XML 42 R32.htm IDEA: XBRL DOCUMENT v3.22.4
Debt (Tables)
 6 Months Ended
Dec. 31, 2022
Debt Disclosure [Abstract]  
Schedule of Convertible Notes
Our convertible notes consisted of the following components as of the periods presented (in millions):
Liability component:December 31, 2022July 2, 2022
2024 Notes (1)
2026 Notes (2)
2028 Notes (3)
2024 Notes (1)
2026 Notes (2)
2028 Notes (3)
Principal$448.1 $1,050.0 $861.0 $448.1 $1,050.0 $861.0 
Unamortized debt discount and issuance costs(27.4)(4.7)(6.0)(38.2)(218.6)(226.3)
Net carrying amount of the liability component$420.7 $1,045.3 $855.0 $409.9 $831.4 $634.7 
(1) If the closing price of our stock exceeds $78.80 (or 130% of the conversion price of $60.62) for 20 of the last 30 trading days of any future fiscal quarter, our 2024 Notes would become convertible at the option of the holders during the next fiscal quarter. During the fourth quarter of fiscal 2022, the 2024 Notes were convertible at the option of the holders and therefore, the debt component of our 2024 Notes was classified as current liabilities in our condensed consolidated balance sheet. Although the 2024 Notes will not be convertible during the third quarter of fiscal 2023 due to our stock price not exceeding $78.80 for 20 of the last 30 trading days of the quarter ended December 31, 2022, we continue to classify the 2024 Notes in current liabilities, as holders may convert their 2024 Notes at any time on or after December 15, 2023 until the close of business on the second scheduled trading day immediately preceding the maturity date.
(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 fiscal quarter, our 2026 Notes would become convertible at the option of the holders during the subsequent fiscal quarter and the debt would be reclassified to current liabilities in our condensed consolidated balance sheet.
(3) If the closing price of our stock exceeds $170.34 (or 130% of the conversion price of $131.03) for 20 of the last 30 trading days of any future fiscal quarter, our 2028 Notes would become convertible at the option of the holders during the subsequent fiscal quarter and the debt 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 EndedSix Months Ended
December 31, 2022January 1, 2022December 31, 2022January 1, 2022
Contractual interest expense$2.7 $1.6 $5.4 $3.2 
Amortization of the debt discount and debt issuance costs6.2 15.5 11.9 30.8 
Total interest expense
$8.9 $17.1 $17.3 $34.0 
Schedule of Future Interest and Principal Payments Related to Debts
The future interest and principal payments related to our convertible notes are as follows as of December 31, 2022 (in millions):
Fiscal Years2024 Notes2026 Notes2028 NotesTotal
Remainder of 2023$0.6 $2.6 $2.2 $5.4 
2024449.2 5.3 4.3 458.8 
2025— 5.3 4.3 9.6 
2026— 5.3 4.3 9.6 
2027 and thereafter— 1,052.4 869.6 1,922.0 
Total convertible notes payments
$449.8 $1,070.9 $884.7 $2,405.4