(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 | ||||||
☒ | Accelerated filer | ☐ | |||||||||
Non-accelerated filer | ☐ | Smaller reporting company | |||||||||
Emerging growth company |
in millions of U.S. Dollars, except share data in thousands | March 27, 2022 | June 27, 2021 | |||||||||
Assets | |||||||||||
Current assets: | |||||||||||
Cash and cash equivalents | $ | $ | |||||||||
Short-term investments | |||||||||||
Total cash, cash equivalents and short-term investments | |||||||||||
Accounts receivable, net | |||||||||||
Inventories | |||||||||||
Income taxes receivable | |||||||||||
Prepaid expenses | |||||||||||
Other current assets | |||||||||||
Current assets held for sale | |||||||||||
Total current assets | |||||||||||
Property and equipment, net | |||||||||||
Goodwill | |||||||||||
Intangible assets, net | |||||||||||
Long-term receivables | |||||||||||
Deferred tax assets | |||||||||||
Other assets | |||||||||||
Long-term assets of discontinued operations | |||||||||||
Total assets | $ | $ | |||||||||
Liabilities and Shareholders' Equity | |||||||||||
Current liabilities: | |||||||||||
Accounts payable and accrued expenses | $ | $ | |||||||||
Accrued contract liabilities | |||||||||||
Income taxes payable | |||||||||||
Finance lease liabilities | |||||||||||
Other current liabilities | |||||||||||
Current liabilities of discontinued operations | |||||||||||
Total current liabilities | |||||||||||
Long-term liabilities: | |||||||||||
Convertible notes, net | |||||||||||
Deferred tax liabilities | |||||||||||
Finance lease liabilities - long-term | |||||||||||
Other long-term liabilities | |||||||||||
Long-term liabilities of discontinued operations | |||||||||||
Total long-term liabilities | |||||||||||
Commitments and contingencies | |||||||||||
Shareholders’ equity: | |||||||||||
Preferred stock, par value $ | |||||||||||
Common stock, par value $ | |||||||||||
Additional paid-in-capital | |||||||||||
Accumulated other comprehensive (loss) income | ( | ||||||||||
Accumulated deficit | ( | ( | |||||||||
Total shareholders’ equity | |||||||||||
Total liabilities and shareholders’ equity | $ | $ |
Three months ended | Nine months ended | ||||||||||||||||||||||
March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | ||||||||||||||||||||
in millions of U.S. Dollars, except share data | |||||||||||||||||||||||
Revenue, net | $ | $ | $ | $ | |||||||||||||||||||
Cost of revenue, net | |||||||||||||||||||||||
Gross profit | |||||||||||||||||||||||
Operating expenses: | |||||||||||||||||||||||
Research and development | |||||||||||||||||||||||
Sales, general and administrative | |||||||||||||||||||||||
Amortization or impairment of acquisition-related intangibles | |||||||||||||||||||||||
(Gain) loss on disposal or impairment of other assets | ( | ( | |||||||||||||||||||||
Other operating expense | |||||||||||||||||||||||
Operating loss | ( | ( | ( | ( | |||||||||||||||||||
Non-operating expense, net | |||||||||||||||||||||||
Loss before income taxes | ( | ( | ( | ( | |||||||||||||||||||
Income tax expense (benefit) | ( | ( | |||||||||||||||||||||
Net loss from continuing operations | ( | ( | ( | ( | |||||||||||||||||||
Net loss from discontinued operations | ( | ( | |||||||||||||||||||||
Net loss | ( | ( | ( | ( | |||||||||||||||||||
Net income from discontinued operations attributable to noncontrolling interest | |||||||||||||||||||||||
Net loss attributable to controlling interest | ($ | ($ | ($ | ($ | |||||||||||||||||||
Basic and diluted loss per share | |||||||||||||||||||||||
Continuing operations | ($ | ($ | ($ | ($ | |||||||||||||||||||
Net loss attributable to controlling interest | ($ | ($ | ($ | ($ | |||||||||||||||||||
Weighted average shares - basic and diluted (in thousands) | |||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | |||||||||||||||||||
Net loss | ($ | ($ | ($ | ($ | |||||||||||||||||||
Other comprehensive loss: | |||||||||||||||||||||||
Reclassification of currency translation gain to loss on sale of discontinued operations | ( | ( | |||||||||||||||||||||
Net unrealized loss on available-for-sale securities | ( | ( | ( | ( | |||||||||||||||||||
Comprehensive loss | ( | ( | ( | ( | |||||||||||||||||||
Net income from discontinued operations attributable to noncontrolling interest | |||||||||||||||||||||||
Comprehensive loss attributable to controlling interest | ($ | ($ | ($ | ($ |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Shareholders' Equity | |||||||||||||||||||||||||||||||
(in millions of U.S Dollars, except share data in thousands) | Number of Shares | Par Value | |||||||||||||||||||||||||||||||||
Balance at June 27, 2021 | $ | $ | ($ | $ | $ | ||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Unrealized loss on available-for-sale securities | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Comprehensive loss | ( | ||||||||||||||||||||||||||||||||||
Tax withholding on vested equity awards | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Exercise of stock options and issuance of shares | — | — | — | ||||||||||||||||||||||||||||||||
Balance at September 26, 2021 | $ | $ | ($ | $ | $ | ||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Unrealized loss on available-for-sale securities | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Comprehensive loss | ( | ||||||||||||||||||||||||||||||||||
Tax withholding on vested equity awards | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Exercise of stock options and issuance of shares | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of shares related to the extinguishment of convertible notes due September 1, 2023 | — | — | |||||||||||||||||||||||||||||||||
Balance at December 26, 2021 | $ | $ | ($ | ($ | $ | ||||||||||||||||||||||||||||||
Net loss | — | — | — | ( | — | ( | |||||||||||||||||||||||||||||
Unrealized loss on available-for-sale securities | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||
Comprehensive loss | ( | ||||||||||||||||||||||||||||||||||
Tax withholding on vested equity awards | — | — | ( | — | — | ( | |||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | |||||||||||||||||||||||||||||||
Exercise of stock options and issuance of shares | — | — | — | ||||||||||||||||||||||||||||||||
Issuance of convertible notes due February 15, 2028 | — | — | — | — | |||||||||||||||||||||||||||||||
Capped call transactions related to the issuance of convertible notes due February 15, 2028 | — | ( | — | — | ( | ||||||||||||||||||||||||||||||
Balance at March 27, 2022 | $ | $ | ($ | ($ | $ |
Common Stock | Additional Paid-in Capital | Accumulated Deficit | Accumulated Other Comprehensive Income | Total Equity - Controlled Interest | Non-controlling Interest from Discontinued Operations | Total Shareholders' Equity | |||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars, except share data) | Number of Shares | Par Value | |||||||||||||||||||||||||||||||||||||||||||||
Balance at June 28, 2020 | $ | $ | ($ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Net (loss) income | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Unrealized gain on available-for-sale securities | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Comprehensive (loss) income | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Tax withholding on vested equity awards | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of shares | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Balance at September 27, 2020 | $ | $ | ($ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Net (loss) income | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Unrealized loss on available-for-sale securities | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Comprehensive (loss) income | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Tax withholding on vested equity awards | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of shares | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Balance at December 27, 2020 | $ | $ | ($ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||||||||||
Net (loss) income | — | — | — | ( | — | ( | ( | ||||||||||||||||||||||||||||||||||||||||
Reclassification of currency translation gain to loss on sale of discontinued operations | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Unrealized loss on available-for-sale securities | — | — | — | — | ( | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Comprehensive (loss) income | ( | ( | |||||||||||||||||||||||||||||||||||||||||||||
Tax withholding on vested equity awards | — | — | ( | — | — | ( | — | ( | |||||||||||||||||||||||||||||||||||||||
Stock-based compensation | — | — | — | — | — | ||||||||||||||||||||||||||||||||||||||||||
Exercise of stock options and issuance of shares | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Issuance of shares under the at-the-market offering program, net of issuance costs | — | — | — | — | |||||||||||||||||||||||||||||||||||||||||||
Reclassification of noncontrolling interest to loss on sale of discontinued operations | — | — | — | — | — | — | ( | ( | |||||||||||||||||||||||||||||||||||||||
Balance at March 28, 2021 | $ | $ | ($ | $ | $ | $ | $ |
Nine months ended | |||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | |||||||||
Operating activities: | |||||||||||
Net loss | ($ | ($ | |||||||||
Net loss from discontinued operations | ( | ||||||||||
Net loss from continuing operations | ( | ( | |||||||||
Adjustments to reconcile net loss from continuing operations to cash used in operating activities: | |||||||||||
Depreciation and amortization | |||||||||||
Amortization of debt issuance costs and discount, net of non-cash capitalized interest | |||||||||||
Stock-based compensation | |||||||||||
Loss on extinguishment of debt | |||||||||||
Loss on disposal or impairment of long-lived assets | |||||||||||
Amortization of premium/discount on investments | |||||||||||
Realized gain on sale of investments | ( | ( | |||||||||
Gain on equity investment | ( | ||||||||||
Foreign exchange gain on equity investment | ( | ||||||||||
Deferred income taxes | |||||||||||
Changes in operating assets and liabilities: | |||||||||||
Accounts receivable, net | ( | ( | |||||||||
Inventories | ( | ( | |||||||||
Prepaid expenses and other assets | ( | ( | |||||||||
Accounts payable, trade | |||||||||||
Accrued salaries and wages and other liabilities | |||||||||||
Accrued contract liabilities | ( | ||||||||||
Net cash used in operating activities of continuing operations | ( | ( | |||||||||
Net cash used in operating activities of discontinued operations | ( | ||||||||||
Cash used in operating activities | ( | ( | |||||||||
Investing activities: | |||||||||||
Purchases of property and equipment | ( | ( | |||||||||
Purchases of patent and licensing rights | ( | ( | |||||||||
Proceeds from sale of property and equipment, including insurance proceeds | |||||||||||
Purchases of short-term investments | ( | ( | |||||||||
Proceeds from maturities of short-term investments | |||||||||||
Proceeds from sale of short-term investments | |||||||||||
Reimbursement of property and equipment purchases from long-term incentive agreement | |||||||||||
Proceeds from sale of business, net, including receipt of note receivable | |||||||||||
Net cash used in investing activities of continuing operations | ( | ( | |||||||||
Net cash used in investing activities of discontinued operations | ( | ||||||||||
Cash used in investing activities | ( | ( | |||||||||
Financing activities: | |||||||||||
Proceeds from long-term debt borrowings | |||||||||||
Payments on long-term debt borrowings, including finance lease obligations | ( | ( | |||||||||
Proceeds from issuance of common stock | |||||||||||
Tax withholding on vested equity awards | ( | ( | |||||||||
Proceeds from convertible notes | |||||||||||
Payments of debt issuance costs | ( | ||||||||||
Cash paid for capped call transactions | ( | ||||||||||
Commitment fee on long-term incentive agreement | ( | ( | |||||||||
Cash provided by financing activities | |||||||||||
Effects of foreign exchange changes on cash and cash equivalents | |||||||||||
Net change in cash and cash equivalents | |||||||||||
Cash and cash equivalents, beginning of period | |||||||||||
Cash and cash equivalents, end of period | $ | $ | |||||||||
Three months ended | Nine months ended | ||||||||||
(in millions of U.S. Dollars) | March 28, 2021 | March 28, 2021 | |||||||||
Revenue, net | $ | $ | |||||||||
Cost of revenue, net | |||||||||||
Gross profit | |||||||||||
Operating expenses: | |||||||||||
Research and development | |||||||||||
Sales, general and administrative | |||||||||||
Goodwill impairment | |||||||||||
Impairment on assets held for sale | |||||||||||
Gain on disposal or impairment of long-lived assets | ( | ( | |||||||||
Other operating expense | |||||||||||
Operating loss | ( | ( | |||||||||
Non-operating income | ( | ( | |||||||||
Loss before income taxes and loss on sale | ( | ( | |||||||||
Loss on sale | |||||||||||
Loss before income taxes | ( | ( | |||||||||
Income tax expense | |||||||||||
Net loss | ( | ( | |||||||||
Net income attributable to noncontrolling interest | |||||||||||
Net loss attributable to controlling interest | ($ | ($ |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | Revenue | % of Revenue | Revenue | % of Revenue | Revenue | % of Revenue | Revenue | % of Revenue | |||||||||||||||||||||||||||||||||||||||
Europe | $ | % | $ | % | $ | % | $ | % | |||||||||||||||||||||||||||||||||||||||
United States | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
China | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Japan | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
South Korea | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Other | % | % | % | % | |||||||||||||||||||||||||||||||||||||||||||
Total | $ | $ | $ | $ |
Operating Leases: | March 27, 2022 | June 27, 2021 | |||||||||
Right-of-use asset (1) | $ | $ | |||||||||
Current lease liability (2) | |||||||||||
Non-current lease liability (3) | |||||||||||
Total operating lease liabilities | $ | $ | |||||||||
Finance Leases: | |||||||||||
Finance lease assets (4) | $ | $ | |||||||||
Current portion of finance lease liabilities | |||||||||||
Finance lease liabilities, less current portion | |||||||||||
Total finance lease liabilities | $ | $ |
Nine months ended | |||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | |||||||||
Cash used in operating activities: | |||||||||||
Cash paid for operating leases | $ | $ | |||||||||
Cash paid for interest portion of financing leases | |||||||||||
Cash used in financing activities: | |||||||||||
Cash paid for principal portion of finance leases | |||||||||||
Fiscal Year Ending | Operating Leases | Finance Leases | Total | ||||||||
June 26, 2022 (remainder of fiscal 2022) | $ | $ | $ | ||||||||
June 25, 2023 | |||||||||||
June 30, 2024 | |||||||||||
June 29, 2025 | |||||||||||
June 28, 2026 | |||||||||||
Thereafter | |||||||||||
Total lease payments | |||||||||||
Imputed lease interest | ( | ( | ( | ||||||||
Total lease liabilities | $ | $ | $ |
Operating Leases | Finance Leases | |||||||
Weighted average remaining lease term (in months) (1) | ||||||||
Weighted average discount rate (2) | % | % |
June 26, 2022 (remainder of fiscal 2022) | $ | ||||
June 25, 2023 | |||||
Total future minimum rental income | $ |
(in millions of U.S. Dollars) | March 27, 2022 | June 27, 2021 | |||||||||
Billed trade receivables | $ | $ | |||||||||
Unbilled contract receivables | |||||||||||
Royalties | |||||||||||
Allowance for bad debts | ( | ( | |||||||||
Accounts receivable, net | $ | $ |
(in millions of U.S. Dollars) | March 27, 2022 | ||||
Balance at beginning of period | $ | ||||
Current period provision change | |||||
Write-offs, net of recoveries | |||||
Balance at end of period | $ |
(in millions of U.S. Dollars) | March 27, 2022 | June 27, 2021 | |||||||||
Raw material | $ | $ | |||||||||
Work-in-progress | |||||||||||
Finished goods | |||||||||||
Inventories | $ | $ |
(in millions of U.S. Dollars) | March 27, 2022 | June 27, 2021 | |||||||||
Reimbursement receivable on long-term incentive agreement | $ | $ | |||||||||
Accrued interest receivable | |||||||||||
Receivable on Wafer Supply Agreement | |||||||||||
Inventory related to Wafer Supply Agreement | |||||||||||
Deferred product costs | |||||||||||
Other | |||||||||||
Other current assets | $ | $ |
(in millions of U.S. Dollars) | March 27, 2022 | June 27, 2021 | |||||||||
Accounts payable, trade | $ | $ | |||||||||
Accrued salaries and wages | |||||||||||
Accrued property and equipment | |||||||||||
Accrued expenses | |||||||||||
Other | |||||||||||
Accounts payable and accrued expenses | $ | $ |
Three months ended | Nine months ended | ||||||||||||||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | |||||||||||||||||||
Factory optimization restructuring | $ | $ | $ | $ | |||||||||||||||||||
Severance and other restructuring | |||||||||||||||||||||||
Total restructuring costs | |||||||||||||||||||||||
Project, transformation and transaction costs | |||||||||||||||||||||||
Factory optimization start-up costs | |||||||||||||||||||||||
Non-restructuring related executive severance | |||||||||||||||||||||||
Other operating expense | $ | $ | $ | $ |
Three months ended | Nine months ended | ||||||||||||||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | |||||||||||||||||||
Foreign currency gain, net | ($ | ($ | ($ | ($ | |||||||||||||||||||
Gain on sale of investments, net | ( | ( | ( | ||||||||||||||||||||
Loss on debt extinguishment (1) | |||||||||||||||||||||||
Gain on equity investment, net | ( | ( | |||||||||||||||||||||
Interest income | ( | ( | ( | ( | |||||||||||||||||||
Interest expense, net of capitalized interest | |||||||||||||||||||||||
Loss on Wafer Supply Agreement | |||||||||||||||||||||||
Loss on early payment of transaction-related note receivable (2) | |||||||||||||||||||||||
Other, net | ( | ( | |||||||||||||||||||||
Non-operating expense, net | $ | $ | $ | $ |
Nine months ended | |||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | |||||||||
Lease asset and liability additions | $ | $ | |||||||||
Lease asset and liability modifications, net | |||||||||||
Lease terminations | ( | ||||||||||
Transfer of finance lease liability to accounts payable and accrued expenses (1) | |||||||||||
Settlement of 2023 Notes in shares of common stock (2) | |||||||||||
Decrease in property, plant and equipment from long-term incentive related receivables |
March 27, 2022 | ||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Credit Loss Allowance | Estimated Fair Value | ||||||||||||||||||||||||||||
Municipal bonds | $ | $ | ($ | $ | $ | |||||||||||||||||||||||||||
Corporate bonds | ( | |||||||||||||||||||||||||||||||
U.S. agency securities | ( | |||||||||||||||||||||||||||||||
U.S. treasury securities | ( | |||||||||||||||||||||||||||||||
Non-U.S. government securities | ( | |||||||||||||||||||||||||||||||
Commercial paper | ||||||||||||||||||||||||||||||||
Variable rate demand notes | ||||||||||||||||||||||||||||||||
Total short-term investments | $ | $ | ($ | $ | $ | |||||||||||||||||||||||||||
June 27, 2021 | ||||||||||||||||||||||||||||||||
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Credit Loss Allowance | Estimated Fair Value | ||||||||||||||||||||||||||||
Municipal bonds | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Corporate bonds | ( | |||||||||||||||||||||||||||||||
U.S. agency securities | ||||||||||||||||||||||||||||||||
U.S. treasury securities | ( | |||||||||||||||||||||||||||||||
Certificates of deposit | ||||||||||||||||||||||||||||||||
Commercial paper | ||||||||||||||||||||||||||||||||
Variable rate demand notes | ||||||||||||||||||||||||||||||||
Total short-term investments | $ | $ | ($ | $ | $ |
March 27, 2022 | ||||||||||||||||||||||||||||||||||||||
Less than 12 Months | Greater than 12 Months | Total | ||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||||||||||||||||
Municipal bonds | $ | ($ | $ | $ | $ | ($ | ||||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | ( | |||||||||||||||||||||||||||||||||||
U.S. agency securities | ( | ( | ||||||||||||||||||||||||||||||||||||
U.S. treasury securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Total | $ | ($ | $ | ($ | $ | ($ | ||||||||||||||||||||||||||||||||
Number of securities with an unrealized loss | ||||||||||||||||||||||||||||||||||||||
June 27, 2021 | ||||||||||||||||||||||||||||||||||||||
Less than 12 Months | Greater than 12 Months | Total | ||||||||||||||||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | |||||||||||||||||||||||||||||||||
Municipal bonds | $ | $ | $ | $ | $ | $ | ||||||||||||||||||||||||||||||||
Corporate bonds | ( | ( | ||||||||||||||||||||||||||||||||||||
U.S. agency securities | ||||||||||||||||||||||||||||||||||||||
U.S. treasury securities | ( | ( | ||||||||||||||||||||||||||||||||||||
Certificates of deposit | ||||||||||||||||||||||||||||||||||||||
Total | $ | ($ | $ | $ | $ | ($ | ||||||||||||||||||||||||||||||||
Number of securities with an unrealized loss |
(in millions of U.S. Dollars) | Within One Year | After One, Within Five Years | After Five, Within Ten Years | After Ten Years | Total | |||||||||||||||||||||||||||
Municipal bonds | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||
Corporate bonds | ||||||||||||||||||||||||||||||||
U.S. agency securities | ||||||||||||||||||||||||||||||||
U.S. treasury securities | ||||||||||||||||||||||||||||||||
Non-U.S. government securities | ||||||||||||||||||||||||||||||||
Commercial paper | ||||||||||||||||||||||||||||||||
Variable rate demand notes | ||||||||||||||||||||||||||||||||
Total short-term investments | $ | $ | $ | $ | $ |
March 27, 2022 | June 27, 2021 | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||||||||||||||||
Cash equivalents: | |||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | $ | $ | $ | $ | $ | $ | $ | $ | |||||||||||||||||||||||||||||||||||||||
Municipal bonds | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency securities | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. treasury securities | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||||||||||||||||||||||||||
Variable rate demand notes | |||||||||||||||||||||||||||||||||||||||||||||||
Total cash equivalents | |||||||||||||||||||||||||||||||||||||||||||||||
Short-term investments: | |||||||||||||||||||||||||||||||||||||||||||||||
Municipal bonds | |||||||||||||||||||||||||||||||||||||||||||||||
Corporate bonds | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. agency securities | |||||||||||||||||||||||||||||||||||||||||||||||
U.S. treasury securities | |||||||||||||||||||||||||||||||||||||||||||||||
Certificates of deposit | |||||||||||||||||||||||||||||||||||||||||||||||
Commercial paper | |||||||||||||||||||||||||||||||||||||||||||||||
Variable rate demand notes | |||||||||||||||||||||||||||||||||||||||||||||||
Non-U.S. government securities | |||||||||||||||||||||||||||||||||||||||||||||||
Total short-term investments | |||||||||||||||||||||||||||||||||||||||||||||||
Total cash equivalents and short-term investments | $ | $ | $ | $ | $ | $ | $ | $ |
March 27, 2022 | June 27, 2021 | ||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||||||||||||
Customer relationships | $ | ($ | $ | $ | ($ | $ | |||||||||||||||||||||||||||||
Developed technology | ( | ( | |||||||||||||||||||||||||||||||||
Non-compete agreements | ( | ( | |||||||||||||||||||||||||||||||||
Acquisition related intangible assets | ( | ( | |||||||||||||||||||||||||||||||||
Patent and licensing rights | ( | ( | |||||||||||||||||||||||||||||||||
Total intangible assets | $ | ($ | $ | $ | ($ | $ |
(in millions of U.S. Dollars) Fiscal Year Ending | Acquisition Related Intangibles | Patents | Total | ||||||||||||||
June 26, 2022 (remainder of fiscal 2022) | $ | $ | $ | ||||||||||||||
June 25, 2023 | |||||||||||||||||
June 30, 2024 | |||||||||||||||||
June 29, 2025 | |||||||||||||||||
June 28, 2026 | |||||||||||||||||
Thereafter | |||||||||||||||||
Total future amortization expense | $ | $ | $ |
(in millions of U.S. Dollars) | March 27, 2022 | June 27, 2021 | |||||||||
Principal | $ | $ | |||||||||
Unamortized discount and issuance costs | ( | ( | |||||||||
Net carrying amount | $ | $ |
(in millions of U.S. Dollars) | March 27, 2022 | June 27, 2021 | |||||||||
Discount related to value of conversion option | $ | $ | |||||||||
Partial extinguishment of 2023 Notes | ( | ||||||||||
Debt issuance costs | ( | ( | |||||||||
Net carrying amount | $ | $ |
Three months ended | Nine months ended | ||||||||||||||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | |||||||||||||||||||
Interest expense, net of capitalized interest | $ | $ | $ | $ | |||||||||||||||||||
Amortization of discount and issuance costs, net of capitalized interest | |||||||||||||||||||||||
Total interest expense, net | $ | $ | $ | $ |
Three months ended | Nine months ended | ||||||||||||||||||||||
(in millions of U.S. Dollars, except share data) | March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | |||||||||||||||||||
Net loss from continuing operations | ($ | ($ | ($ | ($ | |||||||||||||||||||
Net loss from discontinued operations | ( | ( | |||||||||||||||||||||
Net income from discontinued operations attributable to noncontrolling interest | |||||||||||||||||||||||
Net loss from discontinued operations attributable to controlling interest | $ | ($ | $ | ($ | |||||||||||||||||||
Weighted average shares - basic and diluted (in thousands) | |||||||||||||||||||||||
Loss per share - basic and diluted: | |||||||||||||||||||||||
Continuing operations | ($ | ($ | ($ | ($ | |||||||||||||||||||
Discontinued operations attributable to controlling interest | $ | ($ | $ | ($ | |||||||||||||||||||
(shares in thousands) | Number of Shares | Weighted Average Exercise Price | |||||||||
Outstanding at June 27, 2021 | $ | ||||||||||
Granted | $ | ||||||||||
Exercised | ( | $ | |||||||||
Forfeited or expired | $ | ||||||||||
Outstanding at March 27, 2022 | $ |
(awards and units in thousands) | Number of RSUs | Weighted Average Grant-Date Fair Value | |||||||||
Nonvested at June 27, 2021 | $ | ||||||||||
Granted | $ | ||||||||||
Vested | ( | $ | |||||||||
Forfeited | ( | $ | |||||||||
Nonvested at March 27, 2022 | $ |
Three months ended | Nine months ended | ||||||||||||||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | |||||||||||||||||||
Cost of revenue, net | $ | $ | $ | $ | |||||||||||||||||||
Research and development | |||||||||||||||||||||||
Sales, general and administrative | |||||||||||||||||||||||
Total stock-based compensation expense | $ | $ | $ | $ | |||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
March 27, 2022 | March 28, 2021 | March 27, 2022 | March 28, 2021 | ||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars, except share data) | Amount | % of Revenue | Amount | % of Revenue | Amount | % of Revenue | Amount | % of Revenue | |||||||||||||||||||||||||||||||||||||||
Revenue, net | $188.0 | 100.0 | % | $137.3 | 100.0 | % | $517.7 | 100.0 | % | $379.8 | 100.0 | % | |||||||||||||||||||||||||||||||||||
Cost of revenue, net | 124.0 | 66.0 | 93.3 | 68.0 | 347.3 | 67.1 | 259.0 | 68.2 | |||||||||||||||||||||||||||||||||||||||
Gross profit | 64.0 | 34.0 | 44.0 | 32.0 | 170.4 | 32.9 | 120.8 | 31.8 | |||||||||||||||||||||||||||||||||||||||
Research and development | 48.1 | 25.6 | 46.0 | 33.5 | 148.2 | 28.6 | 132.7 | 34.9 | |||||||||||||||||||||||||||||||||||||||
Sales, general and administrative | 51.5 | 27.4 | 44.2 | 32.2 | 148.5 | 28.7 | 135.0 | 35.5 | |||||||||||||||||||||||||||||||||||||||
Amortization or impairment of acquisition-related intangibles | 3.4 | 1.8 | 3.7 | 2.7 | 10.6 | 2.0 | 10.9 | 2.9 | |||||||||||||||||||||||||||||||||||||||
(Gain) loss on disposal or impairment of other assets | (0.6) | (0.3) | 0.1 | 0.1 | (0.3) | (0.1) | 0.8 | 0.2 | |||||||||||||||||||||||||||||||||||||||
Other operating expense | 23.9 | 12.7 | 11.4 | 8.3 | 52.3 | 10.1 | 22.6 | 6.0 | |||||||||||||||||||||||||||||||||||||||
Operating loss | (62.3) | (33.1) | (61.4) | (44.7) | (188.9) | (36.5) | (181.2) | (47.7) | |||||||||||||||||||||||||||||||||||||||
Non-operating expense, net | 3.8 | 2.0 | 8.1 | 5.9 | 35.7 | 6.9 | 18.9 | 5.0 | |||||||||||||||||||||||||||||||||||||||
Loss before income taxes | (66.1) | (35.2) | (69.5) | (50.6) | (224.6) | (43.4) | (200.1) | (52.7) | |||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | 0.4 | 0.2 | (3.0) | (2.2) | 8.7 | 1.7 | (4.0) | (1.1) | |||||||||||||||||||||||||||||||||||||||
Net loss from continuing operations | ($66.5) | (35.4) | ($66.5) | (48.4) | ($233.3) | (45.1) | ($196.1) | (51.6) | |||||||||||||||||||||||||||||||||||||||
Net loss from discontinued operations | — | — | (41.6) | (30.3) | — | — | (178.8) | (47.1) | |||||||||||||||||||||||||||||||||||||||
Net loss | (66.5) | (35.4) | (108.1) | (78.7) | (233.3) | (45.1) | (374.9) | (98.7) | |||||||||||||||||||||||||||||||||||||||
Net income from discontinued operations attributable to noncontrolling interest | — | — | 0.8 | 0.6 | — | — | 1.4 | 0.4 | |||||||||||||||||||||||||||||||||||||||
Net loss attributable to controlling interest | ($66.5) | (35.4) | ($108.9) | (79.3) | ($233.3) | (45.1) | ($376.3) | (99.1) | |||||||||||||||||||||||||||||||||||||||
Basic and diluted loss per share | |||||||||||||||||||||||||||||||||||||||||||||||
Continuing operations | ($0.54) | ($0.59) | ($1.96) | ($1.75) | |||||||||||||||||||||||||||||||||||||||||||
Net loss attributable to controlling interest | ($0.54) | ($0.96) | ($1.96) | ($3.35) | |||||||||||||||||||||||||||||||||||||||||||
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | Change | March 27, 2022 | March 28, 2021 | Change | |||||||||||||||||||||||||||||||||||||||||
Revenue | $188.0 | $137.3 | $50.7 | 37 | % | $517.7 | $379.8 | $137.9 | 36 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | Change | March 27, 2022 | March 28, 2021 | Change | |||||||||||||||||||||||||||||||||||||||||
Gross profit | $64.0 | $44.0 | $20.0 | 45 | % | $170.4 | $120.8 | $49.6 | 41 | % | |||||||||||||||||||||||||||||||||||||
Gross margin | 34.0 | % | 32.0 | % | 32.9 | % | 31.8 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | Change | March 27, 2022 | March 28, 2021 | Change | |||||||||||||||||||||||||||||||||||||||||
Research and development | $48.1 | $46.0 | $2.1 | 5 | % | $148.2 | $132.7 | $15.5 | 12 | % | |||||||||||||||||||||||||||||||||||||
Percent of revenue | 26 | % | 34 | % | 29 | % | 35 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | Change | March 27, 2022 | March 28, 2021 | Change | |||||||||||||||||||||||||||||||||||||||||
Sales, general and administrative | $51.5 | $44.2 | $7.3 | 17 | % | $148.5 | $135.0 | $13.5 | 10 | % | |||||||||||||||||||||||||||||||||||||
Percent of revenue | 27 | % | 32 | % | 29 | % | 36 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | Change | March 27, 2022 | March 28, 2021 | Change | |||||||||||||||||||||||||||||||||||||||||
Customer relationships | $1.5 | $1.5 | $— | — | % | $4.6 | $4.6 | $— | — | % | |||||||||||||||||||||||||||||||||||||
Developed technology | 1.4 | 1.4 | — | — | % | 4.0 | 4.0 | — | — | % | |||||||||||||||||||||||||||||||||||||
Non-compete agreements | 0.5 | 0.8 | (0.3) | (38) | % | 2.0 | 2.3 | (0.3) | (13) | % | |||||||||||||||||||||||||||||||||||||
Total amortization | $3.4 | $3.7 | ($0.3) | (8) | % | $10.6 | $10.9 | ($0.3) | (3) | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | Change | March 27, 2022 | March 28, 2021 | Change | |||||||||||||||||||||||||||||||||||||||||
(Gain) loss on disposal or impairment of other assets | ($0.6) | $0.1 | ($0.7) | (700) | % | ($0.3) | $0.8 | ($1.1) | (138) | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | Change | March 27, 2022 | March 28, 2021 | Change | |||||||||||||||||||||||||||||||||||||||||
Factory optimization restructuring | $0.8 | $3.8 | ($3.0) | (79) | % | $5.5 | $6.7 | ($1.2) | (18) | % | |||||||||||||||||||||||||||||||||||||
Severance and other restructuring | 0.5 | 0.6 | (0.1) | (17) | % | 0.5 | 3.4 | (2.9) | (85) | % | |||||||||||||||||||||||||||||||||||||
Total restructuring costs | 1.3 | 4.4 | (3.1) | (70) | % | 6.0 | 10.1 | (4.1) | (41) | % | |||||||||||||||||||||||||||||||||||||
Project, transformation and transaction costs | 1.2 | 2.4 | (1.2) | (50) | % | 5.3 | 3.7 | 1.6 | 43 | % | |||||||||||||||||||||||||||||||||||||
Factory optimization start-up costs | 21.4 | 1.8 | 19.6 | 1,089 | % | 41.0 | 6.0 | 35.0 | 583 | % | |||||||||||||||||||||||||||||||||||||
Non-restructuring related executive severance | — | 2.8 | (2.8) | (100) | % | — | 2.8 | (2.8) | (100) | % | |||||||||||||||||||||||||||||||||||||
Other operating expense | $23.9 | $11.4 | $12.5 | 110 | % | $52.3 | $22.6 | $29.7 | 131 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | Change | March 27, 2022 | March 28, 2021 | Change | |||||||||||||||||||||||||||||||||||||||||
Gain on sale of investments, net | $— | ($0.1) | $0.1 | (100) | % | ($0.3) | ($0.3) | $— | — | % | |||||||||||||||||||||||||||||||||||||
Gain on equity investment, net | — | (0.9) | 0.9 | (100) | % | — | (7.9) | 7.9 | (100) | % | |||||||||||||||||||||||||||||||||||||
Loss on debt extinguishment related to conversion of 2023 Notes | — | — | — | — | % | 24.8 | — | 24.8 | 100 | % | |||||||||||||||||||||||||||||||||||||
Foreign currency gain, net | (0.3) | (0.1) | (0.2) | 200 | % | (0.6) | (2.5) | 1.9 | (76) | % | |||||||||||||||||||||||||||||||||||||
Interest income | (2.8) | (1.9) | (0.9) | 47 | % | (7.8) | (6.8) | (1.0) | 15 | % | |||||||||||||||||||||||||||||||||||||
Interest expense, net of capitalized interest | 5.1 | 11.2 | (6.1) | (54) | % | 17.1 | 36.2 | (19.1) | (53) | % | |||||||||||||||||||||||||||||||||||||
Loss on Wafer Supply Agreement | 0.5 | 0.1 | 0.4 | 400 | % | 1.4 | 0.1 | 1.3 | 1,300 | % | |||||||||||||||||||||||||||||||||||||
Loss on early payment of transaction-related note receivable | 1.2 | — | 1.2 | 100 | % | 1.2 | — | 1.2 | 100 | % | |||||||||||||||||||||||||||||||||||||
Other, net | 0.1 | (0.2) | 0.3 | (150) | % | (0.1) | 0.1 | (0.2) | (200) | % | |||||||||||||||||||||||||||||||||||||
Non-operating expense, net | $3.8 | $8.1 | ($4.3) | (53) | % | $35.7 | $18.9 | $16.8 | 89 | % |
Three months ended | Nine months ended | ||||||||||||||||||||||||||||||||||||||||||||||
(in millions of U.S. Dollars) | March 27, 2022 | March 28, 2021 | Change | March 27, 2022 | March 28, 2021 | Change | |||||||||||||||||||||||||||||||||||||||||
Income tax expense (benefit) | $0.4 | ($3.0) | $3.4 | (113) | % | $8.7 | ($4.0) | $12.7 | (318) | % | |||||||||||||||||||||||||||||||||||||
Effective tax rate | (1) | % | 4 | % | (4) | % | 2 | % |
Three months ended | |||||||||||||||||
March 27, 2022 | June 27, 2021 | Change | |||||||||||||||
Days of sales outstanding (a) | 49 | 52 | (3) | ||||||||||||||
Days of supply in inventory (b) | 159 | 147 | 12 | ||||||||||||||
Days in accounts payable (c) | (106) | (92) | (14) | ||||||||||||||
Cash conversion cycle | 102 | 107 | (5) |
Nine months ended | |||||||||||||||||||||||
March 27, 2022 | March 28, 2021 | Change | |||||||||||||||||||||
Cash used in operating activities | ($123.4) | ($75.5) | ($47.9) | (63) | % | ||||||||||||||||||
Cash used in investing activities | (378.0) | (339.5) | (38.5) | (11) | % | ||||||||||||||||||
Cash provided by financing activities | 608.3 | 497.6 | 110.7 | 22 | % | ||||||||||||||||||
Effect of foreign exchange changes | — | 0.2 | (0.2) | (100) | % | ||||||||||||||||||
Net change in cash and cash equivalents | $106.9 | $82.8 | $24.1 | 29 | % |
Incorporated by Reference | |||||||||||||||||
Exhibit No. | Description | Filed Herewith | Form | Exhibit | Filing Date | ||||||||||||
Indenture, dated as of February 3, 2022, between Wolfspeed, Inc. and U.S. Bank National Association | 8-K | 4.1 | 2/3/2022 | ||||||||||||||
Form of 0.25% Convertible Senior Note due 2028 (included in Exhibit 4.1) | 8-K | 4.2 | 2/3/2022 | ||||||||||||||
Seventh Amendment to the Credit Agreement, dated as of January 25, 2022, by and among Wolfspeed, Inc., Wells Fargo Bank, National Association, as administrative agent, and the other lenders party thereto | 8-K | 10.1 | 1/26/2022 | ||||||||||||||
Form of Confirmation of Call Option Transactions | 8-K | 10.1 | 2/3/2022 | ||||||||||||||
Certification by Chief Executive Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||||||||
Certification by Chief Financial Officer pursuant to Rule 13a-14(a) under the Securities Exchange Act of 1934, as adopted pursuant to Section 302 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||||||||
Certification by Chief Executive Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||||||||
Certification by Chief Financial Officer pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002 | X | ||||||||||||||||
101 | The following materials from Wolfspeed, Inc.’s Quarterly Report on Form 10-Q for the fiscal quarter ended March 27, 2022 formatted in Inline XBRL (eXtensible Business Reporting Language): (i) Consolidated Balance Sheets; (ii) Consolidated Statements of Operations; (iii) Consolidated Statements of Comprehensive Loss; (iv) Consolidated Statement of Shareholders' Equity; (v) Consolidated Statements of Cash Flows; and (vi) Notes to Consolidated Financial Statements | X | |||||||||||||||
104 | The cover page from Wolfspeed, Inc.’s Quarterly Report on Form 10-Q for the quarter ended March 27, 2022 formatted in Inline XBRL (included in Exhibit 101) | X |
WOLFSPEED, INC. | |||||
May 5, 2022 | |||||
/s/ Neill P. Reynolds | |||||
Neill P. Reynolds | |||||
Executive Vice President and Chief Financial Officer | |||||
(Authorized Officer and Principal Financial and Chief Accounting Officer) |
/s/ GREGG A. LOWE | |||||
Gregg A. Lowe | |||||
Chief Executive Officer and President |
/s/ NEILL P. REYNOLDS | |||||
Neill P. Reynolds | |||||
Executive Vice President and Chief Financial Officer |
/s/ GREGG A. LOWE | |||||
Gregg A. Lowe | |||||
Chief Executive Officer and President | |||||
May 5, 2022 |
/s/ NEILL P. REYNOLDS | |||||
Neill P. Reynolds | |||||
Executive Vice President and Chief Financial Officer | |||||
May 5, 2022 |
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares |
Mar. 27, 2022 |
Jun. 27, 2021 |
---|---|---|
Shareholders’ equity: | ||
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (shares) | 3,000,000 | 3,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Preferred stock outstanding (shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.00125 | $ 0.00125 |
Common stock authorized (shares) | 200,000,000 | 200,000,000 |
Common stock issued (shares) | 123,599,000 | 115,691,000 |
Common stock outstanding (shares) | 123,599,000 | 115,691,000 |
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2022 |
Mar. 28, 2021 |
Mar. 27, 2022 |
Mar. 28, 2021 |
|
Statement of Comprehensive Income [Abstract] | ||||
Net loss | $ (66.5) | $ (108.1) | $ (233.3) | $ (374.9) |
Other comprehensive loss: | ||||
Reclassification of currency translation gain to loss on sale of discontinued operations | 0.0 | (9.5) | 0.0 | (9.5) |
Net unrealized loss on available-for-sale securities | (16.3) | (2.5) | (20.7) | (3.0) |
Comprehensive loss | (82.8) | (120.1) | (254.0) | (387.4) |
Net income from discontinued operations attributable to noncontrolling interest | 0.0 | 0.8 | 0.0 | 1.4 |
Comprehensive loss attributable to controlling interest | $ (82.8) | $ (120.9) | $ (254.0) | $ (388.8) |
Basis of Presentation and New Accounting Standards |
9 Months Ended |
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Mar. 27, 2022 | |
Accounting Policies [Abstract] | |
Basis of Presentation and New Accounting Standards | Basis of Presentation and New Accounting Standards Overview Wolfspeed, Inc. (the Company), formerly known as Cree, Inc., is an innovator of wide bandgap semiconductors, focused on Silicon Carbide and gallium nitride (GaN) materials and devices for power and radio-frequency (RF) applications. The Company’s product families include Silicon Carbide and GaN materials, power-switching devices and RF devices targeted for various applications such as electric vehicles, fast charging, 5G, renewable energy and storage, and aerospace and defense. Previously, the Company designed, manufactured and sold specialty lighting-class light emitting diode (LED) products targeted for use in indoor and outdoor lighting, electronic signs and signals and video displays. As discussed more fully below in Note 2, “Discontinued Operations,” on March 1, 2021, the Company completed the sale of certain assets and subsidiaries comprising its former LED Products segment (the LED Business Divestiture) to SMART Global Holdings, Inc. (SGH) and its wholly owned newly-created acquisition subsidiary CreeLED, Inc. (CreeLED and collectively with SGH, SMART). Unless otherwise noted, discussion within these notes to the consolidated financial statements relates to the Company's continuing operations. The Company’s materials products and power devices are used in electric vehicles, motor drives, power supplies, solar and transportation applications. The Company’s materials products and RF devices are used in military communications, radar, satellite and telecommunication applications. On October 4, 2021, the Company changed its corporate name from Cree, Inc. to Wolfspeed, Inc. In addition, the Company transferred the listing of its common stock to the New York Stock Exchange (NYSE) from The Nasdaq Global Select Market (Nasdaq). The Company ceased trading as a Nasdaq-listed company at the end of the day on October 1, 2021 and commenced trading as a NYSE-listed company at market open on October 4, 2021 under the new ticker symbol ‘WOLF’. The majority of the Company's products are manufactured at its production facilities located in North Carolina, California and Arkansas. The Company also uses contract manufacturers for certain products and aspects of product fabrication, assembly and packaging. Additionally, the Company recently opened its Silicon Carbide device fabrication facility in New York. The Company operates research and development facilities in North Carolina, California, Arkansas, Arizona and New York. Wolfspeed, Inc. is a North Carolina corporation established in 1987, and its headquarters are in Durham, North Carolina. Basis of Presentation The consolidated financial statements presented herein have been prepared by the Company and have not been audited. In the opinion of management, all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations, comprehensive loss, shareholders' equity and cash flows at March 27, 2022, and for all periods presented, have been made. All material intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 27, 2021 has been derived from the audited financial statements as of that date. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 27, 2021 (fiscal 2021) (the 2021 Form 10-K). The results of operations for the three and nine months ended March 27, 2022 are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 26, 2022 (fiscal 2022). Additionally, the impact of the COVID-19 pandemic to the results of operations remains uncertain. Certain accounting matters that generally require consideration of forecasted financial information were assessed regarding impacts from the COVID-19 pandemic as of March 27, 2022 and through the date of this Quarterly Report using reasonably available information as of those dates. The accounting matters assessed included, but were not limited to, allowance for doubtful accounts, the carrying value of goodwill and other long-lived tangible and intangible assets, the potential impact to earnings of unrealized losses on investments, valuation allowances for tax assets and the ability to estimate an annual effective tax rate. While the assessments resulted in no material impacts to the consolidated financial statements as of and for the quarter ended March 27, 2022, the Company believes the full impact of the COVID-19 pandemic remains uncertain and will continue to assess if ongoing developments related to the COVID-19 pandemic may cause future material impacts to its consolidated financial statements. Change in Estimate The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities. Actual amounts could differ materially from those estimates. As a result of the LED Business Divestiture and the Company's continued investment in 200mm technology, the Company evaluated the useful lives applied to certain machinery and equipment assets by considering industry standards and reviewing the assets' historical and estimated future use. In the first quarter of fiscal 2022, the Company increased the expected useful lives of these assets by to five years to more closely reflect the estimated economic lives of those assets. This change in estimate was applied prospectively effective for the first quarter of fiscal 2022 and resulted in a decrease in depreciation expense of $8.3 million and $25.2 million for the three and nine months ended March 27, 2022, respectively. Approximately $10.4 million of the decrease in depreciation expense for the nine months ended March 27, 2022 resulted in a net reduction of inventory as of March 27, 2022 and will impact cost of revenue, net in future periods as the inventory is relieved. The remaining $14.8 million of the decrease in depreciation expense resulted in the following for the three and nine months ended March 27, 2022: (1) an improvement in gross profit of $7.3 million and $12.2 million, respectively; (2) an improvement in both loss before income taxes and net loss of $8.2 million and $14.8 million, respectively; and (3) an improvement in basic and diluted loss per share of $0.07 and $0.12 per share, respectively. Recently Adopted Accounting Pronouncements None. Accounting Pronouncements Pending Adoption Convertible Debt Instruments In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40); Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This standard simplifies the accounting for convertible instruments by eliminating the cash conversion and the beneficial conversion accounting models. Upon adoption of this standard, convertible debt, unless issued with a substantial premium or an embedded conversion feature that is not clearly and closely related to the host contract, will no longer be allocated between debt and equity components. This modification will reduce the issue discount and result in less non-cash interest expense in financial statements. This update also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity. The update requires an entity to use the if-converted method for all convertible instruments in the diluted earnings per share calculation. An entity may use either a modified or full retrospective approach for adoption. The Company will adopt this standard on June 27, 2022, as required, and is currently evaluating the impact on its consolidated financial statements. Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance. This standard will require entities to provide annual disclosures regarding government assistance. More specifically, the amendments in the standard improve financial reporting by requiring disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions; (2) the accounting for those transactions; and (3) the effect of those transactions on an entity's financial statements. An entity can apply the amendments prospectively or retrospectively. The Company will adopt this standard on June 27, 2022, as required.
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Discontinued Operations |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Discontinued Operations | Discontinued Operations On March 1, 2021, the Company completed the LED Business Divestiture pursuant to the terms of the Asset Purchase Agreement (the LED Purchase Agreement), dated October 18, 2020, as amended. Pursuant to the LED Purchase Agreement, (i) the Company completed the sale to SMART of (a) certain equipment, inventory, intellectual property rights, contracts, and real estate comprising the Company’s former LED Products segment, (b) all of the issued and outstanding equity interests of Cree Huizhou Solid State Lighting Company Limited (Cree Huizhou), a limited liability company organized under the laws of the People’s Republic of China and an indirect wholly owned subsidiary of the Company, and (c) the Company’s ownership interest in Cree Venture LED Company Limited., the Company’s joint venture with San’an Optoelectronics Co., Ltd. (collectively, the LED Business); and (ii) SMART assumed certain liabilities related to the LED Business. The Company retained certain assets used in and pre-closing liabilities associated with the former LED Products segment. The purchase price for the LED Business consisted of (i) a payment of $50 million in cash, subject to customary adjustments, (ii) an unsecured promissory note issued to the Company by SGH in the amount of $125 million (the Purchase Price Note), (iii) the potential to receive an earn-out payment between $2.5 million and $125 million based on the revenue and gross profit performance of the LED Business in the first four full fiscal quarters following the closing (the Earnout Period), also payable in the form of a unsecured promissory note of SGH (the Earnout Note), and (iv) the assumption of certain liabilities. The Purchase Price Note had a maturity date of August 15, 2023, and as explained further below, was prepaid by SGH in full pursuant to its terms, along with outstanding accrued and unpaid interest as of the payment date, in the third quarter of fiscal 2022. The Earnout Note will mature on March 27, 2025 and will accrue interest at a rate of three-month LIBOR plus 3.0% with interest paid every three months. One bullet payment of principal and all accrued and unpaid interest will be payable on the maturity date of the Earnout Note. In fiscal 2021, the Company recognized a loss on sale of the LED Business of $29.1 million. The cost of selling the LED Business was $27.4 million, which was recognized throughout fiscal 2020 and 2021. In connection with the closing of the LED Business Divestiture, the Company and CreeLED also entered into certain ancillary and related agreements, including (i) an Intellectual Property Assignment and License Agreement, which assigned to CreeLED certain intellectual property owned by the Company and its affiliates and licensed to CreeLED certain additional intellectual property owned by the Company, (ii) a Transition Services Agreement (LED TSA), (iii) a Wafer Supply and Fabrication Services Agreement (the Wafer Supply Agreement), pursuant to which the Company will supply CreeLED with certain Silicon Carbide materials and fabrication services for up to four years, and (iv) a Real Estate License Agreement (LED RELA), which will allow CreeLED to use certain premises owned by the Company to conduct the LED Business for a period of up to 24 months after closing. In the third quarter of fiscal 2022, the Company received an early payment for the Purchase Price Note. The principal amount of $125.0 million was paid in full, along with outstanding accrued interest as of the payment date (the Early Payment). In conjunction with the Early Payment, the Company transferred naming rights and trademarks related to Cree, Inc. and the CREE brand to SMART (the Trademark Transfer), resulting in a write-off of trademarks of $1.1 million and recorded within (gain) loss on disposal or impairment of other assets in the consolidated statements of operations. Because the Early Payment did not include additional consideration in exchange for the Trademark Transfer, the Company allocated consideration from the principal amount to the value of the trademarks transferred to SMART. The Company allocated $1.8 million of the Early Payment to the value of trademarks transferred to SMART, resulting in a gain recorded in (gain) loss on disposal or impairment of other assets in the consolidated statements of operations. The remaining unallocated portion of the Early Payment of $123.2 million was then applied to the note receivable balance of $124.4 million at the time of payment, resulting in a loss of $1.2 million recorded in non-operating expense, net on the consolidated statements of operations. The net impact to the consolidated statements of operations from the early payment for the Purchase Price Note was a loss of $0.5 million. The following table presents the financial results of the LED Business as loss from discontinued operations, net of income taxes in the Company's consolidated statements of operations:
As of September 27, 2020, the Company determined it would more likely than not sell all or a portion of the assets comprising its former LED Products segment below carrying value. As a result, the Company recorded an impairment to goodwill of $105.7 million. As of December 27, 2020, the Company recorded an additional impairment to goodwill of $6.9 million and an impairment to assets held for sale associated with the LED Business Divestiture of $19.5 million. For the three and nine months ended March 27, 2022, the Company recognized $0.9 million and $2.7 million in administrative fees related to the LED RELA, respectively, of which $0.3 million is included in accounts receivable, net in the consolidated balance sheets as of March 27, 2022. Fees related to the LED RELA were recorded as lease income, see Note 4, "Leases." For the three and nine months ended March 27, 2022, the Company recognized $2.1 million and $7.4 million in administrative fees related to the LED TSA, respectively, of which $0.6 million is included in accounts receivable, net in the consolidated balance sheets as of March 27, 2022. Fees related to the LED TSA were recorded as a reduction in expense within the line item in the consolidated statements of operations in which costs were incurred. At the inception of the Wafer Supply Agreement, the Company recorded a supply agreement liability of $31.0 million, of which $10.2 million was outstanding as of March 27, 2022. The Wafer Supply Agreement liability is recognized in other current liabilities on the consolidated balance sheets. For the three and nine months ended March 27, 2022, the Company recognized a net loss of $0.5 million and $1.4 million, respectively, in non-operating expense, net related to the Wafer Supply Agreement. A receivable of $2.4 million was included in other assets in the consolidated balance sheets as of March 27, 2022.
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Revenue Recognition |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue Recognition | Revenue Recognition The Company follows a five-step approach for recognizing revenue, consisting of the following: (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. Contract liabilities primarily include various rights of return and customer deposits, as well as a reserve on the Company's "ship and debit" program. Contract liabilities were $41.9 million as of March 27, 2022 and $45.2 million as of June 27, 2021. The decrease was primarily due to decreased customer deposits offset by increased reserves on the Company's "ship and debit" program. Contract liabilities are recorded within accrued contract liabilities and other long-term liabilities on the consolidated balance sheets. For the three and nine months ended March 27, 2022, the Company recognized an immaterial amount of deferred revenue that was included in contract liabilities as of June 27, 2021. The Company conducts business in several geographic areas. Revenue is attributed to a particular geographic region based on the shipping address for the products. Disaggregated revenue from external customers by geographic area is as follows:
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Leases |
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Leases | Leases The Company primarily leases manufacturing and office spaces. The Company also has a number of bulk gas leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. The Company's finance lease obligations include manufacturing equipment, manufacturing space in Malaysia, and a 49-year ground lease on a Silicon Carbide device fabrication facility in New York. Balance Sheet Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars):
(1) Within on the consolidated balance sheets. (2) Within on the consolidated balance sheets. (3) Within on the consolidated balance sheets. (4) Within on the consolidated balance sheets. Statement of Operations Operating lease expense was $1.8 million and $6.6 million for the three and nine months ended March 27, 2022, respectively, and $1.3 million and $4.1 million for the three and nine months ended March 28, 2021, respectively. Short-term lease expense was $0.3 million and $0.7 million for the three and nine months ended March 27, 2022, respectively. Short-term lease expense was immaterial for the three and nine months ended March 28, 2021. Finance lease amortization was $0.2 million and $0.9 million and interest expense was less than $0.1 million and $0.2 million for the three and nine months ended March 27, 2022, respectively. Finance lease amortization was $0.2 million and $0.6 million and interest expense was less than $0.1 million and $0.2 million for the three and nine months ended March 28, 2021, respectively. Cash Flows Cash flow information consisted of the following (1):
(1) See Note 5, "Financial Statement Details," for non-cash activities related to leases. Lease Liability Maturities Maturities of operating and finance lease liabilities as of March 27, 2022 were as follows (in millions of U.S. Dollars):
Supplemental Disclosures
(1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 53 months. (2) Weighted average discount rate of finance leases without the 49-year ground lease is 3.29%. Lease Income As mentioned in Note 2, "Discontinued Operations", on March 1, 2021 and in connection with the sale of its LED Business, the Company entered into the LED RELA pursuant to which the Company leases to CreeLED approximately 58,000 square feet of the Company’s property and certain facilities in Durham, North Carolina for a total of $3.6 million per year. The lease term is 24 months and expires on February 28, 2023. Subject to certain provisions in the LED RELA, CreeLED may terminate its rights or a portion of its rights under the agreement at any time with sixty days written notice. A notice of thirty days is permitted under certain circumstances as defined in the agreement. The agreement does not contain any renewal provisions. The Company recognized lease income of $0.9 million and $2.7 million for the three and nine months ended March 27, 2022, respectively. The Company recognized lease income of $0.3 million for the three and nine months ended March 28, 2021. The Company did not recognize any variable lease income for the three and nine months ended March 27, 2022 and March 28, 2021. Future minimum rental income relating to the LED RELA is as follows (in millions of U.S. Dollars):
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Leases | Leases The Company primarily leases manufacturing and office spaces. The Company also has a number of bulk gas leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. The Company's finance lease obligations include manufacturing equipment, manufacturing space in Malaysia, and a 49-year ground lease on a Silicon Carbide device fabrication facility in New York. Balance Sheet Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars):
(1) Within on the consolidated balance sheets. (2) Within on the consolidated balance sheets. (3) Within on the consolidated balance sheets. (4) Within on the consolidated balance sheets. Statement of Operations Operating lease expense was $1.8 million and $6.6 million for the three and nine months ended March 27, 2022, respectively, and $1.3 million and $4.1 million for the three and nine months ended March 28, 2021, respectively. Short-term lease expense was $0.3 million and $0.7 million for the three and nine months ended March 27, 2022, respectively. Short-term lease expense was immaterial for the three and nine months ended March 28, 2021. Finance lease amortization was $0.2 million and $0.9 million and interest expense was less than $0.1 million and $0.2 million for the three and nine months ended March 27, 2022, respectively. Finance lease amortization was $0.2 million and $0.6 million and interest expense was less than $0.1 million and $0.2 million for the three and nine months ended March 28, 2021, respectively. Cash Flows Cash flow information consisted of the following (1):
(1) See Note 5, "Financial Statement Details," for non-cash activities related to leases. Lease Liability Maturities Maturities of operating and finance lease liabilities as of March 27, 2022 were as follows (in millions of U.S. Dollars):
Supplemental Disclosures
(1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 53 months. (2) Weighted average discount rate of finance leases without the 49-year ground lease is 3.29%. Lease Income As mentioned in Note 2, "Discontinued Operations", on March 1, 2021 and in connection with the sale of its LED Business, the Company entered into the LED RELA pursuant to which the Company leases to CreeLED approximately 58,000 square feet of the Company’s property and certain facilities in Durham, North Carolina for a total of $3.6 million per year. The lease term is 24 months and expires on February 28, 2023. Subject to certain provisions in the LED RELA, CreeLED may terminate its rights or a portion of its rights under the agreement at any time with sixty days written notice. A notice of thirty days is permitted under certain circumstances as defined in the agreement. The agreement does not contain any renewal provisions. The Company recognized lease income of $0.9 million and $2.7 million for the three and nine months ended March 27, 2022, respectively. The Company recognized lease income of $0.3 million for the three and nine months ended March 28, 2021. The Company did not recognize any variable lease income for the three and nine months ended March 27, 2022 and March 28, 2021. Future minimum rental income relating to the LED RELA is as follows (in millions of U.S. Dollars):
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Leases | Leases The Company primarily leases manufacturing and office spaces. The Company also has a number of bulk gas leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. The Company's finance lease obligations include manufacturing equipment, manufacturing space in Malaysia, and a 49-year ground lease on a Silicon Carbide device fabrication facility in New York. Balance Sheet Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars):
(1) Within on the consolidated balance sheets. (2) Within on the consolidated balance sheets. (3) Within on the consolidated balance sheets. (4) Within on the consolidated balance sheets. Statement of Operations Operating lease expense was $1.8 million and $6.6 million for the three and nine months ended March 27, 2022, respectively, and $1.3 million and $4.1 million for the three and nine months ended March 28, 2021, respectively. Short-term lease expense was $0.3 million and $0.7 million for the three and nine months ended March 27, 2022, respectively. Short-term lease expense was immaterial for the three and nine months ended March 28, 2021. Finance lease amortization was $0.2 million and $0.9 million and interest expense was less than $0.1 million and $0.2 million for the three and nine months ended March 27, 2022, respectively. Finance lease amortization was $0.2 million and $0.6 million and interest expense was less than $0.1 million and $0.2 million for the three and nine months ended March 28, 2021, respectively. Cash Flows Cash flow information consisted of the following (1):
(1) See Note 5, "Financial Statement Details," for non-cash activities related to leases. Lease Liability Maturities Maturities of operating and finance lease liabilities as of March 27, 2022 were as follows (in millions of U.S. Dollars):
Supplemental Disclosures
(1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 53 months. (2) Weighted average discount rate of finance leases without the 49-year ground lease is 3.29%. Lease Income As mentioned in Note 2, "Discontinued Operations", on March 1, 2021 and in connection with the sale of its LED Business, the Company entered into the LED RELA pursuant to which the Company leases to CreeLED approximately 58,000 square feet of the Company’s property and certain facilities in Durham, North Carolina for a total of $3.6 million per year. The lease term is 24 months and expires on February 28, 2023. Subject to certain provisions in the LED RELA, CreeLED may terminate its rights or a portion of its rights under the agreement at any time with sixty days written notice. A notice of thirty days is permitted under certain circumstances as defined in the agreement. The agreement does not contain any renewal provisions. The Company recognized lease income of $0.9 million and $2.7 million for the three and nine months ended March 27, 2022, respectively. The Company recognized lease income of $0.3 million for the three and nine months ended March 28, 2021. The Company did not recognize any variable lease income for the three and nine months ended March 27, 2022 and March 28, 2021. Future minimum rental income relating to the LED RELA is as follows (in millions of U.S. Dollars):
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Financial Statement Details |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Financial Statement Details | Financial Statement Details Accounts Receivable, net Accounts receivable, net consisted of the following:
Changes in the Company’s allowance for bad debts were as follows:
Inventories Inventories consisted of the following:
Other Current Assets Other current assets consisted of the following:
Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following:
Other Operating Expense Other operating expense consisted of the following:
Accumulated Other Comprehensive (Loss) Income, net of taxes Accumulated other comprehensive (loss) income, net of taxes, consisted of $18.0 million of net unrealized losses on available-for-sale securities and $2.7 million of net unrealized gains on available-for-sale securities as of March 27, 2022 and June 27, 2021, respectively. Amounts for both periods include a $2.4 million loss related to tax on unrealized loss on available-for-sale securities. Reclassifications Out of Accumulated Other Comprehensive (Loss) Income Reclassifications out of accumulated other comprehensive (loss) income were a less than $0.1 million gain and a $0.3 million gain for the three and nine months ended March 27, 2022, respectively, and a $0.1 million gain and a $0.3 million gain for each of the three and nine months ended March 28, 2021, respectively. Amounts were reclassified to non-operating expense, net on the consolidated statements of operations. Additionally, for the three and nine months ended March 28, 2021, $9.5 million of currency translation gain was reclassified to loss on sale of discontinued operations within net loss on discontinued operations on the consolidated statements of operations. Non-Operating Expense, net The following table summarizes the components of non-operating expense, net:
(1) As discussed further in Note 9, "Long-term Debt," in the second quarter of fiscal 2022, all outstanding 0.875% convertible senior notes due September 1, 2023 (the 2023 Notes) were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in shares, with fractional shares paid in cash. (2) As discussed further in Note 2, "Discontinued Operations," in the third quarter of fiscal 2022, the Company recognized a loss of $1.2 million related to the early payment for the Purchase Price Note. Statements of Cash Flows - non-cash activities
(1) In the first quarter of fiscal 2021, the Company executed the available bargain purchase option for certain finance leases relating to property and equipment, net, in order to purchase the assets. (2) As discussed further in Note 9, "Long-term Debt," in the second quarter of fiscal 2022, all outstanding 2023 Notes were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in shares, with fractional shares paid in cash. Accrued property and equipment as of March 27, 2022 and March 28, 2021 was $88.3 million and $165.6 million, respectively.
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Investments |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments | Investments Short-term investments consist of municipal bonds, corporate bonds, U.S. agency securities, U.S. treasury securities, non-U.S. government securities, certificates of deposit, commercial paper and variable rate demand notes. All short-term investments are classified as available-for-sale. Short-term investments as of March 27, 2022 and June 27, 2021 consisted of the following (in millions of U.S. Dollars):
The Company does not include accrued interest in estimated fair values of short-term investments and does not record an allowance for credit losses on receivables related to accrued interest. Accrued interest receivable was $4.4 million and $5.5 million as of March 27, 2022 and June 27, 2021, respectively, and is recorded in other current assets on the consolidated balance sheets. When necessary, write-offs of noncollectable interest income are recorded as a reversal to interest income. There were no write-offs of noncollectable interest income during the three and nine months ended March 27, 2022 and March 28, 2021. The following tables present the gross unrealized losses and estimated fair value of the Company’s short-term investments, aggregated by investment type and the length of time that individual securities have been in a continuous unrealized loss position (in millions of U.S. Dollars):
Additionally, the Company held cash equivalent securities in unrealized loss positions as of March 27, 2022 and June 27, 2021. As of March 27, 2022, the Company held six cash equivalent securities in unrealized loss positions with an aggregate fair value of $53.9 million and an aggregate unrealized loss of less than $0.1 million. As of June 27, 2021, the Company held six cash equivalent securities in unrealized loss positions with an aggregate fair value of $21.4 million and an aggregate unrealized loss of less than $0.1 million. All cash equivalents in unrealized loss positions as of March 27, 2022 and June 27, 2021 have been in unrealized loss positions for less than 12 months. The Company utilizes specific identification in computing realized gains and losses on the sale of investments. Realized gains of less than $0.1 million and $0.3 million for the three and nine months ended March 27, 2022, respectively, and $0.1 million and $0.3 million for the three and nine months ended March 28, 2021, respectively, are included in non-operating expense, net in the consolidated statements of operations. Unrealized gains and losses are included as a separate component of equity, net of tax, unless the Company determines there is an expected credit loss. The Company evaluates its investments for expected credit losses. The Company believes it is able to and intends to hold each of the investments held with an unrealized loss as of March 27, 2022 until the investments fully recover in market value. No allowance for credit losses was recorded as of March 27, 2022. The contractual maturities of short-term investments as of March 27, 2022 were as follows:
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Fair Value of Financial Instruments |
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Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments Under U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches, including quoted market prices and discounted cash flows. U.S. GAAP also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are obtained from independent sources and can be validated by a third party, whereas unobservable inputs reflect assumptions regarding what a third party would use in pricing an asset or liability. The fair value hierarchy is categorized into three levels based on the reliability of inputs as follows: •Level 1 - Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Because valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. •Level 2 - Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. •Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The financial assets for which the Company performs recurring fair value remeasurements are cash equivalents and short-term investments. As of March 27, 2022 and June 27, 2021, financial assets utilizing Level 1 inputs included money market funds and U.S. treasury securities. Financial assets utilizing Level 2 inputs included municipal bonds, corporate bonds, certificates of deposit, commercial paper, U.S. agency securities, variable rate demand notes and non-U.S. government securities. Level 2 assets are valued based on quoted prices in active markets for instruments that are similar or using a third-party pricing service’s consensus price, which is a weighted average price based on multiple sources. These sources determine prices utilizing market income models which factor in, where applicable, transactions of similar assets in active markets, transactions of identical assets in infrequent markets, interest rates, bond or credit default swap spreads and volatility. The Company did not have any financial assets requiring the use of Level 3 inputs as of March 27, 2022 and June 27, 2021. The following table sets forth financial instruments carried at fair value within the U.S. GAAP hierarchy:
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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 There were no changes to goodwill during the nine months ended March 27, 2022. Intangible Assets, net The following table presents the components of intangible assets, net:
Total amortization of acquisition-related intangibles assets was $3.4 million and $10.6 million for the three and nine months ended March 27, 2022, respectively, and $3.7 million and $10.9 million for the three and nine months ended March 28, 2021, respectively. Total amortization of patents and licensing rights was $1.3 million and $4.1 million for the three and nine months ended March 27, 2022, respectively, and $2.0 million and $4.6 million for the three and nine months ended March 28, 2021, respectively. Total future amortization expense of intangible assets is estimated to be as follows:
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Long-term Debt |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Long-term Debt | Long-term Debt Revolving Line of Credit As of March 27, 2022, the Company had a $125.0 million secured revolving line of credit (the Credit Agreement) under which the Company can borrow, repay and reborrow loans from time to time prior to its scheduled maturity date of January 9, 2026. The Credit Agreement requires the Company to maintain a ratio of certain cash equivalents and marketable securities to outstanding loans and letter of credit obligations greater than 1.25:1, with no other financial covenants. The Company classifies balances outstanding under the Credit Agreement as long-term debt in the consolidated balance sheets. As of March 27, 2022, the Company had no outstanding borrowings under the Credit Agreement, $125.0 million in available commitments under the Credit Agreement and $125.0 million available for borrowing. For the three and nine months ended March 27, 2022, the average interest rate was 0.00% and 0.05%, respectively. The average interest rate for the nine months ended March 27, 2022 relates to a -day draw of $20.0 million on the line of credit in the first quarter of fiscal 2022. As of March 27, 2022, the unused line fee on available borrowings is 25 basis points. On January 25, 2022, the Company entered into an amendment to the Credit Agreement that extended the maturity date by three years to January 9, 2026 and adopted secured overnight financing rate (SOFR) interest rates as the benchmark interest rate. 2023 Convertible Notes On August 24, 2018, the Company sold $500.0 million aggregate principal amount of 0.875% convertible senior notes due September 1, 2023 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the Securities Act), and an additional $75.0 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (collectively, the 2023 Notes). The total net proceeds from the 2023 Notes offering was approximately $562.1 million. As discussed further below, the Company repurchased approximately $150.2 million aggregate principal amount of the 2023 Notes using a portion of net proceeds from the sale of an additional convertible note offering (the 2026 Notes, as defined and explained below) in April 2020. On December 8, 2021 (the Redemption Notice Date), the Company issued a notice (the Redemption Notice) to holders of the 2023 Notes calling all outstanding 2023 Notes for redemption. The Redemption Notice designated December 23, 2021 as the redemption date (the Redemption Date). On the Redemption Date, the Redemption Price (as defined below) would have become due and payable on each of the 2023 Notes to be redeemed, and interest thereon would cease to accrue. However, any 2023 Notes called for redemption would not be redeemed if such note was converted before the Redemption Date. The Redemption Price for the 2023 Notes called for redemption was an amount in cash equal to the principal amount of such note plus accrued and unpaid interest on such note to, but excluding, the Redemption Date, which equated to a Redemption Price of $1,002.72222 per $1,000 principal amount of 2023 Notes (the Redemption Price). As of the Redemption Notice Date, the conversion rate of the 2023 Notes was 16.6745 shares of the Company's common stock per $1,000 principal amount of such notes. However, in accordance with the Indenture, dated as of August 24, 2018, between the Company and U.S. Bank National Association, as trustee, which governed the terms of the 2023 Notes, the conversion rate for 2023 Notes that were converted after the Redemption Notice Date was increased to 16.7769 shares of the Company's common stock per $1,000 principal amount of such notes. Before the Redemption Date, all outstanding 2023 Notes were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in approximately 7.1 million shares of the Company's common stock, with cash in lieu of any fractional shares. The fair value of shares issued upon conversion of all outstanding 2023 Notes was $788.0 million. The amount of cash paid for fractional shares was immaterial. 2026 Convertible Notes On April 21, 2020, the Company sold $500.0 million aggregate principal amount of 1.75% convertible senior notes due May 1, 2026 to qualified institutional buyers pursuant to Rule 144A under the Securities Act and an additional $75.0 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (the 2026 Notes). The total net proceeds from the 2026 Notes offering was approximately $561.4 million. The conversion rate will initially be 21.1346 shares of common stock per one thousand dollars in principal amount of 2026 Notes (equivalent to an initial conversion price of approximately $47.32 per share of common stock). The conversion rate will be subject to adjustment for some events, but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, or following the Company's issuance of a notice of redemption, the Company will increase the conversion rate for a holder who elects to convert its 2026 Notes in connection with such a corporate event, or who elects to convert any 2026 Notes called for redemption during the related redemption period in certain circumstances. The Company may not redeem the 2026 Notes prior to May 1, 2023. The Company may redeem for cash all or any portion of the 2026 Notes, at its option, on a redemption date occurring on or after May 1, 2023 and on or before the 40th scheduled trading day immediately before the maturity date, if the last reported sales price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides a notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. The redemption price will be 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes certain fundamental changes related to the Company's common stock, holders may require the Company to repurchase for cash all or any portions of their 2026 Notes at a fundamental repurchase price equal to 100% of the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. Holders may convert their 2026 Notes at their option at any time prior to the close of business on the business day immediately preceding November 3, 2025 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending June 30, 2020 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the business day period after any consecutive trading day period in which the trading price per $1.0 thousand principal amount of 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of its common stock and the conversion rate on each such trading day; (3) if the Company calls such 2026 Notes for redemption, at any time prior to the close of business on the second business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after November 3, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2026 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company's election. The Company used approximately $144.3 million of the net proceeds from the sale of the 2026 Notes in April 2020 to repurchase approximately $150.2 million aggregate principal amount of the 2023 Notes, including approximately $0.2 million of accrued interest on such notes, in privately negotiated transactions. 2028 Convertible Notes On February 3, 2022, the Company sold $650.0 million aggregate principal amount of 0.25% convertible senior notes due February 15, 2028 to qualified institutional buyers pursuant to Rule 144A under the Securities Act and an additional $100.0 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (the 2028 Notes). The total net proceeds from the 2028 Notes offering was approximately $732.3 million. The Company used approximately $108.2 million of the net proceeds from the 2028 Notes to fund the cost of entering into capped call transactions, as described below. The conversion rate will initially be 7.8602 shares of common stock per one thousand dollars in principal amount of 2028 Notes (equivalent to an initial conversion price of approximately $127.22 per share of common stock). The conversion rate will be subject to adjustment for some events, but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, or following the Company's issuance of a notice of redemption, the Company will increase the conversion rate for a holder who elects to convert its 2028 Notes in connection with such a corporate event, or who elects to convert any 2028 Notes called for redemption during the related redemption period in certain circumstances. The Company may not redeem the 2028 Notes prior to February 18, 2025. The Company may redeem for cash all or any portion of the 2028 Notes, at its option, on a redemption date occurring on or after February 18, 2025 and on or before the 40th scheduled trading day immediately before the maturity date, if the last reported sales price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides a notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. The redemption price will be 100% of the principal amount of the 2028 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes certain fundamental changes related to the Company's common stock, holders may require the Company to repurchase for cash all or any portions of their 2028 Notes at a fundamental repurchase price equal to 100% of the principal amount of the 2028 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. Holders may convert their 2028 Notes at their option at any time prior to the close of business on the business day immediately preceding August 16, 2027 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending March 31, 2022 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the business day period after any consecutive trading day period in which the trading price per $1.0 thousand principal amount of 2028 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of its common stock and the conversion rate on each such trading day; (3) if the Company calls such 2028 Notes for redemption, at any time prior to the close of business on the second business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after August 16, 2027 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2028 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company's election. Capped Call Transactions On January 31, 2022, in connection with the pricing of the 2028 Notes, the Company entered into privately negotiated capped call transactions with certain of the initial purchasers or affiliates thereof (the Capped Call Counterparties). In connection with the exercise by the initial purchasers of their option to purchase additional notes, the Company entered into additional privately negotiated capped call transactions (such transactions, collectively, the Capped Call Transactions) with each of the Capped Call Counterparties. The Capped Call Transactions initially cover, subject to customary anti-dilution adjustments, the aggregate number of shares of the Company’s common stock that initially underlie the 2028 Notes. The Capped Call Transactions are expected generally to reduce the potential dilutive effect on the common stock upon any conversion of 2028 Notes and/or offset any potential cash payments the Company is required to make in excess of the principal amount of converted 2028 Notes, as the case may be, with such reduction and/or offset subject to a cap which initially is $212.04 per share, representing a premium of 125% over the last reported sale price per share of our common stock on January 31, 2022, subject to certain adjustments under the terms of the Capped Call Transactions. The Capped Call Transactions are separate transactions entered into by the Company with each of the Capped Call Counterparties, are not part of the terms of the 2028 Notes, and do not affect any holder’s rights under the 2028 Notes. Holders of the 2028 Notes do not have any rights with respect to the Capped Call Transactions. Accounting for 2023 Notes, 2026 Notes and 2028 Notes (collectively, the Notes) In accounting for the issuance of the 2023 Notes, 2026 Notes and 2028 Notes, the Company separated the Notes into liability and equity components. The carrying amount of the equity component representing the conversion option was $110.6 million, $145.4 million and $187.6 million for the 2023, 2026 and 2028 Notes, respectively. The amounts were determined by deducting the fair value of the liability component from the par value of each of the Notes. Due to the partial extinguishment of the 2023 Notes in connection with the issuance of the 2026 Notes, the equity component of the 2023 Notes was reduced by $27.7 million during the fourth quarter of fiscal 2020. As a result of the full conversion of all outstanding 2023 Notes, the Company remeasured the outstanding liability for the 2023 Notes using a market rate for debt without a conversion option (the Market Rate) as of the Redemption Notice Date. The Company performed a present value calculation using the Market Rate and determined the fair value of the debt as of the Redemption Notice Date was $416.1 million, $24.7 million higher than the carrying value of the 2023 Notes as of the Redemption Notice Date. As a result, the Company recorded a loss on extinguishment of $24.8 million, which included a $0.1 million loss on extinguishment expense related to third party fees. Additionally, the equity component of the 2023 Notes was reduced to zero. The equity components of the 2026 and 2028 Notes are not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (the debt discount), along with related issuance fees, are amortized to interest expense over the term of the 2026 and 2028 Notes at an effective annual interest rate of 7.45% and 5.59%, respectively. The 2026 and 2028 Notes are equal in right of payment to any of the Company’s unsecured indebtedness; senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated in right of payment to the 2026 and 2028 Notes; effectively subordinated in right of payment of any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally subordinated to all indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries. The net carrying amount of the liability component of the Notes is as follows:
The net carrying amount of the equity component of the Notes is as follows:
The interest expense, net recognized related to the Notes is as follows:
The Company capitalizes interest related to the Notes in connection with the building of a new Silicon Carbide device fabrication facility in New York. For the three and nine months ended March 27, 2022, the Company capitalized $2.4 million and $7.3 million of interest expense, respectively, and $5.9 million and $17.1 million of amortization of discount and issuance costs, respectively. For the three and nine months ended March 28, 2021, the Company capitalized $1.0 million and $1.8 million of interest expense, respectively, and $2.1 million and $3.8 million of amortization of discount and issuance costs, respectively. The last reported sale price of the Company's common stock was greater than or equal to 130% of the applicable conversion price for the 2026 Notes for at least 20 trading days in the 30 consecutive trading days ended on March 31, 2022. As a result, the 2026 Notes are convertible at the option of the holders through June 30, 2022. As of March 27, 2022, the if-converted value of the 2026 Notes exceeded their respective principal amounts by $794.6 million. The estimated fair value of the Notes is $2.3 billion as of March 27, 2022, as determined by a Level 2 valuation.
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Loss Per Share |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Loss Per Share | Loss Per Share The details of the computation of basic and diluted loss per share are as follows:
Diluted net loss per share is the same as basic net loss per share for the periods presented due to potentially dilutive items being anti-dilutive given the Company's net loss from continuing operations. For the three and nine months ended March 27, 2022, 2.3 million and 2.4 million, respectively, of weighted average shares were excluded from the calculation of diluted loss per share because their effect would be anti-dilutive. For the three and nine months ended March 28, 2021, 3.1 million and 3.6 million, respectively, of weighted average shares were excluded from the calculation of diluted loss per share because their effect would be anti-dilutive. In addition, future earnings per share of the Company are also subject to dilution from conversion of the 2026 Notes and 2028 Notes under certain conditions as described in Note 9, “Long-term Debt.”
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Stock-Based Compensation |
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Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation Overview of Employee Stock-Based Compensation Plans The Company currently has one equity-based compensation plan, the 2013 Long-Term Incentive Compensation Plan (2013 LTIP), from which stock-based compensation awards can be granted to employees and directors. The 2013 LTIP provides for awards in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and other awards. The Company’s stock-based awards can be either service-based or performance-based. Performance-based conditions may be tied to future financial and/or operating performance of the Company, external based market metrics or internal performance metrics. The Company also has an Employee Stock Purchase Plan (ESPP) that provides employees with the opportunity to purchase common stock at a discount. The ESPP limits employee contributions to 15% of each employee’s compensation (as defined in the plan) and allows employees to purchase shares at a 15% discount to the fair market value of common stock on the purchase date two times per year. The ESPP provides for a twelve-month participation period, divided into two equal six-month purchase periods, and also provides for a look-back feature. At the end of each six-month period in April and October, participants purchase the Company’s common stock through the ESPP at a 15% discount to the fair market value of the common stock on the first day of the twelve-month participation period or the purchase date, whichever is lower. The plan also provides for an automatic reset feature to start participants on a new twelve-month participation period if the fair market value of common stock declines during the first six-month purchase period. Stock Option Awards A summary of stock option awards outstanding as of March 27, 2022 and changes during the nine months then ended is as follows:
Restricted Stock Units A summary of nonvested restricted stock unit awards (RSUs) outstanding as of March 27, 2022 and changes during the nine months then ended is as follows:
Stock-Based Compensation Valuation and Expense The Company accounts for its employee stock-based compensation plans using the fair value method. The fair value method requires the Company to estimate the grant-date fair value of its stock-based awards and amortize this fair value to compensation expense over the requisite service period or vesting term. The Company uses the Black-Scholes option-pricing model to estimate the fair value of the Company’s ESPP awards. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the expected stock price volatility over the term of the awards, the risk-free interest rate and expected dividends. Due to the inherent limitations of option-valuation models, future events that are unpredictable and the estimation process utilized in determining the valuation of the stock-based awards, the ultimate value realized by award holders may vary significantly from the amounts expensed in the Company’s financial statements. For service-based RSUs and performance-based RSUs with internal metrics, the grant-date fair value is based upon the market price of the Company’s common stock on the date of the grant. For performance-based RSUs, the Company reassesses the probability of the achievement of the performance condition at each reporting period and adjusts the compensation expense for subsequent changes in the estimate or actual outcome. This fair value is then amortized to compensation expense over the requisite service period or vesting term. For performance-based awards with market conditions, the Company estimates the grant date fair value using the Monte Carlo valuation model and expenses the awards over the vesting period regardless of whether the market condition is ultimately satisfied. Stock-based compensation expense is recognized net of estimated forfeitures such that expense is recognized only for those stock-based awards that are expected to vest. A forfeiture rate is estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. The Black-Scholes and Monte Carlo option pricing models require the input of highly subjective assumptions. These assumptions represent management's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if other assumptions had been used, recorded share-based compensation expense could have been materially different from that depicted below. Total stock-based compensation expense was classified in the consolidated statements of operations as follows:
Stock-based compensation expense may differ from the impact of stock-based compensation to additional paid in capital due to manufacturing related stock-based compensation capitalized within inventory.
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Income Taxes |
9 Months Ended |
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Mar. 27, 2022 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes In general, the variation between the Company's effective income tax rate and the U.S. statutory rate of 21% is primarily due to: (i) changes in the Company’s valuation allowances against deferred tax assets in the U.S. and Luxembourg, (ii) projected income for the full year derived from international locations with differing tax rates than the U.S. and (iii) projected tax credits generated. The Company assesses all available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets by jurisdiction. As of March 27, 2022, the Company has concluded that it is necessary to recognize a full valuation allowance against its U.S. deferred tax assets. As a result of the LED Business Divestiture and the liquidation of the Company’s common stock ownership interest in ENNOSTAR, Inc., the Company began reviewing its legal entity structure, including its Luxembourg holding company, during the fourth quarter of fiscal 2021. In the second quarter of fiscal 2022, the Company concluded its due diligence and commenced a plan to restructure its Luxembourg holding company, resulting in the recognition of $7.3 million of income tax expense. The $7.3 million of income tax expense represents the net effect of $129.1 million of income tax expense generated from taxable income as a result of the restructuring plan offset by a full release of the valuation allowance against the Company’s Luxembourg net operating loss deferred tax assets, which totaled $121.8 million. As of March 27, 2022, the Company has no valuation allowance against Luxembourg deferred tax assets. U.S. GAAP requires a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is cumulatively more than 50% likely to be realized upon ultimate settlement. As of June 27, 2021, the Company's liability for unrecognized tax benefits was $7.4 million. During the nine months ended March 27, 2022, the Company did not record any material movement in its unrecognized tax benefits. As a result, the total liability for unrecognized tax benefits as of March 27, 2022 was $7.4 million. If any portion of this $7.4 million is recognized, the Company will then include that portion in the computation of its effective tax rate. Although the ultimate timing of the resolution and/or closure of audits is highly uncertain, the Company believes it is reasonably possible that $0.7 million of gross unrecognized tax benefits will change in the next 12 months as a result of statute requirements or settlement with tax authorities. The Company files U.S. federal, U.S. state and foreign tax returns. For U.S. federal purposes, the Company is generally no longer subject to tax examinations for fiscal years prior to 2017. For U.S. state tax returns, the Company is generally no longer subject to tax examinations for fiscal years prior to 2017. For foreign purposes, the Company is generally no longer subject to examination for tax periods prior to 2011. Certain carryforward tax attributes generated in prior years remain subject to examination, adjustment and recapture.
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Commitments and Contingencies |
9 Months Ended |
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Mar. 27, 2022 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies Litigation The Company is currently a party to various legal proceedings. While management presently believes that the ultimate outcome of such proceedings, individually and in the aggregate, will not materially harm the Company’s financial position, cash flows, or overall trends in results of operations, legal proceedings are subject to inherent uncertainties, and unfavorable rulings could occur. An unfavorable ruling could include monetary damages or, in matters for which injunctive relief or other conduct remedies may be sought, an injunction prohibiting the Company from selling one or more products at all or in particular ways. Were unfavorable final outcomes to occur, there exists the possibility of a material adverse impact on the Company’s business, results of operations, financial position and overall trends. The outcomes in these matters are not reasonably estimable. Grant Disbursement Agreement (GDA) with the State of New York The Company currently has a GDA with the State of New York Urban Development Corporation (doing business as Empire State Development). The GDA provides a potential total grant amount of $500.0 million to partially and fully reimburse the Company for certain property, plant and equipment costs related to the Company's construction of its Silicon Carbide device fabrication facility in Marcy, New York. The GDA was signed in the fourth quarter of fiscal 2020 and requires the Company to satisfy a number of objectives for the Company to receive reimbursements through the span of the 13-year agreement. These objectives include maintaining a certain level of local employment, investing a certain amount in locally administered research and development activities and the payment of an annual commitment fee for the first six years. Additionally, the Company has agreed, under a separate agreement (the SUNY Agreement), to sponsor the creation of two endowed faculty chairs and fund a scholarship program at SUNY Polytechnic Institute. The annual cost of satisfying the objectives of the GDA and the SUNY Agreement, excluding the direct and indirect costs associated with employment, varies from $2.5 million to $5.2 million per year through fiscal 2031. As of March 27, 2022, the Company has reduced property and equipment, net by $247.9 million as a result of GDA reimbursements, of which $94.2 million has been received in cash and an additional $153.7 million is recorded as a receivable in other current assets in the consolidated balance sheets. The Company started receiving cash reimbursements in the fourth quarter of fiscal 2021.
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Restructuring |
9 Months Ended |
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Mar. 27, 2022 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The Company has approved various operational plans that include restructuring costs. All restructuring costs are recorded in other operating expense on the consolidated statement of operations. Factory Optimization Restructuring In May 2019, the Company started a significant, multi-year factory optimization plan anchored by a state-of-the-art, automated 200mm capable Silicon Carbide and GaN fabrication facility and a large materials factory at its U.S. campus headquarters in Durham, North Carolina. As part of the plan, the Company will incur restructuring charges associated with the movement of equipment as well as disposals on certain long-lived assets. In September 2019, the Company announced its intent to build a new Silicon Carbide device fabrication facility in Marcy, New York to complement the factory expansion underway at its U.S. campus headquarters in Durham, North Carolina. The Company is currently evaluating the impact of the facility on future restructuring charges. The Company expects approximately $90.0 million in restructuring charges related to the factory optimization plan to be incurred through 2024. For the three and nine months ended March 27, 2022, the Company expensed $0.8 million and $4.2 million, respectively, of restructuring charges associated with the movement of equipment related to the factory optimization plan, of which $1.7 million is accrued for as of March 27, 2022. Additionally, the Company expensed $0.0 million and $1.3 million of restructuring charges associated with disposals of certain long-lived assets for the three and nine months ended March 27, 2022, respectively. For the three and nine months ended March 28, 2021, the Company expensed and paid $1.2 million and $4.3 million, respectively, of restructuring charges associated with the movement of equipment related to the factory optimization plan. Additionally, the Company expensed and paid $2.6 million and $3.4 million of restructuring charges associated with disposals of certain long-lived assets for the three and nine months ended March 28, 2021, respectively. Corporate Restructuring In September 2020, the Company realigned certain resources to further focus on areas vital to its growth while driving efficiencies. As a result, the Company recorded $0.0 million and $2.8 million in severance-related costs during the three and nine months ended March 28, 2021, respectively. The plan has concluded and all expenses were paid as of June 27, 2021. In February 2021, the Company realigned the structure of its Asia sales presence. As a result, the Company recorded $0.6 million in severance-related costs during the three and nine months ended March 28, 2021. The plan has concluded and all expenses were paid as of June 27, 2021. In January 2022, the Company commenced a plan to open a global IT shared services hub in Belfast, Northern Ireland in partnership with the Northern Ireland government. As a result, the Company recorded $0.5 million in severance-related costs for the three and nine months ended March 27, 2022, all of which is accrued for as of March 27, 2022.
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Basis of Presentation and New Accounting Standards (Policies) |
9 Months Ended |
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Mar. 27, 2022 | |
Accounting Policies [Abstract] | |
Overview | Overview Wolfspeed, Inc. (the Company), formerly known as Cree, Inc., is an innovator of wide bandgap semiconductors, focused on Silicon Carbide and gallium nitride (GaN) materials and devices for power and radio-frequency (RF) applications. The Company’s product families include Silicon Carbide and GaN materials, power-switching devices and RF devices targeted for various applications such as electric vehicles, fast charging, 5G, renewable energy and storage, and aerospace and defense. Previously, the Company designed, manufactured and sold specialty lighting-class light emitting diode (LED) products targeted for use in indoor and outdoor lighting, electronic signs and signals and video displays. As discussed more fully below in Note 2, “Discontinued Operations,” on March 1, 2021, the Company completed the sale of certain assets and subsidiaries comprising its former LED Products segment (the LED Business Divestiture) to SMART Global Holdings, Inc. (SGH) and its wholly owned newly-created acquisition subsidiary CreeLED, Inc. (CreeLED and collectively with SGH, SMART). Unless otherwise noted, discussion within these notes to the consolidated financial statements relates to the Company's continuing operations. The Company’s materials products and power devices are used in electric vehicles, motor drives, power supplies, solar and transportation applications. The Company’s materials products and RF devices are used in military communications, radar, satellite and telecommunication applications. On October 4, 2021, the Company changed its corporate name from Cree, Inc. to Wolfspeed, Inc. In addition, the Company transferred the listing of its common stock to the New York Stock Exchange (NYSE) from The Nasdaq Global Select Market (Nasdaq). The Company ceased trading as a Nasdaq-listed company at the end of the day on October 1, 2021 and commenced trading as a NYSE-listed company at market open on October 4, 2021 under the new ticker symbol ‘WOLF’. The majority of the Company's products are manufactured at its production facilities located in North Carolina, California and Arkansas. The Company also uses contract manufacturers for certain products and aspects of product fabrication, assembly and packaging. Additionally, the Company recently opened its Silicon Carbide device fabrication facility in New York. The Company operates research and development facilities in North Carolina, California, Arkansas, Arizona and New York. Wolfspeed, Inc. is a North Carolina corporation established in 1987, and its headquarters are in Durham, North Carolina.
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Basis of Presentation | Basis of Presentation The consolidated financial statements presented herein have been prepared by the Company and have not been audited. In the opinion of management, all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations, comprehensive loss, shareholders' equity and cash flows at March 27, 2022, and for all periods presented, have been made. All material intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 27, 2021 has been derived from the audited financial statements as of that date. These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 27, 2021 (fiscal 2021) (the 2021 Form 10-K). The results of operations for the three and nine months ended March 27, 2022 are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 26, 2022 (fiscal 2022). Additionally, the impact of the COVID-19 pandemic to the results of operations remains uncertain. Certain accounting matters that generally require consideration of forecasted financial information were assessed regarding impacts from the COVID-19 pandemic as of March 27, 2022 and through the date of this Quarterly Report using reasonably available information as of those dates. The accounting matters assessed included, but were not limited to, allowance for doubtful accounts, the carrying value of goodwill and other long-lived tangible and intangible assets, the potential impact to earnings of unrealized losses on investments, valuation allowances for tax assets and the ability to estimate an annual effective tax rate. While the assessments resulted in no material impacts to the consolidated financial statements as of and for the quarter ended March 27, 2022, the Company believes the full impact of the COVID-19 pandemic remains uncertain and will continue to assess if ongoing developments related to the COVID-19 pandemic may cause future material impacts to its consolidated financial statements.
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Change in Estimate | Change in Estimate The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities. Actual amounts could differ materially from those estimates.
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Recently Adopted Accounting Pronouncements and Accounting Pronouncements Pending Adoption | Recently Adopted Accounting Pronouncements None. Accounting Pronouncements Pending Adoption Convertible Debt Instruments In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40); Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity. This standard simplifies the accounting for convertible instruments by eliminating the cash conversion and the beneficial conversion accounting models. Upon adoption of this standard, convertible debt, unless issued with a substantial premium or an embedded conversion feature that is not clearly and closely related to the host contract, will no longer be allocated between debt and equity components. This modification will reduce the issue discount and result in less non-cash interest expense in financial statements. This update also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity. The update requires an entity to use the if-converted method for all convertible instruments in the diluted earnings per share calculation. An entity may use either a modified or full retrospective approach for adoption. The Company will adopt this standard on June 27, 2022, as required, and is currently evaluating the impact on its consolidated financial statements. Government Assistance In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance. This standard will require entities to provide annual disclosures regarding government assistance. More specifically, the amendments in the standard improve financial reporting by requiring disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions; (2) the accounting for those transactions; and (3) the effect of those transactions on an entity's financial statements. An entity can apply the amendments prospectively or retrospectively. The Company will adopt this standard on June 27, 2022, as required.
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Fair Value of Financial Instruments | Under U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches, including quoted market prices and discounted cash flows. U.S. GAAP also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are obtained from independent sources and can be validated by a third party, whereas unobservable inputs reflect assumptions regarding what a third party would use in pricing an asset or liability. The fair value hierarchy is categorized into three levels based on the reliability of inputs as follows: •Level 1 - Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Because valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. •Level 2 - Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. •Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. The financial assets for which the Company performs recurring fair value remeasurements are cash equivalents and short-term investments. As of March 27, 2022 and June 27, 2021, financial assets utilizing Level 1 inputs included money market funds and U.S. treasury securities. Financial assets utilizing Level 2 inputs included municipal bonds, corporate bonds, certificates of deposit, commercial paper, U.S. agency securities, variable rate demand notes and non-U.S. government securities. Level 2 assets are valued based on quoted prices in active markets for instruments that are similar or using a third-party pricing service’s consensus price, which is a weighted average price based on multiple sources. These sources determine prices utilizing market income models which factor in, where applicable, transactions of similar assets in active markets, transactions of identical assets in infrequent markets, interest rates, bond or credit default swap spreads and volatility.
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Discontinued Operations (Tables) |
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Discontinued Operations and Disposal Groups [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Discontinued Operations | The following table presents the financial results of the LED Business as loss from discontinued operations, net of income taxes in the Company's consolidated statements of operations:
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Revenue Recognition (Tables) |
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Revenue from Contract with Customer [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Disaggregated Revenue from External Customers by Geographic Area | Disaggregated revenue from external customers by geographic area is as follows:
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Leases (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Leases [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Lease Assets and Liabilities | Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars):
(1) Within on the consolidated balance sheets. (2) Within on the consolidated balance sheets. (3) Within on the consolidated balance sheets. (4) Within on the consolidated balance sheets.
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Schedule of Cash Flow Information | Cash flow information consisted of the following (1):
(1) See Note 5, "Financial Statement Details," for non-cash activities related to leases.
(1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 53 months. (2) Weighted average discount rate of finance leases without the 49-year ground lease is 3.29%.
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Schedule of Maturities of Operating Lease Liabilities | Maturities of operating and finance lease liabilities as of March 27, 2022 were as follows (in millions of U.S. Dollars):
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Schedule of Maturities of Finance Lease Liabilities | Maturities of operating and finance lease liabilities as of March 27, 2022 were as follows (in millions of U.S. Dollars):
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Schedule of Future Minimum Rental Income | Future minimum rental income relating to the LED RELA is as follows (in millions of U.S. Dollars):
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Financial Statement Details (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Accounts Receivable, Net | Accounts receivable, net consisted of the following:
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Schedule of Allowance for Bad Debts | Changes in the Company’s allowance for bad debts were as follows:
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Schedule of Inventories | Inventories consisted of the following:
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Schedule of Other Current Assets | Other current assets consisted of the following:
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Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following:
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Schedule of Other Operating Expense | Other operating expense consisted of the following:
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Schedule of Non-Operating Expense (Income), Net | The following table summarizes the components of non-operating expense, net:
(1) As discussed further in Note 9, "Long-term Debt," in the second quarter of fiscal 2022, all outstanding 0.875% convertible senior notes due September 1, 2023 (the 2023 Notes) were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in shares, with fractional shares paid in cash. (2) As discussed further in Note 2, "Discontinued Operations," in the third quarter of fiscal 2022, the Company recognized a loss of $1.2 million related to the early payment for the Purchase Price Note.
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Schedule of Noncash Operating Activities |
(1) In the first quarter of fiscal 2021, the Company executed the available bargain purchase option for certain finance leases relating to property and equipment, net, in order to purchase the assets. (2) As discussed further in Note 9, "Long-term Debt," in the second quarter of fiscal 2022, all outstanding 2023 Notes were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in shares, with fractional shares paid in cash.
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Investments (Tables) |
9 Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 27, 2022 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Short-term Investments by Type | Short-term investments as of March 27, 2022 and June 27, 2021 consisted of the following (in millions of U.S. Dollars):
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Schedule of Gross Unrealized Losses and Fair Value of Short-term Investments by Type and Length of Time | The following tables present the gross unrealized losses and estimated fair value of the Company’s short-term investments, aggregated by investment type and the length of time that individual securities have been in a continuous unrealized loss position (in millions of U.S. Dollars):
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Schedule of Contractual Maturities of Short-term Investments by Type | The contractual maturities of short-term investments as of March 27, 2022 were as follows:
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Fair Value of Financial Instruments (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 27, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Financial Instruments Carried at Fair Value | The following table sets forth financial instruments carried at fair value within the U.S. GAAP hierarchy:
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Goodwill and Intangible Assets (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 27, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Components of Intangible Assets | The following table presents the components of intangible assets, net:
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Schedule of Future Amortization Expense of Finite-lived Intangible Assets | Total future amortization expense of intangible assets is estimated to be as follows:
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Long-term Debt (Tables) |
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Debt Disclosure [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Liability and Equity Components of Long-term Debt | The net carrying amount of the liability component of the Notes is as follows:
The net carrying amount of the equity component of the Notes is as follows:
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Schedule of Interest Expense | The interest expense, net recognized related to the Notes is as follows:
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Loss Per Share (Tables) |
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Earnings Per Share [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Earnings Per Share, Basic and Diluted | The details of the computation of basic and diluted loss per share are as follows:
|
Stock-Based Compensation (Tables) |
9 Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Mar. 27, 2022 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Share-based Payment Arrangement [Abstract] | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Stock Option Awards Outstanding | A summary of stock option awards outstanding as of March 27, 2022 and changes during the nine months then ended is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Nonvested Restricted Stock Awards and Restricted Stock Unit Awards Outstanding | A summary of nonvested restricted stock unit awards (RSUs) outstanding as of March 27, 2022 and changes during the nine months then ended is as follows:
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Schedule of Total Stock-Based Compensation Expense | Total stock-based compensation expense was classified in the consolidated statements of operations as follows:
|
Revenue Recognition - Narrative (Details) - USD ($) $ in Millions |
Mar. 27, 2022 |
Jun. 27, 2021 |
---|---|---|
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities | $ 41.9 | $ 45.2 |
Leases - Narrative (Details) ft² in Thousands, $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2022
USD ($)
ft²
|
Mar. 28, 2021
USD ($)
|
Mar. 27, 2022
USD ($)
ft²
|
Mar. 28, 2021
USD ($)
|
|
Lessee, Lease, Description [Line Items] | ||||
Operating lease expense | $ 1.8 | $ 1.3 | $ 6.6 | $ 4.1 |
Short-term lease expense | 0.3 | 0.7 | ||
Finance lease amortization | $ 0.2 | 0.2 | 0.9 | 0.6 |
Interest expense on finance leases (less than) | 0.1 | $ 0.2 | 0.2 | |
Area of property in lease agreement (square feet) | ft² | 58 | 58 | ||
Lease income per year | $ 3.6 | $ 3.6 | ||
Operating lease, term of contract | 24 months | 24 months | ||
Lease income | $ 0.9 | $ 0.3 | $ 2.7 | $ 0.3 |
Maximum | ||||
Lessee, Lease, Description [Line Items] | ||||
Notice of termination (in days) | 60 days | |||
Minimum | ||||
Lessee, Lease, Description [Line Items] | ||||
Notice of termination (in days) | 30 days | |||
New York | ||||
Lessee, Lease, Description [Line Items] | ||||
Term of finance lease (in years) | 49 years | 49 years |
Leases - Cash Flow Information (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Mar. 27, 2022 |
Mar. 28, 2021 |
|
Cash used in operating activities: | ||
Cash paid for operating leases | $ 5.8 | $ 4.2 |
Cash paid for interest portion of financing leases | 0.2 | 0.2 |
Cash used in financing activities: | ||
Cash paid for principal portion of finance leases | $ 0.4 | $ 0.3 |
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions |
Mar. 27, 2022 |
Jun. 27, 2021 |
---|---|---|
Operating Leases | ||
June 26, 2022 (remainder of fiscal 2022) | $ 1.8 | |
June 25, 2023 | 4.1 | |
June 30, 2024 | 2.7 | |
June 29, 2025 | 1.7 | |
June 28, 2026 | 1.7 | |
Thereafter | 0.7 | |
Total lease payments | 12.7 | |
Imputed lease interest | (0.5) | |
Total lease liabilities | 12.2 | $ 12.0 |
Finance Leases | ||
June 26, 2022 (remainder of fiscal 2022) | 0.2 | |
June 25, 2023 | 0.7 | |
June 30, 2024 | 0.7 | |
June 29, 2025 | 0.7 | |
June 28, 2026 | 0.7 | |
Thereafter | 14.6 | |
Total lease payments | 17.6 | |
Imputed lease interest | (7.4) | |
Total lease liabilities | 10.2 | $ 15.2 |
Total | ||
June 26, 2022 (remainder of fiscal 2022) | 2.0 | |
June 25, 2023 | 4.8 | |
June 30, 2024 | 3.4 | |
June 29, 2025 | 2.4 | |
June 28, 2026 | 2.4 | |
Thereafter | 15.3 | |
Total lease payments | 30.3 | |
Imputed lease interest | (7.9) | |
Total lease liabilities | $ 22.4 |
Leases - Weighted Average Remaining Lease Terms and Discount Rates (Details) |
9 Months Ended |
---|---|
Mar. 27, 2022 | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term of operating leases (in months) | 39 months |
Weighted average remaining lease term of finance leases (in months) | 464 months |
Weighted average discount rate of operating leases (as a percent) | 2.45% |
Weighted average discount rate of finance leases (as a percent) | 2.68% |
Weighted average remaining lease term of finance leases excluding 49-year ground lease (in months) | 53 months |
Weighted average discount rate of finance leases excluding 49-year ground lease (as a percent) | 3.29% |
New York | |
Lessee, Lease, Description [Line Items] | |
Term of finance lease (in years) | 49 years |
Leases - Future Minimum Rental Income (Details) $ in Millions |
Mar. 27, 2022
USD ($)
|
---|---|
Leases [Abstract] | |
June 26, 2022 (remainder of fiscal 2022) | $ 0.9 |
June 25, 2023 | 2.4 |
Total future minimum rental income | $ 3.3 |
Financial Statement Details - Accounts Receivable, Net (Details) - USD ($) $ in Millions |
Mar. 27, 2022 |
Jun. 27, 2021 |
---|---|---|
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Gross receivables | $ 123.4 | $ 96.7 |
Allowance for bad debts | (1.0) | (0.8) |
Accounts receivable, net | 122.4 | 95.9 |
Royalties | ||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Gross receivables | 0.7 | 0.5 |
Billed trade receivables | ||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Gross receivables | 120.6 | 95.6 |
Unbilled contract receivables | ||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||
Gross receivables | $ 2.1 | $ 0.6 |
Financial Statement Details - Allowance for Bad Debts (Details) $ in Millions |
9 Months Ended |
---|---|
Mar. 27, 2022
USD ($)
| |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of period | $ 0.8 |
Balance at end of period | 1.0 |
SEC Schedule, 12-09, Allowance, Notes Receivable | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |
Balance at beginning of period | 0.8 |
Current period provision change | 0.2 |
Write-offs, net of recoveries | 0.0 |
Balance at end of period | $ 1.0 |
Financial Statement Details - Inventories (Details) - USD ($) $ in Millions |
Mar. 27, 2022 |
Jun. 27, 2021 |
---|---|---|
Inventory, Net [Abstract] | ||
Raw material | $ 52.7 | $ 43.3 |
Work-in-progress | 146.0 | 109.5 |
Finished goods | 20.7 | 13.8 |
Inventories | $ 219.4 | $ 166.6 |
Financial Statement Details - Other Current Assets (Details) - USD ($) $ in Millions |
Mar. 27, 2022 |
Jun. 27, 2021 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Reimbursement receivable on long-term incentive agreement | $ 153.7 | $ 4.6 |
Accrued interest receivable | 4.4 | 5.5 |
Receivable on Wafer Supply Agreement | 2.4 | 7.0 |
Inventory related to Wafer Supply Agreement | 3.3 | 3.9 |
Deferred product costs | 2.5 | 1.8 |
Other | 3.0 | 5.1 |
Other current assets | $ 169.3 | $ 27.9 |
Financial Statement Details - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions |
Mar. 27, 2022 |
Jun. 27, 2021 |
---|---|---|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable, trade | $ 54.1 | $ 44.2 |
Accrued salaries and wages | 79.9 | 69.5 |
Accrued property and equipment | 88.3 | 248.3 |
Accrued expenses | 21.0 | 17.4 |
Other | 5.0 | 1.7 |
Accounts payable and accrued expenses | $ 248.3 | $ 381.1 |
Financial Statement Details - Other Operating Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2022 |
Mar. 28, 2021 |
Mar. 27, 2022 |
Mar. 28, 2021 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||||
Factory optimization restructuring | $ 0.8 | $ 3.8 | $ 5.5 | $ 6.7 |
Severance and other restructuring | 0.5 | 0.6 | 0.5 | 3.4 |
Total restructuring costs | 1.3 | 4.4 | 6.0 | 10.1 |
Project, transformation and transaction costs | 1.2 | 2.4 | 5.3 | 3.7 |
Factory optimization start-up costs | 21.4 | 1.8 | 41.0 | 6.0 |
Non-restructuring related executive severance | 0.0 | 2.8 | 0.0 | 2.8 |
Other operating expense | $ 23.9 | $ 11.4 | $ 52.3 | $ 22.6 |
Financial Statement Details - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions |
9 Months Ended | ||
---|---|---|---|
Mar. 27, 2022 |
Mar. 28, 2021 |
Jun. 27, 2021 |
|
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Net unrealized gain on available-for-sale securities | $ (18.0) | $ 2.7 | |
Unrealized gain (loss) on available-for-sale securities | $ (2.4) | $ (2.4) |
Financial Statement Details - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2022 |
Mar. 28, 2021 |
Mar. 27, 2022 |
Mar. 28, 2021 |
|
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Non-operating expense, net | $ 3.8 | $ 8.1 | $ 35.7 | $ 18.9 |
Net loss from discontinued operations | 0.0 | (41.6) | 0.0 | (178.8) |
Accrued property and equipment | 88.3 | 165.6 | ||
Reclassification out of Accumulated Other Comprehensive Income | ||||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||||
Non-operating expense, net | $ 0.1 | $ (0.1) | $ (0.3) | (0.3) |
Net loss from discontinued operations | $ 9.5 |
Financial Statement Details - Non-cash Activities (Details) - USD ($) $ in Millions |
9 Months Ended | |
---|---|---|
Mar. 27, 2022 |
Mar. 28, 2021 |
|
Statements of Cash Flows - non-cash activities | ||
Lease asset and liability additions | $ 6.3 | $ 1.7 |
Lease asset and liability modifications, net | 3.3 | 0.3 |
Lease terminations | (0.2) | 0.0 |
Transfer of finance lease liability to accounts payable and accrued expenses | 0.0 | 4.2 |
Settlement of 2023 Notes in shares of common stock | 416.1 | 0.0 |
Decrease in property, plant and equipment from long-term incentive related receivables | $ 137.3 | $ 0.0 |
Investments - Narrative (Details) |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 27, 2022
USD ($)
security
|
Mar. 28, 2021
USD ($)
|
Mar. 27, 2022
USD ($)
security
|
Mar. 28, 2021
USD ($)
|
Jun. 27, 2021
USD ($)
security
|
|
Investments, Debt and Equity Securities [Abstract] | |||||
Accrued interest receivable | $ 4,400,000 | $ 4,400,000 | $ 5,500,000 | ||
Net Investment Income [Line Items] | |||||
Number of instruments in loss position | security | 344 | 344 | 128 | ||
Fair value of instruments in loss position | $ 653,900,000 | $ 653,900,000 | $ 206,500,000 | ||
Realized gain on sale of investments | 0 | $ 100,000 | 300,000 | $ 300,000 | |
Credit Loss Allowance | $ 0 | $ 0 | $ 0 | ||
Cash and Cash Equivalents | |||||
Net Investment Income [Line Items] | |||||
Number of instruments in loss position | security | 6 | 6 | 6 | ||
Fair value of instruments in loss position | $ 53,900,000 | $ 53,900,000 | $ 21,400,000 | ||
Unrealized loss | 100,000 | $ 100,000 | $ 100,000 | ||
Maximum | |||||
Net Investment Income [Line Items] | |||||
Realized gain on sale of investments | $ (100,000) |
Goodwill and Intangible Assets - Narrative (Details) - USD ($) |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2022 |
Mar. 28, 2021 |
Mar. 27, 2022 |
Mar. 28, 2021 |
|
Finite-Lived Intangible Assets [Line Items] | ||||
Changes in Goodwill | $ 0 | |||
Amortization of acquisition-related intangibles | 3,400,000 | $ 3,700,000 | $ 10,600,000 | $ 10,900,000 |
Patent and licensing rights | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Amortization of intangible assets | $ 1,300,000 | $ 2,000,000 | $ 4,100,000 | $ 4,600,000 |
Goodwill and Intangible Assets - Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions |
Mar. 27, 2022 |
Jun. 27, 2021 |
---|---|---|
Acquired Finite-Lived Intangible Assets [Line Items] | ||
June 26, 2022 (remainder of fiscal 2022) | $ 4.2 | |
June 25, 2023 | 15.4 | |
June 30,2024 | 14.1 | |
June 29, 2025 | 13.2 | |
June 28, 2026 | 11.4 | |
Thereafter | 70.0 | |
Total future amortization expense | 128.3 | $ 140.5 |
Acquisition Related Intangibles | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
June 26, 2022 (remainder of fiscal 2022) | 2.9 | |
June 25, 2023 | 11.0 | |
June 30,2024 | 10.4 | |
June 29, 2025 | 10.4 | |
June 28, 2026 | 9.3 | |
Thereafter | 59.0 | |
Total future amortization expense | 103.0 | 113.6 |
Patents | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
June 26, 2022 (remainder of fiscal 2022) | 1.3 | |
June 25, 2023 | 4.4 | |
June 30,2024 | 3.7 | |
June 29, 2025 | 2.8 | |
June 28, 2026 | 2.1 | |
Thereafter | 11.0 | |
Total future amortization expense | $ 25.3 | $ 26.9 |
Long-term Debt - Liability and Equity Component of Convertible Notes (Details) - Convertible Notes - USD ($) $ in Millions |
Mar. 27, 2022 |
Jun. 27, 2021 |
---|---|---|
Liability Component: | ||
Principal | $ 1,325.0 | $ 999.8 |
Unamortized discount and issuance costs | (316.6) | (175.9) |
Net carrying amount | 1,008.4 | 823.9 |
Equity Component: | ||
Discount related to value of conversion option | 341.1 | 262.3 |
Partial extinguishment of 2023 Notes | 0.0 | (27.7) |
Debt issuance costs | (8.1) | (6.3) |
Net carrying amount | $ 333.0 | $ 228.3 |
Long-term Debt - Interest Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2022 |
Mar. 28, 2021 |
Mar. 27, 2022 |
Mar. 28, 2021 |
|
Debt Instrument [Line Items] | ||||
Amortization of debt issuance costs and discount, net of non-cash capitalized interest | $ 12.9 | $ 26.1 | ||
Convertible Notes | ||||
Debt Instrument [Line Items] | ||||
Interest expense, net of capitalized interest | $ 0.2 | $ 2.5 | 2.1 | 8.5 |
Amortization of debt issuance costs and discount, net of non-cash capitalized interest | 3.9 | 8.0 | 12.9 | 26.1 |
Total interest expense, net | $ 4.1 | $ 10.5 | $ 15.0 | $ 34.6 |
Loss Per Share - Narrative (Details) - shares shares in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2022 |
Mar. 28, 2021 |
Mar. 27, 2022 |
Mar. 28, 2021 |
|
Earnings Per Share [Abstract] | ||||
Anti-dilutive potential common shares excluded from diluted earnings per share calculation (shares) | 2.3 | 3.1 | 2.4 | 3.6 |
Stock-Based Compensation - Narrative (Details) |
9 Months Ended |
---|---|
Mar. 27, 2022
stockPurchase
compensationPlan
| |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of equity-based compensation plans | compensationPlan | 1 |
Duration of purchase period for ESPP (in months) | 12 months |
Duration of single purchase period for ESPP (in months) | 6 months |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum contribution of employee's compensation (as a percent) | 15.00% |
Employee stock plan purchase price of fair value (as a percent) | 15.00% |
Number of times employees can purchase stock per year | stockPurchase | 2 |
Discount from market price, beginning of participation period or purchase date (as a percent) | 15.00% |
Stock-Based Compensation - Stock Option Awards Outstanding (Details) shares in Thousands |
9 Months Ended |
---|---|
Mar. 27, 2022
$ / shares
shares
| |
Number of Shares | |
Outstanding at beginning of period (shares) | shares | 142 |
Granted (shares) | shares | 0 |
Exercised (shares) | shares | (61) |
Forfeited or expired (shares) | shares | 0 |
Outstanding at end of period (shares) | shares | 81 |
Weighted Average Exercise Price | |
Outstanding at beginning of period (USD per share) | $ / shares | $ 27.37 |
Granted (USD per share) | $ / shares | 0 |
Exercised (USD per share) | $ / shares | 30.15 |
Forfeited or expired (USD per share) | $ / shares | 0 |
Outstanding at end of period (USD per share) | $ / shares | $ 25.27 |
Stock-Based Compensation - Nonvested Shares of Restricted Stock Awards and Restricted Stock Units Outstanding (Details) - Restricted Stock Awards and Restricted Stock Units shares in Thousands |
9 Months Ended |
---|---|
Mar. 27, 2022
$ / shares
shares
| |
Number of RSUs | |
Nonvested at beginning of period (shares) | shares | 2,168 |
Granted (shares) | shares | 697 |
Vested (shares) | shares | (836) |
Forfeited (shares) | shares | (69) |
Nonvested at end of period (shares) | shares | 1,960 |
Weighted Average Grant-Date Fair Value | |
Nonvested at beginning of period (USD per share) | $ / shares | $ 57.38 |
Granted (USD per share) | $ / shares | 96.95 |
Vested (USD per share) | $ / shares | 50.35 |
Forfeited (USD per share) | $ / shares | 74.64 |
Nonvested at end of period (USD per share) | $ / shares | $ 73.84 |
Stock-Based Compensation - Total Stock-Based Compensation Expense (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2022 |
Mar. 28, 2021 |
Mar. 27, 2022 |
Mar. 28, 2021 |
|
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 15.2 | $ 12.9 | $ 45.2 | $ 40.3 |
Cost of revenue, net | ||||
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 4.2 | 4.1 | 11.5 | 11.2 |
Research and development | ||||
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | 2.3 | 2.1 | 7.3 | 6.7 |
Sales, general and administrative | ||||
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | ||||
Total stock-based compensation expense | $ 8.7 | $ 6.7 | $ 26.4 | $ 22.4 |
Income Taxes - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | |||
---|---|---|---|---|---|
Mar. 27, 2022 |
Mar. 28, 2021 |
Mar. 27, 2022 |
Mar. 28, 2021 |
Jun. 27, 2021 |
|
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense (benefit) | $ 0.4 | $ (3.0) | $ 8.7 | $ (4.0) | |
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract] | |||||
Unrecognized tax benefits | 7.4 | 7.4 | $ 7.4 | ||
Estimated change in gross unrecognized tax benefits | 0.7 | 0.7 | |||
Foreign Tax Authority | Luxembourg Holding Company | |||||
Operating Loss Carryforwards [Line Items] | |||||
Income tax expense (benefit) | 7.3 | ||||
Income tax expense generated from taxable income | $ 129.1 | ||||
Valuation allowance increase (decrease) | $ (121.8) |
Commitments and Contingencies - Narrative (Details) |
3 Months Ended | 6 Months Ended | 9 Months Ended | ||
---|---|---|---|---|---|
Jun. 27, 2021
endowedFacultyChair
|
Dec. 26, 2021
USD ($)
|
Mar. 27, 2022
USD ($)
|
Dec. 26, 2021
USD ($)
|
Mar. 28, 2021
USD ($)
|
|
Loss Contingencies [Line Items] | |||||
GDA term | 13 years | ||||
Duration of annual commitment fee payment of GDA | 6 years | ||||
Number of endowed faculty chairs created | endowedFacultyChair | 2 | ||||
Reduction in property, plant, and equipment | $ 247,900,000 | ||||
Reimbursement of property and equipment purchases from long-term incentive agreement | 83,500,000 | $ 94,200,000 | $ 0 | ||
Reimbursement of property and equipment purchases from long-term incentive agreement, receivables | $ 153,700,000 | ||||
Minimum | |||||
Loss Contingencies [Line Items] | |||||
Annual cost of GDA | $ 2,500,000 | ||||
Maximum | |||||
Loss Contingencies [Line Items] | |||||
Potential total grant amount of GDA | 500,000,000 | $ 500,000,000 | |||
Annual cost of GDA | $ 5,200,000 |
Restructuring - Narrative (Details) - USD ($) $ in Millions |
3 Months Ended | 9 Months Ended | ||
---|---|---|---|---|
Mar. 27, 2022 |
Mar. 28, 2021 |
Mar. 27, 2022 |
Mar. 28, 2021 |
|
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs expensed | $ 1.3 | $ 4.4 | $ 6.0 | $ 10.1 |
Non-restructuring related executive severance | 0.0 | 2.8 | 0.0 | 2.8 |
Factory Optimization | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges expected to be incurred | 90.0 | 90.0 | ||
Restructuring costs expensed | 0.8 | 1.2 | 4.2 | 4.3 |
Restructuring costs accrued | 1.7 | 1.7 | ||
Factory Optimization | Facility Closing | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring costs expensed | 0.0 | 2.6 | 1.3 | 3.4 |
Corporate Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Non-restructuring related executive severance | $ 0.0 | $ 2.8 | ||
Corporate Restructuring, Global IT Services | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Non-restructuring related executive severance | $ 0.5 | $ 0.5 |
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