QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
Delaware | 94-2634797 | |||||||
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) |
4650 Cushing Parkway, | Fremont, | California | 94538 |
(Address of principal executive offices) | (Zip Code) |
Title of each class | Trading Symbol(s) | Name of each exchange on which registered | ||||||
Common Stock, Par Value $0.001 Per Share | LRCX | The Nasdaq Stock Market | ||||||
(Nasdaq Global Select Market) |
Large accelerated filer | ☒ | Accelerated filer | ☐ | ||||||||||||||||||||||||||
Non-accelerated filer | Smaller reporting company | ||||||||||||||||||||||||||||
Emerging growth company |
Page No. | |||||||||||
Item 1. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 1. | |||||||||||
Item 1A. | |||||||||||
Item 2. | |||||||||||
Item 3. | |||||||||||
Item 4. | |||||||||||
Item 5. | |||||||||||
Item 6. | |||||||||||
ITEM 1. Financial Statements |
Three Months Ended | Nine Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | September 27, 2020 | September 29, 2019 | |||||||||||||||||||||||||||||||||||||||
Revenue | $ | 2,503,625 | $ | 2,439,048 | $ | 7,252,872 | $ | 7,292,412 | Revenue | $ | 3,177,080 | $ | 2,165,746 | |||||||||||||||||||||||||||||||
Cost of goods sold | 1,336,618 | 1,364,711 | 3,924,511 | 4,014,844 | Cost of goods sold | 1,670,901 | 1,184,036 | |||||||||||||||||||||||||||||||||||||
Gross margin | 1,167,007 | 1,074,337 | 3,328,361 | 3,277,568 | Gross margin | 1,506,179 | 981,710 | |||||||||||||||||||||||||||||||||||||
Research and development | 307,914 | 318,514 | 913,602 | 895,742 | Research and development | 355,367 | 286,827 | |||||||||||||||||||||||||||||||||||||
Selling, general, and administrative | 164,979 | 190,306 | 496,679 | 534,179 | Selling, general, and administrative | 189,748 | 157,428 | |||||||||||||||||||||||||||||||||||||
Total operating expenses | 472,893 | 508,820 | 1,410,281 | 1,429,921 | Total operating expenses | 545,115 | 444,255 | |||||||||||||||||||||||||||||||||||||
Operating income | 694,114 | 565,517 | 1,918,080 | 1,847,647 | Operating income | 961,064 | 537,455 | |||||||||||||||||||||||||||||||||||||
Other (expense) income, net | (64,619 | ) | 20,532 | (91,271 | ) | (10,494 | ) | |||||||||||||||||||||||||||||||||||||
Other expense, net | Other expense, net | (38,792) | (12,728) | |||||||||||||||||||||||||||||||||||||||||
Income before income taxes | 629,495 | 586,049 | 1,826,809 | 1,837,153 | Income before income taxes | 922,272 | 524,727 | |||||||||||||||||||||||||||||||||||||
Income tax expense | (54,714 | ) | (38,659 | ) | (271,729 | ) | (187,548 | ) | Income tax expense | (98,821) | (58,938) | |||||||||||||||||||||||||||||||||
Net income | $ | 574,781 | $ | 547,390 | $ | 1,555,080 | $ | 1,649,605 | Net income | $ | 823,451 | $ | 465,789 | |||||||||||||||||||||||||||||||
Net income per share: | Net income per share: | |||||||||||||||||||||||||||||||||||||||||||
Basic | $ | 3.96 | $ | 3.62 | $ | 10.75 | $ | 10.72 | Basic | $ | 5.67 | $ | 3.22 | |||||||||||||||||||||||||||||||
Diluted | $ | 3.88 | $ | 3.47 | $ | 10.39 | $ | 10.20 | Diluted | $ | 5.59 | $ | 3.09 | |||||||||||||||||||||||||||||||
Number of shares used in per share calculations: | Number of shares used in per share calculations: | |||||||||||||||||||||||||||||||||||||||||||
Basic | 145,301 | 151,201 | 144,654 | 153,891 | Basic | 145,267 | 144,673 | |||||||||||||||||||||||||||||||||||||
Diluted | 148,165 | 157,849 | 149,648 | 161,683 | Diluted | 147,248 | 150,682 |
Three Months Ended | |||||||||||||||||||||||||||||
September 27, 2020 | September 29, 2019 | ||||||||||||||||||||||||||||
Net income | $ | 823,451 | $ | 465,789 | |||||||||||||||||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||||||||||||||
Foreign currency translation adjustment | 12,124 | (8,698) | |||||||||||||||||||||||||||
Cash flow hedges: | |||||||||||||||||||||||||||||
Net unrealized losses during the period | (350) | (691) | |||||||||||||||||||||||||||
Net losses reclassified into earnings | 767 | 1,350 | |||||||||||||||||||||||||||
417 | 659 | ||||||||||||||||||||||||||||
Available-for-sale investments: | |||||||||||||||||||||||||||||
Net unrealized losses during the period | (1,400) | (1,000) | |||||||||||||||||||||||||||
Net losses reclassified into earnings | 402 | 390 | |||||||||||||||||||||||||||
(998) | (610) | ||||||||||||||||||||||||||||
Defined benefit plans, net change in unrealized component | (4) | 119 | |||||||||||||||||||||||||||
Other comprehensive income (loss), net of tax | 11,539 | (8,530) | |||||||||||||||||||||||||||
Comprehensive income | $ | 834,990 | $ | 457,259 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||||||
Net income | $ | 574,781 | $ | 547,390 | $ | 1,555,080 | $ | 1,649,605 | |||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||
Foreign currency translation adjustment | (18,225 | ) | 6,684 | (19,412 | ) | (6,845 | ) | ||||||||
Cash flow hedges: | |||||||||||||||
Net unrealized (losses) gains during the period | (29,456 | ) | (7,950 | ) | (26,068 | ) | 4,038 | ||||||||
Net (gains) losses reclassified into earnings | (924 | ) | 2,086 | 1,810 | (2,492 | ) | |||||||||
(30,380 | ) | (5,864 | ) | (24,258 | ) | 1,546 | |||||||||
Available-for-sale investments: | |||||||||||||||
Net unrealized (losses) gains during the period | (4,129 | ) | 1,143 | (6,842 | ) | 1,441 | |||||||||
Net losses (gains) reclassified into earnings | 27 | (147 | ) | 1,010 | (201 | ) | |||||||||
(4,102 | ) | 996 | (5,832 | ) | 1,240 | ||||||||||
Defined benefit plans, net change in unrealized component | 278 | 216 | 856 | (1,152 | ) | ||||||||||
Other comprehensive (loss) income, net of tax | (52,429 | ) | 2,032 | (48,646 | ) | (5,211 | ) | ||||||||
Comprehensive income | $ | 522,352 | $ | 549,422 | $ | 1,506,434 | $ | 1,644,394 |
March 29, 2020 | June 30, 2019 | September 27, 2020 | June 28, 2020 | |||||||||||||||
(unaudited) | (1) | (unaudited) | (1) | |||||||||||||||
ASSETS | ASSETS | |||||||||||||||||
Cash and cash equivalents | $ | 3,961,586 | $ | 3,658,219 | Cash and cash equivalents | $ | 4,129,067 | $ | 4,915,172 | |||||||||
Investments | 1,431,550 | 1,772,984 | Investments | 2,528,841 | 1,795,080 | |||||||||||||
Accounts receivable, less allowance for doubtful accounts of $5,332 as of March 29, 2020, and $5,021 as of June 30, 2019 | 2,191,070 | 1,455,522 | ||||||||||||||||
Accounts receivable, less allowance of $5,245 as of September 27, 2020, and $5,465 as of June 28, 2020 | Accounts receivable, less allowance of $5,245 as of September 27, 2020, and $5,465 as of June 28, 2020 | 2,317,922 | 2,097,099 | |||||||||||||||
Inventories | 1,674,740 | 1,540,140 | Inventories | 2,138,050 | 1,900,024 | |||||||||||||
Prepaid expenses and other current assets | 149,839 | 133,544 | Prepaid expenses and other current assets | 161,003 | 146,160 | |||||||||||||
Total current assets | 9,408,785 | 8,560,409 | Total current assets | 11,274,883 | 10,853,535 | |||||||||||||
Property and equipment, net | 1,048,619 | 1,059,077 | Property and equipment, net | 1,133,529 | 1,071,499 | |||||||||||||
Restricted cash and investments | 254,155 | 255,177 | Restricted cash and investments | 253,458 | 253,911 | |||||||||||||
Goodwill | 1,484,050 | 1,484,597 | Goodwill | 1,484,629 | 1,484,436 | |||||||||||||
Intangible assets, net | 182,682 | 216,950 | Intangible assets, net | 161,714 | 168,532 | |||||||||||||
Other assets | 560,344 | 425,123 | Other assets | 748,795 | 727,134 | |||||||||||||
Total assets | $ | 12,938,635 | $ | 12,001,333 | Total assets | $ | 15,057,008 | $ | 14,559,047 | |||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | ||||||||||||||||||
LIABILITIES AND STOCKHOLDERS’ EQUITY | LIABILITIES AND STOCKHOLDERS’ EQUITY | |||||||||||||||||
Trade accounts payable | $ | 498,860 | $ | 376,561 | Trade accounts payable | $ | 662,674 | $ | 592,387 | |||||||||
Accrued expenses and other current liabilities | 1,024,793 | 946,641 | Accrued expenses and other current liabilities | 1,333,568 | 1,272,655 | |||||||||||||
Deferred profit | 539,601 | 381,317 | Deferred profit | 576,488 | 457,523 | |||||||||||||
Current portion of long-term debt and finance lease obligations | 42,407 | 667,131 | Current portion of long-term debt and finance lease obligations | 834,138 | 839,877 | |||||||||||||
Total current liabilities | 2,105,661 | 2,371,650 | Total current liabilities | 3,406,868 | 3,162,442 | |||||||||||||
Long-term debt and finance lease obligations, less current portion | 5,043,931 | 3,822,768 | Long-term debt and finance lease obligations, less current portion | 4,993,495 | 4,970,848 | |||||||||||||
Income taxes payable | 889,287 | 892,790 | Income taxes payable | 879,870 | 909,709 | |||||||||||||
Other long-term liabilities | 350,603 | 190,821 | Other long-term liabilities | 351,283 | 332,559 | |||||||||||||
Total liabilities | 8,389,482 | 7,278,029 | Total liabilities | 9,631,516 | 9,375,558 | |||||||||||||
Commitments and contingencies | Commitments and contingencies | |||||||||||||||||
Temporary equity, convertible notes | 11,546 | 49,439 | Temporary equity, convertible notes | 6,307 | 10,995 | |||||||||||||
Stockholders’ equity: | ||||||||||||||||||
Preferred stock, at par value of $0.001 per share; authorized, 5,000 shares, none outstanding | — | — | ||||||||||||||||
Common stock, at par value of $0.001 per share; authorized, 400,000 shares; issued and outstanding, 145,156 shares at March 29, 2020, and 144,433 shares at June 30, 2019 | 145 | 144 | ||||||||||||||||
Stockholders’ equity: | Stockholders’ equity: | |||||||||||||||||
Preferred stock, at par value of $0.001 per share; authorized, 5,000 shares, NaN outstanding | Preferred stock, at par value of $0.001 per share; authorized, 5,000 shares, NaN outstanding | 0 | 0 | |||||||||||||||
Common stock, at par value of $0.001 per share; authorized, 400,000 shares as of September 27, 2020 and June 28, 2020; issued and outstanding, 144,593 shares at September 27, 2020, and 145,331 shares at June 28, 2020 | Common stock, at par value of $0.001 per share; authorized, 400,000 shares as of September 27, 2020 and June 28, 2020; issued and outstanding, 144,593 shares at September 27, 2020, and 145,331 shares at June 28, 2020 | 145 | 145 | |||||||||||||||
Additional paid-in capital | 6,577,822 | 6,409,405 | Additional paid-in capital | 6,761,545 | 6,695,858 | |||||||||||||
Treasury stock, at cost; 145,493 shares at March 29, 2020, and 140,573 shares at June 30, 2019 | (12,918,730 | ) | (11,602,573 | ) | ||||||||||||||
Treasury stock, at cost; 146,791 shares at September 27, 2020, and 145,432 shares at June 28, 2020 | Treasury stock, at cost; 146,791 shares at September 27, 2020, and 145,432 shares at June 28, 2020 | (13,416,986) | (12,949,889) | |||||||||||||||
Accumulated other comprehensive loss | (112,676 | ) | (64,030 | ) | Accumulated other comprehensive loss | (82,672) | (94,211) | |||||||||||
Retained earnings | 10,991,046 | 9,930,919 | Retained earnings | 12,157,153 | 11,520,591 | |||||||||||||
Total stockholders’ equity | 4,537,607 | 4,673,865 | ||||||||||||||||
Total liabilities and stockholders’ equity | $ | 12,938,635 | $ | 12,001,333 | ||||||||||||||
Total stockholders’ equity | Total stockholders’ equity | 5,419,185 | 5,172,494 | |||||||||||||||
Total liabilities and stockholders’ equity | Total liabilities and stockholders’ equity | $ | 15,057,008 | $ | 14,559,047 |
Nine Months Ended | |||||||
March 29, 2020 | March 31, 2019 | ||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||
Net income | $ | 1,555,080 | $ | 1,649,605 | |||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||
Depreciation and amortization | 197,442 | 243,873 | |||||
Deferred income taxes | 74,516 | (75,105 | ) | ||||
Equity-based compensation expense | 136,044 | 142,389 | |||||
Amortization of note discounts and issuance costs | 4,611 | 5,137 | |||||
Other, net | 11,510 | (646 | ) | ||||
Changes in operating assets and liabilities | (665,800 | ) | 330,273 | ||||
Net cash provided by operating activities | 1,313,403 | 2,295,526 | |||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||
Capital expenditures and intangible assets | (152,685 | ) | (237,543 | ) | |||
Purchases of available-for-sale securities | (1,889,823 | ) | (1,975,688 | ) | |||
Maturities of available-for-sales securities | 1,163,555 | 395,569 | |||||
Sales of available-for-sale securities | 1,065,618 | 809,379 | |||||
Other, net | (540 | ) | (5,288 | ) | |||
Net cash provided by (used for) investing activities | 186,125 | (1,013,571 | ) | ||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||
Principal payments on debt | (664,589 | ) | (116,496 | ) | |||
Net repayments of commercial paper | — | (61,754 | ) | ||||
Proceeds from borrowings on revolving credit facility | 1,250,000 | — | |||||
Proceeds from issuance of long-term debt, net of issuance costs | — | 2,476,720 | |||||
Treasury stock purchases | (1,328,632 | ) | (2,672,051 | ) | |||
Dividends paid | (489,099 | ) | (513,475 | ) | |||
Reissuance of treasury stock related to employee stock purchase plan | 38,447 | 32,920 | |||||
Proceeds from issuance of common stock | 6,215 | 5,119 | |||||
Other, net | 328 | (13,207 | ) | ||||
Net cash used for financing activities | (1,187,330 | ) | (862,224 | ) | |||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (9,853 | ) | (904 | ) | |||
Net increase in cash, cash equivalents, and restricted cash | 302,345 | 418,827 | |||||
Cash, cash equivalents, and restricted cash at beginning of period | 3,913,396 | 4,768,558 | |||||
Cash, cash equivalents, and restricted cash at end of period | $ | 4,215,741 | $ | 5,187,385 | |||
Schedule of non-cash transactions: | |||||||
Accrued payables for stock repurchases | 295 | 1,637 | |||||
Accrued payables for capital expenditures | 29,690 | 27,283 | |||||
Dividends payable | 167,740 | 164,874 | |||||
Transfers of inventory to property and equipment, net | 34,155 | 42,519 | |||||
Reconciliation of cash, cash equivalents, and restricted cash | March 29, 2020 | March 31, 2019 | |||||
Cash and cash equivalents | $ | 3,961,586 | $ | 4,931,611 | |||
Restricted cash and investments | 254,155 | 255,774 | |||||
Total cash, cash equivalents, and restricted cash | $ | 4,215,741 | $ | 5,187,385 |
Three Months Ended | |||||||||||||||||
September 27, 2020 | September 29, 2019 | ||||||||||||||||
CASH FLOWS FROM OPERATING ACTIVITIES: | |||||||||||||||||
Net income | $ | 823,451 | $ | 465,789 | |||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Depreciation and amortization | 72,912 | 64,664 | |||||||||||||||
Deferred income taxes | (1,850) | (2,992) | |||||||||||||||
Equity-based compensation expense | 55,988 | 42,905 | |||||||||||||||
Amortization of note discounts and issuance costs | 1,422 | 1,675 | |||||||||||||||
Other, net | 2,917 | 4,026 | |||||||||||||||
Changes in operating assets and liabilities | (312,329) | (112,020) | |||||||||||||||
Net cash provided by operating activities | 642,511 | 464,047 | |||||||||||||||
CASH FLOWS FROM INVESTING ACTIVITIES: | |||||||||||||||||
Capital expenditures and intangible assets | (62,806) | (39,256) | |||||||||||||||
Purchases of available-for-sale securities | (1,750,188) | (147,632) | |||||||||||||||
Maturities of available-for-sales securities | 597,252 | 600,347 | |||||||||||||||
Sales of available-for-sale securities | 415,862 | 337,763 | |||||||||||||||
Other, net | (1,786) | (540) | |||||||||||||||
Net cash (used for) provided by investing activities | (801,666) | 750,682 | |||||||||||||||
CASH FLOWS FROM FINANCING ACTIVITIES: | |||||||||||||||||
Principal payments on debt | (19,173) | (28,965) | |||||||||||||||
Treasury stock purchases | (448,581) | (78,132) | |||||||||||||||
Dividends paid | (167,129) | (158,868) | |||||||||||||||
Proceeds from issuance of common stock | 5,538 | 3,869 | |||||||||||||||
Other, net | (2,140) | 0 | |||||||||||||||
Net cash used for financing activities | (631,485) | (262,096) | |||||||||||||||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | 4,082 | (4,193) | |||||||||||||||
Net (decrease) increase in cash, cash equivalents, and restricted cash | (786,558) | 948,440 | |||||||||||||||
Cash, cash equivalents, and restricted cash at beginning of period | 5,169,083 | 3,913,396 | |||||||||||||||
Cash, cash equivalents, and restricted cash at end of period | $ | 4,382,525 | $ | 4,861,836 | |||||||||||||
Schedule of non-cash transactions: | |||||||||||||||||
Accrued payables for stock repurchases | 18,599 | 13 | |||||||||||||||
Accrued payables for capital expenditures | 37,733 | 30,333 | |||||||||||||||
Dividends payable | 188,046 | 166,721 | |||||||||||||||
Transfers of inventory to property and equipment, net | 29,019 | 13,997 | |||||||||||||||
Reconciliation of cash, cash equivalents, and restricted cash | September 27, 2020 | September 29, 2019 | |||||||||||||||
Cash and cash equivalents | $ | 4,129,067 | $ | 4,607,182 | |||||||||||||
Restricted cash and investments | 253,458 | 254,654 | |||||||||||||||
Total cash, cash equivalents, and restricted cash | $ | 4,382,525 | $ | 4,861,836 |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 27, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Shares | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 28, 2020 | 145,331 | $ | 145 | $ | 6,695,858 | $ | (12,949,889) | $ | (94,211) | $ | 11,520,591 | $ | 5,172,494 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of common stock | 105 | 0 | 5,538 | — | — | — | 5,538 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | (1,360) | (1) | — | (467,097) | — | — | (467,098) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation expense | — | — | 55,988 | — | — | — | 55,988 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of conversion of convertible notes | 517 | 1 | (527) | — | — | — | (526) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification from temporary to permanent equity | — | — | 4,688 | — | — | — | 4,688 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2018-18 | — | — | — | — | — | 1,157 | 1,157 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 823,451 | 823,451 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income | — | — | — | — | 11,539 | — | 11,539 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($1.30 per common share) | — | — | — | — | — | (188,046) | (188,046) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 27, 2020 | 144,593 | $ | 145 | $ | 6,761,545 | $ | (13,416,986) | $ | (82,672) | $ | 12,157,153 | $ | 5,419,185 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 29, 2019 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Common Stock Shares | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 30, 2019 | 144,433 | $ | 144 | $ | 6,409,405 | $ | (11,602,573) | $ | (64,030) | $ | 9,930,919 | $ | 4,673,865 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Sale of common stock | 111 | — | 3,869 | — | — | — | 3,869 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Purchase of treasury stock | (397) | — | — | (78,116) | — | — | (78,116) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Equity-based compensation expense | — | — | 42,905 | — | — | — | 42,905 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Effect of conversion of convertible notes | 724 | 1 | (6,573) | — | — | — | (6,572) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Reclassification from temporary to permanent equity | — | — | 6,886 | — | — | — | 6,886 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Adoption of ASU 2016-02 | — | — | — | — | — | 3,018 | 3,018 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Net income | — | — | — | — | — | 465,789 | 465,789 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Other comprehensive loss | — | — | — | — | (8,530) | — | (8,530) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash dividends declared ($1.15 per common share) | — | — | — | — | — | (166,721) | (166,721) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 29, 2019 | 144,871 | $ | 145 | $ | 6,456,492 | $ | (11,680,689) | $ | (72,560) | $ | 10,233,005 | $ | 4,936,393 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Three Months Ended | ||||||||||||||||||||||||||
March 29, 2020 | ||||||||||||||||||||||||||
Common Stock Shares | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total | ||||||||||||||||||||
Balance at December 29, 2019 | 142,462 | $ | 142 | $ | 6,528,821 | $ | (12,673,292 | ) | $ | (60,247 | ) | $ | 10,584,005 | $ | 4,379,429 | |||||||||||
Sale of common stock | 1,047 | 1 | 1,713 | — | — | — | 1,714 | |||||||||||||||||||
Purchase of treasury stock | (1,576 | ) | (1 | ) | — | (245,438 | ) | — | — | (245,439 | ) | |||||||||||||||
Equity-based compensation expense | — | — | 47,414 | — | — | — | 47,414 | |||||||||||||||||||
Effect of conversion of convertible notes | 3,223 | 3 | (26,884 | ) | — | — | — | (26,881 | ) | |||||||||||||||||
Reclassification from temporary to permanent equity | — | — | 26,758 | — | — | — | 26,758 | |||||||||||||||||||
Net income | — | — | — | — | — | 574,781 | 574,781 | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | (52,429 | ) | — | (52,429 | ) | |||||||||||||||||
Cash dividends declared ($1.15 per common share) | — | — | — | — | — | (167,740 | ) | (167,740 | ) | |||||||||||||||||
Balance at March 29, 2020 | 145,156 | $ | 145 | $ | 6,577,822 | $ | (12,918,730 | ) | $ | (112,676 | ) | $ | 10,991,046 | $ | 4,537,607 | |||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
March 29, 2020 | ||||||||||||||||||||||||||
Common Stock Shares | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total | ||||||||||||||||||||
Balance at June 30, 2019 | 144,433 | $ | 144 | $ | 6,409,405 | $ | (11,602,573 | ) | $ | (64,030 | ) | $ | 9,930,919 | $ | 4,673,865 | |||||||||||
Sale of common stock | 1,230 | 1 | 6,214 | — | — | — | 6,215 | |||||||||||||||||||
Purchase of treasury stock | (5,215 | ) | (4 | ) | — | (1,328,894 | ) | — | — | (1,328,898 | ) | |||||||||||||||
Reissuance of treasury stock | 296 | — | 25,710 | 12,737 | — | — | 38,447 | |||||||||||||||||||
Equity-based compensation expense | — | — | 136,044 | — | — | — | 136,044 | |||||||||||||||||||
Effect of conversion of convertible notes | 4,412 | 4 | (37,444 | ) | — | — | — | (37,440 | ) | |||||||||||||||||
Reclassification from temporary to permanent equity | — | — | 37,893 | — | — | — | 37,893 | |||||||||||||||||||
Adoption of ASU 2016-02 | — | — | — | — | — | 3,018 | 3,018 | |||||||||||||||||||
Net income | — | — | — | — | — | 1,555,080 | 1,555,080 | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | (48,646 | ) | — | (48,646 | ) | |||||||||||||||||
Cash dividends declared ($3.45 per common share) | — | — | — | — | — | (497,971 | ) | (497,971 | ) | |||||||||||||||||
Balance at March 29, 2020 | 145,156 | $ | 145 | $ | 6,577,822 | $ | (12,918,730 | ) | $ | (112,676 | ) | $ | 10,991,046 | $ | 4,537,607 | |||||||||||
Three Months Ended | ||||||||||||||||||||||||||
March 31, 2019 | ||||||||||||||||||||||||||
Common Stock Shares | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total | ||||||||||||||||||||
Balance at December 23, 2018 | 153,961 | $ | 154 | $ | 6,256,942 | $ | (9,573,486 | ) | $ | (64,692 | ) | $ | 9,165,445 | $ | 5,784,363 | |||||||||||
Sale of common stock | 947 | 1 | 5,009 | — | — | — | 5,010 | |||||||||||||||||||
Purchase of treasury stock | (5,702 | ) | (6 | ) | — | (936,264 | ) | — | — | (936,270 | ) | |||||||||||||||
Equity-based compensation expense | — | — | 53,240 | — | — | — | 53,240 | |||||||||||||||||||
Effect of conversion of convertible notes | 680 | 1 | (6,921 | ) | — | — | — | (6,920 | ) | |||||||||||||||||
Reclassification from temporary to permanent equity | — | — | 7,225 | — | — | — | 7,225 | |||||||||||||||||||
Net income | — | — | — | — | — | 547,390 | 547,390 | |||||||||||||||||||
Other comprehensive income | — | — | — | — | 2,032 | — | 2,032 | |||||||||||||||||||
Cash dividends declared ($1.10 per common share) | — | — | — | — | — | (164,874 | ) | (164,874 | ) | |||||||||||||||||
Balance at March 31, 2019 | 149,886 | $ | 150 | $ | 6,315,495 | $ | (10,509,750 | ) | $ | (62,660 | ) | $ | 9,547,961 | $ | 5,291,196 | |||||||||||
Nine Months Ended | ||||||||||||||||||||||||||
March 31, 2019 | ||||||||||||||||||||||||||
Common Stock Shares | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Loss | Retained Earnings | Total | ||||||||||||||||||||
Balance at June 24, 2018 | 156,892 | $ | 157 | $ | 6,144,425 | $ | (7,846,476 | ) | $ | (57,449 | ) | $ | 8,261,194 | $ | 6,501,851 | |||||||||||
Sale of common stock | 1,026 | 1 | 5,118 | — | — | — | 5,119 | |||||||||||||||||||
Purchase of treasury stock | (15,193 | ) | (15 | ) | — | (2,673,557 | ) | — | — | (2,673,572 | ) | |||||||||||||||
Reissuance of treasury stock | 273 | — | 22,637 | 10,283 | — | — | 32,920 | |||||||||||||||||||
Equity-based compensation expense | — | — | 142,389 | — | — | — | 142,389 | |||||||||||||||||||
Effect of conversion of convertible notes | 2,783 | 3 | (27,470 | ) | — | — | — | (27,467 | ) | |||||||||||||||||
Exercise of warrants | 4,105 | 4 | (12 | ) | — | — | — | (8 | ) | |||||||||||||||||
Reclassification from temporary to permanent equity | — | — | 28,408 | — | — | — | 28,408 | |||||||||||||||||||
Adoption of ASU 2014-09 | — | — | — | — | — | 139,355 | 139,355 | |||||||||||||||||||
Adoption of ASU 2016-16 | — | — | — | — | — | (443 | ) | (443 | ) | |||||||||||||||||
Adoption of ASU 2018-02 | — | — | — | — | (2,227 | ) | 2,227 | — | ||||||||||||||||||
Net income | — | — | — | — | — | 1,649,605 | 1,649,605 | |||||||||||||||||||
Other comprehensive loss | — | — | — | — | (2,984 | ) | — | (2,984 | ) | |||||||||||||||||
Cash dividends declared ($3.30 per common share) | — | — | — | — | — | (503,977 | ) | (503,977 | ) | |||||||||||||||||
Balance at March 31, 2019 | 149,886 | $ | 150 | $ | 6,315,495 | $ | (10,509,750 | ) | $ | (62,660 | ) | $ | 9,547,961 | $ | 5,291,196 | |||||||||||
Less than 1 Year | 1-3 Years | More than 3 Years | Total | ||||||||||||
(In thousands) | |||||||||||||||
Deferred revenue | $ | 688,830 | $ | 37,389 | (1) | $ | — | $ | 726,219 |
Less than 1 Year | 1-3 Years | More than 3 Years | Total | ||||||||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||||||||||
Deferred revenue | $ | 581,580 | $ | 98,520 | (1) | $ | 0 | $ | 680,100 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||||||
(In thousands) | |||||||||||||||
System revenue | $ | 1,647,560 | $ | 1,612,382 | $ | 4,759,881 | $ | 4,880,731 | |||||||
Customer support-related revenue and other | 856,065 | 826,666 | 2,492,991 | 2,411,681 | |||||||||||
$ | 2,503,625 | $ | 2,439,048 | $ | 7,252,872 | $ | 7,292,412 |
Three Months Ended | |||||||||||||||||||||||||||||
September 27, 2020 | September 29, 2019 | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
System revenue | $ | 2,148,241 | $ | 1,365,228 | |||||||||||||||||||||||||
Customer support-related revenue and other | 1,028,839 | 800,518 | |||||||||||||||||||||||||||
$ | 3,177,080 | $ | 2,165,746 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||||||
(In thousands) | |||||||||||||||
China | $ | 792,412 | $ | 415,999 | $ | 2,142,366 | $ | 1,371,612 | |||||||
Korea | 589,072 | 609,892 | 1,503,733 | 1,621,165 | |||||||||||
Taiwan | 515,485 | 570,300 | 1,587,848 | 1,275,883 | |||||||||||
Japan | 239,751 | 403,592 | 721,664 | 1,765,449 | |||||||||||
United States | 215,015 | 230,636 | 622,399 | 486,436 | |||||||||||
Europe | 89,090 | 88,266 | 214,139 | 288,164 | |||||||||||
Southeast Asia | 62,800 | 120,363 | 460,723 | 483,703 | |||||||||||
$ | 2,503,625 | $ | 2,439,048 | $ | 7,252,872 | $ | 7,292,412 |
Three Months Ended | |||||||||||||||||||||||||||||
September 27, 2020 | September 29, 2019 | ||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||
China | $ | 1,174,669 | $ | 591,668 | |||||||||||||||||||||||||
Korea | 756,257 | 451,483 | |||||||||||||||||||||||||||
Taiwan | 446,091 | 391,492 | |||||||||||||||||||||||||||
Japan | 392,526 | 273,673 | |||||||||||||||||||||||||||
Southeast Asia | 203,339 | 213,755 | |||||||||||||||||||||||||||
United States | 137,892 | 183,659 | |||||||||||||||||||||||||||
Europe | 66,306 | 60,016 | |||||||||||||||||||||||||||
$ | 3,177,080 | $ | 2,165,746 |
Three Months Ended | Nine Months Ended | ||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||
Memory | 56 | % | 61 | % | 57 | % | 72 | % | |||
Foundry | 31 | % | 27 | % | 31 | % | 19 | % | |||
Logic/integrated device manufacturing | 13 | % | 12 | % | 12 | % | 9 | % |
Three Months Ended | |||||||||||||||||||||||||||||
September 27, 2020 | September 29, 2019 | ||||||||||||||||||||||||||||
Memory | 58 | % | 64 | % | |||||||||||||||||||||||||
Foundry | 36 | % | 25 | % | |||||||||||||||||||||||||
Logic/integrated device manufacturing | 6 | % | 11 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||||||
(in thousands) | |||||||||||||||
Equity-based compensation expense | $ | 47,414 | $ | 53,240 | $ | 136,044 | $ | 142,389 | |||||||
Income tax benefit recognized related to equity-based compensation expense | $ | 24,457 | $ | 28,337 | $ | 38,736 | $ | 42,204 |
Three Months Ended | |||||||||||||||||||||||||||||
September 27, 2020 | September 29, 2019 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Equity-based compensation expense | $ | 55,988 | $ | 42,905 | |||||||||||||||||||||||||
Income tax benefit recognized related to equity-based compensation expense | $ | 9,877 | $ | 9,818 |
Service-based RSUs Outstanding | Market-based PRSUs Outstanding | ||||||||||||
Number of Shares | Weighted- Average Grant Date Fair Value | Number of Shares | Weighted- Average Grant Date Fair Value | ||||||||||
June 30, 2019 | 1,796,885 | $ | 159.36 | 434,774 | $ | 144.57 | |||||||
Granted | 579,220 | 281.72 | 171,526 | 320.69 | |||||||||
Vested | (879,402 | ) | 151.23 | (257,787 | ) | 111.75 | |||||||
Expired or Forfeited | (76,783 | ) | 169.03 | (28,008 | ) | 159.04 | |||||||
March 29, 2020 | 1,419,920 | $ | 213.75 | 320,505 | $ | 207.95 |
Options Outstanding | ||||||
Number of Shares | Weighted- Average Exercise Price | |||||
June 30, 2019 | 494,883 | $ | 115.96 | |||
Granted | 34,236 | 300.33 | ||||
Exercised | (93,225 | ) | 66.65 | |||
Expired or forfeited | (4,948 | ) | 179.39 | |||
March 29, 2020 | 430,946 | $ | 140.54 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||||||
(in thousands) | |||||||||||||||
Interest income | $ | 18,856 | $ | 26,966 | $ | 76,094 | $ | 63,709 | |||||||
Interest expense | (41,580 | ) | (30,263 | ) | (128,190 | ) | (71,835 | ) | |||||||
(Losses) gains on deferred compensation plan-related assets, net | (33,828 | ) | 21,395 | (20,135 | ) | 4,235 | |||||||||
Foreign exchange gains (losses), net | 480 | 720 | (2,336 | ) | 3,352 | ||||||||||
Other, net | (8,547 | ) | 1,714 | (16,704 | ) | (9,955 | ) | ||||||||
$ | (64,619 | ) | $ | 20,532 | $ | (91,271 | ) | $ | (10,494 | ) |
Three Months Ended | |||||||||||||||||||||||||||||
September 27, 2020 | September 29, 2019 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Interest income | $ | 6,959 | $ | 31,784 | |||||||||||||||||||||||||
Interest expense | (52,115) | (43,995) | |||||||||||||||||||||||||||
Gains (losses) on deferred compensation plan-related assets, net | 12,927 | (436) | |||||||||||||||||||||||||||
Foreign exchange losses, net | (1,375) | (529) | |||||||||||||||||||||||||||
Other, net | (5,188) | 448 | |||||||||||||||||||||||||||
$ | (38,792) | $ | (12,728) |
Three Months Ended | |||||||||||||||||||||||||||||
September 27, 2020 | September 29, 2019 | ||||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||
Numerator: | |||||||||||||||||||||||||||||
Net income | $ | 823,451 | $ | 465,789 | |||||||||||||||||||||||||
Denominator: | |||||||||||||||||||||||||||||
Basic average shares outstanding | 145,267 | 144,673 | |||||||||||||||||||||||||||
Effect of potential dilutive securities: | |||||||||||||||||||||||||||||
Employee stock plans | 1,112 | 1,190 | |||||||||||||||||||||||||||
Convertible notes | 869 | 4,819 | |||||||||||||||||||||||||||
Diluted average shares outstanding | 147,248 | 150,682 | |||||||||||||||||||||||||||
Net income per share - basic | $ | 5.67 | $ | 3.22 | |||||||||||||||||||||||||
Net income per share - diluted | $ | 5.59 | $ | 3.09 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||||||
(in thousands, except per share data) | |||||||||||||||
Numerator: | |||||||||||||||
Net income | $ | 574,781 | $ | 547,390 | $ | 1,555,080 | $ | 1,649,605 | |||||||
Denominator: | |||||||||||||||
Basic average shares outstanding | 145,301 | 151,201 | 144,654 | 153,891 | |||||||||||
Effect of potential dilutive securities: | |||||||||||||||
Employee stock plans | 1,453 | 1,413 | 1,390 | 1,461 | |||||||||||
Convertible notes | 1,411 | 5,235 | 3,604 | 5,663 | |||||||||||
Warrants | — | — | — | 668 | |||||||||||
Diluted average shares outstanding | 148,165 | 157,849 | 149,648 | 161,683 | |||||||||||
Net income per share - basic | $ | 3.96 | $ | 3.62 | $ | 10.75 | $ | 10.72 | |||||||
Net income per share - diluted | $ | 3.88 | $ | 3.47 | $ | 10.39 | $ | 10.20 |
Three Months Ended | Nine Months Ended | ||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||
(in thousands) | |||||||||||
Options and RSUs | 40 | 640 | 13 | 717 |
Three Months Ended | |||||||||||||||||||||||||||||
September 27, 2020 | September 29, 2019 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Options and RSUs | 42 | 155 | |||||||||||||||||||||||||||
September 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Reported Within) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Value | Cash and Cash Equivalents | Investments | Restricted Cash & Investments | Other Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash | $ | 756,609 | $ | — | $ | — | $ | 756,609 | $ | 753,178 | $ | 0 | $ | 3,431 | $ | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits | 1,614,040 | — | — | 1,614,040 | 1,364,013 | 0 | 250,027 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | 1,753,879 | 0 | 0 | 1,753,879 | 1,753,879 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | 770,184 | 264 | (1) | 770,447 | 93,453 | 676,994 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mutual funds | 67,183 | 8,886 | (583) | 75,486 | 0 | 0 | 0 | 75,486 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 Total | 2,591,246 | 9,150 | (584) | 2,599,812 | 1,847,332 | 676,994 | 0 | 75,486 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government-sponsored enterprises | 3,498 | 14 | 0 | 3,512 | 0 | 3,512 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | 60,139 | 34 | (12) | 60,161 | 3,340 | 56,821 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate notes and bonds | 1,919,478 | 4,472 | (392) | 1,923,558 | 161,204 | 1,762,354 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage backed securities — residential | 7,754 | 67 | (15) | 7,806 | 0 | 7,806 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage backed securities — commercial | 21,257 | 97 | 0 | 21,354 | 0 | 21,354 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 2 Total | 2,012,126 | 4,684 | (419) | 2,016,391 | 164,544 | 1,851,847 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 6,974,021 | $ | 13,834 | $ | (1,003) | $ | 6,986,852 | $ | 4,129,067 | $ | 2,528,841 | $ | 253,458 | $ | 75,486 |
March 29, 2020 | |||||||||||||||||||||||||||||||
(Reported Within) | |||||||||||||||||||||||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Value | Cash and Cash Equivalents | Investments | Restricted Cash & Investments | Other Assets | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Cash | $ | 1,486,663 | $ | — | $ | — | $ | 1,486,663 | $ | 1,482,536 | $ | — | $ | 4,127 | $ | — | |||||||||||||||
Time deposit | 1,735,157 | — | — | 1,735,157 | 1,485,129 | — | 250,028 | — | |||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||||
Money market funds | 944,788 | — | — | 944,788 | 944,788 | — | — | — | |||||||||||||||||||||||
U.S. Treasury and agencies | 429,712 | 995 | — | 430,707 | 37,501 | 393,206 | — | — | |||||||||||||||||||||||
Mutual funds | 68,757 | 3,354 | (491 | ) | 71,620 | — | — | — | 71,620 | ||||||||||||||||||||||
Level 1 Total | 1,443,257 | 4,349 | (491 | ) | 1,447,115 | 982,289 | 393,206 | — | 71,620 | ||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||||
Government-sponsored enterprises | 2,011 | 1 | — | 2,012 | — | 2,012 | — | — | |||||||||||||||||||||||
Foreign government bonds | 32,230 | 48 | (47 | ) | 32,231 | — | 32,231 | — | — | ||||||||||||||||||||||
Corporate notes and bonds | 998,591 | 658 | (6,280 | ) | 992,969 | 11,632 | 981,337 | — | — | ||||||||||||||||||||||
Mortgage backed securities — residential | 3,628 | 59 | — | 3,687 | — | 3,687 | — | — | |||||||||||||||||||||||
Mortgage backed securities — commercial | 18,957 | 120 | — | 19,077 | — | 19,077 | — | — | |||||||||||||||||||||||
Level 2 Total | 1,055,417 | 886 | (6,327 | ) | 1,049,976 | 11,632 | 1,038,344 | — | — | ||||||||||||||||||||||
Total | $ | 5,720,494 | $ | 5,235 | $ | (6,818 | ) | $ | 5,718,911 | $ | 3,961,586 | $ | 1,431,550 | $ | 254,155 | $ | 71,620 |
June 28, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Reported Within) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Value | Cash and Cash Equivalents | Investments | Restricted Cash & Investments | Other Assets | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Cash | $ | 977,862 | $ | — | $ | — | $ | 977,862 | $ | 973,978 | $ | 0 | $ | 3,884 | $ | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Time deposits | 2,244,655 | — | — | 2,244,655 | 1,994,628 | 0 | 250,027 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Money market funds | 1,709,350 | 0 | 0 | 1,709,350 | 1,709,350 | 0 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | 552,088 | 373 | (9) | 552,452 | 76,992 | 475,460 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mutual funds | 68,784 | 4,571 | (928) | 72,427 | 0 | 0 | 0 | 72,427 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 1 Total | 2,330,222 | 4,944 | (937) | 2,334,229 | 1,786,342 | 475,460 | 0 | 72,427 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government-sponsored enterprises | 31,442 | 12 | 0 | 31,454 | 25,999 | 5,455 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | 10,693 | 28 | (5) | 10,716 | 2,540 | 8,176 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate notes and bonds | 1,405,615 | 5,344 | (302) | 1,410,657 | 131,685 | 1,278,972 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage backed securities — residential | 3,142 | 71 | 0 | 3,213 | 0 | 3,213 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage backed securities — commercial | 23,660 | 144 | 0 | 23,804 | 0 | 23,804 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Level 2 Total | 1,474,552 | 5,599 | (307) | 1,479,844 | 160,224 | 1,319,620 | 0 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 7,027,291 | $ | 10,543 | $ | (1,244) | $ | 7,036,590 | $ | 4,915,172 | $ | 1,795,080 | $ | 253,911 | $ | 72,427 |
June 30, 2019 | |||||||||||||||||||||||||||||||
(Reported Within) | |||||||||||||||||||||||||||||||
Cost | Unrealized Gain | Unrealized (Loss) | Fair Value | Cash and Cash Equivalents | Investments | Restricted Cash & Investments | Other Assets | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Cash | $ | 467,460 | $ | — | $ | — | $ | 467,460 | $ | 462,310 | $ | — | $ | 5,150 | $ | — | |||||||||||||||
Time deposit | 1,563,686 | — | — | 1,563,686 | 1,313,659 | — | 250,027 | — | |||||||||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||||
Money market funds | 1,644,659 | — | — | 1,644,659 | 1,644,659 | — | — | — | |||||||||||||||||||||||
U.S. Treasury and agencies | 465,655 | 283 | (24 | ) | 465,914 | 86,981 | 378,933 | — | — | ||||||||||||||||||||||
Mutual funds | 76,961 | 1,063 | (283 | ) | 77,741 | — | — | — | 77,741 | ||||||||||||||||||||||
Level 1 Total | 2,187,275 | 1,346 | (307 | ) | 2,188,314 | 1,731,640 | 378,933 | — | 77,741 | ||||||||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||||
Government-sponsored enterprises | 16,005 | 5 | (41 | ) | 15,969 | — | 15,969 | — | — | ||||||||||||||||||||||
Foreign government bonds | 24,408 | 35 | — | 24,443 | — | 24,443 | — | — | |||||||||||||||||||||||
Corporate notes and bonds | 1,466,167 | 2,310 | (99 | ) | 1,468,378 | 150,610 | 1,317,768 | — | — | ||||||||||||||||||||||
Mortgage backed securities — residential | 6,148 | — | (4 | ) | 6,144 | — | 6,144 | — | — | ||||||||||||||||||||||
Mortgage backed securities — commercial | 29,587 | 140 | — | 29,727 | — | 29,727 | — | — | |||||||||||||||||||||||
Level 2 Total | 1,542,315 | 2,490 | (144 | ) | 1,544,661 | 150,610 | 1,394,051 | — | — | ||||||||||||||||||||||
Total | $ | 5,760,736 | $ | 3,836 | $ | (451 | ) | $ | 5,764,121 | $ | 3,658,219 | $ | 1,772,984 | $ | 255,177 | $ | 77,741 |
March 29, 2020 | |||||||||||||||||||||||
Unrealized Losses Less than 12 Months | Unrealized Losses 12 Months or Greater | Total | |||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Mutual funds | $ | 6,363 | $ | (193 | ) | $ | 8,108 | $ | (298 | ) | $ | 14,471 | $ | (491 | ) | ||||||||
Foreign government bonds | 3,900 | (47 | ) | — | — | 3,900 | (47 | ) | |||||||||||||||
Corporate notes and bonds | 676,318 | (6,280 | ) | — | — | 676,318 | (6,280 | ) | |||||||||||||||
$ | 686,581 | $ | (6,520 | ) | $ | 8,108 | $ | (298 | ) | $ | 694,689 | $ | (6,818 | ) |
September 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Unrealized Losses Less than 12 Months | Unrealized Losses 12 Months or Greater | Total | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | Fair Value | Gross Unrealized Loss | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | $ | 74,231 | $ | (1) | $ | 0 | $ | 0 | $ | 74,231 | $ | (1) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Mutual funds | 0 | 0 | 7,953 | (583) | 7,953 | (583) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | 46,218 | (12) | 0 | 0 | 46,218 | (12) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate notes and bonds | 478,124 | (392) | 0 | 0 | 478,124 | (392) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage backed securities — residential | 4,912 | (15) | 0 | 0 | 4,912 | (15) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 603,485 | $ | (420) | $ | 7,953 | $ | (583) | $ | 611,438 | $ | (1,003) |
Cost | Estimated Fair Value | ||||||
(in thousands) | |||||||
Due in one year or less | $ | 3,794,435 | $ | 3,793,166 | |||
Due after one year through five years | 349,695 | 346,732 | |||||
Due in more than five years | 20,944 | 20,730 | |||||
$ | 4,165,074 | $ | 4,160,628 |
Cost | Estimated Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||
Due in one year or less | $ | 5,325,959 | $ | 5,327,267 | |||||||||||||
Due after one year through five years | 783,076 | 786,135 | |||||||||||||||
Due in more than five years | 41,194 | 41,355 | |||||||||||||||
$ | 6,150,229 | $ | 6,154,757 |
Notional Value | |||||||||||||||
Derivatives Designated as Hedging Instruments: | Derivatives Not Designated as Hedging Instruments: | ||||||||||||||
(in thousands) | |||||||||||||||
Buy Contracts | Sell Contracts | Buy Contracts | Sell Contracts | ||||||||||||
Japanese yen | $ | — | $ | 190,470 | $ | 28,759 | $ | — | |||||||
Euro | 80,061 | — | 42,354 | — | |||||||||||
Korean won | 35,357 | — | 407 | — | |||||||||||
Taiwan dollar | — | — | 46,686 | — | |||||||||||
Chinese renminbi | — | — | 21,327 | — | |||||||||||
Swiss franc | — | — | 16,360 | — | |||||||||||
Indian rupee | — | — | 9,841 | — | |||||||||||
British pound sterling | — | — | 8,263 | — | |||||||||||
Singapore dollar | — | — | 5,529 | — | |||||||||||
$ | 115,418 | $ | 190,470 | $ | 179,526 | $ | — |
Notional Value | |||||||||||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments: | Derivatives Not Designated as Hedging Instruments: | ||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Buy Contracts | Sell Contracts | Buy Contracts | Sell Contracts | ||||||||||||||||||||||||||||||||||||||
Japanese yen | $ | 0 | $ | 370,658 | $ | 0 | $ | 9,495 | |||||||||||||||||||||||||||||||||
Euro | 101,899 | 0 | 32,707 | 0 | |||||||||||||||||||||||||||||||||||||
Korean won | 84,339 | 0 | 0 | 51,523 | |||||||||||||||||||||||||||||||||||||
Malaysian ringgit | 43,120 | 0 | 14,484 | 0 | |||||||||||||||||||||||||||||||||||||
Indian rupee | 39,170 | 0 | 3,616 | 0 | |||||||||||||||||||||||||||||||||||||
Taiwan dollar | 0 | 0 | 51,855 | 0 | |||||||||||||||||||||||||||||||||||||
Chinese renminbi | 0 | 0 | 40,996 | 0 | |||||||||||||||||||||||||||||||||||||
Swiss franc | 0 | 0 | 22,124 | 0 | |||||||||||||||||||||||||||||||||||||
Singapore dollar | 0 | 0 | 14,598 | 0 | |||||||||||||||||||||||||||||||||||||
British pound sterling | 0 | 0 | 9,564 | 0 | |||||||||||||||||||||||||||||||||||||
$ | 268,528 | $ | 370,658 | $ | 189,944 | $ | 61,018 | ||||||||||||||||||||||||||||||||||
March 29, 2020 | June 30, 2019 | ||||||||||||||||||||||
Fair Value of Derivative Instruments (Level 2) | Fair Value of Derivative Instruments (Level 2) | ||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | ||||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||
Foreign exchange contracts | Prepaid expense and other assets | $ | 7,133 | Accrued expenses and other current liabilities | $ | 3,538 | Prepaid expense and other assets | $ | 119 | Accrued expenses and other current liabilities | $ | 2,756 | |||||||||||
Interest rate contracts, short-term | Accrued expenses and other current liabilities | 38,506 | Accrued expenses and other current liabilities | 5,149 | |||||||||||||||||||
Interest rate contracts, long-term | Other assets | — | — | Other assets | 1,537 | — | |||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||
Foreign exchange contracts | Prepaid expense and other assets | 5 | Accrued expenses and other current liabilities | 234 | Prepaid expense and other assets | 1,249 | Accrued expenses and other current liabilities | 748 | |||||||||||||||
Total Derivatives | $ | 7,138 | $ | 42,278 | $ | 2,905 | $ | 8,653 |
September 27, 2020 | June 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments (Level 2) | Fair Value of Derivative Instruments (Level 2) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivative Assets | Derivative Liabilities | Derivative Assets | Derivative Liabilities | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | Balance Sheet Location | Fair Value | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid expense and other assets | $ | 3,700 | Accrued expenses and other current liabilities | $ | 3,509 | Prepaid expense and other assets | $ | 1,862 | Accrued expenses and other current liabilities | $ | 1,405 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts | Prepaid expense and other assets | 169 | Accrued expenses and other current liabilities | 85 | Prepaid expense and other assets | 155 | Accrued expenses and other current liabilities | 70 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total Derivatives | $ | 3,869 | $ | 3,594 | $ | 2,017 | $ | 1,475 |
Three Months Ended | Nine Months Ended | Three Months Ended | |||||||||||||||||||||||||||||||||||||||||||||||||
March 29, 2020 | March 29, 2020 | September 27, 2020 | |||||||||||||||||||||||||||||||||||||||||||||||||
Location of Gain or (Loss) Recognized in or Reclassified into Income | Gain (loss) Recognized in AOCI | Gain (Loss) Reclassified from AOCI into Income | Gain (Loss) Recognized in AOCI | Gain (Loss) Reclassified from AOCI into Income | Location of Gain or (Loss) Recognized in or Reclassified into Income | (Loss) Gain Recognized in AOCI | (Loss) Gain Reclassified from AOCI into Income | ||||||||||||||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | Derivatives in Cash Flow Hedging Relationships | (in thousands) | Derivatives in Cash Flow Hedging Relationships | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Revenue | $ | 6,334 | $ | 1,279 | $ | 9,532 | $ | 773 | Foreign Exchange Contracts | Revenue | $ | (3,281) | $ | (835) | ||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Cost of goods sold | (2,589 | ) | (186 | ) | (3,656 | ) | (2,086 | ) | Foreign Exchange Contracts | Cost of goods sold | 1,093 | 560 | ||||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Selling, general, and administrative | (1,394 | ) | 6 | (1,859 | ) | (887 | ) | Foreign Exchange Contracts | Selling, general, and administrative | 1,640 | 305 | |||||||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Foreign Exchange Contracts | Research and Development | 394 | 0 | |||||||||||||||||||||||||||||||||||||||||||||||
Interest Rate Contracts | Other (expense) income, net | (40,901 | ) | (36 | ) | (38,507 | ) | (106 | ) | Interest Rate Contracts | Other expense, net | 0 | (952) | ||||||||||||||||||||||||||||||||||||||
$ | (38,550 | ) | $ | 1,063 | $ | (34,490 | ) | $ | (2,306 | ) | $ | (154) | $ | (922) |
Three Months Ended | |||||||||||||||||||||||||||||||||||
September 29, 2019 | |||||||||||||||||||||||||||||||||||
Location of Gain or (Loss) Recognized in or Reclassified into Income | Gain (Loss) Recognized in AOCI | Loss Reclassified from AOCI into Income | |||||||||||||||||||||||||||||||||
Derivatives in Cash Flow Hedging Relationships | (in thousands) | ||||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Revenue | $ | 934 | $ | (334) | ||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Cost of goods sold | (1,263) | (810) | ||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Selling, general, and administrative | (595) | (476) | ||||||||||||||||||||||||||||||||
Interest Rate Contracts | Other expense, net | 0 | (35) | ||||||||||||||||||||||||||||||||
$ | (924) | $ | (1,655) |
Three Months Ended | Nine Months Ended | |||||||||||||||
March 31, 2019 | March 31, 2019 | |||||||||||||||
Location of Gain or (Loss) Recognized in or Reclassified into Income | (Loss) Gain Recognized in AOCI | Gain (Loss) Reclassified from AOCI into Income | Gain (Loss) Recognized in AOCI | Gain (Loss) Reclassified from AOCI into Income | ||||||||||||
Derivatives in Cash Flow Hedging Relationships | (in thousands) | |||||||||||||||
Foreign Exchange Contracts | Revenue | $ | (7,203 | ) | $ | 206 | $ | 9,467 | $ | 8,693 | ||||||
Foreign Exchange Contracts | Cost of goods sold | (1,395 | ) | (2,097 | ) | (3,484 | ) | (4,505 | ) | |||||||
Foreign Exchange Contracts | Selling, general, and administrative | (475 | ) | (600 | ) | (1,353 | ) | (1,778 | ) | |||||||
Interest Rate Contracts | Other (expense) income, net | — | (34 | ) | — | (100 | ) | |||||||||
$ | (9,073 | ) | $ | (2,525 | ) | $ | 4,630 | $ | 2,310 |
Three Months Ended | ||||||||||||||||||||||||||||||||
September 27, 2020 | September 29, 2019 | |||||||||||||||||||||||||||||||
Derivatives Not Designated as Hedging Instruments: | Location of Gain (Loss) Recognized in Income | Gain Recognized in Income | Loss Recognized in Income | |||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Other expense, net | $ | 2,747 | $ | (5,501) |
Three Months Ended | Nine Months Ended | |||||||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | |||||||||||||
Derivatives Not Designated as Hedging Instruments: | Location of Gain (Loss) Recognized in Income | Loss Recognized in Income | Loss Recognized in Income | Loss Recognized in Income | Gain Recognized in Income | |||||||||||
(in thousands) | ||||||||||||||||
Foreign Exchange Contracts | Other (expense) income, net | $ | (6,858 | ) | $ | (6,747 | ) | $ | (8,788 | ) | $ | 4,142 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||||||||
March 29, 2020 | March 29, 2020 | ||||||||||||||||||||||||||||||
Revenue | Cost of Goods Sold | Selling, General and Admini-strative | Other (Expense) Income, Net | Revenue | Cost of Goods Sold | Selling, General and Admini-strative | Other (Expense) Income, Net | ||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded: | |||||||||||||||||||||||||||||||
$ | 2,503,625 | $1,336,618 | $ | 164,979 | $ | (64,619 | ) | $ | 7,252,872 | $ | 3,924,511 | $ | 496,679 | $ | (91,271 | ) | |||||||||||||||
The effects of fair value and cash flow hedging: | |||||||||||||||||||||||||||||||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20: | |||||||||||||||||||||||||||||||
Interest contracts: | |||||||||||||||||||||||||||||||
Hedged items | $ | — | $ | — | $ | — | $ | (7,789 | ) | $ | — | $ | — | $ | — | $ | (12,862 | ) | |||||||||||||
Derivatives designated as hedging instruments | $ | — | $ | — | $ | — | $ | 7,789 | $ | — | $ | — | $ | — | $ | 12,862 | |||||||||||||||
Gain or (loss) on cash flow hedging relationships in Subtopic 815-20: | |||||||||||||||||||||||||||||||
Foreign exchange contracts: | |||||||||||||||||||||||||||||||
Amount of gain (loss) reclassified from accumulated other comprehensive income into income | $ | 1,279 | $ | (186 | ) | $ | 6 | $ | — | $ | 773 | $ | (2,086 | ) | $ | (887 | ) | $ | — | ||||||||||||
Interest rate contracts: | |||||||||||||||||||||||||||||||
Amount of loss reclassified from accumulated other comprehensive income into income | $ | — | $ | — | $ | — | $ | (36 | ) | $ | — | $ | — | $ | — | $ | (106 | ) |
Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
September 27, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Revenue | Cost of Goods Sold | Selling, General and Admini-strative | Other Expense, Net | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total amounts of income and expense line items presented in the statement of financial performance in which the effects of cash flow hedges are recorded: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 3,177,080 | $ | 1,670,901 | $ | 189,748 | $ | (38,792) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(Loss) or gain on cash flow hedging relationships in Subtopic 815-20: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign exchange contracts: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of (loss) gain reclassified from accumulated other comprehensive income into income | $ | (835) | $ | 560 | $ | 305 | $ | 0 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate contracts: | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Amount of loss reclassified from accumulated other comprehensive income into income | $ | 0 | $ | 0 | $ | 0 | $ | (952) |
September 27, 2020 | June 28, 2020 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Raw materials | $ | 1,284,302 | $ | 1,161,961 | |||||||||||||
Work-in-process | 269,023 | 251,199 | |||||||||||||||
Finished goods | 584,725 | 486,864 | |||||||||||||||
$ | 2,138,050 | $ | 1,900,024 |
March 29, 2020 | June 30, 2019 | ||||||
(in thousands) | |||||||
Raw materials | $ | 1,035,490 | $ | 994,738 | |||
Work-in-process | 227,602 | 174,219 | |||||
Finished goods | 411,648 | 371,183 | |||||
$ | 1,674,740 | $ | 1,540,140 |
September 27, 2020 | June 28, 2020 | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Customer relationships | $ | 630,171 | $ | (544,753) | $ | 85,418 | $ | 630,137 | $ | (532,550) | $ | 97,587 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Existing technology | 669,068 | (655,826) | 13,242 | 668,992 | (654,382) | 14,610 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Patents and other intangible assets | 108,326 | (45,272) | 63,054 | 98,342 | (42,007) | 56,335 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total intangible assets | $ | 1,407,565 | $ | (1,245,851) | $ | 161,714 | $ | 1,397,471 | $ | (1,228,939) | $ | 168,532 |
March 29, 2020 | June 30, 2019 | ||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | ||||||||||||||||||
(in thousands) | |||||||||||||||||||||||
Customer relationships | $ | 630,068 | $ | (520,321 | ) | $ | 109,747 | $ | 630,165 | $ | (483,204 | ) | $ | 146,961 | |||||||||
Existing technology | 668,840 | (652,523 | ) | 16,317 | 669,399 | (647,837 | ) | 21,562 | |||||||||||||||
Patents and other intangible assets | 95,716 | (39,098 | ) | 56,618 | 126,235 | (77,808 | ) | 48,427 | |||||||||||||||
Total intangible assets | $ | 1,394,624 | $ | (1,211,942 | ) | $ | 182,682 | $ | 1,425,799 | $ | (1,208,849 | ) | $ | 216,950 |
Fiscal Year | Amount | ||
(in thousands) | |||
2020 (remaining 3 months) | $ | 16,664 | |
2021 | 64,711 | ||
2022 | 60,441 | ||
2023 | 14,963 | ||
2024 | 7,664 | ||
Thereafter | 3,169 | ||
$ | 167,612 |
Fiscal Year | Amount | ||||
(in thousands) | |||||
2021 (remaining 9 months) | $ | 50,270 | |||
2022 | 62,918 | ||||
2023 | 17,275 | ||||
2024 | 9,269 | ||||
2025 | 4,577 | ||||
Thereafter | 697 | ||||
$ | 145,006 |
September 27, 2020 | June 28, 2020 | ||||||||||||||||
(in thousands) | |||||||||||||||||
Accrued compensation | $ | 445,625 | $ | 402,401 | |||||||||||||
Warranty reserves | 125,237 | 117,839 | |||||||||||||||
Income and other taxes payable | 170,409 | 215,652 | |||||||||||||||
Dividend payable | 188,046 | 167,129 | |||||||||||||||
Other | 404,251 | 369,634 | |||||||||||||||
$ | 1,333,568 | $ | 1,272,655 |
March 29, 2020 | June 30, 2019 | ||||||
(in thousands) | |||||||
Accrued compensation | $ | 305,303 | $ | 336,090 | |||
Warranty reserves | 117,685 | 127,932 | |||||
Income and other taxes payable | 112,468 | 49,926 | |||||
Dividend payable | 167,740 | 158,868 | |||||
Other | 321,597 | 273,825 | |||||
$ | 1,024,793 | $ | 946,641 |
September 27, 2020 | June 28, 2020 | |||||||||||||||||||||||||||||||||||||
Amount (in thousands) | Effective Interest Rate | Amount (in thousands) | Effective Interest Rate | |||||||||||||||||||||||||||||||||||
Fixed-rate 2.80% Senior Notes Due June 15, 2021 ("2021 Notes") | 800,000 | 2.95 | % | 800,000 | 2.95 | % | ||||||||||||||||||||||||||||||||
Fixed-rate 3.80% Senior Notes Due March 15, 2025 ("2025 Notes") | 500,000 | 3.87 | % | 500,000 | 3.87 | % | ||||||||||||||||||||||||||||||||
Fixed-rate 3.75% Senior Notes Due March 15, 2026 ("2026 Notes") | 750,000 | 3.86 | % | 750,000 | 3.86 | % | ||||||||||||||||||||||||||||||||
Fixed-rate 4.00% Senior Notes Due March 15, 2029 ("2029 Notes") | 1,000,000 | 4.09 | % | 1,000,000 | 4.09 | % | ||||||||||||||||||||||||||||||||
Fixed-rate 1.90% Senior Note Due June 15, 2030 ("2030 Notes") | 750,000 | 2.01 | % | 750,000 | 2.01 | % | ||||||||||||||||||||||||||||||||
Fixed-rate 2.625% Convertible Notes Due May 15, 2041 ("2041 Notes") | 30,361 | (1) | 4.28 | % | 48,460 | (1) | 4.28 | % | ||||||||||||||||||||||||||||||
Fixed-rate 4.875% Senior Notes Due March 15, 2049 ("2049 Notes") | 750,000 | 4.93 | % | 750,000 | 4.93 | % | ||||||||||||||||||||||||||||||||
Fixed-rate 2.875% Senior Note Due June 15, 2050 ("2050 Notes") | 750,000 | 2.93 | % | 750,000 | 2.93 | % | ||||||||||||||||||||||||||||||||
Fixed-rate 3.125% Senior Note Due June 15, 2060 ("2060 Notes") | 500,000 | 3.18 | % | 500,000 | 3.18 | % | ||||||||||||||||||||||||||||||||
Total debt outstanding, at par | 5,830,361 | 5,848,460 | ||||||||||||||||||||||||||||||||||||
Unamortized discount | (47,451) | (53,086) | ||||||||||||||||||||||||||||||||||||
Fair value adjustment - interest rate contracts | 7,959 | (2) | 8,405 | (2) | ||||||||||||||||||||||||||||||||||
Unamortized bond issuance costs | (8,085) | (8,301) | ||||||||||||||||||||||||||||||||||||
Total debt outstanding, at carrying value | $ | 5,782,784 | $ | 5,795,478 | ||||||||||||||||||||||||||||||||||
Reported as: | ||||||||||||||||||||||||||||||||||||||
Current portion of long-term debt | $ | 823,051 | $ | 836,107 | ||||||||||||||||||||||||||||||||||
Long-term debt | 4,959,733 | 4,959,371 | ||||||||||||||||||||||||||||||||||||
Total debt outstanding, at carrying value | $ | 5,782,784 | $ | 5,795,478 |
March 29, 2020 | June 30, 2019 | |||||||||||||
Amount (in thousands) | Effective Interest Rate | Amount (in thousands) | Effective Interest Rate | |||||||||||
Fixed-rate 2.75% Senior Notes Due March 15, 2020 ("2020 Notes") | $ | — | — | $ | 500,000 | 2.88 | % | |||||||
Fixed-rate 2.80% Senior Notes Due June 15, 2021 ("2021 Notes") | 800,000 | 2.95 | % | 800,000 | 2.95 | % | ||||||||
Fixed-rate 3.80% Senior Notes Due March 15, 2025 ("2025 Notes") | 500,000 | 3.87 | % | 500,000 | 3.87 | % | ||||||||
Fixed-rate 3.75% Senior Notes Due March 15, 2026 ("2026 Notes") | 750,000 | 3.86 | % | 750,000 | 3.86 | % | ||||||||
Fixed-rate 4.00% Senior Notes Due March 15, 2029 ("2029 Notes") | 1,000,000 | 4.09 | % | 1,000,000 | 4.09 | % | ||||||||
Fixed-rate 2.625% Convertible Notes Due May 15, 2041 ("2041 Notes") | 50,509 | (1) | 4.28 | % | 212,349 | (1) | 4.28 | % | ||||||
Fixed-rate 4.875% Senior Notes Due March 15, 2049 ("2049 Notes") | 750,000 | 4.93 | % | 750,000 | 4.93 | % | ||||||||
Revolving credit facility | 1,250,000 | 2.03 | % | — | — | |||||||||
Total debt outstanding, at par | 5,100,509 | 4,512,349 | ||||||||||||
Unamortized discount | (32,734 | ) | (73,191 | ) | ||||||||||
Fair value adjustment - interest rate contracts | 8,851 | (2) | (3,612 | ) | ||||||||||
Unamortized bond issuance costs | (4,885 | ) | (5,535 | ) | ||||||||||
Total debt outstanding, at carrying value | $ | 5,071,741 | $ | 4,430,011 | ||||||||||
Reported as: | ||||||||||||||
Current portion of long-term debt, and commercial paper | $ | 38,963 | $ | 662,308 | ||||||||||
Long-term debt | 5,032,778 | 3,767,703 | ||||||||||||
Total debt outstanding, at carrying value | $ | 5,071,741 | $ | 4,430,011 |
March 29, 2020 | June 30, 2019 | ||||||
2041 Notes | 2041 Notes | ||||||
(in thousands, except years, percentages, conversion rate, and conversion price) | |||||||
Carrying amount of permanent equity component, net of tax | $ | 161,384 | $ | 160,604 | |||
Carrying amount of temporary equity component, net of tax | $ | 11,546 | $ | 49,439 | |||
Remaining amortization period (years) | 21.1 | 21.9 | |||||
Fair Value of Notes (Level 2) | $ | 393,801 | |||||
Conversion rate (shares of common stock per $1,000 principal amount of notes) | 31.3961 | ||||||
Conversion price (per share of common stock) | $ | 31.85 | |||||
If-converted value in excess of par value | $ | 332,014 | |||||
Estimated share dilution using average quarterly stock price $289.37 per share | 1,411 |
September 27, 2020 | June 28, 2020 | ||||||||||||||||
2041 Notes | 2041 Notes | ||||||||||||||||
(in thousands, except years, percentages, conversion rate, and conversion price) | |||||||||||||||||
Carrying amount of permanent equity component, net of tax | $ | 161,531 | $ | 161,467 | |||||||||||||
Carrying amount of temporary equity component, net of tax | $ | 6,307 | $ | 10,995 | |||||||||||||
Remaining amortization period (years) | 20.6 | 20.9 | |||||||||||||||
Fair Value of Notes (Level 2) | $ | 315,182 | |||||||||||||||
Conversion rate (shares of common stock per $1,000 principal amount of notes) | 31.5206 | ||||||||||||||||
Conversion price (per share of common stock) | $ | 31.73 | |||||||||||||||
If-converted value in excess of par value | $ | 285,706 | |||||||||||||||
Estimated share dilution using average quarterly stock price $344.03 per share | 869 |
Remaining Amortization period | Fair Value of Notes (Level 2) | ||||
(years) | (in thousands) | ||||
2021 Notes | 1.2 | $ | 814,496 | ||
2025 Notes | 5.0 | $ | 512,795 | ||
2026 Notes | 6.0 | $ | 771,278 | ||
2029 Notes | 9.0 | $ | 1,099,560 | ||
2049 Notes | 29.0 | $ | 992,655 |
Remaining Amortization period | Fair Value of Notes (Level 2) | ||||||||||
(years) | (in thousands) | ||||||||||
2021 Notes | 0.7 | $ | 811,752 | ||||||||
2025 Notes | 4.5 | $ | 562,955 | ||||||||
2026 Notes | 5.5 | $ | 860,393 | ||||||||
2029 Notes | 8.5 | $ | 1,197,500 | ||||||||
2030 Notes | 9.7 | $ | 775,058 | ||||||||
2049 Notes | 28.5 | $ | 1,065,315 | ||||||||
2050 Notes | 29.7 | $ | 782,858 | ||||||||
2060 Notes | 39.7 | $ | 545,435 |
Three Months Ended | |||||||||||||||||||||||||||||
September 27, 2020 | September 29, 2019 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Contractual interest coupon | $ | 49,571 | $ | 41,122 | |||||||||||||||||||||||||
Amortization of interest discount | 1,012 | 1,235 | |||||||||||||||||||||||||||
Amortization of issuance costs | 411 | 414 | |||||||||||||||||||||||||||
Effect of interest rate contracts, net | 506 | 675 | |||||||||||||||||||||||||||
Total interest cost recognized | $ | 51,500 | $ | 43,446 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||||||
(in thousands) | |||||||||||||||
Contractual interest coupon | $ | 40,409 | $ | 24,837 | $ | 122,196 | $ | 58,814 | |||||||
Amortization of interest discount | 953 | 956 | 3,346 | 2,743 | |||||||||||
Amortization of issuance costs | 408 | 355 | 1,238 | 1,013 | |||||||||||
Effect of interest rate contracts, net | 59 | 1,558 | 889 | 3,088 | |||||||||||
Total interest cost recognized | $ | 41,829 | $ | 27,706 | $ | 127,669 | $ | 65,658 |
Three Months Ended | Nine Months Ended | ||||||
March 29, 2020 | March 29, 2020 | ||||||
(in thousands) | |||||||
Financing lease cost: | |||||||
Amortization of right-of-use assets | $ | 895 | $ | 2,713 | |||
Interest on lease liabilities | 126 | 392 | |||||
Total finance lease cost | $ | 1,021 | $ | 3,105 | |||
Operating lease cost | $ | 12,370 | $ | 33,555 | |||
Variable lease cost | 23,776 | 64,794 |
Nine Months Ended | ||||
March 29, 2020 | ||||
Cash paid for amounts included in the measurement of lease liabilities: | ||||
Operating cash flows paid for operating leases | $ | 30,730 | ||
Financing cash flows paid for principal portion of finance leases | 2,653 | |||
Right-of-use assets obtained in exchange for lease obligations: | ||||
Operating leases | $ | 79,919 | ||
Finance leases | 1,617 |
March 29, 2020 | |||
(in thousands) | |||
Operating leases | |||
Other assets | $ | 156,972 | |
Accrued expenses and other current liabilities | $ | 40,211 | |
Other long-term liabilities | 122,659 | ||
Total operating lease liabilities | $ | 162,870 | |
Finance Leases | |||
Property and Equipment, net | $ | 18,002 | |
Current portion of long-term debt and lease liabilities | $ | 3,444 | |
Long-term debt and lease liabilities | 11,153 | ||
Total finance lease liabilities | $ | 14,597 |
March 29, 2020 | ||||
Weighted-Average Remaining Lease Term | Weighted-Average Discount Rate | |||
(in years) | ||||
Operating leases | 6.4 | 2.54 | % | |
Finance leases | 4.4 | 2.83 | % |
Fiscal Year | Operating Leases | Finance Leases | |||||
(in thousands) | |||||||
2020 (remaining 3 months) | $ | 9,779 | $ | 1,105 | |||
2021 | 42,028 | 3,567 | |||||
2022 | 26,498 | 6,157 | |||||
2023 | 18,844 | 1,268 | |||||
2024 | 16,371 | 877 | |||||
Thereafter | 62,658 | 2,920 | |||||
Total lease payments | $ | 176,178 | $ | 15,894 | |||
Less imputed interest | (13,308 | ) | (1,297 | ) | |||
Total | $ | 162,870 | $ | 14,597 |
Three Months Ended | Nine Months Ended | ||||||||||||||
March 29, 2020 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||||||
(in thousands) | |||||||||||||||
Balance at beginning of period | $ | 118,193 | $ | 147,755 | $ | 127,932 | $ | 169,407 | |||||||
Warranties issued during the period | 44,898 | 36,494 | 115,798 | 109,287 | |||||||||||
Settlements made during the period | (31,647 | ) | (45,469 | ) | (98,563 | ) | (134,975 | ) | |||||||
Changes in liability for pre-existing warranties | (1,252 | ) | (4,561 | ) | (14,975 | ) | (9,500 | ) | |||||||
Balance at end of period | $ | 130,192 | $ | 134,219 | $ | 130,192 | $ | 134,219 |
Three Months Ended | |||||||||||||||||||||||||||||
September 27, 2020 | September 29, 2019 | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||
Balance at beginning of period | $ | 129,197 | $ | 127,932 | |||||||||||||||||||||||||
Warranties issued during the period | 46,044 | 30,480 | |||||||||||||||||||||||||||
Settlements made during the period | (36,131) | (35,068) | |||||||||||||||||||||||||||
Changes in liability for pre-existing warranties | (2,250) | (8,874) | |||||||||||||||||||||||||||
Balance at end of period | $ | 136,860 | $ | 114,470 |
Period | Total Number of Shares Repurchased | Total Cost of Repurchase | Average Price Paid Per Share (1) | Amount Available Under Repurchase Program | ||||||||||
(in thousands, except per share data) | ||||||||||||||
Available balance as of June 30, 2019 | $ | 3,033,500 | ||||||||||||
Quarter ended September 29, 2019 | 383 | $ | 75,196 | $ | 196.34 | $ | 2,958,304 | |||||||
Quarter ended December 29, 2019 | 3,224 | $ | 1,000,475 | $ | — | $ | 1,957,829 | |||||||
Quarter ended March 29, 2020 | 1,239 | $ | 146,397 | $ | 274.37 | $ | 1,811,432 |
Period | Total Number of Shares Repurchased | Total Cost of Repurchase | Average Price Paid Per Share | Amount Available Under Repurchase Program | |||||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||
Available balance as of June 28, 2020 | $ | 1,773,427 | |||||||||||||||||||||||||||||||||||||||
Quarter ended September 27, 2020 | 1,344 | $ | 461,998 | $ | 343.73 | $ | 1,311,429 | ||||||||||||||||||||||||||||||||||
Accumulated Foreign Currency Translation Adjustment | Accumulated Unrealized Gain or Loss on Cash flow hedges | Accumulated Unrealized Holding Gain or Loss on Available-For-Sale Investments | Accumulated Unrealized Components of Defined Benefit Plans | Total | |||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||
Balance at June 28, 2020 | $ | (45,811) | $ | (32,796) | $ | 4,923 | $ | (20,527) | $ | (94,211) | |||||||||||||||||||||||||||||||||||||||||||
Other comprehensive income (loss) before reclassifications | 12,124 | (350) | (1,400) | (4) | 10,370 | ||||||||||||||||||||||||||||||||||||||||||||||||
Losses reclassified from accumulated other comprehensive loss to net income | 0 | 767 | (1) | 402 | (2) | 0 | 1,169 | ||||||||||||||||||||||||||||||||||||||||||||||
Net current-period other comprehensive income (loss) | 12,124 | 417 | (998) | (4) | 11,539 | ||||||||||||||||||||||||||||||||||||||||||||||||
Balance at September 27, 2020 | $ | (33,687) | $ | (32,379) | $ | 3,925 | $ | (20,531) | $ | (82,672) |
Accumulated Foreign Currency Translation Adjustment | Accumulated Unrealized Gain or Loss on Cash flow hedges | Accumulated Unrealized Holding Gain or Loss on Available-For-Sale Investments | Accumulated Unrealized Components of Defined Benefit Plans | Total | |||||||||||||||
(in thousands) | |||||||||||||||||||
Balance at June 30, 2019 | $ | (39,370 | ) | $ | (4,330 | ) | $ | 2,146 | $ | (22,476 | ) | $ | (64,030 | ) | |||||
Other comprehensive (loss) income before reclassifications | (19,399 | ) | (26,068 | ) | (6,842 | ) | 856 | (51,453 | ) | ||||||||||
(Gains) losses reclassified from accumulated other comprehensive income (loss) to net income | (13 | ) | 1,810 | (1) | 1,010 | (2) | — | 2,807 | |||||||||||
Net current-period other comprehensive (loss) income | (19,412 | ) | (24,258 | ) | (5,832 | ) | 856 | (48,646 | ) | ||||||||||
Balance at March 29, 2020 | $ | (58,782 | ) | $ | (28,588 | ) | $ | (3,686 | ) | $ | (21,620 | ) | $ | (112,676 | ) |
Three Months Ended | |||||||||||||||||||||||||||||
September 27, 2020 | June 28, 2020 | September 29, 2019 | |||||||||||||||||||||||||||
(in thousands, except per share data and percentages) | |||||||||||||||||||||||||||||
Revenue | $ | 3,177,080 | $ | 2,791,864 | $ | 2,165,746 | |||||||||||||||||||||||
Gross margin | $ | 1,506,179 | $ | 1,280,332 | $ | 981,710 | |||||||||||||||||||||||
Gross margin as a percent of total revenue | 47.4 | % | 45.9 | % | 45.3 | % | |||||||||||||||||||||||
Total operating expenses | $ | 545,115 | $ | 524,610 | $ | 444,255 | |||||||||||||||||||||||
Net income | $ | 823,451 | $ | 696,673 | $ | 465,789 | |||||||||||||||||||||||
Diluted net income per share | $ | 5.59 | $ | 4.73 | $ | 3.09 |
Three Months Ended | |||||||||||
March 29, 2020 | December 29, 2019 | March 31, 2019 | |||||||||
(in thousands, except per share data and percentages) | |||||||||||
Revenue | $ | 2,503,625 | $ | 2,583,501 | $ | 2,439,048 | |||||
Gross margin | $ | 1,167,007 | $ | 1,179,644 | $ | 1,074,337 | |||||
Gross margin as a percent of total revenue | 46.6 | % | 45.7 | % | 44.0 | % | |||||
Total operating expenses | $ | 472,893 | $ | 493,133 | $ | 508,820 | |||||
Net income | $ | 574,781 | $ | 514,510 | $ | 547,390 | |||||
Diluted net income per share | $ | 3.88 | $ | 3.43 | $ | 3.47 |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
September 27, 2020 | June 28, 2020 | September 29, 2019 | |||||||||||||||||||||||||||||||||||||||
Revenue (in millions) | $ | 3,177 | $ | 2,792 | $ | 2,166 | |||||||||||||||||||||||||||||||||||
China | 37 | % | 34 | % | 27 | % | |||||||||||||||||||||||||||||||||||
Korea | 24 | % | 32 | % | 21 | % | |||||||||||||||||||||||||||||||||||
Taiwan | 14 | % | 11 | % | 18 | % | |||||||||||||||||||||||||||||||||||
Japan | 12 | % | 8 | % | 13 | % | |||||||||||||||||||||||||||||||||||
Southeast Asia | 7 | % | 5 | % | 10 | % | |||||||||||||||||||||||||||||||||||
United States | 4 | % | 7 | % | 8 | % | |||||||||||||||||||||||||||||||||||
Europe | 2 | % | 3 | % | 3 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
March 29, 2020 | December 29, 2019 | March 31, 2019 | March 29, 2020 | March 31, 2019 | |||||||||||||||
Revenue (in millions) | $ | 2,504 | $ | 2,584 | $ | 2,439 | $ | 7,253 | $ | 7,292 | |||||||||
China | 32 | % | 29 | % | 17 | % | 29 | % | 19 | % | |||||||||
Korea | 23 | % | 18 | % | 25 | % | 21 | % | 22 | % | |||||||||
Taiwan | 21 | % | 26 | % | 23 | % | 22 | % | 17 | % | |||||||||
Japan | 10 | % | 8 | % | 17 | % | 10 | % | 24 | % | |||||||||
United States | 9 | % | 9 | % | 9 | % | 9 | % | 7 | % | |||||||||
Europe | 3 | % | 3 | % | 4 | % | 3 | % | 4 | % | |||||||||
Southeast Asia | 2 | % | 7 | % | 5 | % | 6 | % | 7 | % |
Three Months Ended | Nine Months Ended | Three Months Ended | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
March 29, 2020 | December 29, 2019 | March 31, 2019 | March 29, 2020 | March 31, 2019 | September 27, 2020 | June 28, 2020 | September 29, 2019 | |||||||||||||||||||||||||||||||||||||||||||||||||||||
(In thousands) | (In thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
System revenue | $ | 1,647,560 | $ | 1,747,093 | $ | 1,612,382 | $ | 4,759,881 | $ | 4,880,731 | System revenue | $ | 2,148,241 | $ | 1,865,249 | $ | 1,365,228 | |||||||||||||||||||||||||||||||||||||||||||
Customer support-related revenue and other | 856,065 | 836,408 | 826,666 | 2,492,991 | 2,411,681 | Customer support-related revenue and other | 1,028,839 | 926,615 | 800,518 | |||||||||||||||||||||||||||||||||||||||||||||||||||
$ | 2,503,625 | $ | 2,583,501 | $ | 2,439,048 | $ | 7,252,872 | $ | 7,292,412 | $ | 3,177,080 | $ | 2,791,864 | $ | 2,165,746 |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
September 27, 2020 | June 28, 2020 | September 29, 2019 | |||||||||||||||||||||||||||||||||||||||
Memory | 58 | % | 61 | % | 64 | % | |||||||||||||||||||||||||||||||||||
Foundry | 36 | % | 29 | % | 25 | % | |||||||||||||||||||||||||||||||||||
Logic/integrated device manufacturing | 6 | % | 10 | % | 11 | % |
Three Months Ended | Nine Months Ended | |||||||||||||
March 29, 2020 | December 29, 2019 | March 31, 2019 | March 29, 2020 | March 31, 2019 | ||||||||||
Memory | 56 | % | 52 | % | 61 | % | 57 | % | 72 | % | ||||
Foundry | 31 | % | 36 | % | 27 | % | 31 | % | 19 | % | ||||
Logic/integrated device manufacturing | 13 | % | 12 | % | 12 | % | 12 | % | 9 | % |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
September 27, 2020 | June 28, 2020 | September 29, 2019 | |||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||
Gross margin | $ | 1,506,179 | $ | 1,280,332 | $ | 981,710 | |||||||||||||||||||||||||||||||||||
Percent of revenue | 47.4 | % | 45.9 | % | 45.3 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
March 29, 2020 | December 29, 2019 | March 31, 2019 | March 29, 2020 | March 31, 2019 | |||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||
Gross margin | $ | 1,167,007 | $ | 1,179,644 | $ | 1,074,337 | $ | 3,328,361 | $ | 3,277,568 | |||||||||
Percent of revenue | 46.6 | % | 45.7 | % | 44.0 | % | 45.9 | % | 44.9 | % |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
September 27, 2020 | June 28, 2020 | September 29, 2019 | |||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||
Research & development (“R&D”) | $ | 355,367 | $ | 338,810 | $ | 286,827 | |||||||||||||||||||||||||||||||||||
Percent of revenue | 11.2 | % | 12.1 | % | 13.2 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
March 29, 2020 | December 29, 2019 | March 31, 2019 | March 29, 2020 | March 31, 2019 | |||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||
Research & development (“R&D”) | $ | 307,914 | $ | 318,861 | $ | 318,514 | $ | 913,602 | $ | 895,742 | |||||||||
Percent of revenue | 12.3 | % | 12.3 | % | 13.1 | % | 12.6 | % | 12.3 | % |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
September 27, 2020 | June 28, 2020 | September 29, 2019 | |||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||
Selling, general, and administrative (“SG&A”) | $ | 189,748 | $ | 185,800 | $ | 157,428 | |||||||||||||||||||||||||||||||||||
Percent of revenue | 6.0 | % | 6.7 | % | 7.3 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
March 29, 2020 | December 29, 2019 | March 31, 2019 | March 29, 2020 | March 31, 2019 | |||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||
Selling, general, and administrative (“SG&A”) | $ | 164,979 | $ | 174,272 | $ | 190,306 | $ | 496,679 | $ | 534,179 | |||||||||
Percent of revenue | 6.6 | % | 6.7 | % | 7.8 | % | 6.8 | % | 7.3 | % |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
September 27, 2020 | June 28, 2020 | September 29, 2019 | |||||||||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||||||||||
Interest income | $ | 6,959 | $ | 9,339 | $ | 31,784 | |||||||||||||||||||||||||||||||||||
Interest expense | (52,115) | (49,250) | (43,995) | ||||||||||||||||||||||||||||||||||||||
Gains (losses) on deferred compensation plan-related assets, net | 12,927 | 26,134 | (436) | ||||||||||||||||||||||||||||||||||||||
Foreign exchange losses, net | (1,375) | (981) | (529) | ||||||||||||||||||||||||||||||||||||||
Other, net | (5,188) | 7,205 | 448 | ||||||||||||||||||||||||||||||||||||||
$ | (38,792) | $ | (7,553) | $ | (12,728) |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
March 29, 2020 | December 29, 2019 | March 31, 2019 | March 29, 2020 | March 31, 2019 | |||||||||||||||
(in thousands) | |||||||||||||||||||
Interest income | $ | 18,856 | $ | 25,454 | $ | 26,966 | $ | 76,094 | $ | 63,709 | |||||||||
Interest expense | (41,580 | ) | (42,615 | ) | (30,263 | ) | (128,190 | ) | (71,835 | ) | |||||||||
(Losses) gains on deferred compensation plan-related assets, net | (33,828 | ) | 14,129 | 21,395 | (20,135 | ) | 4,235 | ||||||||||||
Foreign exchange gains (losses), net | 480 | (2,287 | ) | 720 | (2,336 | ) | 3,352 | ||||||||||||
Other, net | (8,547 | ) | (8,605 | ) | 1,714 | (16,704 | ) | (9,955 | ) | ||||||||||
$ | (64,619 | ) | $ | (13,924 | ) | $ | 20,532 | $ | (91,271 | ) | $ | (10,494 | ) |
Three Months Ended | |||||||||||||||||||||||||||||||||||||||||
September 27, 2020 | June 28, 2020 | September 29, 2019 | |||||||||||||||||||||||||||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||||||||||||||||||||||||
Income tax expense | $ | 98,821 | $ | 51,496 | $ | 58,938 | |||||||||||||||||||||||||||||||||||
Effective tax rate | 10.7 | % | 6.9 | % | 11.2 | % |
Three Months Ended | Nine Months Ended | ||||||||||||||||||
March 29, 2020 | December 29, 2019 | March 31, 2019 | March 29, 2020 | March 31, 2019 | |||||||||||||||
(in thousands, except percentages) | |||||||||||||||||||
Income tax expense | $ | 54,714 | $ | 158,077 | $ | 38,659 | $ | 271,729 | $ | 187,548 | |||||||||
Effective tax rate | 8.7 | % | 23.5 | % | 6.6 | % | 14.9 | % | 10.2 | % |
the recognition and measurement of current and deferred income taxes, including the measurement of uncertain tax positions, which impact our provision for income tax expenses; and |
Net income | $ | 823,451 | |||
Non-cash charges: | |||||
Depreciation and amortization | 72,912 | ||||
Equity-based compensation expense | 55,988 | ||||
Deferred income taxes | (1,850) | ||||
Amortization of note discounts and issuance costs | 1,422 | ||||
Changes in operating asset and liability accounts | (312,329) | ||||
Other | 2,917 | ||||
$ | 642,511 |
Net income | $ | 1,555.1 | |
Non-cash charges: | |||
Depreciation and amortization | 197.4 | ||
Equity-based compensation expense | 136.0 | ||
Deferred income taxes | 74.5 | ||
Amortization of note discounts and issuance costs | 4.6 | ||
Changes in operating asset and liability accounts | (665.8 | ) | |
Other | 11.6 | ||
$ | 1,313.4 |
ITEM 3. Quantitative and Qualitative Disclosures about Market Risk |
Valuation of Securities Given an Interest Rate Decrease of X Basis Points | Fair Value as of March 29, 2020 | Valuation of Securities Given an Interest Rate Increase of X Basis Points | Valuation of Securities Given an Interest Rate Decrease of X Basis Points | Fair Value as of September 27, 2020 | Valuation of Securities Given an Interest Rate Increase of X Basis Points | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(150 BPS) | (100 BPS) | (50 BPS) | 0.00% | 50 BPS | 100 BPS | 150 BPS | (150 BPS) | (100 BPS) | (50 BPS) | 0.00% | 50 BPS | 100 BPS | 150 BPS | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
U.S. Treasury and agencies | $ | 430,886 | $ | 430,886 | $ | 430,886 | $ | 430,707 | $ | 430,291 | $ | 429,875 | $ | 429,460 | U.S. Treasury and agencies | $ | 770,789 | $ | 770,789 | $ | 770,789 | $ | 770,447 | $ | 768,933 | $ | 767,419 | $ | 765,905 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Government-sponsored enterprises | 2,014 | 2,014 | 2,014 | 2,012 | 2,012 | 2,011 | 2,010 | Government-sponsored enterprises | 3,528 | 3,528 | 3,528 | 3,512 | 3,471 | 3,430 | 3,389 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Foreign government bonds | 32,311 | 32,299 | 32,271 | 32,231 | 32,191 | 32,151 | 32,111 | Foreign government bonds | 60,342 | 60,341 | 60,339 | 60,161 | 59,894 | 59,628 | 59,362 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Corporate notes and bonds | 1,000,760 | 998,299 | 995,655 | 992,969 | 990,276 | 987,583 | 984,890 | Corporate notes and bonds | 1,929,676 | 1,929,620 | 1,928,863 | 1,923,558 | 1,916,751 | 1,909,941 | 1,903,129 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage backed securities - residential | 3,813 | 3,771 | 3,728 | 3,687 | 3,644 | 3,602 | 3,560 | Mortgage backed securities - residential | 7,924 | 7,890 | 7,855 | 7,806 | 7,757 | 7,707 | 7,657 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Mortgage backed securities - commercial | 19,248 | 19,214 | 19,146 | 19,077 | 19,009 | 18,940 | 18,872 | Mortgage backed securities - commercial | 21,465 | 21,435 | 21,398 | 21,354 | 21,311 | 21,267 | 21,224 | |||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
Total | $ | 1,489,032 | $ | 1,486,483 | $ | 1,483,700 | $ | 1,480,683 | $ | 1,477,423 | $ | 1,474,162 | $ | 1,470,903 | Total | $ | 2,793,724 | $ | 2,793,603 | $ | 2,792,772 | $ | 2,786,838 | $ | 2,778,117 | $ | 2,769,392 | $ | 2,760,666 |
ITEM 1. Legal Proceedings |
economic conditions in the electronics and semiconductor industries in general and specifically the semiconductor equipment industry; |
ITEM 2. Unregistered Sales of Equity Securities and Use of Proceeds |
Total Number of Shares Repurchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Amount Available Under Repurchase Program | ||||||||||||||||||||||||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||||||||||||||||||||||||||
Available balance as of June 28, 2020 | $ | 1,773,427 | |||||||||||||||||||||||||||||||||||||||
June 29, 2020 - July 26, 2020 | 4 | $ | 339.86 | — | 1,773,427 | ||||||||||||||||||||||||||||||||||||
July 27, 2020 - August 23, 2020 | 487 | $ | 372.37 | 483 | 1,593,430 | ||||||||||||||||||||||||||||||||||||
August 24, 2020 - September 27, 2020 | 868 | $ | 327.63 | 861 | 1,311,429 | ||||||||||||||||||||||||||||||||||||
Quarter ended September 27, 2020 | 1,359 | $ | 343.71 | 1,344 | $ | 1,311,429 |
Total Number of Shares Repurchased (1) | Average Price Paid Per Share (2) | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs | Amount Available Under Repurchase Program | ||||||||||
(in thousands, except per share data) | |||||||||||||
Available balance as of June 30, 2019 | $ | 3,033,500 | |||||||||||
Quarter ended September 29, 2019 | 397 | $ | 196.83 | 383 | 2,958,304 | ||||||||
Quarter ended December 29, 2019 | 3,242 | $ | 265.88 | 3,224 | 1,957,829 | ||||||||
December 30, 2019 - January 26, 2020 | 2 | $ | 300.54 | — | 1,957,829 | ||||||||
January 27, 2020 - February 23, 2020 | 5 | $ | 327.78 | — | 1,957,829 | ||||||||
February 24, 2020 - March 29, 2020 | 1,568 | $ | 281.60 | 1,239 | 1,811,432 | ||||||||
Quarter ended March 29, 2020 | 1,575 | $ | 281.93 | 1,239 | $ | 1,811,432 |
Number |
Number | |||||
31.2 | |||||
32.1 | |||||
32.2 | |||||
101.INS | Inline XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document. | ||||
101.SCH | Inline XBRL Taxonomy Extension Schema Document | ||||
101.CAL | Inline XBRL Taxonomy Extension Calculation Linkbase Document | ||||
101.DEF | Inline XBRL Taxonomy Extension Definition Linkbase Document | ||||
101.LAB | Inline XBRL Taxonomy Extension Label Linkbase Document | ||||
101.PRE | Inline XBRL Taxonomy Extension Presentation Linkbase Document | ||||
104 | Cover Page Interactive Data File | ||||
*Indicates management contract or compensatory plan or arrangement. | |||||
Date: | October 27, 2020 | LAM RESEARCH CORPORATION (Registrant) | ||||||||||||||||||
/s/ Douglas R. Bettinger | ||||||||||||||||||||
Douglas R. Bettinger | ||||||||||||||||||||
Executive Vice President, Chief Financial Officer (Principal Financial Officer and Principal Accounting Officer) |