Cover Page
Cover Page | Feb. 11, 2021 |
Cover [Abstract] | |
Document Type | 8-K |
Document Period End Date | Feb. 11, 2021 |
Entity File Number | 0-21154 |
Entity Registrant Name | CREE, INC |
Entity Incorporation, State or Country Code | NC |
Entity Tax Identification Number | 56-1572719 |
Entity Address, Address Line One | 4600 Silicon Drive |
Entity Address, City or Town | Durham |
Entity Address, State or Province | NC |
Entity Address, Postal Zip Code | 27703 |
City Area Code | 919 |
Local Phone Number | 407-5300 |
Title of 12(b) Security | Common Stock, $0.00125 par value |
Trading Symbol | CREE |
Security Exchange Name | NASDAQ |
Entity Emerging Growth Company | false |
Entity Central Index Key | 0000895419 |
Amendment Flag | false |
Written Communications | false |
Soliciting Material | false |
Pre-commencement Tender Offer | false |
Pre-commencement Issuer Tender Offer | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Current assets: | ||
Cash and cash equivalents | $ 448.8 | $ 500.5 |
Short-term investments | 790.9 | 541.5 |
Total cash, cash equivalents and short-term investments | 1,239.7 | 1,042 |
Accounts receivable, net | 72.4 | 69.2 |
Inventories | 121.9 | 111.8 |
Income taxes receivable | 6.6 | 0.2 |
Prepaid expenses | 26.2 | 23.2 |
Other current assets | 8.7 | 13.3 |
Current assets held for sale | 1.3 | 1.9 |
Current assets of discontinued operations | 116 | 151.2 |
Total current assets | 1,592.8 | 1,412.8 |
Property and equipment, net | 770.8 | 560.6 |
Goodwill | 349.7 | 349.7 |
Intangible assets, net | 156.9 | 174.1 |
Other long-term investments | 55.9 | 39.5 |
Deferred tax assets | 1.2 | 0.9 |
Other assets | 33.6 | 5.9 |
Long-term assets of discontinued operations | 270.1 | 273.4 |
Total assets | 3,231 | 2,816.9 |
Current liabilities: | ||
Accounts payable and accrued expenses | 189.8 | 164.5 |
Accrued contract liabilities | 14.2 | 15.1 |
Income taxes payable | 1.2 | 1.3 |
Finance lease liabilities | 3.6 | 0 |
Other current liabilities | 22.2 | 15.8 |
Current liabilities of discontinued operations | 60.2 | 71.5 |
Total current liabilities | 291.2 | 268.2 |
Long-term liabilities: | ||
Convertible notes, net | 783.8 | 469.1 |
Deferred tax liabilities | 1.8 | 2 |
Finance lease liabilities - long-term | 11.4 | 0 |
Other long-term liabilities | 43.8 | 28.8 |
Long-term liabilities of discontinued operations | 9.8 | 7.6 |
Total long-term liabilities | 850.6 | 507.5 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, par value $0.01; 3,000 shares authorized at June 28, 2020 and June 30, 2019; none issued and outstanding | 0 | 0 |
Common stock, par value $0.00125; 200,000 shares authorized at June 28, 2020 and June 30, 2019; 109,230 and 106,570 shares issued and outstanding at June 28, 2020 and June 30, 2019, respectively | 0.1 | 0.1 |
Additional paid-in-capital | 3,106.2 | 2,874.1 |
Accumulated other comprehensive income | 16 | 9.5 |
Accumulated deficit | (1,039.2) | (847.5) |
Total shareholders’ equity | 2,083.1 | 2,036.2 |
Noncontrolling interest from discontinued operations | 6.1 | 5 |
Total equity | 2,089.2 | 2,041.2 |
Total liabilities and shareholders’ equity | $ 3,231 | $ 2,816.9 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 28, 2020 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (shares) | 3,000,000 | 3,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Preferred stock outstanding (shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.00125 | $ 0.00125 |
Common stock authorized (shares) | 200,000,000 | 200,000,000 |
Common stock issued (shares) | 109,230,000 | 106,570,000 |
Common stock outstanding (shares) | 109,230,000 | 106,570,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Income Statement [Abstract] | |||
Revenue, net | $ 470.7 | $ 538.2 | $ 328.6 |
Cost of revenue, net | 312.2 | 294.5 | 183.6 |
Gross profit | 158.5 | 243.7 | 145 |
Operating expenses: | |||
Research and development | 152 | 121.1 | 89.8 |
Sales, general and administrative | 181.7 | 168.9 | 143.8 |
Amortization or impairment of acquisition-related intangibles | 14.5 | 15.6 | 7.2 |
Loss on disposal or impairment of other assets | 1.5 | 5 | 7.9 |
Other operating expense | 32.9 | 26.6 | 16.8 |
Operating loss | (224.1) | (93.5) | (120.5) |
Non-operating (income) expense, net | (18.5) | 29.4 | (10.4) |
Loss before income taxes | (205.6) | (122.9) | (110.1) |
Income tax benefit | (8) | (4.4) | (35.2) |
Net loss from continuing operations | (197.6) | (118.5) | (74.9) |
Net income (loss) from discontinued operations | 7 | (256.6) | (205) |
Net loss | (190.6) | (375.1) | (279.9) |
Net income from discontinued operations attributable to noncontrolling interest | 1.1 | 0 | 0.1 |
Net loss attributable to controlling interest | $ (191.7) | $ (375.1) | $ (280) |
Basic and diluted loss per share | |||
Continuing operations attributable to controlling interest - basic and diluted (USD per share) | $ (1.83) | $ (1.14) | $ (0.75) |
Net loss attributable to controlling interest - basic and diluted (USD per share) | $ (1.78) | $ (3.62) | $ (2.81) |
Weighted average shares - basic and diluted (in thousands) (shares) | 107,935 | 103,576 | 99,530 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (190.6) | $ (375.1) | $ (279.9) |
Other comprehensive income (loss): | |||
Currency translation gain | 0 | 4.4 | 0.6 |
Net unrealized gain (loss) on available-for-sale securities | 6.5 | 4.5 | (5.9) |
Comprehensive loss | (184.1) | (366.2) | (285.2) |
Net income from discontinued operations attributable to noncontrolling interest | 1.1 | 0 | 0.1 |
Comprehensive loss attributable to controlling interest | $ (185.2) | $ (366.2) | $ (285.3) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Operating activities: | |||
Net loss | $ (190.6) | $ (375.1) | $ (279.9) |
Net income (loss) from discontinued operations | 7 | (256.6) | (205) |
Net loss from continuing operations | (197.6) | (118.5) | (74.9) |
Adjustments to reconcile net loss from continuing operations to net cash (used in) provided by operating activities: | |||
Depreciation and amortization | 97.1 | 86.2 | 62.9 |
Amortization of debt issuance costs and discount | 26.2 | 18.3 | 0 |
Gain on partial extinguishment of debt | (11) | 0 | 0 |
Stock-based compensation | 47.2 | 42.9 | 33 |
Loss on disposal or impairment of long-lived assets | 4.5 | 5 | 7.9 |
Amortization of premium/discount on investments | 1.7 | 2.3 | 4.7 |
Realized (gain) loss on sale of investments | (1.5) | 0.1 | 0.1 |
(Gain) loss on equity investment | (14.2) | 16.2 | (7.1) |
Foreign exchange (gain) loss on equity investment | (2.2) | 1.3 | (0.6) |
Deferred income taxes | (0.5) | (0.6) | (43.4) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (3.2) | (10.4) | (12.9) |
Inventories | (8.5) | (24.3) | 3.3 |
Prepaid expenses and other assets | (3) | (3.6) | (10.1) |
Accounts payable, trade | (7.2) | 24.3 | 37.3 |
Accrued salaries and wages and other liabilities | (24.9) | 40.8 | 19.5 |
Accrued contract liabilities | 5.5 | 17.2 | 0 |
Net cash (used in) provided by operating activities of continuing operations | (91.6) | 97.2 | 19.7 |
Net cash provided by operating activities of discontinued operations | 62.6 | 105.1 | 153.8 |
Cash (used in) provided by operating activities | (29) | 202.3 | 173.5 |
Investing activities: | |||
Purchases of property and equipment | (229.9) | (124.7) | (167.1) |
Purchases of patent and licensing rights | (4.4) | (3.3) | (2.5) |
Proceeds from sale of property and equipment | 2.6 | 0.3 | 0.6 |
Purchases of short-term investments | (821.4) | (517.2) | (191.7) |
Proceeds from maturities of short-term investments | 460.6 | 177.4 | 224.2 |
Proceeds from sale of short-term investments | 118 | 46.4 | 177 |
Purchase of acquired business, net of cash acquired | 0 | 0 | (429.2) |
Proceeds from sale of business, net | 0 | 219 | 0 |
Net cash used in investing activities of continuing operations | (474.5) | (202.1) | (388.7) |
Net cash used in investing activities of discontinued operations | (12.4) | (25) | (35.2) |
Cash used in investing activities | (486.9) | (227.1) | (423.9) |
Financing activities: | |||
Payment of acquisition-related contingent consideration | 0 | 0 | (1.8) |
Proceeds from long-term debt borrowings | 0 | 95 | 670 |
Payments on long-term debt borrowings, including finance lease obligations | (145.1) | (387) | (523) |
Proceeds from issuance of common stock | 76.4 | 158 | 92.6 |
Tax withholding on vested equity awards | (16.9) | (21.6) | (6.2) |
Proceeds from convertible notes | 575 | 575 | 0 |
Payments of debt issuance costs | (13.6) | (12.9) | 0 |
Incentive-related refundable escrow deposits | (11.5) | 0 | 0 |
Net cash provided by financing activities of continuing operations | 464.3 | 406.5 | 231.6 |
Net cash provided by financing activities of discontinued operations | 0 | 0 | 4.9 |
Cash provided by financing activities | 464.3 | 406.5 | 236.5 |
Effects of foreign exchange changes on cash and cash equivalents | (0.1) | (0.1) | 0.2 |
Net change in cash and cash equivalents | (51.7) | 381.6 | (13.7) |
Cash and cash equivalents, beginning of period | 500.5 | 118.9 | 132.6 |
Cash and cash equivalents, end of period | $ 448.8 | $ 500.5 | $ 118.9 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Total Equity - Controlled Interest | Total Equity - Controlled InterestCumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income | Non-controlling Interest from Discontinued Operations |
Balance at beginning of period (shares) at Jun. 25, 2017 | 97,674 | |||||||||
Balance at beginning of period at Jun. 25, 2017 | $ 2,222.8 | $ 2,222.8 | $ 0.1 | $ 2,419.5 | $ (202.7) | $ 5.9 | $ 0 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss (income) | (279.9) | (280) | (280) | 0.1 | ||||||
Currency translation gain | 0.6 | 0.6 | 0.6 | |||||||
Unrealized gain (loss) on available-for-sale securities | (5.9) | (5.9) | (5.9) | |||||||
Comprehensive loss | (285.2) | (285.3) | 0.1 | |||||||
Income tax expense from stock option exercises | (6.2) | (6.2) | (6.2) | |||||||
Contributions from non-controlling interests | 4.9 | 4.9 | ||||||||
Stock-based compensation | 43.2 | 43.2 | 43.2 | |||||||
Exercise of stock options and issuance of shares (shares) | 3,814 | |||||||||
Exercise of stock options and issuance of shares | 92.6 | 92.6 | 92.6 | |||||||
Balance at end of period at Jun. 24, 2018 | $ 2,072.1 | $ 10.3 | 2,067.1 | $ 10.3 | $ 0.1 | 2,549.1 | (482.7) | $ 10.3 | 0.6 | 5 |
Balance at end of period (shares) at Jun. 24, 2018 | 101,488 | |||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss (income) | $ (375.1) | (375.1) | (375.1) | |||||||
Currency translation gain | 4.4 | 4.4 | 4.4 | |||||||
Unrealized gain (loss) on available-for-sale securities | 4.5 | 4.5 | 4.5 | |||||||
Comprehensive loss | (366.2) | (366.2) | ||||||||
Income tax expense from stock option exercises | (21.6) | (21.6) | (21.6) | |||||||
Stock-based compensation | 78 | 78 | 78 | |||||||
Exercise of stock options and issuance of shares (shares) | 5,082 | |||||||||
Exercise of stock options and issuance of shares | 158 | 158 | 158 | |||||||
Issuance of convertible notes | 110.6 | 110.6 | 110.6 | |||||||
Balance at end of period at Jun. 30, 2019 | $ 2,041.2 | 2,036.2 | $ 0.1 | 2,874.1 | (847.5) | 9.5 | 5 | |||
Balance at end of period (shares) at Jun. 30, 2019 | 106,570 | 106,570 | ||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Net loss (income) | $ (190.6) | (191.7) | (191.7) | 1.1 | ||||||
Currency translation gain | 0 | |||||||||
Unrealized gain (loss) on available-for-sale securities | 6.5 | 6.5 | 6.5 | |||||||
Comprehensive loss | (184.1) | (185.2) | 1.1 | |||||||
Income tax expense from stock option exercises | (16.9) | (16.9) | (16.9) | |||||||
Stock-based compensation | 54.9 | 54.9 | 54.9 | |||||||
Exercise of stock options and issuance of shares (shares) | 2,660 | |||||||||
Exercise of stock options and issuance of shares | 76.4 | 76.4 | 76.4 | |||||||
Issuance of convertible notes | 145.4 | 145.4 | 145.4 | |||||||
Partial extinguishment of convertible notes due September 1, 2023 | (27.7) | (27.7) | (27.7) | |||||||
Balance at end of period at Jun. 28, 2020 | $ 2,089.2 | $ 2,083.1 | $ 0.1 | $ 3,106.2 | $ (1,039.2) | $ 16 | $ 6.1 | |||
Balance at end of period (shares) at Jun. 28, 2020 | 109,230 | 109,230 |
Business
Business | 12 Months Ended |
Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | Business Overview Cree, Inc. (the Company) is an innovator of wide bandgap semiconductors, focused on silicon carbide and gallium nitride (GaN) materials and devices for power and radio-frequency (RF) applications. The Company's silicon carbide and GaN materials and devices are targeted for applications such as transportation, power supplies, inverters and wireless systems. In addition, the Company is an innovator of specialty lighting-class light emitting diode (LED) products. The Company's LEDs are targeted for use in indoor and outdoor lighting, electronic signs and signals and video displays. Previously, the Company designed, manufactured and sold LED lighting fixtures and lamps for the commercial, industrial and consumer markets. The Company referred to these product lines as the Lighting Products business unit. As discussed in Note 3, “Discontinued Operations,” on May 13, 2019, the Company sold its Lighting Products business unit to IDEAL Industries, Inc. (IDEAL). As discussed more fully below in Note 3, “Discontinued Operations,” on October 18, 2020, the Company entered into a definitive agreement to sell certain assets and subsidiaries comprising its former LED Products segment (the LED Business) to SMART Global Holdings, Inc. (SGH) and its wholly owned newly-created acquisition subsidiary (collectively with SGH, SMART) for up to $300 million, including fixed upfront and deferred payments and contingent consideration (the LED Business Divestiture). As a result, the Company has classified the results and cash flows of the LED Products segment as discontinued operations in its consolidated statements of operations and consolidated statements of cash flows for all periods presented. Additionally, the related assets and liabilities associated with the discontinued operations are classified as held for sale in the consolidated balance sheets. Unless otherwise noted, discussion within these notes to the consolidated financial statements relates to the Company's continuing operations. The Company’s continuing operations consist of the Wolfspeed business, which includes silicon carbide and GaN materials, power devices and RF devices based on wide bandgap semiconductor materials and silicon. The Company’s materials products and power devices are used in electric vehicles, motor drives, power supplies, solar and transportation applications. The Company’s materials products and RF devices are used in military communications, radar, satellite and telecommunication applications. The majority of the Company's products are manufactured at its production facilities located in North Carolina, California, Arkansas and China. The Company also uses contract manufacturers for certain products and aspects of product fabrication, assembly and packaging. Additionally, the Company is in the process of building a silicon carbide fabrication facility in New York. The Company operates research and development facilities in North Carolina, Arizona, Arkansas, New York, California and China (including Hong Kong). Cree, Inc. is a North Carolina corporation established in 1987, and its headquarters are in Durham, North Carolina. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 28, 2020 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and the joint venture. All material intercompany accounts and transactions have been eliminated. Fiscal Year The Company’s fiscal year is a 52 or 53-week period ending on the last Sunday in the month of June. The Company’s 2020 and 2018 fiscal years were 52-week fiscal years. The Company's 2019 fiscal year was a 53-week fiscal year. The Company’s 2021 fiscal year will be a 52-week fiscal year. Reclassifications Certain prior period amounts in the accompanying consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net loss or shareholders’ equity. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities. The Company evaluates its estimates on an ongoing basis, including those related to revenue recognition, product warranty obligations, valuation of inventories, tax related contingencies, valuation of stock-based compensation, valuation of long-lived and intangible assets, other contingencies and litigation, among others. The Company generally bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates. Certain accounting matters that generally require consideration of forecasted financial information were assessed regarding impacts from the COVID-19 outbreak as of June 28, 2020 and through the filing date of the Company's Annual Report on Form 10-K for the fiscal year ended June 28, 2020 using reasonably available information as of those dates. The accounting matters assessed included, but were not limited to, allowance for doubtful accounts, the carrying value of goodwill and other long-lived tangible and intangible assets, the potential impact to earnings of unrealized losses on investments and valuation allowances for tax assets. While the assessments resulted in no material impacts to the consolidated financial statements as of and for the year ended June 28, 2020, the Company believes the full impact of the outbreak remains uncertain and will continue to assess if ongoing developments related to the outbreak may cause future material impacts to its consolidated financial statements. Segment Information U.S. GAAP requires segmentation based on an entity’s internal organization and reporting of revenue and operating income based upon internal accounting methods commonly referred to as the “management approach.” Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (CODM), or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s CODM is its Chief Executive Officer. Historically, the Company determined that it has two operating and reportable segments: LED Products and Wolfspeed. Subsequent to LED Products meeting the criteria for classification as discontinued operations, the Company has determined that it has one operating and reportable segment, Wolfspeed. Cash and Cash Equivalents Cash and cash equivalents consist of unrestricted cash accounts and highly liquid investments with an original maturity of three months or less when purchased. Cash and cash equivalents are stated at cost, which approximates fair value. The Company holds cash and cash equivalents at several major financial institutions, which often exceed insurance limits set by the Federal Deposit Insurance Corporation (FDIC). The Company has not historically experienced any losses due to such concentration of credit risk. Investments Investments in certain securities may be classified into three categories: • Held-to-Maturity – Debt securities that the entity has the positive intent and ability to hold to maturity, which are reported at amortized cost. • Trading – Debt securities that are bought and held principally for the purpose of selling in the near term, which are reported at fair value, with unrealized gains and losses included in earnings. • Available-for-Sale – Debt securities not classified as either held-to-maturity or trading securities, which are reported at fair value with unrealized gains or losses excluded from earnings and reported as a separate component of shareholders' equity. The Company reassesses the appropriateness of the classification (i.e. held-to-maturity, trading or available-for-sale) of its investments at the end of each reporting period. When the fair value of an investment declines below its original cost, the Company considers all available evidence to evaluate whether the decline is other-than-temporary. Among other things, the Company considers the duration and extent of the decline and economic factors influencing the capital markets. For the fiscal years ended June 28, 2020, June 30, 2019, and June 24, 2018, the Company had no other-than-temporary declines below the cost basis of its investments. The Company utilizes specific identification in computing realized gains and losses on the sale of investments. Realized gains and losses on the sale of investments are reported in non-operating (income) expense, net. Investments in marketable securities with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Other long-term investments consist of the Company's approximately 16% common stock ownership interest in Lextar Electronics Corporation (Lextar), which the Company acquired in December 2014. The Company currently utilizes the fair value option in accounting for its investment in Lextar. Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) method or an average cost method. The Company writes down its inventory balances for estimates of excess and obsolete amounts. These write-downs are recognized as a component of cost of revenue. At the point of the write-down, a new lower cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established lower cost basis. If that inventory is subsequently sold, the sale is recorded at the actual selling price and the related cost of revenue is recorded at the new lower cost basis. Property and Equipment Property and equipment are stated at cost and depreciated on a straight-line basis over the assets’ estimated useful lives. Leasehold improvements are amortized over the lesser of the asset life or the term of the related lease. In general, the Company’s policy for useful lives is as follows: Furniture and fixtures 5 years Buildings and building improvements 5 to 40 years Machinery and equipment 3 to 15 years Vehicles 5 years Computer hardware/software 3 years Leasehold improvements Shorter of estimated useful life or lease term Expenditures for repairs and maintenance are charged to expense as incurred. The costs for major renewals and improvements are capitalized and depreciated over their estimated useful lives. The cost and related accumulated depreciation of the assets are removed from the accounts upon disposition and any resulting gain or loss is reflected in operating income. Shipping and Handling Costs Shipping and handling costs are included in cost of revenue, net in the consolidated statements of operations and are recognized as a period expense during the period in which they are incurred. Goodwill and Intangible Assets The Company recognizes the assets acquired and liabilities assumed in business combinations at their respective fair values at the date of acquisition, with any excess purchase price recognized as goodwill. Valuation of intangible assets entails significant estimates and assumptions including, but not limited to, estimating future cash flows from product revenue, developing appropriate discount rates, continuation of customer relationships and renewal of customer contracts, and approximating the useful lives of the intangible assets acquired. Goodwill The Company recognizes goodwill as an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company tests goodwill for impairment at least annually as of the first day of the fiscal fourth quarter, or when indications of potential impairment exist. The Company monitors for the existence of potential impairment indicators throughout the fiscal year. The Company conducts impairment testing for goodwill at the reporting unit level. Reporting units may be operating segments as a whole, or an operation one level below an operating segment, referred to as a component. The Company has determined that it has one reporting unit, Wolfspeed. The Company may initiate goodwill impairment testing by considering qualitative factors to determine whether it is more likely than not that a reporting unit's carrying value is greater than its fair value. Such factors may include the following, among others: a significant decline in the reporting unit ’ s expected future cash flows; a sustained, significant decline in the Company ’ s stock price and market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; and slower growth rates; as well as changes in management, key personnel, strategy and customers . If the Company's qualitative assessment indicates it is more likely than not that the estimated fair value of a reporting unit exceeds its carrying value, no further analysis is required and goodwill is not impaired. Otherwise, the Company performs a quantitative goodwill impairment test to determine if goodwill is impaired. The quantitative test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets associated with the reporting unit, goodwill is not considered impaired. If the carrying value of the net assets associated with the reporting unit exceeds the fair value of the reporting unit, the Company recognizes an impairment loss in an amount equal to the excess, not to exceed the carrying value of the reporting unit's goodwill. Once an impairment loss is recognized, the adjusted carrying value of the goodwill becomes the new accounting basis of the goodwill for the reporting unit. The Company derives a reporting unit's fair value through a combination of the market approach (guideline transaction method and guideline public company method) and the income approach (a discounted cash flow analysis). The income approach utilizes a discount rate from a capital asset pricing model. The fair values are reconciled back to the Company ’ s consolidated market capitalization. Finite-Lived Intangible Assets U.S. GAAP requires that intangible assets, other than goodwill and indefinite-lived intangibles, must be amortized over their useful lives. The Company is currently amortizing its acquired intangible assets with finite lives over periods ranging from four Patent rights reflect costs incurred by the Company in applying for and maintaining patents owned by the Company and costs incurred in purchasing patents and related rights from third parties. Licensing rights reflect costs incurred by the Company in acquiring licenses under patents owned by others. The Company amortizes both on a straight-line basis over the expected useful life of the associated patent rights, which is generally the lesser of 20 years from the date of the patent application or the license period. Royalties payable under licenses for patents owned by others are generally expensed as incurred. The Company reviews its capitalized patent portfolio and recognizes impairment charges when circumstances warrant, such as when patents have been abandoned or are no longer being pursued. Long-Lived Assets The Company reviews long-lived assets such as property and equipment for impairment based on changes in circumstances that indicate their carrying amounts may not be recoverable. In making these determinations, the Company uses certain assumptions, including but not limited to: (1) estimations of the fair market value of the assets and (2) estimations of future cash flows expected to be generated by these assets, which are based on additional assumptions such as asset utilization, length of service the asset will be used in the Company’s operations and estimated salvage values. Contingent Liabilities The Company recognizes contingent liabilities when it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Disclosure in the notes to the financial statements is required for loss contingencies that do not meet both these conditions if there is a reasonable possibility that a loss may have been incurred. See Note 16, “Commitments and Contingencies,” for a discussion of loss contingencies in connection with pending and threatened litigation. The Company expenses as incurred the costs of defending legal claims against the Company. Revenue Recognition Revenue is recognized when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. Substantially all of the Company's revenue is derived from product sales. Revenue is recognized at a point in time based on the Company’s evaluation of when the customer obtains control of the products, and all performance obligations under the terms of the contract are satisfied. If customer acceptance clauses are present and it cannot be objectively determined that control has been transferred based on the contract and shipping terms, revenue is only recorded when customer acceptance is received and all performance obligations have been satisfied. Sales of products typically do not include more than one performance obligation. A substantial portion of the Company’s products are sold through distributors. Distributors stock inventory and sell the Company’s products to their own customer base, which may include: value added resellers; manufacturers who incorporate the Company’s products into their own manufactured goods; or ultimate end users of the Company’s products. The Company recognizes revenue upon shipment of its products to its distributors. This arrangement is often referred to as a “sell-in” or “point-of-purchase” model as opposed to a “sell-through” or “point-of-sale” model, where revenue is deferred and not recognized until the distributor sells the product through to their customer. Master supply or distributor agreements are in place with many of the Company's customers and contain terms and conditions including, but not limited to payment, delivery, incentives and warranty. These agreements typically do not require minimum purchase commitments. If a master supply, distributor or other similar agreement is not in place with a customer, the Company considers a purchase order, which is governed by the Company’s standard terms and conditions, to be the contract governing the relationship with that customer. Pricing terms are negotiated independently on a stand-alone basis. Revenue is measured based on the amount of net consideration to which the Company expects to be entitled to receive in exchange for products or services. Variable consideration is recognized as a reduction of net revenue with a corresponding reserve at the time of revenue recognition, and consists primarily of sales incentives or rebates, price concessions and return allowances. Variable consideration is estimated based on contractual terms, historical analysis of customer purchase volumes, or historical analysis using specific data for the type of consideration being assessed. The Company offers product warranties and establishes liabilities for estimated warranty costs based upon historical experience and specific warranty provisions. Some of the Company’s distributors are provided limited rights that allow them to return a portion of inventory (product exchange rights or stock rotation rights) and receive credits for changes in selling prices (price protection rights) or customer pricing arrangements under the Company’s “ship and debit” program or other targeted sales incentives. These estimates are calculated based upon historical experience, product shipment analysis, current economic conditions, on-hand inventory at the distributor, and customer contractual arrangements. The Company believes that it can reasonably and reliably estimate the allowance for distributor credits at the time of sale. Accordingly, estimates for these rights are recognized at the time of sale as a reduction of product revenue and as a contract liability. From time to time, the Company will issue a new price book for its products, and provide a credit to certain distributors for inventory quantities on hand if required by the Company’s agreement with the distributor. This practice is known as price protection. These credits are applied against the reserve that the Company establishes upon initial shipment of product to the distributor. Under the ship and debit program, products are sold to distributors at negotiated prices and the distributors are required to pay for the products purchased within the Company’s standard commercial terms. Subsequent to the initial product purchase, a distributor may request a price allowance for a particular part number(s) for certain target customers, prior to the distributor reselling the particular part to that customer. If the Company approves an allowance and the distributor resells the product to the target customer, the Company credits the distributor according to the allowance the Company approved. These credits are applied against the reserve that the Company establishes upon initial shipment of product to the distributor. In addition, the Company runs sales incentive programs with certain distributors, such as product rebates. The Company recognizes these incentives at the time they are offered to customers and records a credit to their account with an offsetting expense as either a reduction to revenue, increase to cost of revenue, or marketing expense depending on the type of sales incentive. The Company also has inventory consignment agreements in which revenue is recognized at a point in time, when the customer or distributor pulls product from consignment inventory that the Company stores at designated locations. Delivery and transfer of control occur at that point, when title and risk of loss transfers and the customer or distributor becomes obligated to pay for the products pulled from inventory. Until the products are pulled for use or sale by the customer or distributor, the Company retains control over the products’ disposition, including the right to pull back or relocate the products. From time to time, the Company may enter into licensing arrangements related to its intellectual property. Revenue from licensing arrangements is recognized when earned and estimable. The timing of revenue recognition is dependent on the terms of each license agreement. Generally, the Company will recognize non-refundable upfront licensing fees related to patent licenses immediately upon receipt of the funds if the Company has no significant future obligations to perform under the arrangement. However, the Company will defer recognition for licensing fees where the Company has significant future performance requirements, the fee is not fixed (such as royalties earned as a percentage of future revenue), or the fees are otherwise contingent. Leases At lease inception, the Company determines an arrangement is a lease if the contract involves the use of a distinct identified asset, the lessor does not have substantive substitution rights and the Company obtains control of the asset throughout the period by obtaining substantially all of the economic benefit of the asset and the right to direct the use of the asset. Right-of-use assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Assets and liabilities are recognized based on the present value of lease payments over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Because most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company would use the implicit rate when readily determinable. Operating lease expense is generally recognized on a straight-line basis over the lease term. Finance lease assets are amortized on a straight-line basis over the shorter of the useful life of the asset or the lease term. Interest expense on the finance lease liability is recognized using the effective interest rate method and is presented within interest expense on the Company’s consolidated statements of operations. The Company has agreements with lease and non-lease components, which are accounted for as a single lease component. Leases with a lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as increases in lease payments based on changes in index rates, are not included in the right-of-use assets or liabilities. These variable lease payments are expensed as incurred. Accounts Receivable For product revenue, the Company typically invoices its customers at the time of shipment for the sales order value of products shipped. Accounts receivable are recognized at the invoiced amount and are not subject to any interest or finance charges. The Company does not have any off-balance sheet credit exposure related to any of its customers. Allowance for Doubtful Accounts The Company evaluates the collectability of accounts receivable based on a combination of factors. In cases where the Company becomes aware of circumstances that may impair a specific customer’s ability to meet its financial obligations subsequent to the original sale, the Company will recognize an allowance against amounts due, and thereby reduce the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company recognizes an allowance for doubtful accounts based on the length of time the receivables are past due and consideration of other factors such as industry conditions, the current business environment and the Company’s historical experience. Advertising The Company expenses the costs of producing advertisements at the time production occurs and expenses the cost of communicating the advertising in the period in which the advertising is used. Advertising costs are included in sales, general and administrative expenses in the consolidated statements of operations and amounted to approximately $3.8 million, $3.7 million, and $3.5 million for the years ended June 28, 2020, June 30, 2019 and June 24, 2018, respectively. Research and Development Research and development activities are expensed when incurred. Loss Per Share Basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the applicable period. Diluted loss per share is determined in the same manner as basic loss per share except that the number of shares is increased to assume exercise of potentially dilutive stock options, nonvested restricted stock and contingently issuable shares using the treasury stock method, unless the effect of such increases would be anti-dilutive. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recognized in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. Stock-Based Compensation The Company recognizes compensation expense for all share-based payments granted based on the fair value of the shares on the date of grant. Compensation expense is then recognized over the award’s vesting period. Fair Value of Financial Instruments Cash and cash equivalents, short-term investments, accounts and interest receivable, accounts payable and other liabilities approximate their fair values at June 28, 2020 and June 30, 2019 due to the short-term nature of these instruments. Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are recognized for deductible temporary differences, along with net operating loss carryforwards and credit carryforwards, if it is more likely than not that the tax benefits will be realized. To the extent a deferred tax asset cannot be recognized under the preceding criteria, valuation allowances are established. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Taxes payable which are not based on income are accrued ratably over the period to which they apply. For example, payroll taxes are accrued each period end based upon the amount of payroll taxes that are owed as of that date; whereas taxes such as property taxes and franchise taxes are accrued over the fiscal year to which they apply if paid at the end of a period, or they are amortized ratably over the fiscal year if they are paid in advance. Foreign Currency Translation Foreign currency translation adjustments are recognized in other comprehensive income (loss) in the consolidated statements of comprehensive loss for changes between the foreign subsidiaries’ functional currency and the United States (U.S.) dollar. Foreign currency translation gains and losses are included in the Company’s equity account balance of accumulated other comprehensive income, net of taxes in the consolidated balance sheets until such time that the subsidiaries are either sold or substantially liquidated. Due to the sale of the Lighting Products business unit in fiscal 2019, $5.2 million of currency translation loss was reclassified out of other comprehensive income (loss) and recognized in the consolidated statements of operations as part of the loss on transaction. The Company and its subsidiaries transact business in currencies other than the U.S. Dollar and as such, the Company will continue to experience varying amounts of foreign currency exchange gains and losses. Joint Venture Effective July 17, 2017, the Company entered into a Shareholders Agreement with San’an Optoelectronics Co., Ltd. (San’an) and Cree Venture LED Company Limited (Cree Venture LED) pursuant to which the Company and San’an funded their contributions to Cree Venture LED and agreed upon the management and operation of Cree Venture LED. The Company contributed $5.1 million of cash for a 51% ownership interest and San’an contributed $4.9 million of cash for a 49% ownership interest. Cree Venture LED has a five-member board of directors, three of which were designated by the Company and two of which were designated by San’an. As a result of the Company's majority voting interest, the Company consolidates the operations of Cree Venture LED. The Company classifies the 49% ownership interest held by San'an as noncontrolling interest on the consolidated balance sheet. The noncontrolling interest increased by $1.1 million, $0.0 million and $0.1 million for its share of net income from Cree Venture LED for the fiscal years ending June 28, 2020, June 30, 2019 and June 24, 2018, respectively. The Company's interest in Cree Venture LED is included in the pending LED Business Divestiture and its related activity is classified as discontinued operations. Supplemental Cash Flow Information Cash paid for interest was $5.9 million, $4.0 million, and $6.1 million for the fiscal years ending June 28, 2020, June 30, 2019 and June 24, 2018, respectively. Cash paid for taxes, net of refunds received, was $3.6 million and $0.5 million for the fiscal years ending June 28, 2020 and June 30, 2019, respectively. Cash refunds received, net of taxes paid, was $5.4 million for the fiscal year ended June 24, 2018. Recently Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02: Leases (Topic 842) (ASC 842), and ASU 2018-10: Codification Improvements to ASC 842, Leases. These ASUs require that a lessee recognize in its statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term and requires enhanced disclosures about an entity’s leasing arrangements. The Company adopted this standard on July 1, 2019, under the modified retrospective transition approach with the cumulative effect of application recognized at the effective date, without adjustment to prior comparative periods. The Company elected to utilize the transition package of practical expedients that allows the Company to not reassess (1) whether any expired or existing contracts are leases, or contain leases, (2) the lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. Further, the Company elected the practical expedient to not separate lease and non-lease components for all leases and account for the combined lease and non-lease components as a single lease component. The Company also made an accounting policy election to exclude leases with an initial term of 12 months or less from the consolidated balance sheets. The adoption of the new standard resulted in the recognition of $11.0 million of lease liabilities with corresponding right-of-use assets of $11.0 million as of July 1, 2019. As required, the right-of-use assets include the effect of reclassifying certain balances including deferred and prepaid rent, a portion of facilities-related restructuring accrual reserves, and a favorable lease intangible asset previously recognized in connection with an acquisition. The Company did not have a cumulative-effect adjustment to retained earnings as a result of the adoption of the new standard. The standard did not materially impact the Company's results from operations and had no impact on cash flows. See Note 5, "Leases," for additional disclosures, as required by the new standard. The reported results as of and for the year ended June 28, 2020 reflect the application of the new accounting guidance, while the reported results for prior periods have not been adjusted and continue to be reported in accordance with the Company's historical accounting under ASC 840, Leases. Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also improves consistent application and simplifies other areas of Topic 740 by clarifying and amending existing guidance. Early a |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Jun. 28, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Lighting Business On May 13, 2019, the Company completed the sale of (a) certain manufacturing facilities and equipment, inventory, intellectual property rights, contracts and real estate of the Company used by the Company's Lighting Products business unit, which includes LED lighting fixtures, lamps and corporate lighting solutions for commercial, industrial and consumer applications, and (b) all of the issued and outstanding equity interests of E-conolight LLC (E-conolight), Cree Canada Corp. and Cree Europe S.r.l., each a wholly owned subsidiary of the Company (collectively, the Lighting Products business unit) to IDEAL, pursuant to the Purchase Agreement, dated March 14, 2019, as amended between Cree and IDEAL. The Company retained certain liabilities associated with the Lighting Products business unit arising prior to the closing of the sale. The Lighting Products business unit represented the Lighting Products segment disclosed in the Company's historical financial statements. The aggregate net proceeds from the sale of the Lighting Products business unit was $219.0 million in cash, which is subject to certain adjustments. Additionally, the Company is entitled to an earnout payment subject to the future performance of the Lighting Products business unit. In connection with the transaction, the Company and IDEAL entered into certain ancillary and related agreements, including (i) an Intellectual Property Assignment and License Agreement, which assigned to IDEAL certain intellectual property owned by the Company and licensed to IDEAL certain additional intellectual property owned by the Company; (ii) a Transition Services Agreement (the TSA), which is designed to ensure a smooth transition of the Lighting Products business unit to IDEAL; (iii) an LED Supply Agreement (the LED Supply Agreement), pursuant to which the Company will supply IDEAL with certain LED chip and component products for three years; and (iv) a Real Estate License Agreement, which will allow IDEAL to use certain premises owned by the Company to conduct the Lighting Products business unit after closing. The Company recognized a loss on the sale of $66.2 million. The Company has classified the results of the Lighting Products business unit as discontinued operations, the results of which for the fiscal years ended June 30, 2019 and June 24, 2018 are as follows: Fiscal Years Ended June 30, 2019 June 24, 2018 (in millions of U.S. Dollars) Revenue, net $419.8 $568.8 Cost of revenue, net 324.3 463.2 Gross profit 95.5 105.6 Research and development 37.1 35.9 Sales, general and administrative 100.6 97.6 Amortization or impairment of acquisition-related intangibles 116.4 23.6 Goodwill impairment charges 90.3 247.5 Loss on disposal or impairment of long-lived assets 2.0 2.1 Operating loss (250.9) (301.1) Non-operating income — (1.3) Loss before income taxes and loss on sale (250.9) (299.8) Loss on sale 66.2 — Loss before income taxes (317.1) (299.8) Income tax expense (benefit) 0.1 (36.3) Net loss ($317.2) ($263.5) The Company recognized $10.5 million and $1.6 million in administrative fees for the fiscal years ended June 28, 2020 and June 30, 2019, respectively, relating to the TSA, of which $1.6 million and $1.6 million was accrued in accounts receivable, net in the consolidated balance sheets as of June 28, 2020 and June 30, 2019, respectively. These fees were recorded as a reduction of sales, general and administrative expense in the consolidated statements of operations. The LED Supply Agreement will be transferred in connection with the LED Business Divestiture. The Company recognized $12.0 million and $2.1 million of revenue related to the LED Supply Agreement for the fiscal years ended June 28, 2020 and June 30, 2019, respectively, which are included in revenue from discontinued operations. As of June 28, 2020, $0.7 million of revenue related to the LED Supply Agreement was accrued in accounts receivable, net, and is included in current assets of discontinued operations on the consolidated balance sheets. Additionally, the Company recorded a contract liability of $9.9 million and $13.4 million relating to the LED Supply Agreement as of June 28, 2020 and June 30, 2019, respectively. The contract liability is recorded in current and long-term liabilities of discontinued operations on the consolidated balance sheets. LED Business On October 18, 2020, the Company entered into an Asset Purchase Agreement (the LED Purchase Agreement) with SMART with respect to the LED Business Divestiture. The transaction is targeted to close in the first calendar quarter of 2021, subject to customary closing conditions. Pursuant to the LED Purchase Agreement, the Company will sell to SMART, and SMART will (i) purchase from the Company, (a) certain equipment, inventory, intellectual property rights, contracts, and real estate comprising the Company’s LED Products segment, (b) all of the issued and outstanding equity interests of Cree Huizhou Solid State Lighting Company Limited, a limited liability company organized under the laws of the People’s Republic of China and an indirect wholly owned subsidiary of the Company, and (c) the Company’s ownership interest in Cree Venture LED Company Limited, the Company’s joint venture with San’an Optoelectronics Co., Ltd. (collectively, the LED Business); and (ii) assume certain liabilities related to the LED Business. The Company will retain certain assets used in and pre-closing liabilities associated with the LED Products segment. The purchase price for the LED Business consists of (i) a payment of $50 million in cash, subject to customary adjustments, (ii) an unsecured promissory note issued to the Company by SGH in the amount of $125 million (the Purchase Price Note), (iii) the potential to receive an earn-out payment of up to $125 million based on the revenue and gross profit performance of the LED Business in the first four full fiscal quarters following the closing (the Earnout Period), also payable in the form of a unsecured promissory note of SGH (the Earnout Note), and (iv) the assumption of certain liabilities. The Purchase Price Note and the Earnout Note, if earned, will accrue interest at a rate of three-month LIBOR plus 3.0% with interest paid every three months and one bullet payment of principal and all accrued and unpaid interest will be payable on each note’s maturity date. The Purchase Price Note will mature on August 15, 2023, and the Earnout Note, if issued, will mature on the third anniversary of the completion of the Earnout Period. In connection with the closing of the LED Business Divestiture, the Company and SMART will also enter into certain ancillary and related agreements, including (i) an Intellectual Property Assignment and License Agreement, which will assign to SMART certain intellectual property owned by the Company and its affiliates and license to SMART certain additional intellectual property owned by the Company, (ii) a Transition Services Agreement, which is designed to ensure a smooth transition of the LED Business to SMART, (iii) a Wafer Supply and Fabrication Services Agreement (the Wafer Supply Agreement), pursuant to which the Company will supply SMART with certain silicon carbide materials and fabrication services for four years, and (iv) a Real Estate License Agreement, which will allow SMART to use certain premises owned by the Company to conduct the LED Business for a period of up to 24 months after closing. The completion of the LED Business Divestiture is subject to the satisfaction or waiver of a number of conditions set forth in the LED Purchase Agreement, including customary closing conditions. The LED Purchase Agreement provides for customary termination rights of the parties. Because the LED Business Divestiture represents a strategic shift that will have a major effect on the Company’s operations and financial results, the Company has classified the results of the LED Business as discontinued operations in the Company’s consolidated statements of operations for all periods presented. Additionally, the related assets and liabilities associated with discontinued operations are classified as held for sale in the consolidated balance sheets. The following table presents the financial results of the LED Business as income (loss) from discontinued operations, net of income taxes in the Company's consolidated statements of operations: Fiscal Years Ended June 28, 2020 June 30, 2019 June 24, 2018 (in millions of U.S. Dollars) Revenue, net $433.2 $541.8 $596.3 Cost of revenue, net 343.4 394.5 439.3 Gross profit 89.8 147.3 157.0 Operating expenses: Research and development 32.2 36.8 37.5 Sales, general and administrative 29.7 31.8 26.5 (Income) loss on disposal or impairment of other assets (0.1) (0.3) 0.5 Other operating expense 13.3 1.4 — Operating income 14.7 77.6 92.5 Non-operating income (0.5) (0.1) — Income before income taxes 15.2 77.7 92.5 Income tax expense 8.2 17.1 34.0 Net income 7.0 60.6 58.5 Net income attributable to noncontrolling interest 1.1 — 0.1 Net income attributable to controlling interest $5.9 $60.6 $58.4 The following table presents the assets and liabilities of the LED Business classified as discontinued operations: Fiscal Years Ended June 28, 2020 June 30, 2019 (in millions of U.S. Dollars) Assets Short-term investments 12.0 9.4 Accounts receivable, net 41.6 59.7 Inventories 57.2 75.6 Prepaid expenses 0.1 0.1 Other current assets 5.1 6.4 Current assets of discontinued operations 116.0 151.2 Property and equipment, net 60.3 64.6 Goodwill 180.3 180.3 Intangible assets, net 22.7 23.8 Deferred income taxes 5.1 4.7 Other assets 1.7 — Long-term assets of discontinued operations 270.1 273.4 Liabilities Accounts payable and accrued expenses 31.0 36.4 Accrued contract liabilities 24.1 30.7 Income tax payable 2.0 1.7 Other current liabilities 3.1 2.7 Current liabilities of discontinued operations 60.2 71.5 Other long-term liabilities 9.8 7.6 Long-term liabilities of discontinued operations 9.8 7.6 |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jun. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition In accordance with ASC 606, the Company follows a five-step approach for recognizing revenue, consisting of the following: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. Contract liabilities primarily include various rights of return and customer deposits, as well as deferred revenue and price protection guarantees. Contract liabilities were $47.9 million and $42.4 million as of June 28, 2020 and June 30, 2019, respectively. Contract liabilities increased due to increased customer deposits partially offset by lower reserve liabilities. Contract liabilities are recorded within accrued contract liabilities and other long-term liabilities on the balance sheet. Before the adoption of ASC 606, liabilities relating to various rights of return were recorded as a reduction to accounts receivable. The adjustments recorded as a result of adopting ASC 606 did not impact net cash provided by operating activities; however, they did impact the changes in operating assets and liabilities for the related accounts within the disclosure of operating activities on the statement of cash flows. As of June 25, 2018, the date the Company adopted ASC 606, contract liabilities were $11.7 million. Practical Expedients and Exemptions The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Incidental contract costs that are not material in context of the delivery of products are expensed as incurred. Sales commissions are expensed when the amortization period is less than one year. Contract assets, such as costs to obtain or fulfill contracts, are an insignificant component of the Company’s revenue recognition process. The majority of the Company’s fulfillment costs as a manufacturer consist of inventory, fixed assets, and intangible assets, all of which are accounted for under the respective guidance for those asset types. The Company’s accounts receivable balance represents the Company’s unconditional right to receive consideration from its customers with contracts. Payments are typically due within 30 days of the completion of the performance obligation and invoicing, and therefore do not contain significant financing components. Sales tax, value-added tax, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue, and shipping and handling costs are treated as fulfillment activities and are included in cost of revenue in the Company’s consolidated statements of operations. For the fiscal years ended June 28, 2020 and June 30, 2019, the Company did not recognize any revenue that was included in contract liabilities as of July 1, 2019 and June 25, 2018, respectively. Revenue recognized related to performance obligations that were satisfied or partially satisfied in previous periods was not material for the fiscal years ended June 28, 2020 and June 30, 2019. Geographic Information The Company conducts business in several geographic areas. Revenue is attributed to a particular geographic region based on the shipping address for the products. Disaggregated revenue from external customers by geographic area is as follows: For the Years Ended June 28, 2020 June 30, 2019 June 24, 2018 (in millions of U.S. Dollars) Revenue % of Revenue Revenue % of Revenue Revenue % of Revenue Europe 171.4 36 % 162.9 30 % 82.9 25 % United States 106.5 23 % 122.0 23 % 92.4 28 % China 65.0 14 % 116.3 22 % 82.4 25 % Other 127.8 27 % 137.0 25 % 70.9 22 % Total $ 470.7 $ 538.2 $ 328.6 |
Leases
Leases | 12 Months Ended |
Jun. 28, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company primarily leases manufacturing, office and warehousing space. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. For details on the Company's lease policies, see the significant accounting policy disclosures in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies”. The Company's finance lease obligations primarily relate to a manufacturing space in Malaysia and a 49-year ground lease on a future silicon carbide fabrication facility in New York. Balance Sheet Lease assets and liabilities as of June 28, 2020, and the corresponding balance sheet classifications, are as follows (in millions of U.S. Dollars): Operating Leases: Right-of-use asset (1) $12.3 Current lease liability (2) 4.8 Non-current lease liability (3) 7.5 Total operating lease liabilities 12.3 Finance Leases: Finance lease assets (4) 15.4 Current portion of finance lease liabilities 3.6 Finance lease liabilities, less current portion 11.4 Total finance lease liabilities 15.0 (1) Within other assets on the consolidated balance sheets. (2) Within other current liabilities (3) Within other long-term liabilities (4) Within property and equipment, net on the consolidated balance sheets. Statement of Operations Operating lease expense was $5.4 million in fiscal 2020. Short-term lease expense was $0.1 million and variable lease income was $0.1 million in fiscal 2020. Lease income was immaterial in fiscal 2020. Finance lease amortization was $0.7 million and interest expense was $0.2 million in fiscal 2020. Cash Flows Cash flow information consisted of the following: Fiscal year ended (in millions of U.S. Dollars) June 28, 2020 Cash used in operating activities: Cash paid for operating leases $5.5 Cash paid for interest portion of financing leases 0.1 Cash used in financing activities: Cash paid for principal portion of finance leases 0.8 Non-cash operating activities: Operating lease additions due to adoption of ASC 842 11.0 Operating lease additions and modifications, net 6.4 Finance lease additions 15.7 Lease Liability Maturities Maturities of operating and finance lease liabilities as of June 28, 2020 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 27, 2021 $5.3 $3.9 $9.2 June 26, 2022 3.8 1.7 5.5 June 25, 2023 1.8 0.7 2.5 June 30, 2024 0.9 0.7 1.6 June 29, 2025 0.8 0.7 1.5 Thereafter 0.4 15.2 15.6 Total lease payments 13.0 22.9 35.9 Imputed lease interest (0.7) (7.9) (8.6) Total lease liabilities $12.3 $15.0 $27.3 Supplemental Disclosures Operating Leases Finance Leases Weighted average remaining lease term (in months) (1) 40 337 Weighted average discount rate (2) 3.52 % 3.00 % (1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 31 months. (2) Weighted average discount rate of finance leases without the 49-year ground lease is 3.51%. The aggregate future non-cancelable minimum rental payments on operating leases as of June 30, 2019, were as follows: Fiscal Years Ending (in millions of U.S. Dollars) June 28, 2020 $3.2 June 27, 2021 2.2 June 26, 2022 1.2 June 25, 2023 0.7 June 30, 2024 — Thereafter — Total future minimum rental payments $7.3 |
Leases | Leases The Company primarily leases manufacturing, office and warehousing space. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. For details on the Company's lease policies, see the significant accounting policy disclosures in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies”. The Company's finance lease obligations primarily relate to a manufacturing space in Malaysia and a 49-year ground lease on a future silicon carbide fabrication facility in New York. Balance Sheet Lease assets and liabilities as of June 28, 2020, and the corresponding balance sheet classifications, are as follows (in millions of U.S. Dollars): Operating Leases: Right-of-use asset (1) $12.3 Current lease liability (2) 4.8 Non-current lease liability (3) 7.5 Total operating lease liabilities 12.3 Finance Leases: Finance lease assets (4) 15.4 Current portion of finance lease liabilities 3.6 Finance lease liabilities, less current portion 11.4 Total finance lease liabilities 15.0 (1) Within other assets on the consolidated balance sheets. (2) Within other current liabilities (3) Within other long-term liabilities (4) Within property and equipment, net on the consolidated balance sheets. Statement of Operations Operating lease expense was $5.4 million in fiscal 2020. Short-term lease expense was $0.1 million and variable lease income was $0.1 million in fiscal 2020. Lease income was immaterial in fiscal 2020. Finance lease amortization was $0.7 million and interest expense was $0.2 million in fiscal 2020. Cash Flows Cash flow information consisted of the following: Fiscal year ended (in millions of U.S. Dollars) June 28, 2020 Cash used in operating activities: Cash paid for operating leases $5.5 Cash paid for interest portion of financing leases 0.1 Cash used in financing activities: Cash paid for principal portion of finance leases 0.8 Non-cash operating activities: Operating lease additions due to adoption of ASC 842 11.0 Operating lease additions and modifications, net 6.4 Finance lease additions 15.7 Lease Liability Maturities Maturities of operating and finance lease liabilities as of June 28, 2020 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 27, 2021 $5.3 $3.9 $9.2 June 26, 2022 3.8 1.7 5.5 June 25, 2023 1.8 0.7 2.5 June 30, 2024 0.9 0.7 1.6 June 29, 2025 0.8 0.7 1.5 Thereafter 0.4 15.2 15.6 Total lease payments 13.0 22.9 35.9 Imputed lease interest (0.7) (7.9) (8.6) Total lease liabilities $12.3 $15.0 $27.3 Supplemental Disclosures Operating Leases Finance Leases Weighted average remaining lease term (in months) (1) 40 337 Weighted average discount rate (2) 3.52 % 3.00 % (1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 31 months. (2) Weighted average discount rate of finance leases without the 49-year ground lease is 3.51%. The aggregate future non-cancelable minimum rental payments on operating leases as of June 30, 2019, were as follows: Fiscal Years Ending (in millions of U.S. Dollars) June 28, 2020 $3.2 June 27, 2021 2.2 June 26, 2022 1.2 June 25, 2023 0.7 June 30, 2024 — Thereafter — Total future minimum rental payments $7.3 |
Acquisition
Acquisition | 12 Months Ended |
Jun. 28, 2020 | |
Business Combinations [Abstract] | |
Acquisition | Acquisition Infineon Radio Frequency Power Business On March 6, 2018, the Company acquired certain assets of the Infineon Technologies AG (Infineon) Radio Frequency Power Business (RF Power), pursuant to an asset purchase agreement with Infineon in exchange for a base purchase price of $429.2 million, subject to certain adjustments. As part of the agreement, the Company paid $427.0 million of cash on the purchase date and agreed to purchase certain additional non-U.S. property and equipment related to the RF Power business from Infineon for approximately $2.2 million, which was completed during the fourth quarter of fiscal 2018. The acquisition allows the Company to expand its product portfolio into the wireless market. The acquisition of the RF Power business from Infineon was accounted for as a business combination. The assets, liabilities and operating results of the RF Power business have been included in the Company's consolidated financial statements from the date of acquisition. Additionally, the RF Power business's results from operations are reported as part of the Company's Wolfspeed segment. The final purchase price allocation is as follows: (in millions of U.S. Dollars) Inventories $22.5 Property and equipment 11.7 Other receivables 0.4 Intangible assets 149.0 Goodwill 249.0 Accrued expenses and liabilities (3.4) Net assets acquired $429.2 The weighted average life of the acquired intangible assets is approximately 13.8 years. The components of the acquired intangible assets are as follows: (in millions of U.S. Dollars, except year data) Asset Amount Estimated Life (in years) Lease agreement (1) $1.0 10 Customer relationships 92.0 15 Developed technology 44.0 14 Non-compete agreements 12.0 4 Total identifiable intangible assets $149.0 (1) In the first quarter of fiscal 2020, the acquired lease agreement was reclassified from an intangible asset to a right-of-use asset in accordance with the Company's adoption of ASC 842, Leases. Goodwill acquired largely consists of the manufacturing and other synergies of the combined companies, and the value of the assembled workforce. For tax purposes, in accordance with Section 197 of the Internal Revenue Code of 1986, as amended (the IRC), $245.0 million of the acquired goodwill will be amortized over 15 years. The results of the RF Power business reflected in the Company's consolidated statements of operations for the fiscal year ended June 24, 2018 from the date of acquisition (March 6, 2018) are as follows: (in millions of U.S. Dollars) Amount Revenue $29.0 Net loss from continuing operations (11.7) The Company incurred total transaction costs related to the acquisition of approximately $3.8 million. These costs were primarily included in operating expenses in the consolidated statements of operations in fiscal 2018. Supplemental Pro Forma Financial Information The following supplemental pro forma information presents the consolidated financial results as if the RF Power transaction had occurred at the beginning of fiscal 2018: Fiscal Year Ended (in millions of U.S. Dollars, except share data) June 24, 2018 Revenue $394.0 Net loss from continuing operations (79.3) Basic and diluted loss per share from continuing operations ($0.80) |
Financial Statement Details
Financial Statement Details | 12 Months Ended |
Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Details | Financial Statement Details Accounts Receivable, net Accounts receivable, net consisted of the following: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Billed trade receivables $71.5 $68.1 Unbilled contract receivables 1.2 0.7 Royalties 0.4 0.6 73.1 69.4 Allowance for bad debts (0.7) (0.2) Accounts receivable, net $72.4 $69.2 Changes in the Company’s allowance for bad debts were as follows: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 June 24, 2018 Balance at beginning of period $0.2 $0.2 $0.1 Current period provision change 0.6 — 0.2 Write-offs, net of recoveries (0.1) — (0.1) Balance at end of period $0.7 $0.2 $0.2 Inventories Inventories consisted of the following: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Raw material $36.9 $31.5 Work-in-progress 73.9 65.3 Finished goods 11.1 15.0 Inventories $121.9 $111.8 In addition to inventory held by the Company associated with the Wolfspeed business, the Company holds inventory related to a future Wafer Supply Agreement to be entered into in connection with the LED Business Divestiture as well as unallocated inventoried costs consisting primarily of manufacturing employees’ stock-based compensation, profit sharing and quarterly or annual incentive compensation, matching contributions under the Company’s 401(k) plan, and acquisition related costs. (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Wolfspeed $97.3 $81.6 Inventory related to future Wafer Supply Agreement 19.0 23.6 Unallocated inventories 5.6 6.6 Inventories $121.9 $111.8 Property and Equipment, net Property and equipment, net consisted of the following: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Machinery and equipment $859.9 $842.3 Land and buildings 363.1 345.2 Computer hardware/software 46.8 42.0 Furniture and fixtures 8.1 8.6 Leasehold improvements and other 9.7 3.8 Vehicles 0.6 0.7 Finance lease assets 15.4 — Construction in progress 366.8 229.1 Property and equipment, gross 1,670.4 1,471.7 Accumulated depreciation (899.6) (911.1) Property and equipment, net $770.8 $560.6 Depreciation of property and equipment totaled $76.7 million, $64.9 million and $50.9 million for the years ended June 28, 2020, June 30, 2019 and June 24, 2018, respectively. During the years ended June 28, 2020, June 30, 2019 and June 24, 2018, the Company recognized approximately $3.3 million, $0.2 million and $7.4 million, respectively, as losses on disposals or impairments of property and equipment. For the year ended June 28, 2020, these charges are reflected in other operating expense as all amounts related to the Company's factory optimization plan. For the years ended June 30, 2019 and June 24, 2018, these charges are reflected in loss on disposal or impairment of other assets in the consolidated statements of operations. The Company's tangible long-lived assets by country are as follows: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 United States $758.2 $552.4 China 2.6 2.7 Other 10.0 5.5 Total $770.8 $560.6 Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Accounts payable, trade $88.1 $68.1 Accrued salaries and wages 42.3 65.8 Accrued expenses 55.3 28.7 Other 4.1 1.9 Accounts payable and accrued expenses $189.8 $164.5 Accumulated Other Comprehensive Income, net of taxes Accumulated other comprehensive income, net of taxes consisted of the following: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Currency translation gain $9.5 $9.5 Net unrealized gain on available-for-sale securities (1) 6.5 — Accumulated other comprehensive income, net of taxes $16.0 $9.5 (1) Amounts as of June 28, 2020 and June 30, 2019 include a $2.4 million loss related to tax on unrealized gain (loss) on available-for-sale securities. Other Operating Expense The following table summarizes the components of other operating expense: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 June 24, 2018 Factory optimization restructuring $8.5 $4.1 $— Severance and other restructuring 0.6 2.8 3.8 Total restructuring costs 9.1 6.9 3.8 Project, transformation and transaction costs 12.2 16.9 8.5 Factory optimization start-up costs 9.5 1.5 — Non-restructuring related executive severance 2.1 1.3 4.5 Other operating expense $32.9 $26.6 $16.8 See Note 19, "Restructuring" for more details on the Company's restructuring costs. Non-Operating (Income) Expense, net The following table summarizes the components of non-operating (income) expense, net: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 June 24, 2018 (Gain) loss on sale of investments, net ($1.5) $0.1 $0.1 (Gain) loss on equity investment (14.2) 16.2 (7.1) Gain on partial debt extinguishment (11.0) — — Gain on arbitration proceedings (7.9) — — Interest income (16.3) (13.9) (9.1) Interest expense 34.9 26.0 7.3 Foreign currency (gain) loss, net (2.0) 1.3 (1.8) Other, net (0.5) (0.3) 0.2 Non-operating (income) expense, net ($18.5) $29.4 ($10.4) Reclassifications Out of Accumulated Other Comprehensive Income (Loss) The Company reclassified a net gain of 2.0 million on available for sale securities out of accumulated other comprehensive income (loss) for the fiscal year ended June 28, 2020, of which a $1.5 million net gain from continuing operations was reclassified to non-operating (income) expense, net and a $0.5 million net gain was reclassified to net income (loss) from discontinued operations on the consolidated statements of operations. For the fiscal years ended June 30, 2019 and June 24, 2018, a net loss of $0.1 million and $0.1 million on available for sale securities out of accumulated other comprehensive income (loss) was reclassified to non-operating (income) expense, net on the consolidated statements of operations. There was no tax impact on any reclassifications. Additionally, the Company reclassified $5.2 million of currency translation loss out of accumulated other comprehensive income (loss) for the fiscal year ended June 30, 2019 as a result of the sale of the Lighting Products business unit. Amounts were reclassified to net loss from discontinued operations on the consolidated statement of operations. Statements of Cash Flows - non-cash activities Twelve months ended Non-cash operating activities June 28, 2020 June 30, 2019 June 24, 2018 Lease asset and liability additions (1) $28.3 $— $— Lease asset and liability modifications, net 4.8 — — (1) $11.0 million relates to the increase of right-of-use assets and matching lease liabilities as a result of adopting ASC 842. See Note 5, "Leases", for further information. Accrued property and equipment as of June 28, 2020, June 30, 2019 and June 24, 2018 was $79.4 million, $20.1 million and $13.8 million, respectively. |
Investments
Investments | 12 Months Ended |
Jun. 28, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments consist of municipal bonds, corporate bonds, U.S. agency securities, U.S. treasury securities, commercial paper, certificates of deposit, and variable rate demand notes. All short-term investments are classified as available-for-sale. Other long-term investments consist of the Company's ownership interest in Lextar. Short-term investments as of June 28, 2020 consist of the following: June 28, 2020 (in millions of U.S. Dollars) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses (1) Estimated Fair Value Municipal bonds $130.0 $2.0 $— $132.0 Corporate bonds 473.8 6.3 — 480.1 U.S. agency securities 29.1 — — 29.1 U.S. treasury securities 52.3 0.6 — 52.9 U.S. certificates of deposit 83.3 — — 83.3 Commercial paper 11.0 — — 11.0 Variable rate demand note 2.5 — — 2.5 Total short-term investments $782.0 $8.9 $— $790.9 (1) The Company had an unrealized loss of less than $0.1 million as of June 28, 2020. The following table presents the gross unrealized losses and estimated fair value of the Company’s short-term investments, aggregated by investment type and the length of time that individual securities have been in a continuous unrealized loss position: June 28, 2020 Less than 12 Months Greater than 12 Months Total (in millions of U.S. Dollars) Fair Value Unrealized Loss (1) Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $14.3 $— $— $— $14.3 $— Corporate bonds 29.1 — — — 29.1 — U.S. agency securities 8.6 — — — 8.6 — U.S. treasury securities 13.8 — — — 13.8 — Total $65.8 $— $— $— $65.8 $— Number of securities with an unrealized loss 46 — 46 (1) S ecurities with an unrealized loss of less than 12 months as of June 28, 2020 have an unrealized loss value of less than $0.1 million, individually and in the aggregate. Short-term investments as of June 30, 2019 consist of the following: June 30, 2019 (in millions of U.S. Dollars) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Municipal bonds $78.2 0.4 ($0.1) $78.5 Corporate bonds 256.0 1.0 — 257.0 U.S. agency securities 25.6 — — 25.6 U.S. treasury securities 92.4 0.1 92.5 Certificates of deposit 62.1 1.1 — 63.2 Commercial paper 7.8 — — 7.8 Variable rate demand note 16.9 — — 16.9 Total short-term investments $539.0 2.6 ($0.1) $541.5 The following table presents the gross unrealized losses and estimated fair value of the Company’s short-term investments, aggregated by investment type and the length of time that individual securities have been in a continuous unrealized loss position: June 30, 2019 Less than 12 Months Greater than 12 Months Total (in millions of U.S. Dollars) Fair Value Unrealized Loss (1) Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $4.3 $— $29.8 ($0.1) $34.1 ($0.1) Corporate bonds 41.8 — 14.7 — 56.5 — U.S. agency securities 7.7 — — — 7.7 — U.S. treasury securities 2.0 — 3.9 — 5.9 — Total $55.8 $— $48.4 ($0.1) $104.2 ($0.1) Number of securities with an unrealized loss 46 47 93 (1) S ecurities with an unrealized loss of less than 12 months as of June 30, 2019 have an unrealized loss value of less than $0.1 million, individually and in the aggregate. The Company utilizes specific identification in computing realized gains and losses on the sale of investments. Realized gains on the sale of investments for the fiscal year ended June 28, 2020 of $1.5 million were included in non-operating (income) expense, net in the consolidated statements of operations and unrealized gains and losses are included as a separate component of equity, net of tax, unless the loss is determined to be other-than-temporary. The Company evaluates its investments for possible impairment or a decline in fair value below cost basis that is deemed to be other-than-temporary on a periodic basis. It considers such factors as the length of time and extent to which the fair value has been below the cost basis, the financial condition of the investee, and its ability and intent to hold the investment for a period of time that may be sufficient for an anticipated full recovery in market value. The Company had insignificant unrealized losses as of June 28, 2020 and considers these declines to be temporary in nature. The contractual maturities of short-term investments at June 28, 2020 were as follows: (in millions of U.S. Dollars) Within One Year After One, Within Five Years After Five, Within Ten Years After Ten Years Total Municipal bonds $29.4 $102.6 $— $— $132.0 Corporate bonds 191.0 289.1 — — 480.1 U.S. agency securities 17.3 11.8 — — 29.1 U.S. treasury securities 36.1 16.8 — — 52.9 Certificates of deposit 83.3 — — — 83.3 Commercial paper 11.0 — — — 11.0 Variable rate demand note — — — 2.5 2.5 Total short-term investments $368.1 $420.3 $— $2.5 $790.9 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jun. 28, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Under U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches, including quoted market prices and discounted cash flows. U.S. GAAP also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are obtained from independent sources and can be validated by a third party, whereas unobservable inputs reflect assumptions regarding what a third party would use in pricing an asset or liability. The fair value hierarchy is categorized into three levels based on the reliability of inputs as follows: • Level 1 - Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. • Level 2 - Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. • Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The financial assets for which the Company performs recurring fair value remeasurements are cash equivalents, short-term investments and long-term investments. As of June 28, 2020, financial assets utilizing Level 1 inputs included money market funds, U.S. treasury securities and U.S. agency securities, and financial assets utilizing Level 2 inputs included municipal bonds, corporate bonds, certificates of deposit, commercial paper, variable rate demand notes and common stock of non-U.S. corporations. Level 2 assets are valued based on quoted prices in active markets for instruments that are similar or using a third-party pricing service’s consensus price, which is a weighted average price based on multiple sources. These sources determine prices utilizing market income models which factor in, where applicable, transactions of similar assets in active markets, transactions of identical assets in infrequent markets, interest rates, bond or credit default swap spreads and volatility. The Company did not have any financial assets requiring the use of Level 3 inputs as of June 28, 2020. There were no transfers between Level 1 and Level 2 during the year ended June 28, 2020. Financial instruments carried at fair value were as follows: June 28, 2020 June 30, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 199.9 $ — $ — $ 199.9 $ 95.0 $ — $ — $ 95.0 Corporate bonds — — — — — 15.0 — 15.0 U.S. agency securities — 19.6 — 19.6 — 18.8 — 18.8 U.S. treasury securities 19.0 — — 19.0 2.5 — — 2.5 Certificates of deposit — 54.3 — 54.3 — 105.8 — 105.8 Commercial paper — 11.1 — 11.1 — 1.0 — 1.0 Total cash equivalents 218.9 85.0 — 303.9 97.5 140.6 — 238.1 Short-term investments: Municipal bonds — 132.0 — 132.0 — 78.5 — 78.5 Corporate bonds — 480.1 — 480.1 — 257.0 — 257.0 U.S. agency securities — 29.1 — 29.1 — 25.6 — 25.6 U.S. treasury securities 52.9 — — 52.9 92.5 — — 92.5 Certificates of deposit — 83.3 — 83.3 — 63.2 — 63.2 Commercial paper — 11.0 — 11.0 — 7.8 — 7.8 Variable rate demand note — 2.5 — 2.5 — 16.9 — 16.9 Total short-term investments 52.9 738.0 — 790.9 92.5 449.0 — 541.5 Other long-term investments: Common stock of non-U.S. corporations — 55.9 — 55.9 — 39.5 — 39.5 Total assets $271.8 $878.9 $— $1,150.7 $190.0 $629.1 $— $819.1 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill Due to the pending LED Divestiture, the Company’s continuing operations consist of the Wolfspeed business. Goodwill for Wolfspeed as of June 28, 2020 and June 30, 2019 was $349.7 million. Goodwill for the former LED Products segment as of June 28, 2020 and June 30, 2019 was $180.3 million, which is classified as long-term assets of discontinued operations on the consolidated balance sheets. Intangible Assets Intangible assets, net included the following: June 28, 2020 June 30, 2019 (in millions of U.S. Dollars) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets: Customer relationships $96.8 ($19.0) $77.8 $96.8 ($12.8) $84.0 Developed technology 68.0 (22.8) 45.2 69.0 (17.6) 51.4 Non-compete agreements 12.2 (7.1) 5.1 12.2 (4.1) 8.1 Acquisition related intangible assets 177.0 (48.9) 128.1 178.0 (34.5) 143.5 Patent and licensing rights 69.3 (40.5) 28.8 77.7 (47.1) 30.6 Total intangible assets 246.3 (89.4) 156.9 255.7 (81.6) 174.1 Total amortization of acquisition-related intangibles assets was $14.5 million, $15.6 million and $7.2 million and total amortization of patents and licensing rights was $5.9 million, $5.7 million and $4.8 million for the years ended June 28, 2020, June 30, 2019 and June 24, 2018, respectively. In the first quarter of fiscal 2020, $0.9 million of developed technology, net relating to a favorable lease was reclassified as a right-of-use asset in accordance with the Company's adoption of ASC 842, Leases. The Company invested $4.4 million, $3.3 million and $2.5 million for the years ended June 28, 2020, June 30, 2019 and June 24, 2018, respectively, for patent and licensing rights. For the fiscal years ended June 28, 2020, June 30, 2019 and June 24, 2018, the Company recognized $1.2 million, $0.6 million and $0.5 million, respectively, in impairment charges related to its patent portfolio. Total future amortization expense of intangible assets is estimated to be as follows: (in millions of U.S. Dollars) Fiscal Year Ending Acquisition Related Intangibles Patents Total June 27, 2021 $14.5 $4.8 $19.3 June 26, 2022 13.5 4.1 17.6 June 25, 2023 11.0 3.5 14.5 June 30, 2024 10.4 2.9 13.3 June 29, 2025 10.4 2.3 12.7 Thereafter 68.3 11.2 79.5 Total future amortization expense $128.1 $28.8 $156.9 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Jun. 28, 2020 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Revolving Line of Credit As of June 28, 2020, the Company had a $125.0 million secured revolving line of credit (the Credit Agreement) under which the Company can borrow, repay and reborrow loans from time to time prior to its scheduled maturity date of January 9, 2023. On March 27, 2020, the Company entered into an amendment to the Credit Agreement to reduce the aggregate amount of the revolving line of credit available from $250.0 million to $125.0 million and to replace the Credit Agreement's financial covenants with a single covenant requiring the Company to maintain a ratio of certain cash equivalents and marketable securities to outstanding loans and letter of credit obligations greater than 1.25:1. The Company classifies balances outstanding under the Credit Agreement as long-term debt in the consolidated balance sheets. As of June 28, 2020, the Company had no outstanding borrowings under the Credit Agreement, $125.0 million in available commitments under the Credit Agreement and $125.0 million available for borrowing. For the year ended June 28, 2020, the average interest rate was 0.00%. As of June 28, 2020, the unused line fee on available borrowings is 25 basis points. 2023 Convertible Notes On August 24, 2018, the Company sold $500.0 million aggregate principal amount of 0.875% convertible senior notes due September 1, 2023 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the Securities Act), and an additional $75 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (the 2023 Notes). The total net proceeds from the debt offerings was approximately $562.1 million. The conversion rate will initially be 16.6745 shares of common stock per one thousand dollars in principal amount of 2023 Notes (equivalent to an initial conversion price of approximately $59.97 per share of common stock). The conversion rate will be subject to adjustment for some events, but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, or following the Company's issuance of a notice of redemption, the Company will increase the conversion rate for a holder who elects to convert its 2023 Notes in connection with such a corporate event, or who elects to convert any 2023 Notes called for redemption during the related redemption period in certain circumstances. The Company may not redeem the 2023 Notes prior to September 1, 2021. The Company may redeem for cash all or any portion of the 2023 Notes, at its option, on a redemption date occurring on or after September 1, 2021 and on or before the 40th scheduled trading day immediately before the maturity date, if the last reported sales price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides a notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. The redemption price will be 100% of the principal amount of the 2023 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes certain fundamental changes related to the Company's common stock, holders may require the Company to repurchase for cash all or any portions of their 2023 Notes at a fundamental repurchase price equal to 100% of the principal amount of the 2023 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. Holders may convert their 2023 Notes at their option at any time prior to the close of business on the business day immediately preceding March 1, 2023 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending December 31, 2018 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five ten 2026 Convertible Notes On April 21, 2020, the Company sold $500.0 million aggregate principal amount of 1.75% convertible senior notes due May 1, 2026 to qualified institutional buyers pursuant to Rule 144A under the Securities Act and an additional $75.0 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (the 2026 Notes). The total net proceeds from the debt offerings was approximately $561.4 million. The conversion rate will initially be 21.1346 shares of common stock per one thousand dollars in principal amount of 2026 Notes (equivalent to an initial conversion price of approximately $47.32 per share of common stock). The conversion rate will be subject to adjustment for some events, but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, or following the Company's issuance of a notice of redemption, the Company will increase the conversion rate for a holder who elects to convert its 2026 Notes in connection with such a corporate event, or who elects to convert any 2026 Notes called for redemption during the related redemption period in certain circumstances. The Company may not redeem the 2026 Notes prior to May 1, 2023. The Company may redeem for cash all or any portion of the 2026 Notes, at its option, on a redemption date occurring on or after May 1, 2023 and on or before the 40th scheduled trading day immediately before the maturity date, if the last reported sales price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides a notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. The redemption price will be 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes certain fundamental changes related to the Company's common stock, holders may require the Company to repurchase for cash all or any portions of their 2026 Notes at a fundamental repurchase price equal to 100% of the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. Holders may convert their 2026 Notes at their option at any time prior to the close of business on the business day immediately preceding November 3, 2025 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending June 30, 2020 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five ten The Company used approximately $144.3 million of the net proceeds from the sale of the 2026 Notes to repurchase approximately $150.2 million aggregate principal amount of the 2023 Notes, including approximately $0.2 million of accrued interest on such notes, in privately negotiated transactions. Accounting for 2023 and 2026 Convertible Notes (collectively, "the Notes") In accounting for the issuance of the 2023 and 2026 convertible senior notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability of the equity component representing the conversion option was $110.6 million and $145.4 million for the 2023 and 2026 Notes, respectively. The amounts were determined by deducting the fair value of the liability component from the par value of each of the Notes. Due to the partial extinguishment of the 2023 Notes, the equity component of the 2023 Notes was reduced by $27.7 million. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (the debt discount), along with related issuance fees, are amortized to interest expense over the term of the Notes at an effective annual interest rate of 5.87% and 7.45% for the 2023 and 2026 Notes, respectively. The net carrying amount of the liability component of the Notes is as follows: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Principal $999.8 $575.0 Unamortized discount and issuance costs (216.0) (105.9) Net carrying amount $783.8 $469.1 The net carrying amount of the equity component of the Notes is as follows: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Discount related to value of conversion options $262.3 $113.3 Partial extinguishment of 2023 Notes (27.7) — Debt issuance costs (6.3) (2.7) Net carrying amount $228.3 $110.6 The interest expense recognized related to the Notes is as follows: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Interest expense $6.8 $4.3 Amortization of discount and issuance costs 26.2 18.3 Total interest expense $33.0 $22.6 No interest expense relating to the Notes was recognized for the fiscal year ended June 24, 2018. The estimated fair value of the Notes is $1,280.3 million, as determined by a Level 2 valuation as of June 28, 2020. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 28, 2020 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity At June 28, 2020, the Company had reserved a total of approximately 39.0 million shares of its common stock for future issuance as follows (in thousands): Number of Shares For exercise of outstanding common stock options 983 For vesting of outstanding stock units 2,932 For future equity awards under 2013 Long-Term Incentive Compensation Plan 5,478 For future issuance under the Non-Employee Director Stock Compensation and Deferral Program 48 For future issuance to employees under the 2005 Employee Stock Purchase Plan 849 For future issuance upon conversion of the 2023 Notes 12,560 For future issuance upon conversion of the 2026 Notes 16,102 Total common shares reserved 38,952 |
Loss (earnings) Per Share
Loss (earnings) Per Share | 12 Months Ended |
Jun. 28, 2020 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss) Earnings Per Share The details of the computation of basic and diluted (loss) earnings per share are as follows: Fiscal Years Ended (in millions of U.S. Dollars, except share data) June 28, 2020 June 30, 2019 June 24, 2018 Net loss from continuing operations $ (197.6) $ (118.5) $ (74.9) Net income (loss) from discontinued operations 7.0 (256.6) (205.0) Net income from discontinued operations attributable to noncontrolling interest 1.1 — 0.1 Net income (loss) from discontinued operations attributable to controlling interest 5.9 (256.6) (205.1) Weighted average number of common shares - basic and diluted (in thousands) 107,935 103,576 99,530 (Loss) earnings per share - basic and diluted: Continuing operations $ (1.83) $ (1.14) $ (0.75) Discontinued operations attributable to controlling interest $ 0.05 $ (2.48) $ (2.06) Diluted net loss per share is the same as basic net loss per share for the periods presented due to potentially dilutive items being anti-dilutive given the Company's net loss from continuing operations. For the fiscal years ended June 28, 2020, June 30, 2019 and June 24, 2018, 5.4 million, 9.0 million and 11.3 million of dilutive shares were excluded from the calculation of diluted loss per share because their effect would be anti-dilutive. Future earnings per share of the Company are also subject to dilution from conversion of its convertible notes under certain conditions as described in Note 11, “Long-term Debt.” |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jun. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Stock-Based Compensation | Stock-Based Compensation Overview of Employee Stock-Based Compensation Plans The Company currently has one equity-based compensation plan, the 2013 Long-Term Incentive Compensation Plan (2013 LTIP), from which stock-based compensation awards can be granted to employees and directors. At June 28, 2020, there were 15.9 million shares authorized for issuance under the plan and 5.5 million shares remaining for future grants. The 2013 LTIP provides for awards in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and other awards. The Company has other equity-based compensation plans that have been terminated so that no future grants can be made under those plans, but under which stock options, restricted stock and restricted stock units are currently outstanding. The Company’s stock-based awards can be either service-based or performance-based. Performance-based conditions are generally tied to future financial and/or operating performance of the Company and/or external based market metrics. The compensation expense with respect to performance-based grants is recognized if the Company believes it is probable that the performance condition will be achieved. The Company reassesses the probability of the achievement of the performance condition at each reporting period, and adjusts the compensation expense for subsequent changes in the estimate or actual outcome. As with non-performance based awards, compensation expense is recognized over the vesting period. The vesting period runs from the date of grant to the expected date that the performance objective is likely to be achieved. For performance awards with market conditions, the Company estimates the grant date fair using the Monte Carlo valuation model and expenses the awards over the vesting period regardless of whether the market condition is ultimately satisfied. The Company also has an Employee Stock Purchase Plan (ESPP) that provides employees with the opportunity to purchase common stock at a discount. At June 28, 2020, there were 7.0 million shares authorized for issuance under the ESPP, as amended, with 0.8 million shares remaining for future issuance. The ESPP limits employee contributions to 15% of each employee’s compensation (as defined in the plan) and allows employees to purchase shares at a 15% discount to the fair market value of common stock on the purchase date two times per year. The ESPP provides for a twelve-month participation period, divided into two equal six-month purchase periods, and also provides for a look-back feature. At the end of each six-month period in April and October, participants purchase the Company’s common stock through the ESPP at a 15% discount to the fair market value of the common stock on the first day of the twelve-month participation period or the purchase date, whichever is lower. The plan also provides for an automatic reset feature to start participants on a new twelve-month participation period if the fair market value of common stock declines during the first six-month purchase period. Stock Option Awards The following table summarizes option activity as of June 28, 2020 and changes during the fiscal year then ended (shares in thousands) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Total Intrinsic Value (in millions of U.S. Dollars) Outstanding at June 30, 2019 2,418 $39.81 Granted — — Exercised (1,371) 40.49 Forfeited or expired (64) 55.37 Outstanding at June 28, 2020 983 37.88 1.77 $19.7 Vested and expected to vest at June 28, 2020 983 37.88 1.77 $19.7 Exercisable at June 28, 2020 981 37.91 1.76 $19.6 The total intrinsic value in the table above represents the total pretax intrinsic value, which is the total difference between the closing price of the Company’s common stock on June 26, 2020 (the last trading day of fiscal 2020) of $57.74 and the exercise price for in-the-money options that would have been received by the holders if all instruments had been exercised on June 28, 2020. As of June 28, 2020, there was less than $0.1 million of unrecognized compensation cost related to non-vested stock options, which is expected to be recognized over a weighted average period of less than one month. The following table summarizes information about stock options outstanding and exercisable at June 28, 2020 (shares in thousands): Options Outstanding Options Exercisable Range of Exercise Price Number Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Weighted Average Exercise Price $0.01 to $25.00 262 3.2 $24.34 261 $24.34 $25.01 to $35.00 203 2.3 26.59 202 26.59 $35.01 to $45.00 6 1.4 38.50 6 38.50 $45.01 to $55.00 468 0.9 48.12 468 48.12 $55.01 to $73.00 44 0.5 61.93 44 61.93 Total 983 981 Other information pertaining to the Company’s stock option awards is as follows: Fiscal Years Ended June 28, 2020 June 30, 2019 June 24, 2018 Weighted average grant date fair value per share of options $— $— $8.02 Total intrinsic value of options exercised (in millions of U.S. Dollars) $22.8 $63.3 $24.3 Restricted Stock Awards and Units A summary of nonvested restricted stock awards (RSAs) and restricted stock unit awards (RSUs) outstanding as of June 28, 2020 and changes during the year then ended is as follows (shares in thousands): Number of RSAs/RSUs Weighted Average Grant-Date Fair Value Nonvested at June 30, 2019 3,081 $34.99 Granted 1,206 53.14 Vested (1,138) 30.77 Forfeited (217) 37.72 Nonvested at June 28, 2020 2,932 $43.89 As of June 28, 2020, there was $79.5 million of unrecognized compensation cost related to nonvested awards, which is expected to be recognized over a weighted average period of 1.97 years. Stock-Based Compensation Valuation and Expense The Company accounts for its employee stock-based compensation plans using the fair value method. The fair value method requires the Company to estimate the grant-date fair value of its stock-based awards and amortize this fair value to compensation expense over the requisite service period or vesting term. The Company uses the Black-Scholes option-pricing model to estimate the fair value of the Company’s stock option and ESPP awards. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, the risk-free interest rate and expected dividends. Due to the inherent limitations of option-valuation models, future events that are unpredictable and the estimation process utilized in determining the valuation of the stock-based awards, the ultimate value realized by award holders may vary significantly from the amounts expensed in the Company’s financial statements. For RSAs and RSUs, the grant-date fair value is based upon the market price of the Company’s common stock on the date of the grant. This fair value is then amortized to compensation expense over the requisite service period or vesting term. Stock-based compensation expense is recognized net of estimated forfeitures such that expense is recognized only for those stock-based awards that are expected to vest. A forfeiture rate is estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. Total stock-based compensation expense was classified in the consolidated statements of operations as follows: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 June 24, 2018 Cost of revenue, net $10.0 $7.8 $5.8 Research and development 8.0 6.2 5.9 Sales, general and administrative 30.8 28.9 21.3 Total stock-based compensation expense $48.8 $42.9 $33.0 The Black-Scholes and Monte Carlo option pricing models require the input of highly subjective assumptions. The assumptions listed below represent management's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if other assumptions had been used, recorded share-based compensation expense could have been materially different from that depicted above. The range of assumptions used to value stock issued under the ESPP were as follows: Fiscal Years Ended June 28, 2020 June 30, 2019 June 24, 2018 Risk-free interest rate 0.12 - 2.67% 2.39 - 2.67% 0.89 - 2.26% Expected life, in years 0.5 - 1.0 0.5 - 1.0 0.5 - 1.0 Volatility 34.5 - 82.6% 34.5 - 39.6% 34.5 - 40.2% Dividend yield — — — The weighted average assumptions used to value stock option grants in fiscal 2018 were as follows: Risk-free interest rate 1.75 % Expected life, in years 4.0 Volatility 38.6 % Dividend yield — No stock option grants occurred in fiscal 2020 or fiscal 2019. The range of assumptions used for issued performance units were as follows: Fiscal Years Ended June 28, 2020 June 30, 2019 June 24, 2018 Risk-free interest rate 0.28 - 1.66% 2.68% 1.44 - 1.59% Expected life, in years 3.0 3.0 2.8 - 3.0 Average volatility of peer companies 48.9 - 55.2% 46.8% 46.4% Average correlation coefficient of peer companies 0.36 - 0.45 0.34 0.34 Dividend yield — — — The following describes each of these assumptions and the Company’s methodology for determining each assumption: Risk-Free Interest Rate The Company estimates the risk-free interest rate using the U.S. Treasury bill rate with a remaining term equal to the expected life of the award. Expected Life The expected life represents the period the awards are expected to be outstanding. In determining the appropriate expected life of its stock options, the Company segregates its grantees into categories based upon employee levels that are expected to be indicative of similar option-related behavior. The expected useful lives for each of these categories are then estimated giving consideration to (1) the weighted average vesting periods, (2) the contractual lives of the stock options, (3) the relationship between the exercise price and the fair market value of the Company’s common stock, (4) expected employee turnover, (5) the expected future volatility of the Company’s common stock, and (6) past and expected exercise behavior, among other factors. Expected Volatility The Company estimates expected volatility for the options and ESPP awards giving consideration to the expected life of the respective award, the Company’s current expected growth rate, implied volatility in traded options for its common stock, and the historical volatility of its common stock. For purposes of estimating volatility for use in the Monte Carlo model for the market-based awards, the Company utilizes historical volatilities of the Company and the members of the defined peer group. Expected Dividend Yield The Company estimates the expected dividend yield by giving consideration to its current dividend policies as well as those anticipated in the future considering the Company’s current plans and projections. The Company has not historically issued dividends. Correlation Coefficient The correlation coefficients are calculated based upon the price data used to calculate the historical volatilities and are used to model the way in which each entity tends to move in relation to its peers. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following were the components of loss before income taxes: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 June 24, 2018 Domestic ($210.3) ($92.2) ($107.6) Foreign 4.7 (30.7) (2.5) Loss before income taxes ($205.6) ($122.9) ($110.1) The following were the components of income tax (benefit) expense: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 June 24, 2018 Current: Federal ($7.3) $1.4 $13.7 Foreign 0.2 0.5 3.6 State 0.1 0.3 0.3 Total current (7.0) 2.2 17.6 Deferred: Federal 1.8 (1.9) (46.1) Foreign (2.8) (4.5) (3.6) State — (0.2) (3.1) Total deferred (1.0) (6.6) (52.8) Income tax benefit ($8.0) ($4.4) ($35.2) Actual income tax expense (benefit) differed from the amount computed by applying each period's U.S. federal statutory tax rate to pre-tax earnings as a result of the following: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 % of Loss June 30, 2019 % of Loss June 24, 2018 % of Loss Federal income tax provision at statutory rate ($43.2) 21 % ($25.8) 21 % ($31.1) 28 % (Decrease) increase in income tax expense resulting from: State tax provision, net of federal benefit (1.9) 1 % (2.0) 2 % (6.2) 6 % Tax exempt interest (0.5) — % (0.4) — % (1.2) 1 % 48C investment tax credit — — % — — % (1.5) 1 % (Decrease) increase in tax reserve (0.3) — % 0.5 — % 0.1 — % Research and development credits (3.3) 2 % (2.8) 2 % (1.1) 1 % Foreign tax credit (0.3) — % (0.4) — % (39.2) 36 % Increase (decrease) in valuation allowance 50.3 (25) % 4.3 (4) % (29.4) 27 % Partial extinguishment of convertible notes (6.0) 3 % — — % — — % Stock-based compensation 2.1 (1) % 0.7 (1) % 8.3 (8) % Statutory rate differences 1.2 (1) % 6.0 (5) % (2.0) 2 % Foreign earnings taxed in U.S. 0.3 — % 0.4 — % 51.9 (47) % Foreign currency fluctuations — — % — — % (0.3) — % Other foreign adjustments 0.3 — % (0.1) — % (0.1) — % Net operating loss carryback (7.2) 4 % — — % (0.1) — % Provision to return adjustments (1.3) 1 % 11.8 (10) % — — % Tax on distributable foreign earnings — — % — — % 4.0 (4) % Impact of rate changes 0.8 — % 2.7 (2) % 11.2 (10) % Expiration of state credits 0.9 — % 1.2 (1) % 1.3 (1) % Other 0.1 — % (0.5) — % 0.2 — % Income tax benefit ($8.0) 4 % ($4.4) 4 % ($35.2) 32 % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Deferred tax assets: Compensation $4.4 $9.6 Inventories 7.9 3.8 Sales return reserve and allowance for bad debts 2.6 3.2 Federal and state net operating loss carryforwards 180.1 137.1 Federal credits 30.3 20.0 State credits 1.9 2.9 48C investment tax credits 37.5 25.9 Stock-based compensation 8.3 11.3 Deferred revenue 23.1 22.6 Lease liabilities 6.5 — Other 5.0 4.5 Total gross deferred assets 307.6 240.9 Less valuation allowance (208.5) (185.2) Deferred tax assets, net 99.1 55.7 Deferred tax liabilities: Property and equipment (27.8) (13.9) Intangible assets (19.2) (16.9) Investments (1.6) (0.9) Prepaid taxes and other (0.7) — Foreign earnings recapture (2.0) (2.0) Taxes on unremitted foreign earnings — (2.4) Lease assets (6.3) — Convertible notes (42.1) (20.7) Total gross deferred liability (99.7) (56.8) Deferred tax liability, net ($0.6) ($1.1) The components giving rise to the net deferred tax assets (liabilities) have been included in the consolidated balance sheets as follows: Balance at June 28, 2020 (in millions of U.S. Dollars) Assets Liabilities U.S. federal income taxes $— ($1.8) Foreign income taxes 1.2 — Total $1.2 ($1.8) Balance at June 30, 2019 (in millions of U.S. Dollars) Assets Liabilities U.S. federal income taxes $— $— Foreign income taxes 0.9 (2.0) Total $0.9 ($2.0) The Company assesses all available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets by jurisdiction. The Company has concluded that it is necessary to recognize a full valuation allowance against its U.S. and Luxembourg deferred tax assets as of June 28, 2020. As of June 30, 2019, the U.S. valuation allowance was $177.6 million. For the fiscal year ended June 28, 2020, the Company increased the U.S. valuation allowance by $27.6 million due to the Company's current year domestic loss, which was partially offset by the issuance of the 2026 Notes. As of June 30, 2019, the Luxembourg valuation allowance was $7.6 million. For the fiscal year ended June 28, 2020, the Company decreased this valuation allowance by $4.3 million due to year-to-date income in Luxembourg. As of June 28, 2020, the Company had approximately $16.4 million of foreign net operating loss carryovers, of which $13.4 million are offset by a valuation allowance. Of the Company's foreign net operating loss carryovers, $6.3 million have no carry forward limitation and the remaining $10.1 million will begin to expire in fiscal 2035. As of June 28, 2020, the Company had approximately $795.9 million of federal net operating loss carryovers and $235.0 million of state net operating loss carryovers which are fully offset by a valuation allowance. Additionally, the Company had $67.8 million of federal and $2.5 million of state income tax credit carryforwards which are fully offset by a valuation allowance. The federal and state net operating loss carryovers will begin to expire in fiscal 2038 and fiscal 2021, respectively. The federal and state income tax credit carryforwards will begin to expire in fiscal 2031 and fiscal 2021, respectively. U.S. GAAP requires a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is cumulatively more than 50% likely to be realized upon ultimate settlement. As of June 30, 2019 the Company’s liability for unrecognized tax benefits was $8.2 million. During the fiscal year ended June 28, 2020, the Company recognized a $0.8 million decrease to the liability for unrecognized tax benefits due to statute expiration and settlement of tax positions. As a result, the total liability for unrecognized tax benefits as of June 28, 2020 was $7.4 million. If any portion of this $7.4 million is recognized, the Company will then include that portion in the computation of its effective tax rate. Although the ultimate timing of the resolution and/or closure of audits is highly uncertain, the Company believes it is reasonably possible that $0.3 million of gross unrecognized tax benefits will change in the next 12 months as a result of statute requirements or settlement with tax authorities. The following is a tabular reconciliation of the Company’s change in uncertain tax positions: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 June 24, 2018 Balance at beginning of period $8.2 $8.6 $13.3 Decrease related to current year change in law — — (4.7) Increases related to prior year tax positions — 0.5 0.6 Decreases related to prior year tax positions — — (0.1) Settlements with tax authorities (0.1) — (0.1) Expiration of statute of limitations for assessment of taxes (0.7) (0.9) (0.4) Balance at end of period $7.4 $8.2 $8.6 The Company's policy is to include interest and penalties related to unrecognized tax benefits within the income tax expense (benefit) line item in the consolidated statements of operations. Interest and penalties relating to unrecognized tax benefits recognized in the consolidated statements of operations totaled less than $0.1 million for the fiscal years ending June 28, 2020, June 30, 2019, and June 24, 2018. The Company accrued less than $0.1 million for interest and penalties relating to unrecognized tax benefits in the consolidated balance sheets as of June 28, 2020 and June 30, 2019. The Company files U.S. federal, U.S. state and foreign tax returns. For U.S. federal purposes, the Company is generally no longer subject to tax examinations for fiscal years prior to 2017. For U.S. state tax returns, the Company is generally no longer subject to tax examinations for fiscal years prior to 2016. For foreign purposes, the Company is generally no longer subject to examination for tax periods prior to 2010. Certain carryforward tax attributes generated in prior years remain subject to examination, adjustment and recapture. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 28, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company is currently a party to various legal proceedings. While management presently believes that the ultimate outcome of such proceedings, individually and in the aggregate, will not materially harm the Company’s financial position, cash flows, or overall trends in results of operations, legal proceedings are subject to inherent uncertainties, and unfavorable rulings could occur. An unfavorable ruling could include money damages or, in matters for which injunctive relief or other conduct remedies may be sought, an injunction prohibiting the Company from selling one or more products at all or in particular ways. Were unfavorable final outcomes to occur, there exists the possibility of a material adverse impact on the Company’s business, results of operation, financial position and overall trends. The outcomes in these matters are not reasonably estimable. As a result of a Focused Compliance Inspection and a Compliance Evaluation Inspection at the Company's Durham, North Carolina facilities, the United States Environmental Protection Agency (“EPA”) raised a potential non-compliance issue with certain requirements of the North Carolina Waste Management Law. The Company negotiated a settlement with the EPA to resolve the issue and agreed to pay a penalty of approximately $0.3 million. Grant Disbursement Agreement (GDA) with the State of New York The Company currently has a GDA with the State of New York Urban Development Corporation (doing business as Empire State Development). The GDA provides a potential total grant amount of $500.0 million to partially and fully reimburse the Company for certain property, plant and equipment costs related to the Company's construction of a new silicon carbide fabrication facility in Marcy, New York. The GDA was signed in the fourth quarter of fiscal 2020 and requires the Company to satisfy a number of objectives for the Company to receive reimbursements through the span of the 13-year agreement. These objectives include maintaining a certain level of local employment, investing a certain amount in locally administered research and development activities and the payment of an annual commitment fee for the first six years. Additionally, the Company has agreed, under a separate agreement (the SUNY Agreement), to sponsor the creation of two endowed faculty chairs and fund a scholarship program at SUNY Polytechnic Institute. The annual cost of satisfying the objectives of the GDA and the SUNY Agreement, excluding the direct and indirect costs associated with employment, varies from $1.0 million to $5.2 million per year through fiscal 2031. |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Jun. 28, 2020 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Concentrations of Risk Financial instruments, which may subject the Company to a concentration of risk, consist principally of short-term investments, cash equivalents and accounts receivable. Short-term investments consist primarily of municipal bonds, corporate bonds, U.S. agency securities, U.S. treasury securities, commercial paper, certificates of deposit, and variable rate demand notes at interest rates that vary by security. The Company’s cash equivalents consist primarily of money market funds. Certain bank deposits may at times be in excess of the FDIC insurance limits. The Company sells its products on account to manufacturers, distributors and others worldwide and generally requires no collateral. For the fiscal year ended June 28, 2020, STMicroelectronics, Inc. (STMicroelectronics) and Sumitomo Electric Device Innovations, Inc. (Sumitomo) represented 19% and 14% of revenue, respectively. For the fiscal year ended June 30, 2019, Arrow Electronics, Inc., Sumitomo and STMicroelectronics represented 14%, 14% and 11% of revenue, respectively. For the fiscal year ended June 24, 2018, Sumitomo and Allied Group Hong Kong Limited represented 11% and 11% of revenue, respectively. No other customers individually accounted for more than 10% of revenue for the fiscal years ended June 28, 2020, June 28, 2019 and June 24, 2018. |
Retirement Savings Plan
Retirement Savings Plan | 12 Months Ended |
Jun. 28, 2020 | |
Retirement Benefits [Abstract] | |
Retirement Savings Plan | Retirement Savings PlanThe Company sponsors one employee benefit plan (the 401(k) Plan) pursuant to Section 401(k) of the IRC. All U.S. employees are eligible to participate under the 401(k) Plan on the first day of a new fiscal month after the date of hire. Under the 401(k) Plan, there is no fixed dollar amount of retirement benefits; rather, the Company matches a defined percentage of employee deferrals, and employees vest in these matching funds over time. Employees choose their investment elections from a list of available investment options. During the fiscal years ended June 28, 2020, June 30, 2019 and June 24, 2018, the Company contributed approximately $7.7 million, $7.3 million and $5.2 million to the 401(k) Plan, respectively. The Pension Benefit Guaranty Corporation does not insure the 401(k) Plan. |
Restructuring
Restructuring | 12 Months Ended |
Jun. 28, 2020 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The Company has approved various operational plans that include restructuring costs. All restructuring costs are recorded in other operating expense on the consolidated statement of operations. Corporate Restructuring In April 2018, the Company approved a corporate restructuring plan. The purpose was to restructure and realign the Company's cost base with the long-range business strategy that was announced in February 2018. The restructuring activity was completed in the second quarter of fiscal 2019. For the years ended June 30, 2019 and June 24, 2018, $2.6 million and $3.8 million was expensed relating to this corporate restructuring plan, respectively. Factory Optimization Restructuring In May 2019, the Company started a significant, multi-year factory optimization plan anchored by a state-of-the-art, automated 200mm capable silicon carbide and GaN fabrication facility and a large materials factory at its U.S. campus headquarters in Durham, North Carolina. As part of the plan, the Company will incur restructuring charges associated with the movement of equipment as well as disposals on certain long-lived assets. The Company expects approximately $70.0 million in restructuring charges related to the factory optimization plan to be incurred through 2024. For the years ended June 28, 2020 and June 30, 2019, the Company expensed $9.0 million and $4.1 million of restructuring charges related to the factory optimization plan, of which $0.3 million was accrued for in accounts payable and accrued expenses as of June 28, 2020. No amounts related to factory optimization restructuring were accrued as of June 30, 2019. In September 2019, the Company announced its intent to build the new fabrication facility in Marcy, New York to complement the factory expansion underway at its U.S. campus headquarters in Durham, North Carolina. The Company has commenced the building of the New York facility and is currently evaluating the impact of this decision on future restructuring charges. Sales Restructuring In June 2019, the Company approved and implemented a sales restructuring plan to restructure and realign the Company's geographical sales team with the skills and experience needed to execute on the Company's business objectives. The Company recorded $0.2 million in restructuring expense relating to this plan in the fourth quarter of fiscal 2019. No additional restructuring expense relating to this plan is expected. Sales Representatives Restructuring In July 2019, the Company realigned its sales resources as part of the Company's transition to a more focused semiconductor company. As a result, the Company recorded $0.6 million in contract termination costs during year ended June 28, 2020, of which $0.1 million is accrued in other current liabilities as of June 28, 2020. |
Subsequent Events
Subsequent Events | 12 Months Ended |
Jun. 28, 2020 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events - Unaudited As of September 27, 2020, the Company determined it would more likely than not sell all or a portion of the assets comprising the LED Products segment below carrying value. As a result, the Company recorded an impairment to goodwill of $105.7 million. As of December 27, 2020, the Company recorded an additional impairment to goodwill of $6.9 million and an impairment to assets held for sale associated with the pending LED Business Divestiture of $19.5 million. |
Quarterly Results of Operations
Quarterly Results of Operations - Unaudited | 12 Months Ended |
Jun. 28, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations - Unaudited | Quarterly Results of Operations - Unaudited The following is a summary of the Company’s consolidated quarterly results of operations for each of the fiscal years ended June 28, 2020 and June 30, 2019: (in millions of U.S. Dollars, except share data) September 29, 2019 December 29, 2019 March 29, 2020 June 28, Fiscal Year 2020 Revenue, net $127.7 $120.7 $113.9 $108.4 $470.7 Cost of revenue, net 75.2 85.1 72.6 79.3 312.2 Gross profit 52.5 35.6 41.3 29.1 158.5 Net loss from continuing operations (39.3) (57.9) (56.2) (44.2) (197.6) Net income (loss) from discontinued operations 1.5 3.9 (3.7) 5.3 7.0 Net loss (37.8) (54.0) (59.9) (38.9) (190.6) Net income from discontinued operations attributable to noncontrolling interest — 0.3 0.2 0.6 1.1 Net loss attributable to controlling interest (37.8) (54.3) (60.1) (39.5) (191.7) Basic and diluted loss per share: Continuing operations ($0.37) ($0.54) ($0.52) ($0.41) ($1.83) Net loss attributable to controlling interest ($0.35) ($0.50) ($0.56) ($0.36) ($1.78) (in millions of U.S. Dollars, except share data) September 23, 2018 December 30, 2018 March 31, 2019 June 30, Fiscal Year 2019 Revenue, net $127.4 $135.3 $141.3 $134.2 $538.2 Cost of revenue, net 70.1 74.5 77.3 72.6 294.5 Gross profit 57.3 60.8 64.0 61.6 243.7 Net loss from continuing operations (22.4) (19.5) (37.1) (39.5) (118.5) Net income (loss) from discontinued operations 11.3 19.1 (190.6) (96.4) (256.6) Net loss (11.1) (0.4) (227.7) (135.9) (375.1) Net income (loss) from discontinued operations attributable to noncontrolling interest — — 0.1 (0.1) — Net loss attributable to controlling interest (11.1) (0.4) (227.8) (135.8) (375.1) Basic and diluted loss per share: Continuing operations ($0.22) ($0.19) ($0.36) ($0.37) ($1.14) Net loss attributable to controlling interest ($0.11) $— ($2.20) ($1.28) ($3.62) |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 28, 2020 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company, its wholly owned subsidiaries and the joint venture. All material intercompany accounts and transactions have been eliminated. |
Fiscal Year | Fiscal Year The Company’s fiscal year is a 52 or 53-week period ending on the last Sunday in the month of June. The Company’s 2020 and 2018 fiscal years were 52-week fiscal years. The Company's 2019 fiscal year was a 53-week fiscal year. The Company’s 2021 fiscal year will be a 52-week fiscal year. |
Reclassifications | Reclassifications Certain prior period amounts in the accompanying consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net loss or shareholders’ equity. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (U.S. GAAP) requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities. The Company evaluates its estimates on an ongoing basis, including those related to revenue recognition, product warranty obligations, valuation of inventories, tax related contingencies, valuation of stock-based compensation, valuation of long-lived and intangible assets, other contingencies and litigation, among others. The Company generally bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates. Certain accounting matters that generally require consideration of forecasted financial information were assessed regarding impacts from the COVID-19 outbreak as of June 28, 2020 and through the filing date of the Company's Annual Report on Form 10-K for the fiscal year ended June 28, 2020 using reasonably available information as of those dates. The accounting matters assessed included, but were not limited to, allowance for doubtful accounts, the carrying value of goodwill and other long-lived tangible and intangible assets, the potential impact to earnings of unrealized losses on investments and valuation allowances for tax assets. While the assessments resulted in no material impacts to the consolidated financial statements as of and for the year ended June 28, 2020, the Company believes the full impact of the outbreak remains uncertain and will continue to assess if ongoing developments related to the outbreak may cause future material impacts to its consolidated financial statements. |
Segment Information | Segment Information U.S. GAAP requires segmentation based on an entity’s internal organization and reporting of revenue and operating income based upon internal accounting methods commonly referred to as the “management approach.” Operating segments are defined as components of an enterprise about which separate financial information is available that is evaluated regularly by the chief operating decision maker (CODM), or decision making group, in deciding how to allocate resources and in assessing performance. The Company’s CODM is its Chief Executive Officer. Historically, the Company determined that it has two operating and reportable segments: LED Products and Wolfspeed. Subsequent to LED Products meeting the criteria for classification as discontinued operations, the Company has determined that it has one operating and reportable segment, Wolfspeed. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of unrestricted cash accounts and highly liquid investments with an original maturity of three months or less when purchased. Cash and cash equivalents are stated at cost, which approximates fair value. The Company holds cash and cash equivalents at several major financial institutions, which often exceed insurance limits set by the Federal Deposit Insurance Corporation (FDIC). The Company has not historically experienced any losses due to such concentration of credit risk. |
Investments | Investments Investments in certain securities may be classified into three categories: • Held-to-Maturity – Debt securities that the entity has the positive intent and ability to hold to maturity, which are reported at amortized cost. • Trading – Debt securities that are bought and held principally for the purpose of selling in the near term, which are reported at fair value, with unrealized gains and losses included in earnings. • Available-for-Sale – Debt securities not classified as either held-to-maturity or trading securities, which are reported at fair value with unrealized gains or losses excluded from earnings and reported as a separate component of shareholders' equity. The Company reassesses the appropriateness of the classification (i.e. held-to-maturity, trading or available-for-sale) of its investments at the end of each reporting period. When the fair value of an investment declines below its original cost, the Company considers all available evidence to evaluate whether the decline is other-than-temporary. Among other things, the Company considers the duration and extent of the decline and economic factors influencing the capital markets. For the fiscal years ended June 28, 2020, June 30, 2019, and June 24, 2018, the Company had no other-than-temporary declines below the cost basis of its investments. The Company utilizes specific identification in computing realized gains and losses on the sale of investments. Realized gains and losses on the sale of investments are reported in non-operating (income) expense, net. Investments in marketable securities with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) method or an average cost method. The Company writes down its inventory balances for estimates of excess and obsolete amounts. These write-downs are recognized as a component of cost of revenue. At the point of the write-down, a new lower cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established lower cost basis. If that inventory is subsequently sold, the sale is recorded at the actual selling price and the related cost of revenue is recorded at the new lower cost basis. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and depreciated on a straight-line basis over the assets’ estimated useful lives. Leasehold improvements are amortized over the lesser of the asset life or the term of the related lease. In general, the Company’s policy for useful lives is as follows: Furniture and fixtures 5 years Buildings and building improvements 5 to 40 years Machinery and equipment 3 to 15 years Vehicles 5 years Computer hardware/software 3 years Leasehold improvements Shorter of estimated useful life or lease term Expenditures for repairs and maintenance are charged to expense as incurred. The costs for major renewals and improvements are capitalized and depreciated over their estimated useful lives. The cost and related accumulated depreciation of the assets are removed from the accounts upon disposition and any resulting gain or loss is reflected in operating income. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are included in cost of revenue, net in the consolidated statements of operations and are recognized as a period expense during the period in which they are incurred. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company recognizes the assets acquired and liabilities assumed in business combinations at their respective fair values at the date of acquisition, with any excess purchase price recognized as goodwill. Valuation of intangible assets entails significant estimates and assumptions including, but not limited to, estimating future cash flows from product revenue, developing appropriate discount rates, continuation of customer relationships and renewal of customer contracts, and approximating the useful lives of the intangible assets acquired. Goodwill The Company recognizes goodwill as an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company tests goodwill for impairment at least annually as of the first day of the fiscal fourth quarter, or when indications of potential impairment exist. The Company monitors for the existence of potential impairment indicators throughout the fiscal year. The Company conducts impairment testing for goodwill at the reporting unit level. Reporting units may be operating segments as a whole, or an operation one level below an operating segment, referred to as a component. The Company has determined that it has one reporting unit, Wolfspeed. The Company may initiate goodwill impairment testing by considering qualitative factors to determine whether it is more likely than not that a reporting unit's carrying value is greater than its fair value. Such factors may include the following, among others: a significant decline in the reporting unit ’ s expected future cash flows; a sustained, significant decline in the Company ’ s stock price and market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; and slower growth rates; as well as changes in management, key personnel, strategy and customers . If the Company's qualitative assessment indicates it is more likely than not that the estimated fair value of a reporting unit exceeds its carrying value, no further analysis is required and goodwill is not impaired. Otherwise, the Company performs a quantitative goodwill impairment test to determine if goodwill is impaired. The quantitative test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets associated with the reporting unit, goodwill is not considered impaired. If the carrying value of the net assets associated with the reporting unit exceeds the fair value of the reporting unit, the Company recognizes an impairment loss in an amount equal to the excess, not to exceed the carrying value of the reporting unit's goodwill. Once an impairment loss is recognized, the adjusted carrying value of the goodwill becomes the new accounting basis of the goodwill for the reporting unit. The Company derives a reporting unit's fair value through a combination of the market approach (guideline transaction method and guideline public company method) and the income approach (a discounted cash flow analysis). The income approach utilizes a discount rate from a capital asset pricing model. The fair values are reconciled back to the Company ’ s consolidated market capitalization. Finite-Lived Intangible Assets U.S. GAAP requires that intangible assets, other than goodwill and indefinite-lived intangibles, must be amortized over their useful lives. The Company is currently amortizing its acquired intangible assets with finite lives over periods ranging from four Patent rights reflect costs incurred by the Company in applying for and maintaining patents owned by the Company and costs incurred in purchasing patents and related rights from third parties. Licensing rights reflect costs incurred by the Company in acquiring licenses under patents owned by others. The Company amortizes both on a straight-line basis over the expected useful life of the associated patent rights, which is generally the lesser of 20 years from the date of the patent application or the license period. Royalties payable under licenses for patents owned by others are generally expensed as incurred. The Company reviews its capitalized patent portfolio and recognizes impairment charges when circumstances warrant, such as when patents have been abandoned or are no longer being pursued. |
Long-Lived Assets | Long-Lived AssetsThe Company reviews long-lived assets such as property and equipment for impairment based on changes in circumstances that indicate their carrying amounts may not be recoverable. In making these determinations, the Company uses certain assumptions, including but not limited to: (1) estimations of the fair market value of the assets and (2) estimations of future cash flows expected to be generated by these assets, which are based on additional assumptions such as asset utilization, length of service the asset will be used in the Company’s operations and estimated salvage values. |
Contingent Liabilities | Contingent Liabilities The Company recognizes contingent liabilities when it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Disclosure in the notes to the financial statements is required for loss contingencies that do not meet both these conditions if there is a reasonable possibility that a loss may have been incurred. See Note 16, “Commitments and Contingencies,” for a discussion of loss contingencies in connection with pending and threatened litigation. The Company expenses as incurred the costs of defending legal claims against the Company. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. Substantially all of the Company's revenue is derived from product sales. Revenue is recognized at a point in time based on the Company’s evaluation of when the customer obtains control of the products, and all performance obligations under the terms of the contract are satisfied. If customer acceptance clauses are present and it cannot be objectively determined that control has been transferred based on the contract and shipping terms, revenue is only recorded when customer acceptance is received and all performance obligations have been satisfied. Sales of products typically do not include more than one performance obligation. A substantial portion of the Company’s products are sold through distributors. Distributors stock inventory and sell the Company’s products to their own customer base, which may include: value added resellers; manufacturers who incorporate the Company’s products into their own manufactured goods; or ultimate end users of the Company’s products. The Company recognizes revenue upon shipment of its products to its distributors. This arrangement is often referred to as a “sell-in” or “point-of-purchase” model as opposed to a “sell-through” or “point-of-sale” model, where revenue is deferred and not recognized until the distributor sells the product through to their customer. Master supply or distributor agreements are in place with many of the Company's customers and contain terms and conditions including, but not limited to payment, delivery, incentives and warranty. These agreements typically do not require minimum purchase commitments. If a master supply, distributor or other similar agreement is not in place with a customer, the Company considers a purchase order, which is governed by the Company’s standard terms and conditions, to be the contract governing the relationship with that customer. Pricing terms are negotiated independently on a stand-alone basis. Revenue is measured based on the amount of net consideration to which the Company expects to be entitled to receive in exchange for products or services. Variable consideration is recognized as a reduction of net revenue with a corresponding reserve at the time of revenue recognition, and consists primarily of sales incentives or rebates, price concessions and return allowances. Variable consideration is estimated based on contractual terms, historical analysis of customer purchase volumes, or historical analysis using specific data for the type of consideration being assessed. The Company offers product warranties and establishes liabilities for estimated warranty costs based upon historical experience and specific warranty provisions. Some of the Company’s distributors are provided limited rights that allow them to return a portion of inventory (product exchange rights or stock rotation rights) and receive credits for changes in selling prices (price protection rights) or customer pricing arrangements under the Company’s “ship and debit” program or other targeted sales incentives. These estimates are calculated based upon historical experience, product shipment analysis, current economic conditions, on-hand inventory at the distributor, and customer contractual arrangements. The Company believes that it can reasonably and reliably estimate the allowance for distributor credits at the time of sale. Accordingly, estimates for these rights are recognized at the time of sale as a reduction of product revenue and as a contract liability. From time to time, the Company will issue a new price book for its products, and provide a credit to certain distributors for inventory quantities on hand if required by the Company’s agreement with the distributor. This practice is known as price protection. These credits are applied against the reserve that the Company establishes upon initial shipment of product to the distributor. Under the ship and debit program, products are sold to distributors at negotiated prices and the distributors are required to pay for the products purchased within the Company’s standard commercial terms. Subsequent to the initial product purchase, a distributor may request a price allowance for a particular part number(s) for certain target customers, prior to the distributor reselling the particular part to that customer. If the Company approves an allowance and the distributor resells the product to the target customer, the Company credits the distributor according to the allowance the Company approved. These credits are applied against the reserve that the Company establishes upon initial shipment of product to the distributor. In addition, the Company runs sales incentive programs with certain distributors, such as product rebates. The Company recognizes these incentives at the time they are offered to customers and records a credit to their account with an offsetting expense as either a reduction to revenue, increase to cost of revenue, or marketing expense depending on the type of sales incentive. The Company also has inventory consignment agreements in which revenue is recognized at a point in time, when the customer or distributor pulls product from consignment inventory that the Company stores at designated locations. Delivery and transfer of control occur at that point, when title and risk of loss transfers and the customer or distributor becomes obligated to pay for the products pulled from inventory. Until the products are pulled for use or sale by the customer or distributor, the Company retains control over the products’ disposition, including the right to pull back or relocate the products. From time to time, the Company may enter into licensing arrangements related to its intellectual property. Revenue from licensing arrangements is recognized when earned and estimable. The timing of revenue recognition is dependent on the terms of each license agreement. Generally, the Company will recognize non-refundable upfront licensing fees related to patent licenses immediately upon receipt of the funds if the Company has no significant future obligations to perform under the arrangement. However, the Company will defer recognition for licensing fees where the Company has significant future performance requirements, the fee is not fixed (such as royalties earned as a percentage of future revenue), or the fees are otherwise contingent. |
Leases | Leases At lease inception, the Company determines an arrangement is a lease if the contract involves the use of a distinct identified asset, the lessor does not have substantive substitution rights and the Company obtains control of the asset throughout the period by obtaining substantially all of the economic benefit of the asset and the right to direct the use of the asset. Right-of-use assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Assets and liabilities are recognized based on the present value of lease payments over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Because most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company would use the implicit rate when readily determinable. Operating lease expense is generally recognized on a straight-line basis over the lease term. Finance lease assets are amortized on a straight-line basis over the shorter of the useful life of the asset or the lease term. Interest expense on the finance lease liability is recognized using the effective interest rate method and is presented within interest expense on the Company’s consolidated statements of operations. The Company has agreements with lease and non-lease components, which are accounted for as a single lease component. Leases with a lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as increases in lease payments based on changes in index rates, are not included in the right-of-use assets or liabilities. These variable lease payments are expensed as incurred. |
Accounts Receivable | Accounts Receivable For product revenue, the Company typically invoices its customers at the time of shipment for the sales order value of products shipped. Accounts receivable are recognized at the invoiced amount and are not subject to any interest or finance charges. The Company does not have any off-balance sheet credit exposure related to any of its customers. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts The Company evaluates the collectability of accounts receivable based on a combination of factors. In cases where the Company becomes aware of circumstances that may impair a specific customer’s ability to meet its financial obligations subsequent to the original sale, the Company will recognize an allowance against amounts due, and thereby reduce the net recognized receivable to the amount the Company reasonably believes will be collected. For all other customers, the Company recognizes an allowance for doubtful accounts based on the length of time the receivables are past due and consideration of other factors such as industry conditions, the current business environment and the Company’s historical experience. |
Advertising | AdvertisingThe Company expenses the costs of producing advertisements at the time production occurs and expenses the cost of communicating the advertising in the period in which the advertising is used. |
Research and Development | Research and Development Research and development activities are expensed when incurred. |
Loss Per Share | Loss Per Share Basic loss per share is computed by dividing net loss by the weighted average number of shares of common stock outstanding for the applicable period. Diluted loss per share is determined in the same manner as basic loss per share except that the number of shares is increased to assume exercise of potentially dilutive stock options, nonvested restricted stock and contingently issuable shares using the treasury stock method, unless the effect of such increases would be anti-dilutive. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recognized in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense for all share-based payments granted based on the fair value of the shares on the date of grant. Compensation expense is then recognized over the award’s vesting period. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Cash and cash equivalents, short-term investments, accounts and interest receivable, accounts payable and other liabilities approximate their fair values at June 28, 2020 and June 30, 2019 due to the short-term nature of these instruments. |
Taxes | Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are recognized for deductible temporary differences, along with net operating loss carryforwards and credit carryforwards, if it is more likely than not that the tax benefits will be realized. To the extent a deferred tax asset cannot be recognized under the preceding criteria, valuation allowances are established. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Taxes payable which are not based on income are accrued ratably over the period to which they apply. For example, payroll taxes are accrued each period end based upon the amount of payroll taxes that are owed as of that date; whereas taxes such as property taxes and franchise taxes are accrued over the fiscal year to which they apply if paid at the end of a period, or they are amortized ratably over the fiscal year if they are paid in advance. |
Foreign Currency Translation | Foreign Currency Translation Foreign currency translation adjustments are recognized in other comprehensive income (loss) in the consolidated statements of comprehensive loss for changes between the foreign subsidiaries’ functional currency and the United States (U.S.) dollar. Foreign currency translation gains and losses are included in the Company’s equity account balance of accumulated other comprehensive income, net of taxes in the consolidated balance sheets until such time that the subsidiaries are either sold or substantially liquidated. Due to the sale of the Lighting Products business unit in fiscal 2019, $5.2 million of currency translation loss was reclassified out of other comprehensive income (loss) and recognized in the consolidated statements of operations as part of the loss on transaction. The Company and its subsidiaries transact business in currencies other than the U.S. Dollar and as such, the Company will continue to experience varying amounts of foreign currency exchange gains and losses. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Leases In February 2016, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) No. 2016-02: Leases (Topic 842) (ASC 842), and ASU 2018-10: Codification Improvements to ASC 842, Leases. These ASUs require that a lessee recognize in its statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term and requires enhanced disclosures about an entity’s leasing arrangements. The Company adopted this standard on July 1, 2019, under the modified retrospective transition approach with the cumulative effect of application recognized at the effective date, without adjustment to prior comparative periods. The Company elected to utilize the transition package of practical expedients that allows the Company to not reassess (1) whether any expired or existing contracts are leases, or contain leases, (2) the lease classification for any expired or existing leases, and (3) initial direct costs for any existing leases. Further, the Company elected the practical expedient to not separate lease and non-lease components for all leases and account for the combined lease and non-lease components as a single lease component. The Company also made an accounting policy election to exclude leases with an initial term of 12 months or less from the consolidated balance sheets. The adoption of the new standard resulted in the recognition of $11.0 million of lease liabilities with corresponding right-of-use assets of $11.0 million as of July 1, 2019. As required, the right-of-use assets include the effect of reclassifying certain balances including deferred and prepaid rent, a portion of facilities-related restructuring accrual reserves, and a favorable lease intangible asset previously recognized in connection with an acquisition. The Company did not have a cumulative-effect adjustment to retained earnings as a result of the adoption of the new standard. The standard did not materially impact the Company's results from operations and had no impact on cash flows. See Note 5, "Leases," for additional disclosures, as required by the new standard. The reported results as of and for the year ended June 28, 2020 reflect the application of the new accounting guidance, while the reported results for prior periods have not been adjusted and continue to be reported in accordance with the Company's historical accounting under ASC 840, Leases. Income Taxes In December 2019, the FASB issued ASU 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes. This ASU simplifies the accounting for income taxes by removing certain exceptions to the general principles in Topic 740. The ASU also improves consistent application and simplifies other areas of Topic 740 by clarifying and amending existing guidance. Early adoption is permitted, provided that the Company reflects any adjustments as of the beginning of the annual period that includes the interim period for which such early adoption occurs. Additionally, the Company must adopt all the amendments in the same period if early adoption is elected. The Company early adopted this standard in the fourth quarter of fiscal 2020 with no material impact on the Company’s consolidated financial statements. In February 2018, the FASB issued ASU 2018-02, Income Statement – Reporting Comprehensive Income (Topic 220): Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income. The FASB issued ASU 2018-02 to give entities the option to reclassify tax effects stranded in accumulated other comprehensive income as a result of the enactment of the Tax Cut and Jobs Act of 2017 (TCJA) to retained earnings. The Company adopted this standard in the fourth quarter of fiscal 2020. For the year ended June 28, 2020, the Company did not elect to reclassify tax effects stranded in accumulated other comprehensive income as a result of the enactment of the TCJA to retained earnings. The Company's policy is to account for the release of disproportionate income tax effects stranded in accumulated other comprehensive income under the aggregate portfolio approach. Recently Issued Accounting Pronouncements Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This ASU introduces a new accounting model known as Current Expected Credit Losses (“CECL”). CECL requires earlier recognition of credit losses, while also providing additional transparency about credit risk. The CECL model utilizes a lifetime expected credit loss measurement objective for the recognition of credit losses for receivables at the time the financial asset is originated or acquired. The expected credit losses are adjusted each period for changes in expected lifetime credit losses. This model replaces the multiple existing impairment models in current GAAP, which generally require that a loss be incurred before it is recognized. The new standard will also apply to receivables arising from revenue transactions such as contract assets and accounts receivables. There are other provisions within the standard affecting how impairments of other financial assets may be recorded and presented, as well as expanded disclosures. The Company adopted this standard on June 29, 2020, the first day of fiscal 2021, and does not expect this standard to have a material impact on its consolidated financial statements. |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The Company has classified the results of the Lighting Products business unit as discontinued operations, the results of which for the fiscal years ended June 30, 2019 and June 24, 2018 are as follows: Fiscal Years Ended June 30, 2019 June 24, 2018 (in millions of U.S. Dollars) Revenue, net $419.8 $568.8 Cost of revenue, net 324.3 463.2 Gross profit 95.5 105.6 Research and development 37.1 35.9 Sales, general and administrative 100.6 97.6 Amortization or impairment of acquisition-related intangibles 116.4 23.6 Goodwill impairment charges 90.3 247.5 Loss on disposal or impairment of long-lived assets 2.0 2.1 Operating loss (250.9) (301.1) Non-operating income — (1.3) Loss before income taxes and loss on sale (250.9) (299.8) Loss on sale 66.2 — Loss before income taxes (317.1) (299.8) Income tax expense (benefit) 0.1 (36.3) Net loss ($317.2) ($263.5) The following table presents the financial results of the LED Business as income (loss) from discontinued operations, net of income taxes in the Company's consolidated statements of operations: Fiscal Years Ended June 28, 2020 June 30, 2019 June 24, 2018 (in millions of U.S. Dollars) Revenue, net $433.2 $541.8 $596.3 Cost of revenue, net 343.4 394.5 439.3 Gross profit 89.8 147.3 157.0 Operating expenses: Research and development 32.2 36.8 37.5 Sales, general and administrative 29.7 31.8 26.5 (Income) loss on disposal or impairment of other assets (0.1) (0.3) 0.5 Other operating expense 13.3 1.4 — Operating income 14.7 77.6 92.5 Non-operating income (0.5) (0.1) — Income before income taxes 15.2 77.7 92.5 Income tax expense 8.2 17.1 34.0 Net income 7.0 60.6 58.5 Net income attributable to noncontrolling interest 1.1 — 0.1 Net income attributable to controlling interest $5.9 $60.6 $58.4 The following table presents the assets and liabilities of the LED Business classified as discontinued operations: Fiscal Years Ended June 28, 2020 June 30, 2019 (in millions of U.S. Dollars) Assets Short-term investments 12.0 9.4 Accounts receivable, net 41.6 59.7 Inventories 57.2 75.6 Prepaid expenses 0.1 0.1 Other current assets 5.1 6.4 Current assets of discontinued operations 116.0 151.2 Property and equipment, net 60.3 64.6 Goodwill 180.3 180.3 Intangible assets, net 22.7 23.8 Deferred income taxes 5.1 4.7 Other assets 1.7 — Long-term assets of discontinued operations 270.1 273.4 Liabilities Accounts payable and accrued expenses 31.0 36.4 Accrued contract liabilities 24.1 30.7 Income tax payable 2.0 1.7 Other current liabilities 3.1 2.7 Current liabilities of discontinued operations 60.2 71.5 Other long-term liabilities 9.8 7.6 Long-term liabilities of discontinued operations 9.8 7.6 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregated Revenue from External Customers by Geographic Area | Disaggregated revenue from external customers by geographic area is as follows: For the Years Ended June 28, 2020 June 30, 2019 June 24, 2018 (in millions of U.S. Dollars) Revenue % of Revenue Revenue % of Revenue Revenue % of Revenue Europe 171.4 36 % 162.9 30 % 82.9 25 % United States 106.5 23 % 122.0 23 % 92.4 28 % China 65.0 14 % 116.3 22 % 82.4 25 % Other 127.8 27 % 137.0 25 % 70.9 22 % Total $ 470.7 $ 538.2 $ 328.6 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities | Lease assets and liabilities as of June 28, 2020, and the corresponding balance sheet classifications, are as follows (in millions of U.S. Dollars): Operating Leases: Right-of-use asset (1) $12.3 Current lease liability (2) 4.8 Non-current lease liability (3) 7.5 Total operating lease liabilities 12.3 Finance Leases: Finance lease assets (4) 15.4 Current portion of finance lease liabilities 3.6 Finance lease liabilities, less current portion 11.4 Total finance lease liabilities 15.0 (1) Within other assets on the consolidated balance sheets. (2) Within other current liabilities (3) Within other long-term liabilities (4) Within property and equipment, net on the consolidated balance sheets. |
Schedule of Cash Flow Information | Cash flow information consisted of the following: Fiscal year ended (in millions of U.S. Dollars) June 28, 2020 Cash used in operating activities: Cash paid for operating leases $5.5 Cash paid for interest portion of financing leases 0.1 Cash used in financing activities: Cash paid for principal portion of finance leases 0.8 Non-cash operating activities: Operating lease additions due to adoption of ASC 842 11.0 Operating lease additions and modifications, net 6.4 Finance lease additions 15.7 |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating and finance lease liabilities as of June 28, 2020 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 27, 2021 $5.3 $3.9 $9.2 June 26, 2022 3.8 1.7 5.5 June 25, 2023 1.8 0.7 2.5 June 30, 2024 0.9 0.7 1.6 June 29, 2025 0.8 0.7 1.5 Thereafter 0.4 15.2 15.6 Total lease payments 13.0 22.9 35.9 Imputed lease interest (0.7) (7.9) (8.6) Total lease liabilities $12.3 $15.0 $27.3 |
Schedule of Maturities of Finance Lease Liabilities | Maturities of operating and finance lease liabilities as of June 28, 2020 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 27, 2021 $5.3 $3.9 $9.2 June 26, 2022 3.8 1.7 5.5 June 25, 2023 1.8 0.7 2.5 June 30, 2024 0.9 0.7 1.6 June 29, 2025 0.8 0.7 1.5 Thereafter 0.4 15.2 15.6 Total lease payments 13.0 22.9 35.9 Imputed lease interest (0.7) (7.9) (8.6) Total lease liabilities $12.3 $15.0 $27.3 |
Schedule of Weighted Average Remaining Lease Term and Discount Rates of Leases | Supplemental Disclosures Operating Leases Finance Leases Weighted average remaining lease term (in months) (1) 40 337 Weighted average discount rate (2) 3.52 % 3.00 % (1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 31 months. (2) Weighted average discount rate of finance leases without the 49-year ground lease is 3.51%. |
Schedule of Future Minimum Rental Payments on Operating Leases | The aggregate future non-cancelable minimum rental payments on operating leases as of June 30, 2019, were as follows: Fiscal Years Ending (in millions of U.S. Dollars) June 28, 2020 $3.2 June 27, 2021 2.2 June 26, 2022 1.2 June 25, 2023 0.7 June 30, 2024 — Thereafter — Total future minimum rental payments $7.3 |
Acquisition (Tables)
Acquisition (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Business Combinations [Abstract] | |
Schedule of Purchase Price Allocation | The final purchase price allocation is as follows: (in millions of U.S. Dollars) Inventories $22.5 Property and equipment 11.7 Other receivables 0.4 Intangible assets 149.0 Goodwill 249.0 Accrued expenses and liabilities (3.4) Net assets acquired $429.2 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination | The weighted average life of the acquired intangible assets is approximately 13.8 years. The components of the acquired intangible assets are as follows: (in millions of U.S. Dollars, except year data) Asset Amount Estimated Life (in years) Lease agreement (1) $1.0 10 Customer relationships 92.0 15 Developed technology 44.0 14 Non-compete agreements 12.0 4 Total identifiable intangible assets $149.0 (1) In the first quarter of fiscal 2020, the acquired lease agreement was reclassified from an intangible asset to a right-of-use asset in accordance with the Company's adoption of ASC 842, Leases. |
Schedule of Revenue of Acquiree since Acquisition Date | The results of the RF Power business reflected in the Company's consolidated statements of operations for the fiscal year ended June 24, 2018 from the date of acquisition (March 6, 2018) are as follows: (in millions of U.S. Dollars) Amount Revenue $29.0 Net loss from continuing operations (11.7) |
Schedule of Pro Forma Information of Acquiree | The following supplemental pro forma information presents the consolidated financial results as if the RF Power transaction had occurred at the beginning of fiscal 2018: Fiscal Year Ended (in millions of U.S. Dollars, except share data) June 24, 2018 Revenue $394.0 Net loss from continuing operations (79.3) Basic and diluted loss per share from continuing operations ($0.80) |
Financial Statement Details (Ta
Financial Statement Details (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net consisted of the following: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Billed trade receivables $71.5 $68.1 Unbilled contract receivables 1.2 0.7 Royalties 0.4 0.6 73.1 69.4 Allowance for bad debts (0.7) (0.2) Accounts receivable, net $72.4 $69.2 Changes in the Company’s allowance for bad debts were as follows: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 June 24, 2018 Balance at beginning of period $0.2 $0.2 $0.1 Current period provision change 0.6 — 0.2 Write-offs, net of recoveries (0.1) — (0.1) Balance at end of period $0.7 $0.2 $0.2 |
Schedule of Inventories | Inventories consisted of the following: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Raw material $36.9 $31.5 Work-in-progress 73.9 65.3 Finished goods 11.1 15.0 Inventories $121.9 $111.8 (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Wolfspeed $97.3 $81.6 Inventory related to future Wafer Supply Agreement 19.0 23.6 Unallocated inventories 5.6 6.6 Inventories $121.9 $111.8 |
Schedule of Property and Equipment, Net | Property and equipment, net consisted of the following: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Machinery and equipment $859.9 $842.3 Land and buildings 363.1 345.2 Computer hardware/software 46.8 42.0 Furniture and fixtures 8.1 8.6 Leasehold improvements and other 9.7 3.8 Vehicles 0.6 0.7 Finance lease assets 15.4 — Construction in progress 366.8 229.1 Property and equipment, gross 1,670.4 1,471.7 Accumulated depreciation (899.6) (911.1) Property and equipment, net $770.8 $560.6 |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Accounts payable, trade $88.1 $68.1 Accrued salaries and wages 42.3 65.8 Accrued expenses 55.3 28.7 Other 4.1 1.9 Accounts payable and accrued expenses $189.8 $164.5 |
Schedule of Accumulated Other Comprehensive Income, Net of Taxes | Accumulated other comprehensive income, net of taxes consisted of the following: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Currency translation gain $9.5 $9.5 Net unrealized gain on available-for-sale securities (1) 6.5 — Accumulated other comprehensive income, net of taxes $16.0 $9.5 (1) Amounts as of June 28, 2020 and June 30, 2019 include a $2.4 million loss related to tax on unrealized gain (loss) on available-for-sale securities. |
Schedule of Other Operating Expense (Income) | The following table summarizes the components of other operating expense: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 June 24, 2018 Factory optimization restructuring $8.5 $4.1 $— Severance and other restructuring 0.6 2.8 3.8 Total restructuring costs 9.1 6.9 3.8 Project, transformation and transaction costs 12.2 16.9 8.5 Factory optimization start-up costs 9.5 1.5 — Non-restructuring related executive severance 2.1 1.3 4.5 Other operating expense $32.9 $26.6 $16.8 |
Schedule of Non-Operating Expense (Income), Net | The following table summarizes the components of non-operating (income) expense, net: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 June 24, 2018 (Gain) loss on sale of investments, net ($1.5) $0.1 $0.1 (Gain) loss on equity investment (14.2) 16.2 (7.1) Gain on partial debt extinguishment (11.0) — — Gain on arbitration proceedings (7.9) — — Interest income (16.3) (13.9) (9.1) Interest expense 34.9 26.0 7.3 Foreign currency (gain) loss, net (2.0) 1.3 (1.8) Other, net (0.5) (0.3) 0.2 Non-operating (income) expense, net ($18.5) $29.4 ($10.4) |
Schedule of Non-cash Operating Activities | Statements of Cash Flows - non-cash activities Twelve months ended Non-cash operating activities June 28, 2020 June 30, 2019 June 24, 2018 Lease asset and liability additions (1) $28.3 $— $— Lease asset and liability modifications, net 4.8 — — (1) $11.0 million relates to the increase of right-of-use assets and matching lease liabilities as a result of adopting ASC 842. See Note 5, "Leases", for further information. |
Schedule of Tangible Long-Lived Assets by Country | The Company's tangible long-lived assets by country are as follows: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 United States $758.2 $552.4 China 2.6 2.7 Other 10.0 5.5 Total $770.8 $560.6 |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Short-term Investments by Type | Short-term investments as of June 28, 2020 consist of the following: June 28, 2020 (in millions of U.S. Dollars) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses (1) Estimated Fair Value Municipal bonds $130.0 $2.0 $— $132.0 Corporate bonds 473.8 6.3 — 480.1 U.S. agency securities 29.1 — — 29.1 U.S. treasury securities 52.3 0.6 — 52.9 U.S. certificates of deposit 83.3 — — 83.3 Commercial paper 11.0 — — 11.0 Variable rate demand note 2.5 — — 2.5 Total short-term investments $782.0 $8.9 $— $790.9 (1) The Company had an unrealized loss of less than $0.1 million as of June 28, 2020. Short-term investments as of June 30, 2019 consist of the following: June 30, 2019 (in millions of U.S. Dollars) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Municipal bonds $78.2 0.4 ($0.1) $78.5 Corporate bonds 256.0 1.0 — 257.0 U.S. agency securities 25.6 — — 25.6 U.S. treasury securities 92.4 0.1 92.5 Certificates of deposit 62.1 1.1 — 63.2 Commercial paper 7.8 — — 7.8 Variable rate demand note 16.9 — — 16.9 Total short-term investments $539.0 2.6 ($0.1) $541.5 |
Schedule of Gross Unrealized Losses and Fair Value of Short-term Investments by Type and Length of Time | The following table presents the gross unrealized losses and estimated fair value of the Company’s short-term investments, aggregated by investment type and the length of time that individual securities have been in a continuous unrealized loss position: June 28, 2020 Less than 12 Months Greater than 12 Months Total (in millions of U.S. Dollars) Fair Value Unrealized Loss (1) Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $14.3 $— $— $— $14.3 $— Corporate bonds 29.1 — — — 29.1 — U.S. agency securities 8.6 — — — 8.6 — U.S. treasury securities 13.8 — — — 13.8 — Total $65.8 $— $— $— $65.8 $— Number of securities with an unrealized loss 46 — 46 (1) S ecurities with an unrealized loss of less than 12 months as of June 28, 2020 have an unrealized loss value of less than $0.1 million, individually and in the aggregate. The following table presents the gross unrealized losses and estimated fair value of the Company’s short-term investments, aggregated by investment type and the length of time that individual securities have been in a continuous unrealized loss position: June 30, 2019 Less than 12 Months Greater than 12 Months Total (in millions of U.S. Dollars) Fair Value Unrealized Loss (1) Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $4.3 $— $29.8 ($0.1) $34.1 ($0.1) Corporate bonds 41.8 — 14.7 — 56.5 — U.S. agency securities 7.7 — — — 7.7 — U.S. treasury securities 2.0 — 3.9 — 5.9 — Total $55.8 $— $48.4 ($0.1) $104.2 ($0.1) Number of securities with an unrealized loss 46 47 93 (1) S ecurities with an unrealized loss of less than 12 months as of June 30, 2019 have an unrealized loss value of less than $0.1 million, individually and in the aggregate. |
Schedule of Contractual Maturities of Short-term Investments by Type | The contractual maturities of short-term investments at June 28, 2020 were as follows: (in millions of U.S. Dollars) Within One Year After One, Within Five Years After Five, Within Ten Years After Ten Years Total Municipal bonds $29.4 $102.6 $— $— $132.0 Corporate bonds 191.0 289.1 — — 480.1 U.S. agency securities 17.3 11.8 — — 29.1 U.S. treasury securities 36.1 16.8 — — 52.9 Certificates of deposit 83.3 — — — 83.3 Commercial paper 11.0 — — — 11.0 Variable rate demand note — — — 2.5 2.5 Total short-term investments $368.1 $420.3 $— $2.5 $790.9 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Carried at Fair Value | Financial instruments carried at fair value were as follows: June 28, 2020 June 30, 2019 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 199.9 $ — $ — $ 199.9 $ 95.0 $ — $ — $ 95.0 Corporate bonds — — — — — 15.0 — 15.0 U.S. agency securities — 19.6 — 19.6 — 18.8 — 18.8 U.S. treasury securities 19.0 — — 19.0 2.5 — — 2.5 Certificates of deposit — 54.3 — 54.3 — 105.8 — 105.8 Commercial paper — 11.1 — 11.1 — 1.0 — 1.0 Total cash equivalents 218.9 85.0 — 303.9 97.5 140.6 — 238.1 Short-term investments: Municipal bonds — 132.0 — 132.0 — 78.5 — 78.5 Corporate bonds — 480.1 — 480.1 — 257.0 — 257.0 U.S. agency securities — 29.1 — 29.1 — 25.6 — 25.6 U.S. treasury securities 52.9 — — 52.9 92.5 — — 92.5 Certificates of deposit — 83.3 — 83.3 — 63.2 — 63.2 Commercial paper — 11.0 — 11.0 — 7.8 — 7.8 Variable rate demand note — 2.5 — 2.5 — 16.9 — 16.9 Total short-term investments 52.9 738.0 — 790.9 92.5 449.0 — 541.5 Other long-term investments: Common stock of non-U.S. corporations — 55.9 — 55.9 — 39.5 — 39.5 Total assets $271.8 $878.9 $— $1,150.7 $190.0 $629.1 $— $819.1 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Components of Intangible Assets | Intangible assets, net included the following: June 28, 2020 June 30, 2019 (in millions of U.S. Dollars) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets: Customer relationships $96.8 ($19.0) $77.8 $96.8 ($12.8) $84.0 Developed technology 68.0 (22.8) 45.2 69.0 (17.6) 51.4 Non-compete agreements 12.2 (7.1) 5.1 12.2 (4.1) 8.1 Acquisition related intangible assets 177.0 (48.9) 128.1 178.0 (34.5) 143.5 Patent and licensing rights 69.3 (40.5) 28.8 77.7 (47.1) 30.6 Total intangible assets 246.3 (89.4) 156.9 255.7 (81.6) 174.1 |
Schedule of Future Amortization Expense of Finite-lived Intangible Assets | Total future amortization expense of intangible assets is estimated to be as follows: (in millions of U.S. Dollars) Fiscal Year Ending Acquisition Related Intangibles Patents Total June 27, 2021 $14.5 $4.8 $19.3 June 26, 2022 13.5 4.1 17.6 June 25, 2023 11.0 3.5 14.5 June 30, 2024 10.4 2.9 13.3 June 29, 2025 10.4 2.3 12.7 Thereafter 68.3 11.2 79.5 Total future amortization expense $128.1 $28.8 $156.9 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Liability and Equity Components of Long-term Debt | The net carrying amount of the liability component of the Notes is as follows: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Principal $999.8 $575.0 Unamortized discount and issuance costs (216.0) (105.9) Net carrying amount $783.8 $469.1 The net carrying amount of the equity component of the Notes is as follows: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Discount related to value of conversion options $262.3 $113.3 Partial extinguishment of 2023 Notes (27.7) — Debt issuance costs (6.3) (2.7) Net carrying amount $228.3 $110.6 |
Schedule of Interest Expense | The interest expense recognized related to the Notes is as follows: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Interest expense $6.8 $4.3 Amortization of discount and issuance costs 26.2 18.3 Total interest expense $33.0 $22.6 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Equity [Abstract] | |
Schedule of Shares Reserved for Future Issuance | At June 28, 2020, the Company had reserved a total of approximately 39.0 million shares of its common stock for future issuance as follows (in thousands): Number of Shares For exercise of outstanding common stock options 983 For vesting of outstanding stock units 2,932 For future equity awards under 2013 Long-Term Incentive Compensation Plan 5,478 For future issuance under the Non-Employee Director Stock Compensation and Deferral Program 48 For future issuance to employees under the 2005 Employee Stock Purchase Plan 849 For future issuance upon conversion of the 2023 Notes 12,560 For future issuance upon conversion of the 2026 Notes 16,102 Total common shares reserved 38,952 |
Loss (earnings) Per Share (Tabl
Loss (earnings) Per Share (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic Earnings Per Share Computation | The details of the computation of basic and diluted (loss) earnings per share are as follows: Fiscal Years Ended (in millions of U.S. Dollars, except share data) June 28, 2020 June 30, 2019 June 24, 2018 Net loss from continuing operations $ (197.6) $ (118.5) $ (74.9) Net income (loss) from discontinued operations 7.0 (256.6) (205.0) Net income from discontinued operations attributable to noncontrolling interest 1.1 — 0.1 Net income (loss) from discontinued operations attributable to controlling interest 5.9 (256.6) (205.1) Weighted average number of common shares - basic and diluted (in thousands) 107,935 103,576 99,530 (Loss) earnings per share - basic and diluted: Continuing operations $ (1.83) $ (1.14) $ (0.75) Discontinued operations attributable to controlling interest $ 0.05 $ (2.48) $ (2.06) |
Schedule of Diluted Earnings Per Share Computation | The details of the computation of basic and diluted (loss) earnings per share are as follows: Fiscal Years Ended (in millions of U.S. Dollars, except share data) June 28, 2020 June 30, 2019 June 24, 2018 Net loss from continuing operations $ (197.6) $ (118.5) $ (74.9) Net income (loss) from discontinued operations 7.0 (256.6) (205.0) Net income from discontinued operations attributable to noncontrolling interest 1.1 — 0.1 Net income (loss) from discontinued operations attributable to controlling interest 5.9 (256.6) (205.1) Weighted average number of common shares - basic and diluted (in thousands) 107,935 103,576 99,530 (Loss) earnings per share - basic and diluted: Continuing operations $ (1.83) $ (1.14) $ (0.75) Discontinued operations attributable to controlling interest $ 0.05 $ (2.48) $ (2.06) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Option Activity | The following table summarizes option activity as of June 28, 2020 and changes during the fiscal year then ended (shares in thousands) Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Total Intrinsic Value (in millions of U.S. Dollars) Outstanding at June 30, 2019 2,418 $39.81 Granted — — Exercised (1,371) 40.49 Forfeited or expired (64) 55.37 Outstanding at June 28, 2020 983 37.88 1.77 $19.7 Vested and expected to vest at June 28, 2020 983 37.88 1.77 $19.7 Exercisable at June 28, 2020 981 37.91 1.76 $19.6 |
Schedule of Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding and exercisable at June 28, 2020 (shares in thousands): Options Outstanding Options Exercisable Range of Exercise Price Number Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Weighted Average Exercise Price $0.01 to $25.00 262 3.2 $24.34 261 $24.34 $25.01 to $35.00 203 2.3 26.59 202 26.59 $35.01 to $45.00 6 1.4 38.50 6 38.50 $45.01 to $55.00 468 0.9 48.12 468 48.12 $55.01 to $73.00 44 0.5 61.93 44 61.93 Total 983 981 |
Schedule of Other Information Pertaining to Stock Option Awards | Other information pertaining to the Company’s stock option awards is as follows: Fiscal Years Ended June 28, 2020 June 30, 2019 June 24, 2018 Weighted average grant date fair value per share of options $— $— $8.02 Total intrinsic value of options exercised (in millions of U.S. Dollars) $22.8 $63.3 $24.3 |
Schedule of Nonvested Restricted Stock Awards and Restricted Stock Unit Awards Outstanding | A summary of nonvested restricted stock awards (RSAs) and restricted stock unit awards (RSUs) outstanding as of June 28, 2020 and changes during the year then ended is as follows (shares in thousands): Number of RSAs/RSUs Weighted Average Grant-Date Fair Value Nonvested at June 30, 2019 3,081 $34.99 Granted 1,206 53.14 Vested (1,138) 30.77 Forfeited (217) 37.72 Nonvested at June 28, 2020 2,932 $43.89 |
Schedule of Total Stock-Based Compensation Expense | Total stock-based compensation expense was classified in the consolidated statements of operations as follows: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 June 24, 2018 Cost of revenue, net $10.0 $7.8 $5.8 Research and development 8.0 6.2 5.9 Sales, general and administrative 30.8 28.9 21.3 Total stock-based compensation expense $48.8 $42.9 $33.0 |
Schedule of Weighted Average Assumptions Utilized to Value Stock-Based Compensation | The range of assumptions used to value stock issued under the ESPP were as follows: Fiscal Years Ended June 28, 2020 June 30, 2019 June 24, 2018 Risk-free interest rate 0.12 - 2.67% 2.39 - 2.67% 0.89 - 2.26% Expected life, in years 0.5 - 1.0 0.5 - 1.0 0.5 - 1.0 Volatility 34.5 - 82.6% 34.5 - 39.6% 34.5 - 40.2% Dividend yield — — — The weighted average assumptions used to value stock option grants in fiscal 2018 were as follows: Risk-free interest rate 1.75 % Expected life, in years 4.0 Volatility 38.6 % Dividend yield — No stock option grants occurred in fiscal 2020 or fiscal 2019. The range of assumptions used for issued performance units were as follows: Fiscal Years Ended June 28, 2020 June 30, 2019 June 24, 2018 Risk-free interest rate 0.28 - 1.66% 2.68% 1.44 - 1.59% Expected life, in years 3.0 3.0 2.8 - 3.0 Average volatility of peer companies 48.9 - 55.2% 46.8% 46.4% Average correlation coefficient of peer companies 0.36 - 0.45 0.34 0.34 Dividend yield — — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Before Income Taxes | The following were the components of loss before income taxes: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 June 24, 2018 Domestic ($210.3) ($92.2) ($107.6) Foreign 4.7 (30.7) (2.5) Loss before income taxes ($205.6) ($122.9) ($110.1) |
Schedule of Components of Income Tax Expense | The following were the components of income tax (benefit) expense: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 June 24, 2018 Current: Federal ($7.3) $1.4 $13.7 Foreign 0.2 0.5 3.6 State 0.1 0.3 0.3 Total current (7.0) 2.2 17.6 Deferred: Federal 1.8 (1.9) (46.1) Foreign (2.8) (4.5) (3.6) State — (0.2) (3.1) Total deferred (1.0) (6.6) (52.8) Income tax benefit ($8.0) ($4.4) ($35.2) |
Schedule of Effective Income Tax Rate and Amount Reconciliation | Actual income tax expense (benefit) differed from the amount computed by applying each period's U.S. federal statutory tax rate to pre-tax earnings as a result of the following: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 % of Loss June 30, 2019 % of Loss June 24, 2018 % of Loss Federal income tax provision at statutory rate ($43.2) 21 % ($25.8) 21 % ($31.1) 28 % (Decrease) increase in income tax expense resulting from: State tax provision, net of federal benefit (1.9) 1 % (2.0) 2 % (6.2) 6 % Tax exempt interest (0.5) — % (0.4) — % (1.2) 1 % 48C investment tax credit — — % — — % (1.5) 1 % (Decrease) increase in tax reserve (0.3) — % 0.5 — % 0.1 — % Research and development credits (3.3) 2 % (2.8) 2 % (1.1) 1 % Foreign tax credit (0.3) — % (0.4) — % (39.2) 36 % Increase (decrease) in valuation allowance 50.3 (25) % 4.3 (4) % (29.4) 27 % Partial extinguishment of convertible notes (6.0) 3 % — — % — — % Stock-based compensation 2.1 (1) % 0.7 (1) % 8.3 (8) % Statutory rate differences 1.2 (1) % 6.0 (5) % (2.0) 2 % Foreign earnings taxed in U.S. 0.3 — % 0.4 — % 51.9 (47) % Foreign currency fluctuations — — % — — % (0.3) — % Other foreign adjustments 0.3 — % (0.1) — % (0.1) — % Net operating loss carryback (7.2) 4 % — — % (0.1) — % Provision to return adjustments (1.3) 1 % 11.8 (10) % — — % Tax on distributable foreign earnings — — % — — % 4.0 (4) % Impact of rate changes 0.8 — % 2.7 (2) % 11.2 (10) % Expiration of state credits 0.9 — % 1.2 (1) % 1.3 (1) % Other 0.1 — % (0.5) — % 0.2 — % Income tax benefit ($8.0) 4 % ($4.4) 4 % ($35.2) 32 % |
Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows: (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 Deferred tax assets: Compensation $4.4 $9.6 Inventories 7.9 3.8 Sales return reserve and allowance for bad debts 2.6 3.2 Federal and state net operating loss carryforwards 180.1 137.1 Federal credits 30.3 20.0 State credits 1.9 2.9 48C investment tax credits 37.5 25.9 Stock-based compensation 8.3 11.3 Deferred revenue 23.1 22.6 Lease liabilities 6.5 — Other 5.0 4.5 Total gross deferred assets 307.6 240.9 Less valuation allowance (208.5) (185.2) Deferred tax assets, net 99.1 55.7 Deferred tax liabilities: Property and equipment (27.8) (13.9) Intangible assets (19.2) (16.9) Investments (1.6) (0.9) Prepaid taxes and other (0.7) — Foreign earnings recapture (2.0) (2.0) Taxes on unremitted foreign earnings — (2.4) Lease assets (6.3) — Convertible notes (42.1) (20.7) Total gross deferred liability (99.7) (56.8) Deferred tax liability, net ($0.6) ($1.1) |
Schedule of Components Giving Rise to Net Deferred Tax Assets (Liabilities) Included in Accompanying Consolidated Balance Sheet | The components giving rise to the net deferred tax assets (liabilities) have been included in the consolidated balance sheets as follows: Balance at June 28, 2020 (in millions of U.S. Dollars) Assets Liabilities U.S. federal income taxes $— ($1.8) Foreign income taxes 1.2 — Total $1.2 ($1.8) Balance at June 30, 2019 (in millions of U.S. Dollars) Assets Liabilities U.S. federal income taxes $— $— Foreign income taxes 0.9 (2.0) Total $0.9 ($2.0) |
Schedule of Reconciliation of the Change in Uncertain Tax Positions | The following is a tabular reconciliation of the Company’s change in uncertain tax positions: Fiscal Years Ended (in millions of U.S. Dollars) June 28, 2020 June 30, 2019 June 24, 2018 Balance at beginning of period $8.2 $8.6 $13.3 Decrease related to current year change in law — — (4.7) Increases related to prior year tax positions — 0.5 0.6 Decreases related to prior year tax positions — — (0.1) Settlements with tax authorities (0.1) — (0.1) Expiration of statute of limitations for assessment of taxes (0.7) (0.9) (0.4) Balance at end of period $7.4 $8.2 $8.6 |
Quarterly Results of Operatio_2
Quarterly Results of Operations - Unaudited (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations | The following is a summary of the Company’s consolidated quarterly results of operations for each of the fiscal years ended June 28, 2020 and June 30, 2019: (in millions of U.S. Dollars, except share data) September 29, 2019 December 29, 2019 March 29, 2020 June 28, Fiscal Year 2020 Revenue, net $127.7 $120.7 $113.9 $108.4 $470.7 Cost of revenue, net 75.2 85.1 72.6 79.3 312.2 Gross profit 52.5 35.6 41.3 29.1 158.5 Net loss from continuing operations (39.3) (57.9) (56.2) (44.2) (197.6) Net income (loss) from discontinued operations 1.5 3.9 (3.7) 5.3 7.0 Net loss (37.8) (54.0) (59.9) (38.9) (190.6) Net income from discontinued operations attributable to noncontrolling interest — 0.3 0.2 0.6 1.1 Net loss attributable to controlling interest (37.8) (54.3) (60.1) (39.5) (191.7) Basic and diluted loss per share: Continuing operations ($0.37) ($0.54) ($0.52) ($0.41) ($1.83) Net loss attributable to controlling interest ($0.35) ($0.50) ($0.56) ($0.36) ($1.78) (in millions of U.S. Dollars, except share data) September 23, 2018 December 30, 2018 March 31, 2019 June 30, Fiscal Year 2019 Revenue, net $127.4 $135.3 $141.3 $134.2 $538.2 Cost of revenue, net 70.1 74.5 77.3 72.6 294.5 Gross profit 57.3 60.8 64.0 61.6 243.7 Net loss from continuing operations (22.4) (19.5) (37.1) (39.5) (118.5) Net income (loss) from discontinued operations 11.3 19.1 (190.6) (96.4) (256.6) Net loss (11.1) (0.4) (227.7) (135.9) (375.1) Net income (loss) from discontinued operations attributable to noncontrolling interest — — 0.1 (0.1) — Net loss attributable to controlling interest (11.1) (0.4) (227.8) (135.8) (375.1) Basic and diluted loss per share: Continuing operations ($0.22) ($0.19) ($0.36) ($0.37) ($1.14) Net loss attributable to controlling interest ($0.11) $— ($2.20) ($1.28) ($3.62) |
Business - Narrative (Details)
Business - Narrative (Details) | Oct. 18, 2020USD ($) |
Maximum | LED Business | |
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | |
Proceeds from divestiture of businesses | $ 300,000,000 |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) | Oct. 17, 2020segment | Jul. 17, 2017USD ($) | Jun. 28, 2020USD ($)board_membersegment | Jun. 30, 2019USD ($) | Jun. 24, 2018USD ($) | Jul. 01, 2019USD ($) |
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Prior period reclassification adjustment | $ 0 | |||||
Number of operating segments | segment | 2 | 1 | ||||
Number of reportable segments | segment | 2 | 1 | ||||
Other-than-temporary impairment losses on investments | $ 0 | $ 0 | $ 0 | |||
Advertising costs | 3,800,000 | 3,700,000 | 3,500,000 | |||
Net income from discontinued operations attributable to noncontrolling interest | 1,100,000 | 0 | 100,000 | |||
Cash paid for interest | 5,900,000 | 4,000,000 | 6,100,000 | |||
Cash paid for income taxes, net of refunds received | $ 3,600,000 | $ 500,000 | ||||
Cash refunds received, net of taxes | $ 5,400,000 | |||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | |||||
Change in Accounting Principle, Accounting Standards Update, Transition Option Elected [Extensible List] | us-gaap:AccountingStandardsUpdate201602ModifiedRetrospectiveMember | |||||
Lease liability | $ 12,300,000 | |||||
Right-of-use assets | $ 12,300,000 | |||||
Cree Venture LED | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Payments to acquire interest in joint venture | $ 5,100,000 | |||||
Ownership interest by parent (as a percent) | 51.00% | |||||
Number of directors | board_member | 5 | |||||
Number of directors appointed by company | board_member | 3 | |||||
San'an Optoelectronics Co., Ltd. | Cree Venture LED | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Proceeds from issuing Cree Venture LED stock to noncontrolling interest | $ 4,900,000 | |||||
Ownership interest by noncontrolling owners (as a percent) | 49.00% | |||||
Number of directors appointed by company | board_member | 2 | |||||
Accounting Standards Update 2016-02 | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201602Member | |||||
Lease liability | $ 11,000,000 | |||||
Right-of-use assets | $ 11,000,000 | |||||
Accounting Standards Update 2018-10 | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201810Member | |||||
Reclassification out of Accumulated Other Comprehensive Income | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Currency translation gains (losses) reclassified to earnings | $ (5,200,000) | |||||
Minimum | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Useful life of finite-lived intangible assets | 4 years | |||||
Number of renewal options | segment | 1 | |||||
Renewal term of leases | 1 year | |||||
Maximum | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Useful life of finite-lived intangible assets | 15 years | |||||
Renewal term of leases | 5 years | |||||
Patents | Maximum | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Useful life of finite-lived intangible assets | 20 years | |||||
Furniture and fixtures | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Useful life of property, plant and equipment | 5 years | |||||
Buildings and building improvements | Minimum | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Useful life of property, plant and equipment | 5 years | |||||
Buildings and building improvements | Maximum | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Useful life of property, plant and equipment | 40 years | |||||
Machinery and equipment | Minimum | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Useful life of property, plant and equipment | 3 years | |||||
Machinery and equipment | Maximum | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Useful life of property, plant and equipment | 15 years | |||||
Vehicles | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Useful life of property, plant and equipment | 5 years | |||||
Computer hardware/software | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Useful life of property, plant and equipment | 3 years | |||||
Lextar | ||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||||
Common stock ownership interest (as a percent) | 16.00% |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) | Oct. 18, 2020 | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | May 13, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Term of certain silicon carbide materials and fabrication services | 4 years | ||||
Lighting Products | Discontinued Operations, Held-for-sale or Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Aggregate net proceeds from sale of business unit | $ 219,000,000 | ||||
Loss on sale | $ 66,200,000 | $ 0 | |||
Transmission Service Agreement | Discontinued Operations, Held-for-sale or Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Administrative fees | $ 10,500,000 | 1,600,000 | |||
Transmission Service Agreement | Discontinued Operations, Held-for-sale or Disposed of by Sale | Sales, general and administrative | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Accrued administrative fees | 1,600,000 | 1,600,000 | |||
LED Supply Agreement | Discontinued Operations, Held-for-sale or Disposed of by Sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Revenue | 12,000,000 | 2,100,000 | |||
Accounts receivable, net | 700,000 | ||||
Contract liability | 9,900,000 | 13,400,000 | |||
LED Business | Discontinued Operations, Held-for-sale | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Accounts receivable, net | $ 41,600,000 | $ 59,700,000 | |||
Cash received from divestiture | $ 50,000,000 | ||||
Unsecured promissory note issued to parent in disposition | $ 125,000,000 | ||||
LED Business | Discontinued Operations, Held-for-sale | Purchase Price Note | Unsecured Debt | London Interbank Offered Rate (LIBOR) | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Basis spread on variable rate of debt instrument (as a percent) | 3.00% | ||||
LED Business | Discontinued Operations, Held-for-sale | Maximum | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Potential earn-out payment | $ 125,000,000 | ||||
Term of real estate license agreement | 24 months |
Discontinued Operations - Finan
Discontinued Operations - Financial Results (Details) - Lighting Products - Discontinued Operations, Held-for-sale or Disposed of by Sale - USD ($) $ in Millions | 12 Months Ended | |
Jun. 30, 2019 | Jun. 24, 2018 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||
Revenue, net | $ 419.8 | $ 568.8 |
Cost of revenue, net | 324.3 | 463.2 |
Gross profit | 95.5 | 105.6 |
Research and development | 37.1 | 35.9 |
Sales, general and administrative | 100.6 | 97.6 |
Amortization or impairment of acquisition-related intangibles | 116.4 | 23.6 |
Goodwill impairment charges | 90.3 | 247.5 |
Loss on disposal or impairment of long-lived assets | 2 | 2.1 |
Operating income | (250.9) | (301.1) |
Non-operating income | 0 | (1.3) |
Loss before income taxes and loss on sale | (250.9) | (299.8) |
Loss on sale | 66.2 | 0 |
Loss before income taxes | (317.1) | (299.8) |
Income tax expense (benefit) | 0.1 | (36.3) |
Net loss | $ (317.2) | $ (263.5) |
Discontinued Operations - Loss
Discontinued Operations - Loss from Discontinued Operations, Net of Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 23, 2018 | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Operating expenses: | |||||||||||
Net income | $ 5.3 | $ (3.7) | $ 3.9 | $ 1.5 | $ (96.4) | $ (190.6) | $ 19.1 | $ 11.3 | $ 7 | $ (256.6) | $ (205) |
Net income attributable to noncontrolling interest | 1.1 | 0 | 0.1 | ||||||||
Net income attributable to controlling interest | 5.9 | (256.6) | (205.1) | ||||||||
Discontinued Operations, Held-for-sale | LED Business | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Revenue, net | 433.2 | 541.8 | 596.3 | ||||||||
Cost of revenue, net | 343.4 | 394.5 | 439.3 | ||||||||
Gross profit | 89.8 | 147.3 | 157 | ||||||||
Operating expenses: | |||||||||||
Research and development | 32.2 | 36.8 | 37.5 | ||||||||
Sales, general and administrative | 29.7 | 31.8 | 26.5 | ||||||||
(Income) loss on disposal or impairment of other assets | (0.1) | (0.3) | 0.5 | ||||||||
Other operating expense | 13.3 | 1.4 | 0 | ||||||||
Operating income | 14.7 | 77.6 | 92.5 | ||||||||
Non-operating income | (0.5) | (0.1) | 0 | ||||||||
Income before income taxes | 15.2 | 77.7 | 92.5 | ||||||||
Income tax expense | 8.2 | 17.1 | 34 | ||||||||
Net income | 7 | 60.6 | 58.5 | ||||||||
Net income attributable to noncontrolling interest | 1.1 | 0 | 0.1 | ||||||||
Net income attributable to controlling interest | $ 5.9 | $ 60.6 | $ 58.4 |
Discontinued Operations - Asset
Discontinued Operations - Assets and Liabilities Classified as Discontinued Operations (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Assets | ||
Current assets of discontinued operations | $ 116 | $ 151.2 |
Long-term assets of discontinued operations | 270.1 | 273.4 |
Liabilities | ||
Current liabilities of discontinued operations | 60.2 | 71.5 |
Long-term liabilities of discontinued operations | 9.8 | 7.6 |
Discontinued Operations, Held-for-sale | LED Business | ||
Assets | ||
Short-term investments | 12 | 9.4 |
Accounts receivable, net | 41.6 | 59.7 |
Inventories | 57.2 | 75.6 |
Prepaid expenses | 0.1 | 0.1 |
Other current assets | 5.1 | 6.4 |
Current assets of discontinued operations | 116 | 151.2 |
Property and equipment, net | 60.3 | 64.6 |
Goodwill | 180.3 | 180.3 |
Intangible assets, net | 22.7 | 23.8 |
Deferred income taxes | 5.1 | 4.7 |
Other assets | 1.7 | 0 |
Long-term assets of discontinued operations | 270.1 | 273.4 |
Liabilities | ||
Accounts payable and accrued expenses | 31 | 36.4 |
Accrued contract liabilities | 24.1 | 30.7 |
Income tax payable | 2 | 1.7 |
Other current liabilities | 3.1 | 2.7 |
Current liabilities of discontinued operations | 60.2 | 71.5 |
Other long-term liabilities | 9.8 | 7.6 |
Long-term liabilities of discontinued operations | $ 9.8 | $ 7.6 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 25, 2018 |
Revenue from Contract with Customer [Abstract] | |||
Contract liabilities | $ 47.9 | $ 42.4 | $ 11.7 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue from External Customers by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 23, 2018 | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 108.4 | $ 113.9 | $ 120.7 | $ 127.7 | $ 134.2 | $ 141.3 | $ 135.3 | $ 127.4 | $ 470.7 | $ 538.2 | $ 328.6 |
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 171.4 | $ 162.9 | $ 82.9 | ||||||||
Europe | Geographic Concentration Risk | Revenue from Contract with Customer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Revenue | 36.00% | 30.00% | 25.00% | ||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 106.5 | $ 122 | $ 92.4 | ||||||||
United States | Geographic Concentration Risk | Revenue from Contract with Customer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Revenue | 23.00% | 23.00% | 28.00% | ||||||||
China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 65 | $ 116.3 | $ 82.4 | ||||||||
China | Geographic Concentration Risk | Revenue from Contract with Customer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Revenue | 14.00% | 22.00% | 25.00% | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue | $ 127.8 | $ 137 | $ 70.9 | ||||||||
Other | Geographic Concentration Risk | Revenue from Contract with Customer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Revenue | 27.00% | 25.00% | 22.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Millions | 12 Months Ended |
Jun. 28, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | |
Operating lease expense | $ 5.4 |
Short-term lease expense | 0.1 |
Variable lease income | 0.1 |
Finance lease amortization | 0.7 |
Interest expense on finance leases | $ 0.2 |
New York | |
Lessee, Lease, Description [Line Items] | |
Term of finance lease obligation | 49 years |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Leases [Abstract] | ||
Right-of-use asset | $ 12.3 | |
Current lease liability | 4.8 | |
Non-current lease liability | 7.5 | |
Total operating lease liabilities | 12.3 | |
Finance lease assets | 15.4 | |
Current portion of finance lease liabilities | 3.6 | $ 0 |
Finance lease liabilities, less current portion | 11.4 | $ 0 |
Total finance lease liabilities | $ 15 | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent | |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesCurrent | |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent | |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) $ in Millions | 12 Months Ended |
Jun. 28, 2020USD ($) | |
Cash used in operating activities: | |
Cash paid for operating leases | $ 5.5 |
Cash paid for interest portion of financing leases | 0.1 |
Cash used in financing activities: | |
Cash paid for principal portion of finance leases | 0.8 |
Non-cash operating activities: | |
Operating lease additions due to adoption of ASC 842 | 11 |
Operating lease additions and modifications, net | 6.4 |
Finance lease additions | $ 15.7 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) $ in Millions | Jun. 28, 2020USD ($) |
Operating Leases | |
June 27, 2021 | $ 5.3 |
June 26, 2022 | 3.8 |
June 25, 2023 | 1.8 |
June 30, 2024 | 0.9 |
June 29, 2025 | 0.8 |
Thereafter | 0.4 |
Total lease payments | 13 |
Imputed lease interest | (0.7) |
Total lease liabilities | 12.3 |
Finance Leases | |
June 27, 2021 | 3.9 |
June 26, 2022 | 1.7 |
June 25, 2023 | 0.7 |
June 30, 2024 | 0.7 |
June 29, 2025 | 0.7 |
Thereafter | 15.2 |
Total lease payments | 22.9 |
Imputed lease interest | (7.9) |
Total lease liabilities | 15 |
Total | |
June 27, 2021 | 9.2 |
June 26, 2022 | 5.5 |
June 25, 2023 | 2.5 |
June 30, 2024 | 1.6 |
June 29, 2025 | 1.5 |
Thereafter | 15.6 |
Total lease payments | 35.9 |
Imputed lease interest | (8.6) |
Total lease liabilities | $ 27.3 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Terms and Discount Rates (Details) | 12 Months Ended |
Jun. 28, 2020 | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term of operating leases (in months) | 40 months |
Weighted average remaining lease term of finance leases (in months) | 337 months |
Weighted average discount rate of operating leases (as a percent) | 3.52% |
Weighted average discount rate of finance leases (as a percent) | 3.00% |
Weighted average remaining lease term of finance leases excluding 49-year ground lease (in months) | 31 months |
Weighted average discount rate of finance leases excluding 49-year ground lease (as a percent) | 3.51% |
New York | |
Lessee, Lease, Description [Line Items] | |
Term of finance lease obligation | 49 years |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Payments (Details) $ in Millions | Jun. 30, 2019USD ($) |
Leases [Abstract] | |
June 28, 2020 | $ 3.2 |
June 27, 2021 | 2.2 |
June 26, 2022 | 1.2 |
June 25, 2023 | 0.7 |
June 30, 2024 | 0 |
Thereafter | 0 |
Total future minimum rental payments | $ 7.3 |
Acquisition - Narrative (Detail
Acquisition - Narrative (Details) - RF Power $ in Millions | Mar. 06, 2018USD ($) |
Business Acquisition [Line Items] | |
Base purchase price | $ 429.2 |
Cash consideration | 427 |
Additional consideration to purchase property and equipment | $ 2.2 |
Weighted-average useful life of acquired intangible assets | 13 years 9 months 18 days |
Goodwill acquired subject to tax | $ 245 |
Goodwill amortization period | 15 years |
Transaction costs | $ 3.8 |
Acquisition - Purchase Price Al
Acquisition - Purchase Price Allocation (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 | Mar. 06, 2018 |
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | |||
Goodwill | $ 349.7 | $ 349.7 | |
RF Power | |||
Business Combination, Recognized Identifiable Assets Acquired, Goodwill, and Liabilities Assumed, Less Noncontrolling Interest [Abstract] | |||
Inventories | $ 22.5 | ||
Property and equipment | 11.7 | ||
Other receivables | 0.4 | ||
Intangible assets | 149 | ||
Goodwill | 249 | ||
Accrued expenses and liabilities | (3.4) | ||
Net assets acquired | $ 429.2 |
Acquisition - Intangible Assets
Acquisition - Intangible Assets (Details) - RF Power $ in Millions | Mar. 06, 2018USD ($) |
Business Acquisition [Line Items] | |
Asset Amount | $ 149 |
Estimated Life (in years) | 13 years 9 months 18 days |
Lease agreement | |
Business Acquisition [Line Items] | |
Asset Amount | $ 1 |
Estimated Life (in years) | 10 years |
Customer relationships | |
Business Acquisition [Line Items] | |
Asset Amount | $ 92 |
Estimated Life (in years) | 15 years |
Developed technology | |
Business Acquisition [Line Items] | |
Asset Amount | $ 44 |
Estimated Life (in years) | 14 years |
Non-compete agreements | |
Business Acquisition [Line Items] | |
Asset Amount | $ 12 |
Estimated Life (in years) | 4 years |
Acquisition - Results of Acquir
Acquisition - Results of Acquiree since Acquisition Date (Details) - RF Power $ in Millions | 4 Months Ended |
Jun. 24, 2018USD ($) | |
Business Acquisition [Line Items] | |
Revenue | $ 29 |
Net loss from continuing operations | $ (11.7) |
Acquisition - Supplemental Pro
Acquisition - Supplemental Pro Forma Financial Information (Details) - RF Power $ / shares in Units, $ in Millions | 12 Months Ended |
Jun. 24, 2018USD ($)$ / shares | |
Business Acquisition [Line Items] | |
Revenue | $ | $ 394 |
Net loss from continuing operations | $ | $ (79.3) |
Basic loss per share from continuing operations (USD per share) | $ / shares | $ (0.80) |
Diluted loss per share from continuing operations (USD per share) | $ / shares | $ (0.80) |
Financial Statement Details - A
Financial Statement Details - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Gross receivables | $ 73.1 | $ 69.4 |
Allowance for bad debts | (0.7) | (0.2) |
Accounts receivable, net | 72.4 | 69.2 |
Royalties | ||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Gross receivables | 0.4 | 0.6 |
Billed trade receivables | ||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Gross receivables | 71.5 | 68.1 |
Unbilled contract receivables | ||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Gross receivables | $ 1.2 | $ 0.7 |
Financial Statement Details -_2
Financial Statement Details - Activity of Allowance for Bad Debts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 0.2 | ||
Balance at end of period | 0.7 | $ 0.2 | |
Allowance for Bad Debts | |||
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | 0.2 | 0.2 | $ 0.1 |
Current period provision change | 0.6 | 0 | 0.2 |
Write-offs, net of recoveries | (0.1) | 0 | (0.1) |
Balance at end of period | $ 0.7 | $ 0.2 | $ 0.2 |
Financial Statement Details - I
Financial Statement Details - Inventories (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Inventory, Net [Abstract] | ||
Raw material | $ 36.9 | $ 31.5 |
Work-in-progress | 73.9 | 65.3 |
Finished goods | 11.1 | 15 |
Inventories | 121.9 | 111.8 |
Inventory [Line Items] | ||
Inventories | 121.9 | 111.8 |
Operating Segments | Wolfspeed Segment | ||
Inventory, Net [Abstract] | ||
Inventories | 97.3 | 81.6 |
Inventory [Line Items] | ||
Inventories | 97.3 | 81.6 |
Operating Segments | Inventory related to future Wafer Supply Agreement | ||
Inventory, Net [Abstract] | ||
Inventories | 19 | 23.6 |
Inventory [Line Items] | ||
Inventories | 19 | 23.6 |
Unallocated inventories | ||
Inventory, Net [Abstract] | ||
Inventories | 5.6 | 6.6 |
Inventory [Line Items] | ||
Inventories | $ 5.6 | $ 6.6 |
Financial Statement Details - P
Financial Statement Details - Property and Equipment (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 1,670.4 | $ 1,471.7 |
Accumulated depreciation | (899.6) | (911.1) |
Property and equipment, net | 770.8 | 560.6 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 859.9 | 842.3 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 363.1 | 345.2 |
Computer hardware/software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 46.8 | 42 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8.1 | 8.6 |
Leasehold improvements and other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9.7 | 3.8 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 0.6 | 0.7 |
Finance lease asset | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15.4 | 0 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 366.8 | $ 229.1 |
Financial Statement Details - N
Financial Statement Details - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 23, 2018 | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Depreciation of property and equipment | $ 76.7 | $ 64.9 | $ 50.9 | ||||||||
Losses on disposals or impairments of property and equipment | 3.3 | 0.2 | 7.4 | ||||||||
Net loss (income) | $ (38.9) | $ (59.9) | $ (54) | $ (37.8) | $ (135.9) | $ (227.7) | $ (0.4) | $ (11.1) | (190.6) | (375.1) | (279.9) |
AOCI reclassified as non-operating (income) expense | 18.5 | (29.4) | 10.4 | ||||||||
AOCI reclassified as net income (loss) from discontinued operations | $ 5.3 | $ (3.7) | $ 3.9 | $ 1.5 | $ (96.4) | $ (190.6) | $ 19.1 | $ 11.3 | 7 | (256.6) | (205) |
Accrued property and equipment | 79.4 | 20.1 | 13.8 | ||||||||
Reclassification out of Accumulated Other Comprehensive Income | Net Gain on Available for Sale Securities out of AOCI | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
Net loss (income) | 2 | ||||||||||
AOCI reclassified as non-operating (income) expense | 1.5 | $ (0.1) | $ (0.1) | ||||||||
AOCI reclassified as net income (loss) from discontinued operations | 0.5 | ||||||||||
Reclassification out of Accumulated Other Comprehensive Income | Currency Translation Loss out of AOCI | |||||||||||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||||||||||
AOCI reclassified as net income (loss) from discontinued operations | $ 5.2 |
Financial Statement Details -_3
Financial Statement Details - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable, trade | $ 88.1 | $ 68.1 |
Accrued salaries and wages | 42.3 | 65.8 |
Accrued expenses | 55.3 | 28.7 |
Other | 4.1 | 1.9 |
Accounts payable and accrued expenses | $ 189.8 | $ 164.5 |
Financial Statement Details -_4
Financial Statement Details - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Currency translation gain | $ 9.5 | $ 9.5 |
Net unrealized gain on available-for-sale securities | 6.5 | 0 |
Accumulated other comprehensive income, net of taxes | 16 | 9.5 |
Unrealized loss on available-for-sale securities | $ 2.4 | $ 2.4 |
Financial Statement Details - O
Financial Statement Details - Other Operating Expense (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Factory optimization restructuring | $ 8.5 | $ 4.1 | $ 0 |
Severance and other restructuring | 0.6 | 2.8 | 3.8 |
Total restructuring costs | 9.1 | 6.9 | 3.8 |
Project, transformation and transaction costs | 12.2 | 16.9 | 8.5 |
Factory optimization start-up costs | 9.5 | 1.5 | 0 |
Non-restructuring related executive severance | 2.1 | 1.3 | 4.5 |
Other operating expense | $ 32.9 | $ 26.6 | $ 16.8 |
Financial Statement Details -_5
Financial Statement Details - Non-Operating Expense (Income), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
(Gain) loss on sale of investments, net | $ (1.5) | $ 0.1 | $ 0.1 |
(Gain) loss on equity investment | (14.2) | 16.2 | (7.1) |
Gain on partial debt extinguishment | (11) | 0 | 0 |
Gain on arbitration proceedings | (7.9) | 0 | 0 |
Interest income | (16.3) | (13.9) | (9.1) |
Interest expense | 34.9 | 26 | 7.3 |
Foreign currency (gain) loss, net | (2) | 1.3 | (1.8) |
Other, net | (0.5) | (0.3) | 0.2 |
Non-operating (income) expense, net | $ (18.5) | $ 29.4 | $ (10.4) |
Financial Statement Details -_6
Financial Statement Details - Non-cash Operating Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Lease asset and liability additions | $ 28.3 | $ 0 | $ 0 |
Lease asset and liability modifications, net | 4.8 | $ 0 | $ 0 |
Operating lease additions due to adoption of ASC 842 | $ 11 |
Financial Statement Details - T
Financial Statement Details - Tangible Long-lived Assets by Country (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Long-Lived Assets | $ 770.8 | $ 560.6 |
Long Lived Assets Held-for-sale [Line Items] | ||
Long-Lived Assets | 770.8 | 560.6 |
United States | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Long-Lived Assets | 758.2 | 552.4 |
Long Lived Assets Held-for-sale [Line Items] | ||
Long-Lived Assets | 758.2 | 552.4 |
China | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Long-Lived Assets | 2.6 | 2.7 |
Long Lived Assets Held-for-sale [Line Items] | ||
Long-Lived Assets | 2.6 | 2.7 |
Other | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Long-Lived Assets | 10 | 5.5 |
Long Lived Assets Held-for-sale [Line Items] | ||
Long-Lived Assets | $ 10 | $ 5.5 |
Investments - Marketable Invest
Investments - Marketable Investments by Type (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 782 | $ 539 |
Gross Unrealized Gains | 8.9 | 2.6 |
Gross Unrealized Losses | 0 | (0.1) |
Estimated Fair Value | 790.9 | 541.5 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 130 | 78.2 |
Gross Unrealized Gains | 2 | 0.4 |
Gross Unrealized Losses | 0 | (0.1) |
Estimated Fair Value | 132 | 78.5 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 473.8 | 256 |
Gross Unrealized Gains | 6.3 | 1 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 480.1 | 257 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 29.1 | 25.6 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 29.1 | 25.6 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 52.3 | 92.4 |
Gross Unrealized Gains | 0.6 | 0.1 |
Gross Unrealized Losses | 0 | |
Estimated Fair Value | 52.9 | 92.5 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 83.3 | 62.1 |
Gross Unrealized Gains | 0 | 1.1 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 83.3 | 63.2 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 11 | 7.8 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 11 | 7.8 |
Variable rate demand note | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 2.5 | 16.9 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 2.5 | $ 16.9 |
Investments - Investment Securi
Investments - Investment Securities, Aggregated by Investment Type and Length of Time (Details) $ in Millions | Jun. 28, 2020USD ($)security | Jun. 30, 2019USD ($)security |
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of securities in an unrealized loss position for less than 12 months | $ 65.8 | $ 55.8 |
Fair value of securities in an unrealized loss position for greater than 12 months | 0 | 48.4 |
Fair value of securities in an unrealized loss position | 65.8 | 104.2 |
Accumulated unrealized loss of securities in an unrealized loss position for less than 12 months | 0 | 0 |
Accumulated unrealized loss of securities in an unrealized loss position for greater than 12 months | 0 | (0.1) |
Accumulated unrealized loss of securities in an unrealized loss position | $ 0 | $ (0.1) |
Number of securities in an unrealized loss position for less than 12 months | security | 46 | 46 |
Number of securities in an unrealized loss position for greater than 12 months | security | 0 | 47 |
Number of securities in an unrealized loss position | security | 46 | 93 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of securities in an unrealized loss position for less than 12 months | $ 14.3 | $ 4.3 |
Fair value of securities in an unrealized loss position for greater than 12 months | 0 | 29.8 |
Fair value of securities in an unrealized loss position | 14.3 | 34.1 |
Accumulated unrealized loss of securities in an unrealized loss position for less than 12 months | 0 | 0 |
Accumulated unrealized loss of securities in an unrealized loss position for greater than 12 months | 0 | (0.1) |
Accumulated unrealized loss of securities in an unrealized loss position | 0 | (0.1) |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of securities in an unrealized loss position for less than 12 months | 29.1 | 41.8 |
Fair value of securities in an unrealized loss position for greater than 12 months | 0 | 14.7 |
Fair value of securities in an unrealized loss position | 29.1 | 56.5 |
Accumulated unrealized loss of securities in an unrealized loss position for less than 12 months | 0 | 0 |
Accumulated unrealized loss of securities in an unrealized loss position for greater than 12 months | 0 | 0 |
Accumulated unrealized loss of securities in an unrealized loss position | 0 | 0 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of securities in an unrealized loss position for less than 12 months | 8.6 | 7.7 |
Fair value of securities in an unrealized loss position for greater than 12 months | 0 | 0 |
Fair value of securities in an unrealized loss position | 8.6 | 7.7 |
Accumulated unrealized loss of securities in an unrealized loss position for less than 12 months | 0 | 0 |
Accumulated unrealized loss of securities in an unrealized loss position for greater than 12 months | 0 | 0 |
Accumulated unrealized loss of securities in an unrealized loss position | 0 | 0 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Fair value of securities in an unrealized loss position for less than 12 months | 13.8 | 2 |
Fair value of securities in an unrealized loss position for greater than 12 months | 0 | 3.9 |
Fair value of securities in an unrealized loss position | 13.8 | 5.9 |
Accumulated unrealized loss of securities in an unrealized loss position for less than 12 months | 0 | 0 |
Accumulated unrealized loss of securities in an unrealized loss position for greater than 12 months | 0 | 0 |
Accumulated unrealized loss of securities in an unrealized loss position | $ 0 | $ 0 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Investments, Debt and Equity Securities [Abstract] | |||
Realized gain on sale of investments, net | $ (1.5) | $ 0.1 | $ 0.1 |
Investments - Contractual Matur
Investments - Contractual Maturities of Marketable Investments (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | $ 368.1 | |
After One, Within Five Years | 420.3 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 2.5 | |
Total | 790.9 | $ 541.5 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 29.4 | |
After One, Within Five Years | 102.6 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 132 | 78.5 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 191 | |
After One, Within Five Years | 289.1 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 480.1 | 257 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 17.3 | |
After One, Within Five Years | 11.8 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 29.1 | 25.6 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 36.1 | |
After One, Within Five Years | 16.8 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 52.9 | 92.5 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 83.3 | |
After One, Within Five Years | 0 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 83.3 | 63.2 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 11 | |
After One, Within Five Years | 0 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 11 | 7.8 |
Variable rate demand note | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 0 | |
After One, Within Five Years | 0 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 2.5 | |
Total | $ 2.5 | $ 16.9 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | $ 303.9 | $ 238.1 |
Total short-term investments | 790.9 | 541.5 |
Common stock of non-U.S. corporations | 55.9 | 39.5 |
Total assets | 1,150.7 | 819.1 |
Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 132 | 78.5 |
Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 480.1 | 257 |
U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 29.1 | 25.6 |
U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 52.9 | 92.5 |
Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 83.3 | 63.2 |
Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 11 | 7.8 |
Variable rate demand note | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 2.5 | 16.9 |
Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 199.9 | 95 |
Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 15 |
U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 19.6 | 18.8 |
U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 19 | 2.5 |
Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 54.3 | 105.8 |
Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 11.1 | 1 |
Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 218.9 | 97.5 |
Total short-term investments | 52.9 | 92.5 |
Common stock of non-U.S. corporations | 0 | 0 |
Total assets | 271.8 | 190 |
Level 1 | Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 1 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 1 | U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 1 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 52.9 | 92.5 |
Level 1 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 1 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 1 | Variable rate demand note | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 1 | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 199.9 | 95 |
Level 1 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 1 | U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 1 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 19 | 2.5 |
Level 1 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 1 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 85 | 140.6 |
Total short-term investments | 738 | 449 |
Common stock of non-U.S. corporations | 55.9 | 39.5 |
Total assets | 878.9 | 629.1 |
Level 2 | Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 132 | 78.5 |
Level 2 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 480.1 | 257 |
Level 2 | U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 29.1 | 25.6 |
Level 2 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 2 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 83.3 | 63.2 |
Level 2 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 11 | 7.8 |
Level 2 | Variable rate demand note | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 2.5 | 16.9 |
Level 2 | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 2 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 15 |
Level 2 | U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 19.6 | 18.8 |
Level 2 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 2 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 54.3 | 105.8 |
Level 2 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 11.1 | 1 |
Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Total short-term investments | 0 | 0 |
Common stock of non-U.S. corporations | 0 | 0 |
Total assets | 0 | 0 |
Level 3 | Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 3 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 3 | U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 3 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 3 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 3 | Variable rate demand note | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 3 | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 3 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 3 | U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 3 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 3 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Sep. 29, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | $ 349.7 | $ 349.7 | ||
Amortization or impairment of acquisition-related intangibles | 14.5 | 15.6 | $ 7.2 | |
Lease asset and liability additions | 28.3 | 0 | 0 | |
Wolfspeed Segment | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | 349.7 | 349.7 | ||
Inventory related to future Wafer Supply Agreement | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill | 180.3 | 180.3 | ||
Accounting Standards Update 2016-02 | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Lease asset and liability additions | $ 0.9 | |||
Patent and licensing rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | 5.9 | 5.7 | 4.8 | |
Investments in intangible assets | 4.4 | 3.3 | 2.5 | |
Impairment charges related to patent portfolio | $ 1.2 | $ 0.6 | $ 0.5 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 246.3 | $ 255.7 |
Accumulated Amortization | (89.4) | (81.6) |
Finite-lived intangible assets, net | 156.9 | 174.1 |
Acquisition related intangible assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 177 | 178 |
Accumulated Amortization | (48.9) | (34.5) |
Finite-lived intangible assets, net | 128.1 | 143.5 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 96.8 | 96.8 |
Accumulated Amortization | (19) | (12.8) |
Finite-lived intangible assets, net | 77.8 | 84 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 68 | 69 |
Accumulated Amortization | (22.8) | (17.6) |
Finite-lived intangible assets, net | 45.2 | 51.4 |
Non-compete agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 12.2 | 12.2 |
Accumulated Amortization | (7.1) | (4.1) |
Finite-lived intangible assets, net | 5.1 | 8.1 |
Patent and licensing rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 69.3 | 77.7 |
Accumulated Amortization | (40.5) | (47.1) |
Finite-lived intangible assets, net | $ 28.8 | $ 30.6 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
June 27, 2021 | $ 19.3 | |
June 26, 2022 | 17.6 | |
June 25, 2023 | 14.5 | |
June 30, 2024 | 13.3 | |
June 29, 2025 | 12.7 | |
Thereafter | 79.5 | |
Finite-lived intangible assets, net | 156.9 | $ 174.1 |
Acquisition Related Intangibles | ||
Finite-Lived Intangible Assets [Line Items] | ||
June 27, 2021 | 14.5 | |
June 26, 2022 | 13.5 | |
June 25, 2023 | 11 | |
June 30, 2024 | 10.4 | |
June 29, 2025 | 10.4 | |
Thereafter | 68.3 | |
Finite-lived intangible assets, net | 128.1 | $ 143.5 |
Patents | ||
Finite-Lived Intangible Assets [Line Items] | ||
June 27, 2021 | 4.8 | |
June 26, 2022 | 4.1 | |
June 25, 2023 | 3.5 | |
June 30, 2024 | 2.9 | |
June 29, 2025 | 2.3 | |
Thereafter | 11.2 | |
Finite-lived intangible assets, net | $ 28.8 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) | Apr. 21, 2020USD ($)trading_day$ / sharesshares | Aug. 24, 2018USD ($)trading_day$ / sharesshares | Jun. 28, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 24, 2018USD ($) | Mar. 27, 2020USD ($) | Mar. 26, 2020USD ($) |
Convertible Notes | |||||||
Debt Instrument [Line Items] | |||||||
Carrying amount of equity component of convertible debt | $ 228,300,000 | $ 110,600,000 | |||||
Interest expense | 33,000,000 | $ 22,600,000 | $ 0 | ||||
Convertible Notes | Level 2 | |||||||
Debt Instrument [Line Items] | |||||||
Fair value of debt instrument | 1,280,300,000 | ||||||
Convertible Notes | Convertible Notes due September 1, 2023 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 500,000,000 | ||||||
Stated interest rate (as a percent) | 0.875% | ||||||
Aggregate principal amount of conversion feature | $ 75,000,000 | ||||||
Proceeds from long-term debt borrowings | $ 562,100,000 | ||||||
Conversion rate (shares) | shares | 16.6745 | ||||||
Conversion price (USD per share) | $ / shares | $ 59.97 | ||||||
Threshold percentage of stock price trigger (as a percent) | 130.00% | ||||||
Threshold trading days | trading_day | 20 | ||||||
Threshold consecutive trading days | trading_day | 30 | ||||||
Conversion ratio (as a percent) | 1 | ||||||
Period of reported sale price of common stock | 5 days | ||||||
Period of consecutive reported sale price of common stock | 10 days | ||||||
Percentage of product of last reported price (as a percent) | 98.00% | ||||||
Repurchase of aggregate principal amount of debt instrument | 150,200,000 | ||||||
Decrease in accrued interest from repurchase of debt | 200,000 | ||||||
Carrying amount of equity component of convertible debt | 110,600,000 | ||||||
Decrease in carrying amount of equity component of convertible debt | 27,700,000 | ||||||
Effective interest rate (as a percent) | 5.87% | ||||||
Convertible Notes | Convertible Notes due May 1, 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Aggregate principal amount | $ 500,000,000 | ||||||
Stated interest rate (as a percent) | 1.75% | ||||||
Aggregate principal amount of conversion feature | $ 75,000,000 | ||||||
Proceeds from long-term debt borrowings | $ 561,400,000 | ||||||
Conversion rate (shares) | shares | 21.1346 | ||||||
Conversion price (USD per share) | $ / shares | $ 47.32 | ||||||
Threshold percentage of stock price trigger (as a percent) | 130.00% | ||||||
Threshold trading days | trading_day | 20 | ||||||
Threshold consecutive trading days | trading_day | 30 | ||||||
Conversion ratio (as a percent) | 1 | ||||||
Period of reported sale price of common stock | 5 days | ||||||
Period of consecutive reported sale price of common stock | 10 days | ||||||
Percentage of product of last reported price (as a percent) | 98.00% | ||||||
Proceeds from Notes used to repurchase debt | 144,300,000 | ||||||
Carrying amount of equity component of convertible debt | 145,400,000 | ||||||
Effective interest rate (as a percent) | 7.45% | ||||||
Line of Credit | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | 125,000,000 | $ 125,000,000 | $ 250,000,000 | ||||
Minimum required ratio of cash equivalents and marketable securities to outstanding loans and letters of credit obligations | 1.25 | ||||||
Outstanding borrowings | 0 | ||||||
Remaining borrowing capacity | $ 125,000,000 | ||||||
Average interest rate (as a percent) | 0.00% | ||||||
Commitment fee rate (as a percent) | 0.25% |
Long-term Debt - Liability and
Long-term Debt - Liability and Equity Component of Convertible Notes (Details) - Convertible Notes - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Liability Component: | ||
Principal | $ 999.8 | $ 575 |
Unamortized discount and issuance costs | (216) | (105.9) |
Net carrying amount | 783.8 | 469.1 |
Equity Component: | ||
Discount related to value of conversion options | 262.3 | 113.3 |
Partial extinguishment of 2023 Notes | (27.7) | 0 |
Debt issuance costs | (6.3) | (2.7) |
Net carrying amount | $ 228.3 | $ 110.6 |
Long-term Debt - Interest Expen
Long-term Debt - Interest Expense (Details) - USD ($) | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Debt Instrument [Line Items] | |||
Amortization of discount and issuance costs | $ 26,200,000 | $ 18,300,000 | $ 0 |
Convertible Notes | |||
Debt Instrument [Line Items] | |||
Interest expense | 6,800,000 | 4,300,000 | |
Amortization of discount and issuance costs | 26,200,000 | 18,300,000 | |
Total interest expense | $ 33,000,000 | $ 22,600,000 | $ 0 |
Shareholders' Equity - Shares R
Shareholders' Equity - Shares Reserved for Future Issuance (Details) shares in Thousands | Jun. 28, 2020shares |
Class of Stock [Line Items] | |
For exercise of outstanding common stock options (shares) | 983 |
For vesting of outstanding stock units (shares) | 2,932 |
Total common shares reserved (shares) | 38,952 |
Convertible Notes due September 1, 2023 | |
Class of Stock [Line Items] | |
For future issuance upon conversion of Notes (shares) | 12,560 |
Convertible Notes due May 1, 2026 | |
Class of Stock [Line Items] | |
For future issuance upon conversion of Notes (shares) | 16,102 |
2013 Long-Term Incentive Compensation Plan | |
Class of Stock [Line Items] | |
For future issuance (shares) | 5,478 |
Non-Employee Director Stock Compensation and Deferral Program | |
Class of Stock [Line Items] | |
For future issuance (shares) | 48 |
Loss (earnings) Per Share - Sum
Loss (earnings) Per Share - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 23, 2018 | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss from continuing operations | $ (44.2) | $ (56.2) | $ (57.9) | $ (39.3) | $ (39.5) | $ (37.1) | $ (19.5) | $ (22.4) | $ (197.6) | $ (118.5) | $ (74.9) |
Net income (loss) from discontinued operations | 5.3 | (3.7) | 3.9 | 1.5 | (96.4) | (190.6) | 19.1 | 11.3 | 7 | (256.6) | (205) |
Net income from discontinued operations attributable to noncontrolling interest | $ 0.6 | $ 0.2 | $ 0.3 | $ 0 | $ (0.1) | $ 0.1 | $ 0 | $ 0 | 1.1 | 0 | 0.1 |
Net income (loss) from discontinued operations attributable to controlling interest | $ 5.9 | $ (256.6) | $ (205.1) | ||||||||
Weighted average shares - basic and diluted (in thousands) (shares) | 107,935 | 103,576 | 99,530 | ||||||||
(Loss) earnings per share - basic and diluted: | |||||||||||
Continuing operations attributable to controlling interest - basic (USD per share) | $ (1.83) | $ (1.14) | $ (0.75) | ||||||||
Discontinued operations - basic (USD per share) | $ 0.05 | $ (2.48) | $ (2.06) |
Loss (earnings) Per Share - Nar
Loss (earnings) Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive potential common shares excluded from diluted earnings per share calculation (shares) | 5.4 | 9 | 11.3 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jun. 28, 2020USD ($)stockPurchasenumberOfCompensationPlanpurchasePeriod$ / sharesshares | Jun. 30, 2019shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Closing price of common stock (USD per share) | $ / shares | $ 57.74 | |
Stock option grants during period (shares) | 0 | 0 |
Employee Stock Purchase Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock authorized for issuance (shares) | 7,000,000 | |
Stock reserved for future issuance (shares) | 849,000 | |
Maximum contribution of employee's compensation (as a percent) | 15.00% | |
Employee stock plan purchase price of fair value (as a percent) | 15.00% | |
Number of times employees can purchase stock per year | stockPurchase | 2 | |
Duration of participation period | 12 months | |
Number of purchase periods | purchasePeriod | 2 | |
Duration of purchase periods | 6 months | |
Discount from market price, beginning of participation period or purchase date (as a percent) | 15.00% | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost (less than) | $ | $ 0.1 | |
Stock option grants during period (shares) | 0 | |
Restricted Stock Awards and Restricted Stock Units | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Unrecognized compensation cost (less than) | $ | $ 79.5 | |
Unrecognized compensation cost expected to be recognized, weighted average period (in years) | 1 year 11 months 19 days | |
2013 Long-Term Incentive Compensation Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Number of equity-based compensation plans | numberOfCompensationPlan | 1 | |
Stock authorized for issuance (shares) | 15,900,000 | |
Stock reserved for future issuance (shares) | 5,478,000 |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding Option Awards (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
Number of Shares | ||
Granted (shares) | 0 | 0 |
Outstanding at end of period (shares) | 983,000 | |
Stock Options | ||
Number of Shares | ||
Outstanding at beginning of period (shares) | 2,418,000 | |
Granted (shares) | 0 | |
Exercised (shares) | (1,371,000) | |
Forfeited or expired (shares) | (64,000) | |
Outstanding at end of period (shares) | 983,000 | 2,418,000 |
Vested and expected to vest (shares) | 983,000 | |
Exercisable (shares) | 981,000 | |
Weighted Average Exercise Price | ||
Outstanding at beginning of period (USD per share) | $ 39.81 | |
Granted (USD per share) | 0 | |
Exercised (USD per share) | 40.49 | |
Forfeited or expired (USD per share) | 55.37 | |
Outstanding at end of period (USD per share) | 37.88 | $ 39.81 |
Vested and expected to vest (USD per share) | 37.88 | |
Exercisable (USD per share) | $ 37.91 | |
Weighted Average Remaining Contractual Term | ||
Outstanding | 1 year 9 months 7 days | |
Vested and expected to vest | 1 year 9 months 7 days | |
Exercisable | 1 year 9 months 3 days | |
Total Intrinsic Value (in millions of U.S. Dollars) | ||
Outstanding | $ 19.7 | |
Vested and expected to vest | 19.7 | |
Exercisable | $ 19.6 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Outstanding and Exercisable (Details) shares in Thousands | 12 Months Ended |
Jun. 28, 2020$ / sharesshares | |
Options Outstanding | |
Number (shares) | shares | 983 |
Options Exercisable | |
Number (shares) | shares | 981 |
$0.01 to $25.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum (USD per share) | $ 0.01 |
Exercise price range, maximum (USD per share) | $ 25 |
Options Outstanding | |
Number (shares) | shares | 262 |
Weighted Average Remaining Contractual Life (Years) | 3 years 2 months 12 days |
Weighted Average Exercise Price (USD per share) | $ 24.34 |
Options Exercisable | |
Number (shares) | shares | 261 |
Weighted Average Exercise Price (USD per share) | $ 24.34 |
$25.01 to $35.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum (USD per share) | 25.01 |
Exercise price range, maximum (USD per share) | $ 35 |
Options Outstanding | |
Number (shares) | shares | 203 |
Weighted Average Remaining Contractual Life (Years) | 2 years 3 months 18 days |
Weighted Average Exercise Price (USD per share) | $ 26.59 |
Options Exercisable | |
Number (shares) | shares | 202 |
Weighted Average Exercise Price (USD per share) | $ 26.59 |
$35.01 to $45.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum (USD per share) | 35.01 |
Exercise price range, maximum (USD per share) | $ 45 |
Options Outstanding | |
Number (shares) | shares | 6 |
Weighted Average Remaining Contractual Life (Years) | 1 year 4 months 24 days |
Weighted Average Exercise Price (USD per share) | $ 38.50 |
Options Exercisable | |
Number (shares) | shares | 6 |
Weighted Average Exercise Price (USD per share) | $ 38.50 |
$45.01 to $55.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum (USD per share) | 45.01 |
Exercise price range, maximum (USD per share) | $ 55 |
Options Outstanding | |
Number (shares) | shares | 468 |
Weighted Average Remaining Contractual Life (Years) | 10 months 24 days |
Weighted Average Exercise Price (USD per share) | $ 48.12 |
Options Exercisable | |
Number (shares) | shares | 468 |
Weighted Average Exercise Price (USD per share) | $ 48.12 |
$55.01 to $73.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum (USD per share) | 55.01 |
Exercise price range, maximum (USD per share) | $ 73 |
Options Outstanding | |
Number (shares) | shares | 44 |
Weighted Average Remaining Contractual Life (Years) | 6 months |
Weighted Average Exercise Price (USD per share) | $ 61.93 |
Options Exercisable | |
Number (shares) | shares | 44 |
Weighted Average Exercise Price (USD per share) | $ 61.93 |
Stock-Based Compensation - Othe
Stock-Based Compensation - Other Information Pertaining to Stock-Based Awards of Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Weighted average grant date fair value per share of options (USD per share) | $ 0 | $ 0 | $ 8.02 |
Total intrinsic value of options exercised (in millions of U.S. Dollars) | $ 22.8 | $ 63.3 | $ 24.3 |
Stock-Based Compensation - Nonv
Stock-Based Compensation - Nonvested Shares of Restricted Stock Awards and Restricted Stock Units Outstanding (Details) shares in Thousands | 12 Months Ended |
Jun. 28, 2020$ / sharesshares | |
Number of RSAs/RSUs | |
Nonvested at end of period (shares) | 2,932 |
Restricted Stock Awards and Restricted Stock Units | |
Number of RSAs/RSUs | |
Nonvested at beginning of period (shares) | 3,081 |
Granted (shares) | 1,206 |
Vested (shares) | (1,138) |
Forfeited (shares) | (217) |
Nonvested at end of period (shares) | 2,932 |
Weighted Average Grant-Date Fair Value | |
Nonvested at beginning of period (USD per share) | $ / shares | $ 34.99 |
Granted (USD per share) | $ / shares | 53.14 |
Vested (USD per share) | $ / shares | 30.77 |
Forfeited (USD per share) | $ / shares | 37.72 |
Nonvested at end of period (USD per share) | $ / shares | $ 43.89 |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 48.8 | $ 42.9 | $ 33 |
Cost of revenue, net | |||
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 10 | 7.8 | 5.8 |
Research and development | |||
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 8 | 6.2 | 5.9 |
Sales, general and administrative | |||
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 30.8 | $ 28.9 | $ 21.3 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions Utilized to Value Stock Option Grants (Details) | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Employee Stock Purchase Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (as a percent) | 0.12% | 2.39% | 0.89% |
Expected life, in years | 6 months | 6 months | 6 months |
Volatility (as a percent) | 34.50% | 34.50% | 34.50% |
Employee Stock Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (as a percent) | 2.67% | 2.67% | 2.26% |
Expected life, in years | 1 year | 1 year | 1 year |
Volatility (as a percent) | 82.60% | 39.60% | 40.20% |
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (as a percent) | 1.75% | ||
Expected life, in years | 4 years | ||
Volatility (as a percent) | 38.60% | ||
Dividend yield (as a percent) | 0.00% | ||
Performance Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (as a percent) | 2.68% | ||
Expected life, in years | 3 years | 3 years | |
Average volatility of peer companies (as a percent) | 46.80% | 46.40% | |
Average correlation coefficient of peer companies | 0.34 | 0.34 | |
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Performance Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (as a percent) | 0.28% | 1.44% | |
Expected life, in years | 2 years 9 months 18 days | ||
Average volatility of peer companies (as a percent) | 48.90% | ||
Average correlation coefficient of peer companies | 0.36 | ||
Performance Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (as a percent) | 1.66% | 1.59% | |
Expected life, in years | 3 years | ||
Average volatility of peer companies (as a percent) | 55.20% | ||
Average correlation coefficient of peer companies | 0.45 |
Income Taxes - Components of In
Income Taxes - Components of Income from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (210.3) | $ (92.2) | $ (107.6) |
Foreign | 4.7 | (30.7) | (2.5) |
Loss before income taxes | $ (205.6) | $ (122.9) | $ (110.1) |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Current: | |||
Federal | $ (7.3) | $ 1.4 | $ 13.7 |
Foreign | 0.2 | 0.5 | 3.6 |
State | 0.1 | 0.3 | 0.3 |
Total current | (7) | 2.2 | 17.6 |
Deferred: | |||
Federal | 1.8 | (1.9) | (46.1) |
Foreign | (2.8) | (4.5) | (3.6) |
State | 0 | (0.2) | (3.1) |
Total deferred | (1) | (6.6) | (52.8) |
Income tax benefit | $ (8) | $ (4.4) | $ (35.2) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate and Amount Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Federal income tax provision at statutory rate | $ (43.2) | $ (25.8) | $ (31.1) |
State tax provision, net of federal benefit | (1.9) | (2) | (6.2) |
Tax exempt interest | (0.5) | (0.4) | (1.2) |
48C investment tax credit | 0 | 0 | (1.5) |
(Decrease) increase in tax reserve | (0.3) | 0.5 | 0.1 |
Research and development credits | (3.3) | (2.8) | (1.1) |
Foreign tax credit | (0.3) | (0.4) | (39.2) |
Increase (decrease) in valuation allowance | 50.3 | 4.3 | (29.4) |
Partial extinguishment of convertible notes | (6) | 0 | 0 |
Stock-based compensation | 2.1 | 0.7 | 8.3 |
Statutory rate differences | 1.2 | 6 | (2) |
Foreign earnings taxed in U.S. | 0.3 | 0.4 | 51.9 |
Foreign currency fluctuations | 0 | 0 | (0.3) |
Other foreign adjustments | 0.3 | (0.1) | (0.1) |
Net operating loss carryback | (7.2) | 0 | (0.1) |
Provision to return adjustments | (1.3) | 11.8 | 0 |
Tax on distributable foreign earnings | 0 | 0 | 4 |
Impact of rate changes | 0.8 | 2.7 | 11.2 |
Expiration of state credits | 0.9 | 1.2 | 1.3 |
Other | 0.1 | (0.5) | 0.2 |
Income tax benefit | $ (8) | $ (4.4) | $ (35.2) |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal income tax provision at statutory rate | 21.00% | 21.00% | 28.00% |
State tax provision, net of federal benefit | 1.00% | 2.00% | 6.00% |
Tax exempt interest | 0.00% | 0.00% | 1.00% |
48C investment tax credit | 0.00% | 0.00% | 1.00% |
(Decrease) increase in tax reserve | 0.00% | 0.00% | 0.00% |
Research and development credits | 2.00% | 2.00% | 1.00% |
Foreign tax credit | 0.00% | 0.00% | 36.00% |
Increase (decrease) in valuation allowance | (25.00%) | (4.00%) | 27.00% |
Partial extinguishment of convertible notes | 3.00% | 0.00% | 0.00% |
Stock-based compensation | (1.00%) | (1.00%) | (8.00%) |
Statutory rate differences | (1.00%) | (5.00%) | 2.00% |
Foreign earnings taxed in U.S. | 0.00% | 0.00% | (47.00%) |
Foreign currency fluctuations | 0.00% | 0.00% | 0.00% |
Other foreign adjustments | 0.00% | 0.00% | 0.00% |
Net operating loss carryback | 4.00% | 0.00% | 0.00% |
Provision to return adjustments | 1.00% | (10.00%) | 0.00% |
Tax on distributable foreign earnings | 0.00% | 0.00% | (4.00%) |
Impact of rate changes | 0.00% | (2.00%) | (10.00%) |
Expiration of state credits | 0.00% | (1.00%) | (1.00%) |
Other | 0.00% | 0.00% | 0.00% |
Income tax benefit | 4.00% | 4.00% | 32.00% |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Deferred tax assets: | ||
Compensation | $ 4.4 | $ 9.6 |
Inventories | 7.9 | 3.8 |
Sales return reserve and allowance for bad debts | 2.6 | 3.2 |
Federal and state net operating loss carryforwards | 180.1 | 137.1 |
Federal credits | 30.3 | 20 |
State credits | 1.9 | 2.9 |
48C investment tax credits | 37.5 | 25.9 |
Stock-based compensation | 8.3 | 11.3 |
Deferred revenue | 23.1 | 22.6 |
Lease liabilities | 6.5 | 0 |
Other | 5 | 4.5 |
Total gross deferred assets | 307.6 | 240.9 |
Less valuation allowance | (208.5) | (185.2) |
Deferred tax assets, net | 99.1 | 55.7 |
Deferred tax liabilities: | ||
Property and equipment | (27.8) | (13.9) |
Intangible assets | (19.2) | (16.9) |
Investments | (1.6) | (0.9) |
Prepaid taxes and other | (0.7) | 0 |
Foreign earnings recapture | (2) | (2) |
Taxes on unremitted foreign earnings | 0 | (2.4) |
Lease assets | (6.3) | 0 |
Convertible notes | (42.1) | (20.7) |
Total gross deferred liability | (99.7) | (56.8) |
Deferred tax liability, net | $ (0.6) | $ (1.1) |
Income Taxes - Components Givin
Income Taxes - Components Giving Rise to Net Deferred Tax Assets (Liabilities) included in Accompanying Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Jun. 28, 2020 | Jun. 30, 2019 |
Operating Loss Carryforwards [Line Items] | ||
Assets | $ 1.2 | $ 0.9 |
Liabilities | (1.8) | (2) |
U.S. federal income taxes | ||
Operating Loss Carryforwards [Line Items] | ||
Assets | 0 | 0 |
Liabilities | (1.8) | 0 |
Foreign income taxes | ||
Operating Loss Carryforwards [Line Items] | ||
Assets | 1.2 | 0.9 |
Liabilities | $ 0 | $ (2) |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance of deferred tax assets | $ 208.5 | $ 185.2 | ||
Foreign net operating loss carryforward | 16.4 | |||
Federal net operating loss carryforward | 795.9 | |||
State net operating loss carryforwards | 235 | |||
Unrecognized tax benefits | 7.4 | 8.2 | $ 8.6 | $ 13.3 |
Increase (decrease) in unrecognized tax benefits | (0.8) | |||
Estimated change in gross unrecognized tax benefits | 0.3 | |||
Interest and penalties expense related to unrecognized tax benefits (less than) | 0.1 | |||
Interest and penalties accrued related to unrecognized tax benefits (less than) | 0.1 | |||
Undistributed earnings of foreign subsidiaries | 63.2 | |||
Undistributed earnings of foreign subsidiaries expected to be repatriated | 56.1 | |||
Undistributed foreign earnings on which income taxes have not been provided | 7.1 | |||
Income tax expense (benefit) if foreign earnings are repatriated | 0.4 | |||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Increase (decrease) in valuation allowance of operating loss carryforward | 27.6 | |||
Valuation allowance of deferred tax assets | 177.6 | |||
Tax credit carryforward | 67.8 | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Increase (decrease) in valuation allowance of operating loss carryforward | 4.3 | |||
Valuation allowance of deferred tax assets | $ 7.6 | |||
Valuation allowance of net operating loss carryforwards | 13.4 | |||
Net operating loss carryforward not subject to expiration | 6.3 | |||
Net operating loss carryforward subject to expiration | 10.1 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | $ 2.5 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Change in Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Reconciliation of Changes in Uncertain Tax Positions [Roll Forward] | |||
Balance at beginning of period | $ 8.2 | $ 8.6 | $ 13.3 |
Decrease related to current year change in law | 0 | 0 | (4.7) |
Increases related to prior year tax positions | 0 | 0.5 | 0.6 |
Decreases related to prior year tax positions | 0 | 0 | (0.1) |
Settlements with tax authorities | (0.1) | 0 | (0.1) |
Expiration of statute of limitations for assessment of taxes | (0.7) | (0.9) | (0.4) |
Balance at end of period | $ 7.4 | $ 8.2 | $ 8.6 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 3 Months Ended |
Jun. 28, 2020USD ($)endowedFacultyChair | |
Loss Contingencies [Line Items] | |
Loss contingency accrual | $ 300,000 |
GDA term | 13 years |
Duration of annual commitment fee payment of GDA | 6 years |
Number of endowed faculty chairs created | endowedFacultyChair | 2 |
Minimum | |
Loss Contingencies [Line Items] | |
Annual cost of GDA | $ 1,000,000 |
Maximum | |
Loss Contingencies [Line Items] | |
Potential total grant amount of GDA | 500,000,000 |
Annual cost of GDA | $ 5,200,000 |
Concentrations of Risk - Narrat
Concentrations of Risk - Narrative (Details) - Customer Concentration Risk | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
STMicroelectronics | Revenue from Contract with Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 19.00% | 11.00% | |
STMicroelectronics | Accounts Receivable Benchmark | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 14.00% | ||
Sumitomo | Revenue from Contract with Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 14.00% | 14.00% | 11.00% |
Arrow Electronics, Inc. | Revenue from Contract with Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 14.00% | ||
Allied Group Hong Kong Limited | Revenue from Contract with Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 11.00% | ||
Infineon | Accounts Receivable Benchmark | |||
Concentration Risk [Line Items] | |||
Concentration risk (as a percent) | 11.00% |
Retirement Savings Plan - Narra
Retirement Savings Plan - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jun. 28, 2020USD ($)numberOfCompensationPlan | Jun. 30, 2019USD ($) | Jun. 24, 2018USD ($) | |
Retirement Benefits [Abstract] | |||
Number of employee benefit plans | numberOfCompensationPlan | 1 | ||
Employer discretionary contribution amount | $ | $ 7.7 | $ 7.3 | $ 5.2 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 9.1 | $ 6.9 | $ 3.8 | |
Corporate Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2.6 | $ 3.8 | ||
Factory Optimization Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 9 | 4.1 | ||
Restructuring charges expected to be incurred | 70 | |||
Restructuring costs accrued | $ 0 | 0.3 | $ 0 | |
Sales Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 0.2 | |||
Restructuring charges expected to be incurred | 0 | |||
Sales Representatives Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.6 | |||
Restructuring costs accrued | $ 0.1 |
Subsequent Events - Narrative (
Subsequent Events - Narrative (Details) - Subsequent Event - LED Business - USD ($) $ in Millions | Dec. 27, 2020 | Sep. 27, 2020 |
Subsequent Event [Line Items] | ||
Goodwill impairment | $ 6.9 | $ 105.7 |
Disposal Group, Including Discontinued Operation, Assets Held For Sale Impairment | $ 19.5 |
Quarterly Results of Operatio_3
Quarterly Results of Operations - Unaudited - Summary (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 30, 2018 | Sep. 23, 2018 | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue, net | $ 108.4 | $ 113.9 | $ 120.7 | $ 127.7 | $ 134.2 | $ 141.3 | $ 135.3 | $ 127.4 | $ 470.7 | $ 538.2 | $ 328.6 |
Cost of revenue, net | 79.3 | 72.6 | 85.1 | 75.2 | 72.6 | 77.3 | 74.5 | 70.1 | 312.2 | 294.5 | 183.6 |
Gross profit | 29.1 | 41.3 | 35.6 | 52.5 | 61.6 | 64 | 60.8 | 57.3 | 158.5 | 243.7 | 145 |
Net loss from continuing operations | (44.2) | (56.2) | (57.9) | (39.3) | (39.5) | (37.1) | (19.5) | (22.4) | (197.6) | (118.5) | (74.9) |
Net income (loss) from discontinued operations | 5.3 | (3.7) | 3.9 | 1.5 | (96.4) | (190.6) | 19.1 | 11.3 | 7 | (256.6) | (205) |
Net loss | (38.9) | (59.9) | (54) | (37.8) | (135.9) | (227.7) | (0.4) | (11.1) | (190.6) | (375.1) | (279.9) |
Net income from discontinued operations attributable to noncontrolling interest | 0.6 | 0.2 | 0.3 | 0 | (0.1) | 0.1 | 0 | 0 | 1.1 | 0 | 0.1 |
Net loss attributable to controlling interest | $ (39.5) | $ (60.1) | $ (54.3) | $ (37.8) | $ (135.8) | $ (227.8) | $ (0.4) | $ (11.1) | $ (191.7) | $ (375.1) | $ (280) |
Basic and diluted loss per share | |||||||||||
Continuing operations attributable to controlling interest - basic and diluted (USD per share) | $ (0.41) | $ (0.52) | $ (0.54) | $ (0.37) | $ (0.37) | $ (0.36) | $ (0.19) | $ (0.22) | $ (1.83) | $ (1.14) | $ (0.75) |
Net loss attributable to controlling interest - basic and diluted (USD per share) | $ (0.36) | $ (0.56) | $ (0.50) | $ (0.35) | $ (1.28) | $ (2.20) | $ 0 | $ (0.11) | $ (1.78) | $ (3.62) | $ (2.81) |