Restructuring Activities (Notes)

12 Months Ended

Jun. 30, 2018

Restructuring and Related Activities [Abstract]

Restructuring and Related Activities Disclosure [Text Block]

RESTRUCTURING ACTIVITIES

Fiscal year 2018

During the fiscal year ended June 30, 2018, the Company recorded $15.1 million in “Severance and restructuring expenses" in the Consolidated Statements of Income related to various restructuring plans designed to reduce costs. These charges were primarily associated with continued reorganization of certain business units and functions, which impacted multiple job classifications and locations, as well as employee enrollments in voluntary separation programs.

Fiscal year 2017

During the fiscal year ended June 24, 2017, the Company recorded $12.5 million in “Severance and restructuring expenses" in the Consolidated Statements of Income related to various restructuring plans designed to reduce costs. These charges were primarily associated with continued reorganization of certain business units and functions and the closure of the Dallas wafer level packaging (“WLP”) manufacturing facilities. Multiple job classifications and locations were impacted by these activities.

During the fiscal year ended June 24, 2017, the Company completed the closure of its Dallas, Texas campus, including ceasing operations of its WLP manufacturing facility. The Company recorded accelerated depreciation charges of $3.5 million in “Cost of goods sold” and $0.8 million in "Operating expenses" in the Consolidated Statements of Income during the fiscal year ended June 24, 2017 in connection with this closure.

Fiscal year 2016

San Jose Fab Shutdown

In October 2014, the Company initiated a plan to shut down its San Jose wafer fabrication facility. The Company reached the decision that it was not economically feasible to maintain this facility, which was used primarily for fab process development and low volume manufacturing, as the Company intended to utilize other resources to complete such activities in the future. This plan included cash charges related to employee severance and non-cash charges related to accelerated depreciation. This plan has been completed, and the shutdown took place in the second quarter of fiscal year 2016.

During the fiscal year ending June 25, 2016, the Company recorded accelerated depreciation charges of $41.6 million in “Cost of goods sold” and $0.4 million in “Severance and restructuring expenses” in the Consolidated Statements of Income. The sale of the San Jose wafer fabrication facility took place during the second quarter of fiscal year 2016. The cumulative costs recorded in fiscal year 2015 and 2016 to complete this restructuring plan were $100.3 million.

Other Plans

During the fiscal year ending June 25, 2016, the Company recorded $24.0 million in “Severance and restructuring expenses" in the Consolidated Statements of Income related to various restructuring plans designed to reduce costs. These charges were associated with continued reorganization of certain business units and functions and the planned closure of the Dallas wafer level packaging (“WLP”) manufacturing facilities. Multiple job classifications and locations were impacted by these activities.

As part of the Dallas, Texas campus closure, including its WLP manufacturing facility in fiscal year 2017, the Company recorded accelerated depreciation charges of $13.0 million in “Cost of goods sold” in the Consolidated Statements of Income during the fiscal year ended June 25, 2016.

Future expected restructuring costs to be incurred with other plans was $4.7 million as of June 25, 2016.

Restructuring Accruals

The Company has accruals for severance and restructuring payments within Accrued salary and related expenses in the accompanying Consolidated Balance Sheets. The following table summarizes changes in the accruals associated with these restructuring activities during the fiscal years ended June 30, 2018 and June 24, 2017:

		Balance, June 25, 2016		Fiscal 2017								Balance, June 24, 2017		Fiscal 2018								Balance, June 30, 2018
				Charges		Cash Payments			Change in Estimates					Charges		Cash Payments			Change in Estimates
	(in thousands)
Severance - All plans (1)		$	7,578	$	12,671	$	(19,506	)	$	(217	)	$	526	$	15,464	$	(12,617	)	$	(404	)	$	2,969
Total		$	7,578	$	12,671	$	(19,506	)	$	(217	)	$	526	$	15,464	$	(12,617	)	$	(404	)	$	2,969

(1) Charges and changes in estimates are included in Severance and restructuring expenses in the accompanying Consolidated Statements of Income.

Change in estimate:

Due to the above-mentioned restructuring activities, the Company recorded accelerated depreciation resulting from the change in estimated useful lives of certain long-lived assets included in restructuring plans. In all periods that accelerated depreciation expense was recorded, this resulted in additional expense and therefore impacted operating income (loss), net income (loss) and earnings per share as presented in the table below.

	For the Years Ended
	June 30, 2018		June 24, 2017			June 25, 2016
	(in thousands, except per share data)
Operating income (loss), as reported	$	833,448	$	694,777		$	313,849
Operating income (loss), excluding accelerated depreciation expense	833,448		699,003			368,475
Effect of change in estimate	$	—	$	(4,226	)	$	(54,626	)
Net income (loss), as reported	$	467,318	$	571,613		$	227,475
Net income (loss), excluding accelerated depreciation expense	467,318		575,547			283,129
Effect of change in estimate	$	—	$	(3,934	)	$	(55,654	)
Basic earnings (loss) per share, as reported	$	1.66	$	2.02		$	0.80
Diluted earnings (loss) per share, as reported	$	1.64	$	1.98		$	0.79
Basic earnings (loss) per share, excluding accelerated depreciation expense	$	1.66	$	2.03		$	0.99
Diluted earnings (loss) per share, excluding accelerated depreciation expense	$	1.64	$	2.00		$	0.98
Effect of change in estimate - basic earnings (loss) per share	$	—	$	(0.01	)	$	(0.19	)
Effect of change in estimate - diluted earnings (loss) per share	$	—	$	(0.02	)	$	(0.19	)