QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
(Nasdaq Global Select Market) |
☒ | Accelerated filer | ☐ | ||||||||||||||||||
Non-accelerated filer | ☐ | Smaller reporting company | ||||||||||||||||||
Emerging growth company |
Page No. | ||||||||
Item 1. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 1. | ||||||||
Item 1A. | ||||||||
Item 2. | ||||||||
Item 3. | ||||||||
Item 4. | ||||||||
Item 5. | ||||||||
Item 6. | ||||||||
Three Months Ended | |||||||||||
September 26, 2021 | September 27, 2020 | ||||||||||
Revenue | $ | $ | |||||||||
Cost of goods sold | |||||||||||
Gross margin | |||||||||||
Research and development | |||||||||||
Selling, general, and administrative | |||||||||||
Total operating expenses | |||||||||||
Operating income | |||||||||||
Other expense, net | ( | ( | |||||||||
Income before income taxes | |||||||||||
Income tax expense | ( | ( | |||||||||
Net income | $ | $ | |||||||||
Net income per share: | |||||||||||
Basic | $ | $ | |||||||||
Diluted | $ | $ | |||||||||
Number of shares used in per share calculations: | |||||||||||
Basic | |||||||||||
Diluted | |||||||||||
Three Months Ended | |||||||||||
September 26, 2021 | September 27, 2020 | ||||||||||
Net income | $ | $ | |||||||||
Other comprehensive income (loss), net of tax: | |||||||||||
Foreign currency translation adjustment | ( | ||||||||||
Cash flow hedges: | |||||||||||
Net unrealized losses during the period | ( | ( | |||||||||
Net (gains) losses reclassified into net income | ( | ||||||||||
( | |||||||||||
Available-for-sale investments: | |||||||||||
Net unrealized losses during the period | ( | ( | |||||||||
Net losses reclassified into net income | |||||||||||
( | ( | ||||||||||
Defined benefit plans, net change in unrealized component | ( | ||||||||||
Other comprehensive (loss) income, net of tax | ( | ||||||||||
Comprehensive income | $ | $ |
September 26, 2021 | June 27, 2021 | ||||||||||
(unaudited) | (1) | ||||||||||
ASSETS | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Investments | |||||||||||
Accounts receivable, less allowance of $ | |||||||||||
Inventories | |||||||||||
Prepaid expenses and other current assets | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Restricted cash and investments | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Other assets | |||||||||||
Total assets | $ | $ | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||
Trade accounts payable | $ | $ | |||||||||
Accrued expenses and other current liabilities | |||||||||||
Deferred profit | |||||||||||
Current portion of long-term debt and finance lease obligations | |||||||||||
Total current liabilities | |||||||||||
Long-term debt and finance lease obligations, less current portion | |||||||||||
Income taxes payable | |||||||||||
Other long-term liabilities | |||||||||||
Total liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Stockholders’ equity: | |||||||||||
Preferred stock, at par value of $ | |||||||||||
Common stock, at par value of $ | |||||||||||
Additional paid-in capital | |||||||||||
Treasury stock, at cost; | ( | ( | |||||||||
Accumulated other comprehensive loss | ( | ( | |||||||||
Retained earnings | |||||||||||
Total stockholders’ equity | |||||||||||
Total liabilities and stockholders’ equity | $ | $ |
Three Months Ended | |||||||||||
September 26, 2021 | September 27, 2020 | ||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||
Net income | $ | ||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Deferred income taxes | ( | ( | |||||||||
Equity-based compensation expense | |||||||||||
Other, net | ( | ||||||||||
Changes in operating assets and liabilities | ( | ( | |||||||||
Net cash provided by operating activities | |||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||
Capital expenditures and intangible assets | ( | ( | |||||||||
Purchases of available-for-sale securities | ( | ( | |||||||||
Maturities of available-for-sales securities | |||||||||||
Sales of available-for-sale securities | |||||||||||
Other, net | ( | ( | |||||||||
Net cash provided by (used for) investing activities | ( | ||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||
Principal payments on debt | ( | ( | |||||||||
Treasury stock purchases | ( | ( | |||||||||
Dividends paid | ( | ( | |||||||||
Proceeds from issuance of common stock | |||||||||||
Other, net | ( | ||||||||||
Net cash used for financing activities | ( | ( | |||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | ( | ||||||||||
Net decrease in cash, cash equivalents, and restricted cash | ( | ( | |||||||||
Cash, cash equivalents, and restricted cash at beginning of period | |||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | $ | |||||||||
Schedule of non-cash transactions: | |||||||||||
Accrued payables for stock repurchases | |||||||||||
Accrued payables for capital expenditures | |||||||||||
Dividends payable | |||||||||||
Transfers of finished goods inventory to property and equipment | |||||||||||
Reconciliation of cash, cash equivalents, and restricted cash | September 26, 2021 | September 27, 2020 | |||||||||
Cash and cash equivalents | $ | $ | |||||||||
Restricted cash and cash equivalents | |||||||||||
Total cash, cash equivalents, and restricted cash | $ | $ | |||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
September 26, 2021 | |||||||||||||||||||||||||||||||||||||||||
Common Stock Shares | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||||||||||
Balance at June 27, 2021 | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | — | ||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | ( | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Equity-based compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | ( | — | ( | ||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance at September 26, 2021 | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
September 27, 2020 | |||||||||||||||||||||||||||||||||||||||||
Common Stock Shares | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total | |||||||||||||||||||||||||||||||||||
Balance at June 28, 2020 | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||
Issuance of common stock | — | — | — | ||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | ( | ( | — | ( | — | — | ( | ||||||||||||||||||||||||||||||||||
Equity-based compensation expense | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Effect of conversion of convertible notes | ( | — | — | — | ( | ||||||||||||||||||||||||||||||||||||
Reclassification from temporary to permanent equity | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
— | — | — | — | — | |||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||
Cash dividends declared ($ | — | — | — | — | — | ( | ( | ||||||||||||||||||||||||||||||||||
Balance at September 27, 2020 | $ | $ | $ | ( | $ | ( | $ | $ | |||||||||||||||||||||||||||||||||
Less than 1 Year | 1-3 Years | More than 3 Years | Total | ||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||
Deferred revenue | $ | $ | (1) | $ | $ |
Three Months Ended | |||||||||||
September 26, 2021 | September 27, 2020 | ||||||||||
(In thousands) | |||||||||||
System revenue | $ | $ | |||||||||
Customer support-related revenue and other | |||||||||||
$ | $ |
Three Months Ended | |||||||||||
September 26, 2021 | September 27, 2020 | ||||||||||
(In thousands) | |||||||||||
China | $ | $ | |||||||||
Korea | |||||||||||
Taiwan | |||||||||||
Japan | |||||||||||
Southeast Asia | |||||||||||
United States | |||||||||||
Europe | |||||||||||
$ | $ |
Three Months Ended | |||||||||||
September 26, 2021 | September 27, 2020 | ||||||||||
Memory | % | % | |||||||||
Foundry | % | % | |||||||||
Logic/integrated device manufacturing | % | % |
Three Months Ended | |||||||||||
September 26, 2021 | September 27, 2020 | ||||||||||
(in thousands) | |||||||||||
Equity-based compensation expense | $ | $ | |||||||||
Income tax benefit recognized related to equity-based compensation expense | $ | $ |
Three Months Ended | |||||||||||
September 26, 2021 | September 27, 2020 | ||||||||||
(in thousands) | |||||||||||
Interest income | $ | $ | |||||||||
Interest expense | ( | ( | |||||||||
Gains on deferred compensation plan-related assets, net | |||||||||||
Foreign exchange losses, net | ( | ( | |||||||||
Other, net | ( | ||||||||||
$ | ( | $ | ( |
Three Months Ended | |||||||||||
September 26, 2021 | September 27, 2020 | ||||||||||
(in thousands, except percentages) | |||||||||||
Income tax expense | $ | $ | |||||||||
Effective tax rate | % | % |
Three Months Ended | |||||||||||
September 26, 2021 | September 27, 2020 | ||||||||||
(in thousands, except per share data) | |||||||||||
Numerator: | |||||||||||
Net income | $ | $ | |||||||||
Denominator: | |||||||||||
Basic average shares outstanding | |||||||||||
Effect of potential dilutive securities: | |||||||||||
Employee stock plans | |||||||||||
Convertible notes | |||||||||||
Diluted average shares outstanding | |||||||||||
Net income per share - basic | $ | $ | |||||||||
Net income per share - diluted | $ | $ |
September 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
(Reported Within) | |||||||||||||||||||||||||||||||||||||||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Value | Cash and Cash Equivalents | Investments | Restricted Cash & Investments | Other Assets | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Time deposits | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Mutual funds | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 Total | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate notes and bonds | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage backed securities — commercial | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Level 2 Total | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | $ | $ | $ |
June 27, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||
(Reported Within) | |||||||||||||||||||||||||||||||||||||||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Value | Cash and Cash Equivalents | Investments | Restricted Cash & Investments | Other Assets | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Cash | $ | $ | — | $ | — | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||
Time deposits | — | — | |||||||||||||||||||||||||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Mutual funds | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Level 1 Total | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||||||||||||||||||||
Government-sponsored enterprises | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Corporate notes and bonds | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Mortgage backed securities — residential | |||||||||||||||||||||||||||||||||||||||||||||||
Mortgage backed securities — commercial | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Level 2 Total | ( | ||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | ( | $ | $ | $ | $ | $ |
September 26, 2021 | |||||||||||||||||||||||||||||||||||
Unrealized Losses Less than 12 Months | Unrealized Losses 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | $ | $ | ( | $ | $ | $ | $ | ( | |||||||||||||||||||||||||||
Municipal notes and bonds | ( | ( | |||||||||||||||||||||||||||||||||
Corporate notes and bonds | ( | ( | ( | ||||||||||||||||||||||||||||||||
Mortgage backed securities — commercial | ( | ( | |||||||||||||||||||||||||||||||||
$ | $ | ( | $ | $ | ( | $ | $ | ( |
Cost | Fair Value | ||||||||||
(in thousands) | |||||||||||
Due in one year or less | $ | $ | |||||||||
Due after one year through five years | |||||||||||
Due in more than five years | |||||||||||
$ | $ |
September 26, 2021 | |||||
(In thousands) | |||||
Buy Contracts | $ | ||||
Sell Contracts |
Three Months Ended | ||||||||||||||
September 26, 2021 | ||||||||||||||
Location of Gain or (Loss) Recognized in or Reclassified into Net Income | Loss Recognized in AOCI | Gain (Loss) Reclassified from AOCI into Net Income | ||||||||||||
Derivatives in Cash Flow Hedging Relationships | (in thousands) | |||||||||||||
Foreign Exchange Contracts | Revenue | $ | ( | $ | ||||||||||
Foreign Exchange Contracts | Cost of goods sold | ( | ( | |||||||||||
Foreign Exchange Contracts | Research and Development | ( | ||||||||||||
Foreign Exchange Contracts | Selling, general, and administrative | ( | ( | |||||||||||
Interest Rate Contracts | Other expense, net | ( | ||||||||||||
$ | ( | $ |
Three Months Ended | ||||||||||||||
September 27, 2020 | ||||||||||||||
Location of Gain or (Loss) Recognized in or Reclassified into Income | (Loss) Gain Recognized in AOCI | (Loss) Gain Reclassified from AOCI into Net Income | ||||||||||||
Derivatives in Cash Flow Hedging Relationships | (in thousands) | |||||||||||||
Foreign Exchange Contracts | Revenue | $ | ( | $ | ( | |||||||||
Foreign Exchange Contracts | Cost of goods sold | |||||||||||||
Foreign Exchange Contracts | Research and Development | |||||||||||||
Foreign Exchange Contracts | Selling, general, and administrative | |||||||||||||
Interest Rate Contracts | Other expense, net | ( | ||||||||||||
$ | ( | $ | ( |
September 26, 2021 | |||||
(In thousands) | |||||
Buy Contracts | $ | ||||
Sell Contracts |
Three Months Ended | ||||||||||||||
September 26, 2021 | September 27, 2020 | |||||||||||||
Derivatives Not Designated as Hedging Instruments: | Location of Gain Recognized in Income | Gain Recognized in Net Income | Gain Recognized in Net Income | |||||||||||
(in thousands) | ||||||||||||||
Foreign Exchange Contracts | Other expense, net | $ | $ |
September 26, 2021 | June 27, 2021 | ||||||||||
(in thousands) | |||||||||||
Raw materials | $ | $ | |||||||||
Work-in-process | |||||||||||
Finished goods | |||||||||||
$ | $ |
September 26, 2021 | June 27, 2021 | ||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||
Customer relationships | $ | $ | ( | $ | $ | $ | ( | $ | |||||||||||||||||||||||||||
Existing technology | ( | ( | |||||||||||||||||||||||||||||||||
Patents and other intangible assets | ( | ( | |||||||||||||||||||||||||||||||||
Total intangible assets | $ | $ | ( | $ | $ | $ | ( | $ |
Fiscal Year | Amount | ||||
(in thousands) | |||||
2022 (remaining 9 months) | $ | ||||
2023 | |||||
2024 | |||||
2025 | |||||
2026 | |||||
Thereafter | |||||
$ |
September 26, 2021 | June 27, 2021 | ||||||||||
(in thousands) | |||||||||||
Accrued compensation | $ | $ | |||||||||
Warranty reserves | |||||||||||
Income and other taxes payable | |||||||||||
Dividend payable | |||||||||||
Other | |||||||||||
$ | $ |
September 26, 2021 | June 27, 2021 | |||||||||||||||||||||||||
Amount (in thousands) | Effective Interest Rate | Amount (in thousands) | Effective Interest Rate | |||||||||||||||||||||||
Fixed-rate | % | % | ||||||||||||||||||||||||
Fixed-rate | % | % | ||||||||||||||||||||||||
Fixed-rate | % | % | ||||||||||||||||||||||||
Fixed-rate | % | % | ||||||||||||||||||||||||
Fixed-rate | % | % | ||||||||||||||||||||||||
Fixed-rate | % | % | ||||||||||||||||||||||||
Fixed-rate | % | % | ||||||||||||||||||||||||
Total debt outstanding, at par | ||||||||||||||||||||||||||
Unamortized discount | ( | ( | ||||||||||||||||||||||||
Fair value adjustment - interest rate contracts | (1) | (1) | ||||||||||||||||||||||||
Unamortized bond issuance costs | ( | ( | ||||||||||||||||||||||||
Total debt outstanding, at carrying value | $ | $ | ||||||||||||||||||||||||
Reported as: | ||||||||||||||||||||||||||
Long-term debt | $ | $ | ||||||||||||||||||||||||
Remaining Amortization period | Fair Value of Notes (Level 2) | ||||||||||
(years) | (in thousands) | ||||||||||
2025 Notes | $ | ||||||||||
2026 Notes | $ | ||||||||||
2029 Notes | $ | ||||||||||
2030 Notes | $ | ||||||||||
2049 Notes | $ | ||||||||||
2050 Notes | $ | ||||||||||
2060 Notes | $ |
Three Months Ended | |||||||||||
September 26, 2021 | September 27, 2020 | ||||||||||
(in thousands) | |||||||||||
Contractual interest coupon | $ | $ | |||||||||
Amortization of interest discount | |||||||||||
Amortization of issuance costs | |||||||||||
Effect of interest rate contracts, net | |||||||||||
Total interest cost recognized | $ | $ |
Three Months Ended | |||||||||||
September 26, 2021 | September 27, 2020 | ||||||||||
(in thousands) | |||||||||||
Balance at beginning of period | $ | $ | |||||||||
Warranties issued during the period | |||||||||||
Settlements made during the period | ( | ( | |||||||||
Changes in liability for pre-existing warranties | ( | ||||||||||
Balance at end of period | $ | $ |
Period | Total Number of Shares Repurchased | Total Cost of Repurchase | Average Price Paid Per Share (1) | Amount Available Under Repurchase Program | |||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||
Available balance as of June 27, 2021 | $ | ||||||||||||||||||||||
Quarter ended September 26, 2021 | $ | $ | $ | ||||||||||||||||||||
Accumulated Foreign Currency Translation Adjustment | Accumulated Unrealized Gain or Loss on Cash flow hedges | Accumulated Unrealized Holding Gain or Loss on Available-For-Sale Investments | Accumulated Unrealized Components of Defined Benefit Plans | Total | |||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Balance at June 27, 2021 | $ | ( | $ | ( | $ | $ | ( | $ | ( | ||||||||||||||||||||
Other comprehensive (loss) income before reclassifications | ( | ( | ( | ( | |||||||||||||||||||||||||
(Gains) losses reclassified from accumulated other comprehensive loss to net income (1) | ( | ( | |||||||||||||||||||||||||||
Net current-period other comprehensive (loss) income | ( | ( | ( | ( | |||||||||||||||||||||||||
Balance at September 26, 2021 | $ | ( | $ | ( | $ | $ | ( | $ | ( |
Three Months Ended | |||||||||||||||||
September 26, 2021 | June 27, 2021 | September 27, 2020 | |||||||||||||||
(in thousands, except per share data and percentages) | |||||||||||||||||
Revenue | $ | 4,304,465 | $ | 4,145,179 | $ | 3,177,080 | |||||||||||
Gross margin | $ | 1,976,754 | $ | 1,915,201 | $ | 1,506,179 | |||||||||||
Gross margin as a percent of total revenue | 45.9 | % | 46.2 | % | 47.4 | % | |||||||||||
Total operating expenses | $ | 604,521 | $ | 599,274 | $ | 545,115 | |||||||||||
Net income | $ | 1,179,744 | $ | 1,144,657 | $ | 823,451 | |||||||||||
Diluted net income per share | $ | 8.27 | $ | 7.98 | $ | 5.59 |
Three Months Ended | |||||||||||||||||
September 26, 2021 | June 27, 2021 | September 27, 2020 | |||||||||||||||
Revenue (in millions) | $ | 4,304 | $ | 4,145 | $ | 3,177 | |||||||||||
China | 37 | % | 37 | % | 37 | % | |||||||||||
Korea | 21 | % | 30 | % | 24 | % | |||||||||||
Taiwan | 15 | % | 13 | % | 14 | % | |||||||||||
Japan | 11 | % | 9 | % | 12 | % | |||||||||||
Southeast Asia | 8 | % | 3 | % | 7 | % | |||||||||||
United States | 6 | % | 5 | % | 4 | % | |||||||||||
Europe | 2 | % | 3 | % | 2 | % |
Three Months Ended | |||||||||||||||||
September 26, 2021 | June 27, 2021 | September 27, 2020 | |||||||||||||||
(In thousands) | |||||||||||||||||
System revenue | $ | 2,924,883 | $ | 2,763,877 | $ | 2,148,241 | |||||||||||
Customer support-related revenue and other | 1,379,582 | 1,381,302 | 1,028,839 | ||||||||||||||
$ | 4,304,465 | $ | 4,145,179 | $ | 3,177,080 |
Three Months Ended | |||||||||||||||||
September 26, 2021 | June 27, 2021 | September 27, 2020 | |||||||||||||||
Memory | 64 | % | 59 | % | 58 | % | |||||||||||
Foundry | 25 | % | 35 | % | 36 | % | |||||||||||
Logic/integrated device manufacturing | 11 | % | 6 | % | 6 | % |
Three Months Ended | |||||||||||||||||
September 26, 2021 | June 27, 2021 | September 27, 2020 | |||||||||||||||
(in thousands, except percentages) | |||||||||||||||||
Gross margin | $ | 1,976,754 | $ | 1,915,201 | $ | 1,506,179 | |||||||||||
Percent of revenue | 45.9 | % | 46.2 | % | 47.4 | % |
Three Months Ended | |||||||||||||||||
September 26, 2021 | June 27, 2021 | September 27, 2020 | |||||||||||||||
(in thousands, except percentages) | |||||||||||||||||
Research & development (“R&D”) | $ | 382,327 | $ | 381,749 | $ | 355,367 | |||||||||||
Percent of revenue | 8.9 | % | 9.2 | % | 11.2 | % |
Three Months Ended | |||||||||||||||||
September 26, 2021 | June 27, 2021 | September 27, 2020 | |||||||||||||||
(in thousands, except percentages) | |||||||||||||||||
Selling, general, and administrative (“SG&A”) | $ | 222,194 | $ | 217,525 | $ | 189,748 | |||||||||||
Percent of revenue | 5.2 | % | 5.2 | % | 6.0 | % |
Three Months Ended | |||||||||||||||||
September 26, 2021 | June 27, 2021 | September 27, 2020 | |||||||||||||||
(in thousands) | |||||||||||||||||
Interest income | $ | 4,678 | $ | 3,723 | $ | 6,959 | |||||||||||
Interest expense | (45,056) | (51,695) | (52,115) | ||||||||||||||
Gains on deferred compensation plan-related assets, net | 7,437 | 17,184 | 12,927 | ||||||||||||||
Foreign exchange losses, net | (17) | (2,365) | (1,375) | ||||||||||||||
Other, net | 4,101 | 25,987 | (5,188) | ||||||||||||||
$ | (28,857) | $ | (7,166) | $ | (38,792) |
Three Months Ended | |||||||||||||||||
September 26, 2021 | June 27, 2021 | September 27, 2020 | |||||||||||||||
(in thousands, except percentages) | |||||||||||||||||
Income tax expense | $ | 163,632 | $ | 164,104 | $ | 98,821 | |||||||||||
Effective tax rate | 12.2 | % | 12.5 | % | 10.7 | % |
Net income | $ | 1,179,744 | |||
Non-cash charges: | |||||
Depreciation and amortization | 79,874 | ||||
Equity-based compensation expense | 58,099 | ||||
Deferred income taxes | (13,023) | ||||
Changes in operating asset and liability accounts | (838,480) | ||||
Other | (8,690) | ||||
$ | 457,524 |
Valuation of Securities Given an Interest Rate Decrease of X Basis Points | Fair Value as of September 26, 2021 | Valuation of Securities Given an Interest Rate Increase of X Basis Points | |||||||||||||||||||||||||||||||||||||||
(150 BPS) | (100 BPS) | (50 BPS) | 0.00% | 50 BPS | 100 BPS | 150 BPS | |||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | $ | 1,855 | $ | 1,855 | $ | 1,855 | $ | 1,849 | $ | 1,835 | $ | 1,821 | $ | 1,807 | |||||||||||||||||||||||||||
Foreign government bonds | 15,169 | 15,169 | 15,169 | 15,133 | 15,079 | 15,025 | 14,971 | ||||||||||||||||||||||||||||||||||
Corporate notes and bonds | 538,813 | 538,771 | 538,501 | 536,383 | 533,707 | 531,031 | 528,355 | ||||||||||||||||||||||||||||||||||
Mortgage backed securities - commercial | 16,289 | 16,287 | 16,228 | 16,107 | 15,985 | 15,863 | 15,741 | ||||||||||||||||||||||||||||||||||
Total | $ | 572,126 | $ | 572,082 | $ | 571,753 | $ | 569,472 | $ | 566,606 | $ | 563,740 | $ | 560,874 |
Total Number of Shares Repurchased (1) | Average Price Paid Per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Amount Available Under Repurchase Program | ||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||
Available balance as of June 27, 2021 | $ | 4,222,220 | |||||||||||||||||||||
June 28, 2021 - July 25, 2021 | 307 | $ | 622.87 | 304 | 4,032,708 | ||||||||||||||||||
July 26, 2021 - August 22, 2021 | 442 | $ | 604.96 | 438 | 3,767,782 | ||||||||||||||||||
August 23, 2021 - September 26, 2021 | 988 | $ | 594.77 | 983 | 3,012,476 | ||||||||||||||||||
Quarter ended September 26, 2021 | 1,737 | $ | 608.89 | 1,725 | $ | 3,012,476 |
Exhibit Number | Description | ||||
31.1 | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101) | ||||
*Indicates management contract of compensatory plan or arrangement in which executive officers of the Company are eligible to participate. | |||||
Date: | October 26, 2021 | LAM RESEARCH CORPORATION (Registrant) | |||||||||
/s/ Douglas R. Bettinger | |||||||||||
Douglas R. Bettinger | |||||||||||
Executive Vice President, Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |
/s/ Timothy M. Archer | |||||
Timothy M. Archer | |||||
President and Chief Executive Officer |
/s/ Douglas R. Bettinger | |||||
Douglas R. Bettinger | |||||
Executive Vice President, Chief Financial Officer | |||||
(Principal Financial Officer and Principal Accounting Officer) |
/s/ Timothy M. Archer | |||||
Timothy M. Archer | |||||
President and Chief Executive Officer |
/s/ Douglas R. Bettinger | |||||
Douglas R. Bettinger | |||||
Executive Vice President, Chief Financial Officer | |||||
(Principal Financial Officer and Principal Accounting Officer) |
Condensed Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
|
Income Statement [Abstract] | ||
Revenue | $ 4,304,465 | $ 3,177,080 |
Cost of goods sold | 2,327,711 | 1,670,901 |
Gross margin | 1,976,754 | 1,506,179 |
Research and development | 382,327 | 355,367 |
Selling, general, and administrative | 222,194 | 189,748 |
Total operating expenses | 604,521 | 545,115 |
Operating income | 1,372,233 | 961,064 |
Other expense, net | (28,857) | (38,792) |
Income before income taxes | 1,343,376 | 922,272 |
Income tax expense | (163,632) | (98,821) |
Net income | $ 1,179,744 | $ 823,451 |
Net income per share: | ||
Basic (in dollars per share) | $ 8.32 | $ 5.67 |
Diluted (in dollars per share) | $ 8.27 | $ 5.59 |
Number of shares used in per share calculations: | ||
Basic (in shares) | 141,743 | 145,267 |
Diluted (in shares) | 142,612 | 147,248 |
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
|
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 1,179,744 | $ 823,451 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment | (4,032) | 12,124 |
Cash flow hedges: | ||
Net unrealized losses during the period | (9,005) | (350) |
Net (gains) losses reclassified into net income | (3,542) | 767 |
Net change | (12,547) | 417 |
Available-for-sale investments: | ||
Net unrealized losses during the period | (2,405) | (1,400) |
Net losses reclassified into net income | 1,145 | 402 |
Net change | (1,260) | (998) |
Defined benefit plans, net change in unrealized component | 199 | (4) |
Other comprehensive (loss) income, net of tax | (17,640) | 11,539 |
Comprehensive income | $ 1,162,104 | $ 834,990 |
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands |
Sep. 26, 2021 |
Jun. 27, 2021 |
---|---|---|
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5,361 | $ 5,255 |
Preferred stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 140,811,000 | 142,501,000 |
Common stock, shares outstanding (in shares) | 140,811,000 | 142,501,000 |
Treasury stock (in shares) | 152,503,000 | 150,766,000 |
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
|
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 1,179,744 | $ 823,451 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 79,874 | 72,912 |
Deferred income taxes | (13,023) | (1,850) |
Equity-based compensation expense | 58,099 | 55,988 |
Other, net | (8,690) | 4,339 |
Changes in operating assets and liabilities | (838,480) | (312,329) |
Net cash provided by operating activities | 457,524 | 642,511 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures and intangible assets | (136,427) | (62,806) |
Purchases of available-for-sale securities | (25,297) | (1,750,188) |
Maturities of available-for-sales securities | 106,836 | 597,252 |
Sales of available-for-sale securities | 656,504 | 415,862 |
Other, net | (4,923) | (1,786) |
Net cash provided by (used for) investing activities | 596,693 | (801,666) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on debt | (6,338) | (19,173) |
Treasury stock purchases | (1,236,753) | (448,581) |
Dividends paid | (185,431) | (167,129) |
Proceeds from issuance of common stock | 742 | 5,538 |
Other, net | 188 | (2,140) |
Net cash used for financing activities | (1,427,592) | (631,485) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (3,776) | 4,082 |
Net decrease in cash, cash equivalents, and restricted cash | (377,151) | (786,558) |
Cash, cash equivalents, and restricted cash at beginning of period | 4,670,750 | 5,169,083 |
Cash, cash equivalents, and restricted cash at end of period | 4,293,599 | 4,382,525 |
Schedule of non-cash transactions: | ||
Accrued payables for stock repurchases | 126 | 18,599 |
Accrued payables for capital expenditures | 66,117 | 37,733 |
Dividends payable | 211,216 | 188,046 |
Transfers of finished goods inventory to property and equipment | 15,518 | 29,019 |
Reconciliation of cash, cash equivalents, and restricted cash | ||
Cash and cash equivalents | 4,042,151 | 4,129,067 |
Restricted cash and cash equivalents | 251,448 | 253,458 |
Total cash, cash equivalents, and restricted cash | $ 4,293,599 | $ 4,382,525 |
Condensed Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands |
Total |
Cumulative effect adjustment |
Common Stock |
Additional Paid-in Capital |
Treasury Stock |
Accumulated Other Comprehensive Loss |
Retained Earnings |
Retained Earnings
Cumulative effect adjustment
|
|||
---|---|---|---|---|---|---|---|---|---|---|---|
Beginning balance (in shares) at Jun. 28, 2020 | 145,331 | ||||||||||
Beginning balance at Jun. 28, 2020 | $ 5,172,494 | $ 1,157 | $ 145 | $ 6,695,858 | $ (12,949,889) | $ (94,211) | $ 11,520,591 | $ 1,157 | |||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Issuance of common stock (in shares) | 105 | ||||||||||
Issuance of common stock | 5,538 | $ 0 | 5,538 | ||||||||
Purchase of treasury stock (in shares) | (1,360) | ||||||||||
Purchase of treasury stock | (467,098) | $ (1) | (467,097) | ||||||||
Equity-based compensation expense | 55,988 | 55,988 | |||||||||
Effect of conversion of convertible notes (in shares) | 517 | ||||||||||
Effect of conversion of convertible notes | (526) | $ 1 | (527) | ||||||||
Reclassification from temporary to permanent equity | 4,688 | 4,688 | |||||||||
Net income | 823,451 | 823,451 | |||||||||
Other comprehensive income (loss) | 11,539 | 11,539 | |||||||||
Cash dividends declared | (188,046) | (188,046) | |||||||||
Ending balance (in shares) at Sep. 27, 2020 | 144,593 | ||||||||||
Ending balance at Sep. 27, 2020 | 5,419,185 | $ 145 | 6,761,545 | (13,416,986) | (82,672) | 12,157,153 | |||||
Beginning balance (in shares) at Jun. 27, 2021 | 142,501 | ||||||||||
Beginning balance at Jun. 27, 2021 | 6,027,188 | [1] | $ 143 | 7,052,962 | (15,646,701) | (64,128) | 14,684,912 | ||||
Increase (Decrease) in Stockholders' Equity | |||||||||||
Issuance of common stock (in shares) | 47 | ||||||||||
Issuance of common stock | 742 | $ 0 | 742 | ||||||||
Purchase of treasury stock (in shares) | (1,737) | ||||||||||
Purchase of treasury stock | (1,216,874) | $ (2) | (1,216,872) | ||||||||
Equity-based compensation expense | 58,099 | 58,099 | |||||||||
Net income | 1,179,744 | 1,179,744 | |||||||||
Other comprehensive income (loss) | (17,640) | (17,640) | |||||||||
Cash dividends declared | (211,216) | (211,216) | |||||||||
Ending balance (in shares) at Sep. 26, 2021 | 140,811 | ||||||||||
Ending balance at Sep. 26, 2021 | $ 5,820,043 | $ 141 | $ 7,111,803 | $ (16,863,573) | $ (81,768) | $ 15,653,440 | |||||
|
Condensed Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares |
3 Months Ended | 12 Months Ended | |
---|---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
Jun. 28, 2020 |
|
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (in dollars per share) | $ 1.50 | $ 1.30 | |
Accounting Standards Update | Accounting Standards Update 2018-18 [Member] |
BASIS OF PRESENTATION |
3 Months Ended |
---|---|
Sep. 26, 2021 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of Lam Research Corporation (“Lam Research” or the “Company”) for the fiscal year ended June 27, 2021, which are included in the Company’s Annual Report on Form 10-K as of and for the year ended June 27, 2021 (the “2021 Form 10-K”). The Company’s reports on Form 10-K, Form 10-Q and Form 8-K are available online at the Securities and Exchange Commission website on the Internet. The address of that site is www.sec.gov. The Company also posts its reports on Form 10-K, Form 10-Q and Form 8-K on its corporate website at http://investor.lamresearch.com. The content on any website referred to in this Form 10-Q is not a part of or incorporated by reference in this Form 10-Q unless expressly noted. The condensed consolidated financial statements include the accounts of Lam Research and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s reporting period is a 52/53-week fiscal year. The Company’s current fiscal year will end June 26, 2022 and includes 52 weeks. The quarters ended September 26, 2021 (the “September 2021 quarter”) and September 27, 2020 (the “September 2020 quarter”) included 13 weeks.
|
RECENT ACCOUNTING PRONOUNCEMENTS |
3 Months Ended |
---|---|
Sep. 26, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted The Company did not adopt any new accounting standards during the first quarter of fiscal year 2022 that had a material impact on the Company’s Condensed Consolidated Financial Statements. Updates Not Yet Adopted or Effective There are no new accounting pronouncements not yet adopted or effective that are expected to have a material impact on the Company’s Condensed Consolidated Financial Statements.
|
REVENUE |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
REVENUE | REVENUE Deferred Revenue Revenue of $565.7 million included in deferred revenue as of June 27, 2021 was recognized during the three months ended September 26, 2021. The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of September 26, 2021 and when the Company expects to recognize the amounts as revenue:
(1) This amount is reported in Deferred profit on the Company's Condensed Consolidated Balance Sheets as the customers can demand the liability to be performed at any time. Disaggregation of Revenue The Company operates in one reportable business segment: manufacturing and servicing of wafer processing semiconductor manufacturing equipment. The Company’s material operating segments qualify for aggregation due to their customer base and similarities in economic characteristics, nature of products and services, and processes for procurement, manufacturing, and distribution. The Company operates in seven geographic regions: United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan. For geographical reporting, revenue is attributed to the geographic location in which the customers’ facilities are located. The Company serves three primary markets: memory, foundry, and logic/integrated device manufacturing. The following table presents the Company’s revenues disaggregated between system and its customer support-related revenue:
System revenue includes sales of new leading-edge equipment in deposition, etch and clean markets. Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from the Company’s Reliant product line. The following table presents the Company’s revenues disaggregated by geographic region:
The following table presents the percentages of leading- and non-leading-edge equipment and upgrade revenue to each of the primary markets the Company serves:
|
EQUITY-BASED COMPENSATION PLANS |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EQUITY-BASED COMPENSATION PLANS | EQUITY-BASED COMPENSATION PLANS The Lam Research Corporation 2015 Stock Incentive Plan, as amended (the “2015 Plan”), provides for the grant of non-qualified equity-based awards of the Company’s Common Stock to eligible employees and non-employee directors, including stock options, restricted stock units (“RSUs”), and market-based performance RSUs (“market-based PRSUs”). An option is a right to purchase Common Stock at a set price. An RSU award is an agreement to issue a set number of shares of Common Stock at the time of vesting. The Company’s market-based PRSUs contain both a market condition and a service condition. The Company’s option, RSU, and market-based PRSU awards typically vest over a period of three years. The Company also has an employee stock purchase plan that allows employees to purchase its Common Stock at a discount through payroll deductions. The Company recognized the following equity-based compensation expense (including expense related to the employee stock purchase plan) and related income tax benefit in the Condensed Consolidated Statements of Operations:
|
OTHER EXPENSE, NET |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
OTHER EXPENSE, NET | OTHER EXPENSE, NET The significant components of other expense, net, are as follows:
|
INCOME TAX EXPENSE |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INCOME TAX EXPENSE | INCOME TAX EXPENSE The Company’s provision for income taxes and effective tax rate are as follows:
The difference between the U.S. federal statutory tax rate of 21% and the Company’s effective tax rate for the three months ended September 26, 2021 and the three months ended September 27, 2020 was primarily due to income in lower tax jurisdictions. The Company transferred its international sales operations from Switzerland to Malaysia, effective from fiscal year 2022. Through fiscal year 2036, the Company expects to operate under various tax incentives in Malaysia which provide exemptions on foreign income earned and are contingent upon meeting certain conditions. The Internal Revenue Service (“IRS”) is examining the Company’s U.S. federal income tax return for the fiscal year ended June 24, 2018. As of September 26, 2021, no significant adjustments have been proposed by the IRS. The Company is unable to make a reasonable estimate as to when cash settlements, if any, with the IRS will occur. The Company is in various stages of examinations in connection with all of its tax audits worldwide, and it is difficult to determine when these examinations will be settled. It is reasonably possible that over the next 12-month period the Company may experience an increase or decrease in its uncertain tax positions as a result of tax examinations or lapses of statutes of limitation. The change in uncertain tax positions as a result of lapses of statutes of limitation may range up to $8.0 million.
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NET INCOME PER SHARE |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
NET INCOME PER SHARE | NET INCOME PER SHARE Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the treasury stock method, for dilutive stock options, restricted stock units, and convertible notes. The following table reconciles the inputs to the basic and diluted computations for net income per share.
For purposes of computing diluted net income per share, weighted-average common shares do not include potentially dilutive securities that are anti-dilutive under the treasury stock method. The impact from potentially dilutive securities, including options and RSUs, was not material for the three months ended September 26, 2021 and September 27, 2020.
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FINANCIAL INSTRUMENTS |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The Company maintains an investment portfolio of various holdings, types, and maturities. The Company’s mutual funds, which are related to the Company’s obligations under the deferred compensation plan, are classified as trading securities. Investments classified as trading securities are recorded at fair value based upon quoted market prices. Differences between the cost and fair value of trading securities are recognized as other expense, net in the Condensed Consolidated Statements of Operations. All of the Company’s other investments are classified as available-for-sale and consequently are recorded in the Condensed Consolidated Balance Sheets at fair value with unrealized gains or losses associated with market valuation changes, unrelated to credit losses, reported as a separate component of accumulated other comprehensive income (loss), net of tax; and credit losses, if any, recognized as other expense, net in the Condensed Consolidated Statements of Operations. Fair Value The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value. The level of an asset or liability in the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities with sufficient volume and frequency of transactions. Level 2: Valuations based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or model-derived valuations techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Valuations based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities and based on non-binding, broker-provided price quotes and may not have been corroborated by observable market data. The Company engages with pricing vendors to provide fair values for a majority of its Level 1 and Level 2 investments. The vendors provide either a quoted market price in an active market or use observable inputs without applying significant adjustments in their pricing. Significant observable inputs include interest rates and yield curves observable at commonly quoted intervals, volatility and credit risks. The fair value of derivative contracts is determined using observable market inputs such as the foreign currency rates, forward rate curves, currency volatility and interest rates and considers nonperformance risk of the Company and its counterparties. The Company’s primary financial instruments include its cash, cash equivalents, investments, restricted cash and investments, long-term investments, accounts receivable, accounts payable, long-term debt and leases, and foreign currency related derivative instruments. The estimated fair value of cash, accounts receivable, and accounts payable approximates their carrying value due to the short period of time to their maturities. The estimated fair values of lease obligations approximate their carrying value as the majority of these obligations have interest rates that adjust to market rates on a periodic basis. Refer to Note 12 - Long-Term Debt and Other Borrowings for additional information regarding the fair value of the Company’s senior notes. Investments The following tables set forth the Company’s cash, cash equivalents, investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of September 26, 2021, and June 27, 2021:
The Company accounts for its investment portfolio at fair value. Realized gains (losses) for investment sales are specifically identified. Management assesses the fair value of investments in debt securities that are not actively traded through consideration of interest rates and their impact on the present value of the cash flows to be received from the investments. The Company evaluates its investments with fair value less than amortized cost by first considering whether the Company has the intent to sell the security or whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. In either such situation, the difference between fair value and amortized cost is recognized as a loss in the income statement. Where such sales are not likely to occur, the Company considers whether a portion of the loss is the result of a credit loss. To the extent such losses are the result of credit losses, those amounts are recognized in the income statement. All other differences between fair value and amortized cost are recognized in other comprehensive income. No such losses were recognized through the income statement during the three months ended September 26, 2021 and September 27, 2020. Gross realized gains/(losses) from sales of investments were insignificant in the three months ended September 26, 2021 and September 27, 2020. The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions:
The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities are as follows as of September 26, 2021:
The Company has the ability, if necessary, to liquidate its investments in order to meet the Company’s liquidity needs in the next 12 months. Accordingly, those investments with contractual maturities greater than 12 months from the date of purchase nonetheless are classified as short-term on the accompanying Condensed Consolidated Balance Sheets. Derivative Instruments and Hedging The Company carries derivative financial instruments (“derivatives”) on its Condensed Consolidated Balance Sheets at their fair values. The Company enters into foreign currency forward contracts and foreign currency options with financial institutions with the primary objective of reducing volatility of earnings and cash flows related to foreign currency exchange rate fluctuations. In addition, the Company enters into interest rate swap arrangements to manage interest rate risk. The counterparties to these derivatives are large global financial institutions that the Company believes are creditworthy, and therefore, it does not consider the risk of counterparty nonperformance to be material. Under the master netting agreements with the respective counterparties to the Company’s derivative contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. However, the Company has elected to present the derivative assets and derivative liabilities on a gross basis on its balance sheet. As of September 26, 2021 and June 27, 2021, the potential effect of rights of offset associated with the above foreign exchange and interest rate contracts would be immaterial to the Condensed Consolidated Balance Sheets. Cash Flow Hedges The Company’s financial position is routinely subjected to market risk associated with foreign currency exchange rate fluctuations on non-U.S. dollar transactions or cash flows. The Company’s policy is to mitigate the foreign exchange risk arising from the fluctuations in the value of these non-U.S. dollar denominated transactions or cash flows through a foreign currency cash flow hedging program, using forward contracts and foreign currency options that generally expire within 12 months and no later than 24 months. These hedge contracts are designated as cash flow hedges and are carried on the Company’s balance sheet at fair value with the effective portion of the contracts’ gains or losses included in accumulated other comprehensive income (loss) and subsequently recognized in revenue/expense in the same period the hedged items affect earnings. In addition, the Company has entered into interest rate swap agreements to hedge against the variability of cash flows due to changes in certain benchmark interest rates on fixed rate debt. These instruments are designated as cash flow hedges at inception and are settled in conjunction with the issuance of debt. The effective portion of the contracts’ gains or losses is included in accumulated other comprehensive income (loss) and is amortized into income as the hedged item affects earnings. At inception and at each quarter-end, hedges are tested prospectively and retrospectively for effectiveness using regression analysis. Changes in the fair value of foreign exchange contracts due to changes in time value are included in the assessment of effectiveness. To qualify for hedge accounting, the hedge relationship must meet criteria relating to both the derivative instrument and the hedged item. These criteria include identification of the hedging instrument, the hedged item, the nature of the risk being hedged, and how the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value or cash flows will be measured. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be tested to demonstrate an expectation of providing highly effective offsetting changes to future cash flows on hedged transactions. When derivative instruments are designated and qualify as effective cash flow hedges, the Company recognizes effective changes in the fair value of the hedging instrument within accumulated other comprehensive income (loss) until the hedged exposure is realized. Consequently, the Company’s results of operations are not subject to fluctuation as a result of changes in the fair value of the derivative instruments. If hedges are not highly effective or if the Company does not believe that the underlying hedged forecasted transactions will occur, the Company may not be able to account for its derivative instruments as cash flow hedges. If this were to occur, future changes in the fair values of the Company’s derivative instruments would be recognized in earnings. Additionally, related amounts previously recorded in other comprehensive income would be reclassified to earnings immediately. As of September 26, 2021 and June 27, 2021, the fair value of outstanding cash flow hedges was not material. Additionally, as of September 26, 2021, the Company had an immaterial net gain or loss accumulated in other comprehensive income, net of tax, related to foreign exchange cash flow hedges and interest rate contracts which it expects to reclassify from other comprehensive income into earnings over the next 12 months. The following table provides the total notional value of cash flow hedge instruments outstanding as of September 26, 2021:
The effect of derivative instruments designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”), was as follows:
Balance Sheet Hedges The Company also enters into foreign currency forward contracts to hedge fluctuations associated with foreign currency denominated monetary assets and liabilities, primarily cash, third-party accounts receivable, accounts payable, and intercompany receivables and payables. These forward contracts are not designated for hedge accounting treatment. Therefore, the change in the carrying value of these derivatives is recorded as a component of other expense, net and offsets the change in fair value of the foreign currency denominated assets and liabilities related to remeasurement, which are also recorded in other expense, net. As of September 26, 2021 and June 27, 2021, the fair value of outstanding balance sheet hedges was not material. The following table provides the total notional value of balance sheet hedge instruments outstanding as of September 26, 2021:
The effect of the Company’s balance sheet hedge derivative instruments on the Company’s Condensed Consolidated Statements of Operations was as follows:
Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, investments, restricted cash and investments, trade accounts receivable, and derivative financial instruments used in hedging activities. Cash is placed on deposit at large global financial institutions. Such deposits may be in excess of insured limits. Management believes that the financial institutions that hold the Company’s cash are creditworthy and, accordingly, minimal credit risk exists with respect to these balances. The Company’s overall portfolio of available-for-sale securities must maintain an average minimum rating of “AA-” or “Aa3” as rated by Standard and Poor’s, Fitch Ratings, or Moody’s Investor Services. To ensure diversification and minimize concentration, the Company’s policy limits the amount of credit exposure with any one financial institution or commercial issuer. The Company is exposed to credit losses in the event of nonperformance by counterparties on foreign currency and interest rate hedge contracts that are used to mitigate the effect of exchange rate and interest rate fluctuations, and on contracts related to structured share repurchase arrangements. These counterparties are large global financial institutions, and, to date, no such counterparty has failed to meet its financial obligations to the Company. Credit risk evaluations, including trade references, bank references, and Dun & Bradstreet ratings, are performed on all new customers and the Company monitors its customers’ financial condition and payment performance. In general, the Company does not require collateral on sales.
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INVENTORIES |
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Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
INVENTORIES | INVENTORIES Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. System shipments to customers in Japan, for which title does not transfer until customer acceptance, are classified as finished goods inventory and carried at cost until title transfers. Inventories consist of the following:
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GOODWILL AND INTANGIBLE ASSETS |
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Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The balance of goodwill is approximately $1.5 billion as of September 26, 2021 and June 27, 2021. As of September 26, 2021 and June 27, 2021, $61.1 million of the goodwill balance is tax deductible and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law. Intangible Assets The following table provides the Company’s intangible assets, other than goodwill:
The Company recognized $19.1 million and $16.8 million in intangible asset amortization expense during the three months ended September 26, 2021 and September 27, 2020, respectively. The estimated future amortization expense of intangible assets as of September 26, 2021, is reflected in the table below. The table excludes $12.0 million of capitalized costs for internal-use software that have not been placed into service.
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES |
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Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES Accrued expenses and other current liabilities consist of the following:
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LONG-TERM DEBT AND OTHER BORROWINGS |
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
LONG-TERM DEBT AND OTHER BORROWINGS | LONG-TERM DEBT AND OTHER BORROWINGS As of September 26, 2021, and June 27, 2021, the Company’s outstanding debt consisted of the following:
____________________________ (1) This amount represents a cumulative fair value gain for discontinued hedging relationships, net of an immaterial amount of amortization as of the periods presented. Senior Notes On May 5, 2020, the company completed a public offering of $750 million aggregate principal amount of the Company’s Senior Notes due June 15, 2030 (the “2030 Notes”), $750 million aggregate principal amount of the Company’s Senior Notes due June 15, 2050 (the “2050 Notes”), and $500 million aggregate principal amount of the Company’s Senior Notes due June 15, 2060 (the “2060 Notes”). The Company pays interest at an annual rate of 1.90%, 2.875%, and 3.125%, on the 2030, 2050, and 2060 Notes, respectively, on a semi-annual basis on June 15 and December 15 of each year. On March 4, 2019, the company completed a public offering of $750 million aggregate principal amount of the Company’s Senior Notes due March 15, 2026 (the “2026 Notes”), $1.0 billion aggregate principal amount of the Company’s Senior Notes due March 15, 2029 (the “2029 Notes”), and $750 million aggregate principal amount of the Company’s Senior Notes due March 15, 2049 (the “2049 Notes”). The Company pays interest at an annual rate of 3.75%, 4.00%, and 4.875%, on the 2026, 2029, and 2049 Notes, respectively, on a semi-annual basis on March 15 and September 15 of each year. On March 12, 2015, the Company completed a public offering of $500 million aggregate principal amount of the Company’s Senior Notes due March 15, 2025 (the “2025 Notes”). The Company pays interest at an annual rate of 3.80% on the 2025 Notes on a semi-annual basis on March 15 and September 15 of each year. The Company may redeem the 2025, 2026, 2029, 2030, 2049, 2050, and 2060 Notes (collectively the “Senior Notes”) at a redemption price equal to 100% of the principal amount of such series (“par”), plus a “make whole” premium as described in the indenture in respect to the Senior Notes and accrued and unpaid interest before December 15, 2024 for the 2025 Notes, before January 15, 2026 for the 2026 Notes, before December 15, 2028 for the 2029 Notes, before March 15, 2030 for the 2030 Notes, before September 15, 2048 for the 2049 Notes, before December 15, 2049 for the 2050 Notes, and before December 15, 2059 for the 2060 Notes. The Company may redeem the Senior Notes at par, plus accrued and unpaid interest at any time on or after December 24, 2024 for the 2025 Notes, on or after January 15, 2026 for the 2026 Notes, on or after December 15, 2028 for the 2029 Notes, on or after March 15, 2030 for the 2030 Notes, on or after September 15, 2048 for the 2049 Notes, on or after December 15, 2049 for the 2050 Notes, and on or after December 15, 2059 for the 2060 Notes. In addition, upon the occurrence of certain events, as described in the indenture, the Company will be required to make an offer to repurchase the Senior Notes at a price equal to 101% of the principal amount of the respective note, plus accrued and unpaid interest. Selected additional information regarding the Senior Notes outstanding as of September 26, 2021, is as follows:
Revolving Credit Facility On March 12, 2014, the Company established an unsecured Credit Agreement. This agreement was amended on November 10, 2015 (the “Amended and Restated Credit Agreement”), October 13, 2017 (the “2nd Amendment”), February 25, 2019 (the “3rd Amendment”), and June 17, 2021 (the “Second Amended and Restated Credit Agreement”). The Second Amended and Restated Credit Agreement provides for a $1.50 billion revolving credit facility with a syndicate of lenders, along with an expansion option that will allow the Company, subject to certain requirements, to request an increase in the facility of up to an additional $600.0 million, for a potential total commitment of $2.10 billion. The facility matures on June 17, 2026. Interest on amounts borrowed under the credit facility is, at the Company’s option, based on (1) a base rate, defined as the greatest of (a) prime rate, (b) Federal Funds rate plus 0.5%, or (c) one-month LIBOR plus 1.0%, plus a spread of 0.00% to 0.30%, or (2) LIBOR multiplied by the statutory rate, plus a spread of 0.805% to 1.30%, in each case plus a facility fee, with such spread and facility fee determined based on the rating of the Company’s non-credit enhanced, senior unsecured long-term debt. Such spreads and such facility fees are further subject to sustainability adjustments as described in the Second Amended and Restated Credit Agreement, in each case based on the Company’s performance of certain energy savings and health and safety standards metrics. Principal and any accrued and unpaid interest is due and payable upon maturity. Additionally, the Company will pay the lenders a quarterly commitment fee that varies based on the Company’s credit rating. The Second Amended and Restated Credit Agreement incorporates provisions for the replacement of LIBOR or other reference rates with alternative reference rates under certain circumstances, including when, or if, such reference rates cease to be available. The Second Amended and Restated Credit Agreement contains affirmative covenants, negative covenants, financial covenants, and events of default. As of September 26, 2021, the Company had no borrowings outstanding under the credit facility and was in compliance with all financial covenants. Commercial Paper Program On November 13, 2017, the Company established a commercial paper program (“the CP Program”) under which the Company may issue unsecured commercial paper notes on a private placement basis up to a maximum aggregate principal amount of $1.25 billion. In July 2021, the Company amended the CP Program size to a maximum aggregate amount outstanding at any time of $1.50 billion. The net proceeds from the CP Program will be used for general corporate purposes, including repurchases of the Company’s Common Stock from time to time under the Company’s stock repurchase program. Amounts available under the CP Program may be re-borrowed. The CP Program is backstopped by the Company’s Revolving Credit Arrangement. As of September 26, 2021 and June 27, 2021, the Company had no outstanding borrowings under the CP Program. Interest Cost The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Senior Notes, convertible notes, and the revolving credit facility during the three months ended September 26, 2021 and September 27, 2020.
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LEASES |
3 Months Ended |
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Sep. 26, 2021 | |
Leases [Abstract] | |
LEASES | LEASES The Company leases certain office spaces, manufacturing and warehouse spaces, equipment, and vehicles. While the majority of the Company’s lease arrangements are operating leases, the Company has certain leases that qualify as finance leases. Selected Leases and Related Guarantees The Company leases the majority of its administrative, research and development and manufacturing facilities, regional sales/service offices, and certain equipment under non-cancelable leases. Certain of the Company’s facility leases for buildings located at its Fremont, California headquarters, Tualatin, Oregon campus, and certain other facility leases provide the Company with options to extend the leases for additional periods or to purchase the facilities. Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation. The Company has finance leases for certain improved properties in Fremont and Livermore, California (the “California Facility Leases”). The Company is required to maintain cash collateral in an aggregate of approximately $250.0 million in separate interest-bearing accounts as security for the Company’s obligations. These amounts are recorded with other restricted cash and investments in the Company’s Condensed Consolidated Balance Sheet as of September 26, 2021. During the seven-year term of the California Facility Leases and when the terms of the California Facility Leases expire, the property subject to the California Facility Leases may be re-marketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate maximum guarantee made by the Company under the California Facility Leases is $298.4 million.
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LEASES | LEASES The Company leases certain office spaces, manufacturing and warehouse spaces, equipment, and vehicles. While the majority of the Company’s lease arrangements are operating leases, the Company has certain leases that qualify as finance leases. Selected Leases and Related Guarantees The Company leases the majority of its administrative, research and development and manufacturing facilities, regional sales/service offices, and certain equipment under non-cancelable leases. Certain of the Company’s facility leases for buildings located at its Fremont, California headquarters, Tualatin, Oregon campus, and certain other facility leases provide the Company with options to extend the leases for additional periods or to purchase the facilities. Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation. The Company has finance leases for certain improved properties in Fremont and Livermore, California (the “California Facility Leases”). The Company is required to maintain cash collateral in an aggregate of approximately $250.0 million in separate interest-bearing accounts as security for the Company’s obligations. These amounts are recorded with other restricted cash and investments in the Company’s Condensed Consolidated Balance Sheet as of September 26, 2021. During the seven-year term of the California Facility Leases and when the terms of the California Facility Leases expire, the property subject to the California Facility Leases may be re-marketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate maximum guarantee made by the Company under the California Facility Leases is $298.4 million.
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COMMITMENTS AND CONTINGENCIES |
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Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Refer to Note 13 - Leases for details regarding guarantees surrounding selected leases. Other Guarantees The Company has issued certain indemnifications to its lessors for taxes and general liability under some of its agreements. The Company has entered into insurance contracts that are intended to limit its exposure to such indemnifications. As of September 26, 2021, the Company had not recorded any liability on its Condensed Consolidated Financial Statements in connection with these indemnifications, as it does not believe that it is probable that any material amounts will be paid under these guarantees. Generally, the Company indemnifies, under pre-determined conditions and limitations, its customers for infringement of third-party intellectual property rights by the Company’s products or services. The Company seeks to limit its liability for such indemnity to an amount not to exceed the sales price of the products or services subject to its indemnification obligations. The Company does not believe that it is probable that any material amounts will be paid under these guarantees. The Company provides guarantees and standby letters of credit to certain parties as required for certain transactions initiated during the ordinary course of business. As of September 26, 2021, the maximum potential amount of future payments that the Company could be required to make under these arrangements and letters of credit was $74.1 million. The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid. In addition, the Company has entered into indemnification agreements with its directors, officers, and certain other employees, consistent with its Bylaws and Certificate of Incorporation; and under local law, the Company may be required to provide indemnification to its employees for actions within the scope of their employment. Although the Company maintains insurance contracts that cover some of the potential liability associated with these indemnification agreements, there is no guarantee that all such liabilities will be covered. The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid under such indemnification agreements or statutory obligations. Warranties The Company provides standard warranties on its systems. The liability amount is based on actual historical warranty spending activity by type of system, customer, and geographic region, modified for any known differences such as the impact of system reliability improvements. As of September 26, 2021, warranty reserves totaling $15.6 million were recognized in other long-term liabilities, the remainder were included in accrued expenses and other current liabilities in the Company’s Condensed Consolidated Balance Sheets. Changes in the Company’s product warranty reserves were as follows:
Legal Proceedings While the Company is not currently a party to any legal proceedings that it believes material, the Company is either a defendant or plaintiff in various actions that have arisen from time to time in the normal course of business, including intellectual property claims. The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. Based on current information, the Company does not believe that a material loss from known matters is probable and therefore has not recorded an accrual of any material amount for litigation or other contingencies related to existing legal proceedings.
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STOCK REPURCHASE PROGRAM |
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Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
STOCK REPURCHASE PROGRAM | STOCK REPURCHASE PROGRAMIn November 2020, the Board of Directors authorized the Company to repurchase up to an additional $5.0 billion of Common Stock; this authorization supplements the remaining balances from any prior authorizations. These repurchases can be conducted on the open market or as private purchases and may include the use of derivative contracts with large financial institutions, in all cases subject to compliance with applicable law. This repurchase program has no termination date and may be suspended or discontinued at any time. Repurchases under the repurchase program were as follows during the periods indicated:
(1) Average price paid per share excludes the effect of accelerated share repurchase activities. See additional disclosure below regarding the Company’s accelerated share repurchase activity during the three months ended September 26, 2021. In addition to the shares repurchased under the Board-authorized repurchase program shown above, during the three months ended September 26, 2021, the Company acquired 12 thousand shares at a total cost of $7.1 million, which the Company withheld through net settlements to cover minimum tax withholding obligations upon the vesting of restricted stock unit awards granted under the Company’s equity compensation plans. The shares retained by the Company through these net share settlements are not a part of the Board-authorized repurchase program but instead are authorized under the Company’s equity compensation plan. Accelerated Share Repurchase Agreements On August 31, 2021, the Company entered into an accelerated share repurchase agreement (the “September 2021 ASR") with two financial institutions to repurchase a total of $650 million of Common Stock. The Company took an initial delivery of approximately 806 thousand shares, which represented 75% of the prepayment amount divided by the Company’s closing stock price on August 31, 2021. The total number of shares received under the September 2021 ASR will be based upon the average daily volume weighted average price of the Company’s Common Stock during the repurchase period, less an agreed upon discount. Final settlement of the September 2021 ASR will occur no later than January 6, 2022.
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ACCUMULATED OTHER COMPREHENSIVE LOSS |
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive loss, net of tax at September 26, 2021, as well as the activity for the three months ending September 26, 2021, were as follows:
(1) Amount of after-tax gains reclassified from AOCI into net income is not material in the aggregate, or to any individual location in our Condensed Consolidated Statements of Operations.
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BASIS OF PRESENTATION (Policies) |
3 Months Ended |
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Sep. 26, 2021 | |
Accounting Policies [Abstract] | |
Consolidation | The condensed consolidated financial statements include the accounts of Lam Research and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Period | The Company’s reporting period is a 52/53-week fiscal year. The Company’s current fiscal year will end June 26, 2022 and includes 52 weeks. |
Recent Accounting Pronouncements | Recently Adopted The Company did not adopt any new accounting standards during the first quarter of fiscal year 2022 that had a material impact on the Company’s Condensed Consolidated Financial Statements. Updates Not Yet Adopted or Effective There are no new accounting pronouncements not yet adopted or effective that are expected to have a material impact on the Company’s Condensed Consolidated Financial Statements.
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Inventories | Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. System shipments to customers in Japan, for which title does not transfer until customer acceptance, are classified as finished goods inventory and carried at cost until title transfers. |
Warranties | The Company provides standard warranties on its systems. The liability amount is based on actual historical warranty spending activity by type of system, customer, and geographic region, modified for any known differences such as the impact of system reliability improvements. |
REVENUE (Tables) |
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Revenue from Contract with Customer [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Contract Transaction Price not yet Recognized as Revenue | The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of September 26, 2021 and when the Company expects to recognize the amounts as revenue:
(1) This amount is reported in Deferred profit on the Company's Condensed Consolidated Balance Sheets as the customers can demand the liability to be performed at any time.
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Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated between system and its customer support-related revenue:
The following table presents the Company’s revenues disaggregated by geographic region:
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Schedule of System Revenues of Primary Markets | The following table presents the percentages of leading- and non-leading-edge equipment and upgrade revenue to each of the primary markets the Company serves:
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EQUITY-BASED COMPENSATION PLANS (Tables) |
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Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Recognized Equity Based Compensation Expense and Related Income Tax Benefit | The Company recognized the following equity-based compensation expense (including expense related to the employee stock purchase plan) and related income tax benefit in the Condensed Consolidated Statements of Operations:
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OTHER EXPENSE, NET (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other Income and Expenses [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Other Expense, Net | The significant components of other expense, net, are as follows:
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INCOME TAX EXPENSE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Income Tax Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Effective Income Tax Rate Reconciliation | The Company’s provision for income taxes and effective tax rate are as follows:
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NET INCOME PER SHARE (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Numerators and Denominators of Basic and Diluted Computations for Net Income Per Share | The following table reconciles the inputs to the basic and diluted computations for net income per share.
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FINANCIAL INSTRUMENTS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Cash, Cash Equivalents, Investments, Restricted Cash and Investments and Other Assets Measured at Fair Value on Recurring Basis | The following tables set forth the Company’s cash, cash equivalents, investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of September 26, 2021, and June 27, 2021:
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Schedule of Cash, Cash Equivalents, Investments and Restricted Cash and Investments in Unrealized Loss Positions | The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions:
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Schedule of Amortized Cost and Fair Value of Cash Equivalents, Investments, Restricted Cash and Investments with Contractual Maturities | The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities are as follows as of September 26, 2021:
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Schedule of Outstanding Foreign Currency Forward Contracts | The following table provides the total notional value of cash flow hedge instruments outstanding as of September 26, 2021:
The following table provides the total notional value of balance sheet hedge instruments outstanding as of September 26, 2021:
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Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations | The effect of derivative instruments designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”), was as follows:
The effect of the Company’s balance sheet hedge derivative instruments on the Company’s Condensed Consolidated Statements of Operations was as follows:
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INVENTORIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Inventory Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Inventories | Inventories consist of the following:
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GOODWILL AND INTANGIBLE ASSETS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Intangible Assets | The following table provides the Company’s intangible assets, other than goodwill:
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Estimated Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets as of September 26, 2021, is reflected in the table below. The table excludes $12.0 million of capitalized costs for internal-use software that have not been placed into service.
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ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Payables and Accruals [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following:
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LONG-TERM DEBT AND OTHER BORROWINGS (Tables) |
3 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Debt Disclosure [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Outstanding Debt | As of September 26, 2021, and June 27, 2021, the Company’s outstanding debt consisted of the following:
____________________________ (1) This amount represents a cumulative fair value gain for discontinued hedging relationships, net of an immaterial amount of amortization as of the periods presented.
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Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Selected additional information regarding the Senior Notes outstanding as of September 26, 2021, is as follows:
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Schedule of Recognized Interest Cost Relating to Both Contractual Interest Coupon and Amortization of Discount on Liability Component of Notes | The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Senior Notes, convertible notes, and the revolving credit facility during the three months ended September 26, 2021 and September 27, 2020.
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COMMITMENTS AND CONTINGENCIES (Tables) |
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Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Commitments and Contingencies Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Warranties | Changes in the Company’s product warranty reserves were as follows:
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STOCK REPURCHASE PROGRAM (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Repurchases Under the Repurchase Program | Repurchases under the repurchase program were as follows during the periods indicated:
(1) Average price paid per share excludes the effect of accelerated share repurchase activities. See additional disclosure below regarding the Company’s accelerated share repurchase activity during the three months ended September 26, 2021.
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ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) |
3 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Sep. 26, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of tax at September 26, 2021, as well as the activity for the three months ending September 26, 2021, were as follows:
(1) Amount of after-tax gains reclassified from AOCI into net income is not material in the aggregate, or to any individual location in our Condensed Consolidated Statements of Operations.
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REVENUE - Additional Information (Details) $ in Millions |
3 Months Ended |
---|---|
Sep. 26, 2021
USD ($)
primary_market
segment
region
| |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ | $ 565.7 |
Number reportable business segment | segment | 1 |
Number of operating geographic regions | region | 7 |
Number of primary markets | primary_market | 3 |
REVENUE - Summary of Contract Transaction Price not yet Recognized as Revenue (Details) $ in Thousands |
Sep. 26, 2021
USD ($)
|
---|---|
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 1,109,626 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-09-27 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 951,080 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of satisfaction | 9 months |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-06-27 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 158,546 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of satisfaction | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2024-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of satisfaction |
REVENUE - Disaggregation of Revenue (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
|
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 4,304,465 | $ 3,177,080 |
China | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 1,607,710 | 1,174,669 |
Korea | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 918,137 | 756,257 |
Taiwan | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 638,066 | 446,091 |
Japan | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 468,731 | 392,526 |
Southeast Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 365,248 | 203,339 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 228,211 | 137,892 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 78,362 | 66,306 |
System revenue | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 2,924,883 | 2,148,241 |
Customer support-related revenue and other | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 1,379,582 | $ 1,028,839 |
REVENUE - Schedule of System Revenues of Primary Markets (Details) - Revenue - Equipment and upgrade revenue |
3 Months Ended | |
---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
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Memory | ||
Concentration Risk [Line Items] | ||
Concentration by percent | 64.00% | 58.00% |
Foundry | ||
Concentration Risk [Line Items] | ||
Concentration by percent | 25.00% | 36.00% |
Logic/integrated device manufacturing | ||
Concentration Risk [Line Items] | ||
Concentration by percent | 11.00% | 6.00% |
EQUITY-BASED COMPENSATION PLANS - Additional Information (Details) |
3 Months Ended |
---|---|
Sep. 26, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Vesting period (in years) | 3 years |
EQUITY-BASED COMPENSATION PLANS - Recognized Equity-Based Compensation Expenses and Related Income Tax Benefit (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
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Share-based Payment Arrangement [Abstract] | ||
Equity-based compensation expense | $ 58,099 | $ 55,988 |
Income tax benefit recognized related to equity-based compensation expense | $ 8,208 | $ 9,877 |
OTHER EXPENSE, NET (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
|
Other Income and Expenses [Abstract] | ||
Interest income | $ 4,678 | $ 6,959 |
Interest expense | (45,056) | (52,115) |
Gains on deferred compensation plan-related assets, net | 7,437 | 12,927 |
Foreign exchange losses, net | (17) | (1,375) |
Other, net | 4,101 | (5,188) |
Other expense, net | $ (28,857) | $ (38,792) |
INCOME TAX EXPENSE (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
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Income Tax Disclosure [Abstract] | ||
Income tax expense | $ 163,632 | $ 98,821 |
Effective tax rate | 12.20% | 10.70% |
Tax examinations or lapses of statute of limitation | ||
Income Tax Contingency [Line Items] | ||
Estimated unrecognized tax benefits reduction | $ 8,000 |
NET INCOME PER SHARE - Schedule of Numerators and Denominators of Basic and Diluted Computations for Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
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Numerator: | ||
Net income | $ 1,179,744 | $ 823,451 |
Denominator: | ||
Basic average shares outstanding (in shares) | 141,743 | 145,267 |
Effect of potential dilutive securities: | ||
Employee stock plans (in shares) | 869 | 1,112 |
Convertible notes (in shares) | 0 | 869 |
Diluted average shares outstanding (in shares) | 142,612 | 147,248 |
Net income per share - basic (in dollars per share) | $ 8.32 | $ 5.67 |
Net income per share - diluted (in dollars per share) | $ 8.27 | $ 5.59 |
FINANCIAL INSTRUMENTS - Schedule of Cash, Cash Equivalents, Investments, Restricted Cash and Investments and Other Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands |
Sep. 26, 2021 |
Jun. 27, 2021 |
Sep. 27, 2020 |
|||
---|---|---|---|---|---|---|
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt securities, Cost | $ 3,799,058 | |||||
Total Cost | 4,944,196 | $ 6,060,441 | ||||
Total, Unrealized Gain | 20,170 | 17,952 | ||||
Total, Unrealized (Loss) | (357) | (600) | ||||
Total, Fair Value | 4,964,009 | 6,077,793 | ||||
Cash and Cash Equivalents | 4,042,151 | 4,418,263 | [1] | $ 4,129,067 | ||
Investments | 569,472 | 1,310,872 | [1] | |||
Restricted Cash & Investments | 251,448 | 252,487 | [1] | |||
Other Assets | 100,938 | 96,171 | ||||
Level 1 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Total Cost | 1,393,036 | 2,531,575 | ||||
Total, Unrealized Gain | 19,389 | 15,606 | ||||
Total, Unrealized (Loss) | (28) | (80) | ||||
Total, Fair Value | 1,412,397 | 2,547,101 | ||||
Cash and Cash Equivalents | 1,309,610 | 2,246,138 | ||||
Investments | 1,849 | 204,792 | ||||
Restricted Cash & Investments | 0 | 0 | ||||
Other Assets | 100,938 | 96,171 | ||||
Level 2 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Total Cost | 567,171 | 1,104,254 | ||||
Total, Unrealized Gain | 781 | 2,346 | ||||
Total, Unrealized (Loss) | (329) | (520) | ||||
Total, Fair Value | 567,623 | 1,106,080 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Investments | 567,623 | 1,106,080 | ||||
Restricted Cash & Investments | 0 | 0 | ||||
Other Assets | 0 | 0 | ||||
Cash | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash and Cash Equivalents | 1,063,562 | 875,738 | ||||
Cash and Cash Equivalents | 1,062,142 | 873,278 | ||||
Investments | 0 | 0 | ||||
Restricted Cash & Investments | 1,420 | 2,460 | ||||
Other Assets | 0 | 0 | ||||
Time deposits | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Cash and Cash Equivalents | 1,920,427 | 1,548,874 | ||||
Cash and Cash Equivalents | 1,670,399 | 1,298,847 | ||||
Investments | 0 | 0 | ||||
Restricted Cash & Investments | 250,028 | 250,027 | ||||
Other Assets | 0 | 0 | ||||
Money market funds | Level 1 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt securities, Cost | 1,309,610 | 2,246,138 | ||||
Debt securities, Unrealized Gain | 0 | 0 | ||||
Debt securities, Unrealized (Loss) | 0 | 0 | ||||
Debt securities, Fair Value | 1,309,610 | 2,246,138 | ||||
Cash and Cash Equivalents | 1,309,610 | 2,246,138 | ||||
Investments | 0 | 0 | ||||
Restricted Cash & Investments | 0 | 0 | ||||
Other Assets | 0 | 0 | ||||
U.S. Treasury and agencies | Level 1 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt securities, Cost | 1,850 | 204,743 | ||||
Debt securities, Unrealized Gain | 0 | 96 | ||||
Debt securities, Unrealized (Loss) | (1) | (47) | ||||
Debt securities, Fair Value | 1,849 | 204,792 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Investments | 1,849 | 204,792 | ||||
Restricted Cash & Investments | 0 | 0 | ||||
Other Assets | 0 | 0 | ||||
Mutual funds | Level 1 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Trading securities, Cost | 81,576 | 80,694 | ||||
Trading securities, Unrealized Gain | 19,389 | 15,510 | ||||
Trading securities, Unrealized (Loss) | (27) | (33) | ||||
Trading securities, Fair Value | 100,938 | 96,171 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Investments | 0 | 0 | ||||
Restricted Cash & Investments | 0 | 0 | ||||
Other Assets | 100,938 | 96,171 | ||||
Government-sponsored enterprises | Level 2 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt securities, Cost | 3,498 | |||||
Debt securities, Unrealized Gain | 7 | |||||
Debt securities, Unrealized (Loss) | 0 | |||||
Debt securities, Fair Value | 3,505 | |||||
Cash and Cash Equivalents | 0 | |||||
Investments | 3,505 | |||||
Restricted Cash & Investments | 0 | |||||
Other Assets | 0 | |||||
Foreign government bonds | Level 2 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt securities, Cost | 15,119 | 32,995 | ||||
Debt securities, Unrealized Gain | 14 | 21 | ||||
Debt securities, Unrealized (Loss) | 0 | (4) | ||||
Debt securities, Fair Value | 15,133 | 33,012 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Investments | 15,133 | 33,012 | ||||
Restricted Cash & Investments | 0 | 0 | ||||
Other Assets | 0 | 0 | ||||
Corporate notes and bonds | Level 2 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt securities, Cost | 535,888 | 1,043,308 | ||||
Debt securities, Unrealized Gain | 766 | 2,247 | ||||
Debt securities, Unrealized (Loss) | (271) | (457) | ||||
Debt securities, Fair Value | 536,383 | 1,045,098 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Investments | 536,383 | 1,045,098 | ||||
Restricted Cash & Investments | 0 | 0 | ||||
Other Assets | 0 | 0 | ||||
Mortgage backed securities — commercial | Level 2 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt securities, Cost | 16,164 | 18,830 | ||||
Debt securities, Unrealized Gain | 1 | 17 | ||||
Debt securities, Unrealized (Loss) | (58) | (59) | ||||
Debt securities, Fair Value | 16,107 | 18,788 | ||||
Cash and Cash Equivalents | 0 | 0 | ||||
Investments | 16,107 | 18,788 | ||||
Restricted Cash & Investments | 0 | 0 | ||||
Other Assets | $ 0 | 0 | ||||
Mortgage backed securities — residential | Level 2 | ||||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||||
Debt securities, Cost | 5,623 | |||||
Debt securities, Unrealized Gain | 54 | |||||
Debt securities, Unrealized (Loss) | 0 | |||||
Debt securities, Fair Value | 5,677 | |||||
Cash and Cash Equivalents | 0 | |||||
Investments | 5,677 | |||||
Restricted Cash & Investments | 0 | |||||
Other Assets | $ 0 | |||||
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FINANCIAL INSTRUMENTS - Schedule of Cash, Cash Equivalents, Investments and Restricted Cash and Investments Unrealized Loss Positions (Details) $ in Thousands |
Sep. 26, 2021
USD ($)
|
---|---|
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | $ 174,418 |
Unrealized Losses 12 Months or Greater | 7,673 |
Total, Fair Value | 182,091 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (315) |
Unrealized Losses 12 Months or Greater | (42) |
Total, Gross Unrealized Loss | (357) |
U.S. Treasury and agencies | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 1,848 |
Unrealized Losses 12 Months or Greater | 0 |
Total, Fair Value | 1,848 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (1) |
Unrealized Losses 12 Months or Greater | 0 |
Total, Gross Unrealized Loss | (1) |
Municipal notes and bonds | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 2,082 |
Unrealized Losses 12 Months or Greater | 0 |
Total, Fair Value | 2,082 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (27) |
Unrealized Losses 12 Months or Greater | 0 |
Total, Gross Unrealized Loss | (27) |
Corporate notes and bonds | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 155,500 |
Unrealized Losses 12 Months or Greater | 7,673 |
Total, Fair Value | 163,173 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (229) |
Unrealized Losses 12 Months or Greater | (42) |
Total, Gross Unrealized Loss | (271) |
Mortgage backed securities — commercial | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 14,988 |
Unrealized Losses 12 Months or Greater | 0 |
Total, Fair Value | 14,988 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (58) |
Unrealized Losses 12 Months or Greater | 0 |
Total, Gross Unrealized Loss | $ (58) |
FINANCIAL INSTRUMENTS - Schedule of Amortized Cost and Fair Value of Cash Equivalents, Investments, and Restricted Cash and Investments with Contractual Maturities (Details) $ in Thousands |
Sep. 26, 2021
USD ($)
|
---|---|
Cost | |
Due in one year or less | $ 3,367,984 |
Due after one year through five years | 404,834 |
Due in more than five years | 26,240 |
Debt securities, Cost | 3,799,058 |
Fair Value | |
Due in one year or less | 3,368,163 |
Due after one year through five years | 405,155 |
Due in more than five years | 26,191 |
Total | $ 3,799,509 |
FINANCIAL INSTRUMENTS - Additional Information (Details) - Cash Flow Hedges |
3 Months Ended |
---|---|
Sep. 26, 2021 | |
Minimum | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Foreign currency cash flow hedge, expiration period | 12 months |
Maximum | |
Derivative Instruments, Gain (Loss) [Line Items] | |
Foreign currency cash flow hedge, expiration period | 24 months |
FINANCIAL INSTRUMENTS - Schedule of Total Notional Value of Cash Flow and Balance Sheet Hedge Instruments (Details) - Foreign Exchange Contract - Foreign currency forward contracts $ in Thousands |
Sep. 26, 2021
USD ($)
|
---|---|
Designated as Hedging Instrument | Buy Contracts | |
Derivative [Line Items] | |
Derivative notional amount | $ 307,590 |
Designated as Hedging Instrument | Sell Contracts | |
Derivative [Line Items] | |
Derivative notional amount | 565,342 |
Derivatives not designated as hedging instruments | Buy Contracts | |
Derivative [Line Items] | |
Derivative notional amount | 161,560 |
Derivatives not designated as hedging instruments | Sell Contracts | |
Derivative [Line Items] | |
Derivative notional amount | $ 312,721 |
FINANCIAL INSTRUMENTS - Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations Including Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
|
Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) Recognized in AOCI | $ (12,260) | $ (154) |
Gain (Loss) Reclassified from AOCI into Net Income | 3,543 | (922) |
Foreign Exchange Contracts | Revenue | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) Recognized in AOCI | (5,936) | (3,281) |
Gain (Loss) Reclassified from AOCI into Net Income | 5,263 | (835) |
Foreign Exchange Contracts | Cost of goods sold | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) Recognized in AOCI | (3,761) | 1,093 |
Gain (Loss) Reclassified from AOCI into Net Income | (643) | 560 |
Foreign Exchange Contracts | Research and Development | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) Recognized in AOCI | (1,249) | 394 |
Gain (Loss) Reclassified from AOCI into Net Income | 0 | 0 |
Foreign Exchange Contracts | Selling, general, and administrative | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) Recognized in AOCI | (1,314) | 1,640 |
Gain (Loss) Reclassified from AOCI into Net Income | (26) | 305 |
Foreign Exchange Contracts | Other expense, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain Recognized in Net Income | 6,520 | 2,747 |
Interest Rate Contracts | Other expense, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) Recognized in AOCI | 0 | 0 |
Gain (Loss) Reclassified from AOCI into Net Income | $ (1,051) | $ (952) |
INVENTORIES (Details) - USD ($) $ in Thousands |
Sep. 26, 2021 |
Jun. 27, 2021 |
|||
---|---|---|---|---|---|
Inventory Disclosure [Abstract] | |||||
Raw materials | $ 1,612,811 | $ 1,519,456 | |||
Work-in-process | 431,646 | 391,686 | |||
Finished goods | 827,684 | 778,152 | |||
Total inventories | $ 2,872,141 | $ 2,689,294 | [1] | ||
|
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Thousands |
3 Months Ended | |||||
---|---|---|---|---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
Jun. 27, 2021 |
||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||
Goodwill | $ 1,489,945 | $ 1,490,134 | [1] | |||
Tax deductible goodwill | 61,100 | $ 61,100 | ||||
Intangible asset amortization expense | 19,100 | $ 16,800 | ||||
Capitalized costs for internal-use software | $ 12,000 | |||||
|
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands |
Sep. 26, 2021 |
Jun. 27, 2021 |
---|---|---|
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 1,444,203 | $ 1,432,436 |
Accumulated Amortization | (1,319,189) | (1,300,071) |
Net | 125,014 | 132,365 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 630,268 | 630,303 |
Accumulated Amortization | (593,497) | (581,406) |
Net | 36,771 | 48,897 |
Existing technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 669,285 | 669,359 |
Accumulated Amortization | (660,915) | (659,898) |
Net | 8,370 | 9,461 |
Patents and other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 144,650 | 132,774 |
Accumulated Amortization | (64,777) | (58,767) |
Net | $ 79,873 | $ 74,007 |
GOODWILL AND INTANGIBLE ASSETS - Estimated Future Amortization Expense of Intangible Assets (Details) $ in Thousands |
Sep. 26, 2021
USD ($)
|
---|---|
Fiscal Year | |
2022 (remaining 9 months) | $ 54,972 |
2023 | 28,079 |
2024 | 17,194 |
2025 | 8,863 |
2026 | 3,203 |
Thereafter | 724 |
Net | $ 113,035 |
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands |
Sep. 26, 2021 |
Jun. 27, 2021 |
|||
---|---|---|---|---|---|
Payables and Accruals [Abstract] | |||||
Accrued compensation | $ 571,930 | $ 552,925 | |||
Warranty reserves | 198,660 | 176,030 | |||
Income and other taxes payable | 191,967 | 348,206 | |||
Dividend payable | 211,216 | 185,431 | |||
Other | 459,956 | 456,891 | |||
Accrued expenses and other current liabilities | $ 1,633,729 | $ 1,719,483 | [1] | ||
|
LONG-TERM DEBT AND OTHER BORROWINGS - Schedule of Outstanding Debt (Details) - USD ($) $ in Thousands |
Sep. 26, 2021 |
Jun. 27, 2021 |
May 05, 2020 |
Mar. 04, 2019 |
Mar. 12, 2015 |
---|---|---|---|---|---|
Debt Instrument [Line Items] | |||||
Total debt outstanding, at par | $ 5,000,000 | $ 5,000,000 | |||
Unamortized discount | (37,634) | (38,243) | |||
Fair value adjustment - interest rate contracts | 6,174 | 6,621 | |||
Unamortized bond issuance costs | (7,291) | (7,443) | |||
Total debt outstanding, at carrying value | $ 4,961,249 | 4,960,935 | |||
Senior notes | Fixed-rate 3.80% Senior Notes Due March 15, 2025 ("2025 Notes") | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 3.80% | 3.80% | |||
Amount | $ 500,000 | $ 500,000 | |||
Effective Interest Rate | 3.87% | 3.87% | |||
Senior notes | Fixed-rate 3.75% Senior Notes Due March 15, 2026 ("2026 Notes") | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 3.75% | 3.75% | |||
Amount | $ 750,000 | $ 750,000 | |||
Effective Interest Rate | 3.86% | 3.86% | |||
Senior notes | Fixed-rate 4.00% Senior Notes Due March 15, 2029 ("2029 Notes") | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 4.00% | 4.00% | |||
Amount | $ 1,000,000 | $ 1,000,000 | |||
Effective Interest Rate | 4.09% | 4.09% | |||
Senior notes | Fixed-rate 1.90% Senior Note Due June 15, 2030 ("2030 Notes") | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 1.90% | 1.90% | |||
Amount | $ 750,000 | $ 750,000 | |||
Effective Interest Rate | 2.01% | 2.01% | |||
Senior notes | Fixed-rate 4.875% Senior Notes Due March 15, 2049 ("2049 Notes") | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 4.875% | 4.875% | |||
Amount | $ 750,000 | $ 750,000 | |||
Effective Interest Rate | 4.93% | 4.93% | |||
Senior notes | Fixed-rate 2.875% Senior Note Due June 15, 2050 ("2050 Notes") | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 2.875% | 2.875% | |||
Amount | $ 750,000 | $ 750,000 | |||
Effective Interest Rate | 2.93% | 2.93% | |||
Senior notes | Fixed-rate 3.125% Senior Note Due June 15, 2060 ("2060 Notes") | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 3.125% | 3.125% | |||
Amount | $ 500,000 | $ 500,000 | |||
Effective Interest Rate | 3.18% | 3.18% |
LONG-TERM DEBT AND OTHER BORROWINGS - Senior Notes (Details) - Senior notes - USD ($) |
3 Months Ended | |||
---|---|---|---|---|
Sep. 26, 2021 |
May 05, 2020 |
Mar. 04, 2019 |
Mar. 12, 2015 |
|
Debt Instrument [Line Items] | ||||
Percentage of principal amount of debt redeemed | 100.00% | |||
2030 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 750,000,000 | |||
Senior notes interest rate | 1.90% | 1.90% | ||
Redemption percent | 101.00% | |||
2050 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 750,000,000 | |||
Senior notes interest rate | 2.875% | 2.875% | ||
Redemption percent | 101.00% | |||
2060 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 500,000,000 | |||
Senior notes interest rate | 3.125% | 3.125% | ||
Redemption percent | 101.00% | |||
2026 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 750,000,000 | |||
Senior notes interest rate | 3.75% | 3.75% | ||
Redemption percent | 101.00% | |||
2029 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 1,000,000,000 | |||
Senior notes interest rate | 4.00% | 4.00% | ||
Redemption percent | 101.00% | |||
2049 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 750,000,000 | |||
Senior notes interest rate | 4.875% | 4.875% | ||
Redemption percent | 101.00% | |||
2025 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 500,000,000 | |||
Senior notes interest rate | 3.80% | 3.80% | ||
Redemption percent | 101.00% |
LONG-TERM DEBT AND OTHER BORROWINGS - Schedule of Additional Senior Notes Information (Details) $ in Thousands |
3 Months Ended |
---|---|
Sep. 26, 2021
USD ($)
| |
2025 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (in years) | 3 years 6 months |
2025 Notes | Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 545,650 |
2026 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (in years) | 4 years 6 months |
2026 Notes | Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 833,085 |
2029 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (in years) | 7 years 6 months |
2029 Notes | Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 1,154,650 |
2030 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (in years) | 8 years 8 months 12 days |
2030 Notes | Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 753,600 |
2049 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (in years) | 27 years 6 months |
2049 Notes | Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 1,033,058 |
2050 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (in years) | 28 years 8 months 12 days |
2050 Notes | Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 772,118 |
2060 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (in years) | 38 years 8 months 12 days |
2060 Notes | Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 529,535 |
LONG-TERM DEBT AND OTHER BORROWINGS - Revolving Credit Facility (Details) - Revolving credit facility - USD ($) |
Jun. 17, 2021 |
Sep. 26, 2021 |
---|---|---|
Extinguishment of Debt [Line Items] | ||
Revolving unsecured credit facility | $ 1,500,000,000 | |
Additional increase in the facility, available expansion | 600,000,000 | |
Revolving unsecured credit facility, available expansion | $ 2,100,000,000 | |
Borrowings outstanding | $ 0 | |
Federal Funds rate | ||
Extinguishment of Debt [Line Items] | ||
Variable interest spread | 0.50% | |
One-month LIBOR | ||
Extinguishment of Debt [Line Items] | ||
Variable interest spread | 1.00% | |
One-month LIBOR | Minimum | ||
Extinguishment of Debt [Line Items] | ||
Variable interest spread | 0.00% | |
One-month LIBOR | Maximum | ||
Extinguishment of Debt [Line Items] | ||
Variable interest spread | 0.30% | |
LIBOR | Minimum | ||
Extinguishment of Debt [Line Items] | ||
Variable interest spread | 0.805% | |
LIBOR | Maximum | ||
Extinguishment of Debt [Line Items] | ||
Variable interest spread | 1.30% |
LONG-TERM DEBT AND OTHER BORROWINGS - Commercial Paper Program (Details) - Commercial paper - USD ($) |
Sep. 26, 2021 |
Jul. 31, 2021 |
Jun. 27, 2021 |
Nov. 13, 2017 |
---|---|---|---|---|
Line of Credit Facility [Line Items] | ||||
Revolving unsecured credit facility maximum borrowing capacity | $ 1,500,000,000 | $ 1,250,000,000 | ||
Commercial paper | $ 0 | $ 0 |
LONG-TERM DEBT AND OTHER BORROWINGS - Schedule of Recognized Interest Cost (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
|
Debt Disclosure [Abstract] | ||
Contractual interest coupon | $ 43,782 | $ 49,571 |
Amortization of interest discount | 683 | 1,012 |
Amortization of issuance costs | 335 | 411 |
Effect of interest rate contracts, net | 605 | 506 |
Total interest cost recognized | $ 45,405 | $ 51,500 |
LEASES (Details) - USD ($) $ in Thousands |
Sep. 26, 2021 |
Jun. 27, 2021 |
[1] | ||
---|---|---|---|---|---|
Guarantor Obligations [Line Items] | |||||
Restricted cash and investments | $ 251,448 | $ 252,487 | |||
Cash collateral | |||||
Guarantor Obligations [Line Items] | |||||
Restricted cash and investments | $ 250,000 | ||||
California Facility Leases | |||||
Guarantor Obligations [Line Items] | |||||
Finance lease term | 7 years | ||||
California Facility Leases | Maximum | |||||
Guarantor Obligations [Line Items] | |||||
Residual value of operating lease | $ 298,400 | ||||
|
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) $ in Thousands |
Sep. 26, 2021 |
Jun. 27, 2021 |
Sep. 27, 2020 |
Jun. 28, 2020 |
---|---|---|---|---|
Loss Contingencies [Line Items] | ||||
Warranty reserves | $ 214,244 | $ 191,758 | $ 136,860 | $ 129,197 |
Other long-term liabilities | ||||
Loss Contingencies [Line Items] | ||||
Warranty reserves | 15,600 | |||
Letters of Credit | ||||
Loss Contingencies [Line Items] | ||||
Guarantee obligation maximum exposure | $ 74,100 |
COMMITMENTS AND CONTINGENCIES - Schedule of Changes in Product Warranty Reserves (Details) - USD ($) $ in Thousands |
3 Months Ended | |
---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
|
Changes in Product Warranty Reserve | ||
Balance at beginning of period | $ 191,758 | $ 129,197 |
Warranties issued during the period | 70,672 | 46,044 |
Settlements made during the period | (60,292) | (36,131) |
Changes in liability for pre-existing warranties | 12,106 | (2,250) |
Balance at end of period | $ 214,244 | $ 136,860 |
STOCK REPURCHASE PROGRAM - Narratives (Details) shares in Thousands |
1 Months Ended | 3 Months Ended | |
---|---|---|---|
Aug. 31, 2021
USD ($)
financial_institution
shares
|
Nov. 30, 2020
USD ($)
|
Sep. 26, 2021
USD ($)
shares
|
|
Equity, Class of Treasury Stock [Line Items] | |||
Net shares of settlements to cover tax withholding obligations (in shares) | shares | 12 | ||
Amount paid for shares under net share settlements | $ | $ 7,100,000 | ||
Number of financial institutions | financial_institution | 2 | ||
Stock repurchase program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Board authorized increase | $ | $ 5,000,000,000 | ||
Purchase of treasury stock (in shares) | shares | 1,725 | ||
September 2021 ASR | |||
Equity, Class of Treasury Stock [Line Items] | |||
Repurchase amount | $ | $ 650,000,000 | ||
Purchase of treasury stock (in shares) | shares | 806 | ||
Percent of prepayment amount | 75.00% |
STOCK REPURCHASE PROGRAM - Repurchases Under the Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands |
3 Months Ended | ||
---|---|---|---|
Sep. 26, 2021 |
Sep. 27, 2020 |
Jun. 27, 2021 |
|
Equity, Class of Treasury Stock [Line Items] | |||
Total Cost of Repurchase | $ 1,216,874 | $ 467,098 | |
Stock repurchase program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Repurchased (in shares) | 1,725 | ||
Total Cost of Repurchase | $ 1,209,744 | ||
Average Price Paid Per Share (in dollars per share) | $ 608.98 | ||
Amount Available Under Repurchase Program | $ 3,012,476 | $ 4,222,220 |
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss (Details) $ in Thousands |
3 Months Ended | |||
---|---|---|---|---|
Sep. 26, 2021
USD ($)
| ||||
Change in Accumulated Other Comprehensive Loss | ||||
Beginning balance | $ 6,027,188 | [1] | ||
Other comprehensive (loss) income before reclassifications | (15,243) | |||
(Gains) losses reclassified from accumulated other comprehensive loss to net income | (2,397) | |||
Net current-period other comprehensive (loss) income | (17,640) | |||
Ending balance | 5,820,043 | |||
Accumulated Foreign Currency Translation Adjustment | ||||
Change in Accumulated Other Comprehensive Loss | ||||
Beginning balance | (31,413) | |||
Other comprehensive (loss) income before reclassifications | (4,032) | |||
(Gains) losses reclassified from accumulated other comprehensive loss to net income | 0 | |||
Net current-period other comprehensive (loss) income | (4,032) | |||
Ending balance | (35,445) | |||
Accumulated Unrealized Gain or Loss on Cash flow hedges | ||||
Change in Accumulated Other Comprehensive Loss | ||||
Beginning balance | (14,125) | |||
Other comprehensive (loss) income before reclassifications | (9,005) | |||
(Gains) losses reclassified from accumulated other comprehensive loss to net income | (3,542) | |||
Net current-period other comprehensive (loss) income | (12,547) | |||
Ending balance | (26,672) | |||
Accumulated Unrealized Holding Gain or Loss on Available-For-Sale Investments | ||||
Change in Accumulated Other Comprehensive Loss | ||||
Beginning balance | 1,611 | |||
Other comprehensive (loss) income before reclassifications | (2,405) | |||
(Gains) losses reclassified from accumulated other comprehensive loss to net income | 1,145 | |||
Net current-period other comprehensive (loss) income | (1,260) | |||
Ending balance | 351 | |||
Accumulated Unrealized Components of Defined Benefit Plans | ||||
Change in Accumulated Other Comprehensive Loss | ||||
Beginning balance | (20,201) | |||
Other comprehensive (loss) income before reclassifications | 199 | |||
(Gains) losses reclassified from accumulated other comprehensive loss to net income | 0 | |||
Net current-period other comprehensive (loss) income | 199 | |||
Ending balance | (20,002) | |||
Total | ||||
Change in Accumulated Other Comprehensive Loss | ||||
Beginning balance | (64,128) | |||
Ending balance | $ (81,768) | |||
|
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