Cover Page
Cover Page - shares | 6 Months Ended | |
Dec. 25, 2022 | Jan. 20, 2023 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Dec. 25, 2022 | |
Document Transition Report | false | |
Entity File Number | 001-40863 | |
Entity Registrant Name | WOLFSPEED, 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, $0.00125 par value | |
Trading Symbol | WOLF | |
Security Exchange Name | NYSE | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 124,416,688 | |
Entity Central Index Key | 0000895419 | |
Current Fiscal Year End Date | --06-25 | |
Document Fiscal Year Focus | 2023 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
UNAUDITED CONSOLIDATED BALANCE
UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Dec. 25, 2022 | Jun. 26, 2022 |
Current assets: | ||
Cash and cash equivalents | $ 1,085.1 | $ 449.5 |
Short-term investments | 1,399.3 | 749.3 |
Total cash, cash equivalents and short-term investments | 2,484.4 | 1,198.8 |
Accounts receivable, net | 169.3 | 150.2 |
Inventories | 266.6 | 227 |
Income taxes receivable | 1 | 1.3 |
Prepaid expenses | 28 | 32.1 |
Other current assets | 133.4 | 151.4 |
Current assets held for sale | 1.6 | 1.6 |
Total current assets | 3,084.3 | 1,762.4 |
Property and equipment, net | 1,649.6 | 1,481.1 |
Goodwill | 359.2 | 359.2 |
Intangible assets, net | 120 | 125.4 |
Long-term receivables | 2.9 | 104.7 |
Deferred tax assets | 1 | 1 |
Other assets | 125.9 | 83.7 |
Total assets | 5,342.9 | 3,917.5 |
Current liabilities: | ||
Accounts payable and accrued expenses | 389.1 | 307.7 |
Accrued contract liabilities | 34.8 | 37 |
Income taxes payable | 9.4 | 11.6 |
Finance lease liabilities | 0.5 | 0.5 |
Other current liabilities | 26.2 | 31.7 |
Total current liabilities | 460 | 388.5 |
Long-term liabilities: | ||
Convertible notes, net | 3,021 | 1,021.6 |
Deferred tax liabilities | 3.5 | 3.2 |
Finance lease liabilities - long-term | 9.4 | 9.6 |
Other long-term liabilities | 68.8 | 55.3 |
Total long-term liabilities | 3,102.7 | 1,089.7 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, par value $0.01; 3,000 shares authorized at December 25, 2022 and June 26, 2022; none issued and outstanding | 0 | 0 |
Common stock, par value $0.00125; 200,000 shares authorized at December 25, 2022 and June 26, 2022; 124,413 and 123,795 shares issued and outstanding at December 25, 2022 and June 26, 2022, respectively | 0.2 | 0.2 |
Additional paid-in-capital | 3,660 | 4,228.4 |
Accumulated other comprehensive loss | (28.6) | (25.3) |
Accumulated deficit | (1,851.4) | (1,764) |
Total shareholders’ equity | 1,780.2 | 2,439.3 |
Total liabilities and shareholders’ equity | $ 5,342.9 | $ 3,917.5 |
UNAUDITED CONSOLIDATED BALANC_2
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Dec. 25, 2022 | Jun. 26, 2022 |
Shareholders’ equity: | ||
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 (in shares) | 124,413,000 | 123,795,000 |
Common stock outstanding (shares) | 124,413,000 | 123,795,000 |
UNAUDITED CONSOLIDATED STATEMEN
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 25, 2022 | Dec. 26, 2021 | |
Income Statement [Abstract] | ||||
Revenue, net | $ 216.1 | $ 173.1 | $ 457.4 | $ 329.7 |
Cost of revenue, net | 149.2 | 116.1 | 310.6 | 223.3 |
Gross profit | 66.9 | 57 | 146.8 | 106.4 |
Operating expenses: | ||||
Research and development | 57 | 50.2 | 112.2 | 100.1 |
Sales, general and administrative | 55.7 | 48 | 110.7 | 97 |
Amortization or impairment of acquisition-related intangibles | 2.8 | 3.6 | 5.7 | 7.2 |
Loss on disposal or impairment of other assets | 0.1 | 0.5 | 0.2 | 0.3 |
Other operating expense | 42.6 | 15.6 | 85 | 28.4 |
Operating loss | (91.3) | (60.9) | (167) | (126.6) |
Non-operating (income) expense, net | (0.8) | 27.8 | (50.5) | 31.9 |
Loss before income taxes | (90.5) | (88.7) | (116.5) | (158.5) |
Income tax expense | 0.4 | 8 | 0.6 | 8.3 |
Net loss | $ (90.9) | $ (96.7) | $ (117.1) | $ (166.8) |
Basic and diluted loss per share | ||||
Net loss, basic (USD per share) | $ (0.73) | $ (0.82) | $ (0.94) | $ (1.42) |
Net loss, diluted (USD per share) | $ (0.73) | $ (0.82) | $ (0.94) | $ (1.42) |
Weighted average shares - basic (shares) | 124,344 | 117,218 | 124,190 | 117,068 |
Weighted average shares - diluted (shares) | 124,344 | 117,218 | 124,190 | 117,068 |
UNAUDITED CONSOLIDATED STATEM_2
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Dec. 25, 2022 | Sep. 25, 2022 | Dec. 26, 2021 | Sep. 26, 2021 | Dec. 25, 2022 | Dec. 26, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||||
Net loss | $ (90.9) | $ (26.2) | $ (96.7) | $ (70.1) | $ (117.1) | $ (166.8) |
Other comprehensive loss: | ||||||
Net unrealized gain (loss) on available-for-sale securities | 3.7 | (7) | (3.6) | (0.8) | (3.3) | (4.4) |
Comprehensive loss | $ (87.2) | $ (33.2) | $ (100.3) | $ (70.9) | $ (120.4) | $ (171.2) |
UNAUDITED CONSOLIDATED STATEM_3
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) $ in Millions | Total | Cumulative Effect, Period of Adoption, Adjustment | Common Stock | Additional Paid-in Capital | Additional Paid-in Capital Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | Accumulated Deficit Cumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income |
Balance at beginning of period (in shares) at Jun. 27, 2021 | 115,691,000 | |||||||
Balance at beginning of period at Jun. 27, 2021 | $ 2,116.5 | $ 0.1 | $ 3,676.8 | $ (1,563.1) | $ 2.7 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (70.1) | (70.1) | ||||||
Unrealized loss on available-for-sale securities | (0.8) | (0.8) | ||||||
Comprehensive loss | (70.9) | |||||||
Tax withholding on vested equity awards | (22.5) | (22.5) | ||||||
Stock-based compensation | 15.6 | 15.6 | ||||||
Exercise of stock options and issuance of shares (in shares) | 495,000 | |||||||
Exercise of stock options and issuance of shares | 0.7 | 0.7 | ||||||
Balance at end of period (in shares) at Sep. 26, 2021 | 116,186,000 | |||||||
Balance at end of period at Sep. 26, 2021 | 2,039.4 | $ 0.1 | 3,670.6 | (1,633.2) | 1.9 | |||
Balance at beginning of period (in shares) at Jun. 27, 2021 | 115,691,000 | |||||||
Balance at beginning of period at Jun. 27, 2021 | 2,116.5 | $ 0.1 | 3,676.8 | (1,563.1) | 2.7 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (166.8) | |||||||
Unrealized loss on available-for-sale securities | (4.4) | |||||||
Comprehensive loss | (171.2) | |||||||
Balance at end of period (in shares) at Dec. 26, 2021 | 123,570,000 | |||||||
Balance at end of period at Dec. 26, 2021 | 2,378.9 | $ 0.2 | 4,110.3 | (1,729.9) | (1.7) | |||
Balance at beginning of period (in shares) at Jun. 27, 2021 | 115,691,000 | |||||||
Balance at beginning of period at Jun. 27, 2021 | $ 2,116.5 | $ 0.1 | 3,676.8 | (1,563.1) | 2.7 | |||
Balance at end of period (in shares) at Jun. 26, 2022 | 123,795,000 | 123,795,000 | ||||||
Balance at end of period at Jun. 26, 2022 | $ 2,439.3 | $ (303.3) | $ 0.2 | 4,228.4 | $ (333) | (1,764) | $ 29.7 | (25.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Adoption of ASU 2020-06 [Extensible Enumeration] | Adoption of ASU 2020-06 | |||||||
Balance at beginning of period (in shares) at Sep. 26, 2021 | 116,186,000 | |||||||
Balance at beginning of period at Sep. 26, 2021 | $ 2,039.4 | $ 0.1 | 3,670.6 | (1,633.2) | 1.9 | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (96.7) | (96.7) | ||||||
Unrealized loss on available-for-sale securities | (3.6) | (3.6) | ||||||
Comprehensive loss | (100.3) | |||||||
Tax withholding on vested equity awards | (2.8) | (2.8) | ||||||
Stock-based compensation | 15.7 | 15.7 | ||||||
Exercise of stock options and issuance of shares (in shares) | 258,000 | |||||||
Exercise of stock options and issuance of shares | 10.7 | 10.7 | ||||||
Issuance of shares related to the extinguishment of convertible notes due September 1, 2023 (in shares) | 7,126,000 | |||||||
Issuance of shares related to the extinguishment of convertible notes due September 1, 2023 | 416.2 | $ 0.1 | 416.1 | |||||
Balance at end of period (in shares) at Dec. 26, 2021 | 123,570,000 | |||||||
Balance at end of period at Dec. 26, 2021 | $ 2,378.9 | $ 0.2 | 4,110.3 | (1,729.9) | (1.7) | |||
Balance at beginning of period (in shares) at Jun. 26, 2022 | 123,795,000 | 123,795,000 | ||||||
Balance at beginning of period at Jun. 26, 2022 | $ 2,439.3 | (303.3) | $ 0.2 | 4,228.4 | (333) | (1,764) | 29.7 | (25.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (26.2) | (26.2) | ||||||
Unrealized loss on available-for-sale securities | (7) | (7) | ||||||
Comprehensive loss | (33.2) | |||||||
Tax withholding on vested equity awards | (16.9) | (16.9) | ||||||
Stock-based compensation | 23.2 | 23.2 | ||||||
Exercise of stock options and issuance of shares (in shares) | 415,000 | |||||||
Exercise of stock options and issuance of shares | 0.5 | 0.5 | ||||||
Balance at end of period (in shares) at Sep. 25, 2022 | 124,210,000 | |||||||
Balance at end of period at Sep. 25, 2022 | $ 2,109.6 | $ 0.2 | 3,902.2 | (1,760.5) | (32.3) | |||
Balance at beginning of period (in shares) at Jun. 26, 2022 | 123,795,000 | 123,795,000 | ||||||
Balance at beginning of period at Jun. 26, 2022 | $ 2,439.3 | $ (303.3) | $ 0.2 | 4,228.4 | $ (333) | (1,764) | $ 29.7 | (25.3) |
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (117.1) | |||||||
Unrealized loss on available-for-sale securities | (3.3) | |||||||
Comprehensive loss | $ (120.4) | |||||||
Balance at end of period (in shares) at Dec. 25, 2022 | 124,413,000 | 124,413,000 | ||||||
Balance at end of period at Dec. 25, 2022 | $ 1,780.2 | $ 0.2 | 3,660 | (1,851.4) | (28.6) | |||
Balance at beginning of period (in shares) at Sep. 25, 2022 | 124,210,000 | |||||||
Balance at beginning of period at Sep. 25, 2022 | 2,109.6 | $ 0.2 | 3,902.2 | (1,760.5) | (32.3) | |||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||
Net loss | (90.9) | (90.9) | ||||||
Unrealized loss on available-for-sale securities | 3.7 | 3.7 | ||||||
Comprehensive loss | (87.2) | |||||||
Tax withholding on vested equity awards | (0.4) | (0.4) | ||||||
Stock-based compensation | 21.4 | 21.4 | ||||||
Exercise of stock options and issuance of shares (in shares) | 203,000 | |||||||
Exercise of stock options and issuance of shares | 10.7 | 10.7 | ||||||
Capped call transactions related to the issuance of convertible notes due December 1, 2029 | $ (273.9) | (273.9) | ||||||
Balance at end of period (in shares) at Dec. 25, 2022 | 124,413,000 | 124,413,000 | ||||||
Balance at end of period at Dec. 25, 2022 | $ 1,780.2 | $ 0.2 | $ 3,660 | $ (1,851.4) | $ (28.6) |
UNAUDITED CONSOLIDATED STATEM_4
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | 21 Months Ended | ||||
Dec. 25, 2022 | Sep. 25, 2022 | Dec. 26, 2021 | Sep. 26, 2021 | Dec. 25, 2022 | Dec. 26, 2021 | Dec. 25, 2022 | |
Operating activities: | |||||||
Net loss | $ (90.9) | $ (26.2) | $ (96.7) | $ (70.1) | $ (117.1) | $ (166.8) | |
Adjustments to reconcile net loss to cash used in operating activities: | |||||||
Depreciation and amortization | 77.1 | 67.5 | |||||
Amortization of debt issuance costs and discount, net of non-cash capitalized interest | 2.9 | 9 | |||||
Loss on extinguishment of debt | 0 | 24.8 | 0 | 24.8 | |||
Stock-based compensation | 43.2 | 30 | |||||
Loss on disposal or impairment of long-lived assets, including loss on disposal portion of factory optimization and start-up costs | 2 | 1.6 | |||||
Amortization of premium/discount on investments | 2.2 | 3.2 | |||||
Realized gain on sale of investments | 0 | (0.1) | 0 | (0.3) | |||
Deferred income taxes | 0.3 | 0.4 | |||||
Changes in operating assets and liabilities: | |||||||
Accounts receivable, net | (19.1) | (14.1) | |||||
Inventories | (38.2) | (41) | |||||
Prepaid expenses and other assets | (1.8) | (5.7) | |||||
Accounts payable, trade | 4.2 | 2.8 | |||||
Accrued salaries and wages and other liabilities | (33.2) | (13.3) | |||||
Accrued contract liabilities | (2.2) | 6.9 | |||||
Cash used in operating activities | (79.7) | (95) | |||||
Investing activities: | |||||||
Purchases of property and equipment | (237.8) | (401.6) | |||||
Purchases of patent and licensing rights | (2.9) | (2.6) | |||||
Proceeds from sale of property and equipment, including insurance proceeds | 1.7 | 2.7 | |||||
Purchases of short-term investments | (814.1) | (29.8) | |||||
Proceeds from maturities of short-term investments | 115.5 | 107.8 | |||||
Proceeds from sale of short-term investments | 43.1 | 189.2 | |||||
Reimbursement of property and equipment purchases from long-term incentive agreement | 70.7 | 50.8 | $ 220.4 | ||||
Proceeds from sale of business resulting from the receipt of transaction related note receivable | 101.8 | 0 | |||||
Cash used in investing activities | (722) | (83.5) | |||||
Financing activities: | |||||||
Proceeds from long-term debt borrowings | 0 | 20 | |||||
Payments on long-term debt borrowings, including finance lease obligations | (0.3) | (20.2) | |||||
Proceeds from issuance of common stock | 11.2 | 11.5 | |||||
Tax withholding on vested equity awards | (17.3) | (25.3) | |||||
Proceeds from convertible notes | 1,750 | 0 | |||||
Payments of debt issuance costs | (31.4) | 0 | |||||
Cash paid for capped call transactions | (273.9) | 0 | |||||
Commitment fees on long-term incentive agreement | (1) | (1) | |||||
Cash provided by (used in) financing activities | 1,437.3 | (15) | |||||
Effects of foreign exchange changes on cash and cash equivalents | 0 | (0.1) | |||||
Net change in cash and cash equivalents | 635.6 | (193.6) | |||||
Cash and cash equivalents, beginning of period | $ 449.5 | $ 379 | 449.5 | 379 | |||
Cash and cash equivalents, end of period | $ 1,085.1 | $ 185.4 | $ 1,085.1 | $ 185.4 | $ 1,085.1 |
Basis of Presentation and New A
Basis of Presentation and New Accounting Standards | 6 Months Ended |
Dec. 25, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and New Accounting Standards | Basis of Presentation and New Accounting Standards Overview Wolfspeed, 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 product families include Silicon Carbide and GaN materials, power devices and RF devices targeted for various applications such as electric vehicles, fast charging, 5G, renewable energy and storage, and aerospace and defense. 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 and Arkansas. The Company also uses contract manufacturers for certain products and aspects of product fabrication, assembly and packaging. Additionally, the Company recently opened its Silicon Carbide device fabrication facility in New York. The Company operates research and development facilities in North Carolina, California, Arkansas, Arizona and New York. Wolfspeed, Inc. is a North Carolina corporation established in 1987, and its headquarters are in Durham, North Carolina. Basis of Presentation The consolidated financial statements presented herein have been prepared by the Company and have not been audited. In the opinion of management, all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations, comprehensive loss, shareholders' equity and cash flows at December 25, 2022, and for all periods presented, have been made. All material intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 26, 2022 has been derived from the audited financial statements as of that date. Certain prior period amounts in the accompanying consolidated financial statements and notes have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net loss or shareholders’ equity. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 26, 2022 (fiscal 2022) (the 2022 Form 10-K). The results of operations for the three and six months ended December 25, 2022 are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 25, 2023 (fiscal 2023). Recently Adopted Accounting Pronouncements Convertible Debt Instruments In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). This standard simplifies the accounting for convertible instruments by eliminating the cash conversion and the beneficial conversion accounting models. This update also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity. The update requires an entity to use the if-converted method for all convertible instruments in the diluted earnings per share calculation. An entity may use either a modified or full retrospective approach for adoption. The Company adopted this standard on June 27, 2022, the first day of its 2023 fiscal year, under the modified retrospective approach. The adoption resulted in (i) a reduction of additional paid in capital by $333.0 million for the recombination of the equity conversion component of the convertible notes outstanding, which was initially separated and recorded in equity, (ii) an increase in the cumulative convertible note carrying value of $277.9 million as a result of removing previously recorded debt discounts, (iii) a decrease in property, plant and equipment for previously capitalized non-cash interest of $25.4 million and (iv) a decrease to beginning accumulated deficit as of June 27, 2022 of $29.7 million to recognize the cumulative gain on adoption. The Company did not recognize a discrete tax impact related to the opening deferred tax balances as of June 27, 2022 due to a full U.S. valuation allowance. Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance. This standard will require entities to provide annual disclosures regarding government assistance. More specifically, the amendments in the standard improve financial reporting by requiring disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions; (2) the accounting for those transactions; and (3) the effect of those transactions on an entity's financial statements. An entity can apply the amendments prospectively or retrospectively. The Company adopted this standard on June 27, 2022 and will apply the amendments prospectively. The required disclosures will be reflected in the Company’s Annual Report on Form 10-K for the fiscal year ending June 25, 2023. Accounting Pronouncements Pending Adoption None. |
Discontinued Operations
Discontinued Operations | 6 Months Ended |
Dec. 25, 2022 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations On March 1, 2021, the Company completed the sale of certain assets and subsidiaries comprising its former LED Products segment to SMART Global Holdings, Inc. (SGH) and its wholly owned subsidiary CreeLED, Inc. (CreeLED and collectively with SGH, SMART) (the LED Business Divestiture) pursuant to the terms of the Asset Purchase Agreement (the LED Purchase Agreement), dated October 18, 2020, as amended. Pursuant to the LED Purchase Agreement, (i) the Company completed the sale to SMART of (a) certain equipment, inventory, intellectual property rights, contracts, and real estate comprising the Company’s former LED Products segment, (b) all of the issued and outstanding equity interests of Cree Huizhou Solid State Lighting Company Limited (Cree Huizhou), 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) SMART assumed certain liabilities related to the LED Business. The Company retained certain assets used in and pre-closing liabilities associated with the former LED Products segment. The purchase price for the LED Business consisted 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 between $2.5 million and $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 an unsecured promissory note (the Earnout Note), and (iv) the assumption of certain liabilities. The Purchase Price Note had a maturity date of August 15, 2023, and as explained further below, was prepaid by SGH in full pursuant to its terms, along with outstanding accrued and unpaid interest as of the payment date, in the third quarter of fiscal 2022. The Earnout Note was issued by CreeLED in the fourth quarter of 2022, had a maturity date of March 27, 2025 and as explained further below, was prepaid by CreeLED in full pursuant to its terms, in connection with the forgiveness by the Company of outstanding accrued and unpaid interest as of the payment date, in the first quarter of fiscal 2023. In fiscal 2021, the Company recognized a loss on sale of the LED Business of $29.1 million. The cost of selling the LED Business was $27.4 million, which was recognized throughout fiscal 2020 and 2021. In connection with the closing of the LED Business Divestiture, the Company and CreeLED also entered into certain ancillary and related agreements, including (i) an Intellectual Property Assignment and License Agreement, which assigned to CreeLED certain intellectual property owned by the Company and its affiliates and licensed to CreeLED certain additional intellectual property owned by the Company, (ii) a Transition Services Agreement (LED TSA), (iii) a Wafer Supply and Fabrication Services Agreement (the Wafer Supply Agreement), pursuant to which the Company will supply CreeLED with certain Silicon Carbide materials and fabrication services for up to four years, and (iv) a Real Estate License Agreement (LED RELA), which will allow CreeLED to use certain premises owned by the Company to conduct the LED Business for a period of up to 24 months after closing. In the third quarter of fiscal 2022, the Company received an early payment for the Purchase Price Note. The principal amount of $125.0 million was paid in full, along with outstanding accrued interest as of the payment date. In the first quarter of fiscal 2023, the Company received an early payment for the Earnout Note. The principal amount of $101.8 million was paid in full and the Company agreed to forgo payment by CreeLED of the outstanding accrued interest as of the payment date. For the three and six months ended December 25, 2022, the Company recognized $0.9 million and $1.8 million in administrative fees related to the LED RELA, respectively, of which $0.3 million is included in accounts receivable, net in the consolidated balance sheet as of December 25, 2022. For the three and six months ended December 26, 2021, the Company recognized $0.9 million and $1.8 million in administrative fees related to the LED RELA, respectively. Fees related to the LED RELA were recorded as lease income, see Note 4, "Leases." For the three and six months ended December 25, 2022, the Company recognized $1.8 million and $3.7 million in administrative fees related to the LED TSA, respectively, of which $0.6 million is included in accounts receivable, net in the consolidated balance sheet as of December 25, 2022. For the three and six months ended December 26, 2021, the Company recognized $2.4 million and $5.3 million in administrative fees related to the LED TSA, respectively. Fees related to the LED TSA were recorded as a reduction in expense within the line item in the consolidated statements of operations in which costs were incurred. At the inception of the Wafer Supply Agreement, the Company recorded a supply agreement liability of $31.0 million, none of which was outstanding as of December 25, 2022. For the three and six months ended December 25, 2022, the Company recognized a net loss of $2.6 million and $2.5 million, respectively, in non-operating income, net related to the Wafer Supply Agreement, of which a receivable of $1.6 million is included in other assets in the consolidated balance sheet as of December 25, 2022. For the three and six months ended December 26, 2021, the Company recognized a net loss of $0.1 million and $0.9 million, respectively, in non-operating income, net related to the Wafer Supply Agreement. |
Revenue Recognition
Revenue Recognition | 6 Months Ended |
Dec. 25, 2022 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition 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 a reserve on the Company's "ship and debit" program. Contract liabilities were $45.6 million as of December 25, 2022 and $47.8 million as of June 26, 2022. The decrease was primarily due to decreases in ship and debit reserves and product exchange reserves. Contract liabilities are recorded within accrued contract liabilities and other long-term liabilities on the consolidated balance sheets. For the three and six months ended December 25, 2022, the Company did not recognize revenue that was included in contract liabilities as of June 26, 2022. 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: Three months ended Six months ended December 25, 2022 December 26, 2021 December 25, 2022 December 26, 2021 (in millions of U.S. Dollars) Revenue % of Revenue Revenue % of Revenue Revenue % of Revenue Revenue % of Revenue Europe $63.6 29.4 % $61.7 35.6 % $139.3 30.5 % $119.8 36.3 % China 52.0 24.1 % 49.7 28.7 % 118.0 25.8 % 92.6 28.1 % United States 53.3 24.7 % 32.7 18.9 % 103.7 22.7 % 58.7 17.8 % Asia Pacific (excluding China) 46.1 21.3 % 28.5 16.5 % 93.9 20.5 % 57.9 17.6 % Other 1.1 0.5 % 0.5 0.3 % 2.5 0.5 % 0.7 0.2 % Total $216.1 $173.1 $457.4 $329.7 |
Leases
Leases | 6 Months Ended |
Dec. 25, 2022 | |
Leases [Abstract] | |
Leases | Leases The Company primarily leases manufacturing and office spaces. The Company also has a number of bulk gas leases. 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. The Company's finance lease obligations primarily relate to contract manufacturing space in Malaysia and a 49-year ground lease on the Company's Silicon Carbide device fabrication facility in New York. Balance Sheet Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars): Operating Leases: December 25, 2022 June 26, 2022 Right-of-use asset (1) $58.1 $48.5 Current lease liability (2) 5.3 4.6 Non-current lease liability (3) 57.3 43.6 Total operating lease liabilities $62.6 $48.2 Finance Leases: Finance lease assets (4) $10.0 $10.3 Current portion of finance lease liabilities 0.5 0.5 Finance lease liabilities, less current portion 9.4 9.6 Total finance lease liabilities $9.9 $10.1 (1) Within other assets (2) Within other current liabilities (3) Within other long-term liabilities (4) Within property and equipment, net Statement of Operations Operating lease expense was $2.5 million and $4.7 million for the three and six months ended December 25, 2022, respectively, and $3.3 million and $4.8 million for the three and six months ended December 26, 2021, respectively. Short-term lease expense, variable lease expense and sublease income were immaterial for the three and six months ended December 25, 2022 and December 26, 2021. Finance lease amortization was $0.2 million and $0.4 million and interest expense was less than $0.1 million and $0.1 million for the three and six months ended December 25, 2022, respectively. Finance lease amortization was $0.3 million and $0.7 million and interest expense was $0.1 million and $0.2 million for the three and six months ended December 26, 2021, respectively. Cash Flows Cash flow information consisted of the following (1) : Six months ended (in millions of U.S. Dollars) December 25, 2022 December 26, 2021 Cash (used in) provided by operating activities: Cash paid for operating leases ($2.7) ($4.2) Cash received from tenant improvement allowance on operating lease 3.1 — Cash paid for interest portion of financing leases (0.1) (0.1) Cash used in financing activities: Cash paid for principal portion of finance leases (0.3) (0.2) (1) See Note 5, "Financial Statement Details," for non-cash activities related to leases. Lease Liability Maturities Maturities of operating and finance lease liabilities as of December 25, 2022 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 25, 2023 (remainder of fiscal 2023) $3.4 $0.4 $3.8 June 30, 2024 9.2 0.7 9.9 June 29, 2025 9.9 0.7 10.6 June 28, 2026 9.7 0.7 10.4 June 27, 2027 8.4 0.4 8.8 Thereafter 67.1 14.2 81.3 Total lease payments 107.7 17.1 124.8 Future tenant improvement allowances (18.5) — (18.5) Imputed lease interest (26.6) (7.2) (33.8) Total lease liabilities $62.6 $9.9 $72.5 Supplemental Disclosures Operating Leases Finance Leases Weighted average remaining lease term (in months) (1) 134 556 Weighted average discount rate (2) 4.46 % 2.68 % (1) Weighted average remaining lease term of finance leases excluding the 49-year ground lease is 47 months. (2) Weighted average discount rate of finance leases excluding the 49-year ground lease is 3.49%. Lease Income As mentioned in Note 2, "Discontinued Operations", on March 1, 2021 and in connection with the sale of its LED Business, the Company entered into the LED RELA pursuant to which the Company leases to CreeLED approximately 58,000 square feet of the Company’s property and certain facilities in Durham, North Carolina for a total of $3.6 million per year. The lease term is 24 months and expires on February 26, 2023. Subject to certain provisions in the LED RELA, CreeLED may terminate its rights or a portion of its rights under the agreement at any time with sixty days written notice. A notice of thirty days is permitted under certain circumstances as defined in the agreement. The agreement does not contain any renewal provisions. The Company recognized lease income of $0.9 million and $1.8 million for the three and six months ended December 25, 2022, respectively. The Company recognized lease income of $0.9 million and $1.8 million for the three and six months ended December 26, 2021, respectively. The Company did not recognize any variable lease income for the three and six months ended December 25, 2022 and December 26, 2021. |
Leases | Leases The Company primarily leases manufacturing and office spaces. The Company also has a number of bulk gas leases. 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. The Company's finance lease obligations primarily relate to contract manufacturing space in Malaysia and a 49-year ground lease on the Company's Silicon Carbide device fabrication facility in New York. Balance Sheet Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars): Operating Leases: December 25, 2022 June 26, 2022 Right-of-use asset (1) $58.1 $48.5 Current lease liability (2) 5.3 4.6 Non-current lease liability (3) 57.3 43.6 Total operating lease liabilities $62.6 $48.2 Finance Leases: Finance lease assets (4) $10.0 $10.3 Current portion of finance lease liabilities 0.5 0.5 Finance lease liabilities, less current portion 9.4 9.6 Total finance lease liabilities $9.9 $10.1 (1) Within other assets (2) Within other current liabilities (3) Within other long-term liabilities (4) Within property and equipment, net Statement of Operations Operating lease expense was $2.5 million and $4.7 million for the three and six months ended December 25, 2022, respectively, and $3.3 million and $4.8 million for the three and six months ended December 26, 2021, respectively. Short-term lease expense, variable lease expense and sublease income were immaterial for the three and six months ended December 25, 2022 and December 26, 2021. Finance lease amortization was $0.2 million and $0.4 million and interest expense was less than $0.1 million and $0.1 million for the three and six months ended December 25, 2022, respectively. Finance lease amortization was $0.3 million and $0.7 million and interest expense was $0.1 million and $0.2 million for the three and six months ended December 26, 2021, respectively. Cash Flows Cash flow information consisted of the following (1) : Six months ended (in millions of U.S. Dollars) December 25, 2022 December 26, 2021 Cash (used in) provided by operating activities: Cash paid for operating leases ($2.7) ($4.2) Cash received from tenant improvement allowance on operating lease 3.1 — Cash paid for interest portion of financing leases (0.1) (0.1) Cash used in financing activities: Cash paid for principal portion of finance leases (0.3) (0.2) (1) See Note 5, "Financial Statement Details," for non-cash activities related to leases. Lease Liability Maturities Maturities of operating and finance lease liabilities as of December 25, 2022 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 25, 2023 (remainder of fiscal 2023) $3.4 $0.4 $3.8 June 30, 2024 9.2 0.7 9.9 June 29, 2025 9.9 0.7 10.6 June 28, 2026 9.7 0.7 10.4 June 27, 2027 8.4 0.4 8.8 Thereafter 67.1 14.2 81.3 Total lease payments 107.7 17.1 124.8 Future tenant improvement allowances (18.5) — (18.5) Imputed lease interest (26.6) (7.2) (33.8) Total lease liabilities $62.6 $9.9 $72.5 Supplemental Disclosures Operating Leases Finance Leases Weighted average remaining lease term (in months) (1) 134 556 Weighted average discount rate (2) 4.46 % 2.68 % (1) Weighted average remaining lease term of finance leases excluding the 49-year ground lease is 47 months. (2) Weighted average discount rate of finance leases excluding the 49-year ground lease is 3.49%. Lease Income As mentioned in Note 2, "Discontinued Operations", on March 1, 2021 and in connection with the sale of its LED Business, the Company entered into the LED RELA pursuant to which the Company leases to CreeLED approximately 58,000 square feet of the Company’s property and certain facilities in Durham, North Carolina for a total of $3.6 million per year. The lease term is 24 months and expires on February 26, 2023. Subject to certain provisions in the LED RELA, CreeLED may terminate its rights or a portion of its rights under the agreement at any time with sixty days written notice. A notice of thirty days is permitted under certain circumstances as defined in the agreement. The agreement does not contain any renewal provisions. The Company recognized lease income of $0.9 million and $1.8 million for the three and six months ended December 25, 2022, respectively. The Company recognized lease income of $0.9 million and $1.8 million for the three and six months ended December 26, 2021, respectively. The Company did not recognize any variable lease income for the three and six months ended December 25, 2022 and December 26, 2021. |
Leases | Leases The Company primarily leases manufacturing and office spaces. The Company also has a number of bulk gas leases. 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. The Company's finance lease obligations primarily relate to contract manufacturing space in Malaysia and a 49-year ground lease on the Company's Silicon Carbide device fabrication facility in New York. Balance Sheet Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars): Operating Leases: December 25, 2022 June 26, 2022 Right-of-use asset (1) $58.1 $48.5 Current lease liability (2) 5.3 4.6 Non-current lease liability (3) 57.3 43.6 Total operating lease liabilities $62.6 $48.2 Finance Leases: Finance lease assets (4) $10.0 $10.3 Current portion of finance lease liabilities 0.5 0.5 Finance lease liabilities, less current portion 9.4 9.6 Total finance lease liabilities $9.9 $10.1 (1) Within other assets (2) Within other current liabilities (3) Within other long-term liabilities (4) Within property and equipment, net Statement of Operations Operating lease expense was $2.5 million and $4.7 million for the three and six months ended December 25, 2022, respectively, and $3.3 million and $4.8 million for the three and six months ended December 26, 2021, respectively. Short-term lease expense, variable lease expense and sublease income were immaterial for the three and six months ended December 25, 2022 and December 26, 2021. Finance lease amortization was $0.2 million and $0.4 million and interest expense was less than $0.1 million and $0.1 million for the three and six months ended December 25, 2022, respectively. Finance lease amortization was $0.3 million and $0.7 million and interest expense was $0.1 million and $0.2 million for the three and six months ended December 26, 2021, respectively. Cash Flows Cash flow information consisted of the following (1) : Six months ended (in millions of U.S. Dollars) December 25, 2022 December 26, 2021 Cash (used in) provided by operating activities: Cash paid for operating leases ($2.7) ($4.2) Cash received from tenant improvement allowance on operating lease 3.1 — Cash paid for interest portion of financing leases (0.1) (0.1) Cash used in financing activities: Cash paid for principal portion of finance leases (0.3) (0.2) (1) See Note 5, "Financial Statement Details," for non-cash activities related to leases. Lease Liability Maturities Maturities of operating and finance lease liabilities as of December 25, 2022 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 25, 2023 (remainder of fiscal 2023) $3.4 $0.4 $3.8 June 30, 2024 9.2 0.7 9.9 June 29, 2025 9.9 0.7 10.6 June 28, 2026 9.7 0.7 10.4 June 27, 2027 8.4 0.4 8.8 Thereafter 67.1 14.2 81.3 Total lease payments 107.7 17.1 124.8 Future tenant improvement allowances (18.5) — (18.5) Imputed lease interest (26.6) (7.2) (33.8) Total lease liabilities $62.6 $9.9 $72.5 Supplemental Disclosures Operating Leases Finance Leases Weighted average remaining lease term (in months) (1) 134 556 Weighted average discount rate (2) 4.46 % 2.68 % (1) Weighted average remaining lease term of finance leases excluding the 49-year ground lease is 47 months. (2) Weighted average discount rate of finance leases excluding the 49-year ground lease is 3.49%. Lease Income As mentioned in Note 2, "Discontinued Operations", on March 1, 2021 and in connection with the sale of its LED Business, the Company entered into the LED RELA pursuant to which the Company leases to CreeLED approximately 58,000 square feet of the Company’s property and certain facilities in Durham, North Carolina for a total of $3.6 million per year. The lease term is 24 months and expires on February 26, 2023. Subject to certain provisions in the LED RELA, CreeLED may terminate its rights or a portion of its rights under the agreement at any time with sixty days written notice. A notice of thirty days is permitted under certain circumstances as defined in the agreement. The agreement does not contain any renewal provisions. The Company recognized lease income of $0.9 million and $1.8 million for the three and six months ended December 25, 2022, respectively. The Company recognized lease income of $0.9 million and $1.8 million for the three and six months ended December 26, 2021, respectively. The Company did not recognize any variable lease income for the three and six months ended December 25, 2022 and December 26, 2021. |
Financial Statement Details
Financial Statement Details | 6 Months Ended |
Dec. 25, 2022 | |
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) December 25, 2022 June 26, 2022 Billed trade receivables $166.6 $148.0 Unbilled contract receivables 2.6 2.7 Royalties 0.8 0.7 170.0 151.4 Allowance for bad debts (0.7) (1.2) Accounts receivable, net $169.3 $150.2 Changes in the Company’s allowance for bad debts were as follows: (in millions of U.S. Dollars) December 25, 2022 Balance at beginning of period $1.2 Current period provision change (0.5) Write-offs, net of recoveries — Balance at end of period $0.7 Inventories Inventories consisted of the following: (in millions of U.S. Dollars) December 25, 2022 June 26, 2022 Raw material $84.0 $60.2 Work-in-progress 146.8 135.9 Finished goods 35.8 30.9 Inventories $266.6 $227.0 Other Current Assets Other current assets consisted of the following: (in millions of U.S. Dollars) December 25, 2022 June 26, 2022 Reimbursement receivable on long-term incentive agreement $111.6 $132.5 Accrued interest receivable 11.2 5.9 Receivable on Wafer Supply Agreement 1.6 2.7 Inventory related to Wafer Supply Agreement 2.8 3.9 Deferred product costs 0.3 2.5 Other 5.9 3.9 Other current assets $133.4 $151.4 Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: (in millions of U.S. Dollars) December 25, 2022 June 26, 2022 Accounts payable, trade $132.2 $57.8 Accrued salaries and wages 54.9 80.6 Accrued property and equipment 156.8 132.1 Accrued expenses and other 45.2 37.2 Accounts payable and accrued expenses $389.1 $307.7 Other Operating Expense Other operating expense consisted of the following: Three months ended Six months ended (in millions of U.S. Dollars) December 25, 2022 December 26, 2021 December 25, 2022 December 26, 2021 Factory start-up costs 37.6 11.0 76.0 19.6 Project, transformation and transaction costs 4.5 2.5 7.5 4.1 Restructuring costs 0.2 2.1 0.2 4.7 Non-restructuring related executive severance 0.3 — 1.3 — Other operating expense $42.6 $15.6 $85.0 $28.4 Accumulated Other Comprehensive Loss, net of taxes Accumulated other comprehensive loss, net of taxes, consisted of $28.6 million and $25.3 million of net unrealized losses on available-for-sale securities as of December 25, 2022 and June 26, 2022, respectively. Amounts for both periods include a $2.4 million loss related to tax on unrealized loss on available-for-sale securities. Reclassifications Out of Accumulated Other Comprehensive Loss Reclassifications out of accumulated other comprehensive loss was a loss of less than $0.1 million for both the three and six months ended December 25, 2022 and a $0.1 million and $0.3 million gain for the three and six months ended December 26, 2021, respectively. Amounts were reclassified to non-operating (income) expense, net on the consolidated statements of operations. Non-Operating (Income) Expense, net The following table summarizes the components of non-operating (income) expense, net: Three months ended Six months ended (in millions of U.S. Dollars) December 25, 2022 December 26, 2021 December 25, 2022 December 26, 2021 Gain on arbitration proceedings (1) (0.9) — (50.3) — Loss on debt extinguishment (2) — 24.8 — 24.8 Interest income (11.6) (2.4) (15.9) (5.0) Interest expense, net of capitalized interest 7.8 5.3 12.6 12.0 Loss on Wafer Supply Agreement 2.6 0.1 2.5 0.9 Gain on sale of investments, net — (0.1) — (0.3) Other, net 1.3 0.1 0.6 (0.5) Non-operating (income) expense, net ($0.8) $27.8 ($50.5) $31.9 (1) In the first quarter of fiscal 2023, the Company received an arbitration award in relation to a former customer failing to fulfill contractual obligations to purchase a certain amount of product over a period of time. In the second quarter of fiscal 2023, a final payment, net of legal fees, was received. The arbitration award is recognized as non-operating income, net of legal fees incurred. (2) As discussed further in Note 9, "Long-term Debt," in the second quarter of fiscal 2022, all outstanding 2023 Notes (as defined below) were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in shares, with fractional shares paid in cash. Statements of Cash Flows - non-cash activities Six months ended (in millions of U.S. Dollars) December 25, 2022 December 26, 2021 Lease asset and liability additions $12.7 $5.6 Lease asset and liability modifications, net 0.6 2.9 Lease terminations — (0.2) Settlement of 2023 Notes in shares of common stock (1) — 416.1 Decrease in property, plant and equipment from investment tax credit receivables 24.3 — Decrease in property, plant and equipment from long-term incentive related receivables 49.8 81.1 (1) As discussed further in Note 9, "Long-term Debt," in the second quarter of fiscal 2022, all outstanding 2023 Notes were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in shares, with fractional shares paid in cash. Accrued property and equipment as of December 25, 2022 and December 26, 2021 was $156.8 million and $135.7 million, respectively. |
Investments
Investments | 6 Months Ended |
Dec. 25, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Short-term investments consisted of the following (in millions of U.S. Dollars): December 25, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Credit Loss Allowance Estimated Fair Value Corporate bonds $618.2 $0.1 ($20.2) $— $598.1 U.S. treasury securities 251.2 — (1.1) — 250.1 Certificates of deposit 196.9 — — — 196.9 Municipal bonds 180.6 0.1 (5.0) — 175.7 Variable rate demand notes 94.4 — — — 94.4 Commercial paper 64.0 — — — 64.0 U.S. agency securities 20.2 — (0.1) — 20.1 Total short-term investments $1,425.5 $0.2 ($26.4) $— $1,399.3 June 26, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Credit Loss Allowance Estimated Fair Value Corporate bonds $465.8 $— ($17.8) $— $448.0 Municipal bonds 166.5 0.1 (4.4) — 162.2 U.S. treasury securities 66.5 — (0.7) — 65.8 Variable rate demand notes 69.4 — — — 69.4 U.S. agency securities 4.0 — (0.1) — 3.9 Total short-term investments $772.2 $0.1 ($23.0) $— $749.3 All short-term investments are classified as available-for-sale. The Company did not have any long-term investments as of December 25, 2022 and June 26, 2022. The following tables present 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 (in millions of U.S. Dollars): December 25, 2022 Less than 12 Months Greater than 12 Months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate bonds $361.0 ($12.1) $146.4 ($8.1) $507.4 ($20.2) Municipal bonds 108.5 (3.2) 35.7 (1.8) 144.2 (5.0) U.S. treasury securities 133.6 (1.1) — — 133.6 (1.1) U.S. agency securities 5.0 — 1.9 (0.1) 6.9 (0.1) Total $608.1 ($16.4) $184.0 ($10.0) $792.1 ($26.4) Number of securities with an unrealized loss 265 90 355 June 26, 2022 Less than 12 Months Greater than 12 Months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate bonds $431.1 ($17.4) $8.3 ($0.4) $439.4 ($17.8) Municipal bonds 150.0 (4.4) 1.0 — 151.0 (4.4) U.S. treasury securities 65.8 (0.7) — — 65.8 (0.7) U.S. agency securities 3.9 (0.1) — — 3.9 (0.1) Total $650.8 ($22.6) $9.3 ($0.4) $660.1 ($23.0) Number of securities with an unrealized loss 346 5 351 Additionally, the Company held cash equivalent securities in unrealized loss positions as of December 25, 2022 and June 26, 2022. As of December 25, 2022, the Company held ten cash equivalent securities in unrealized loss positions with an aggregate fair value of $104.7 million and an aggregate unrealized loss of less than $0.1 million. As of June 26, 2022, the Company held six cash equivalent securities in unrealized loss positions with an aggregate fair value of $69.0 million and an aggregate unrealized loss of less than $0.1 million. All cash equivalents in unrealized loss positions as of December 25, 2022 and June 26, 2022 have been in unrealized loss positions for less than 12 months. The Company does not include accrued interest in estimated fair values of short-term investments and does not record an allowance for credit losses on receivables related to accrued interest. Accrued interest receivable was $11.2 million and $5.9 million as of December 25, 2022 and June 26, 2022, respectively, and is recorded in other current assets on the consolidated balance sheets. When necessary, write-offs of noncollectable interest income are recorded as a reversal to interest income. There were no write-offs of noncollectable interest income during the three and six months ended December 25, 2022 and December 26, 2021. The Company utilizes specific identification in computing realized gains and losses on the sale of investments. Realized gains and losses are included in non-operating (income) expense, net in the consolidated statements of operations. Unrealized gains and losses are included as a separate component of equity, net of tax, unless the Company determines there is an expected credit loss. The Company evaluates its investments for expected credit losses. The Company believes it is able to and intends to hold each of the investments held with an unrealized loss as of December 25, 2022 until the investments fully recover in market value. No allowance for credit losses was recorded as of December 25, 2022. The contractual maturities of short-term investments as of December 25, 2022 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 Corporate bonds $298.0 $300.1 $— $— $598.1 U.S. treasury securities 196.8 53.3 — — 250.1 Certificates of deposit 196.9 — — — 196.9 Municipal bonds 66.1 109.6 — — 175.7 Variable rate demand notes — — 14.7 79.7 94.4 Commercial paper 64.0 — — — 64.0 U.S. agency securities 15.1 5.0 — — 20.1 Total short-term investments $836.9 $468.0 $14.7 $79.7 $1,399.3 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Dec. 25, 2022 | |
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. Because 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 and short-term investments. As of December 25, 2022 and June 26, 2022, financial assets utilizing Level 1 inputs included U.S. treasury securities and money market funds. Financial assets utilizing Level 2 inputs included commercial paper, certificates of deposit, corporate bonds, municipal bonds, variable rate demand notes and U.S. agency securities. 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 December 25, 2022 and June 26, 2022. The following table sets forth financial instruments carried at fair value within the U.S. GAAP hierarchy: December 25, 2022 June 26, 2022 (in millions of U.S. Dollars) Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: U.S. treasury securities $307.0 $— $307.0 $69.0 $— $69.0 Money market funds 253.5 — 253.5 115.9 — 115.9 Commercial paper — 67.6 67.6 — 59.4 59.4 Certificates of deposit — 38.8 38.8 — — — Corporate bonds — 8.4 8.4 — — — Municipal bonds — 1.0 1.0 — — — Total cash equivalents 560.5 115.8 676.3 184.9 59.4 244.3 Short-term investments: Corporate bonds — 598.1 598.1 — 448.0 448.0 U.S. treasury securities 250.1 — 250.1 65.8 — 65.8 Certificates of deposit — 196.9 196.9 — — — Municipal bonds — 175.7 175.7 — 162.2 162.2 Variable rate demand notes — 94.4 94.4 — 69.4 69.4 Commercial paper — 64.0 64.0 — — — U.S. agency securities — 20.1 20.1 — 3.9 3.9 Total short-term investments 250.1 1,149.2 1,399.3 65.8 683.5 749.3 Total cash equivalents and short-term investments $810.6 $1,265.0 $2,075.6 $250.7 $742.9 $993.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Dec. 25, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill There were no changes to goodwill during the six months ended December 25, 2022. Intangible Assets, net The following table presents the components of intangible assets, net: December 25, 2022 June 26, 2022 (in millions of U.S. Dollars) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $96.8 ($34.3) $62.5 $96.8 ($31.2) $65.6 Developed technology 68.0 (36.2) 31.8 68.0 (33.6) 34.4 Non-compete agreements 12.2 (12.2) — 12.2 (12.2) — Acquisition related intangible assets 177.0 (82.7) 94.3 177.0 (77.0) 100.0 Patent and licensing rights 64.1 (38.4) 25.7 65.5 (40.1) 25.4 Total intangible assets $241.1 ($121.1) $120.0 $242.5 ($117.1) $125.4 Total amortization of acquisition-related intangibles assets was $2.8 million and $5.7 million for the three and six months ended December 25, 2022, respectively, and $3.6 million and $7.2 million for the three and six months ended December 26, 2021, respectively. Total amortization of patents and licensing rights was $1.3 million and $2.5 million for the three and six months ended December 25, 2022, respectively, and $1.5 million and $2.8 million for the three and six months ended December 26, 2021, respectively. 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 25, 2023 (remainder of fiscal 2023) $5.5 $2.3 $7.8 June 30, 2024 10.4 4.1 14.5 June 29, 2025 10.4 3.1 13.5 June 28, 2026 9.3 2.4 11.7 June 27, 2027 9.3 1.9 11.2 Thereafter 49.4 11.9 61.3 Total future amortization expense $94.3 $25.7 $120.0 |
Long-term Debt
Long-term Debt | 6 Months Ended |
Dec. 25, 2022 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Revolving Line of Credit As of December 25, 2022, 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, 2026. The Credit Agreement requires 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, with no other financial covenants. The Company classifies balances outstanding under the Credit Agreement as long-term debt in the consolidated balance sheets. As of December 25, 2022, 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 three and six months ended December 25, 2022, the average interest rate was 0.00% due to no borrowings. As of December 25, 2022, 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 $75.0 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (collectively, the 2023 Notes). The total net proceeds from the 2023 Notes offering was approximately $562.1 million. As discussed further below, the Company repurchased approximately $150.2 million aggregate principal amount of the 2023 Notes using a portion of net proceeds from the sale of an additional convertible note offering (the 2026 Notes, as defined and explained below) in April 2020. On December 8, 2021 (the Redemption Notice Date), the Company issued a notice (the Redemption Notice) to holders of the 2023 Notes calling all outstanding 2023 Notes for redemption. The Redemption Notice designated December 23, 2021 as the redemption date (the Redemption Date). On the Redemption Date, the Redemption Price (as defined below) would have become due and payable on each of the 2023 Notes to be redeemed, and interest thereon would cease to accrue. However, any 2023 Notes called for redemption would not be redeemed if such note was converted before the Redemption Date. The Redemption Price for the 2023 Notes called for redemption was an amount in cash equal to the principal amount of such note plus accrued and unpaid interest on such note to, but excluding, the Redemption Date, which equated to a Redemption Price of $1,002.72222 per $1,000 principal amount of 2023 Notes (the Redemption Price). As of the Redemption Notice Date, the conversion rate of the 2023 Notes was 16.6745 shares of the Company's common stock per $1,000 principal amount of such notes. However, in accordance with the Indenture, dated as of August 24, 2018, between the Company and U.S. Bank National Association, as trustee, which governed the terms of the 2023 Notes, the conversion rate for 2023 Notes that were converted after the Redemption Notice Date was increased to 16.7769 shares of the Company's common stock per $1,000 principal amount of such notes. Before the Redemption Date, all outstanding 2023 Notes were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in approximately 7.1 million shares of the Company's common stock, with cash in lieu of any fractional shares. The fair value of shares issued upon conversion of all outstanding 2023 Notes was $788.0 million. The amount of cash paid for fractional shares was immaterial. 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 2026 Notes offering 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 business day period after any ten consecutive trading day period in which the trading price per $1.0 thousand principal amount of 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of its common stock and the conversion rate on each such trading day; (3) if the Company calls such 2026 Notes for redemption, at any time prior to the close of business on the second business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after November 3, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2026 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company's election. The Company used approximately $144.3 million of the net proceeds from the sale of the 2026 Notes in April 2020 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. 2028 Convertible Notes On February 3, 2022, the Company sold $650.0 million aggregate principal amount of 0.25% convertible senior notes due February 15, 2028 to qualified institutional buyers pursuant to Rule 144A under the Securities Act and an additional $100.0 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (the 2028 Notes). The total net proceeds from the 2028 Notes offering was approximately $732.3 million. The Company used approximately $108.2 million of the net proceeds from the 2028 Notes to fund the cost of entering into capped call transactions, as described below. The conversion rate will initially be 7.8602 shares of common stock per one thousand dollars in principal amount of 2028 Notes (equivalent to an initial conversion price of approximately $127.22 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 2028 Notes in connection with such a corporate event, or who elects to convert any 2028 Notes called for redemption during the related redemption period in certain circumstances. The Company may not redeem the 2028 Notes prior to February 18, 2025. The Company may redeem for cash all or any portion of the 2028 Notes, at its option, on a redemption date occurring on or after February 18, 2025 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 2028 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 2028 Notes at a fundamental repurchase price equal to 100% of the principal amount of the 2028 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. Holders may convert their 2028 Notes at their option at any time prior to the close of business on the business day immediately preceding August 16, 2027 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending March 31, 2022 (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 business day period after any ten consecutive trading day period in which the trading price per $1.0 thousand principal amount of 2028 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of its common stock and the conversion rate on each such trading day; (3) if the Company calls such 2028 Notes for redemption, at any time prior to the close of business on the second business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after August 16, 2027 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2028 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company's election. Capped Call Transactions in relation to the 2028 Notes On January 31, 2022, in connection with the pricing of the 2028 Notes, the Company entered into privately negotiated capped call transactions with certain of the initial purchasers or affiliates thereof (the 2028 Notes Capped Call Counterparties). In connection with the exercise by the initial purchasers of their option to purchase additional notes, the Company entered into additional privately negotiated capped call transactions (such transactions, collectively, the 2028 Notes Capped Call Transactions) with each of the 2028 Notes Capped Call Counterparties. The 2028 Notes Capped Call Transactions initially cover, subject to customary anti-dilution adjustments, the aggregate number of shares of the Company’s common stock that initially underlie the 2028 Notes. The 2028 Notes Capped Call Transactions are expected generally to reduce the potential dilutive effect on the common stock upon any conversion of 2028 Notes and/or offset any potential cash payments the Company is required to make in excess of the principal amount of converted 2028 Notes, as the case may be, with such reduction and/or offset subject to a cap which initially is $212.04 per share, representing a premium of 125% over the last reported sale price per share of our common stock on January 31, 2022, subject to certain adjustments under the terms of the 2028 Notes Capped Call Transactions. The 2028 Notes Capped Call Transactions are separate transactions entered into by the Company with each of the 2028 Notes Capped Call Counterparties, are not part of the terms of the 2028 Notes, and do not affect any holder’s rights under the 2028 Notes. Holders of the 2028 Notes do not have any rights with respect to the 2028 Notes Capped Call Transactions. 2029 Convertible Notes On November 21, 2022, the Company sold $1,525.0 million aggregate principal amount of 1.875% convertible senior notes due December 1, 2029 to qualified institutional buyers pursuant to Rule 144A under the Securities Act and an additional $225.0 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (the 2029 Notes). The total net proceeds from the 2029 Notes offering was approximately $1,718.6 million. The Company used approximately $273.9 million of the net proceeds from the 2029 Notes to fund the cost of entering into capped call transactions, as described below. The conversion rate will initially be 8.4118 shares of common stock per one thousand dollars in principal amount of 2029 Notes (equivalent to an initial conversion price of approximately $118.88 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 2029 Notes in connection with such a corporate event, or who elects to convert any 2029 Notes called for redemption during the related redemption period in certain circumstances. The Company may not redeem the 2029 Notes prior to December 4, 2026. The Company may redeem for cash all or any portion of the 2029 Notes, at its option, on a redemption date occurring on or after December 4, 2026 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 2029 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 2029 Notes at a fundamental repurchase price equal to 100% of the principal amount of the 2029 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. Holders may convert their 2029 Notes at their option at any time prior to the close of business on the business day immediately preceding June 1, 2029 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending March 31, 2023 (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 business day period after any ten consecutive trading day period in which the trading price per $1.0 thousand principal amount of 2029 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of its common stock and the conversion rate on each such trading day; (3) if the Company calls such 2029 Notes for redemption, at any time prior to the close of business on the second business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after June 1, 2029 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2029 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company's election. Capped Call Transactions in relation to the 2029 Notes On November 16, 2022, in connection with the pricing of the 2029 Notes, the Company entered into privately negotiated capped call transactions with certain of the initial purchasers or their affiliates and another financial institution (the 2029 Notes Capped Call Counterparties). In connection with the exercise by the initial purchasers of their option to purchase additional notes, the Company entered into additional privately negotiated capped call transactions (such transactions, collectively, the 2029 Notes Capped Call Transactions) with each of the 2029 Notes Capped Call Counterparties. The 2029 Notes Capped Call Transactions initially cover, subject to customary anti-dilution adjustments, the aggregate number of shares of the Company’s common stock that initially underlie the 2029 Notes. The 2029 Notes Capped Call Transactions are expected generally to reduce the potential dilutive effect on the common stock upon any conversion of 2029 Notes and/or offset any potential cash payments the Company is required to make in excess of the principal amount of converted 2029 Notes, as the case may be, with such reduction and/or offset subject to a cap which initially is $202.538 per share, representing a premium of 130% over the last reported sale price per share of our common stock on November 16, 2022, subject to certain adjustments under the terms of the 2029 Notes Capped Call Transactions. The 2029 Notes Capped Call Transactions are separate transactions entered into by the Company with each of the 2029 Notes Capped Call Counterparties, are not part of the terms of the 2029 Notes, and do not affect any holder’s rights under the 2029 Notes. Holders of the 2029 Notes do not have any rights with respect to the 2029 Notes Capped Call Transactions. Accounting for 2023 Notes, 2026 Notes, 2028 Notes and 2029 Notes In accounting for the issuance of the 2023 Notes, 2026 Notes and 2028 Notes, the Company separated such notes into liability and equity components. The carrying amount of the equity component representing the conversion option was $110.6 million, $145.4 million and $187.6 million for the 2023 Notes, 2026 Notes and 2028 Notes, respectively. The amounts were determined by deducting the fair value of the liability component from the par value of each of the 2023 Notes, 2026 Notes and 2028 Notes. Due to the partial extinguishment of the 2023 Notes in connection with the issuance of the 2026 Notes, the equity component of the 2023 Notes was reduced by $27.7 million during the fourth quarter of fiscal 2020. As a result of the full conversion of all outstanding 2023 Notes, the Company remeasured the outstanding liability for the 2023 Notes using a market rate for debt without a conversion option (the Market Rate) as of the Redemption Notice Date. The Company performed a present value calculation using the Market Rate and determined the fair value of the debt as of the Redemption Notice Date was $416.1 million, $24.7 million higher than the carrying value of the 2023 Notes as of the Redemption Notice Date. As a result, the Company recorded a loss on extinguishment of $24.8 million, which included a $0.1 million loss on extinguishment expense related to third party fees. Additionally, the equity component of the 2023 Notes was reduced to zero. Upon adoption of ASU 2020-06 on June 27, 2022, the first day of fiscal 2023, the unamortized discounts on the 2026 Notes and 2028 Notes were eliminated and the liability and equity components relating to the debt issuance costs for the 2026 Notes and 2028 Notes are now presented as a single liability. Debt issuance costs in relation to the 2029 Notes were accounted for as a reduction of the principal balance and will be amortized over the term of the 2029 Notes. The 2026 Notes, 2028 Notes and 2029 Notes (the Outstanding Notes) are equal in right of payment to any of the Company’s unsecured indebtedness; senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated in right of payment to the Outstanding Notes; effectively subordinated in right of payment of any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally subordinated to all indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries. The net carrying amount of the liability component of the Outstanding Notes is as follows: (in millions of U.S. Dollars) December 25, 2022 June 26, 2022 Principal $3,075.0 $1,325.0 Unamortized discount and issuance costs (54.0) (303.4) Net carrying amount $3,021.0 $1,021.6 The net carrying amount of the equity component of the Outstanding Notes is as follows: (in millions of U.S. Dollars) December 25, 2022 (1) June 26, 2022 Discount related to value of conversion option $— $341.1 Debt issuance costs — (8.1) Net carrying amount $— $333.0 (1) As discussed above, the equity components of the 2026 Notes and 2028 Notes were eliminated upon adoption of ASU 2020-06 on June 27, 2022, the first day of fiscal 2023. The interest expense, net recognized related to the Outstanding Notes is as follows: Three months ended Six months ended (in millions of U.S. Dollars) December 25, 2022 December 26, 2021 December 25, 2022 December 26, 2021 Interest expense, net of capitalized interest $5.7 $0.8 $8.7 $1.9 Amortization of discount and debt issuance costs, net of capitalized interest 1.6 3.9 2.9 9.0 Total interest expense, net $7.3 $4.7 $11.6 $10.9 The Company did not capitalize interest expense for the three and six months ended December 25, 2022. For the three and six months ended December 26, 2021, the Company capitalized $2.6 million and $4.9 million of interest expense, respectively, and $5.8 million and $11.2 million of amortization of discount and issuance costs, respectively, in connection with the building of a new Silicon Carbide device fabrication facility in New York. The last reported sale price of the Company's common stock was greater than or equal to 130% of the applicable conversion price for the 2026 Notes for at least 20 trading days in the 30 consecutive trading days ended on December 31, 2022. As a result, the 2026 Notes are convertible at the option of the holders through March 31, 2023. As of December 25, 2022, the if-converted value of the 2026 Notes exceeded their respective principal amounts by $303.3 million. The estimated fair value of the Outstanding Notes is $3.3 billion as of December 25, 2022, as determined by a Level 2 valuation. |
Loss Per Share
Loss Per Share | 6 Months Ended |
Dec. 25, 2022 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share The details of the computation of basic and diluted loss per share are as follows: Three months ended Six months ended (in millions of U.S. Dollars, except share data) December 25, 2022 December 26, 2021 December 25, 2022 December 26, 2021 Net loss ($90.9) ($96.7) ($117.1) ($166.8) Weighted average shares - basic and diluted (in thousands) 124,344 117,218 124,190 117,068 Loss per share - basic and diluted ($0.73) ($0.82) ($0.94) ($1.42) 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. For the three and six months ended December 25, 2022, 2.8 million and 2.8 million, respectively, of weighted average shares were excluded from the calculation of diluted loss per share because their effect would be anti-dilutive. For the three and six months ended December 26, 2021, 3.1 million and 3.3 million, respectively, of weighted average shares were excluded from the calculation of diluted loss per share because their effect would be anti-dilutive. In addition, future earnings per share of the Company are also subject to dilution from conversion of the 2026 Notes, 2028 Notes and 2029 Notes under certain conditions as described in Note 9, “Long-term Debt.” |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Dec. 25, 2022 | |
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. 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’s stock-based awards can be either service-based or performance-based. Performance-based conditions may be tied to future financial and/or operating performance of the Company, external based market metrics or internal performance metrics. The Company also has an Employee Stock Purchase Plan (ESPP) that provides employees with the opportunity to purchase common stock at a discount. 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 A summary of stock option awards outstanding as of December 25, 2022 and changes during the six months then ended is as follows: (shares in thousands) Number of Shares Weighted Average Exercise Price Outstanding at June 26, 2022 69 $25.12 Granted — $— Exercised (28) $25.46 Forfeited or expired (1) $26.07 Outstanding at December 25, 2022 40 $24.86 Restricted Stock Units A summary of nonvested restricted stock unit awards (RSUs) outstanding as of December 25, 2022 and changes during the six months then ended is as follows: (unit awards in thousands) Number of RSUs Weighted Average Grant-Date Fair Value Nonvested at June 26, 2022 1,894 $75.67 Granted 1,225 $88.41 Vested (629) $66.52 Forfeited (156) $71.44 Nonvested at December 25, 2022 2,334 $84.25 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 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, 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 service-based RSUs and performance-based RSUs with internal metrics, the grant-date fair value is based upon the market price of the Company’s common stock on the date of the grant. For performance-based RSUs, 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. This fair value is then amortized to compensation expense over the requisite service period or vesting term. For performance-based awards with market conditions, the Company estimates the grant date fair value using the Monte Carlo valuation model and expenses the awards over the vesting period regardless of whether the market condition is ultimately satisfied. 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. The Black-Scholes and Monte Carlo option pricing models require the input of highly subjective assumptions. These assumptions 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 below. Total stock-based compensation expense was classified in the consolidated statements of operations as follows: Three months ended Six months ended (in millions of U.S. Dollars) December 25, 2022 December 26, 2021 December 25, 2022 December 26, 2021 Cost of revenue, net $5.8 $4.2 $11.9 $7.3 Research and development 5.1 2.6 8.6 5.0 Sales, general and administrative 10.3 8.6 22.7 17.7 Total stock-based compensation expense $21.2 $15.4 $43.2 $30.0 Stock-based compensation expense may differ from the impact of stock-based compensation to additional paid in capital due to manufacturing related stock-based compensation capitalized within inventory. |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 25, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In general, the variation between the Company's effective income tax rate and the U.S. statutory rate of 21% is primarily due to: (i) changes in the Company’s valuation allowances against deferred tax assets in the U.S., (ii) projected income for the full year derived from international locations with differing tax rates than the U.S. and (iii) projected tax credits generated. 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. As of December 25, 2022, the Company has concluded that it is necessary to recognize a full valuation allowance against its U.S. deferred tax assets. 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 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 26, 2022, the Company's liability for unrecognized tax benefits was $7.2 million. During the six months ended December 25, 2022, the Company did not record any material movement in its unrecognized tax benefits. As a result, the total liability for unrecognized tax benefits as of December 25, 2022 was $7.2 million. If any portion of this $7.2 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 $1.7 million of gross unrecognized tax benefits will change in the next 12 months as a result of statutory requirements or settlement with tax authorities. 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 2018. For foreign purposes, the Company is generally no longer subject to examination for tax periods prior to 2012. Certain carryforward tax attributes generated in prior years remain subject to examination, adjustment and recapture. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 25, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company is currently a party to various legal proceedings, including the case described below. 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 monetary 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 operations, financial position and overall trends. The outcomes in these matters are not reasonably estimable. In October 2021, The Trustees of Purdue University (Purdue) filed a complaint against the Company in the U.S. District Court for the Middle District of North Carolina, alleging infringement of U.S. Patent Nos. 7,498,633 (the '633 Patent), entitled "High-voltage power semiconductor device," and 8,035,112 (the '112 Patent), entitled "SIC power DMOSFET with self-aligned source contact." In the complaint, Purdue also alleges willful infringement, and seeks unspecified monetary damages and attorneys’ fees. In August 2022, Purdue voluntarily withdrew all allegations as to the '112 Patent after having disclaimed all rights to that patent. The Company denies Purdue’s remaining allegations and has developed numerous defenses, including non-infringement, multiple invalidity grounds, and unenforceability due to inequitable conduct before the U.S. Patent & Trademark Office. The litigation with Purdue is in the early stages of fact discovery, and trial is currently scheduled to begin in August 2024. Due to the early stage of the case, the Company is unable to estimate the possible range of loss, if any, at this time. 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 its Silicon Carbide device 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 $2.7 million to $5.2 million per year through fiscal 2031. As of December 25, 2022, the Company has reduced property and equipment, net by a total of $334.9 million as a result of GDA reimbursements, of which $220.4 million has been received in cash and an additional $114.5 million in receivables are recorded in other current assets and in other assets in the consolidated balance sheet. The Company started receiving cash reimbursements in the fourth quarter of fiscal 2021. |
Restructuring
Restructuring | 6 Months Ended |
Dec. 25, 2022 | |
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 January 2022, the Company commenced a plan to open a global IT shared services hub in Belfast, Northern Ireland in partnership with the Northern Ireland government. The Company recorded $0.2 million of severance-related costs relating to this plan for both the three and six months ended December 25, 2022 and has accrued $0.8 million as of December 25, 2022. 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 in Marcy, New York to complement an expansion of the Company's Silicon Carbide materials production at its U.S. campus headquarters in Durham, North Carolina. As part of the plan, the Company incurred restructuring charges associated with the movement of equipment as well as disposals on certain long-lived assets. The factory optimization restructuring plan concluded in fiscal 2022. For the three and six months ended December 26, 2021, the Company expensed and paid $1.8 million and $3.4 million, respectively, of restructuring charges associated with the movement of equipment related to the factory optimization plan. Additionally, the Company expensed and paid $0.3 million and $1.3 million of restructuring charges associated with disposals of certain long-lived assets for the three and six months ended December 26, 2021, respectively. |
Basis of Presentation and New_2
Basis of Presentation and New Accounting Standards (Policies) | 6 Months Ended |
Dec. 25, 2022 | |
Accounting Policies [Abstract] | |
Overview | Overview Wolfspeed, 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 product families include Silicon Carbide and GaN materials, power devices and RF devices targeted for various applications such as electric vehicles, fast charging, 5G, renewable energy and storage, and aerospace and defense. 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 and Arkansas. The Company also uses contract manufacturers for certain products and aspects of product fabrication, assembly and packaging. Additionally, the Company recently opened its Silicon Carbide device fabrication facility in New York. The Company operates research and development facilities in North Carolina, California, Arkansas, Arizona and New York. Wolfspeed, Inc. is a North Carolina corporation established in 1987, and its headquarters are in Durham, North Carolina. |
Basis of Presentation | Basis of Presentation The consolidated financial statements presented herein have been prepared by the Company and have not been audited. In the opinion of management, all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations, comprehensive loss, shareholders' equity and cash flows at December 25, 2022, and for all periods presented, have been made. All material intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 26, 2022 has been derived from the audited financial statements as of that date. Certain prior period amounts in the accompanying consolidated financial statements and notes have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net loss or shareholders’ equity. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 26, 2022 (fiscal 2022) (the 2022 Form 10-K). The results of operations for the three and six months ended December 25, 2022 are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 25, 2023 (fiscal 2023). |
Recently Adopted Accounting Pronouncements and Accounting Pronouncements Pending Adoption | Recently Adopted Accounting Pronouncements Convertible Debt Instruments In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (ASU) 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). This standard simplifies the accounting for convertible instruments by eliminating the cash conversion and the beneficial conversion accounting models. This update also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity. The update requires an entity to use the if-converted method for all convertible instruments in the diluted earnings per share calculation. An entity may use either a modified or full retrospective approach for adoption. The Company adopted this standard on June 27, 2022, the first day of its 2023 fiscal year, under the modified retrospective approach. The adoption resulted in (i) a reduction of additional paid in capital by $333.0 million for the recombination of the equity conversion component of the convertible notes outstanding, which was initially separated and recorded in equity, (ii) an increase in the cumulative convertible note carrying value of $277.9 million as a result of removing previously recorded debt discounts, (iii) a decrease in property, plant and equipment for previously capitalized non-cash interest of $25.4 million and (iv) a decrease to beginning accumulated deficit as of June 27, 2022 of $29.7 million to recognize the cumulative gain on adoption. The Company did not recognize a discrete tax impact related to the opening deferred tax balances as of June 27, 2022 due to a full U.S. valuation allowance. Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance. This standard will require entities to provide annual disclosures regarding government assistance. More specifically, the amendments in the standard improve financial reporting by requiring disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions; (2) the accounting for those transactions; and (3) the effect of those transactions on an entity's financial statements. An entity can apply the amendments prospectively or retrospectively. The Company adopted this standard on June 27, 2022 and will apply the amendments prospectively. The required disclosures will be reflected in the Company’s Annual Report on Form 10-K for the fiscal year ending June 25, 2023. Accounting Pronouncements Pending Adoption None. |
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. Because 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. |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 6 Months Ended |
Dec. 25, 2022 | |
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: Three months ended Six months ended December 25, 2022 December 26, 2021 December 25, 2022 December 26, 2021 (in millions of U.S. Dollars) Revenue % of Revenue Revenue % of Revenue Revenue % of Revenue Revenue % of Revenue Europe $63.6 29.4 % $61.7 35.6 % $139.3 30.5 % $119.8 36.3 % China 52.0 24.1 % 49.7 28.7 % 118.0 25.8 % 92.6 28.1 % United States 53.3 24.7 % 32.7 18.9 % 103.7 22.7 % 58.7 17.8 % Asia Pacific (excluding China) 46.1 21.3 % 28.5 16.5 % 93.9 20.5 % 57.9 17.6 % Other 1.1 0.5 % 0.5 0.3 % 2.5 0.5 % 0.7 0.2 % Total $216.1 $173.1 $457.4 $329.7 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Dec. 25, 2022 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities | Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars): Operating Leases: December 25, 2022 June 26, 2022 Right-of-use asset (1) $58.1 $48.5 Current lease liability (2) 5.3 4.6 Non-current lease liability (3) 57.3 43.6 Total operating lease liabilities $62.6 $48.2 Finance Leases: Finance lease assets (4) $10.0 $10.3 Current portion of finance lease liabilities 0.5 0.5 Finance lease liabilities, less current portion 9.4 9.6 Total finance lease liabilities $9.9 $10.1 (1) Within other assets (2) Within other current liabilities (3) Within other long-term liabilities (4) Within property and equipment, net |
Schedule of Cash Flow Information | Cash flow information consisted of the following (1) : Six months ended (in millions of U.S. Dollars) December 25, 2022 December 26, 2021 Cash (used in) provided by operating activities: Cash paid for operating leases ($2.7) ($4.2) Cash received from tenant improvement allowance on operating lease 3.1 — Cash paid for interest portion of financing leases (0.1) (0.1) Cash used in financing activities: Cash paid for principal portion of finance leases (0.3) (0.2) (1) See Note 5, "Financial Statement Details," for non-cash activities related to leases. Operating Leases Finance Leases Weighted average remaining lease term (in months) (1) 134 556 Weighted average discount rate (2) 4.46 % 2.68 % (1) Weighted average remaining lease term of finance leases excluding the 49-year ground lease is 47 months. (2) Weighted average discount rate of finance leases excluding the 49-year ground lease is 3.49%. |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating and finance lease liabilities as of December 25, 2022 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 25, 2023 (remainder of fiscal 2023) $3.4 $0.4 $3.8 June 30, 2024 9.2 0.7 9.9 June 29, 2025 9.9 0.7 10.6 June 28, 2026 9.7 0.7 10.4 June 27, 2027 8.4 0.4 8.8 Thereafter 67.1 14.2 81.3 Total lease payments 107.7 17.1 124.8 Future tenant improvement allowances (18.5) — (18.5) Imputed lease interest (26.6) (7.2) (33.8) Total lease liabilities $62.6 $9.9 $72.5 |
Schedule of Maturities of Finance Lease Liabilities | Maturities of operating and finance lease liabilities as of December 25, 2022 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 25, 2023 (remainder of fiscal 2023) $3.4 $0.4 $3.8 June 30, 2024 9.2 0.7 9.9 June 29, 2025 9.9 0.7 10.6 June 28, 2026 9.7 0.7 10.4 June 27, 2027 8.4 0.4 8.8 Thereafter 67.1 14.2 81.3 Total lease payments 107.7 17.1 124.8 Future tenant improvement allowances (18.5) — (18.5) Imputed lease interest (26.6) (7.2) (33.8) Total lease liabilities $62.6 $9.9 $72.5 |
Financial Statement Details (Ta
Financial Statement Details (Tables) | 6 Months Ended |
Dec. 25, 2022 | |
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) December 25, 2022 June 26, 2022 Billed trade receivables $166.6 $148.0 Unbilled contract receivables 2.6 2.7 Royalties 0.8 0.7 170.0 151.4 Allowance for bad debts (0.7) (1.2) Accounts receivable, net $169.3 $150.2 |
Schedule of Allowance for Bad Debts | Changes in the Company’s allowance for bad debts were as follows: (in millions of U.S. Dollars) December 25, 2022 Balance at beginning of period $1.2 Current period provision change (0.5) Write-offs, net of recoveries — Balance at end of period $0.7 |
Schedule of Inventories | Inventories consisted of the following: (in millions of U.S. Dollars) December 25, 2022 June 26, 2022 Raw material $84.0 $60.2 Work-in-progress 146.8 135.9 Finished goods 35.8 30.9 Inventories $266.6 $227.0 |
Schedule of Other Current Assets | Other current assets consisted of the following: (in millions of U.S. Dollars) December 25, 2022 June 26, 2022 Reimbursement receivable on long-term incentive agreement $111.6 $132.5 Accrued interest receivable 11.2 5.9 Receivable on Wafer Supply Agreement 1.6 2.7 Inventory related to Wafer Supply Agreement 2.8 3.9 Deferred product costs 0.3 2.5 Other 5.9 3.9 Other current assets $133.4 $151.4 |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following: (in millions of U.S. Dollars) December 25, 2022 June 26, 2022 Accounts payable, trade $132.2 $57.8 Accrued salaries and wages 54.9 80.6 Accrued property and equipment 156.8 132.1 Accrued expenses and other 45.2 37.2 Accounts payable and accrued expenses $389.1 $307.7 |
Schedule of Other Operating Expense | Other operating expense consisted of the following: Three months ended Six months ended (in millions of U.S. Dollars) December 25, 2022 December 26, 2021 December 25, 2022 December 26, 2021 Factory start-up costs 37.6 11.0 76.0 19.6 Project, transformation and transaction costs 4.5 2.5 7.5 4.1 Restructuring costs 0.2 2.1 0.2 4.7 Non-restructuring related executive severance 0.3 — 1.3 — Other operating expense $42.6 $15.6 $85.0 $28.4 |
Schedule of Non-Operating (Income) Expense, Net | The following table summarizes the components of non-operating (income) expense, net: Three months ended Six months ended (in millions of U.S. Dollars) December 25, 2022 December 26, 2021 December 25, 2022 December 26, 2021 Gain on arbitration proceedings (1) (0.9) — (50.3) — Loss on debt extinguishment (2) — 24.8 — 24.8 Interest income (11.6) (2.4) (15.9) (5.0) Interest expense, net of capitalized interest 7.8 5.3 12.6 12.0 Loss on Wafer Supply Agreement 2.6 0.1 2.5 0.9 Gain on sale of investments, net — (0.1) — (0.3) Other, net 1.3 0.1 0.6 (0.5) Non-operating (income) expense, net ($0.8) $27.8 ($50.5) $31.9 (1) In the first quarter of fiscal 2023, the Company received an arbitration award in relation to a former customer failing to fulfill contractual obligations to purchase a certain amount of product over a period of time. In the second quarter of fiscal 2023, a final payment, net of legal fees, was received. The arbitration award is recognized as non-operating income, net of legal fees incurred. (2) As discussed further in Note 9, "Long-term Debt," in the second quarter of fiscal 2022, all outstanding 2023 Notes (as defined below) were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in shares, with fractional shares paid in cash. |
Schedule of Noncash Operating Activities | Six months ended (in millions of U.S. Dollars) December 25, 2022 December 26, 2021 Lease asset and liability additions $12.7 $5.6 Lease asset and liability modifications, net 0.6 2.9 Lease terminations — (0.2) Settlement of 2023 Notes in shares of common stock (1) — 416.1 Decrease in property, plant and equipment from investment tax credit receivables 24.3 — Decrease in property, plant and equipment from long-term incentive related receivables 49.8 81.1 (1) As discussed further in Note 9, "Long-term Debt," in the second quarter of fiscal 2022, all outstanding 2023 Notes were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in shares, with fractional shares paid in cash. |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Dec. 25, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Short-term Investments by Type | Short-term investments consisted of the following (in millions of U.S. Dollars): December 25, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Credit Loss Allowance Estimated Fair Value Corporate bonds $618.2 $0.1 ($20.2) $— $598.1 U.S. treasury securities 251.2 — (1.1) — 250.1 Certificates of deposit 196.9 — — — 196.9 Municipal bonds 180.6 0.1 (5.0) — 175.7 Variable rate demand notes 94.4 — — — 94.4 Commercial paper 64.0 — — — 64.0 U.S. agency securities 20.2 — (0.1) — 20.1 Total short-term investments $1,425.5 $0.2 ($26.4) $— $1,399.3 June 26, 2022 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Credit Loss Allowance Estimated Fair Value Corporate bonds $465.8 $— ($17.8) $— $448.0 Municipal bonds 166.5 0.1 (4.4) — 162.2 U.S. treasury securities 66.5 — (0.7) — 65.8 Variable rate demand notes 69.4 — — — 69.4 U.S. agency securities 4.0 — (0.1) — 3.9 Total short-term investments $772.2 $0.1 ($23.0) $— $749.3 All short-term investments are classified as available-for-sale. The Company did not have any long-term investments as of December 25, 2022 and June 26, 2022. |
Schedule of Gross Unrealized Losses and Fair Value of Short-term Investments by Type and Length of Time | The following tables present 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 (in millions of U.S. Dollars): December 25, 2022 Less than 12 Months Greater than 12 Months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate bonds $361.0 ($12.1) $146.4 ($8.1) $507.4 ($20.2) Municipal bonds 108.5 (3.2) 35.7 (1.8) 144.2 (5.0) U.S. treasury securities 133.6 (1.1) — — 133.6 (1.1) U.S. agency securities 5.0 — 1.9 (0.1) 6.9 (0.1) Total $608.1 ($16.4) $184.0 ($10.0) $792.1 ($26.4) Number of securities with an unrealized loss 265 90 355 June 26, 2022 Less than 12 Months Greater than 12 Months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Corporate bonds $431.1 ($17.4) $8.3 ($0.4) $439.4 ($17.8) Municipal bonds 150.0 (4.4) 1.0 — 151.0 (4.4) U.S. treasury securities 65.8 (0.7) — — 65.8 (0.7) U.S. agency securities 3.9 (0.1) — — 3.9 (0.1) Total $650.8 ($22.6) $9.3 ($0.4) $660.1 ($23.0) Number of securities with an unrealized loss 346 5 351 |
Schedule of Contractual Maturities of Short-term Investments by Type | The contractual maturities of short-term investments as of December 25, 2022 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 Corporate bonds $298.0 $300.1 $— $— $598.1 U.S. treasury securities 196.8 53.3 — — 250.1 Certificates of deposit 196.9 — — — 196.9 Municipal bonds 66.1 109.6 — — 175.7 Variable rate demand notes — — 14.7 79.7 94.4 Commercial paper 64.0 — — — 64.0 U.S. agency securities 15.1 5.0 — — 20.1 Total short-term investments $836.9 $468.0 $14.7 $79.7 $1,399.3 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Dec. 25, 2022 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Carried at Fair Value | The following table sets forth financial instruments carried at fair value within the U.S. GAAP hierarchy: December 25, 2022 June 26, 2022 (in millions of U.S. Dollars) Level 1 Level 2 Total Level 1 Level 2 Total Cash equivalents: U.S. treasury securities $307.0 $— $307.0 $69.0 $— $69.0 Money market funds 253.5 — 253.5 115.9 — 115.9 Commercial paper — 67.6 67.6 — 59.4 59.4 Certificates of deposit — 38.8 38.8 — — — Corporate bonds — 8.4 8.4 — — — Municipal bonds — 1.0 1.0 — — — Total cash equivalents 560.5 115.8 676.3 184.9 59.4 244.3 Short-term investments: Corporate bonds — 598.1 598.1 — 448.0 448.0 U.S. treasury securities 250.1 — 250.1 65.8 — 65.8 Certificates of deposit — 196.9 196.9 — — — Municipal bonds — 175.7 175.7 — 162.2 162.2 Variable rate demand notes — 94.4 94.4 — 69.4 69.4 Commercial paper — 64.0 64.0 — — — U.S. agency securities — 20.1 20.1 — 3.9 3.9 Total short-term investments 250.1 1,149.2 1,399.3 65.8 683.5 749.3 Total cash equivalents and short-term investments $810.6 $1,265.0 $2,075.6 $250.7 $742.9 $993.6 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Dec. 25, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Components of Intangible Assets | The following table presents the components of intangible assets, net: December 25, 2022 June 26, 2022 (in millions of U.S. Dollars) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Customer relationships $96.8 ($34.3) $62.5 $96.8 ($31.2) $65.6 Developed technology 68.0 (36.2) 31.8 68.0 (33.6) 34.4 Non-compete agreements 12.2 (12.2) — 12.2 (12.2) — Acquisition related intangible assets 177.0 (82.7) 94.3 177.0 (77.0) 100.0 Patent and licensing rights 64.1 (38.4) 25.7 65.5 (40.1) 25.4 Total intangible assets $241.1 ($121.1) $120.0 $242.5 ($117.1) $125.4 |
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 25, 2023 (remainder of fiscal 2023) $5.5 $2.3 $7.8 June 30, 2024 10.4 4.1 14.5 June 29, 2025 10.4 3.1 13.5 June 28, 2026 9.3 2.4 11.7 June 27, 2027 9.3 1.9 11.2 Thereafter 49.4 11.9 61.3 Total future amortization expense $94.3 $25.7 $120.0 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 6 Months Ended |
Dec. 25, 2022 | |
Debt Disclosure [Abstract] | |
Schedule of Liability and Equity Components of Long-term Debt | The net carrying amount of the liability component of the Outstanding Notes is as follows: (in millions of U.S. Dollars) December 25, 2022 June 26, 2022 Principal $3,075.0 $1,325.0 Unamortized discount and issuance costs (54.0) (303.4) Net carrying amount $3,021.0 $1,021.6 The net carrying amount of the equity component of the Outstanding Notes is as follows: (in millions of U.S. Dollars) December 25, 2022 (1) June 26, 2022 Discount related to value of conversion option $— $341.1 Debt issuance costs — (8.1) Net carrying amount $— $333.0 (1) As discussed above, the equity components of the 2026 Notes and 2028 Notes were eliminated upon adoption of ASU 2020-06 on June 27, 2022, the first day of fiscal 2023. |
Schedule of Interest Expense | The interest expense, net recognized related to the Outstanding Notes is as follows: Three months ended Six months ended (in millions of U.S. Dollars) December 25, 2022 December 26, 2021 December 25, 2022 December 26, 2021 Interest expense, net of capitalized interest $5.7 $0.8 $8.7 $1.9 Amortization of discount and debt issuance costs, net of capitalized interest 1.6 3.9 2.9 9.0 Total interest expense, net $7.3 $4.7 $11.6 $10.9 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 6 Months Ended |
Dec. 25, 2022 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The details of the computation of basic and diluted loss per share are as follows: Three months ended Six months ended (in millions of U.S. Dollars, except share data) December 25, 2022 December 26, 2021 December 25, 2022 December 26, 2021 Net loss ($90.9) ($96.7) ($117.1) ($166.8) Weighted average shares - basic and diluted (in thousands) 124,344 117,218 124,190 117,068 Loss per share - basic and diluted ($0.73) ($0.82) ($0.94) ($1.42) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Dec. 25, 2022 | |
Share-Based Payment Arrangement [Abstract] | |
Schedule of Stock Option Awards Outstanding | A summary of stock option awards outstanding as of December 25, 2022 and changes during the six months then ended is as follows: (shares in thousands) Number of Shares Weighted Average Exercise Price Outstanding at June 26, 2022 69 $25.12 Granted — $— Exercised (28) $25.46 Forfeited or expired (1) $26.07 Outstanding at December 25, 2022 40 $24.86 |
Schedule of Nonvested Restricted Stock Awards and Restricted Stock Unit Awards Outstanding | A summary of nonvested restricted stock unit awards (RSUs) outstanding as of December 25, 2022 and changes during the six months then ended is as follows: (unit awards in thousands) Number of RSUs Weighted Average Grant-Date Fair Value Nonvested at June 26, 2022 1,894 $75.67 Granted 1,225 $88.41 Vested (629) $66.52 Forfeited (156) $71.44 Nonvested at December 25, 2022 2,334 $84.25 |
Schedule of Total Stock-Based Compensation Expense | Total stock-based compensation expense was classified in the consolidated statements of operations as follows: Three months ended Six months ended (in millions of U.S. Dollars) December 25, 2022 December 26, 2021 December 25, 2022 December 26, 2021 Cost of revenue, net $5.8 $4.2 $11.9 $7.3 Research and development 5.1 2.6 8.6 5.0 Sales, general and administrative 10.3 8.6 22.7 17.7 Total stock-based compensation expense $21.2 $15.4 $43.2 $30.0 |
Basis of Presentation and New_3
Basis of Presentation and New Accounting Standards - Narrative (Details) - USD ($) $ in Millions | Dec. 25, 2022 | Sep. 25, 2022 | Jun. 27, 2022 | Jun. 26, 2022 | Dec. 26, 2021 | Sep. 26, 2021 | Jun. 27, 2021 |
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | |||||||
Stockholders' Equity Attributable to Parent | $ (1,780.2) | $ (2,109.6) | $ (2,439.3) | $ (2,378.9) | $ (2,039.4) | $ (2,116.5) | |
Convertible notes, net | 3,021 | 1,021.6 | |||||
Property and equipment, net | (1,649.6) | (1,481.1) | |||||
Additional Paid-in Capital | |||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | |||||||
Stockholders' Equity Attributable to Parent | (3,660) | (3,902.2) | (4,228.4) | (4,110.3) | (3,670.6) | (3,676.8) | |
Accumulated Deficit | |||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | |||||||
Stockholders' Equity Attributable to Parent | $ 1,851.4 | $ 1,760.5 | 1,764 | $ 1,729.9 | $ 1,633.2 | $ 1,563.1 | |
Cumulative Effect, Period of Adoption, Adjustment | |||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | |||||||
Stockholders' Equity Attributable to Parent | 303.3 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-in Capital | |||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | |||||||
Stockholders' Equity Attributable to Parent | 333 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit | |||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | |||||||
Stockholders' Equity Attributable to Parent | (29.7) | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Adoption of ASU 2020-06 | |||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | |||||||
Convertible notes, net | $ 277.9 | ||||||
Property and equipment, net | $ 25.4 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Adoption of ASU 2020-06 | Additional Paid-in Capital | |||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | |||||||
Stockholders' Equity Attributable to Parent | 333 | ||||||
Cumulative Effect, Period of Adoption, Adjustment | Adoption of ASU 2020-06 | Accumulated Deficit | |||||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | |||||||
Stockholders' Equity Attributable to Parent | $ 29.7 |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||||
Mar. 01, 2021 | Dec. 25, 2022 | Mar. 27, 2022 | Dec. 26, 2021 | Dec. 25, 2022 | Dec. 26, 2021 | Sep. 25, 2022 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Costs of selling business | $ 27,400,000 | ||||||
Term of certain silicon carbide materials and fabrication services | 4 years | ||||||
Proceeds from sale of business resulting from the receipt of transaction related note receivable | $ 101,800,000 | 0 | |||||
Discontinued Operations, Disposed of by Sale | LED Business | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Cash received from divestiture | $ 50,000,000 | ||||||
Unsecured promissory note issued to parent in disposition | 125,000,000 | ||||||
Potential earn-out payment | $ 101,800,000 | ||||||
Loss on sale | 29,100,000 | ||||||
Proceeds from sale of business resulting from the receipt of transaction related note receivable | $ 125,000,000 | ||||||
Supply agreement liability | 31,000,000 | $ 0 | 0 | ||||
Gain (loss) on disposal of discontinued operation, net of tax | (2,600,000) | $ (100,000) | (2,500,000) | (900,000) | |||
Other assets | 1,600,000 | 1,600,000 | |||||
Discontinued Operations, Disposed of by Sale | LED Business | Minimum | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Potential earn-out payment | 2,500,000 | ||||||
Discontinued Operations, Disposed of by Sale | LED Business | 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, Disposed of by Sale | LED Business, Real Estate License Agreement | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Administrative fees | 900,000 | 900,000 | 1,800,000 | 1,800,000 | |||
Discontinued Operations, Disposed of by Sale | LED Business, Real Estate License Agreement | Accounts Receivable, Net | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Administrative fees | 300,000 | ||||||
Discontinued Operations, Disposed of by Sale | LED Business, Transition Services Agreement | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Administrative fees | $ 1,800,000 | $ 2,400,000 | 3,700,000 | $ 5,300,000 | |||
Discontinued Operations, Disposed of by Sale | LED Business, Transition Services Agreement | Accounts Receivable, Net | |||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||
Administrative fees | $ 600,000 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Dec. 25, 2022 | Dec. 25, 2022 | Jun. 26, 2022 | |
Revenue from Contract with Customer [Abstract] | |||
Contract liabilities | $ 45,600,000 | $ 45,600,000 | $ 47,800,000 |
Revenue recognized during period | $ 0 | $ 0 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue from External Customers by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 25, 2022 | Dec. 26, 2021 | |
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 216.1 | $ 173.1 | $ 457.4 | $ 329.7 |
Geographic Concentration Risk | Revenue from Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | 216.1 | 173.1 | 457.4 | 329.7 |
Europe | Geographic Concentration Risk | Revenue from Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 63.6 | $ 61.7 | $ 139.3 | $ 119.8 |
% of Revenue | 29.40% | 35.60% | 30.50% | 36.30% |
China | Geographic Concentration Risk | Revenue from Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 52 | $ 49.7 | $ 118 | $ 92.6 |
% of Revenue | 24.10% | 28.70% | 25.80% | 28.10% |
United States | Geographic Concentration Risk | Revenue from Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 53.3 | $ 32.7 | $ 103.7 | $ 58.7 |
% of Revenue | 24.70% | 18.90% | 22.70% | 17.80% |
Asia Pacific (excluding China) | Geographic Concentration Risk | Revenue from Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 46.1 | $ 28.5 | $ 93.9 | $ 57.9 |
% of Revenue | 21.30% | 16.50% | 20.50% | 17.60% |
Other | Geographic Concentration Risk | Revenue from Contract with Customer | ||||
Disaggregation of Revenue [Line Items] | ||||
Revenue | $ 1.1 | $ 0.5 | $ 2.5 | $ 0.7 |
% of Revenue | 0.50% | 0.30% | 0.50% | 0.20% |
Leases - Narrative (Details)
Leases - Narrative (Details) ft² in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2022 USD ($) ft² | Dec. 26, 2021 USD ($) | Dec. 25, 2022 USD ($) ft² | Dec. 26, 2021 USD ($) | |
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 2.5 | $ 3.3 | $ 4.7 | $ 4.8 |
Finance lease amortization | 0.2 | 0.3 | 0.4 | 0.7 |
Interest expense on finance leases (less than) | $ 0.1 | 0.1 | $ 0.1 | 0.2 |
Area of property in lease agreement (square feet) | ft² | 58 | 58 | ||
Lease income per year | $ 3.6 | $ 3.6 | ||
Operating lease, term of contract | 24 months | 24 months | ||
Lease income | $ 0.9 | $ 0.9 | $ 1.8 | $ 1.8 |
Future minimum rental income | $ 0.6 | $ 0.6 | ||
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Notice of termination (in days) | 60 days | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Notice of termination (in days) | 30 days | |||
New York | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of finance lease (in years) | 49 years | 49 years |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Dec. 25, 2022 | Jun. 26, 2022 |
Operating Leases: | ||
Right-of-use asset | $ 58.1 | $ 48.5 |
Current lease liability | 5.3 | 4.6 |
Non-current lease liability | 57.3 | 43.6 |
Total operating lease liabilities | 62.6 | 48.2 |
Finance Leases: | ||
Finance lease assets | 10 | 10.3 |
Current portion of finance lease liabilities | 0.5 | 0.5 |
Finance lease liabilities, less current portion | 9.4 | 9.6 |
Total finance lease liabilities | $ 9.9 | $ 10.1 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net | Property and equipment, net |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 25, 2022 | Dec. 26, 2021 | |
Cash (used in) provided by operating activities: | ||
Cash paid for operating leases | $ (2.7) | $ (4.2) |
Cash received from tenant improvement allowance on operating lease | 3.1 | 0 |
Cash paid for interest portion of financing leases | (0.1) | (0.1) |
Cash used in financing activities: | ||
Cash paid for principal portion of finance leases | $ (0.3) | $ (0.2) |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Dec. 25, 2022 | Jun. 26, 2022 |
Operating Leases | ||
June 25, 2023 (remainder of fiscal 2023) | $ 3.4 | |
June 30, 2024 | 9.2 | |
June 29, 2025 | 9.9 | |
June 28, 2026 | 9.7 | |
June 27, 2027 | 8.4 | |
Thereafter | 67.1 | |
Total lease payments | 107.7 | |
Future tenant improvement allowances | (18.5) | |
Imputed lease interest | (26.6) | |
Total lease liabilities | 62.6 | $ 48.2 |
Finance Leases | ||
June 25, 2023 (remainder of fiscal 2023) | 0.4 | |
June 30, 2024 | 0.7 | |
June 29, 2025 | 0.7 | |
June 28, 2026 | 0.7 | |
June 27, 2027 | 0.4 | |
Thereafter | 14.2 | |
Total lease payments | 17.1 | |
Future tenant improvement allowances | 0 | |
Imputed lease interest | (7.2) | |
Total lease liabilities | 9.9 | $ 10.1 |
Total | ||
June 25, 2023 (remainder of fiscal 2023) | 3.8 | |
June 30, 2024 | 9.9 | |
June 29, 2025 | 10.6 | |
June 28, 2026 | 10.4 | |
June 27, 2027 | 8.8 | |
Thereafter | 81.3 | |
Total lease payments | 124.8 | |
Future tenant improvement allowances | (18.5) | |
Imputed lease interest | (33.8) | |
Total lease liabilities | $ 72.5 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Terms and Discount Rates (Details) | 6 Months Ended |
Dec. 25, 2022 | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term of operating leases (in months) | 134 months |
Weighted average remaining lease term of finance leases (in months) | 556 months |
Weighted average discount rate of operating leases (as a percent) | 4.46% |
Weighted average discount rate of finance leases (as a percent) | 2.68% |
Weighted average remaining lease term of finance leases excluding 49-year ground lease (in months) | 47 months |
Weighted average discount rate of finance leases excluding 49-year ground lease (as a percent) | 3.49% |
New York | |
Lessee, Lease, Description [Line Items] | |
Term of finance lease (in years) | 49 years |
Financial Statement Details - A
Financial Statement Details - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Dec. 25, 2022 | Jun. 26, 2022 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Gross receivables | $ 170 | $ 151.4 |
Allowance for bad debts | (0.7) | (1.2) |
Accounts receivable, net | 169.3 | 150.2 |
Royalties | ||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Gross receivables | 0.8 | 0.7 |
Billed trade receivables | ||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Gross receivables | 166.6 | 148 |
Unbilled contract receivables | ||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Gross receivables | $ 2.6 | $ 2.7 |
Financial Statement Details -_2
Financial Statement Details - Allowance for Bad Debts (Details) $ in Millions | 6 Months Ended |
Dec. 25, 2022 USD ($) | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of period | $ 1.2 |
Balance at end of period | 0.7 |
SEC Schedule, 12-09, Allowance, Notes Receivable | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of period | 1.2 |
Current period provision change | (0.5) |
Write-offs, net of recoveries | 0 |
Balance at end of period | $ 0.7 |
Financial Statement Details - I
Financial Statement Details - Inventories (Details) - USD ($) $ in Millions | Dec. 25, 2022 | Jun. 26, 2022 |
Inventory, Net [Abstract] | ||
Raw material | $ 84 | $ 60.2 |
Work-in-progress | 146.8 | 135.9 |
Finished goods | 35.8 | 30.9 |
Inventories | $ 266.6 | $ 227 |
Financial Statement Details - O
Financial Statement Details - Other Current Assets (Details) - USD ($) $ in Millions | Dec. 25, 2022 | Jun. 26, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Reimbursement receivable on long-term incentive agreement | $ 111.6 | $ 132.5 |
Accrued interest receivable | 11.2 | 5.9 |
Receivable on Wafer Supply Agreement | 1.6 | 2.7 |
Inventory related to Wafer Supply Agreement | 2.8 | 3.9 |
Deferred product costs | 0.3 | 2.5 |
Other | 5.9 | 3.9 |
Other current assets | $ 133.4 | $ 151.4 |
Financial Statement Details -_3
Financial Statement Details - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Dec. 25, 2022 | Jun. 26, 2022 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable, trade | $ 132.2 | $ 57.8 |
Accrued salaries and wages | 54.9 | 80.6 |
Accrued property and equipment | 156.8 | 132.1 |
Accrued expenses and other | 45.2 | 37.2 |
Accounts payable and accrued expenses | $ 389.1 | $ 307.7 |
Financial Statement Details -_4
Financial Statement Details - Other Operating Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 25, 2022 | Dec. 26, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Factory start-up costs | $ 37.6 | $ 11 | $ 76 | $ 19.6 |
Project, transformation and transaction costs | 4.5 | 2.5 | 7.5 | 4.1 |
Restructuring costs | 0.2 | 2.1 | 0.2 | 4.7 |
Non-restructuring related executive severance | 0.3 | 0 | 1.3 | 0 |
Other operating expense | $ 42.6 | $ 15.6 | $ 85 | $ 28.4 |
Financial Statement Details -_5
Financial Statement Details - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 6 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Jun. 26, 2022 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net unrealized gain on available-for-sale securities | $ (28.6) | $ (25.3) | |
Unrealized gain (loss) on available-for-sale securities | $ (2.4) | $ (2.4) |
Financial Statement Details - N
Financial Statement Details - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 25, 2022 | Dec. 26, 2021 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Nonoperating Income (Expense) | $ 0.8 | $ (27.8) | $ 50.5 | $ (31.9) |
Accrued property and equipment | 156.8 | 135.7 | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Nonoperating Income (Expense) | $ 0.1 | $ 0.3 | ||
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income | Maximum | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Nonoperating Income (Expense) | $ 0.1 | $ 0.1 |
Financial Statement Details -_6
Financial Statement Details - Non-Operating Expense, Net (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 25, 2022 | Dec. 26, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Gain on arbitration proceedings | $ (0.9) | $ 0 | $ (50.3) | $ 0 |
Loss on extinguishment of debt | 0 | 24.8 | 0 | 24.8 |
Interest income | (11.6) | (2.4) | (15.9) | (5) |
Interest expense, net of capitalized interest | 7.8 | 5.3 | 12.6 | 12 |
Loss on Wafer Supply Agreement | 2.6 | 0.1 | 2.5 | 0.9 |
Gain on sale of investments, net | 0 | (0.1) | 0 | (0.3) |
Other, net | 1.3 | 0.1 | 0.6 | (0.5) |
Non-operating (income) expense, net | $ (0.8) | $ 27.8 | $ (50.5) | $ 31.9 |
Financial Statement Details -_7
Financial Statement Details - Non-cash Activities (Details) - USD ($) $ in Millions | 6 Months Ended | |
Dec. 25, 2022 | Dec. 26, 2021 | |
Statements of Cash Flows - non-cash activities | ||
Lease asset and liability additions | $ 12.7 | $ 5.6 |
Lease asset and liability modifications, net | 0.6 | 2.9 |
Lease terminations | 0 | (0.2) |
Settlement of 2023 Notes in shares of common stock | 0 | 416.1 |
Decrease in property, plant and equipment from investment tax credit receivables | 24.3 | 0 |
Decrease in property, plant and equipment from long-term incentive related receivables | $ 49.8 | $ 81.1 |
Investments - Short-term Invest
Investments - Short-term Investments by Type (Details) - USD ($) | Dec. 25, 2022 | Jun. 26, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,425,500,000 | $ 772,200,000 |
Gross Unrealized Gains | 200,000 | 100,000 |
Gross Unrealized Losses | (26,400,000) | (23,000,000) |
Credit Loss Allowance | 0 | 0 |
Estimated Fair Value | 1,399,300,000 | 749,300,000 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 618,200,000 | 465,800,000 |
Gross Unrealized Gains | 100,000 | 0 |
Gross Unrealized Losses | (20,200,000) | (17,800,000) |
Credit Loss Allowance | 0 | 0 |
Estimated Fair Value | 598,100,000 | 448,000,000 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 251,200,000 | 66,500,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,100,000) | (700,000) |
Credit Loss Allowance | 0 | 0 |
Estimated Fair Value | 250,100,000 | 65,800,000 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 196,900,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Credit Loss Allowance | 0 | |
Estimated Fair Value | 196,900,000 | |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 180,600,000 | 166,500,000 |
Gross Unrealized Gains | 100,000 | 100,000 |
Gross Unrealized Losses | (5,000,000) | (4,400,000) |
Credit Loss Allowance | 0 | 0 |
Estimated Fair Value | 175,700,000 | 162,200,000 |
Variable rate demand notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 94,400,000 | 69,400,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Credit Loss Allowance | 0 | 0 |
Estimated Fair Value | 94,400,000 | 69,400,000 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 64,000,000 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | 0 | |
Credit Loss Allowance | 0 | |
Estimated Fair Value | 64,000,000 | |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 20,200,000 | 4,000,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (100,000) | (100,000) |
Credit Loss Allowance | 0 | 0 |
Estimated Fair Value | $ 20,100,000 | $ 3,900,000 |
Investments - Investment Securi
Investments - Investment Securities, Aggregated by Investment Type and Length of Time (Details) $ in Millions | Dec. 25, 2022 USD ($) security | Jun. 26, 2022 USD ($) security |
Fair Value | ||
Less than 12 Months | $ 608.1 | $ 650.8 |
Greater than 12 Months | 184 | 9.3 |
Total | 792.1 | 660.1 |
Unrealized Loss | ||
Less than 12 Months | (16.4) | (22.6) |
Greater than 12 Months | (10) | (0.4) |
Total | $ (26.4) | $ (23) |
Number of securities with an unrealized loss | ||
Less than 12 Months | security | 265 | 346 |
Greater than 12 Months | security | 90 | 5 |
Total | security | 355 | 351 |
Corporate bonds | ||
Fair Value | ||
Less than 12 Months | $ 361 | $ 431.1 |
Greater than 12 Months | 146.4 | 8.3 |
Total | 507.4 | 439.4 |
Unrealized Loss | ||
Less than 12 Months | (12.1) | (17.4) |
Greater than 12 Months | (8.1) | (0.4) |
Total | (20.2) | (17.8) |
Municipal bonds | ||
Fair Value | ||
Less than 12 Months | 108.5 | 150 |
Greater than 12 Months | 35.7 | 1 |
Total | 144.2 | 151 |
Unrealized Loss | ||
Less than 12 Months | (3.2) | (4.4) |
Greater than 12 Months | (1.8) | 0 |
Total | (5) | (4.4) |
U.S. treasury securities | ||
Fair Value | ||
Less than 12 Months | 133.6 | 65.8 |
Greater than 12 Months | 0 | 0 |
Total | 133.6 | 65.8 |
Unrealized Loss | ||
Less than 12 Months | (1.1) | (0.7) |
Greater than 12 Months | 0 | 0 |
Total | (1.1) | (0.7) |
U.S. agency securities | ||
Fair Value | ||
Less than 12 Months | 5 | 3.9 |
Greater than 12 Months | 1.9 | 0 |
Total | 6.9 | 3.9 |
Unrealized Loss | ||
Less than 12 Months | 0 | (0.1) |
Greater than 12 Months | (0.1) | 0 |
Total | $ (0.1) | $ (0.1) |
Investments - Narrative (Detail
Investments - Narrative (Details) | Dec. 25, 2022 USD ($) security | Jun. 26, 2022 USD ($) security |
Net Investment Income [Line Items] | ||
Number of instruments in loss position | security | 265 | 346 |
Fair value of instruments in loss position | $ 608,100,000 | $ 650,800,000 |
Unrealized loss | 16,400,000 | 22,600,000 |
Accrued interest receivable | 11,200,000 | 5,900,000 |
Credit Loss Allowance | $ 0 | $ 0 |
Cash and Cash Equivalents | ||
Net Investment Income [Line Items] | ||
Number of instruments in loss position | security | 10 | 6 |
Fair value of instruments in loss position | $ 104,700,000 | $ 69,000,000 |
Unrealized loss | $ 100,000 | $ 100,000 |
Investments - Contractual Matur
Investments - Contractual Maturities of Marketable Investments (Details) - USD ($) $ in Millions | Dec. 25, 2022 | Jun. 26, 2022 |
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | $ 836.9 | |
After One, Within Five Years | 468 | |
After Five, Within Ten Years | 14.7 | |
After Ten Years | 79.7 | |
Total | 1,399.3 | $ 749.3 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 298 | |
After One, Within Five Years | 300.1 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 598.1 | 448 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 196.8 | |
After One, Within Five Years | 53.3 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 250.1 | 65.8 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 196.9 | |
After One, Within Five Years | 0 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 196.9 | 0 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 66.1 | |
After One, Within Five Years | 109.6 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 175.7 | 162.2 |
Variable rate demand notes | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 0 | |
After One, Within Five Years | 0 | |
After Five, Within Ten Years | 14.7 | |
After Ten Years | 79.7 | |
Total | 94.4 | 69.4 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 64 | |
After One, Within Five Years | 0 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 64 | |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 15.1 | |
After One, Within Five Years | 5 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | $ 20.1 | $ 3.9 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary (Details) - USD ($) $ in Millions | Dec. 25, 2022 | Jun. 26, 2022 |
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | $ 676.3 | $ 244.3 |
Total short-term investments | 1,399.3 | 749.3 |
Total cash equivalents and short-term investments | 2,075.6 | 993.6 |
Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 598.1 | 448 |
U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 250.1 | 65.8 |
Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 196.9 | 0 |
Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 175.7 | 162.2 |
Variable rate demand notes | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 94.4 | 69.4 |
Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 64 | 0 |
U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 20.1 | 3.9 |
U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 307 | 69 |
Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 253.5 | 115.9 |
Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 67.6 | 59.4 |
Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 38.8 | 0 |
Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 8.4 | 0 |
Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 1 | 0 |
Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 560.5 | 184.9 |
Total short-term investments | 250.1 | 65.8 |
Total cash equivalents and short-term investments | 810.6 | 250.7 |
Level 1 | Corporate bonds | ||
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 | 250.1 | 65.8 |
Level 1 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 1 | Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 1 | Variable rate demand notes | ||
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 | 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 cash equivalents | 307 | 69 |
Level 1 | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 253.5 | 115.9 |
Level 1 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 1 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 1 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 1 | Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 115.8 | 59.4 |
Total short-term investments | 1,149.2 | 683.5 |
Total cash equivalents and short-term investments | 1,265 | 742.9 |
Level 2 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 598.1 | 448 |
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 | 196.9 | 0 |
Level 2 | Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 175.7 | 162.2 |
Level 2 | Variable rate demand notes | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 94.4 | 69.4 |
Level 2 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 64 | 0 |
Level 2 | U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 20.1 | 3.9 |
Level 2 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 2 | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 2 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 67.6 | 59.4 |
Level 2 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 38.8 | 0 |
Level 2 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 8.4 | 0 |
Level 2 | Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | $ 1 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Narrative (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 25, 2022 | Dec. 26, 2021 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Changes in Goodwill | $ 0 | |||
Amortization of acquisition-related intangibles | $ 2,800,000 | $ 3,600,000 | 5,700,000 | $ 7,200,000 |
Patent and licensing rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 1,300,000 | $ 1,500,000 | $ 2,500,000 | $ 2,800,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Components of Intangible Assets, Net (Details) - USD ($) $ in Millions | Dec. 25, 2022 | Jun. 26, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 241.1 | $ 242.5 |
Accumulated Amortization | (121.1) | (117.1) |
Total future amortization expense | 120 | 125.4 |
Acquisition related intangible assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 177 | 177 |
Accumulated Amortization | (82.7) | (77) |
Total future amortization expense | 94.3 | 100 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 96.8 | 96.8 |
Accumulated Amortization | (34.3) | (31.2) |
Total future amortization expense | 62.5 | 65.6 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 68 | 68 |
Accumulated Amortization | (36.2) | (33.6) |
Total future amortization expense | 31.8 | 34.4 |
Non-compete agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 12.2 | 12.2 |
Accumulated Amortization | (12.2) | (12.2) |
Total future amortization expense | 0 | 0 |
Patent and licensing rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 64.1 | 65.5 |
Accumulated Amortization | (38.4) | (40.1) |
Total future amortization expense | $ 25.7 | $ 25.4 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | Dec. 25, 2022 | Jun. 26, 2022 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
June 25, 2023 (remainder of fiscal 2023) | $ 7.8 | |
June 30, 2024 | 14.5 | |
June 29, 2025 | 13.5 | |
June 28, 2026 | 11.7 | |
June 27, 2027 | 11.2 | |
Thereafter | 61.3 | |
Total future amortization expense | 120 | $ 125.4 |
Acquisition Related Intangibles | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
June 25, 2023 (remainder of fiscal 2023) | 5.5 | |
June 30, 2024 | 10.4 | |
June 29, 2025 | 10.4 | |
June 28, 2026 | 9.3 | |
June 27, 2027 | 9.3 | |
Thereafter | 49.4 | |
Total future amortization expense | 94.3 | 100 |
Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
June 25, 2023 (remainder of fiscal 2023) | 2.3 | |
June 30, 2024 | 4.1 | |
June 29, 2025 | 3.1 | |
June 28, 2026 | 2.4 | |
June 27, 2027 | 1.9 | |
Thereafter | 11.9 | |
Total future amortization expense | $ 25.7 | $ 25.4 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) | 1 Months Ended | 3 Months Ended | 6 Months Ended | |||||||||||
Nov. 21, 2022 USD ($) day $ / shares | Feb. 03, 2022 USD ($) day $ / shares | Apr. 21, 2020 USD ($) day $ / shares | Aug. 24, 2018 USD ($) shares | Apr. 30, 2020 USD ($) | Dec. 25, 2022 USD ($) | Dec. 26, 2021 USD ($) | Jun. 28, 2020 USD ($) | Dec. 25, 2022 USD ($) day | Dec. 26, 2021 USD ($) | Nov. 16, 2022 $ / shares | Jun. 26, 2022 USD ($) | Jan. 31, 2022 $ / shares | Dec. 08, 2021 USD ($) | |
Debt Instrument [Line Items] | ||||||||||||||
Repurchase of aggregate principal amount of debt instrument | $ 300,000 | $ 20,200,000 | ||||||||||||
Cash paid for capped call transactions | 273,900,000 | 0 | ||||||||||||
Cap price (in USD per share) | $ / shares | $ 202.538 | $ 212.04 | ||||||||||||
Capped call premium (as a percent) | 130% | 125% | ||||||||||||
Loss on extinguishment of debt | $ 0 | $ (24,800,000) | 0 | (24,800,000) | ||||||||||
Convertible Notes | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Carrying amount of equity component of convertible debt | 0 | 0 | $ 333,000,000 | |||||||||||
Interest expense capitalized | 0 | 2,600,000 | $ 0 | 4,900,000 | ||||||||||
Discount and issuance costs capitalized | $ 5,800,000 | $ 11,200,000 | ||||||||||||
Convertible Notes | Conversion Circumstance One | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Threshold percentage of stock price trigger (as a percent) | 130% | |||||||||||||
Threshold trading days | day | 20 | |||||||||||||
Threshold consecutive trading days | day | 30 | |||||||||||||
Convertible Notes | Level 2 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Fair value of debt instrument | 3,300,000,000 | $ 3,300,000,000 | ||||||||||||
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 issuance of long-term debt | $ 562,100,000 | |||||||||||||
Repurchase of aggregate principal amount of debt instrument | $ 150,200,000 | |||||||||||||
Conversion rate (shares) | shares | 7,100,000 | |||||||||||||
Issuance of convertible notes due February 15, 2028 | $ 788,000,000 | |||||||||||||
Decrease in accrued interest from repurchase of debt | 200,000 | |||||||||||||
Carrying amount of equity component of convertible debt | 110,600,000 | 110,600,000 | ||||||||||||
Decrease in carrying amount of equity component of convertible debt | $ 27,700,000 | |||||||||||||
Fair value of debt instrument | $ 416,100,000 | |||||||||||||
Debt extinguishment | $ 24,700,000 | |||||||||||||
Loss on extinguishment of debt | (24,800,000) | |||||||||||||
Third party fees | 100,000 | |||||||||||||
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 issuance of long-term debt | $ 561,400,000 | |||||||||||||
Conversion price (USD per share) | $ / shares | $ 47.32 | |||||||||||||
Scheduled trading days | day | 40 | |||||||||||||
Threshold percentage of stock price trigger (as a percent) | 130% | |||||||||||||
Threshold trading days | day | 20 | |||||||||||||
Threshold consecutive trading days | day | 30 | |||||||||||||
Redemption price (as a percent) | 100% | |||||||||||||
Period of reported sale price of common stock | day | 5 | |||||||||||||
Period of consecutive reported sale price of common stock | day | 10 | |||||||||||||
Percentage of product of last reported price (as a percent) | 98% | |||||||||||||
Proceeds from Notes used to repurchase debt | $ 144,300,000 | |||||||||||||
Carrying amount of equity component of convertible debt | 145,400,000 | 145,400,000 | ||||||||||||
Principal amount exceeded on if-converted debt | 303,300,000 | |||||||||||||
Convertible Notes | Convertible Notes Due 2028 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Aggregate principal amount | $ 650,000,000 | |||||||||||||
Stated interest rate (as a percent) | 0.25% | |||||||||||||
Proceeds from issuance of long-term debt | $ 732,300,000 | |||||||||||||
Conversion price (USD per share) | $ / shares | $ 127.22 | |||||||||||||
Scheduled trading days | day | 40 | |||||||||||||
Threshold percentage of stock price trigger (as a percent) | 130% | |||||||||||||
Threshold trading days | day | 20 | |||||||||||||
Threshold consecutive trading days | day | 30 | |||||||||||||
Redemption price (as a percent) | 100% | |||||||||||||
Period of reported sale price of common stock | day | 5 | |||||||||||||
Period of consecutive reported sale price of common stock | day | 10 | |||||||||||||
Percentage of product of last reported price (as a percent) | 98% | |||||||||||||
Cash paid for capped call transactions | $ 108,200,000 | |||||||||||||
Carrying amount of equity component of convertible debt | 187,600,000 | 187,600,000 | ||||||||||||
Convertible Notes | Convertible Notes Due 2028 | Underwriters | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Aggregate principal amount | $ 100,000,000 | |||||||||||||
Convertible Notes | Convertible Notes Due 2029 | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Aggregate principal amount | $ 1,525,000,000 | |||||||||||||
Stated interest rate (as a percent) | 1.875% | |||||||||||||
Proceeds from issuance of long-term debt | $ 1,718,600,000 | |||||||||||||
Conversion price (USD per share) | $ / shares | $ 118.88 | |||||||||||||
Scheduled trading days | day | 40 | |||||||||||||
Threshold percentage of stock price trigger (as a percent) | 130% | |||||||||||||
Threshold trading days | day | 20 | |||||||||||||
Threshold consecutive trading days | day | 30 | |||||||||||||
Redemption price (as a percent) | 100% | |||||||||||||
Period of reported sale price of common stock | day | 5 | |||||||||||||
Period of consecutive reported sale price of common stock | day | 10 | |||||||||||||
Percentage of product of last reported price (as a percent) | 98% | |||||||||||||
Cash paid for capped call transactions | $ 273,900,000 | |||||||||||||
Convertible Notes | Convertible Notes Due 2029 | Underwriters | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Aggregate principal amount | $ 225,000,000 | |||||||||||||
Line of Credit | ||||||||||||||
Debt Instrument [Line Items] | ||||||||||||||
Maximum borrowing capacity | $ 125,000,000 | $ 125,000,000 | ||||||||||||
Minimum required ratio of cash equivalents and marketable securities to outstanding loans and letters of credit obligations | 1.25 | 1.25 | ||||||||||||
Outstanding borrowings | $ 0 | $ 0 | ||||||||||||
Remaining borrowing capacity | $ 125,000,000 | $ 125,000,000 | ||||||||||||
Average interest rate (as a percent) | 0% | |||||||||||||
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 | Dec. 25, 2022 | Jun. 26, 2022 |
Liability Component: | ||
Principal | $ 3,075 | $ 1,325 |
Unamortized discount and issuance costs | (54) | (303.4) |
Net carrying amount | 3,021 | 1,021.6 |
Equity Component: | ||
Discount related to value of conversion option | 0 | 341.1 |
Debt issuance costs | 0 | (8.1) |
Net carrying amount | $ 0 | $ 333 |
Long-term Debt - Interest Expen
Long-term Debt - Interest Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 25, 2022 | Dec. 26, 2021 | |
Debt Instrument [Line Items] | ||||
Amortization of discount and debt issuance costs, net of capitalized interest | $ 2.9 | $ 9 | ||
Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Interest expense, net of capitalized interest | $ 5.7 | $ 0.8 | 8.7 | 1.9 |
Amortization of discount and debt issuance costs, net of capitalized interest | 1.6 | 3.9 | 2.9 | 9 |
Total interest expense, net | $ 7.3 | $ 4.7 | $ 11.6 | $ 10.9 |
Long-term Debt - Phantom (Detai
Long-term Debt - Phantom (Details) | Nov. 21, 2022 | Feb. 03, 2022 | Dec. 24, 2021 | Dec. 08, 2021 | Apr. 21, 2020 |
Convertible Notes due September 1, 2023 | |||||
Debt Instrument [Line Items] | |||||
Conversion ratio (as a percent) | 1.00272222 | ||||
Convertible Notes due September 1, 2023 | Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Conversion rate | 16.6745 | ||||
Convertible Notes due May 1, 2026 | Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Conversion ratio (as a percent) | 0.0211346 | ||||
Convertible Notes Due 2028 | Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Conversion ratio (as a percent) | 0.0078602 | ||||
Convertible Notes Due 2029 | Convertible Notes | |||||
Debt Instrument [Line Items] | |||||
Conversion ratio (as a percent) | 0.0084118 |
Loss Per Share - Summary (Detai
Loss Per Share - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||||
Dec. 25, 2022 | Sep. 25, 2022 | Dec. 26, 2021 | Sep. 26, 2021 | Dec. 25, 2022 | Dec. 26, 2021 | |
Earnings Per Share [Abstract] | ||||||
Net loss | $ (90.9) | $ (26.2) | $ (96.7) | $ (70.1) | $ (117.1) | $ (166.8) |
Weighted average shares - basic (shares) | 124,344 | 117,218 | 124,190 | 117,068 | ||
Weighted average shares - diluted (shares) | 124,344 | 117,218 | 124,190 | 117,068 | ||
Net loss attributable to controlling interest, basic (USD per share) | $ (0.73) | $ (0.82) | $ (0.94) | $ (1.42) | ||
Net loss attributable to controlling interest, diluted (USD per share) | $ (0.73) | $ (0.82) | $ (0.94) | $ (1.42) |
Loss Per Share - Narrative (Det
Loss Per Share - Narrative (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 25, 2022 | Dec. 26, 2021 | |
Earnings Per Share [Abstract] | ||||
Anti-dilutive potential common shares excluded from diluted earnings per share calculation (shares) | 2.8 | 3.1 | 2.8 | 3.3 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) | 6 Months Ended |
Dec. 25, 2022 compensationPlan stockPurchase | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of equity-based compensation plans | compensationPlan | 1 |
Duration of purchase period for ESPP (in months) | 12 months |
Duration of single purchase period for ESPP (in months) | 6 months |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum contribution of employee's compensation (as a percent) | 15% |
Employee stock plan purchase price of fair value (as a percent) | 15% |
Number of times employees can purchase stock per year | stockPurchase | 2 |
Discount from market price, beginning of participation period or purchase date (as a percent) | 15% |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Option Awards Outstanding (Details) shares in Thousands | 6 Months Ended |
Dec. 25, 2022 $ / shares shares | |
Number of Shares | |
Outstanding at beginning of period (shares) | shares | 69 |
Granted (shares) | shares | 0 |
Exercised (shares) | shares | (28) |
Forfeited or expired (shares) | shares | (1) |
Outstanding at end of period (shares) | shares | 40 |
Weighted Average Exercise Price | |
Outstanding at beginning of period (USD per share) | $ / shares | $ 25.12 |
Granted (USD per share) | $ / shares | 0 |
Exercised (USD per share) | $ / shares | 25.46 |
Forfeited or expired (USD per share) | $ / shares | 26.07 |
Outstanding at end of period (USD per share) | $ / shares | $ 24.86 |
Stock-Based Compensation - Nonv
Stock-Based Compensation - Nonvested Shares of Restricted Stock Awards and Restricted Stock Units Outstanding (Details) - Restricted Stock Awards and Restricted Stock Units shares in Thousands | 6 Months Ended |
Dec. 25, 2022 $ / shares shares | |
Number of RSUs | |
Nonvested at beginning of period (shares) | shares | 1,894 |
Granted (shares) | shares | 1,225 |
Vested (shares) | shares | (629) |
Forfeited (shares) | shares | (156) |
Nonvested at end of period (shares) | shares | 2,334 |
Weighted Average Grant-Date Fair Value | |
Nonvested at beginning of period (USD per share) | $ / shares | $ 75.67 |
Granted (USD per share) | $ / shares | 88.41 |
Vested (USD per share) | $ / shares | 66.52 |
Forfeited (USD per share) | $ / shares | 71.44 |
Nonvested at end of period (USD per share) | $ / shares | $ 84.25 |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 25, 2022 | Dec. 26, 2021 | |
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 21.2 | $ 15.4 | $ 43.2 | $ 30 |
Cost of revenue, net | ||||
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 5.8 | 4.2 | 11.9 | 7.3 |
Research and development | ||||
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 5.1 | 2.6 | 8.6 | 5 |
Sales, general and administrative | ||||
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 10.3 | $ 8.6 | $ 22.7 | $ 17.7 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | Dec. 25, 2022 | Jun. 26, 2022 |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | ||
Unrecognized tax benefits | $ 7.2 | $ 7.2 |
Estimated change in gross unrecognized tax benefits | $ 1.7 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 3 Months Ended | 6 Months Ended | 21 Months Ended | |
Jun. 28, 2020 endowedFacultyChair | Dec. 25, 2022 USD ($) | Dec. 26, 2021 USD ($) | Dec. 25, 2022 USD ($) | |
Loss Contingencies [Line Items] | ||||
GDA term | 13 years | |||
Duration of annual commitment fee payment of GDA | 6 years | |||
Number of endowed faculty chairs created | endowedFacultyChair | 2 | |||
Reduction in property, plant, and equipment | $ 334,900,000 | |||
Reimbursement of property and equipment purchases from long-term incentive agreement | $ 70,700,000 | $ 50,800,000 | 220,400,000 | |
Reimbursement of property and equipment purchases from long-term incentive agreement, receivables | 114,500,000 | |||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Annual cost of GDA | 2,700,000 | |||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Potential total grant amount of GDA | 500,000,000 | $ 500,000,000 | ||
Annual cost of GDA | $ 5,200,000 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 25, 2022 | Dec. 26, 2021 | Dec. 25, 2022 | Dec. 26, 2021 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0.2 | $ 2.1 | $ 0.2 | $ 4.7 |
Corporate Restructuring | Employee Severance | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 0.2 | 0.2 | ||
Restructuring costs accrued | $ 0.8 | $ 0.8 | ||
Factory Optimization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | 1.8 | 3.4 | ||
Factory Optimization | Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs | $ 0.3 | $ 1.3 |