Debt (Tables)

3 Months Ended

Oct. 02, 2021

Our convertible notes consisted of the following components as of the periods presented (in millions):


Liability component:	October 2, 2021				July 3, 2021
	2024 Notes (1)		2026 Notes (2)		2024 Notes		2026 Notes
Principal	$	450.0	$	1,050.0	$	450.0	$	1,050.0
Unamortized debt discount and issuance costs	(54.2)		(250.0)		(59.3)		(260.2)
Net carrying amount of the liability component	$	395.8	$	800.0	$	390.7	$	789.8

(1) Since the closing price of our stock exceeded $78.80 (or 130% of the conversion price of $60.62) for 20 of the last 30 trading days of the first quarter of fiscal 2022, the 2024 Notes have become convertible at the option of the holders. Therefore, the debt component of our 2024 Notes as of October 2, 2021 has been classified as current liabilities in our condensed consolidated balance sheet.

(2) If the closing price of our stock exceeds $129.08 (or 130% of the conversion price of $99.29) for 20 of the last 30 trading days of any future quarter, our 2026 Notes would also become convertible at the option of the holders and the debt component would be reclassified to current liabilities in our condensed consolidated balance sheet.

Schedule of interest expense

The following table sets forth interest expense information related to the convertible notes for the periods presented (in millions):


	Three Months Ended
	October 2, 2021		September 26, 2020
Contractual interest expense	$	1.6	$	1.6
Amortization of the debt discount and debt issuance costs	15.3		14.4
Total interest expense	$	16.9	$	16.0

Schedule of future interest and principal payments related to our convertible notes

The future interest and principal payments related to our convertible notes are as follows as of October 2, 2021 (in millions):


Fiscal Years	2024 Notes		2026 Notes		Total
Remainder of 2022	$	0.5	$	5.3	$	5.8
2023	1.1		5.3		6.4
2024	451.1		5.3		456.4
2025	—		5.3		5.3
2026	—		5.3		5.3
Thereafter	—		1,052.4		1,052.4
Total convertible notes payments	$	452.7	$	1,078.9	$	1,531.6