer and Secretary of the Company, adopted a Rule 10b5-1 Trading Arrangement. Ms. Hahn’s Rule 10b5-1 Trading Arrangement provides for: (i) the potential exercise of 2,342 stock options expiring March 2, 2027 and the associated sale of up to 1,171 shares of the Company’s common stock resulting from such exercise; (ii) the potential sale of the net shares of the Company’s common stock resulting from the vesting of 1,226 service-based restricted stock units (net shares are net of tax withholding); and (iii) subject to performance conditions, the potential sale of the net shares of the Company’s common stock resulting from the vesting of 2,044 market-based performance restricted stock units (representing the maximum number of shares that may be issued; the final number of shares that may be earned is 0% to 150% of the target number of 1,363); in each case pursuant to the terms of the Rule 10b5-1 Trading Arrangement. Ms. Hahn’s Rule 10b5-1 Trading Arrangement has a termination date of September 30, 2024. |
Name | Ava M. Hahn |
Title | Senior Vice President, Chief Legal Officer and Secretary |
Rule 10b5-1 Arrangement Adopted | true |
Adoption Date | September 6, 2023 |
Arrangement Duration | 390 days |
Timothy M. Archer, Common Stock From Option Exercise [Member] | Timothy M. Archer [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 10,524 |
Timothy M. Archer, Common Stock [Member] | Timothy M. Archer [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 8,500 |
Ava M. Hahn, Common Stock From Option Exercise [Member] | Ava M. Hahn [Member] | |
Trading Arrangements, by Individual | |
Aggregate Available | 1,171 |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Sep. 24, 2023 | |
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 30, 2024 and includes 53 weeks. |
Reclassification | Reclassification: Certain amounts for the June 25, 2023 Condensed Consolidated Balance Sheet and notes to the financial statements have been reclassified to conform to the current period presentation. |
Recently Adopted or Effective and Updates Not Yet Effective | Recently Adopted or Effective The Company has not adopted any new accounting standards during the first quarter of fiscal year 2024 that have a material impact on the Company’s Condensed Consolidated Financial Statements. Updates Not Yet Effective There are no new accounting standards not yet adopted or effective that are expected to have a material impact on the Company’s Condensed Consolidated Financial Statements. |
Inventories | Inventories are stated at the lower of cost or net realizable value using standard costs that approximate actual costs on a first-in, first-out basis. 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) | 3 Months Ended |
Sep. 24, 2023 | |
Revenue from Contract with Customer [Abstract] | |
Schedule of Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated between system and its customer support-related revenue: Three Months Ended September 24, September 25, (In thousands) Systems revenue $ 2,056,655 $ 3,181,987 Customer support-related revenue and other 1,425,407 1,892,134 $ 3,482,062 $ 5,074,121 The following table presents the Company’s revenues disaggregated by geographic region: Three Months Ended September 24, September 25, (In thousands) China $ 1,687,311 $ 1,530,475 Korea 547,945 855,378 Japan 324,520 458,693 United States 282,224 304,977 Taiwan 242,490 1,120,946 Europe 238,469 262,588 Southeast Asia 159,103 541,064 $ 3,482,062 $ 5,074,121 |
Schedule of System Revenues of Primary Markets | The following table presents the percentages of leading- and non-leading-edge equipment and upgrade revenue to each of the primary markets the Company serves: Three Months Ended September 24, September 25, Memory 38 % 52 % Foundry 36 % 34 % Logic/integrated device manufacturing 26 % 14 % |
Schedule 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 September 24, 2023 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 $ 1,421,440 $ 226,972 (1) $ 42,035 (1) $ 1,690,447 (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. |
EQUITY-BASED COMPENSATION PLA_2
EQUITY-BASED COMPENSATION PLANS (Tables) | 3 Months Ended |
Sep. 24, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Recognized Equity Based Compensation Expenses and Benefits | 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 September 24, September 25, (in thousands) Equity-based compensation expense $ 67,211 $ 71,110 Income tax benefit recognized related to equity-based compensation expense $ 9,564 $ 11,528 |
OTHER INCOME (EXPENSE), NET (Ta
OTHER INCOME (EXPENSE), NET (Tables) | 3 Months Ended |
Sep. 24, 2023 | |
Other Income and Expenses [Abstract] | |
Schedule of Components of Other Income (Expense), Net | The significant components of other income (expense), net, are as follows: Three Months Ended September 24, September 25, (in thousands) Interest income $ 56,564 $ 15,056 Interest expense (45,331) (46,052) (Losses) gains on deferred compensation plan-related assets, net (2,901) (12,726) Foreign exchange gains (losses), net 1,269 6,821 Other, net (7,000) (6,194) $ 2,601 $ (43,095) |
INCOME TAX EXPENSE (Tables)
INCOME TAX EXPENSE (Tables) | 3 Months Ended |
Sep. 24, 2023 | |
Income Tax Disclosure [Abstract] | |
Schedule of Effective Income Tax Rate Reconciliation | The Company’s provision for income taxes and effective tax rate are as follows: Three Months Ended September 24, September 25, (in thousands, except percentages) Income tax expense $ 138,232 $ 228,866 Effective tax rate 13.5 % 13.8 % |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Sep. 24, 2023 | |
Earnings Per Share [Abstract] | |
Schedule of Numerators and Denominators of Basic and Diluted Computations for Net Income Per Share | The following table reconciles the inputs to the basic and diluted computations for net income per share. Three Months Ended September 24, September 25, (in thousands, except per share data) Numerator: Net income $ 887,398 $ 1,425,879 Denominator: Basic average shares outstanding 132,584 136,891 Effect of potential dilutive securities: Employee stock plans 582 317 Diluted average shares outstanding 133,166 137,208 Net income per share - basic $ 6.69 $ 10.42 Net income per share - diluted $ 6.66 $ 10.39 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Sep. 24, 2023 | |
Fair Value Disclosures [Abstract] | |
Schedule of Cash, Cash Equivalents, Investments, and Other Assets Measured at Fair Value on Recurring Basis | The following tables set forth the Company’s cash, cash equivalents, investments, and other assets measured at fair value on a recurring basis as of September 24, 2023, and June 25, 2023: September 24, 2023 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Other (in thousands) Level 1: Money market funds $ 1,657,890 $ — $ — $ 1,657,890 $ 1,657,890 $ — $ — Mutual funds 100,113 16,826 (1,973) 114,966 — — 114,966 Level 1 Total 1,758,003 16,826 (1,973) 1,772,856 1,657,890 — 114,966 Level 2: Corporate notes and bonds 30,727 2 (172) 30,557 — 30,557 — Level 2 Total 30,727 2 (172) 30,557 — 30,557 — Total subject to fair value hierarchy $ 1,788,730 $ 16,828 $ (2,145) $ 1,803,413 Cash $ 1,772,866 $ 1,772,207 $ — $ 659 Time deposits 1,696,053 1,696,053 — — Total $ 5,272,332 $ 5,126,150 $ 30,557 $ 115,625 June 25, 2023 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Other (in thousands) Level 1: Money market funds $ 2,223,642 $ — $ — $ 2,223,642 $ 2,223,642 $ — $ — Mutual funds 96,646 12,092 (2,069) 106,669 — — 106,669 Level 1 Total 2,320,288 12,092 (2,069) 2,330,311 2,223,642 — 106,669 Level 2: Corporate notes and bonds 38,033 — (392) 37,641 — 37,641 — Level 2 Total 38,033 — (392) 37,641 — 37,641 — Total subject to fair value hierarchy $ 2,358,321 $ 12,092 $ (2,461) $ 2,367,952 Cash $ 2,132,811 $ 2,132,522 $ — $ 289 Time deposits 1,230,919 980,892 — 250,027 Total $ 5,731,682 $ 5,337,056 $ 37,641 $ 356,985 |
Schedule of Investments in Unrealized Loss Positions | The following is an analysis of the Company’s investments in unrealized loss positions: September 24, 2023 Unrealized Losses Unrealized Losses Total Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss Fair Value Gross Unrealized Loss (in thousands) Mutual funds $ 599 $ (6) $ 21,788 $ (1,967) $ 22,387 $ (1,973) Corporate notes and bonds 5,378 (1) 17,834 (171) 23,212 (172) $ 5,977 $ (7) $ 39,622 $ (2,138) $ 45,599 $ (2,145) |
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 as of September 24, 2023 are as follows: Cost Fair (in thousands) Due in one year or less $ 3,384,670 $ 3,384,500 Due after one year through five years — — $ 3,384,670 $ 3,384,500 |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Sep. 24, 2023 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: September 24, June 25, (in thousands) Raw materials $ 3,202,468 $ 3,196,988 Work-in-process 300,408 325,611 Finished goods 1,244,905 1,293,591 $ 4,747,781 $ 4,816,190 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Sep. 24, 2023 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Other Than Goodwill | The following table provides the Company’s intangible assets, other than goodwill: September 24, 2023 June 25, 2023 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 644,103 $ (632,279) $ 11,824 $ 644,138 $ (631,420) $ 12,718 Existing technology 734,885 (677,619) 57,266 717,331 (674,549) 42,782 Patents and other intangible assets 201,215 (125,134) 76,081 199,532 (116,659) 82,873 Intangible assets subject to amortization 1,580,203 (1,435,032) 145,171 1,561,001 (1,422,628) 138,373 In process research and development 12,447 — 12,447 30,081 — 30,081 Total intangible assets $ 1,592,650 $ (1,435,032) $ 157,618 $ 1,591,082 $ (1,422,628) $ 168,454 |
Schedule of Estimated Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets as of September 24, 2023, is reflected in the table below. The table excludes $18.8 million of capitalized costs for intangible assets that have not been placed into service. Fiscal Year Amount (in thousands) 2024 (remaining 9 months) $ 32,556 2025 30,544 2026 20,100 2027 15,360 2028 11,842 Thereafter 15,928 $ 126,330 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 3 Months Ended |
Sep. 24, 2023 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: September 24, June 25, (in thousands) Accrued compensation $ 485,419 $ 481,354 Warranty reserves 240,550 256,781 Income and other taxes payable (1) 587,410 460,630 Dividend payable 265,040 231,267 Restructuring 3,095 8,014 Other 538,541 572,591 $ 2,120,055 $ 2,010,637 (1) The balance in income and other taxes payable includes an accrual of $180.0 million related to federal estimated taxes for which payment is deferred until our quarter ending December 24, 2023, under the IRS Federal tax relief for California disaster area taxpayers. |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Sep. 24, 2023 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Changes in Product Warranty Reserves | Changes in the Company’s product warranty reserves were as follows: Three Months Ended September 24, September 25, (in thousands) Balance at beginning of period $ 286,663 $ 256,258 Warranties issued during the period 44,519 88,213 Settlements made during the period (52,236) (64,896) Changes in liability for warranties issued during the period (50) (1,269) Changes in liability for pre-existing warranties (13,522) 5,208 Balance at end of period $ 265,374 $ 283,514 |
STOCK REPURCHASE PROGRAM (Table
STOCK REPURCHASE PROGRAM (Tables) | 3 Months Ended |
Sep. 24, 2023 | |
Equity [Abstract] | |
Schedule of Repurchases Under the Repurchase Program | Repurchases under the repurchase program were as follows during the periods indicated: Period Total Number of Total Cost of Repurchase (2) Average Price Share (1,2) Amount (in thousands, except per share data) Available balance as of June 25, 2023 $ 3,537,217 Quarter ended September 24, 2023 1,257 $ 829,874 $ 660.01 $ 2,707,343 (1) Average price paid per share excludes the effect of accelerated share repurchase activities. (2) The Company’s net share repurchases are subject to a 1% excise tax under the Inflation Reduction Act. Excise tax incurred reduces the amount available under the repurchase program, as applicable, and is included in the cost of shares repurchased in the Condensed Consolidated Statement of Stockholders’ Equity and the calculation of the average price paid per share. |
RESTRUCTURING CHARGES, NET (Tab
RESTRUCTURING CHARGES, NET (Tables) | 3 Months Ended |
Sep. 24, 2023 | |
Restructuring and Related Activities [Abstract] | |
Summary of the Activity Related to the Restructuring Plan | The following table is a summary of the activity related to the restructuring plan: Severance and Benefits Other Total (in thousands) Restructuring liability as of June 25, 2023 $ 7,989 $ 246 $ 8,235 Restructuring expense 5,474 4,487 9,961 Cash payments (10,525) (4,262) (14,787) Non-cash activities 54 16 70 Restructuring liability as of September 24, 2023 $ 2,992 $ 487 $ 3,479 |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) $ in Millions | 3 Months Ended | |
Sep. 24, 2023 USD ($) region primary_market segment | Jun. 25, 2023 USD ($) | |
Revenue from Contract with Customer [Abstract] | ||
Number of reportable business segment | segment | 1 | |
Number of operating geographic regions | region | 7 | |
Number of primary markets | primary_market | 3 | |
Revenue recognized | $ 561.8 | |
Deferred revenue | $ 1,837.9 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-06-26 | ||
Revenue from Contract with Customer [Abstract] | ||
Percentage of deferred revenue | 31% | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Percentage of deferred revenue | 31% |
REVENUE - Disaggregation of Rev
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2023 | Sep. 25, 2022 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 3,482,062 | $ 5,074,121 |
China | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,687,311 | 1,530,475 |
Korea | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 547,945 | 855,378 |
Japan | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 324,520 | 458,693 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 282,224 | 304,977 |
Taiwan | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 242,490 | 1,120,946 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 238,469 | 262,588 |
Southeast Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 159,103 | 541,064 |
Systems revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,056,655 | 3,181,987 |
Customer support-related revenue and other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,425,407 | $ 1,892,134 |
REVENUE - Schedule of System Re
REVENUE - Schedule of System Revenues of Primary Markets (Details) - Equipment and upgrade revenue - Revenue | 3 Months Ended | |
Sep. 24, 2023 | Sep. 25, 2022 | |
Memory | ||
Concentration Risk [Line Items] | ||
Concentration | 38% | 52% |
Foundry | ||
Concentration Risk [Line Items] | ||
Concentration | 36% | 34% |
Logic/integrated device manufacturing | ||
Concentration Risk [Line Items] | ||
Concentration | 26% | 14% |
REVENUE - Summary of Contract T
REVENUE - Summary of Contract Transaction Price Not Yet Recognized as Revenue (Details) - USD ($) $ in Thousands | Sep. 24, 2023 | Jun. 25, 2023 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 1,690,447 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-06-26 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Recognition period | 3 months | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2023-09-25 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 1,421,440 | |
Recognition period | 1 year | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-09-30 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 226,972 | |
Recognition period | 2 years | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2026-09-28 | ||
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | ||
Deferred revenue | $ 42,035 | |
Recognition period |
EQUITY-BASED COMPENSATION PLA_3
EQUITY-BASED COMPENSATION PLANS - Additional Information (Details) | 3 Months Ended |
Sep. 24, 2023 | |
Share-Based Payment Arrangement [Abstract] | |
Vesting period (in 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 | |
Sep. 24, 2023 | Sep. 25, 2022 | |
Share-Based Payment Arrangement [Abstract] | ||
Equity-based compensation expense | $ 67,211 | $ 71,110 |
Income tax benefit recognized related to equity-based compensation expense | $ 9,564 | $ 11,528 |
OTHER INCOME (EXPENSE), NET - C
OTHER INCOME (EXPENSE), NET - Components of Other Expense, Net (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2023 | Sep. 25, 2022 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 56,564 | $ 15,056 |
Interest expense | (45,331) | (46,052) |
(Losses) gains on deferred compensation plan-related assets, net | (2,901) | (12,726) |
Foreign exchange gains (losses), net | 1,269 | 6,821 |
Other, net | (7,000) | (6,194) |
Other income (expense), net | $ 2,601 | $ (43,095) |
INCOME TAX EXPENSE (Details)
INCOME TAX EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2023 | Sep. 25, 2022 | |
Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 138,232 | $ 228,866 |
Effective tax rate | 13.50% | 13.80% |
Tax examinations or lapses of statute of limitation | ||
Income Tax Contingency [Line Items] | ||
Estimated unrecognized tax benefits reduction (up to) | $ 9,800 |
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 | |
Sep. 24, 2023 | Sep. 25, 2022 | |
Numerator: | ||
Net income | $ 887,398 | $ 1,425,879 |
Denominator: | ||
Basic average shares outstanding (in shares) | 132,584 | 136,891 |
Effect of potential dilutive securities: | ||
Employee stock plans (in shares) | 582 | 317 |
Diluted average shares outstanding (in shares) | 133,166 | 137,208 |
Net income per share - basic (in dollars per share) | $ 6.69 | $ 10.42 |
Net income per share - diluted (in dollars per share) | $ 6.66 | $ 10.39 |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Cash, Cash Equivalents, Investments, and Other Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 24, 2023 | Jun. 25, 2023 | Sep. 25, 2022 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, Cost | $ 3,384,670 | |||
Debt securities, Fair Value | 3,384,500 | |||
Cash and Cash Equivalents | 5,126,150 | $ 5,337,056 | [1] | $ 4,256,499 |
Investments | 30,557 | 37,641 | [1] | |
Other Assets | 115,625 | 356,985 | ||
Cash | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | 1,772,207 | 2,132,522 | ||
Investments | 0 | 0 | ||
Other Assets | 659 | 289 | ||
Time deposits | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | 1,696,053 | 980,892 | ||
Investments | 0 | 0 | ||
Other Assets | 0 | 250,027 | ||
Recurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cost | 1,788,730 | 2,358,321 | ||
Unrealized Gain | 16,828 | 12,092 | ||
Unrealized (Loss) | (2,145) | (2,461) | ||
Fair Value | 1,803,413 | 2,367,952 | ||
Fair Value | 5,272,332 | 5,731,682 | ||
Recurring | Cash | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair Value | 1,772,866 | 2,132,811 | ||
Recurring | Time deposits | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair Value | 1,696,053 | 1,230,919 | ||
Level 1: | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | 1,657,890 | 2,223,642 | ||
Investments | 0 | 0 | ||
Other Assets | 114,966 | 106,669 | ||
Level 1: | Money market funds | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | 1,657,890 | 2,223,642 | ||
Investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Level 1: | Mutual funds | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | 0 | 0 | ||
Investments | 0 | 0 | ||
Other Assets | 114,966 | 106,669 | ||
Level 1: | Recurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cost | 1,758,003 | 2,320,288 | ||
Unrealized Gain | 16,826 | 12,092 | ||
Unrealized (Loss) | (1,973) | (2,069) | ||
Fair Value | 1,772,856 | 2,330,311 | ||
Level 1: | Recurring | Money market funds | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, Cost | 1,657,890 | 2,223,642 | ||
Debt securities, Unrealized Gain | 0 | 0 | ||
Debt securities, Unrealized (Loss) | 0 | 0 | ||
Debt securities, Fair Value | 1,657,890 | 2,223,642 | ||
Level 1: | Recurring | Mutual funds | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Trading securities, Cost | 100,113 | 96,646 | ||
Trading securities, Unrealized Gain | 16,826 | 12,092 | ||
Trading securities, Unrealized (Loss) | (1,973) | (2,069) | ||
Trading securities, Fair Value | 114,966 | 106,669 | ||
Level 2: | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | 0 | 0 | ||
Investments | 30,557 | 37,641 | ||
Other Assets | 0 | 0 | ||
Level 2: | Corporate notes and bonds | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Cash Equivalents | 0 | 0 | ||
Investments | 30,557 | 37,641 | ||
Other Assets | 0 | 0 | ||
Level 2: | Recurring | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, Cost | 30,727 | 38,033 | ||
Debt securities, Unrealized Gain | 2 | 0 | ||
Debt securities, Unrealized (Loss) | (172) | (392) | ||
Debt securities, Fair Value | 30,557 | 37,641 | ||
Level 2: | Recurring | Corporate notes and bonds | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, Cost | 30,727 | 38,033 | ||
Debt securities, Unrealized Gain | 2 | 0 | ||
Debt securities, Unrealized (Loss) | (172) | (392) | ||
Debt securities, Fair Value | $ 30,557 | $ 37,641 | ||
[1]Derived from audited financial statements |
FINANCIAL INSTRUMENTS - Sched_2
FINANCIAL INSTRUMENTS - Schedule of Investments in Unrealized Loss Positions (Details) $ in Thousands | Sep. 24, 2023 USD ($) |
Fair Value | |
Unrealized Losses Less than 12 Months | $ 5,977 |
Unrealized Losses 12 Months or Greater | 39,622 |
Fair Value | 45,599 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months | (7) |
Gross Unrealized Loss | (2,138) |
Gross Unrealized Loss | (2,145) |
Mutual funds | |
Fair Value | |
Unrealized Losses Less than 12 Months, trading | 599 |
Unrealized Losses 12 Months or Greater, trading | 21,788 |
Trading , Fair Value | 22,387 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, trading | (6) |
Unrealized Losses 12 Months or Greater, trading | (1,967) |
Gross Unrealized Loss, trading | (1,973) |
Corporate notes and bonds | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 5,378 |
Unrealized Losses 12 Months or Greater, available for sale | 17,834 |
Available for sale, Fair Value | 23,212 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (1) |
Unrealized Losses 12 Months or Greater, available for sale | (171) |
Gross Unrealized Loss, available for sale | $ (172) |
FINANCIAL INSTRUMENTS - Sched_3
FINANCIAL INSTRUMENTS - Schedule of Amortized Cost and Fair Value of Cash Equivalents, Investments, and Restricted Cash and Investments with Contractual Maturities (Details) $ in Thousands | Sep. 24, 2023 USD ($) |
Cost | |
Due in one year or less | $ 3,384,670 |
Due after one year through five years | 0 |
Debt securities, Cost | 3,384,670 |
Fair Value | |
Due in one year or less | 3,384,500 |
Due after one year through five years | 0 |
Fair Value | $ 3,384,500 |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 24, 2023 | Jun. 25, 2023 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 3,202,468 | $ 3,196,988 | |
Work-in-process | 300,408 | 325,611 | |
Finished goods | 1,244,905 | 1,293,591 | |
Total inventories | $ 4,747,781 | $ 4,816,190 | [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 | |||
Sep. 24, 2023 | Sep. 25, 2022 | Jun. 25, 2023 | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 1,626,382 | $ 1,622,489 | [1] | |
Tax deductible goodwill | 65,400 | $ 65,400 | ||
Intangible asset amortization expense | 14,000 | $ 11,600 | ||
Capitalized costs for internal-use software | $ 18,800 | |||
[1]Derived from audited financial statements |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 24, 2023 | Jun. 25, 2023 | |
Finite-Lived Intangible Assets [Line Items] | |||
Gross | $ 1,580,203 | $ 1,561,001 | |
Accumulated Amortization | (1,435,032) | (1,422,628) | |
Net | 145,171 | 138,373 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Gross | 1,592,650 | 1,591,082 | |
Accumulated Amortization | (1,435,032) | (1,422,628) | |
Net | 157,618 | 168,454 | [1] |
In process research and development | |||
Indefinite-Lived Intangible Assets [Line Items] | |||
Indefinite-lived intangible assets | 12,447 | 30,081 | |
Customer relationships | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 644,103 | 644,138 | |
Accumulated Amortization | (632,279) | (631,420) | |
Net | 11,824 | 12,718 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Accumulated Amortization | (632,279) | (631,420) | |
Existing technology | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 734,885 | 717,331 | |
Accumulated Amortization | (677,619) | (674,549) | |
Net | 57,266 | 42,782 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Accumulated Amortization | (677,619) | (674,549) | |
Patents and other intangible assets | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross | 201,215 | 199,532 | |
Accumulated Amortization | (125,134) | (116,659) | |
Net | 76,081 | 82,873 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Accumulated Amortization | $ (125,134) | $ (116,659) | |
[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 | Sep. 24, 2023 USD ($) |
Fiscal Year | |
2024 (remaining 9 months) | $ 32,556 |
2025 | 30,544 |
2026 | 20,100 |
2027 | 15,360 |
2028 | 11,842 |
Thereafter | 15,928 |
Net | $ 126,330 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 24, 2023 | Jun. 25, 2023 | |
Income Tax Holiday [Line Items] | |||
Accrued compensation | $ 485,419 | $ 481,354 | |
Warranty reserves | 240,550 | 256,781 | |
Income and other taxes payable | 587,410 | 460,630 | |
Dividend payable | 265,040 | 231,267 | |
Restructuring | 3,095 | 8,014 | |
Other | 538,541 | 572,591 | |
Accrued expenses and other current liabilities | 2,120,055 | $ 2,010,637 | [1] |
Federal | |||
Income Tax Holiday [Line Items] | |||
Income and other taxes payable | $ 180,000 | ||
[1]Derived from audited financial statements |
LEASES (Details)
LEASES (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 24, 2023 | Jun. 25, 2023 | |
Improved properties | ||
Guarantor Obligations [Line Items] | ||
Payments to acquire assets | $ 250.5 | |
Land | ||
Guarantor Obligations [Line Items] | ||
Payments to acquire assets | 40.5 | |
Buildings and improvements | ||
Guarantor Obligations [Line Items] | ||
Payments to acquire assets | $ 210 | |
Cash collateral | ||
Guarantor Obligations [Line Items] | ||
Restricted cash and investments | $ 250 | |
California Facility Leases | ||
Guarantor Obligations [Line Items] | ||
Maximum residual value | $ 298.4 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands | Sep. 24, 2023 | Jun. 25, 2023 | Sep. 25, 2022 | Jun. 26, 2022 |
Loss Contingencies [Line Items] | ||||
Warranty reserves | $ 265,374 | $ 286,663 | $ 283,514 | $ 256,258 |
Other long-term liabilities | ||||
Loss Contingencies [Line Items] | ||||
Warranty reserves | 24,800 | |||
Letters of Credit | ||||
Loss Contingencies [Line Items] | ||||
Maximum potential amount of future payments | $ 197,900 |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Changes in Product Warranty Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2023 | Sep. 25, 2022 | |
Changes in Product Warranty Reserve | ||
Balance at beginning of period | $ 286,663 | $ 256,258 |
Warranties issued during the period | 44,519 | 88,213 |
Settlements made during the period | (52,236) | (64,896) |
Changes in liability for warranties issued during the period | (50) | (1,269) |
Changes in liability for pre-existing warranties | (13,522) | 5,208 |
Balance at end of period | $ 265,374 | $ 283,514 |
STOCK REPURCHASE PROGRAM - Addi
STOCK REPURCHASE PROGRAM - Additional Information (Details) - USD ($) shares in Thousands | 1 Months Ended | 3 Months Ended |
May 31, 2022 | Sep. 24, 2023 | |
Equity, Class of Treasury Stock [Line Items] | ||
Net shares of settlements to cover tax withholding obligations (in shares) | 9 | |
Amount paid for shares under net share settlements | $ 5,500,000 | |
Stock repurchase program | ||
Equity, Class of Treasury Stock [Line Items] | ||
Increase in authorized amount | $ 5,000,000,000 |
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 | ||
Sep. 24, 2023 | Sep. 25, 2022 | Jun. 25, 2023 | |
Equity, Class of Treasury Stock [Line Items] | |||
Total Cost of Repurchase | $ 835,520 | $ 109,821 | |
Stock repurchase program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Repurchased (in shares) | 1,257 | ||
Total Cost of Repurchase | $ 829,874 | ||
Average Price Paid Per Share (in dollars per share) | $ 660.01 | ||
Amount Available Under Repurchase Program | $ 2,707,343 | $ 3,537,217 |
RESTRUCTURING CHARGES, NET - Ad
RESTRUCTURING CHARGES, NET - Additional Information (Details) | 3 Months Ended | |
Sep. 24, 2023 USD ($) employee | Sep. 25, 2022 USD ($) | |
Restructuring and Related Activities [Abstract] | ||
Headcount reduction | employee | 1,650 | |
Restructuring charges, net - cost of goods sold | $ 7,940,000 | $ 0 |
Restructuring charges, net - operating expenses | 2,021,000 | $ 0 |
Anticipated incremental restructuring charges | 7,000,000 | |
Cumulative cost | $ 130,300,000 |
RESTRUCTURING CHARGES, NET - Su
RESTRUCTURING CHARGES, NET - Summary of the Activity Related to the Restructuring Plan (Details) $ in Thousands | 3 Months Ended |
Sep. 24, 2023 USD ($) | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of June 25, 2023 | $ 8,235 |
Restructuring expense | 9,961 |
Cash payments | (14,787) |
Non-cash activities | 70 |
Restructuring liability as of September 24, 2023 | 3,479 |
Severance and Benefits | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of June 25, 2023 | 7,989 |
Restructuring expense | 5,474 |
Cash payments | (10,525) |
Non-cash activities | 54 |
Restructuring liability as of September 24, 2023 | 2,992 |
Other | |
Restructuring Reserve [Roll Forward] | |
Restructuring liability as of June 25, 2023 | 246 |
Restructuring expense | 4,487 |
Cash payments | (4,262) |
Non-cash activities | 16 |
Restructuring liability as of September 24, 2023 | $ 487 |