Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 24, 2018 | Aug. 09, 2018 | Dec. 24, 2017 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 24, 2018 | ||
Document Fiscal Year Focus | 2,018 | ||
Document Fiscal Period Focus | FY | ||
Trading Symbol | LRCX | ||
Entity Registrant Name | LAM RESEARCH CORP | ||
Entity Central Index Key | 707,549 | ||
Current Fiscal Year End Date | --06-24 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 157,579,984 | ||
Entity Public Float | $ 24,908,278,746 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Income Statement [Abstract] | |||
Revenue | $ 11,076,998 | $ 8,013,620 | $ 5,885,893 |
Cost of goods sold | 5,911,966 | 4,410,261 | 3,266,971 |
Gross margin | 5,165,032 | 3,603,359 | 2,618,922 |
Research and development | 1,189,514 | 1,033,742 | 913,712 |
Selling, general, and administrative | 762,219 | 667,485 | 630,954 |
Total operating expenses | 1,951,733 | 1,701,227 | 1,544,666 |
Operating income | 3,213,299 | 1,902,132 | 1,074,256 |
Other expense, net | (61,510) | (90,459) | (114,139) |
Income before income taxes | 3,151,789 | 1,811,673 | 960,117 |
Income tax expense | (771,108) | (113,910) | (46,068) |
Net income | $ 2,380,681 | $ 1,697,763 | $ 914,049 |
Net income per share: | |||
Basic (usd per share) | $ 14.73 | $ 10.47 | $ 5.75 |
Diluted (usd per share) | $ 13.17 | $ 9.24 | $ 5.22 |
Number of shares used in per share calculations: | |||
Basic (shares) | 161,643 | 162,222 | 158,919 |
Diluted (shares) | 180,782 | 183,770 | 175,159 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,380,681 | $ 1,697,763 | $ 914,049 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 9,649 | (2,843) | (4,403) |
Cash flow hedges: | |||
Net unrealized (losses) gains during the period | (6,960) | 5,841 | (17,725) |
Net losses reclassified into earnings | 3,729 | 8,971 | 4,961 |
Net change | (3,231) | 14,812 | (12,764) |
Available-for-sale investments: | |||
Net unrealized (losses) gains during the period | (45,382) | (3,789) | 9,028 |
Net losses (gains) reclassified into earnings | 43,086 | (1) | (371) |
Net change | (2,296) | (3,790) | 8,657 |
Defined benefit plans, net change in unrealized component | 129 | (546) | (3,027) |
Other comprehensive income (loss), net of tax | 4,251 | 7,633 | (11,537) |
Comprehensive income | $ 2,384,932 | $ 1,705,396 | $ 902,512 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
ASSETS: | ||
Cash and cash equivalents | $ 4,512,257 | $ 2,377,534 |
Investments | 437,338 | 3,663,628 |
Accounts receivable, less allowance for doubtful accounts of $5,343 as of June 24, 2018 and $5,103 as of June 25, 2017 | 2,176,936 | 1,673,398 |
Inventories | 1,876,162 | 1,232,916 |
Prepaid expenses and other current assets | 147,218 | 195,022 |
Total current assets | 9,149,911 | 9,142,498 |
Property and equipment, net | 902,547 | 685,595 |
Restricted cash and investments | 256,301 | 256,205 |
Goodwill | 1,484,904 | 1,385,673 |
Intangible assets, net | 317,836 | 410,995 |
Other assets | 367,979 | 241,799 |
Total assets | 12,479,478 | 12,122,765 |
LIABILITIES AND STOCKHOLDERS’ EQUITY: | ||
Trade accounts payable | 510,983 | 464,643 |
Accrued expenses and other current liabilities | 1,309,209 | 969,361 |
Deferred profit | 720,086 | 607,672 |
Commercial paper and current portion of convertible notes and capital leases | 610,030 | 908,439 |
Total current liabilities | 3,150,308 | 2,950,115 |
Senior notes, convertible notes, and capital leases, less current portion | 1,806,562 | 1,784,974 |
Income taxes payable | 851,936 | 120,178 |
Other long-term liabilities | 90,629 | 280,186 |
Total liabilities | 5,899,435 | 5,135,453 |
Commitments and contingencies | ||
Temporary equity, convertible notes | 78,192 | 169,861 |
Stockholders’ equity: | ||
Preferred stock, at par value of $0.001 per share; authorized - 5,000 shares, none outstanding | 0 | 0 |
Common stock, at par value of $0.001 per share; authorized - 400,000 shares; issued and outstanding 156,892 shares at June 24, 2018, and 161,723 shares at June 25, 2017 | 157 | 162 |
Additional paid-in capital | 6,144,425 | 5,845,485 |
Treasury stock, at cost, 119,679 shares at June 24, 2018, and 105,569 shares at June 25, 2017 | (7,846,476) | (5,216,187) |
Accumulated other comprehensive loss | (57,449) | (61,700) |
Retained earnings | 8,261,194 | 6,249,691 |
Total stockholders’ equity | 6,501,851 | 6,817,451 |
Total liabilities and stockholders’ equity | $ 12,479,478 | $ 12,122,765 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5,343 | $ 5,103 |
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 400,000,000 | 400,000,000 |
Common stock, shares issued | 156,892,000 | 161,723,000 |
Common stock, shares outstanding | 156,892,000 | 161,723,000 |
Treasury stock, shares | 119,679,000 | 105,569,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 2,380,681,000 | $ 1,697,763,000 | $ 914,049,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 326,395,000 | 306,905,000 | 291,028,000 |
Deferred income taxes | 3,046,000 | 104,936,000 | (49,003,000) |
Equity-based compensation expense | 172,216,000 | 149,975,000 | 142,348,000 |
Income tax benefit (expense) on equity-based compensation plans | 0 | 38,747,000 | (1,023,000) |
Excess tax (benefits) expense on equity-based compensation plans | 0 | (38,635,000) | 1,020,000 |
Impairment of investments | 42,456,000 | 0 | 0 |
(Gains) losses on extinguishment of debt, net | (542,000) | 36,252,000 | 0 |
Amortization of note discounts and issuance costs | 14,428,000 | 25,282,000 | 70,522,000 |
Gain on sale of assets | 0 | (163,000) | (15,223,000) |
Other, net | 34,260,000 | 19,052,000 | 48,788,000 |
Changes in operating asset and liability accounts: | |||
Accounts receivable, net of allowance | (501,628,000) | (411,287,000) | (169,034,000) |
Inventories | (701,008,000) | (307,875,000) | (66,371,000) |
Prepaid expenses and other assets | (14,391,000) | (27,269,000) | (46,664,000) |
Trade accounts payable | 35,655,000 | 126,819,000 | 41,645,000 |
Deferred profit | 112,413,000 | 258,473,000 | 27,129,000 |
Accrued expenses and other liabilities | 751,766,000 | 50,307,000 | 161,066,000 |
Net cash provided by operating activities | 2,655,747,000 | 2,029,282,000 | 1,350,277,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures and intangible assets | (273,469,000) | (157,419,000) | (175,330,000) |
Business acquisition, net of cash acquired | (115,697,000) | 0 | 0 |
Purchases of available-for-sale securities | (2,532,829,000) | (4,581,851,000) | (874,998,000) |
Proceeds from maturities of available-for-sale securities | 650,255,000 | 891,002,000 | 642,505,000 |
Proceeds from sales of available-for-sale securities | 5,035,460,000 | 1,806,963,000 | 1,031,321,000 |
Proceeds from sale of assets | 0 | 1,291,000 | 79,730,000 |
Transfer of restricted cash and investments | (96,000) | (5,784,000) | (112,381,000) |
Other, net | (15,184,000) | (12,815,000) | 1,636,000 |
Net cash provided by (used for) investing activities | 2,748,440,000 | (2,058,613,000) | 592,483,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Principal payments on long-term debt and capital lease obligations and payments for debt issuance costs | (755,694,000) | (1,688,313,000) | (451,497,000) |
Net proceeds from issuance of long-term debt | 0 | 0 | 2,338,144,000 |
Net proceeds from issuance of commercial paper | 359,604,000 | 0 | 0 |
Proceeds from borrowings on revolving credit facility | 750,000,000 | 0 | 0 |
Repayment of borrowings on revolving credit facility | (750,000,000) | 0 | 0 |
Excess tax benefits (expense) on equity-based compensation plans | 0 | 38,635,000 | (1,020,000) |
Treasury stock purchases | (2,653,249,000) | (811,672,000) | (158,389,000) |
Dividends paid | (307,609,000) | (243,495,000) | (190,402,000) |
Reissuances of treasury stock related to employee stock purchase plan | 75,624,000 | 59,663,000 | 55,992,000 |
Proceeds from issuance of common stock | 9,258,000 | 12,913,000 | 3,405,000 |
Other, net | 9,000 | (125,000) | (488,000) |
Net cash (used for) provided by financing activities | (3,272,057,000) | (2,632,394,000) | 1,595,745,000 |
Effect of exchange rate changes on cash and cash equivalents | 2,593,000 | (63,000) | (722,000) |
Net increase (decrease) in cash and cash equivalents | 2,134,723,000 | (2,661,788,000) | 3,537,783,000 |
Cash and cash equivalents at beginning of year | 2,377,534,000 | 5,039,322,000 | 1,501,539,000 |
Cash and cash equivalents at end of year | 4,512,257,000 | 2,377,534,000 | 5,039,322,000 |
Schedule of non-cash transactions | |||
Accrued payables for stock repurchases | 116,000 | 0 | 0 |
Accrued payables for capital expenditures | 24,001,000 | 17,285,000 | 27,953,000 |
Dividends payable | 174,372,000 | 72,738,000 | 48,052,000 |
Transfers of finished goods inventory to property and equipment, net | 57,886,000 | 46,855,000 | 37,822,000 |
Supplemental disclosures: | |||
Cash payments for interest | 84,401,000 | 104,619,000 | 58,810,000 |
Cash payments for income taxes, net | $ 142,800,000 | $ 28,104,000 | $ 39,745,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income(Loss) | Retained Earnings |
Beginning balance (shares) at Jun. 28, 2015 | 158,531 | |||||
Beginning balance at Jun. 28, 2015 | $ 5,103,144 | $ 159 | $ 5,366,773 | $ (4,302,847) | $ (57,796) | $ 4,096,855 |
Increase (Decrease) in Stockholders' Equity | ||||||
Sale of common stock (shares) | 2,863 | |||||
Sale of common stock | 3,405 | $ 2 | 3,403 | |||
Purchase of treasury stock (shares) | (2,130) | |||||
Purchase of treasury stock | (155,134) | $ (2) | (155,132) | |||
Income tax benefits on equity-based compensation plans | (1,023) | (1,023) | ||||
Reissuance of treasury stock (shares) | 937 | |||||
Reissuance of treasury stock | 55,992 | $ 1 | 27,329 | 28,662 | ||
Equity-based compensation expense | 142,348 | 142,348 | ||||
Effect of conversion of convertible notes | (188) | (188) | ||||
Reclassification from temporary to permanent equity | 34,256 | 34,256 | ||||
Net income | 914,049 | 914,049 | ||||
Other comprehensive income | (11,537) | (11,537) | ||||
Cash dividends declared | (190,795) | (190,795) | ||||
Ending balance (shares) at Jun. 26, 2016 | 160,201 | |||||
Ending balance at Jun. 26, 2016 | 5,894,517 | $ 160 | 5,572,898 | (4,429,317) | (69,333) | 4,820,109 |
Increase (Decrease) in Stockholders' Equity | ||||||
Sale of common stock (shares) | 2,661 | |||||
Sale of common stock | 12,913 | $ 3 | 12,910 | |||
Purchase of treasury stock (shares) | (5,322) | |||||
Purchase of treasury stock | (811,672) | $ (5) | (811,667) | |||
Income tax benefits on equity-based compensation plans | 38,747 | 38,747 | ||||
Reissuance of treasury stock (shares) | 825 | |||||
Reissuance of treasury stock | 59,663 | $ 1 | 34,865 | 24,797 | ||
Equity-based compensation expense | 149,975 | 149,975 | ||||
Effect of conversion of convertible notes (shares) | 1,388 | |||||
Effect of conversion of convertible notes | (1,595) | $ 1 | (1,596) | |||
Exercise of warrants (shares) | 1,970 | |||||
Exercise of warrants | (3) | $ 2 | (5) | |||
Reclassification from temporary to permanent equity | 37,691 | 37,691 | ||||
Net income | 1,697,763 | 1,697,763 | ||||
Other comprehensive income | 7,633 | 7,633 | ||||
Cash dividends declared | (268,181) | (268,181) | ||||
Ending balance (shares) at Jun. 25, 2017 | 161,723 | |||||
Ending balance at Jun. 25, 2017 | 6,817,451 | $ 162 | 5,845,485 | (5,216,187) | (61,700) | 6,249,691 |
Increase (Decrease) in Stockholders' Equity | ||||||
Adoption of ASU 2016-09 | $ 40,065 | 40,065 | ||||
Purchase of treasury stock (shares) | (1,779) | |||||
Beginning balance (shares) at Jun. 25, 2017 | 161,723 | |||||
Beginning balance at Jun. 25, 2017 | $ 6,817,451 | $ 162 | 5,845,485 | (5,216,187) | (61,700) | 6,249,691 |
Increase (Decrease) in Stockholders' Equity | ||||||
Sale of common stock (shares) | 1,934 | |||||
Sale of common stock | 9,258 | $ 2 | 9,256 | |||
Purchase of treasury stock (shares) | (14,786) | |||||
Purchase of treasury stock | (2,653,365) | $ (15) | (2,653,350) | |||
Reissuance of treasury stock (shares) | 677 | |||||
Reissuance of treasury stock | 75,624 | $ 1 | 52,562 | 23,061 | ||
Equity-based compensation expense | 172,216 | 172,216 | ||||
Effect of conversion of convertible notes (shares) | 10,199 | |||||
Effect of conversion of convertible notes | (26,766) | $ 10 | (26,776) | |||
Effect of bond hedge, cash in lieu of shares (shares) | (2,855) | |||||
Effect of bond hedge, cash in lieu of shares | 10 | $ (3) | 13 | |||
Reclassification from temporary to permanent equity | 91,669 | 91,669 | ||||
Net income | 2,380,681 | 2,380,681 | ||||
Other comprehensive income | 4,251 | 4,251 | ||||
Cash dividends declared | (409,243) | (409,243) | ||||
Ending balance (shares) at Jun. 24, 2018 | 156,892 | |||||
Ending balance at Jun. 24, 2018 | $ 6,501,851 | $ 157 | $ 6,144,425 | $ (7,846,476) | $ (57,449) | $ 8,261,194 |
Consolidated Statements of Sto8
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (usd per share) | $ 2.55 | $ 1.65 | $ 1.2 |
Company and Industry Informatio
Company and Industry Information | 12 Months Ended |
Jun. 24, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company and Industry Information | Company and Industry Information The Company designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. Semiconductor manufacturing, our customers’ business, involves the complete fabrication of multiple dies or integrated circuits on a wafer. This involves the repetition of a set of core processes and can require hundreds of individual steps. Fabricating these devices requires highly sophisticated process technologies to integrate an increasing array of new materials with precise control at the atomic scale. Along with meeting technical requirements, wafer processing equipment must deliver high productivity and be cost-effective. The Company sells its products and services primarily to companies involved in the production of semiconductors in the United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan. The semiconductor industry is cyclical in nature and has historically experienced periodic downturns and upturns. Today’s leading indicators of changes in customer investment patterns, such as electronics demand, memory pricing, and foundry utilization rates, may not be any more reliable than in prior years. Demand for the Company’s equipment can vary significantly from period to period as a result of various factors including, but not limited to economic conditions; supply, demand, and prices for semiconductors; customer capacity requirements; and the Company’s ability to develop and market competitive products. For these and other reasons, the Company’s results of operations for fiscal years 2018 , 2017 , and 2016 may not necessarily be indicative of future operating results. Reclassification: Certain amounts for the fiscal years 2017 and 2016 Consolidated Statement of Cash Flows, and certain amounts within the 2017 footnotes have been reclassified to conform to the fiscal year 2018 presentation. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 24, 2018 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates, and assumptions that could affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience and on various other assumptions it believes to be applicable and evaluates them on an ongoing basis to ensure they remain reasonable under current conditions. Actual results could differ significantly from those estimates. Revenue Recognition: The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title has passed or services have been rendered, the selling price is fixed or determinable, collection of the receivable is reasonably assured, and the Company has received customer acceptance or is otherwise released from its customer acceptance obligations. If terms of the sale provide for a lapsing customer acceptance period, the Company recognizes revenue upon the expiration of the lapsing acceptance period or customer acceptance, whichever occurs first. If the practices of a customer do not provide for a written acceptance or the terms of sale do not include a lapsing acceptance provision, the Company recognizes revenue when it can be reliably demonstrated that the delivered system meets all of the agreed-to customer specifications. In situations with multiple deliverables, the Company recognizes revenue upon the delivery of the separate elements to the customer and when the Company receives customer acceptance or is otherwise released from its customer acceptance obligations. The Company allocates revenue from multiple-element arrangements among the separate elements using their relative selling prices based on the Company’s best estimate of selling price. The Company’s sales arrangements do not include a general right of return. The maximum revenue recognized on a delivered element is limited to the amount that is not contingent upon the delivery of additional items. The Company generally recognizes revenue related to sales of spare parts and system upgrade kits upon shipment. The Company generally recognizes revenue related to services upon completion of the services requested by a customer order. The Company recognizes revenue for extended maintenance service contracts with a fixed payment amount on a straight-line basis over the term of the contract. When goods or services have been delivered to the customer but all conditions for revenue recognition have not been met, deferred revenue and deferred costs are recognized in deferred profit on the Consolidated Balance Sheet. Inventory Valuation: Inventories are stated at the lower of cost or net realizable value using standard costs that approximate actual costs on a first-in, first-out basis. Finished goods are reported as inventories until the point of title transfer to the customer. Unless specified in the terms of sale, title generally transfers at the physical transfer of the products to the freight carriers. Transfer of title for shipments to Japanese customers occurs at the time of customer acceptance. Management evaluates the need to record adjustments for impairment of inventory at least quarterly. The Company’s policy is to assess the valuation of all inventories including manufacturing raw materials, work-in-process, finished goods, and spare parts in each reporting period. Obsolete inventory or inventory in excess of management’s estimated usage requirement is written down to its estimated market value if less than cost. Estimates of market value include but are not limited to management’s forecasts related to the Company’s future manufacturing schedules, customer demand, technological and/or market obsolescence, general semiconductor market conditions, and possible alternative uses. If future customer demand or market conditions are less favorable than the Company’s projections, additional inventory write-downs may be required and would be reflected in cost of goods sold in the period in which the revision is made. Warranty: Typically, the sale of semiconductor capital equipment includes providing parts and service warranties to customers as part of the overall price of the system. The Company provides standard warranties for its systems. The Company records a provision for estimated warranty expenses to cost of sales for each system when it recognizes revenue. The Company does not maintain general or unspecified reserves; all warranty reserves are related to specific systems. All actual or estimated parts and labor costs incurred in subsequent periods are charged to those established reserves on a system-by-system basis. While the Company periodically monitors the performance and cost of warranty activities, if actual costs incurred are different than its estimates, the Company may recognize adjustments to provisions in the period in which those differences arise or are identified. In addition to the provision of standard warranties, the Company offers customer-paid extended warranty services. Revenues for extended maintenance and warranty services with a fixed payment amount are recognized on a straight-line basis over the term of the contract. Related costs are recorded as incurred. Equity-based Compensation — Employee Stock Plans: The Company recognizes the fair value of equity-based compensation expense. The Company determines the fair value of its RSUs, excluding market-based performance RSUs, based upon the fair market value of Company’s Common Stock at the date of grant, discounted for dividends. The Company estimates the fair value of its market-based performance RSUs using a Monte Carlo simulation model at the date of the grant. The Company estimates the fair value of its stock options using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award. The Company amortizes the fair value of equity-based awards over the vesting periods of the award, and the Company has elected to use the straight-line method of amortization. Income Taxes: Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. Realization of its net deferred tax assets is dependent on future taxable income. The Company believes it is more likely than not that such assets will be realized; however, ultimate realization could be negatively impacted by market conditions and other variables not known or anticipated at this time. In the event that the Company determined that it will not be able to realize all or part of its net deferred tax assets, an adjustment will be charged to earnings in the period such determination was made. Likewise, if the Company later determines that it is more likely than not that the deferred tax assets will be realized, then the previously provided valuation allowance will be reversed. The Company recognizes the benefit from a tax position only if it is more likely than not that the position will be sustained upon audit based solely on the technical merits of the tax position. The Company’s policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. Goodwill and Intangible Assets: The valuation of intangible assets acquired in a business combination requires the use of management estimates including but not limited to estimating future expected cash flows from assets acquired and determining discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. Estimates associated with the accounting for acquisitions may change as additional information becomes available. Goodwill represents the amount by which the purchase price in each business combination exceeds the fair value of the net tangible and identifiable intangible assets acquired. Each component of the Company for which discrete financial information is available and for which management regularly reviews the results of operations is considered a reporting unit. All goodwill acquired in a business combination is assigned to one or more reporting units as of the acquisition date. Goodwill is assigned to the Company’s reporting units that are expected to benefit from the synergies of the combination. The goodwill assigned to a reporting unit is the difference between the acquisition consideration assigned to the reporting unit on a relative fair value basis and the fair value of acquired assets and liabilities that can be specifically attributed to the reporting unit. The Company tests goodwill and identifiable intangible assets with indefinite useful lives for impairment at least annually. The Company amortizes intangible assets with estimable useful lives over their respective estimated useful lives, and the Company reviews for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable and the carrying amount exceeds its fair value. The Company reviews goodwill at least annually for impairment. If certain events or indicators of impairment occur between annual impairment tests, the Company would perform an impairment test at that date. In testing for a potential impairment of goodwill, the Company (1) allocates goodwill to its reporting units to which the acquired goodwill relates, (2) estimates the fair value of its reporting units, and (3) determines the carrying value (book value) of those reporting units. Furthermore, if the estimated fair value of a reporting unit is less than the carrying value, the Company must estimate the fair value of all identifiable assets and liabilities of that reporting unit, in a manner similar to a purchase price allocation for an acquired business. This can require independent valuations of certain internally generated and unrecognized intangible assets such as in-process R&D and developed technology. Only after this process is completed can the amount of goodwill impairment, if any, be determined. In the Company’s goodwill impairment process, it first assesses qualitative factors to determine whether it is necessary to perform a quantitative analysis. The Company does not calculate the fair value of a reporting unit unless the Company determines, based on a qualitative assessment, that it is more-likely-than-not that its fair value is less than its carrying amount. The Company performs an annual goodwill impairment analysis as of the first day of its fourth fiscal quarter. The Company did no t record impairments of goodwill during the years ended June 24, 2018 , June 25, 2017 , or June 26, 2016 . The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis. The Company determines the fair value of its reporting units by using an income approach. Under the income approach, the Company determines fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. In estimating the fair value of a reporting unit, the Company makes estimates and judgments about the future cash flows of its reporting units, including estimated growth rates and assumptions about the economic environment. Although the Company’s cash flow forecasts are based on assumptions that are consistent with the plans and estimates it is using to manage the underlying businesses, there is significant judgment involved in determining the cash flows attributable to a reporting unit. In addition, the Company makes certain judgments about allocating shared assets to the estimated balance sheets of its reporting units. Changes in judgment on these assumptions and estimates could result in a goodwill impairment charge. As a result, several factors could result in impairment of a material amount of the Company’s goodwill balance in future periods, including but not limited to: (1) weakening of the global economy, weakness in the semiconductor equipment industry, or failure of the Company to reach its internal forecasts, which could impact the Company’s ability to achieve its forecasted levels of cash flows and reduce the estimated discounted cash flow value of its reporting units and (2) a decline in the Company’s stock price and resulting market capitalization and to the extent the Company determines that the decline is sustained and indicates a reduction in the fair value of the Company’s reporting units below their carrying value. Further, the value assigned to intangible assets, other than goodwill, is based on estimates and judgments regarding expectations such as the success and lifecycle of products and technology acquired. If actual product acceptance differs significantly from the estimates, the Company may be required to record an impairment charge to write down the asset to its realizable value. Impairment of Long-lived Assets (Excluding Goodwill): The Company routinely considers whether indicators of impairment of long-lived assets are present. If such indicators are present, the Company determines whether the sum of the estimated undiscounted cash flows attributable to the assets is less than their carrying value. If the sum is less, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their respective fair values. Fair value is determined by discounted future cash flows, appraisals, or other methods. The Company recognizes an impairment charge to the extent the present value of anticipated net cash flows attributable to the asset are less than the asset’s carrying value. The fair value of the asset then becomes the asset’s new carrying value, which the Company depreciates over the remaining estimated useful life of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value. For the periods presented, there was no impairment of long-lived assets. Fiscal Year: The Company follows a 52/53-week fiscal reporting calendar, and its fiscal year ends on the last Sunday of June each year. The Company’s most recent fiscal years ended on June 24, 2018 , June 25, 2017 , and June 26, 2016 , and each included 52 weeks. Principles of Consolidation: The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Cash Equivalents and Investments: Investments purchased with an original maturity of three months or less are considered cash equivalents. The Company also invests in certain mutual funds, which include equity and fixed- income securities, related to its obligations under its deferred compensation plan, and such investments are classified as trading securities on the consolidated balance sheets. All of the Company’s other investments are classified as available-for-sale at the respective balance sheet dates. The Company accounts for its investment portfolio at fair value. Investments classified as trading securities are recorded at fair value based upon quoted market prices. Differences between the cost and fair value of trading securities are recognized as “Other income (expense)” in the Consolidated Statement of Operations. The investments classified as available-for-sale are recorded at fair value based upon quoted market prices, and difference between the cost and fair value of available-for-sale securities is presented as a component of accumulated other comprehensive income (loss). Unrealized losses on available-for-sale securities are charged against other income (expense) when a decline in fair value is determined to be other than temporary. The Company considers several factors to determine whether a loss is other than temporary. These factors include but are not limited to (1) the extent to which the fair value is less than cost basis, (2) the financial condition and near-term prospects of the issuer, (3) the length of time a security is in an unrealized loss position, and (4) the Company’s ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The Company’s ongoing consideration of these factors could result in additional impairment charges in the future, which could adversely affect its results of operation. An other-than-temporary impairment is triggered when there is an intent to sell the security, it is more-likely-than-not that the security will be required to be sold before recovery, or the security is not expected to recover the entire amortized cost basis of the security. Other-than-temporary impairments attributed to credit losses are recognized in the income statement. The specific identification method is used to determine the realized gains and losses on investments. The Company recorded a $42.5 million other-than-temporary impairment charge during the year ended June 24, 2018 . No other-than-temporary impairment charges were recognized during the years ended June 25, 2017 or June 26, 2016 . Allowance for Doubtful Accounts: The Company evaluates its allowance for doubtful accounts based on a combination of factors. In circumstances where specific invoices are deemed uncollectible, the Company provides a specific allowance for bad debt against the amount due to reduce the net recognized receivable to the amount it reasonably believes will be collected. The Company also provides allowances based on its write-off history. Property and Equipment: Property and equipment is stated at cost. Equipment is depreciated by the straight-line method over the estimated useful lives of the assets, generally three to five years. Furniture and fixtures are depreciated by the straight-line method over the estimated useful lives of the assets, generally five years. Software is amortized by the straight-line method over the estimated useful lives of the assets, generally three to five years. Buildings are depreciated by the straight-line method over the estimated useful lives of the assets, generally twenty-five years. Leasehold improvements are generally amortized by the straight-line method over the shorter of the life of the related asset or the term of the underlying lease. Amortization of capital leases is included with depreciation expense. Derivative Financial Instruments: In the normal course of business, the Company’s financial position is routinely subjected to market risk associated with foreign currency exchange rate fluctuations. The Company’s policy is to mitigate the effect of these exchange rate fluctuations on certain foreign currency denominated business exposures. The Company has a policy that allows the use of derivative financial instruments to hedge foreign currency exchange rate fluctuations on forecasted revenue and expenses and net monetary assets or liabilities denominated in various foreign currencies. The Company carries derivative financial instruments (derivatives) on the balance sheet at their fair values. The Company does not use derivatives for trading or speculative purposes. The Company does not believe that it is exposed to more than a nominal amount of credit risk in its interest rate and foreign currency hedges, as counterparties are large, global and well-capitalized financial institutions. The Company’s exposures are in liquid currencies (Japanese yen, Swiss francs, euros, Taiwanese dollars, Chinese renminbi, Singapore dollars, and Korean won), so there is minimal risk that appropriate derivatives to maintain the Company’s hedging program would not be available in the future. To hedge foreign currency risks, the Company uses foreign currency exchange forward and option contracts, where possible and prudent. These hedge contracts are valued using standard valuation formulas with assumptions about future foreign currency exchange rates derived from existing exchange rates, interest rates, and other market factors. The Company considers its most current forecast in determining the level of foreign currency denominated revenue and expenses to hedge as cash flow hedges. The Company combines these forecasts with historical trends to establish the portion of its expected volume to be hedged. The revenue and expenses are hedged and designated as cash flow hedges to protect the Company from exposures to fluctuations in foreign currency exchange rates. If the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the related hedge gains and losses on the cash flow hedge are reclassified from accumulated other comprehensive income (loss) to other income (expense), net on the Consolidated Statement of Operations at that time. Guarantees: The Company has certain operating leases that contain provisions whereby the properties subject to the operating leases may be remarketed at lease expiration. The Company has guaranteed to the lessor an amount approximating the lessor’s investment in the property. Also, the Company’s guarantees generally include certain indemnifications to its lessors under operating lease agreements for environmental matters, potential overdraft protection obligations to financial institutions related to one of the Company’s subsidiaries, indemnifications to the Company’s customers for certain infringement of third-party intellectual property rights by its products and services, and the Company’s warranty obligations under sales of its products. Foreign Currency Translation: The Company’s non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, primarily generate and expend cash in their local currency. Accordingly, all balance sheet accounts of these local functional currency subsidiaries are translated into U.S. dollars at the fiscal period-end exchange rate, and income and expense accounts are translated into U.S. dollars using average rates in effect for the period, except for costs related to those balance sheet items that are translated using historical exchange rates. The resulting translation adjustments are recorded as cumulative translation adjustments and are a component of accumulated other comprehensive income (loss). Translation adjustments are recorded in other income (expense), net, where the U.S. dollar is the functional currency. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jun. 24, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted In November 2015, the Financial Accounting Standards Board (“FASB”) issued ASU 2015-17, “Balance Sheet Classification of Deferred Taxes.” This ASU amended existing guidance to require that deferred income tax assets and liabilities be classified as non-current in a classified balance sheet and eliminates the prior guidance which required an entity to separate deferred tax assets and liabilities into a current amount and a non-current amount in a classified balance sheet. The Company adopted this standard prospectively in the first quarter of fiscal year 2018. The implementation resulted in a net reduction of prepaid expense and other current assets of $49.7 million , accrued expense and other current liabilities of $5.3 million , and other long-term liabilities of $39.4 million ; and an increase in other assets of $5.0 million in the Company’s Condensed Consolidated Balance Sheet, and had no impact on cash provided by or used in operations for any period presented. In March 2016, the FASB released ASU 2016-9, “Compensation – Stock Compensation.” Key changes in the amendment include: • entities will be required to recognize all excess tax benefits or deficiencies as an income tax benefit or expense in the income statement, eliminating additional paid in capital (“APIC”) pools; • entities will no longer be required to delay recognition of excess tax benefits until they are realized; • entities will be required to classify the excess tax benefits as an operating activity in the statement of cash flows; • entities will be allowed to elect an accounting policy to either estimate the number of forfeitures or account for forfeitures as they occur; • entities can withhold up to the maximum individual statutory tax rate without classifying the awards as a liability; and • the cash paid to satisfy the statutory income tax withholding obligations shall be classified as a financing activity in the statement of cash flows. The Company adopted this standard in the first quarter of fiscal year 2018. As a result of the adoption, the Company recorded a $40.1 million cumulative-effect adjustment to retained earnings for the recognition of previously unrecognized excess tax benefits for all years prior to the adoption. As required by the standard update, the amendment was applied prospectively to recognize excess tax benefits or deficiencies in the income statement in the period of occurrence. Accordingly, the provision for income taxes for the fiscal year ended June 24, 2018 included excess tax benefits of $52.7 million that decreased the income tax provision. Additionally, the Company has elected to apply the change in cash flow classification on a prospective basis. The Company has elected to continue to estimate the number of forfeitures expected to occur to determine the amount of compensation cost to be recognized each period. The Company has elected to adopt the effects of the standard update with regard to the income tax withholdings obligations on a prospective basis. The impact of the adoption of the standard applicable to income tax withholdings was not material during the fiscal year ended June 24, 2018 . In August 2017, the FASB released ASU 2017-12, “Targeted Improvements to Accounting for Hedging Activities.” The new guidance is intended to: (1) more closely align hedge accounting with an entity’s risk management strategies, (2) simplify the application of hedge accounting by eliminating the requirement to separately measure and report hedge ineffectiveness, and (3) increase transparency around the scope and results of hedging programs. The Company is required to adopt the standard in the first quarter of fiscal year 2020, using a modified-retrospective approach for any cash flow or net investment hedges that exist on the date of adoption. The Company elected to early adopt the standard in the third quarter of fiscal year 2018. The cumulative-effect adjustment to eliminate ineffectiveness is not material to the Company's previously issued Consolidated Financial Statements. The presentation and disclosure have been modified on a prospective basis, as required by the standard update. Updates Not Yet Effective In May 2014, the FASB released ASU 2014-9, “Revenue from Contracts with Customers,” to supersede nearly all existing revenue recognition guidance under GAAP. The FASB issued subsequent amendments to the initial guidance in August 2015, March 2016, April 2016, May 2016 and December 2016 within ASU 2015–14, ASU 2016–08, ASU 2016–10, ASU 2016–12 and ASU 2016–20, respectively. The core principle of the standard is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The new standard defines a five-step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP, including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price, and allocating the transaction price to each separate performance obligation. The Company is required to adopt these standards starting in the first quarter of fiscal year 2019 using either of two methods: (1) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within the standard or (2) retrospective with the cumulative effect of initially applying the standard recognized at the date of initial application and providing certain additional disclosures as defined per the standard. The Company will adopt this new guidance using the modified retrospective transition method. Management has substantially completed its evaluation of existing contracts and the impact to the Company’s Consolidated Financial Statements and disclosures, business processes, systems, and controls. The Company believes that the timing of revenue recognition for certain of its systems will generally be earlier than under existing revenue guidance. The Company expects the impact of the initial adoption will result in a net decrease to its deferred profit balances, which is a component of total current liabilities estimated between $100 million and $200 million . In January 2016, the FASB released ASU 2016-1, “Financial Instruments – Overall – Recognition and Measurement of Financial Assets and Financial Liabilities.” The FASB issued a subsequent amendment to the initial guidance in February 2018 within ASU 2018-03. These amendments change the accounting for and financial statement presentation of equity investments, other than those accounted for under the equity method of accounting or those that result in consolidation of the investee. The amendments provide clarity on the measurement methodology to be used for the required disclosure of fair value of financial instruments measured at amortized cost on the balance sheet and clarifies that an entity should evaluate the need for a valuation allowance on deferred tax assets related to available-for-sale securities in combination with the entity’s other deferred tax assets, among other changes. The Company is required to adopt these standards starting in the first quarter of fiscal year 2019 and does not anticipate that implementation will have a material impact on its Consolidated Financial Statements. In January 2016, the FASB released ASU 2016-2, “Leases.” The FASB issued a subsequent amendment to the initial guidance in January 2018 within ASU 2018-01. The core principle of the standard requires an entity to recognize right-of-use assets and lease liabilities on its balance sheet and disclose key information about leasing arrangements. The amendment offers specific accounting guidance for a lessee, a lessor, and sale and leaseback transactions. Lessees and lessors are required to disclose qualitative and quantitative information about leasing arrangements to enable a user of the financial statements to assess the amount, timing, and uncertainty of cash flows arising from leases. The Company is required to adopt these standards starting in the first quarter of fiscal year 2020 using a modified-retrospective approach on the earliest period presented. The Company is currently in the process of evaluating the impact of adoption on its Consolidated Financial Statements. In June 2016, the FASB released ASU 2016-13, “Financial Instruments – Credit Losses.” The amendment revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including but not limited to available-for-sale debt securities and accounts receivable. The Company is required to adopt this standard starting in the first quarter of fiscal year 2021 using a modified-retrospective approach. Early adoption is permitted. The Company is currently in the process of evaluating the impact of adoption on its Consolidated Financial Statements. In August 2016, the FASB released ASU 2016-15, “Statement of Cash Flows – Classification of Certain Cash Receipts and Cash Payments.” The amendment provides and clarifies guidance on the classification of certain cash receipts and cash payments in the statement of cash flows to eliminate diversity in practice. The Company is required to adopt the standard update in the first quarter of fiscal year 2019, with a retrospective transition method required. The Company is currently in the process of evaluating the impact of adoption on its Consolidated Financial Statements. In October 2016, the FASB released ASU 2016-16, “Income Tax – Intra-Entity Transfers of Assets Other than Inventory.” This standard update improves the accounting for the income tax consequences of intra-entity transfers of assets other than inventory. Early adoption is permitted. The Company is required to adopt the standard in the first quarter of fiscal year 2019 using a modified-retrospective approach through a cumulative-effect adjustment directly to retained earnings. The Company is currently in the process of evaluating the impact of adoption on its Consolidated Financial Statements. In November 2016, the FASB released ASU 2016-18, “Statement of Cash Flows – Restricted Cash.” This standard update requires that restricted cash and restricted cash equivalents be included in cash and cash equivalents when reconciling the beginning-of-period and end-of-period total amounts shown in the statement of cash flows. The Company is required to adopt this standard in the first quarter of fiscal year 2019, with a retrospective transition method required. Early adoption is permitted. At June 24, 2018 , the Company had $256.3 million classified as restricted cash and investments on its Consolidated Balance Sheet which will be recognized as beginning-of-period cash and cash equivalents in the Company’s fiscal year 2019 Consolidated Statement of Cash Flows. Additionally the Company expects cash provided by investment activities for the twelve months ended June 24, 2018 and June 25, 2017 will increase by $0.1 million and $5.8 million , respectively. In February 2018, the FASB released ASU 2018-2, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This standard update addresses a specific consequence of U.S tax reform and allows a reclassification from accumulated other comprehensive income to retained earnings for the stranded tax effects resulting from U.S. tax reform. Consequently, the update eliminates the stranded tax effects that were created as a result of the historical U.S. federal corporate income tax rate to the newly enacted U.S. federal corporate income tax rate. The Company is required to adopt this standard in the first quarter of fiscal year 2020, with early adoption permitted. The amendments in this update should be applied either in the period of adoption or retrospectively to each period in which the effect of the change in the U.S federal corporate income tax rate in regards to U.S. tax reform is recognized. The Company is currently in the process of evaluating the impact of adoption on its Consolidated Financial Statements. |
Equity-based Compensation Plans
Equity-based Compensation Plans | 12 Months Ended |
Jun. 24, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Equity-Based Compensation Plans | Equity-based Compensation Plans The Company has stock plans that provide for grants of equity-based awards to eligible participants, including stock options and restricted stock units, of the Company’s Common Stock. An option is a right to purchase Common Stock at a set price. An RSU award is an agreement to issue a set number of shares of Common Stock at the time of vesting. The Company’s options and RSU awards typically vest over a period of three years or less. The Company also has an employee stock purchase plan that allows employees to purchase its Common Stock at a discount through payroll deductions. The Lam Research Corporation 2007 Stock Incentive Plan, as amended and restated, 2011 Stock Incentive Plan, as amended and restated, and the 2015 Stock Incentive Plan (collectively the “Stock Plans”), provide for the grant of non-qualified equity-based awards to eligible employees, consultants and advisors, and non-employee directors of the Company and its subsidiaries. The 2015 Stock Incentive Plan was approved by shareholders authorizing up to 18,000,000 shares available for issuance under the plan. Additionally, 1,232,068 shares that remained available for grants under the Company’s 2007 Stock Incentive Plan were added to the shares available for issuance under the 2015 Stock Incentive Plan. As of June 24, 2018 , there were a total of 10,335,291 shares available for future issuance under the Stock Plans. New shares are issued from the Company’s balance of authorized Common Stock from the 2015 Stock Incentive Plan to satisfy stock option exercises and vesting of awards. The Company recognized the following equity-based compensation expense and benefits in the Consolidated Statements of Operations: Year Ended June 24, June 25, June 26, (in thousands) Equity-based compensation expense $ 172,216 $ 149,975 $ 142,348 Income tax benefit recognized related to equity-based compensation $ 87,505 $ 38,381 $ 37,814 Income tax benefit realized from the exercise and vesting of options and RSUs $ 90,297 $ 92,749 $ 67,756 The estimated fair value of the Company’s equity-based awards, less expected forfeitures, is amortized over the awards’ vesting terms on a straight-line basis. I n the first quarter of fiscal year 2018, the Company adopted ASU 2016-9, “Compensation – Stock Compensation,” as discussed further in Note 3 - Recent Accounting Pronouncements. Stock Options The following table summarizes stock option activity: Options Outstanding Number of Weighted-Average June 28, 2015 835,832 $ 37.44 Granted 196,167 $ 75.57 Exercised (123,726 ) $ 24.92 Forfeited or expired (862 ) $ 21.43 June 26, 2016 907,411 $ 47.41 Granted 90,128 $ 119.67 Exercised (389,460 ) $ 33.92 Forfeited or expired (14,020 ) $ 69.81 June 25, 2017 594,059 $ 66.69 Granted 63,980 $ 190.07 Exercised (166,481 ) $ 55.62 Forfeited or expired (8,630 ) $ 84.44 June 24, 2018 482,928 $ 86.53 Outstanding and exercisable options presented by price range at June 24, 2018 , were as follows: Range of Exercise Prices Options Outstanding Options Exercisable Number of Weighted-Average Weighted-Average Number of Weighted-Average Weighted-Average $11.09-$23.59 33,918 1.49 $ 18.97 33,918 1.49 $ 18.97 $28.73-$35.68 39,060 2.63 $ 31.29 39,060 2.63 $ 31.29 $42.61-$51.76 75,415 2.03 $ 47.30 75,415 2.03 $ 47.30 $75.57-$190.07 334,535 5.08 $ 108.67 155,504 4.33 $ 83.58 $11.09-$190.07 482,928 4.15 $ 86.53 303,897 3.23 $ 60.65 The fair value of the Company’s stock options granted during fiscal years 2018 , 2017 , and 2016 was estimated using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award: Year Ended June 24, June 25, June 26, Expected volatility 34.66 % 28.85 % 33.08 % Risk-free interest rate 2.53 % 1.92 % 1.27 % Expected term (years) 4.74 4.75 4.79 Dividend yield 1.05 % 1.50 % 1.59 % The year-end intrinsic value relating to stock options for fiscal years 2018 , 2017 , and 2016 is presented below: Year Ended June 24, June 25, June 26, (in thousands) Intrinsic value - options outstanding $ 43,563 $ 50,551 $ 31,643 Intrinsic value - options exercisable $ 34,661 $ 36,396 $ 29,112 Intrinsic value - options exercised $ 23,925 $ 29,674 $ 6,562 As of June 24, 2018 , the Company had $5.4 million of total unrecognized compensation expense related to unvested stock options granted and outstanding which is expected to be recognized over a weighted-average remaining period of 2.2 years . Restricted Stock Units During the fiscal years 2018 , 2017 , and 2016 , the Company issued both service-based RSUs and market-based performance RSUs (“PRSUs”). Market-based PRSUs generally vest three years from the grant date if certain performance criteria are achieved and require continued employment. Based upon the terms of such awards, the number of shares that can be earned over the performance periods is based on the Company’s Common Stock price performance compared to the market price performance of the Philadelphia Semiconductor Sector Index (“SOX”), ranging from 0% to 150% of target. The stock price performance or market price performance is measured using the closing price for the 50 -trading days prior to the dates the performance period begins and ends. The target number of shares represented by the market-based PRSUs is increased by 2% of target for each 1% that Common Stock price performance exceeds the market price performance of the SOX index. The result of the vesting formula is rounded down to the nearest whole number. Total stockholder return is a measure of stock price appreciation in this performance period. The following table summarizes restricted stock activity: Service-based RSUs Outstanding Market-based RSUs Outstanding Number of Weighted-Average Number of Weighted-Average June 28, 2015 4,040,947 $ 60.98 913,141 $ 56.37 Granted 1,771,599 72.14 459,252 70.58 Vested (2,445,902 ) 54.91 (293,802 ) 46.77 Forfeited or canceled (110,131 ) 69.17 — — June 26, 2016 3,256,513 $ 71.34 1,078,591 $ 63.12 Granted 1,224,877 114.13 435,694 111.75 Vested (1,677,318 ) 69.10 (592,321 ) 46.67 Forfeited or canceled (116,466 ) 76.76 (59,509 ) 66.81 June 25, 2017 2,687,606 $ 92.01 862,455 $ 83.83 Granted 964,391 183.97 285,866 170.15 Vested (1,362,369 ) 87.80 (407,024 ) 76.88 Forfeited or canceled (96,540 ) 108.67 (47,571 ) 91.36 June 24, 2018 2,193,088 $ 134.34 693,726 $ 104.59 The fair value of the Company’s service-based RSUs was calculated based on fair market value of the Company’s stock at the date of grant, discounted for dividends. The fair value of the Company’s market-based PRSUs granted during fiscal years 2018 , 2017 , and 2016 was calculated using a Monte Carlo simulation model at the date of the grant. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award: Year Ended June 24, June 25, June 26, Expected volatility 34.07 % 27.48 % 29.81 % Risk-free interest rate 2.35 % 1.55 % 0.97 % Expected term (years) 2.92 2.92 2.92 Dividend yield 1.05 % 1.50 % 1.59 % As of June 24, 2018 , the Company had $247.7 million of total unrecognized compensation expense related to all unvested RSUs granted which is expected to be recognized over a weighted-average remaining period of 2.2 years . ESPP The Company has an employee stock purchase plan which allows employees to designate a portion of their base compensation to be deducted and used to purchase the Company’s Common Stock at a purchase price per share of the lower of 85% of the fair market value of the Company’s Common Stock on the first or last day of the applicable purchase period. Unrecognized compensation costs associated with this plan are not considered material. |
Other Income (Expense), Net
Other Income (Expense), Net | 12 Months Ended |
Jun. 24, 2018 | |
Other Income and Expenses [Abstract] | |
Other Income (Expense), Net | Other Income (Expense), Net The significant components of other income (expense), net, were as follows: Year Ended June 24, June 25, June 26, (in thousands) Interest income $ 85,813 $ 57,858 $ 29,512 Interest expense (97,387 ) (117,734 ) (134,773 ) Gains (losses) on deferred compensation plan related assets, net 14,692 17,880 (3,995 ) Loss on impairment of investments (42,456 ) — — Gains (losses) on extinguishment of debt, net 542 (36,252 ) — Foreign exchange (losses) gains, net (3,382 ) (569 ) 308 Other, net (19,332 ) (11,642 ) (5,191 ) $ (61,510 ) $ (90,459 ) $ (114,139 ) Interest income in the year ended June 24, 2018 , increased compared to the years ended June 25, 2017 , and June 26, 2016 , primarily as a result of higher yield. Interest expense in the year ended June 24, 2018 , decreased compared to the year ended June 25, 2017 , primarily due to the conversions of 2018 and 2041 Convertible Notes as well as the retirement of the 2018 Convertible Notes in May 2018. Interest expense in the year ended June 25, 2017 , decreased compared to the year ended June 26, 2016 , primarily due to the retirement of the 2016 Convertible Note. The gain on deferred compensation plan related assets in fiscal years 2018 and 2017, compared to a loss in fiscal year 2016 was driven by an improvement in the fair market value of the underlying funds. The loss on impairment of investments in the year ended June 24, 2018 is the result of a decision to sell selected investments held in foreign jurisdictions in conjunction with the Company’s cash repatriation strategy following the December 2017 U.S. tax reform. Net loss on extinguishment of debt realized in the year ended June 25, 2017 , is primarily a result of the special mandatory redemption of the Senior Notes due 2023 and 2026, as well as the termination of the Term Loan Agreement. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 24, 2018 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes On December 22, 2017, the “Tax Cuts & Jobs Act” (hereafter referred to as “U.S. tax reform”) was signed into law and is effective for the Company starting in the quarter ended December 24, 2017. U.S. tax reform reduces the U.S. federal statutory tax rate from 35% to 21% , mandates payment of a one-time transition tax on earnings of certain foreign subsidiaries that were previously tax deferred, and creates new taxes on certain foreign sourced earnings. The impact on income taxes due to a change in legislation is required under the authoritative guidance of Accounting Standards Codification (“ASC”) 740, Income Taxes, to be recognized in the period in which the law is enacted. In conjunction, the SEC issued Staff Accounting Bulletin (“SAB”) 118, which allows for the recording of provisional amounts related to U.S. tax reform and subsequent adjustments related to U.S. tax reform during an up to one-year measurement period that is similar to the measurement period used when accounting for business combinations. As such, there is significant activity in the fiscal year ended June 24, 2018 , which reflects the change in legislation. Most of that activity has provisionally been recorded in the Company’s Consolidated Financial Statements in the period ended June 24, 2018, as the Company has not yet completed all of the accounting for the tax effects of enactment. The Company recorded what it believes to be a reasonable estimate and the provisional activity is subject to further adjustments under SAB 118, with the exception of revaluation of its deferred tax balances to reflect the new U.S. federal statutory tax rate, which is considered final and complete under SAB 118. In addition, for significant items for which the Company could not make a reasonable estimate, no provisional activity was recorded. The Company will continue to refine the provisional balances and adjustments may be made under SAB 118 during the measurement period as a result of future changes in interpretation, information available, assumptions made by the Company and/or issuance of additional guidance; these adjustments could be material. During the December 2017 quarter, a one-time transition tax on accumulated unrepatriated foreign earnings, estimated at $991.3 million , was recognized associated with the December 2017 U.S. tax reform. This value is identified as provisional in the Consolidated Financial Statements for the period ended June 24, 2018, and is subject to future measurement period adjustments under SAB 118. Such an adjustment was made during the June 2018 quarter, incorporating new information into the estimate; the Company may make further adjustments as new information is made available. The revised estimate is now $883.0 million . The components of income (loss) before income taxes were as follows: Year Ended June 24, June 25, June 26, (in thousands) United States $ 128,190 $ 7,553 $ (113,607 ) Foreign 3,023,599 1,804,120 1,073,724 $ 3,151,789 $ 1,811,673 $ 960,117 Significant components of the provision (benefit) for income taxes attributable to income before income taxes were as follows: Year Ended June 24, June 25, June 26, (in thousands) Federal: Current $ 630,148 $ (70,858 ) $ 1,426 Deferred 12,871 99,700 (38,616 ) 643,019 28,842 (37,190 ) State: Current 5,348 (963 ) 2,892 Deferred (3,273 ) (2,246 ) (7,600 ) 2,075 (3,209 ) (4,708 ) Foreign: Current 132,566 85,479 90,752 Deferred (6,552 ) 2,798 (2,786 ) 126,014 88,277 87,966 Total provision for income taxes $ 771,108 $ 113,910 $ 46,068 Revaluation of the Company’s deferred tax balances to reflect the new U.S. federal statutory tax rate was recorded in the year ended June 24, 2018 and is considered final and complete under SAB 118. The computation of the one-time transition tax on accumulated unrepatriated foreign earnings was recorded on a provisional basis in the year ended June 24, 2018 and is therefore subject to potential measurement period adjustments under SAB 118. The amount recorded related to the revaluation of the Company’s deferred tax balance was $42.5 million . Also, an associated tax liability was remeasured at $52.7 million . The one-time transition tax is based on the Company’s total post-1986 earnings and profits (“E&P”) that was previously deferred from U.S. income taxes. The Company had previously accrued deferred taxes on a portion of this E&P. The Company has not yet completed the calculation of total post-1986 E&P and related income tax pools for its foreign subsidiaries. The Company recorded a provisional amount for the one-time transition tax of $883.0 million which was offset by the reversal of the associated previously accrued deferred taxes of $287.8 million . The net increase to tax expense recognized in the year ended June 24, 2018 was $595.2 million . The one-time transition tax may be elected to be paid over a period of eight years. The Company intends to make this election. Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. Significant components of the Company’s net deferred tax assets and liabilities were as follows: June 24, June 25, (in thousands) Deferred tax assets: Tax carryforwards $ 206,073 $ 175,595 Allowances and reserves 118,559 170,752 Equity-based compensation 16,189 25,828 Inventory valuation differences 14,021 19,602 Prepaid cost sharing 65,644 133,831 Other 16,514 20,175 Gross deferred tax assets 437,000 545,783 Valuation allowance (199,839 ) (114,011 ) Net deferred tax assets 237,161 431,772 Deferred tax liabilities: Intangible assets (21,558 ) (30,944 ) Convertible debt (60,252 ) (153,047 ) Capital assets (61,429 ) (72,727 ) Amortization of goodwill (10,738 ) (15,582 ) Unremitted earnings of foreign subsidiaries (6,656 ) (302,663 ) Other (7,955 ) (9,844 ) Gross deferred tax liabilities (168,588 ) (584,807 ) Net deferred tax assets (liabilities) $ 68,573 $ (153,035 ) The change in the gross deferred tax assets, gross deferred tax liabilities, and valuation allowance between fiscal year 2018 and 2017 is primarily due to deferred revaluation to reflect the new U.S. statutory tax rate and decreases related to allowances and reserves, prepaid cost sharing, and unremitted earnings of foreign subsidiaries. Realization of the Company’s net deferred tax assets is based upon the weighting of available evidence, including such factors as the recent earnings history and expected future taxable income. The Company believes it is more likely than not that such deferred tax assets will be realized with the exception of $199.8 million primarily related to California deferred tax assets. At June 24, 2018, the Company continued to record a valuation allowance to offset the entire California deferred tax asset balance due to the single sales factor apportionment election resulting in lower taxable income in California. At June 24, 2018 , the Company had federal net operating loss carryforwards of $126.8 million . The majority of these losses will begin to expire in fiscal year 2019 , and are subject to limitation on their utilization. At June 24, 2018 , the Company had state net operating loss carryforwards of $24.5 million . If not utilized, these losses will begin to expire in fiscal year 2020 and are subject to limitation on their utilization. At June 24, 2018 , the Company had state tax credit carryforwards of $285.9 million . Substantially all of these credits can be carried forward indefinitely. As a result of U.S. tax reform, the Company revised its estimated annual effective tax rate to reflect the change in the U.S. federal statutory tax rate from 35% to 21% . As the Company has a fiscal year ending the last Sunday in June, it is subject to transitional tax rate rules. Therefore, a blended rate of 28.27% was computed as effective for the current fiscal year. The difference between the U.S. federal statutory tax rate of 28.27% and the Company’s effective tax rate for the year ended June 24, 2018 is primarily due to income in lower tax jurisdictions offset by the impact of U.S. tax reform. A reconciliation of income tax expense provided at the federal statutory rate ( 28.27% in fiscal year 2018 and 35% in fiscal years 2017 and 2016 ) to actual income tax expense (benefit) is as follows: Year Ended June 24, June 25, June 26, (in thousands) Income tax expense computed at federal statutory rate $ 891,011 $ 634,086 $ 336,041 State income taxes, net of federal tax benefit (50,585 ) (11,973 ) (14,070 ) Foreign income taxed at different rates (939,808 ) (352,860 ) (265,123 ) Settlements and reductions in uncertain tax positions (33,367 ) (144,519 ) — Tax credits (69,301 ) (37,713 ) (48,277 ) State valuation allowance, net of federal tax benefit 57,302 12,070 17,948 Equity-based compensation (35,875 ) 13,187 12,366 Other permanent differences and miscellaneous items 43,214 1,632 7,183 U.S. tax reform impacts 908,517 — — $ 771,108 $ 113,910 $ 46,068 In July 2015, the U.S. Tax Court issued an opinion favorable to Altera Corporation with respect to Altera’s litigation with the Internal Revenue Service. The litigation related to the treatment of stock-based compensation expense in an intercompany cost-sharing arrangement with Altera’s foreign subsidiary. In its opinion, the U.S. Tax Court accepted Altera’s position of excluding stock-based compensation from its intercompany cost-sharing arrangement. In July 2018, the U.S. Court of Appeals for the Ninth Circuit reversed the 2015 decision of the U.S. Tax Court. In August 2018, the opinion made by the U.S. Court of Appeals for the Ninth Circuit was withdrawn to allow time for a reconstituted panel to confer on the appeal. The Company is currently evaluating the impact, if any, of these subsequent events on the fiscal year 2019 Consolidated Financial Statements. The Company is unable to estimate the impact at this time. Effective from fiscal year 2014 through 2017, the Company had a tax ruling in Switzerland for one of its foreign subsidiaries. The impact of the tax ruling decreased taxes by approximately $6.3 million and $4.3 million for fiscal year 2017 and 2016, respectively. The benefit of the tax ruling on diluted earnings per share was approximately $0.03 in fiscal year 2017 and $0.02 in fiscal year 2016. Effective fiscal year 2018, the Company has withdrawn its reduced tax rate ruling in Switzerland for this subsidiary due to the ruling being no longer necessary as the subsidiary meets the requirements to achieve the reduced tax rate under Swiss tax law. Other significant items which are being evaluated by the Company but for which no estimate can currently be made and for which no provisional amounts were recorded in the Consolidated Financial Statements, include the impact of the GILTI provision of U.S. tax reform. The GILTI provision imposes taxes on foreign earnings in excess of a deemed return on tangible assets. This tax is effective for the Company after the end of the current fiscal year. However, the Company is evaluating whether deferred taxes should be recorded in relation to the GILTI provisions or if the tax should be recorded in the period in which it occurs. Based on current interpretation, the Company may choose either method as an accounting policy election. The Company has not yet decided on the accounting policy related to GILTI and will only do so after completion of the GILTI analysis. The provisions related to GILTI are subject to adjustment during the measurement period under SAB 118. Earnings of the Company’s foreign subsidiaries included in consolidated retained earnings that are indefinitely reinvested in foreign operations aggregated to approximately $456.1 million at June 24, 2018 . If these earnings were remitted to the United States, they would be subject to foreign withholding taxes of approximately $74.9 million at current statutory rates. As of June 24, 2018 , the total gross unrecognized tax benefits were $305.4 million , compared to $339.4 million as of June 25, 2017 , and $417.4 million as of June 26, 2016 . During fiscal year 2018 , gross unrecognized tax benefits decreased by $34.0 million . The amount of unrecognized tax benefits that, if recognized, would impact the effective tax rate was $268.3 million , $247.6 million , and $323.4 million , as of June 24, 2018 , June 25, 2017 , and June 26, 2016 , respectively. The aggregate changes in the balance of gross unrecognized tax benefits were as follows: (in thousands) Balance as of June 28, 2015 $ 363,552 Lapse of statute of limitations (10,992 ) Increases in balances related to tax positions taken during prior periods 18,200 Decreases in balances related to tax positions taken during prior periods (421 ) Increases in balances related to tax positions taken during current period 47,093 Balance as of June 26, 2016 417,432 Settlements and effective settlements with tax authorities (6,691 ) Lapse of statute of limitations (113,491 ) Increases in balances related to tax positions taken during prior periods 6,557 Decreases in balances related to tax positions taken during prior periods (11,528 ) Increases in balances related to tax positions taken during current period 47,168 Balance as of June 25, 2017 339,447 Settlements and effective settlements with tax authorities (693 ) Lapse of statute of limitations (88,837 ) Increases in balances related to tax positions taken during prior periods 2,044 Decreases in balances related to tax positions taken during prior periods (1,320 ) Increases in balances related to tax positions taken during current period 54,772 Balance as of June 24, 2018 $ 305,413 The Company recognizes interest expense and penalties related to the above unrecognized tax benefits within income tax expense. The Company had accrued $13.0 million , $15.7 million , and $42.4 million cumulatively for gross interest and penalties as of June 24, 2018 , June 25, 2017 , and June 26, 2016 , respectively. The Company is subject to audits by state and foreign tax authorities. The Company is unable to make a reasonable estimate as to when cash settlements, if any, with the relevant taxing authorities will occur. The Company files U.S. federal, U.S. state, and foreign income tax returns. As of June 24, 2018 , tax years 2004-2018 remain subject to examination in the jurisdictions where the Company operates. The Company is in various stages of examinations in connection with all of its tax audits worldwide, and it is difficult to determine when these examinations will be settled. It is reasonably possible that over the next 12-month period the Company may experience an increase or decrease in its unrecognized tax benefits as a result of tax examinations or lapses of statute of limitations. The change in unrecognized tax benefits may range up to $28 million . |
Net Income per Share
Net Income per Share | 12 Months Ended |
Jun. 24, 2018 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the treasury stock method, for dilutive stock options, restricted stock units, and Convertible Notes. The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share. Year Ended June 24, June 25, June 26, (in thousands, except per share data) Numerator: Net income $ 2,380,681 $ 1,697,763 $ 914,049 Denominator: Basic average shares outstanding 161,643 162,222 158,919 Effect of potential dilutive securities: Employee stock plans 2,312 2,058 2,120 Convertible notes 12,258 16,861 13,464 Warrants 4,569 2,629 656 Diluted average shares outstanding 180,782 183,770 175,159 Net income per share - basic $ 14.73 $ 10.47 $ 5.75 Net income per share - diluted $ 13.17 $ 9.24 $ 5.22 For purposes of computing diluted net income per share, weighted-average common shares do not include potentially dilutive securities that are anti-dilutive under the treasury stock method. The following potentially dilutive securities were excluded: Year Ended June 24, June 25, June 26, (in thousands) Options and RSUs 34 34 149 Diluted shares outstanding do not include any effect resulting from note hedges associated with the Company’s 2018 Notes (as described in Note 13) as their impact would have been anti-dilutive. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Jun. 24, 2018 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Fair Value The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value. The level of an asset or liability in the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities with sufficient volume and frequency of transactions. Level 2: Valuations based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or model-derived valuations techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Valuations based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities and based on non-binding, broker-provided price quotes and may not have been corroborated by observable market data. The Company’s primary financial instruments include its cash, cash equivalents, investments, restricted cash and investments, long-term investments, accounts receivable, accounts payable, long-term debt and capital leases, and foreign currency related derivative instruments. The estimated fair value of cash, accounts receivable, and accounts payable approximates their carrying value due to the short period of time to their maturities. The estimated fair values of capital lease obligations approximate their carrying value as the substantial majority of these obligations have interest rates that adjust to market rates on a periodic basis. Refer to Note 13 - Long Term Debt and Other Borrowings for additional information regarding the fair value of the Company’s Senior Notes and 2041 Notes. Investments The following table sets forth the Company’s cash, cash equivalents, investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of June 24, 2018 , and June 25, 2017 : June 24, 2018 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 708,364 $ — $ — $ 708,364 $ 702,090 $ — $ 6,274 $ — Time deposit 999,666 — — 999,666 749,639 — 250,027 — Level 1: Money market funds 2,341,807 — — 2,341,807 2,341,807 — — — U.S. Treasury and agencies 356,679 — (170 ) 356,509 333,721 22,788 — — Mutual funds 68,568 516 (142 ) 68,942 — — — 68,942 Level 1 total 2,767,054 516 (312 ) 2,767,258 2,675,528 22,788 — 68,942 Level 2: Municipal notes and bonds 152,378 37 (279 ) 152,136 — 152,136 — — Government-sponsored enterprises 110,963 — (201 ) 110,762 99,934 10,828 — — Foreign government bonds 19,986 — (1 ) 19,985 19,985 — — — Corporate notes and bonds 516,955 95 (1,184 ) 515,866 265,081 250,785 — — Mortgage backed securities - residential 804 — (3 ) 801 — 801 — — Level 2 total 801,086 132 (1,668 ) 799,550 385,000 414,550 — — Total $ 5,276,170 $ 648 $ (1,980 ) $ 5,274,838 $ 4,512,257 $ 437,338 $ 256,301 $ 68,942 June 25, 2017 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 551,308 $ — $ — $ 551,308 $ 545,130 $ — $ 6,178 $ — Time deposit 640,666 — — 640,666 390,639 — 250,027 — Level 1: Money market funds 1,423,417 — — 1,423,417 1,423,417 — — — U.S. Treasury and agencies 783,848 684 (2,111 ) 782,421 8,297 774,124 — — Mutual funds 53,247 3,007 — 56,254 — — — 56,254 Level 1 total 2,260,512 3,691 (2,111 ) 2,262,092 1,431,714 774,124 — 56,254 Level 2: Municipal notes and bonds 194,575 308 (7 ) 194,876 — 194,876 — — U.S. Treasury and agencies 12,795 — (167 ) 12,628 — 12,628 — — Government-sponsored enterprises 24,502 — (6 ) 24,496 — 24,496 — — Foreign government bonds 62,917 219 (114 ) 63,022 — 63,022 — — Corporate notes and bonds 2,433,622 4,654 (1,840 ) 2,436,436 10,051 2,426,385 — — Mortgage backed securities - residential 102,760 87 (489 ) 102,358 — 102,358 — — Mortgage backed securities - commercial 65,828 9 (98 ) 65,739 — 65,739 — — Level 2 total 2,896,999 5,277 (2,721 ) 2,899,555 10,051 2,889,504 — — Total $ 6,349,485 $ 8,968 $ (4,832 ) $ 6,353,621 $ 2,377,534 $ 3,663,628 $ 256,205 $ 56,254 The Company accounts for its investment portfolio at fair value. Realized gains (losses) for investment sales are specifically identified. Management assesses the fair value of investments in debt securities that are not actively traded through consideration of interest rates and their impact on the present value of the cash flows to be received from the investments. The Company also considers whether changes in the credit ratings of the issuer could impact the assessment of fair value. Additionally, the Company also considers factors such as the Company’s intent to sell the security and whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. During the fiscal year 2018 , the Company recorded a $42.5 million other-than-temporary impairment charge on a portion of its available for sale investments as a result of a decision to sell selected investments held in foreign jurisdictions in conjunction with our cash repatriation strategy following the U.S. tax reform legislation. The Company did not recognize any losses on investments due to other-than-temporary impairments in fiscal year 2017 or 2016 . The Company does not intend to sell its domestic investment portfolio and it is not more likely than not that it will be required to sell these investments before recovery of their amortized cost bases. Accordingly, the Company does not consider its domestically held investments to be other-than-temporarily impaired. Gross realized gains/(losses) from sales of investments were $2.4 million and $(8.5) million in fiscal year 2018 , $3.6 million and $(2.4) million in fiscal year 2017 , and $2.0 million and $(3.0) million in fiscal year 2016 . The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions: June 24, 2018 Unrealized Losses Unrealized Losses Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) U.S. Treasury and agencies $ 332,903 $ (100 ) $ 11,026 $ (70 ) $ 343,929 $ (170 ) Municipal notes and bonds 141,139 (279 ) — — 141,139 (279 ) Mutual funds 25,312 (142 ) — — 25,312 (142 ) Government-sponsored enterprises 110,722 (201 ) — — 110,722 (201 ) Foreign government bonds 19,985 (1 ) — — 19,985 (1 ) Corporate notes and bonds 161,813 (1,092 ) 14,928 (92 ) 176,741 (1,184 ) Mortgage backed securities - residential 801 (3 ) — — 801 (3 ) $ 792,675 $ (1,818 ) $ 25,954 $ (162 ) $ 818,629 $ (1,980 ) The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities as of June 24, 2018 , are as follows: Cost Estimated (in thousands) Due in one year or less $ 4,312,694 $ 4,312,352 Due after one year through five years 181,681 180,352 Due in more than five years 4,863 4,828 $ 4,499,238 $ 4,497,532 The Company has the ability, if necessary, to liquidate its investments in order to meet the Company’s liquidity needs in the next 1 2 months. Accordingly, those investments with contractual maturities greater than one year from the date of purchase nonetheless are classified as short-term on the accompanying Consolidated Balance Sheets. Derivative Instruments and Hedging The Company carries derivative financial instruments (“derivatives”) on its Consolidated Balance Sheets at their fair values. The Company enters into foreign currency forward contracts and foreign currency options with financial institutions with the primary objective of reducing volatility of earnings and cash flows related to foreign currency exchange rate fluctuations. In addition, the Company enters into interest rate swap arrangements to manage interest rate risk. The counterparties to these derivatives are large, global financial institutions that the Company believes are creditworthy, and therefore, it does not consider the risk of counterparty nonperformance to be material. Cash Flow Hedges The Company’s financial position is routinely subjected to market risk associated with foreign currency exchange rate fluctuations on non-U.S. dollar transactions or cash flows, primarily from Japanese yen-denominated revenues and euro-denominated and Korean won-denominated expenses. The Company’s policy is to mitigate the foreign exchange risk arising from the fluctuations in the value of these non-U.S. dollar denominated transactions or cash flows through a foreign currency cash flow hedging program, using forward contracts and foreign currency options that generally expire within 12 months and no later than 24 months . These hedge contracts are designated as cash flow hedges and are carried on the Company’s balance sheet at fair value with the effective portion of the contracts’ gains or losses included in accumulated other comprehensive income (loss) and subsequently recognized in revenue/expense in the same period the hedged items are recognized. In addition, the Company has entered into interest rate swap agreements to hedge against the variability of cash flows due to changes in certain benchmark interest rates on fixed rate debt. These instruments are designated as cash flow hedges at inception and are settled in conjunction with the issuance of debt. The effective portion of the contracts’ gains or losses is included in accumulated other comprehensive income (loss) and is amortized into income as the hedged item impacts earnings. At inception and at each quarter-end, hedges are tested prospectively and retrospectively for effectiveness using regression analysis. Changes in the fair value of foreign exchange contracts due to changes in time value are included in the assessment of effectiveness. To qualify for hedge accounting, the hedge relationship must meet criteria relating to both the derivative instrument and the hedged item. These criteria include identification of the hedging instrument, the hedged item, the nature of the risk being hedged, and how the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value or cash flows will be measured. There were no material gains or losses during the fiscal years ended June 24, 2018 , June 25, 2017 , or June 26, 2016 associated with forecasted transactions that failed to occur. There were no material gains or losses during the fiscal years ended June 25, 2017 , or June 26, 2016 associated with ineffectiveness. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be tested to demonstrate an expectation of providing highly effective offsetting changes to future cash flows on hedged transactions. When derivative instruments are designated and qualify as effective cash flow hedges, the Company recognizes effective changes in the fair value of the hedging instrument within accumulated other comprehensive income (loss) until the hedged exposure is realized. Consequently, the Company’s results of operations are not subject to fluctuation as a result of changes in the fair value of the derivative instruments. If hedges are not highly effective or if the Company does not believe that the underlying hedged forecasted transactions will occur, the Company may not be able to account for its derivative instruments as cash flow hedges. If this were to occur, future changes in the fair values of the Company’s derivative instruments would be recognized in earnings. Additionally, related amounts previously recorded in other comprehensive income would be reclassified to income immediately. As of June 24, 2018 , the Company had a net loss of $2.2 million accumulated in other comprehensive income, net of tax, related to foreign exchange cash flow hedges which it expects to reclassify from other comprehensive income into earnings over the next 12 months. Additionally, as of June 24, 2018 , the Company had a net loss of $1.8 million accumulated in other comprehensive income, net of tax, related to interest rate contracts which it expects to reclassify from other comprehensive income into earnings over the next 6.7 years. Fair Value Hedges The Company has interest rate contracts whereby the Company receives fixed rates and pays variable rates based on certain benchmark interest rates, resulting in a net increase or decrease to interest expense, a component of other expense, net in our Consolidated Statement of Operations. These interest rate contracts are designated as fair value hedges and hedge against changes in the fair value of our debt portfolio. The Company concluded that these interest rate contracts meet the criteria necessary to qualify for the short-cut method of hedge accounting, and as such, an assumption is made that the change in the fair value of the hedged debt, due to changes in the benchmark rate, exactly offsets the change in the fair value of the interest rate swap. Therefore, the derivative is considered to be effective at achieving offsetting changes in the fair value of the hedged liability, and no ineffectiveness is recognized. Balance Sheet Hedges The Company also enters into foreign currency forward contracts to hedge fluctuations associated with foreign currency denominated monetary assets and liabilities, primarily cash, third-party accounts receivable, accounts payable, and intercompany receivables and payables. These forward contracts are not designated for hedge accounting treatment. Therefore, the change in fair value of these derivatives is recorded as a component of other income (expense) and offsets the change in fair value of the foreign currency denominated assets and liabilities, which are also recorded in other income (expense). As of June 24, 2018 , the Company had the following outstanding foreign currency contracts that were entered into under its cash flow and balance sheet hedge programs: Notional Value Derivatives Designated as Derivatives Not Designated as (in thousands) Foreign currency forward contracts Buy Contracts Sell Contracts Buy Contracts Sell Contracts Japanese yen $ — $ 568,970 $ — $ 267,367 Euro 102,557 — 45,298 — Korean won 28,887 — — 99,408 Taiwan dollar — — 31,859 — Singapore dollar — — 21,376 — British pound sterling — — 15,865 — Swiss franc — — 14,899 — Indian rupee — — 3,220 — Chinese renminbi — — 2,467 — $ 131,444 $ 568,970 $ 134,984 $ 366,775 Foreign currency option contracts Buy Put Sell Call Buy Put Sell Put Japanese yen (1) $ 9,050 $ 9,709 $ — $ — (1) The local currency notional amounts of these foreign currency option contracts are equal to each other. The fair value of derivative instruments in the Company’s Consolidated Balance Sheet as of June 24, 2018 , and June 25, 2017 , were as follows: June 24, 2018 June 25, 2017 Fair Value of Derivative Instruments (Level 2) Fair Value of Derivative Instruments (Level 2) Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Balance Fair Balance Fair Balance Fair Balance Fair (in thousands) Derivatives designated as hedging instrument s: Foreign exchange contracts Prepaid $ 7,581 Accrued expenses and other current liabilities $ 8,866 Prepaid $ 8,061 Accrued expenses and other current liabilities $ 2,916 Interest rate contracts, short-term — Accrued expenses and other current liabilities 7,468 — Accrued expenses and other current liabilities 2,833 Interest rate contracts, long-term — Other long-term liabilities 23,720 — Other long-term liabilities 7,269 Derivatives not designated as hedging instrument s: Foreign exchange contracts Prepaid 111 Accrued expenses and other current liabilities 32 Prepaid 213 Accrued expenses and other current liabilities 342 Total derivatives $ 7,692 $ 40,086 $ 8,274 $ 13,360 Under the master netting agreements with the respective counterparties to the Company’s derivative contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. However, the Company has elected to present the derivative assets and derivative liabilities on a gross basis on its balance sheet. As of June 24, 2018 , the potential effect of rights of offset associated with the above foreign exchange and interest rate contracts would be an offset to assets and liabilities by $5.6 million , resulting in a net derivative asset of $2.1 million and net derivative liability of $34.4 million . As of June 25, 2017 , the potential effect of rights of offset associated with the above foreign exchange contracts would be an offset to both assets and liabilities by $5.9 million , resulting in a net derivative asset of $2.3 million and a net derivative liability of $7.4 million . The Company is not required to pledge, nor is the Company entitled to receive, cash collateral for these derivative transactions. The effect of derivative instruments designated as cash flow hedges on the Company’s Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”), was as follows: Year Ended June 24, 2018 Location of Gain (Loss) Gain (Loss) Derivatives in Cash Flow Hedging Relationships (in thousands) Foreign exchange contracts Revenue $ (8,305 ) $ (11,284 ) Foreign exchange contracts Cost of goods sold 57 5,218 Foreign exchange contracts SG&A 558 2,654 Foreign exchange contracts Other expense, net — — $ (7,690 ) $ (3,412 ) Derivatives in Fair Value Hedging Relationships Interest rate contracts Other expense, net $ — $ (126 ) Year Ended June 25, 2017 Location of Effective Portion Ineffective Derivatives Designated as Gain (Loss) Gain (Loss) Gain (Loss) (in thousands) Foreign exchange contracts Revenue $ 2,927 $ (12,000 ) $ 6,982 Foreign exchange contracts Cost of goods sold 2,859 666 (686 ) Foreign exchange contracts SG&A 1,128 71 (267 ) Foreign exchange contracts Other expense, net — — (82 ) Interest rate contracts Other expense, net — 1,727 — $ 6,914 $ (9,536 ) $ 5,947 The effect of derivative instruments not designated as cash flow hedges on the Company’s Consolidated Statement of Operations was as follows: Year Ended June 24, 2018 June 25, 2017 Derivatives Not Designated as Hedging Instruments: Location of Gain Gain Gain (in thousands) Foreign exchange contracts Other income $ 7,756 $ 523 The following table presents the effect of the fair value cash flow hedge accounting on the Statement of Financial Performance: Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Year ended June 24, 2018 Revenue Cost of Goods Sold Selling, General and Administrative Other Income (Expense) (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: $ 11,076,998 $ 5,911,966 $ 762,219 $ (61,510 ) 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 — — — 21,086 Derivatives designated as hedging instruments — — — (21,086 ) Gain or (loss) on cash flow hedging relationships in Subtopic 815-20: Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income (11,284 ) 5,218 2,654 — Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, investments, restricted cash and investments, trade accounts receivable, and derivative financial instruments used in hedging activities. Cash is placed on deposit at large, global financial institutions. Such deposits may be in excess of insured limits. Management believes that the financial institutions that hold the Company’s cash are creditworthy and, accordingly, minimal credit risk exists with respect to these balances. The Company’s overall portfolio of available-for-sale securities must maintain an average minimum rating of “AA-” or “Aa3” as rated by Standard and Poor’s, Fitch Ratings, or Moody’s Investor Services. To ensure diversification and minimize concentration, the Company’s policy limits the amount of credit exposure with any one financial institution or commercial issuer. The Company is exposed to credit losses in the event of nonperformance by counterparties on foreign currency and interest rate hedge contracts that are used to mitigate the effect of exchange rate and interest rate fluctuations and on contracts related to structured share repurchase arrangements. These counterparties are large, global financial institutions and, to date, no such counterparty has failed to meet its financial obligations to the Company. Credit risk evaluations, including trade references, bank references, and Dun & Bradstreet ratings, are performed on all new customers, and the Company monitors its customers’ financial condition and payment performance. In general, the Company does not require collateral on sales. As of June 24, 2018 , four customers accounted for approximately 24% , 17% , 10% , and 10% , of accounts receivable, respectively. As of June 25, 2017 , four customers accounted for approximately 22% , 19% , 13% , and 12% of accounts receivable, respectively. No other customers accounted for more than 10% of accounts receivable, respectively. The Company’s balance and transactional activity for its allowance for doubtful accounts is not material as of and for the twelve months ended June 24, 2018 , June 25, 2017 , and June 26, 2016 . |
Inventories
Inventories | 12 Months Ended |
Jun. 24, 2018 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. System shipments to customers in Japan, for which title does not transfer until customer acceptance, are classified as finished goods inventory and carried at cost until title transfers. Inventories consist of the following: June 24, June 25, (in thousands) Raw materials $ 916,438 $ 625,600 Work-in-process 222,921 213,066 Finished goods 736,803 394,250 $ 1,876,162 $ 1,232,916 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 24, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net, consist of the following: June 24, June 25, (in thousands) Manufacturing and engineering equipment $ 911,140 $ 819,239 Computer equipment and software 182,451 166,441 Land 46,155 46,155 Buildings and improvements 530,032 358,081 Office equipment, furniture and fixtures 66,378 52,959 1,736,156 1,442,875 Less: accumulated depreciation and amortization (833,609 ) (757,280 ) $ 902,547 $ 685,595 Depreciation expense, including amortization of capital leases, during fiscal years 2018 , 2017 , and 2016 , was $165.2 million , $152.3 million , and $134.7 million , respectively. The Company recorded a $15.2 million gain on sale of real estate and related development rights, net of associated exit costs, in fiscal year 2016 in selling, general, and administrative expenses in the Consolidated Statement of Operations. No significant gains on sale were realized in fiscal years 2018 or 2017 . |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 24, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The balance of goodwill was $1.5 billion and $1.4 billion as of June 24, 2018 , and June 25, 2017 , respectively. As of June 24, 2018 , $61.1 million of the goodwill balance is tax deductible, and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law. No goodwill impairments were recognized in fiscal years 2018 , 2017 , or 2016 . Refer to Note 19 - Business Combinations for information regarding goodwill additions during the fiscal year ended June 24, 2018. Intangible Assets The following table provides details of the Company’s intangible assets, other than goodwill: June 24, 2018 June 25, 2017 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 630,220 $ (433,309 ) $ 196,911 $ 615,164 $ (366,439 ) $ 248,725 Existing technology 669,520 (576,844 ) 92,676 643,196 (487,056 ) 156,140 Patents and other intangible assets 99,767 (71,518 ) 28,249 73,067 (66,937 ) 6,130 Total intangible assets $ 1,399,507 $ (1,081,671 ) $ 317,836 $ 1,331,427 $ (920,432 ) $ 410,995 The Company recognized $161.2 million , $154.6 million , and $156.3 million in intangible asset amortization expense during fiscal years 2018 , 2017 , and 2016 , respectively. No intangible asset impairments were recognized in fiscal years 2018 , 2017 , or 2016 . Refer to Note 19 - Business Combinations for information regarding intangible assets acquired during the fiscal year ended June 24, 2018. The estimated future amortization expense of intangible assets as of June 24, 2018 , was as follows: Fiscal Year Amount (in thousands) 2019 $ 125,921 2020 60,792 2021 58,019 2022 54,492 2023 10,967 Thereafter 7,645 $ 317,836 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jun. 24, 2018 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: June 24, June 25, (in thousands) Accrued compensation $ 506,471 $ 447,363 Warranty reserves 192,480 161,981 Income and other taxes payable 185,384 95,127 Dividend payable 174,372 72,738 Other 250,502 192,152 $ 1,309,209 $ 969,361 |
Long Term Debt and Other Borrow
Long Term Debt and Other Borrowings | 12 Months Ended |
Jun. 24, 2018 | |
Debt Disclosure [Abstract] | |
Long Term Debt and Other Borrowings | Long Term Debt and Other Borrowings As of June 24, 2018 , and June 25, 2017 , the Company’s outstanding debt consisted of the following: June 24, 2018 June 25, 2017 Amount (in thousands) Effective Interest Rate Amount (in thousands) Effective Interest Rate Fixed-rate 1.25% Convertible Notes Due May 15, 2018 (“2018 Notes”) — (1) 5.27 % 447,436 (2) 5.27 % Fixed-rate 2.75% Senior Notes Due March 15, 2020 (“2020 Notes”) 500,000 2.88 % 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 2.625% Convertible Notes Due May 15, 2041 (“2041 Notes”) 326,953 (2) 4.28 % 631,074 (2) 4.28 % Commercial paper 360,000 2.33 % (3) — — % Total debt outstanding, at par 2,486,953 2,878,510 Unamortized discount (85,196 ) (178,589 ) Fair value adjustment - interest rate contracts (31,189 ) (10,102 ) Unamortized bond issuance costs (1,820 ) (3,161 ) Total debt outstanding, at carrying value $ 2,368,748 $ 2,686,658 Reported as: Current portion of long-term debt $ 608,532 (2) $ 907,827 (2) Long-term debt 1,760,216 1,778,831 Total debt outstanding, at carrying value $ 2,368,748 $ 2,686,658 (1) The 2018 Notes were settled upon their maturity on May 15, 2018. (2) As of the report date, these notes were convertible at the option of the bond holder. This is a result of the following condition being met; the market value of the Company’s Common Stock was greater than 130% of the convertible notes conversion price for 20 or more of the 30 consecutive trading days preceding the quarter-end. As a result, the 2041 Notes were classified in current liabilities and a portion of the equity component associated with the convertible notes, representing the unamortized discount, was classified in temporary equity on the Company’s Consolidated Balance Sheets. Upon closure of the conversion period, the notes not converted will be reclassified back into noncurrent liabilities and the temporary equity will be reclassified into permanent equity. (3) Represents the weighted-average effective interest rate for all outstanding balances as of the report date. The Company’s contractual cash obligations relating to its outstanding debt as of June 24, 2018 , were as follows: Payments Due by Fiscal Year: (in thousands) 2019 (1) $ 686,953 2020 500,000 2021 800,000 2022 — 2023 — Thereafter 500,000 Total $ 2,486,953 (1) As noted above, the conversion period for the 2041 Notes is open as of June 24, 2018 . As there is the potential for conversion at the option of the holder, the principal balance of the 2041 Notes has been included in the one-year payment period. Convertible Senior Notes In May 2011, the Company issued and sold $450 million in aggregate principal amount of 1.25% Convertible Senior Notes due May 2018 at par. The 2018 Notes were extinguished upon maturity on May 15, 2018. During the twelve months ended June 24, 2018, the majority the 2018 Notes were converted at the option of the bondholders. In settlement, the bondholders received 4.8 million shares of Common Stock. To offset the dilutive impact of the Common Stock consideration paid, the Company exercised the associated note hedge and received 4.8 million shares from counterparties. The remaining 2018 Notes were settled at par value, without conversion. In June 2012, with the acquisition of Novellus, the Company assumed $700 million in aggregate principal amount of 2.625% Convertible Senior Notes due May 2041 (collectively with the 2018 Notes, the “Convertible Notes”). The Company pays cash interest at an annual rate of 2.625% , on a semi-annual basis on May 15 and November 15 of each year on the 2041 Notes. The 2041 Notes also have a contingent interest payment provision that may require the Company to pay additional interest, up to 0.60% per year, based on certain thresholds, beginning with the semi-annual interest payment on May 15, 2021, and upon the occurrence of certain events, as outlined in the indenture governing the 2041 Notes. The Company separately accounts for the liability and equity components of the Convertible Notes. The initial debt components of the Convertible Notes were valued based on the present value of the future cash flows using the Company’s borrowing rate at the date of the issuance or assumption for similar debt instruments without the conversion feature, which equals the effective interest rate on the liability component disclosed in the table below, respectively. The equity component was initially valued equal to the principle value of the notes, less the present value of the future cash flows using the Company’s borrowing rate at the date of the issuance or assumption for similar debt instruments without a conversion feature, which equated to the initial debt discount. Under certain circumstances, the Convertible Notes may be converted into shares of the Company’s Common Stock. The number of shares each debenture is convertible into is based on conversion rates, disclosed in the table below. The principal value of Convertible Note conversions in the fiscal year ended June 24, 2018 , were $751.3 million . During the quarter ended June 24, 2018 and in the subsequent period through August 10, 2018, the Company received notice of conversion for an additional $79.4 million principal value of 2041 Notes, which will settle in the quarter ending September 23, 2018. Selected additional information regarding the Convertible Notes outstanding as of June 24, 2018 , and June 25, 2017 , is as follows: June 24, 2018 June 25, 2017 2041 2018 2041 (in thousands, except years, percentages, conversion rate, and conversion price) Carrying amount of permanent equity component, net of tax $ 159,120 $ 89,604 $ 156,374 Carrying amount of temporary equity component, net of tax $ 78,192 $ 15,186 $ 154,675 Remaining amortization period (years) 22.9 0.8 23.8 Fair Value of Notes (Level 2) $ 1,736,653 Conversion rate (shares of common stock per $1,000 principal amount of notes) 30.1361 Conversion price (per share of common stock) $ 33.18 If-converted value in excess of par value $ 1,394,383 Estimated share dilution using average quarterly stock price of $195.01 per share 8,176 Convertible Note Hedges and Warrants Concurrent with the issuance of the 2018 Notes, the Company purchased a convertible note hedge and sold warrants. The warrants settlement is contractually defined as net share settlement. The exercise price is adjusted for certain corporate events, including dividends on the Company’s Common Stock. As of June 24, 2018 , the warrants associated with the 2018 Notes had not been exercised and remained outstanding. In conjunction with the convertible note hedge, counterparties agreed to sell to the Company shares of Common Stock equal to the number of shares issuable upon conversion of the 2018 Notes in full. The convertible note hedge transactions will be settled in net shares and will terminate upon the earlier of the maturity date or the first day none of the respective notes remain outstanding due to conversion or otherwise. Settlement of the convertible note hedge in net shares, based on the number of shares issued upon conversion of the 2018 Notes, on the expiration date would result in the Company receiving net shares equivalent to the number of shares issuable by the Company upon conversion of the 2018 Notes. The exercise price is adjusted for certain corporate events, including dividends on the Company’s Common Stock. During the fiscal year ended June 24, 2018 , the note hedge was partially settled, resulting in the receipt of approximately 4.8 million shares. The following table presents the details of the outstanding warrants as of June 24, 2018 : 2018 Notes (shares in thousands) Warrants: Underlying shares 7,557 Estimated share dilution using average quarterly stock price $195.01 per share 4,770 Exercise price $71.91 Expiration date range August 15 - October 24, 2018 Senior Notes On March 12, 2015, the Company completed a public offering of $500 million aggregate principal amount of the Company’s Senior Notes due March 2020 and $500 million aggregate principal amount of the Company’s Senior Notes due March 2025 . The Company pays interest at an annual rate of 2.75% and 3.80% on the 2020 Notes and 2025 Notes, respectively, on a semi-annual basis on March 15 and September 15 of each year. During the year ended June 26, 2016, the Company entered into a series of interest rate contracts hedging the fair value of a portion of the 2025 Notes par value, whereby the Company receives a fixed rate and pays a variable rate based on a certain benchmark interest rate. Refer to Note 8 for additional information regarding these interest rate contracts. The Company may redeem the 2020 Notes and 2025 Notes at a redemption price equal to 100% of the principal amount of such series (“par”), plus a “make whole” premium as described in the indenture in respect of these notes and accrued and unpaid interest before February 15, 2020 , for the 2020 Notes and before December 15, 2024 , for the 2025 Notes. The Company may redeem the Senior Notes at par, plus accrued and unpaid interest at any time on or after February 15, 2020, for the 2020 Notes and on or after December 24, 2024, for the 2025 Notes. In addition, upon the occurrence of certain events, as described in the indenture, the Company will be required to make an offer to repurchase these notes at a price equal to 101% of the principal amount of the notes, plus accrued and unpaid interest. On June 7, 2016, The Company completed a public offering of $800 million aggregate principal amount of Senior Notes due June 2021 (together with the 2020, and 2025 Notes, the “Senior Notes”). The Company pays interest at an annual rate of 2.80% on the 2021 Notes on a semi-annual basis on June 15 and December 15 of each year. The Company may redeem the 2021 Notes at a redemption price equal to 100% of the principal amount of such series (“par”), plus a “make whole” premium as described in the indenture in respect to the 2021 Notes and accrued and unpaid interest before May 15, 2021 . The Company may redeem the 2021 Notes at par, plus accrued and unpaid interest at any time on or after May 15, 2021 . In addition, upon the occurrence of certain events, as described in the indenture, the Company will be required to make an offer to repurchase the 2021 Notes at a price equal to 101% of the principal amount of the respective note, plus accrued and unpaid interest. Selected additional information regarding the Senior Notes outstanding as of June 24, 2018 , is as follows: Remaining Amortization period Fair Value of Notes (Level 2) (years) (in thousands) 2020 Notes 1.7 $ 497,250 2021 Notes 3.0 $ 786,856 2025 Notes 6.7 $ 497,560 Revolving Credit Facility On October 13, 2017, the Company entered into Amendment No. 2 to Amended and Restated Credit Agreement, (the “2nd Amendment”), which amends the Company’s prior unsecured Credit Agreement, (as amended by the 2nd Amendment, the “Amended Credit Agreement”). Among other things, the Amended Credit Agreement provides for a $500 million increase to the Company’s revolving credit facility, from $750.0 million to $1.25 billion with a syndicate of lenders. The Amended Credit Agreement provides an expansion option that will allow the Company, subject to certain requirements, to request an increase in the facility of up to an additional $600.0 million , for a potential total commitment of $1.85 billion . The facility matures on October 13, 2022 . Interest on amounts borrowed under the credit facility is, at the Company’s option, based on (1) a base rate, defined as the greatest of (a) prime rate, (b) Federal Funds rate plus 0.5% , or (c) one-month LIBOR plus 1.0% , plus a spread of 0.0% to 0.5% , or (2) LIBOR multiplied by the statutory rate, plus a spread of 0.9% to 1.5% , in each case as the applicable spread is determined based on the rating of the Company’s non-credit enhanced, senior unsecured long-term debt. Principal and any accrued and unpaid interest is due and payable upon maturity. Additionally, the Company will pay the lenders a quarterly commitment fee that varies based on the Company’s credit rating. The Amended and Restated Credit Agreement contains affirmative covenants, negative covenants, financial covenants, and events of default. As of June 24, 2018 , the Company had no borrowings outstanding under the credit facility and was in compliance with all financial covenants. Commercial Paper Program On November 13, 2017, the Company established a new commercial paper program under which the Company may issue unsecured commercial paper notes on a private placement basis up to a maximum aggregate principal amount of $1.25 billion . The net proceeds from the CP Program will be used for general corporate purposes, including repurchases of the Company’s Common Stock from time to time and under the Company’s stock repurchase program. As of June 24, 2018 , borrowings under the CP Program totaled $360.0 million with a weighted-average interest rate of 2.33% and maturities of 90 days or less. Amounts available under the CP Program may be re-borrowed. The CP Program is backstopped by the Company’s Revolving Credit Arrangement. Interest Cost The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Convertible Notes, the Senior Notes, the term loan agreement, commercial paper, and and the revolving credit facility during the fiscal years ended June 24, 2018 , June 25, 2017 , and June 26, 2016 . Year Ended June 24, June 25, June 26, (in thousands) Contractual interest coupon $ 77,091 $ 95,195 $ 63,053 Amortization of interest discount 12,225 22,873 35,206 Amortization of issuance costs 2,034 2,414 35,315 Effect of interest rate contracts, net 3 (4,756 ) 359 Total interest cost recognized $ 91,353 $ 115,726 $ 133,933 The increase in interest expense during the 12 months ended June 25, 2017, is primarily the result of the issuance of $2.4 billion of Senior Notes in June 2016, $1.6 billion of which was extinguished in October 2016. The decrease in amortization of issuance costs is primarily due to the termination of the bridge loan financing. The variation in amortization of interest rate contracts is primarily related to the interest rate contracts associated with the $1.6 billion senior notes extinguished in October 2016. |
Retirement and Deferred Compens
Retirement and Deferred Compensation Plans | 12 Months Ended |
Jun. 24, 2018 | |
Retirement Benefits [Abstract] | |
Retirement and Deferred Compensation Plans | Retirement and Deferred Compensation Plans Employee Savings and Retirement Plan The Company maintains a 401(k) retirement savings plan for its eligible employees in the United States. Each participant in the plan may elect to contribute from 1% to 75% of annual eligible earnings to the plan, subject to statutory limitations. The Company makes matching employee contributions in cash to the plan at the rate of 50% of the first 6% of earnings contributed. Employees participating in the 401(k) retirement savings plan are fully vested in the Company matching contributions, and investments are directed by participants. The Company made matching contributions of $21.4 million , $15.2 million , and $13.2 million , in fiscal years 2018 , 2017 , and 2016 , respectively. Deferred Compensation Arrangements The Company has an unfunded, non-qualified deferred compensation plan whereby certain executives may defer a portion of their compensation. Participants earn a return on their deferred compensation based on their allocation of their account balance among various mutual funds. The Company controls the investment of these funds, and the participants remain general creditors of the Company. Participants are able to elect the payment of benefits on a specified date at least three years after the opening of a deferral sub-account or upon retirement. Distributions are made in the form of lump sum or annual installments over a period of up to 20 years as elected by the participant. If no alternate election has been made, a lump sum payment will be made upon termination of a participant’s employment with the Company. As of June 24, 2018 , and June 25, 2017 , the liability of the Company to the plan participants was $188.0 million and $155.7 million , respectively, which was recorded in accrued expenses and other current liabilities on the Consolidated Balance Sheets. As of June 24, 2018 , and June 25, 2017 , the Company had investments in the aggregate amount of $209.0 million and $180.2 million , respectively, which correlate to the deferred compensation obligations, which were recorded in other assets on the Consolidated Balance Sheets. Post-Retirement Healthcare Plan The Company maintains a post-retirement healthcare plan for certain executive and director retirees. Coverage continues through the duration of the lifetime of the retiree or the retiree’s spouse, whichever is longer. The benefit obligation was $37.2 million and $39.9 million as of June 24, 2018 , and June 25, 2017 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 24, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company has certain obligations to make future payments under various contracts; some of these are recorded on its balance sheet and some are not. Obligations that are recorded on the Company’s balance sheet include the Company’s capital lease obligations. Obligations that are not recorded on the Company’s balance sheet include contractual relationships for operating leases, purchase obligations, and certain guarantees. The Company’s commitments relating to capital leases and off-balance sheet agreements are included in the tables below. These amounts exclude $280.4 million of liabilities related to uncertain tax benefits because the Company is unable to reasonably estimate the ultimate amount or time of settlement. See Note 6 - Income Taxes for further discussion. Capital Leases Capital leases reflect building and office equipment leases. The Company’s contractual cash obligations relating to its existing capital leases, including interest, as of June 24, 2018 , were as follows: Payments Due by Fiscal Year: Capital (in thousands) 2019 $ 3,948 2020 4,491 2021 4,854 2022 8,765 2023 4,351 Thereafter 37,707 Total 64,116 Interest on capital leases 16,272 Current portion of capital leases 1,498 Long-term portion of capital leases $ 46,346 Operating Leases and Related Guarantees The Company leases the majority of its administrative, R&D and manufacturing facilities, regional sales/service offices, and certain equipment under non-cancelable operating leases. Certain of the Company’s facility leases for buildings located at its Fremont, California headquarters; Tualatin, Oregon campus; and certain other facility leases provide the Company with options to extend the leases for additional periods or to purchase the facilities. Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation. The Company’s rental expense for facilities occupied during fiscal years 2018 , 2017 , and 2016 was $23.5 million , $20.2 million , and $16.3 million , respectively. The Company has operating leases regarding certain improved properties in Fremont and Livermore, California (the “Operating Leases”). The Company is required to maintain cash collateral in an aggregate of approximately $250.0 million in separate interest-bearing accounts as security for the Company’s obligations. These amounts are recorded with other restricted cash and investments in the Company’s Consolidated Balance Sheet as of June 24, 2018 . During the term of the Operating Leases and when the terms of the Operating Leases expire, the property subject to those Operating Leases may be re-marketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate guarantee made by the Company under the Operating Leases is generally no more t h an $220.4 million ; however, under certain default circumstances, the guarantee with regard to an Operating Lease may be 100% of the lessor’s aggregate investment in the applicable property, which in no case will exceed $250.0 million , in the aggregate. The Company’s contractual cash obligations with respect to operating leases, excluding the residual value guarantees discussed above, as of June 24, 2018 , were as follows: Payments Due by Fiscal Year: Operating (in thousands) 2019 $ 22,117 2020 18,672 2021 13,963 2022 4,879 2023 3,677 Thereafter 11,035 Total $ 74,343 Other Guarantees The Company has issued certain indemnifications to its lessors for taxes and general liability under some of its agreements. The Company has entered into insurance contracts that are intended to limit its exposure to such indemnifications. As of June 24, 2018 , the Company had not recorded any liability on its Consolidated Financial Statements in connection with these indemnifications, as it does not believe that it is probable that any amounts will be paid under these guarantees. Generally, the Company indemnifies, under pre-determined conditions and limitations, its customers for infringement of third-party intellectual property rights by the Company’s products or services. The Company seeks to limit its liability for such indemnity to an amount not to exceed the sales price of the products or services subject to its indemnification obligations. The Company does not believe that it is probable that any material amounts will be paid under these guarantees. The Company provides guarantees and standby letters of credit to certain parties as required for certain transactions initiated during the ordinary course of business. As of June 24, 2018 , the maximum potential amount of future payments that the Company could be required to make under these arrangements and letters of credit was $21.6 million . The Company does not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid. Purchase Obligations Purchase obligations consist of non-cancelable significant contractual obligations either on an annual basis or over multi-year periods. The contractual cash obligations and commitments table presented below contains the Company’s minimum obligations at June 24, 2018 , under these arrangements and others. For obligations with cancellation provisions, the amounts included in the following table were limited to the non-cancelable portion of the agreement terms or the minimum cancellation fee. Actual expenditures will vary based on the volume of transactions and length of contractual service provided. The Company’s commitments related to these agreements as of June 24, 2018 , were as follows: Payments Due by Fiscal Year: Purchase (in thousands) 2019 $ 353,295 2020 6,281 2021 6,036 2022 3,287 2023 3,165 Thereafter 162 Total $ 372,226 Warranties The Company provides standard warranties on its systems. The liability amount is based on actual historical warranty spending activity by type of system, customer, and geographic region, modified for any known differences such as the impact of system reliability improvements. Changes in the Company’s product warranty reserves were as follows: Year Ended June 24, June 25, (in thousands) Balance at beginning of period $ 161,981 $ 100,321 Warranties issued during the period 235,252 188,813 Settlements made during the period (196,680 ) (135,213 ) Changes in liability for pre-existing warranties (8,073 ) 8,060 Balance at end of period $ 192,480 $ 161,981 Legal Proceedings While the Company is not currently a party to any legal proceedings that it believes material, the Company is either a defendant or plaintiff in various actions that have arisen from time to time in the normal course of business, including intellectual property claims. The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. Based on current information, the Company does not believe that a material loss from known matters is probable and therefore has not recorded an accrual for litigation or other contingencies related to existing legal proceedings. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Jun. 24, 2018 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program In March 2018, the Board of Directors authorized the Company to repurchase up to an additional $2.0 billion of Common Stock. The new authorization increases the share repurchase authorization granted in November 2017 to an aggregate of $4.0 billion of Common Stock, and supplements the remaining balances from any prior authorizations. These repurchases can be conducted on the open market or as private purchases and may include the use of derivative contracts with large financial institutions, in all cases subject to compliance with applicable law. Repurchases are funded using the Company’s cash and available credit facilities. This repurchase program has no termination date and may be suspended or discontinued at any time. Repurchases under the repurchase program were as follows during the periods indicated: Period Total Number Total Average (1) Amount Available (in thousands, except per share data) Available balance as of June 25, 2017 $ 282,141 Quarter ended September 24, 2017 1,779 $ 157,938 $ 158.40 $ 124,203 Board authorization, $2.0 billion increase, November 2017 $ 2,124,203 Quarter ended December 24, 2017 3,709 $ 1,089,744 $ 196.28 $ 1,034,459 Board authorization, $2.0 billion increase, March 2018 $ 3,034,459 Quarter ended March 25, 2018 1,019 $ — $ — $ 3,034,459 Quarter ended June 24, 2018 7,702 $ 1,300,821 $ 191.03 $ 1,733,638 (1) Average price paid per share excludes effect of accelerated share repurchases; see additional disclosure below regarding our accelerated share repurchase activity during the fiscal year. In addition to the shares repurchased under the Board-authorized repurchase program shown above, the Company acquired 577 thousand shares at a total cost of $104.9 million during the 12 months ended June 24, 2018 , which the Company withheld through net share settlements to cover minimum tax withholding obligations upon the vesting of restricted stock unit awards granted under the Company’s equity compensation plan. The shares retained by the Company through these net share settlements are not a part of the Board-authorized repurchase program but instead are authorized under the Company’s equity compensation plans. Accelerated Share Repurchase Agreements Settled in the 2018 Fiscal Year On May 9, 2018, the Company entered into two separate accelerated share repurchase agreements (collectively, the "May 2018 ASR") with two financial institutions to repurchase a total of $1 billion of Common Stock. The Company took an initial delivery of approximately 3,505,000 shares, which represented 70% of the prepayment amount divided by the Company’s closing stock price on May 9, 2018. The total number of shares received under the May 2018 ASR was based upon the average daily volume weighted average price of the Company’s Common Stock during the repurchase period, less an agreed upon discount. Final settlement of these two transactions occurred on June 8, 2018 and June 11, 2018. Approximately 1,640,000 shares were received at final settlement which resulted in a weighted–average price of approximately $194.35 for the transaction period. On November 20, 2017, the Company entered into four separate accelerated share repurchase agreements (collectively, the " November 2017 ASR") with two financial institutions to repurchase a total of $1 billion of Common Stock. The Company took an initial delivery of 3,254,300 shares, which represented 70% of the prepayment amount divided by the Company’s closing stock price on November 20, 2017. The total number of shares received under the November 2017 ASR was based upon the average daily volume weighted average price of the Company’s Common Stock during the repurchase period, less an agreed upon discount. Final settlement of two of the transactions occurred on February 1, 2018 and February 2, 2018. Approximately 1,019,000 shares were received at final settlement, which resulted in a weighted-average share price of approximately $189.03 for the transaction period. Final settlement for the remaining transactions occurred on April 24, 2018 and May 23, 2018. Approximately 984,000 shares were received at final settlement, which resulted in a weighted-average share price of approximately $191.55 for the transaction period. On April 19, 2017, the Company entered into two separate accelerated share repurchase agreements (collectively, the “April 2017 ASR”) with two financial institutions to repurchase a total of $500 million of Common Stock. The Company took an initial delivery of approximately 2,570,000 shares, which represented 70% of the prepayment amount divided by the Company’s closing stock price on April 19, 2017. The total number of shares received under the April 2017 ASR was based upon the average daily volume weighted average price of our Common Stock during the repurchase period, less an agreed upon discount. The April 2017 ASR settled on June 30, 2017. Approximately 780,000 shares were received at final settlement, which resulted in a weighted-average share price of approximately $149.16 for the transaction period. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Jun. 24, 2018 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The components of accumulated other comprehensive loss, net of tax at the end of the period, as well as the activity during the period, were as follows: Accumulated Accumulated Accumulated Accumulated Total (in thousands) Balance as of June 25, 2017 $ (42,371 ) $ (811 ) $ 1,106 $ (19,624 ) $ (61,700 ) Other comprehensive income (loss) before reclassifications 5,703 (6,960 ) (45,382 ) 129 (46,510 ) Losses (gains) reclassified from accumulated other comprehensive income (loss) to net income 3,946 (2) 3,729 (1) 8,996 (2) — 16,671 Securities impairment — — 34,090 — 34,090 Net current-period other comprehensive income (loss) 9,649 (3,231 ) (2,296 ) 129 4,251 Balance as of June 24, 2018 $ (32,722 ) $ (4,042 ) $ (1,190 ) $ (19,495 ) $ (57,449 ) __________________________________ (1) Amount of after-tax gain reclassified from accumulated other comprehensive income into net income located in revenue: $10,030 loss; cost of goods sold: $4,393 gain; selling, general, and administrative expenses: $1,994 gain; and other income and expense: $86 loss. (2) Amount of after-tax gain reclassified from accumulated other comprehensive income into net income located in other expense, net. Tax related to other comprehensive income, and the components thereto, for the years ended June 24, 2018, June 25, 2017 and June 26, 2016 was not material. |
Segment, Geographic Information
Segment, Geographic Information and Major Customers | 12 Months Ended |
Jun. 24, 2018 | |
Segment Reporting [Abstract] | |
Segment, Geographic Information and Major Customers | Segment, Geographic Information, and Major Customers The Company operates in one reportable business segment: manufacturing and servicing of wafer processing semiconductor manufacturing equipment. The Company’s material operating segments qualify for aggregation due to their customer base and similarities in economic characteristics, nature of products and services, and processes for procurement, manufacturing, and distribution. The Company operates in seven geographic regions: United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan. For geographical reporting, revenue is attributed to the geographic location in which the customers’ facilities are located, while long-lived assets are attributed to the geographic locations in which the assets are located. Revenues and long-lived assets by geographic region were as follows: Year Ended June 24, June 25, June 26, Revenue: (in thousands) Korea $ 3,832,798 $ 2,480,329 $ 1,057,331 Japan 1,882,799 1,041,969 983,821 China 1,784,436 1,023,195 1,039,951 Taiwan 1,397,978 2,095,669 1,485,037 United States 820,438 629,937 495,123 Southeast Asia 781,360 401,877 605,236 Europe 577,189 340,644 219,394 Total revenue $ 11,076,998 $ 8,013,620 $ 5,885,893 June 24, June 25, June 26, Long-lived assets: (in thousands) United States $ 784,469 $ 575,264 $ 529,316 Europe 73,336 77,211 81,377 Korea 24,312 19,982 17,281 Taiwan 7,922 7,970 8,647 China 5,466 1,906 1,339 Southeast Asia 3,715 2,179 668 Japan 3,327 1,083 980 $ 902,547 $ 685,595 $ 639,608 In fiscal year 2018 , five customers accounted for approximately 25% , 14% , 14% , 13% , and 12% of total revenues, respectively. In fiscal year 2017 , five customers accounted for approximately 23% , 16% , 12% , 11% , and 10% of total revenues, respectively. In fiscal year 2016 , four customers accounted for approximately 17% , 16% , 12% , and 10% of total revenues, respectively. No other customers accounted for more than 10% of total revenues. |
Business Combinations
Business Combinations | 12 Months Ended |
Jun. 24, 2018 | |
Business Combinations [Abstract] | |
Business Combinations | Business Combinations Coventor Acquisition On August 28, 2017, the Company completed the acquisition of the outstanding shares of Coventor, Inc., a privately-held company that is a provider of simulation and modeling solutions for semiconductor process technology, MEMS, and the Internet of Things, for a total purchase consideration of $137.6 million . The following table represents the purchase price allocation and summarizes the aggregate estimated fair value of the net assets acquired on the closing date of the acquisition: Purchase Price Allocation (in thousands) Intangible assets $ 48,500 Assets acquired (including cash of $8.7 million) 11,463 Goodwill 98,917 Liabilities assumed (21,269 ) Fair value of net assets acquired $ 137,611 The Company elected to close the measurement period as of June 24, 2018. The operating results of the acquired entity, from the date of acquisition, have been included in the Company’s Consolidated Financial Statements for fiscal year ended June 24, 2018 . Goodwill represents the excess of the purchase price over the net tangible and identifiable intangible assets acquired. None of the goodwill recognized is deductible for income tax purposes. The identified intangible assets assumed in the acquisition of Coventor were recognized as follows based upon their fair values as of August 28, 2017: Fair Value Weighted-Average Estimated Useful Life (In thousands) (In years) Existing technology $ 26,200 6.0 Customer relationships 15,000 6.0 Trade names and other intangible assets 7,300 6.4 Total identified intangible assets $ 48,500 6.0 Acquired existing technology represents the fair value of products that have reached technological feasibility and are a part of Coventor’s product offerings and customer relationships represent the fair values of the underlying relationships and agreements with Coventor’s customers. During the years ended June 24, 2018 , and June 25, 2017 , the Company expensed as incurred acquisition-related costs of $2.9 million and $9.8 million , respectively, within selling, general, and administrative expense in the Consolidated Statement of Operations. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 24, 2018 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition: The Company recognizes revenue when persuasive evidence of an arrangement exists, delivery has occurred and title has passed or services have been rendered, the selling price is fixed or determinable, collection of the receivable is reasonably assured, and the Company has received customer acceptance or is otherwise released from its customer acceptance obligations. If terms of the sale provide for a lapsing customer acceptance period, the Company recognizes revenue upon the expiration of the lapsing acceptance period or customer acceptance, whichever occurs first. If the practices of a customer do not provide for a written acceptance or the terms of sale do not include a lapsing acceptance provision, the Company recognizes revenue when it can be reliably demonstrated that the delivered system meets all of the agreed-to customer specifications. In situations with multiple deliverables, the Company recognizes revenue upon the delivery of the separate elements to the customer and when the Company receives customer acceptance or is otherwise released from its customer acceptance obligations. The Company allocates revenue from multiple-element arrangements among the separate elements using their relative selling prices based on the Company’s best estimate of selling price. The Company’s sales arrangements do not include a general right of return. The maximum revenue recognized on a delivered element is limited to the amount that is not contingent upon the delivery of additional items. The Company generally recognizes revenue related to sales of spare parts and system upgrade kits upon shipment. The Company generally recognizes revenue related to services upon completion of the services requested by a customer order. The Company recognizes revenue for extended maintenance service contracts with a fixed payment amount on a straight-line basis over the term of the contract. When goods or services have been delivered to the customer but all conditions for revenue recognition have not been met, deferred revenue and deferred costs are recognized in deferred profit on the Consolidated Balance Sheet. |
Inventory Valuation | Inventory Valuation: Inventories are stated at the lower of cost or net realizable value using standard costs that approximate actual costs on a first-in, first-out basis. Finished goods are reported as inventories until the point of title transfer to the customer. Unless specified in the terms of sale, title generally transfers at the physical transfer of the products to the freight carriers. Transfer of title for shipments to Japanese customers occurs at the time of customer acceptance. Management evaluates the need to record adjustments for impairment of inventory at least quarterly. The Company’s policy is to assess the valuation of all inventories including manufacturing raw materials, work-in-process, finished goods, and spare parts in each reporting period. Obsolete inventory or inventory in excess of management’s estimated usage requirement is written down to its estimated market value if less than cost. Estimates of market value include but are not limited to management’s forecasts related to the Company’s future manufacturing schedules, customer demand, technological and/or market obsolescence, general semiconductor market conditions, and possible alternative uses. If future customer demand or market conditions are less favorable than the Company’s projections, additional inventory write-downs may be required and would be reflected in cost of goods sold in the period in which the revision is made. |
Warranty | Warranty: Typically, the sale of semiconductor capital equipment includes providing parts and service warranties to customers as part of the overall price of the system. The Company provides standard warranties for its systems. The Company records a provision for estimated warranty expenses to cost of sales for each system when it recognizes revenue. The Company does not maintain general or unspecified reserves; all warranty reserves are related to specific systems. All actual or estimated parts and labor costs incurred in subsequent periods are charged to those established reserves on a system-by-system basis. While the Company periodically monitors the performance and cost of warranty activities, if actual costs incurred are different than its estimates, the Company may recognize adjustments to provisions in the period in which those differences arise or are identified. In addition to the provision of standard warranties, the Company offers customer-paid extended warranty services. Revenues for extended maintenance and warranty services with a fixed payment amount are recognized on a straight-line basis over the term of the contract. Related costs are recorded as incurred. |
Equity-based Compensation - Employee Stock Purchase Plan and Employee Stock Plans | Equity-based Compensation — Employee Stock Plans: The Company recognizes the fair value of equity-based compensation expense. The Company determines the fair value of its RSUs, excluding market-based performance RSUs, based upon the fair market value of Company’s Common Stock at the date of grant, discounted for dividends. The Company estimates the fair value of its market-based performance RSUs using a Monte Carlo simulation model at the date of the grant. The Company estimates the fair value of its stock options using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award. The Company amortizes the fair value of equity-based awards over the vesting periods of the award, and the Company has elected to use the straight-line method of amortization. |
Income Taxes | Income Taxes: Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. Realization of its net deferred tax assets is dependent on future taxable income. The Company believes it is more likely than not that such assets will be realized; however, ultimate realization could be negatively impacted by market conditions and other variables not known or anticipated at this time. In the event that the Company determined that it will not be able to realize all or part of its net deferred tax assets, an adjustment will be charged to earnings in the period such determination was made. Likewise, if the Company later determines that it is more likely than not that the deferred tax assets will be realized, then the previously provided valuation allowance will be reversed. The Company recognizes the benefit from a tax position only if it is more likely than not that the position will be sustained upon audit based solely on the technical merits of the tax position. The Company’s policy is to include interest and penalties related to unrecognized tax benefits as a component of income tax expense. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets: The valuation of intangible assets acquired in a business combination requires the use of management estimates including but not limited to estimating future expected cash flows from assets acquired and determining discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. Estimates associated with the accounting for acquisitions may change as additional information becomes available. Goodwill represents the amount by which the purchase price in each business combination exceeds the fair value of the net tangible and identifiable intangible assets acquired. Each component of the Company for which discrete financial information is available and for which management regularly reviews the results of operations is considered a reporting unit. All goodwill acquired in a business combination is assigned to one or more reporting units as of the acquisition date. Goodwill is assigned to the Company’s reporting units that are expected to benefit from the synergies of the combination. The goodwill assigned to a reporting unit is the difference between the acquisition consideration assigned to the reporting unit on a relative fair value basis and the fair value of acquired assets and liabilities that can be specifically attributed to the reporting unit. The Company tests goodwill and identifiable intangible assets with indefinite useful lives for impairment at least annually. The Company amortizes intangible assets with estimable useful lives over their respective estimated useful lives, and the Company reviews for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable and the carrying amount exceeds its fair value. The Company reviews goodwill at least annually for impairment. If certain events or indicators of impairment occur between annual impairment tests, the Company would perform an impairment test at that date. In testing for a potential impairment of goodwill, the Company (1) allocates goodwill to its reporting units to which the acquired goodwill relates, (2) estimates the fair value of its reporting units, and (3) determines the carrying value (book value) of those reporting units. Furthermore, if the estimated fair value of a reporting unit is less than the carrying value, the Company must estimate the fair value of all identifiable assets and liabilities of that reporting unit, in a manner similar to a purchase price allocation for an acquired business. This can require independent valuations of certain internally generated and unrecognized intangible assets such as in-process R&D and developed technology. Only after this process is completed can the amount of goodwill impairment, if any, be determined. In the Company’s goodwill impairment process, it first assesses qualitative factors to determine whether it is necessary to perform a quantitative analysis. The Company does not calculate the fair value of a reporting unit unless the Company determines, based on a qualitative assessment, that it is more-likely-than-not that its fair value is less than its carrying amount. The Company performs an annual goodwill impairment analysis as of the first day of its fourth fiscal quarter. The Company did no t record impairments of goodwill during the years ended June 24, 2018 , June 25, 2017 , or June 26, 2016 . The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis. The Company determines the fair value of its reporting units by using an income approach. Under the income approach, the Company determines fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. In estimating the fair value of a reporting unit, the Company makes estimates and judgments about the future cash flows of its reporting units, including estimated growth rates and assumptions about the economic environment. Although the Company’s cash flow forecasts are based on assumptions that are consistent with the plans and estimates it is using to manage the underlying businesses, there is significant judgment involved in determining the cash flows attributable to a reporting unit. In addition, the Company makes certain judgments about allocating shared assets to the estimated balance sheets of its reporting units. Changes in judgment on these assumptions and estimates could result in a goodwill impairment charge. As a result, several factors could result in impairment of a material amount of the Company’s goodwill balance in future periods, including but not limited to: (1) weakening of the global economy, weakness in the semiconductor equipment industry, or failure of the Company to reach its internal forecasts, which could impact the Company’s ability to achieve its forecasted levels of cash flows and reduce the estimated discounted cash flow value of its reporting units and (2) a decline in the Company’s stock price and resulting market capitalization and to the extent the Company determines that the decline is sustained and indicates a reduction in the fair value of the Company’s reporting units below their carrying value. Further, the value assigned to intangible assets, other than goodwill, is based on estimates and judgments regarding expectations such as the success and lifecycle of products and technology acquired. If actual product acceptance differs significantly from the estimates, the Company may be required to record an impairment charge to write down the asset to its realizable value. |
Impairment of Long-lived Assets (Excluding Goodwill and indefinite-lived Intangibles) | Impairment of Long-lived Assets (Excluding Goodwill): The Company routinely considers whether indicators of impairment of long-lived assets are present. If such indicators are present, the Company determines whether the sum of the estimated undiscounted cash flows attributable to the assets is less than their carrying value. If the sum is less, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their respective fair values. Fair value is determined by discounted future cash flows, appraisals, or other methods. The Company recognizes an impairment charge to the extent the present value of anticipated net cash flows attributable to the asset are less than the asset’s carrying value. The fair value of the asset then becomes the asset’s new carrying value, which the Company depreciates over the remaining estimated useful life of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value. |
Fiscal Year | Fiscal Year: The Company follows a 52/53-week fiscal reporting calendar, and its fiscal year ends on the last Sunday of June each year. The Company’s most recent fiscal years ended on June 24, 2018 , June 25, 2017 , and June 26, 2016 , and each included 52 weeks. |
Principles of Consolidation | Principles of Consolidation: The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Cash Equivalents and Investments | Cash Equivalents and Investments: Investments purchased with an original maturity of three months or less are considered cash equivalents. The Company also invests in certain mutual funds, which include equity and fixed- income securities, related to its obligations under its deferred compensation plan, and such investments are classified as trading securities on the consolidated balance sheets. All of the Company’s other investments are classified as available-for-sale at the respective balance sheet dates. The Company accounts for its investment portfolio at fair value. Investments classified as trading securities are recorded at fair value based upon quoted market prices. Differences between the cost and fair value of trading securities are recognized as “Other income (expense)” in the Consolidated Statement of Operations. The investments classified as available-for-sale are recorded at fair value based upon quoted market prices, and difference between the cost and fair value of available-for-sale securities is presented as a component of accumulated other comprehensive income (loss). Unrealized losses on available-for-sale securities are charged against other income (expense) when a decline in fair value is determined to be other than temporary. The Company considers several factors to determine whether a loss is other than temporary. These factors include but are not limited to (1) the extent to which the fair value is less than cost basis, (2) the financial condition and near-term prospects of the issuer, (3) the length of time a security is in an unrealized loss position, and (4) the Company’s ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The Company’s ongoing consideration of these factors could result in additional impairment charges in the future, which could adversely affect its results of operation. An other-than-temporary impairment is triggered when there is an intent to sell the security, it is more-likely-than-not that the security will be required to be sold before recovery, or the security is not expected to recover the entire amortized cost basis of the security. Other-than-temporary impairments attributed to credit losses are recognized in the income statement. The specific identification method is used to determine the realized gains and losses on investments. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts: The Company evaluates its allowance for doubtful accounts based on a combination of factors. In circumstances where specific invoices are deemed uncollectible, the Company provides a specific allowance for bad debt against the amount due to reduce the net recognized receivable to the amount it reasonably believes will be collected. The Company also provides allowances based on its write-off history. |
Property and Equipment | Property and Equipment: Property and equipment is stated at cost. Equipment is depreciated by the straight-line method over the estimated useful lives of the assets, generally three to five years. Furniture and fixtures are depreciated by the straight-line method over the estimated useful lives of the assets, generally five years. Software is amortized by the straight-line method over the estimated useful lives of the assets, generally three to five years. Buildings are depreciated by the straight-line method over the estimated useful lives of the assets, generally twenty-five years. Leasehold improvements are generally amortized by the straight-line method over the shorter of the life of the related asset or the term of the underlying lease. Amortization of capital leases is included with depreciation expense. |
Derivative Financial Instruments | Derivative Financial Instruments: In the normal course of business, the Company’s financial position is routinely subjected to market risk associated with foreign currency exchange rate fluctuations. The Company’s policy is to mitigate the effect of these exchange rate fluctuations on certain foreign currency denominated business exposures. The Company has a policy that allows the use of derivative financial instruments to hedge foreign currency exchange rate fluctuations on forecasted revenue and expenses and net monetary assets or liabilities denominated in various foreign currencies. The Company carries derivative financial instruments (derivatives) on the balance sheet at their fair values. The Company does not use derivatives for trading or speculative purposes. The Company does not believe that it is exposed to more than a nominal amount of credit risk in its interest rate and foreign currency hedges, as counterparties are large, global and well-capitalized financial institutions. The Company’s exposures are in liquid currencies (Japanese yen, Swiss francs, euros, Taiwanese dollars, Chinese renminbi, Singapore dollars, and Korean won), so there is minimal risk that appropriate derivatives to maintain the Company’s hedging program would not be available in the future. To hedge foreign currency risks, the Company uses foreign currency exchange forward and option contracts, where possible and prudent. These hedge contracts are valued using standard valuation formulas with assumptions about future foreign currency exchange rates derived from existing exchange rates, interest rates, and other market factors. The Company considers its most current forecast in determining the level of foreign currency denominated revenue and expenses to hedge as cash flow hedges. The Company combines these forecasts with historical trends to establish the portion of its expected volume to be hedged. The revenue and expenses are hedged and designated as cash flow hedges to protect the Company from exposures to fluctuations in foreign currency exchange rates. If the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the related hedge gains and losses on the cash flow hedge are reclassified from accumulated other comprehensive income (loss) to other income (expense), net on the Consolidated Statement of Operations at that time. |
Guarantees | Guarantees: The Company has certain operating leases that contain provisions whereby the properties subject to the operating leases may be remarketed at lease expiration. The Company has guaranteed to the lessor an amount approximating the lessor’s investment in the property. Also, the Company’s guarantees generally include certain indemnifications to its lessors under operating lease agreements for environmental matters, potential overdraft protection obligations to financial institutions related to one of the Company’s subsidiaries, indemnifications to the Company’s customers for certain infringement of third-party intellectual property rights by its products and services, and the Company’s warranty obligations under sales of its products. |
Foreign Currency Translation | Foreign Currency Translation: The Company’s non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, primarily generate and expend cash in their local currency. Accordingly, all balance sheet accounts of these local functional currency subsidiaries are translated into U.S. dollars at the fiscal period-end exchange rate, and income and expense accounts are translated into U.S. dollars using average rates in effect for the period, except for costs related to those balance sheet items that are translated using historical exchange rates. The resulting translation adjustments are recorded as cumulative translation adjustments and are a component of accumulated other comprehensive income (loss). Translation adjustments are recorded in other income (expense), net, where the U.S. dollar is the functional currency. |
Equity-based Compensation Pla29
Equity-based Compensation Plans (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Recognized Equity Based Compensation Expenses and Benefits | The Company recognized the following equity-based compensation expense and benefits in the Consolidated Statements of Operations: Year Ended June 24, June 25, June 26, (in thousands) Equity-based compensation expense $ 172,216 $ 149,975 $ 142,348 Income tax benefit recognized related to equity-based compensation $ 87,505 $ 38,381 $ 37,814 Income tax benefit realized from the exercise and vesting of options and RSUs $ 90,297 $ 92,749 $ 67,756 |
Summary of Stock Plan Transactions | The following table summarizes restricted stock activity: Service-based RSUs Outstanding Market-based RSUs Outstanding Number of Weighted-Average Number of Weighted-Average June 28, 2015 4,040,947 $ 60.98 913,141 $ 56.37 Granted 1,771,599 72.14 459,252 70.58 Vested (2,445,902 ) 54.91 (293,802 ) 46.77 Forfeited or canceled (110,131 ) 69.17 — — June 26, 2016 3,256,513 $ 71.34 1,078,591 $ 63.12 Granted 1,224,877 114.13 435,694 111.75 Vested (1,677,318 ) 69.10 (592,321 ) 46.67 Forfeited or canceled (116,466 ) 76.76 (59,509 ) 66.81 June 25, 2017 2,687,606 $ 92.01 862,455 $ 83.83 Granted 964,391 183.97 285,866 170.15 Vested (1,362,369 ) 87.80 (407,024 ) 76.88 Forfeited or canceled (96,540 ) 108.67 (47,571 ) 91.36 June 24, 2018 2,193,088 $ 134.34 693,726 $ 104.59 The following table summarizes stock option activity: Options Outstanding Number of Weighted-Average June 28, 2015 835,832 $ 37.44 Granted 196,167 $ 75.57 Exercised (123,726 ) $ 24.92 Forfeited or expired (862 ) $ 21.43 June 26, 2016 907,411 $ 47.41 Granted 90,128 $ 119.67 Exercised (389,460 ) $ 33.92 Forfeited or expired (14,020 ) $ 69.81 June 25, 2017 594,059 $ 66.69 Granted 63,980 $ 190.07 Exercised (166,481 ) $ 55.62 Forfeited or expired (8,630 ) $ 84.44 June 24, 2018 482,928 $ 86.53 |
Outstanding and Exercisable Options by Price Range | Outstanding and exercisable options presented by price range at June 24, 2018 , were as follows: Range of Exercise Prices Options Outstanding Options Exercisable Number of Weighted-Average Weighted-Average Number of Weighted-Average Weighted-Average $11.09-$23.59 33,918 1.49 $ 18.97 33,918 1.49 $ 18.97 $28.73-$35.68 39,060 2.63 $ 31.29 39,060 2.63 $ 31.29 $42.61-$51.76 75,415 2.03 $ 47.30 75,415 2.03 $ 47.30 $75.57-$190.07 334,535 5.08 $ 108.67 155,504 4.33 $ 83.58 $11.09-$190.07 482,928 4.15 $ 86.53 303,897 3.23 $ 60.65 |
Schedule of Stock Options Weighted Average Assumptions | The fair value of the Company’s stock options granted during fiscal years 2018 , 2017 , and 2016 was estimated using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award: Year Ended June 24, June 25, June 26, Expected volatility 34.66 % 28.85 % 33.08 % Risk-free interest rate 2.53 % 1.92 % 1.27 % Expected term (years) 4.74 4.75 4.79 Dividend yield 1.05 % 1.50 % 1.59 % The fair value of the Company’s service-based RSUs was calculated based on fair market value of the Company’s stock at the date of grant, discounted for dividends. The fair value of the Company’s market-based PRSUs granted during fiscal years 2018 , 2017 , and 2016 was calculated using a Monte Carlo simulation model at the date of the grant. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award: Year Ended June 24, June 25, June 26, Expected volatility 34.07 % 27.48 % 29.81 % Risk-free interest rate 2.35 % 1.55 % 0.97 % Expected term (years) 2.92 2.92 2.92 Dividend yield 1.05 % 1.50 % 1.59 % |
Intrinsic Value of Stock Options | The year-end intrinsic value relating to stock options for fiscal years 2018 , 2017 , and 2016 is presented below: Year Ended June 24, June 25, June 26, (in thousands) Intrinsic value - options outstanding $ 43,563 $ 50,551 $ 31,643 Intrinsic value - options exercisable $ 34,661 $ 36,396 $ 29,112 Intrinsic value - options exercised $ 23,925 $ 29,674 $ 6,562 |
Schedule of Market-Based Performance Restricted Stock Units Weighted Average Assumptions | The fair value of the Company’s market-based PRSUs granted during fiscal years 2018 , 2017 , and 2016 was calculated using a Monte Carlo simulation model at the date of the grant. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award: Year Ended June 24, June 25, June 26, Expected volatility 34.07 % 27.48 % 29.81 % Risk-free interest rate 2.35 % 1.55 % 0.97 % Expected term (years) 2.92 2.92 2.92 Dividend yield 1.05 % 1.50 % 1.59 % |
Other Income (Expense), Net (Ta
Other Income (Expense), Net (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Other Income and Expenses [Abstract] | |
Components of Other Income (Expense), Net | The significant components of other income (expense), net, were as follows: Year Ended June 24, June 25, June 26, (in thousands) Interest income $ 85,813 $ 57,858 $ 29,512 Interest expense (97,387 ) (117,734 ) (134,773 ) Gains (losses) on deferred compensation plan related assets, net 14,692 17,880 (3,995 ) Loss on impairment of investments (42,456 ) — — Gains (losses) on extinguishment of debt, net 542 (36,252 ) — Foreign exchange (losses) gains, net (3,382 ) (569 ) 308 Other, net (19,332 ) (11,642 ) (5,191 ) $ (61,510 ) $ (90,459 ) $ (114,139 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes were as follows: Year Ended June 24, June 25, June 26, (in thousands) United States $ 128,190 $ 7,553 $ (113,607 ) Foreign 3,023,599 1,804,120 1,073,724 $ 3,151,789 $ 1,811,673 $ 960,117 |
Components of Provision (Benefit) for Income Taxes | Significant components of the provision (benefit) for income taxes attributable to income before income taxes were as follows: Year Ended June 24, June 25, June 26, (in thousands) Federal: Current $ 630,148 $ (70,858 ) $ 1,426 Deferred 12,871 99,700 (38,616 ) 643,019 28,842 (37,190 ) State: Current 5,348 (963 ) 2,892 Deferred (3,273 ) (2,246 ) (7,600 ) 2,075 (3,209 ) (4,708 ) Foreign: Current 132,566 85,479 90,752 Deferred (6,552 ) 2,798 (2,786 ) 126,014 88,277 87,966 Total provision for income taxes $ 771,108 $ 113,910 $ 46,068 |
Components of Net Deferred Tax Assets and Liabilities | Significant components of the Company’s net deferred tax assets and liabilities were as follows: June 24, June 25, (in thousands) Deferred tax assets: Tax carryforwards $ 206,073 $ 175,595 Allowances and reserves 118,559 170,752 Equity-based compensation 16,189 25,828 Inventory valuation differences 14,021 19,602 Prepaid cost sharing 65,644 133,831 Other 16,514 20,175 Gross deferred tax assets 437,000 545,783 Valuation allowance (199,839 ) (114,011 ) Net deferred tax assets 237,161 431,772 Deferred tax liabilities: Intangible assets (21,558 ) (30,944 ) Convertible debt (60,252 ) (153,047 ) Capital assets (61,429 ) (72,727 ) Amortization of goodwill (10,738 ) (15,582 ) Unremitted earnings of foreign subsidiaries (6,656 ) (302,663 ) Other (7,955 ) (9,844 ) Gross deferred tax liabilities (168,588 ) (584,807 ) Net deferred tax assets (liabilities) $ 68,573 $ (153,035 ) |
Reconciliation of Income Tax Expense Provided at Federal Statutory Rate to Actual Income Tax Expense (Benefit) | A reconciliation of income tax expense provided at the federal statutory rate ( 28.27% in fiscal year 2018 and 35% in fiscal years 2017 and 2016 ) to actual income tax expense (benefit) is as follows: Year Ended June 24, June 25, June 26, (in thousands) Income tax expense computed at federal statutory rate $ 891,011 $ 634,086 $ 336,041 State income taxes, net of federal tax benefit (50,585 ) (11,973 ) (14,070 ) Foreign income taxed at different rates (939,808 ) (352,860 ) (265,123 ) Settlements and reductions in uncertain tax positions (33,367 ) (144,519 ) — Tax credits (69,301 ) (37,713 ) (48,277 ) State valuation allowance, net of federal tax benefit 57,302 12,070 17,948 Equity-based compensation (35,875 ) 13,187 12,366 Other permanent differences and miscellaneous items 43,214 1,632 7,183 U.S. tax reform impacts 908,517 — — $ 771,108 $ 113,910 $ 46,068 |
Changes in Balance of Gross Unrecognized Tax Benefits | The aggregate changes in the balance of gross unrecognized tax benefits were as follows: (in thousands) Balance as of June 28, 2015 $ 363,552 Lapse of statute of limitations (10,992 ) Increases in balances related to tax positions taken during prior periods 18,200 Decreases in balances related to tax positions taken during prior periods (421 ) Increases in balances related to tax positions taken during current period 47,093 Balance as of June 26, 2016 417,432 Settlements and effective settlements with tax authorities (6,691 ) Lapse of statute of limitations (113,491 ) Increases in balances related to tax positions taken during prior periods 6,557 Decreases in balances related to tax positions taken during prior periods (11,528 ) Increases in balances related to tax positions taken during current period 47,168 Balance as of June 25, 2017 339,447 Settlements and effective settlements with tax authorities (693 ) Lapse of statute of limitations (88,837 ) Increases in balances related to tax positions taken during prior periods 2,044 Decreases in balances related to tax positions taken during prior periods (1,320 ) Increases in balances related to tax positions taken during current period 54,772 Balance as of June 24, 2018 $ 305,413 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Numerators and Denominators of Basic and Diluted Computations for Net Income Per Share | The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share. Year Ended June 24, June 25, June 26, (in thousands, except per share data) Numerator: Net income $ 2,380,681 $ 1,697,763 $ 914,049 Denominator: Basic average shares outstanding 161,643 162,222 158,919 Effect of potential dilutive securities: Employee stock plans 2,312 2,058 2,120 Convertible notes 12,258 16,861 13,464 Warrants 4,569 2,629 656 Diluted average shares outstanding 180,782 183,770 175,159 Net income per share - basic $ 14.73 $ 10.47 $ 5.75 Net income per share - diluted $ 13.17 $ 9.24 $ 5.22 |
Schedule of Potentially Dilutive Securities Excluded from EPS Calculations | The following potentially dilutive securities were excluded: Year Ended June 24, June 25, June 26, (in thousands) Options and RSUs 34 34 149 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Fair Value Disclosures [Abstract] | |
Cash, Cash Equivalents, Short-Term Investments, Restricted Cash and Investments and Other Assets Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s cash, cash equivalents, investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of June 24, 2018 , and June 25, 2017 : June 24, 2018 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 708,364 $ — $ — $ 708,364 $ 702,090 $ — $ 6,274 $ — Time deposit 999,666 — — 999,666 749,639 — 250,027 — Level 1: Money market funds 2,341,807 — — 2,341,807 2,341,807 — — — U.S. Treasury and agencies 356,679 — (170 ) 356,509 333,721 22,788 — — Mutual funds 68,568 516 (142 ) 68,942 — — — 68,942 Level 1 total 2,767,054 516 (312 ) 2,767,258 2,675,528 22,788 — 68,942 Level 2: Municipal notes and bonds 152,378 37 (279 ) 152,136 — 152,136 — — Government-sponsored enterprises 110,963 — (201 ) 110,762 99,934 10,828 — — Foreign government bonds 19,986 — (1 ) 19,985 19,985 — — — Corporate notes and bonds 516,955 95 (1,184 ) 515,866 265,081 250,785 — — Mortgage backed securities - residential 804 — (3 ) 801 — 801 — — Level 2 total 801,086 132 (1,668 ) 799,550 385,000 414,550 — — Total $ 5,276,170 $ 648 $ (1,980 ) $ 5,274,838 $ 4,512,257 $ 437,338 $ 256,301 $ 68,942 June 25, 2017 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 551,308 $ — $ — $ 551,308 $ 545,130 $ — $ 6,178 $ — Time deposit 640,666 — — 640,666 390,639 — 250,027 — Level 1: Money market funds 1,423,417 — — 1,423,417 1,423,417 — — — U.S. Treasury and agencies 783,848 684 (2,111 ) 782,421 8,297 774,124 — — Mutual funds 53,247 3,007 — 56,254 — — — 56,254 Level 1 total 2,260,512 3,691 (2,111 ) 2,262,092 1,431,714 774,124 — 56,254 Level 2: Municipal notes and bonds 194,575 308 (7 ) 194,876 — 194,876 — — U.S. Treasury and agencies 12,795 — (167 ) 12,628 — 12,628 — — Government-sponsored enterprises 24,502 — (6 ) 24,496 — 24,496 — — Foreign government bonds 62,917 219 (114 ) 63,022 — 63,022 — — Corporate notes and bonds 2,433,622 4,654 (1,840 ) 2,436,436 10,051 2,426,385 — — Mortgage backed securities - residential 102,760 87 (489 ) 102,358 — 102,358 — — Mortgage backed securities - commercial 65,828 9 (98 ) 65,739 — 65,739 — — Level 2 total 2,896,999 5,277 (2,721 ) 2,899,555 10,051 2,889,504 — — Total $ 6,349,485 $ 8,968 $ (4,832 ) $ 6,353,621 $ 2,377,534 $ 3,663,628 $ 256,205 $ 56,254 |
Schedule of Cash, Cash Equivalents, Short-Term Investments and Restricted Cash and Investments in Unrealized Loss Positions | The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions: June 24, 2018 Unrealized Losses Unrealized Losses Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) U.S. Treasury and agencies $ 332,903 $ (100 ) $ 11,026 $ (70 ) $ 343,929 $ (170 ) Municipal notes and bonds 141,139 (279 ) — — 141,139 (279 ) Mutual funds 25,312 (142 ) — — 25,312 (142 ) Government-sponsored enterprises 110,722 (201 ) — — 110,722 (201 ) Foreign government bonds 19,985 (1 ) — — 19,985 (1 ) Corporate notes and bonds 161,813 (1,092 ) 14,928 (92 ) 176,741 (1,184 ) Mortgage backed securities - residential 801 (3 ) — — 801 (3 ) $ 792,675 $ (1,818 ) $ 25,954 $ (162 ) $ 818,629 $ (1,980 ) |
Schedule of Amortized Cost and Fair Value of Cash Equivalents, Short-Term Investments, Restricted Cash and Investments with Contractual Maturities | The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities as of June 24, 2018 , are as follows: Cost Estimated (in thousands) Due in one year or less $ 4,312,694 $ 4,312,352 Due after one year through five years 181,681 180,352 Due in more than five years 4,863 4,828 $ 4,499,238 $ 4,497,532 |
Schedule of Outstanding Foreign Currency Forward Contracts | As of June 24, 2018 , the Company had the following outstanding foreign currency contracts that were entered into under its cash flow and balance sheet hedge programs: Notional Value Derivatives Designated as Derivatives Not Designated as (in thousands) Foreign currency forward contracts Buy Contracts Sell Contracts Buy Contracts Sell Contracts Japanese yen $ — $ 568,970 $ — $ 267,367 Euro 102,557 — 45,298 — Korean won 28,887 — — 99,408 Taiwan dollar — — 31,859 — Singapore dollar — — 21,376 — British pound sterling — — 15,865 — Swiss franc — — 14,899 — Indian rupee — — 3,220 — Chinese renminbi — — 2,467 — $ 131,444 $ 568,970 $ 134,984 $ 366,775 Foreign currency option contracts Buy Put Sell Call Buy Put Sell Put Japanese yen (1) $ 9,050 $ 9,709 $ — $ — (1) The local currency notional amounts of these foreign currency option contracts are equal to each other. |
Schedule of Fair Value of Derivatives Instruments | The fair value of derivative instruments in the Company’s Consolidated Balance Sheet as of June 24, 2018 , and June 25, 2017 , were as follows: June 24, 2018 June 25, 2017 Fair Value of Derivative Instruments (Level 2) Fair Value of Derivative Instruments (Level 2) Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Balance Fair Balance Fair Balance Fair Balance Fair (in thousands) Derivatives designated as hedging instrument s: Foreign exchange contracts Prepaid $ 7,581 Accrued expenses and other current liabilities $ 8,866 Prepaid $ 8,061 Accrued expenses and other current liabilities $ 2,916 Interest rate contracts, short-term — Accrued expenses and other current liabilities 7,468 — Accrued expenses and other current liabilities 2,833 Interest rate contracts, long-term — Other long-term liabilities 23,720 — Other long-term liabilities 7,269 Derivatives not designated as hedging instrument s: Foreign exchange contracts Prepaid 111 Accrued expenses and other current liabilities 32 Prepaid 213 Accrued expenses and other current liabilities 342 Total derivatives $ 7,692 $ 40,086 $ 8,274 $ 13,360 |
Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations | The effect of derivative instruments designated as cash flow hedges on the Company’s Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”), was as follows: Year Ended June 24, 2018 Location of Gain (Loss) Gain (Loss) Derivatives in Cash Flow Hedging Relationships (in thousands) Foreign exchange contracts Revenue $ (8,305 ) $ (11,284 ) Foreign exchange contracts Cost of goods sold 57 5,218 Foreign exchange contracts SG&A 558 2,654 Foreign exchange contracts Other expense, net — — $ (7,690 ) $ (3,412 ) Derivatives in Fair Value Hedging Relationships Interest rate contracts Other expense, net $ — $ (126 ) Year Ended June 25, 2017 Location of Effective Portion Ineffective Derivatives Designated as Gain (Loss) Gain (Loss) Gain (Loss) (in thousands) Foreign exchange contracts Revenue $ 2,927 $ (12,000 ) $ 6,982 Foreign exchange contracts Cost of goods sold 2,859 666 (686 ) Foreign exchange contracts SG&A 1,128 71 (267 ) Foreign exchange contracts Other expense, net — — (82 ) Interest rate contracts Other expense, net — 1,727 — $ 6,914 $ (9,536 ) $ 5,947 The effect of derivative instruments not designated as cash flow hedges on the Company’s Consolidated Statement of Operations was as follows: Year Ended June 24, 2018 June 25, 2017 Derivatives Not Designated as Hedging Instruments: Location of Gain Gain Gain (in thousands) Foreign exchange contracts Other income $ 7,756 $ 523 The following table presents the effect of the fair value cash flow hedge accounting on the Statement of Financial Performance: Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Year ended June 24, 2018 Revenue Cost of Goods Sold Selling, General and Administrative Other Income (Expense) (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: $ 11,076,998 $ 5,911,966 $ 762,219 $ (61,510 ) 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 — — — 21,086 Derivatives designated as hedging instruments — — — (21,086 ) Gain or (loss) on cash flow hedging relationships in Subtopic 815-20: Foreign exchange contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income (11,284 ) 5,218 2,654 — |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: June 24, June 25, (in thousands) Raw materials $ 916,438 $ 625,600 Work-in-process 222,921 213,066 Finished goods 736,803 394,250 $ 1,876,162 $ 1,232,916 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, consist of the following: June 24, June 25, (in thousands) Manufacturing and engineering equipment $ 911,140 $ 819,239 Computer equipment and software 182,451 166,441 Land 46,155 46,155 Buildings and improvements 530,032 358,081 Office equipment, furniture and fixtures 66,378 52,959 1,736,156 1,442,875 Less: accumulated depreciation and amortization (833,609 ) (757,280 ) $ 902,547 $ 685,595 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Other Than Goodwill | The following table provides details of the Company’s intangible assets, other than goodwill: June 24, 2018 June 25, 2017 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 630,220 $ (433,309 ) $ 196,911 $ 615,164 $ (366,439 ) $ 248,725 Existing technology 669,520 (576,844 ) 92,676 643,196 (487,056 ) 156,140 Patents and other intangible assets 99,767 (71,518 ) 28,249 73,067 (66,937 ) 6,130 Total intangible assets $ 1,399,507 $ (1,081,671 ) $ 317,836 $ 1,331,427 $ (920,432 ) $ 410,995 |
Estimated Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets as of June 24, 2018 , was as follows: Fiscal Year Amount (in thousands) 2019 $ 125,921 2020 60,792 2021 58,019 2022 54,492 2023 10,967 Thereafter 7,645 $ 317,836 |
Accrued Expenses and Other Cu37
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: June 24, June 25, (in thousands) Accrued compensation $ 506,471 $ 447,363 Warranty reserves 192,480 161,981 Income and other taxes payable 185,384 95,127 Dividend payable 174,372 72,738 Other 250,502 192,152 $ 1,309,209 $ 969,361 |
Long Term Debt and Other Borr38
Long Term Debt and Other Borrowings (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | As of June 24, 2018 , and June 25, 2017 , the Company’s outstanding debt consisted of the following: June 24, 2018 June 25, 2017 Amount (in thousands) Effective Interest Rate Amount (in thousands) Effective Interest Rate Fixed-rate 1.25% Convertible Notes Due May 15, 2018 (“2018 Notes”) — (1) 5.27 % 447,436 (2) 5.27 % Fixed-rate 2.75% Senior Notes Due March 15, 2020 (“2020 Notes”) 500,000 2.88 % 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 2.625% Convertible Notes Due May 15, 2041 (“2041 Notes”) 326,953 (2) 4.28 % 631,074 (2) 4.28 % Commercial paper 360,000 2.33 % (3) — — % Total debt outstanding, at par 2,486,953 2,878,510 Unamortized discount (85,196 ) (178,589 ) Fair value adjustment - interest rate contracts (31,189 ) (10,102 ) Unamortized bond issuance costs (1,820 ) (3,161 ) Total debt outstanding, at carrying value $ 2,368,748 $ 2,686,658 Reported as: Current portion of long-term debt $ 608,532 (2) $ 907,827 (2) Long-term debt 1,760,216 1,778,831 Total debt outstanding, at carrying value $ 2,368,748 $ 2,686,658 (1) The 2018 Notes were settled upon their maturity on May 15, 2018. (2) As of the report date, these notes were convertible at the option of the bond holder. This is a result of the following condition being met; the market value of the Company’s Common Stock was greater than 130% of the convertible notes conversion price for 20 or more of the 30 consecutive trading days preceding the quarter-end. As a result, the 2041 Notes were classified in current liabilities and a portion of the equity component associated with the convertible notes, representing the unamortized discount, was classified in temporary equity on the Company’s Consolidated Balance Sheets. Upon closure of the conversion period, the notes not converted will be reclassified back into noncurrent liabilities and the temporary equity will be reclassified into permanent equity. (3) Represents the weighted-average effective interest rate for all outstanding balances as of the report date. |
Schedule of Contractual Cash Obligations | The Company’s contractual cash obligations relating to its outstanding debt as of June 24, 2018 , were as follows: Payments Due by Fiscal Year: (in thousands) 2019 (1) $ 686,953 2020 500,000 2021 800,000 2022 — 2023 — Thereafter 500,000 Total $ 2,486,953 (1) As noted above, the conversion period for the 2041 Notes is open as of June 24, 2018 . As there is the potential for conversion at the option of the holder, the principal balance of the 2041 Notes has been included in the one-year payment period. |
Components of Convertible Notes | Selected additional information regarding the Convertible Notes outstanding as of June 24, 2018 , and June 25, 2017 , is as follows: June 24, 2018 June 25, 2017 2041 2018 2041 (in thousands, except years, percentages, conversion rate, and conversion price) Carrying amount of permanent equity component, net of tax $ 159,120 $ 89,604 $ 156,374 Carrying amount of temporary equity component, net of tax $ 78,192 $ 15,186 $ 154,675 Remaining amortization period (years) 22.9 0.8 23.8 Fair Value of Notes (Level 2) $ 1,736,653 Conversion rate (shares of common stock per $1,000 principal amount of notes) 30.1361 Conversion price (per share of common stock) $ 33.18 If-converted value in excess of par value $ 1,394,383 Estimated share dilution using average quarterly stock price of $195.01 per share 8,176 |
Warrants and Convertible Note Hedge Arrangements | The following table presents the details of the outstanding warrants as of June 24, 2018 : 2018 Notes (shares in thousands) Warrants: Underlying shares 7,557 Estimated share dilution using average quarterly stock price $195.01 per share 4,770 Exercise price $71.91 Expiration date range August 15 - October 24, 2018 |
Schedule of Additional Senior Notes Information | Selected additional information regarding the Senior Notes outstanding as of June 24, 2018 , is as follows: Remaining Amortization period Fair Value of Notes (Level 2) (years) (in thousands) 2020 Notes 1.7 $ 497,250 2021 Notes 3.0 $ 786,856 2025 Notes 6.7 $ 497,560 |
Schedule of Recognized Interest Cost | The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Convertible Notes, the Senior Notes, the term loan agreement, commercial paper, and and the revolving credit facility during the fiscal years ended June 24, 2018 , June 25, 2017 , and June 26, 2016 . Year Ended June 24, June 25, June 26, (in thousands) Contractual interest coupon $ 77,091 $ 95,195 $ 63,053 Amortization of interest discount 12,225 22,873 35,206 Amortization of issuance costs 2,034 2,414 35,315 Effect of interest rate contracts, net 3 (4,756 ) 359 Total interest cost recognized $ 91,353 $ 115,726 $ 133,933 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Schedule of Contractual Cash Obligations Relating to Existing Capital Leases | The Company’s contractual cash obligations relating to its existing capital leases, including interest, as of June 24, 2018 , were as follows: Payments Due by Fiscal Year: Capital (in thousands) 2019 $ 3,948 2020 4,491 2021 4,854 2022 8,765 2023 4,351 Thereafter 37,707 Total 64,116 Interest on capital leases 16,272 Current portion of capital leases 1,498 Long-term portion of capital leases $ 46,346 |
Schedule of Contractual Cash Obligations Relating to Operating Leases | The Company’s contractual cash obligations with respect to operating leases, excluding the residual value guarantees discussed above, as of June 24, 2018 , were as follows: Payments Due by Fiscal Year: Operating (in thousands) 2019 $ 22,117 2020 18,672 2021 13,963 2022 4,879 2023 3,677 Thereafter 11,035 Total $ 74,343 |
Purchase Commitments | The Company’s commitments related to these agreements as of June 24, 2018 , were as follows: Payments Due by Fiscal Year: Purchase (in thousands) 2019 $ 353,295 2020 6,281 2021 6,036 2022 3,287 2023 3,165 Thereafter 162 Total $ 372,226 |
Schedule of Changes in Product Warranty Reserves | Changes in the Company’s product warranty reserves were as follows: Year Ended June 24, June 25, (in thousands) Balance at beginning of period $ 161,981 $ 100,321 Warranties issued during the period 235,252 188,813 Settlements made during the period (196,680 ) (135,213 ) Changes in liability for pre-existing warranties (8,073 ) 8,060 Balance at end of period $ 192,480 $ 161,981 |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Equity [Abstract] | |
Schedule of Repurchases Under Repurchase Program | Repurchases under the repurchase program were as follows during the periods indicated: Period Total Number Total Average (1) Amount Available (in thousands, except per share data) Available balance as of June 25, 2017 $ 282,141 Quarter ended September 24, 2017 1,779 $ 157,938 $ 158.40 $ 124,203 Board authorization, $2.0 billion increase, November 2017 $ 2,124,203 Quarter ended December 24, 2017 3,709 $ 1,089,744 $ 196.28 $ 1,034,459 Board authorization, $2.0 billion increase, March 2018 $ 3,034,459 Quarter ended March 25, 2018 1,019 $ — $ — $ 3,034,459 Quarter ended June 24, 2018 7,702 $ 1,300,821 $ 191.03 $ 1,733,638 (1) Average price paid per share excludes effect of accelerated share repurchases; see additional disclosure below regarding our accelerated share repurchase activity during the fiscal year. |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of tax at the end of the period, as well as the activity during the period, were as follows: Accumulated Accumulated Accumulated Accumulated Total (in thousands) Balance as of June 25, 2017 $ (42,371 ) $ (811 ) $ 1,106 $ (19,624 ) $ (61,700 ) Other comprehensive income (loss) before reclassifications 5,703 (6,960 ) (45,382 ) 129 (46,510 ) Losses (gains) reclassified from accumulated other comprehensive income (loss) to net income 3,946 (2) 3,729 (1) 8,996 (2) — 16,671 Securities impairment — — 34,090 — 34,090 Net current-period other comprehensive income (loss) 9,649 (3,231 ) (2,296 ) 129 4,251 Balance as of June 24, 2018 $ (32,722 ) $ (4,042 ) $ (1,190 ) $ (19,495 ) $ (57,449 ) __________________________________ (1) Amount of after-tax gain reclassified from accumulated other comprehensive income into net income located in revenue: $10,030 loss; cost of goods sold: $4,393 gain; selling, general, and administrative expenses: $1,994 gain; and other income and expense: $86 loss. (2) Amount of after-tax gain reclassified from accumulated other comprehensive income into net income located in other expense, net. |
Segment, Geographic Informati42
Segment, Geographic Information and Major Customers (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Segment Reporting [Abstract] | |
Revenues and Long Lived Assets by Geographic Region | Revenues and long-lived assets by geographic region were as follows: Year Ended June 24, June 25, June 26, Revenue: (in thousands) Korea $ 3,832,798 $ 2,480,329 $ 1,057,331 Japan 1,882,799 1,041,969 983,821 China 1,784,436 1,023,195 1,039,951 Taiwan 1,397,978 2,095,669 1,485,037 United States 820,438 629,937 495,123 Southeast Asia 781,360 401,877 605,236 Europe 577,189 340,644 219,394 Total revenue $ 11,076,998 $ 8,013,620 $ 5,885,893 June 24, June 25, June 26, Long-lived assets: (in thousands) United States $ 784,469 $ 575,264 $ 529,316 Europe 73,336 77,211 81,377 Korea 24,312 19,982 17,281 Taiwan 7,922 7,970 8,647 China 5,466 1,906 1,339 Southeast Asia 3,715 2,179 668 Japan 3,327 1,083 980 $ 902,547 $ 685,595 $ 639,608 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Jun. 24, 2018 | |
Business Combinations [Abstract] | |
Schedule of Preliminary Purchase Price Allocation | The following table represents the purchase price allocation and summarizes the aggregate estimated fair value of the net assets acquired on the closing date of the acquisition: Purchase Price Allocation (in thousands) Intangible assets $ 48,500 Assets acquired (including cash of $8.7 million) 11,463 Goodwill 98,917 Liabilities assumed (21,269 ) Fair value of net assets acquired $ 137,611 |
Schedule of Identified Intangible Assets Assumed in the Acquisition | The identified intangible assets assumed in the acquisition of Coventor were recognized as follows based upon their fair values as of August 28, 2017: Fair Value Weighted-Average Estimated Useful Life (In thousands) (In years) Existing technology $ 26,200 6.0 Customer relationships 15,000 6.0 Trade names and other intangible assets 7,300 6.4 Total identified intangible assets $ 48,500 6.0 |
Summary of Significant Accoun44
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Accounting Policies [Abstract] | |||
Impairments of goodwill | $ 0 | $ 0 | $ 0 |
Impairment loss on long-lived assets | 0 | 0 | 0 |
Other-than-temporary impairment charge | $ 42,456,000 | $ 0 | $ 0 |
Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 3 years | ||
Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Office equipment, furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Computer Software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 3 years | ||
Computer Software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 25 years |
Recent Accounting Pronounceme45
Recent Accounting Pronouncements (Details) - USD ($) | 12 Months Ended | |||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | Sep. 24, 2017 | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Prepaid expenses and other current assets | $ 147,218,000 | $ 195,022,000 | ||
Accrued expenses and other current liabilities | 1,309,209,000 | 969,361,000 | ||
Other long-term liabilities | 90,629,000 | 280,186,000 | ||
Other assets | 367,979,000 | 241,799,000 | ||
Net cash provided by or used in operations | 2,655,747,000 | 2,029,282,000 | $ 1,350,277,000 | |
Cumulative effect of adjustment | 40,065,000 | |||
Excess tax benefit | 52,700,000 | |||
Total current liabilities | (3,150,308,000) | (2,950,115,000) | ||
Restricted cash and investments | 256,301,000 | 256,205,000 | ||
Net cash provided by (used for) investing activities | 2,748,440,000 | (2,058,613,000) | $ 592,483,000 | |
Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of adjustment | 40,065,000 | |||
ASU 2015-17 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Prepaid expenses and other current assets | $ (49,700,000) | |||
Accrued expenses and other current liabilities | (5,300,000) | |||
Other long-term liabilities | (39,400,000) | |||
Other assets | 5,000,000 | |||
Net cash provided by or used in operations | 0 | |||
ASU 2016-09 | Retained Earnings | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Cumulative effect of adjustment | $ 40,100,000 | |||
ASU 2014-09 | Minimum | Expected impact | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total current liabilities | 100,000,000 | |||
ASU 2014-09 | Maximum | Expected impact | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Total current liabilities | 200,000,000 | |||
ASU 2016-18 | ||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||
Net cash provided by (used for) investing activities | $ 100,000 | $ 5,800,000 |
Equity-based Compensation Pla46
Equity-based Compensation Plans - Additional Information (Details) $ in Millions | 12 Months Ended | |
Jun. 24, 2018USD ($)dshares | Nov. 04, 2015shares | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Options and restricted stock units vesting period, years | 3 years | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Total unrecognized compensation expense related to unvested stock options | $ | $ 5.4 | |
Stock Options | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average remaining period for recognition, years | 2 years 2 months 18 days | |
Market-Based PRSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock price performance measurement period | d | 50 | |
Percentage increase in market-based PRSUs from target | 2.00% | |
Percentage increase in common stock price exceeding market price performance | 1.00% | |
Market-Based PRSUs | Minimum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock to be issued, vesting percentage | 0.00% | |
Market-Based PRSUs | Maximum | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Common stock to be issued, vesting percentage | 150.00% | |
Market-Based PRSUs | Tranche Two | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period | 3 years | |
RSUs | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Weighted average remaining period for recognition, years | 2 years 2 months 18 days | |
Unrecognized compensation expense | $ | $ 247.7 | |
2015 Stock Incentive Plan | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for issuance | 18,000,000 | |
2007 Stock Incentive Plan added to the shares available for issuance under the 2015 Stock Incentive Plan | 1,232,068 | |
Existing Stock Plans | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Shares available for grant | 10,335,291 |
Equity-based Compensation Pla47
Equity-based Compensation Plans - Recognized Equity Based Compensation Expenses and Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Equity-based compensation expense | $ 172,216 | $ 149,975 | $ 142,348 |
Income tax benefit recognized related to equity-based compensation | 87,505 | 38,381 | 37,814 |
Income tax benefit realized from the exercise and vesting of options and RSUs | $ 90,297 | $ 92,749 | $ 67,756 |
Equity-based Compensation Pla48
Equity-based Compensation Plans - Summary of Stock Plan Activity (Details) - $ / shares | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Options Outstanding Number of Shares | |||
Beginning balance (shares) | 594,059 | 907,411 | 835,832 |
Granted (shares) | 63,980 | 90,128 | 196,167 |
Exercised (shares) | (166,481) | (389,460) | (123,726) |
Forfeited or expired (shares) | (8,630) | (14,020) | (862) |
Ending balance (shares) | 482,928 | 594,059 | 907,411 |
Weighted-Average Exercise Price | |||
Beginning balance (usd per share) | $ 66.69 | $ 47.41 | $ 37.44 |
Granted (usd per share) | 190.07 | 119.67 | 75.57 |
Exercised (usd per share) | 55.62 | 33.92 | 24.92 |
Forfeited or expired (usd per share) | 84.44 | 69.81 | 21.43 |
Ending balance (usd per share) | $ 86.53 | $ 66.69 | $ 47.41 |
Service-based RSUs Outstanding | |||
Service-based and Market-based RSUs Outstanding | |||
Beginning balance (shares) | 2,687,606 | 3,256,513 | 4,040,947 |
Granted (shares) | 964,391 | 1,224,877 | 1,771,599 |
Vested (shares) | (1,362,369) | (1,677,318) | (2,445,902) |
Forfeited or canceled (shares) | (96,540) | (116,466) | (110,131) |
Ending balance (shares) | 2,193,088 | 2,687,606 | 3,256,513 |
Weighted-Average Grant Date Fair Value | |||
Beginning balance (usd per share) | $ 92.01 | $ 71.34 | $ 60.98 |
Granted (usd per share) | 183.97 | 114.13 | 72.14 |
Vested (usd per share) | 87.80 | 69.10 | 54.91 |
Forfeited or canceled (usd per share) | 108.67 | 76.76 | 69.17 |
Ending balance (usd per share) | $ 134.34 | $ 92.01 | $ 71.34 |
Market-based RSUs Outstanding | |||
Service-based and Market-based RSUs Outstanding | |||
Beginning balance (shares) | 862,455 | 1,078,591 | 913,141 |
Granted (shares) | 285,866 | 435,694 | 459,252 |
Vested (shares) | (407,024) | (592,321) | (293,802) |
Forfeited or canceled (shares) | (47,571) | (59,509) | 0 |
Ending balance (shares) | 693,726 | 862,455 | 1,078,591 |
Weighted-Average Grant Date Fair Value | |||
Beginning balance (usd per share) | $ 83.83 | $ 63.12 | $ 56.37 |
Granted (usd per share) | 170.15 | 111.75 | 70.58 |
Vested (usd per share) | 76.88 | 46.67 | 46.77 |
Forfeited or canceled (usd per share) | 91.36 | 66.81 | 0 |
Ending balance (usd per share) | $ 104.59 | $ 83.83 | $ 63.12 |
Equity-based Compensation Pla49
Equity-based Compensation Plans - Outstanding and Exercisable Options by Price Range (Details) | 12 Months Ended |
Jun. 24, 2018$ / sharesshares | |
$11.09-$23.59 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit (usd per share) | $ 11.09 |
Range of Exercise Prices, Upper Limit (usd per share) | $ 23.59 |
Options Outstanding | |
Number of Options Outstanding (shares) | shares | 33,918 |
Weighted-Average Remaining Life (Years) | 1 year 5 months 25 days |
Weighted-Average Exercise Price (usd per share) | $ 18.97 |
Options Exercisable | |
Number of Options Exercisable (shares) | shares | 33,918 |
Weighted-Average Remaining Life (Years) | 1 year 5 months 25 days |
Weighted-Average Exercise Price (usd per share) | $ 18.97 |
$28.73-$35.68 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit (usd per share) | 28.73 |
Range of Exercise Prices, Upper Limit (usd per share) | $ 35.68 |
Options Outstanding | |
Number of Options Outstanding (shares) | shares | 39,060 |
Weighted-Average Remaining Life (Years) | 2 years 7 months 18 days |
Weighted-Average Exercise Price (usd per share) | $ 31.29 |
Options Exercisable | |
Number of Options Exercisable (shares) | shares | 39,060 |
Weighted-Average Remaining Life (Years) | 2 years 7 months 18 days |
Weighted-Average Exercise Price (usd per share) | $ 31.29 |
$42.61-$51.76 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit (usd per share) | 42.61 |
Range of Exercise Prices, Upper Limit (usd per share) | $ 51.76 |
Options Outstanding | |
Number of Options Outstanding (shares) | shares | 75,415 |
Weighted-Average Remaining Life (Years) | 2 years 10 days |
Weighted-Average Exercise Price (usd per share) | $ 47.30 |
Options Exercisable | |
Number of Options Exercisable (shares) | shares | 75,415 |
Weighted-Average Remaining Life (Years) | 2 years 10 days |
Weighted-Average Exercise Price (usd per share) | $ 47.30 |
$75.57-$190.07 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit (usd per share) | 75.57 |
Range of Exercise Prices, Upper Limit (usd per share) | $ 190.07 |
Options Outstanding | |
Number of Options Outstanding (shares) | shares | 334,535 |
Weighted-Average Remaining Life (Years) | 5 years 28 days |
Weighted-Average Exercise Price (usd per share) | $ 108.67 |
Options Exercisable | |
Number of Options Exercisable (shares) | shares | 155,504 |
Weighted-Average Remaining Life (Years) | 4 years 3 months 28 days |
Weighted-Average Exercise Price (usd per share) | $ 83.58 |
$11.09-$190.07 | |
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | |
Range of Exercise Prices, Lower Limit (usd per share) | 11.09 |
Range of Exercise Prices, Upper Limit (usd per share) | $ 190.07 |
Options Outstanding | |
Number of Options Outstanding (shares) | shares | 482,928 |
Weighted-Average Remaining Life (Years) | 4 years 1 month 24 days |
Weighted-Average Exercise Price (usd per share) | $ 86.53 |
Options Exercisable | |
Number of Options Exercisable (shares) | shares | 303,897 |
Weighted-Average Remaining Life (Years) | 3 years 2 months 23 days |
Weighted-Average Exercise Price (usd per share) | $ 60.65 |
Equity-based Compensation Pla50
Equity-based Compensation Plans - Schedule of Stock Options Weighted Average Assumptions (Details) - Stock Options | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 34.66% | 28.85% | 33.08% |
Risk-free interest rate | 2.53% | 1.92% | 1.27% |
Expected term (years) | 4 years 8 months 25 days | 4 years 9 months | 4 years 9 months 15 days |
Dividend yield | 1.05% | 1.50% | 1.59% |
Equity-based Compensation Pla51
Equity-based Compensation Plans - Intrinsic of Stock Options (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||
Intrinsic value - options outstanding | $ 43,563 | $ 50,551 | $ 31,643 |
Intrinsic value - options exercisable | 34,661 | 36,396 | 29,112 |
Intrinsic value - options exercised | $ 23,925 | $ 29,674 | $ 6,562 |
Equity-based Compensation Pla52
Equity-based Compensation Plans - Schedule of Market-Based Performance Restricted Stock Units Weighted Average Assumptions (Details) - Market-Based PRSUs | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 34.07% | 27.48% | 29.81% |
Risk-free interest rate | 2.35% | 1.55% | 0.97% |
Expected term (years) | 2 years 11 months 1 day | 2 years 11 months 1 day | 2 years 11 months 1 day |
Dividend yield | 1.05% | 1.50% | 1.59% |
Equity-based Compensation Pla53
Equity-based Compensation Plans - ESPP (Details) | 12 Months Ended |
Jun. 24, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Purchase price per share, percent | 85.00% |
Other Income (Expense), Net (De
Other Income (Expense), Net (Details) - USD ($) | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 85,813,000 | $ 57,858,000 | $ 29,512,000 |
Interest expense | (97,387,000) | (117,734,000) | (134,773,000) |
Gains (losses) on deferred compensation plan related assets, net | 14,692,000 | 17,880,000 | (3,995,000) |
Loss on impairment of investments | (42,456,000) | 0 | 0 |
Gain (Loss) on Extinguishment of Debt | 542,000 | (36,252,000) | 0 |
Foreign exchange (losses) gains, net | (3,382,000) | (569,000) | 308,000 |
Other, net | (19,332,000) | (11,642,000) | (5,191,000) |
Other income (expense), net | $ (61,510,000) | $ (90,459,000) | $ (114,139,000) |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 128,190 | $ 7,553 | $ (113,607) |
Foreign | 3,023,599 | 1,804,120 | 1,073,724 |
Income before income taxes | $ 3,151,789 | $ 1,811,673 | $ 960,117 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Federal: | |||
Current | $ 630,148 | $ (70,858) | $ 1,426 |
Deferred | 12,871 | 99,700 | (38,616) |
Federal Tax Provision (Benefit) | 643,019 | 28,842 | (37,190) |
State: | |||
Current | 5,348 | (963) | 2,892 |
Deferred | (3,273) | (2,246) | (7,600) |
State Tax Provision (Benefit) | 2,075 | (3,209) | (4,708) |
Foreign: | |||
Current | 132,566 | 85,479 | 90,752 |
Deferred | (6,552) | 2,798 | (2,786) |
Foreign Tax Provision (Benefit) | 126,014 | 88,277 | 87,966 |
Total provision for income taxes | $ 771,108 | $ 113,910 | $ 46,068 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Deferred tax assets: | ||
Tax carryforwards | $ 206,073 | $ 175,595 |
Allowances and reserves | 118,559 | 170,752 |
Equity-based compensation | 16,189 | 25,828 |
Inventory valuation differences | 14,021 | 19,602 |
Prepaid cost sharing | 65,644 | 133,831 |
Other | 16,514 | 20,175 |
Gross deferred tax assets | 437,000 | 545,783 |
Valuation allowance | (199,839) | (114,011) |
Net deferred tax assets | 237,161 | 431,772 |
Deferred tax liabilities: | ||
Intangible assets | (21,558) | (30,944) |
Convertible debt | (60,252) | (153,047) |
Capital assets | (61,429) | (72,727) |
Amortization of goodwill | (10,738) | (15,582) |
Unremitted earnings of foreign subsidiaries | (6,656) | (302,663) |
Other | (7,955) | (9,844) |
Gross deferred tax liabilities | (168,588) | (584,807) |
Net deferred tax assets | $ 68,573 | |
Net deferred tax (liabilities) | $ 153,035 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Dec. 24, 2017USD ($) | Jun. 24, 2018USD ($)subsidiary | Jun. 24, 2018USD ($)subsidiary | Jun. 25, 2017USD ($)$ / shares | Jun. 26, 2016USD ($)$ / shares | Jun. 28, 2015USD ($) | |
Income Taxes [Line Items] | ||||||
Provisional amount for transition tax | $ 991,300 | $ 883,000 | $ 883,000 | |||
Revaluation of deferred tax balance | 42,500 | |||||
Tax liability remeasured | 52,700 | |||||
Release of previously accrued deferred taxes | 287,800 | |||||
Net increase to tax expense | 595,200 | |||||
Valuation allowance for deferred tax assets | 199,839 | $ 199,839 | $ 114,011 | |||
U.S. federal statutory tax rate (as a percent) | 28.27% | 35.00% | 35.00% | |||
Unremitted earnings of foreign subsidiaries | 456,100 | $ 456,100 | ||||
Withholding taxes on unremitted foreign earning | 74,900 | 74,900 | ||||
Unrecognized tax benefits | 305,413 | 305,413 | $ 339,447 | $ 417,432 | $ 363,552 | |
Increase in unrecognized tax benefits | 34,000 | |||||
Unrecognized tax benefits that would impact effective tax rate | 268,300 | 268,300 | 247,600 | 323,400 | ||
Gross interest and penalties, relating to unrecognized tax benefits accrued | 13,000 | 15,700 | 42,400 | |||
Federal | ||||||
Income Taxes [Line Items] | ||||||
Net operating loss carry-forwards | 126,800 | 126,800 | ||||
State | ||||||
Income Taxes [Line Items] | ||||||
Net operating loss carry-forwards | 24,500 | 24,500 | ||||
Federal and state tax credit carry forward | 285,900 | 285,900 | ||||
California and Foreign | ||||||
Income Taxes [Line Items] | ||||||
Valuation allowance for deferred tax assets | $ 199,800 | $ 199,800 | ||||
Switzerland | ||||||
Income Taxes [Line Items] | ||||||
Number of subsidiaries | subsidiary | 1 | 1 | ||||
Decreased income taxes due to tax ruling in Switzerland | $ 6,300 | $ 4,300 | ||||
Benefit of the tax ruling on diluted earnings per share | $ / shares | $ 0.03 | $ 0.02 | ||||
Tax Examinations Or Lapses Of Statute Of Limitation [Member] | ||||||
Income Taxes [Line Items] | ||||||
Estimated unrecognized tax benefits reduction | $ 28,000 | $ 28,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense Provided at Federal Statutory Rate to Actual Income Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense computed at federal statutory rate | $ 891,011 | $ 634,086 | $ 336,041 |
State income taxes, net of federal tax benefit | (50,585) | (11,973) | (14,070) |
Foreign income taxed at different rates | (939,808) | (352,860) | (265,123) |
Settlements and reductions in uncertain tax positions | (33,367) | (144,519) | 0 |
Tax credits | (69,301) | (37,713) | (48,277) |
State valuation allowance, net of federal tax benefit | 57,302 | 12,070 | 17,948 |
Equity-based compensation | (35,875) | 13,187 | 12,366 |
Other permanent differences and miscellaneous items | 43,214 | 1,632 | 7,183 |
U.S. tax reform impacts | 908,517 | 0 | 0 |
Total provision for income taxes | $ 771,108 | $ 113,910 | $ 46,068 |
Income Taxes - Changes in Balan
Income Taxes - Changes in Balance of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Changes in Gross Unrecognized Tax Benefits | |||
Beginning balance | $ 339,447 | $ 417,432 | $ 363,552 |
Settlements and effective settlements with tax authorities | (693) | (6,691) | |
Lapse of statute of limitations | (88,837) | (113,491) | (10,992) |
Increases in balances related to tax positions taken during prior periods | 2,044 | 6,557 | 18,200 |
Decreases in balances related to tax positions taken during prior periods | (1,320) | (11,528) | (421) |
Increases in balances related to tax positions taken during current period | 54,772 | 47,168 | 47,093 |
Ending balance | $ 305,413 | $ 339,447 | $ 417,432 |
Net Income per Share - Schedule
Net Income per Share - Schedule of Numerators and Denominators of Basic and Diluted Computations for Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Numerator: | |||
Net income | $ 2,380,681 | $ 1,697,763 | $ 914,049 |
Denominator: | |||
Basic average shares outstanding | 161,643 | 162,222 | 158,919 |
Effect of potential dilutive securities: | |||
Employee stock plans (shares) | 2,312 | 2,058 | 2,120 |
Convertible notes (shares) | 12,258 | 16,861 | 13,464 |
Warrants (shares) | 4,569 | 2,629 | 656 |
Diluted average shares outstanding | 180,782 | 183,770 | 175,159 |
Net income per share - basic (usd per share) | $ 14.73 | $ 10.47 | $ 5.75 |
Net income per share - diluted (usd per share) | $ 13.17 | $ 9.24 | $ 5.22 |
Net Income per Share - Schedu62
Net Income per Share - Schedule of Potentially Dilutive Securities Excluded from EPS Calculations (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Earnings Per Share [Abstract] | |||
Options and RSUs (shares) | 34 | 34 | 149 |
Financial Instruments - Cash, C
Financial Instruments - Cash, Cash Equivalents, Short-Term Investments, Restricted Cash and Investments and Other Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | $ 5,276,170 | $ 6,349,485 |
Unrealized Gain | 648 | 8,968 |
Unrealized (Loss) | (1,980) | (4,832) |
Fair Value | 5,274,838 | 6,353,621 |
Cash and Cash Equivalents | 4,512,257 | 2,377,534 |
Investments | 437,338 | 3,663,628 |
Restricted Cash & Investments | 256,301 | 256,205 |
Other Assets | 68,942 | 56,254 |
Cash | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 708,364 | 551,308 |
Unrealized Gain | 0 | 0 |
Unrealized (Loss) | 0 | 0 |
Fair Value | 708,364 | 551,308 |
Cash and Cash Equivalents | 702,090 | 545,130 |
Investments | 0 | 0 |
Restricted Cash & Investments | 6,274 | 6,178 |
Other Assets | 0 | 0 |
Time deposit | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 999,666 | 640,666 |
Unrealized Gain | 0 | 0 |
Unrealized (Loss) | 0 | 0 |
Fair Value | 999,666 | 640,666 |
Cash and Cash Equivalents | 749,639 | 390,639 |
Investments | 0 | 0 |
Restricted Cash & Investments | 250,027 | 250,027 |
Other Assets | 0 | 0 |
Level 1 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 2,767,054 | 2,260,512 |
Unrealized Gain | 516 | 3,691 |
Unrealized (Loss) | (312) | (2,111) |
Fair Value | 2,767,258 | 2,262,092 |
Cash and Cash Equivalents | 2,675,528 | 1,431,714 |
Investments | 22,788 | 774,124 |
Restricted Cash & Investments | 0 | 0 |
Other Assets | 68,942 | 56,254 |
Level 1 | Money market funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 2,341,807 | 1,423,417 |
Unrealized Gain | 0 | 0 |
Unrealized (Loss) | 0 | 0 |
Fair Value | 2,341,807 | 1,423,417 |
Cash and Cash Equivalents | 2,341,807 | 1,423,417 |
Investments | 0 | 0 |
Restricted Cash & Investments | 0 | 0 |
Other Assets | 0 | 0 |
Level 1 | U.S. Treasury and agencies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 356,679 | 783,848 |
Unrealized Gain | 0 | 684 |
Unrealized (Loss) | (170) | (2,111) |
Fair Value | 356,509 | 782,421 |
Cash and Cash Equivalents | 333,721 | 8,297 |
Investments | 22,788 | 774,124 |
Restricted Cash & Investments | 0 | 0 |
Other Assets | 0 | 0 |
Level 1 | Mutual funds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 68,568 | 53,247 |
Unrealized Gain | 516 | 3,007 |
Unrealized (Loss) | (142) | 0 |
Fair Value | 68,942 | 56,254 |
Cash and Cash Equivalents | 0 | 0 |
Investments | 0 | 0 |
Restricted Cash & Investments | 0 | 0 |
Other Assets | 68,942 | 56,254 |
Level 2 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 801,086 | 2,896,999 |
Unrealized Gain | 132 | 5,277 |
Unrealized (Loss) | (1,668) | (2,721) |
Fair Value | 799,550 | 2,899,555 |
Cash and Cash Equivalents | 385,000 | 10,051 |
Investments | 414,550 | 2,889,504 |
Restricted Cash & Investments | 0 | 0 |
Other Assets | 0 | 0 |
Level 2 | U.S. Treasury and agencies | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 12,795 | |
Unrealized Gain | 0 | |
Unrealized (Loss) | (167) | |
Fair Value | 12,628 | |
Cash and Cash Equivalents | 0 | |
Investments | 12,628 | |
Restricted Cash & Investments | 0 | |
Other Assets | 0 | |
Level 2 | Municipal notes and bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 152,378 | 194,575 |
Unrealized Gain | 37 | 308 |
Unrealized (Loss) | (279) | (7) |
Fair Value | 152,136 | 194,876 |
Cash and Cash Equivalents | 0 | 0 |
Investments | 152,136 | 194,876 |
Restricted Cash & Investments | 0 | 0 |
Other Assets | 0 | 0 |
Level 2 | Government-sponsored enterprises | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 110,963 | 24,502 |
Unrealized Gain | 0 | 0 |
Unrealized (Loss) | (201) | (6) |
Fair Value | 110,762 | 24,496 |
Cash and Cash Equivalents | 99,934 | 0 |
Investments | 10,828 | 24,496 |
Restricted Cash & Investments | 0 | 0 |
Other Assets | 0 | 0 |
Level 2 | Foreign government bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 19,986 | 62,917 |
Unrealized Gain | 0 | 219 |
Unrealized (Loss) | (1) | (114) |
Fair Value | 19,985 | 63,022 |
Cash and Cash Equivalents | 19,985 | 0 |
Investments | 0 | 63,022 |
Restricted Cash & Investments | 0 | 0 |
Other Assets | 0 | 0 |
Level 2 | Corporate notes and bonds | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 516,955 | 2,433,622 |
Unrealized Gain | 95 | 4,654 |
Unrealized (Loss) | (1,184) | (1,840) |
Fair Value | 515,866 | 2,436,436 |
Cash and Cash Equivalents | 265,081 | 10,051 |
Investments | 250,785 | 2,426,385 |
Restricted Cash & Investments | 0 | 0 |
Other Assets | 0 | 0 |
Level 2 | Mortgage backed securities - residential | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 804 | 102,760 |
Unrealized Gain | 0 | 87 |
Unrealized (Loss) | (3) | (489) |
Fair Value | 801 | 102,358 |
Cash and Cash Equivalents | 0 | 0 |
Investments | 801 | 102,358 |
Restricted Cash & Investments | 0 | 0 |
Other Assets | $ 0 | 0 |
Level 2 | Mortgage backed securities - commercial | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||
Cost | 65,828 | |
Unrealized Gain | 9 | |
Unrealized (Loss) | (98) | |
Fair Value | 65,739 | |
Cash and Cash Equivalents | 0 | |
Investments | 65,739 | |
Restricted Cash & Investments | 0 | |
Other Assets | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) | 12 Months Ended | ||
Jun. 24, 2018USD ($)customer | Jun. 25, 2017USD ($)customer | Jun. 26, 2016USD ($) | |
Fair Value Disclosures [Abstract] | |||
Losses on investments due to other-than-temporary impairments | $ 42,500,000 | $ 0 | $ 0 |
Gains realized from sales of investments | 2,400,000 | 3,600,000 | 2,000,000 |
Losses realized from sales of investments | (8,500,000) | $ (2,400,000) | $ (3,000,000) |
Financial Instruments [Line Items] | |||
Gains accumulated in other comprehensive income expected to reclassify from other comprehensive income into earnings | (2,200,000) | ||
Losses accumulated in other comprehensive income expects to reclassify from other comprehensive income into earnings, interest rate contracts | $ (1,800,000) | ||
Accounts Receivable | |||
Financial Instruments [Line Items] | |||
Customers | customer | 4 | 4 | |
Accounts Receivable | Customer 1 | |||
Financial Instruments [Line Items] | |||
Percentage of account receivable by customer | 24.00% | 22.00% | |
Accounts Receivable | Customer 2 | |||
Financial Instruments [Line Items] | |||
Percentage of account receivable by customer | 17.00% | 19.00% | |
Accounts Receivable | Customer 3 | |||
Financial Instruments [Line Items] | |||
Percentage of account receivable by customer | 10.00% | 13.00% | |
Accounts Receivable | Customer 4 | |||
Financial Instruments [Line Items] | |||
Percentage of account receivable by customer | 10.00% | 12.00% | |
Cash flow hedging | |||
Financial Instruments [Line Items] | |||
Reclassification from other comprehensive income to earnings, period | 6 years 8 months 12 days | ||
Cash flow hedging | Foreign exchange contracts | |||
Financial Instruments [Line Items] | |||
Potential effect of rights of set-off under master netting agreements for derivative contracts assets | $ 5,600,000 | $ 5,900,000 | |
Potential effect of rights of set-off under master netting agreements for derivative contracts liabilities | 5,600,000 | 5,900,000 | |
Net derivative asset | 2,100,000 | 2,300,000 | |
Net derivative liability | $ 34,400,000 | $ 7,400,000 | |
Minimum | |||
Financial Instruments [Line Items] | |||
Foreign currency forward contract, expiration period | 12 months | ||
Maximum | |||
Financial Instruments [Line Items] | |||
Foreign currency forward contract, expiration period | 24 months |
Financial Instruments - Schedul
Financial Instruments - Schedule of Cash, Cash Equivalents, Short-Term Investments and Restricted Cash and Investments Unrealized Loss Positions (Details) $ in Thousands | Jun. 24, 2018USD ($) |
Fair Value | |
Unrealized Losses Less than 12 Months | $ 792,675 |
Unrealized Losses 12 Months or Greater | 25,954 |
Total | 818,629 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months | (1,818) |
Unrealized Losses 12 Months or Greater | (162) |
Total | (1,980) |
U.S. Treasury and agencies | |
Fair Value | |
Unrealized Losses Less than 12 Months | 332,903 |
Unrealized Losses 12 Months or Greater | 11,026 |
Total | 343,929 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months | (100) |
Unrealized Losses 12 Months or Greater | (70) |
Total | (170) |
Municipal notes and bonds | |
Fair Value | |
Unrealized Losses Less than 12 Months | 141,139 |
Unrealized Losses 12 Months or Greater | 0 |
Total | 141,139 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months | (279) |
Unrealized Losses 12 Months or Greater | 0 |
Total | (279) |
Mutual funds | |
Fair Value | |
Unrealized Losses Less than 12 Months | 25,312 |
Unrealized Losses 12 Months or Greater | 0 |
Total | 25,312 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months | (142) |
Unrealized Losses 12 Months or Greater | 0 |
Total | (142) |
Government-sponsored enterprises | |
Fair Value | |
Unrealized Losses Less than 12 Months | 110,722 |
Unrealized Losses 12 Months or Greater | 0 |
Total | 110,722 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months | (201) |
Unrealized Losses 12 Months or Greater | 0 |
Total | (201) |
Foreign government bonds | |
Fair Value | |
Unrealized Losses Less than 12 Months | 19,985 |
Unrealized Losses 12 Months or Greater | 0 |
Total | 19,985 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months | (1) |
Unrealized Losses 12 Months or Greater | 0 |
Total | (1) |
Corporate notes and bonds | |
Fair Value | |
Unrealized Losses Less than 12 Months | 161,813 |
Unrealized Losses 12 Months or Greater | 14,928 |
Total | 176,741 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months | (1,092) |
Unrealized Losses 12 Months or Greater | (92) |
Total | (1,184) |
Mortgage backed securities - residential | |
Fair Value | |
Unrealized Losses Less than 12 Months | 801 |
Unrealized Losses 12 Months or Greater | 0 |
Total | 801 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months | (3) |
Unrealized Losses 12 Months or Greater | 0 |
Total | $ (3) |
Financial Instruments - Sched66
Financial Instruments - Schedule of Amortized Cost and Fair Value of Cash Equivalents, Short-Term Investments, and Restricted Cash and Investments with Contractual Maturities (Details) $ in Thousands | Jun. 24, 2018USD ($) |
Cost | |
Due in one year or less | $ 4,312,694 |
Due after one year through five years | 181,681 |
Due in more than five years | 4,863 |
Cost | 4,499,238 |
Estimated Fair Value | |
Due in one year or less | 4,312,352 |
Due after one year through five years | 180,352 |
Due in more than five years | 4,828 |
Estimated fair value due, Total | $ 4,497,532 |
Financial Instruments - Sched67
Financial Instruments - Schedule of Outstanding Foreign Currency Contracts (Details) - Foreign currency forward contracts $ in Thousands | Jun. 24, 2018USD ($) |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Buy Contracts | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | $ 131,444 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Japanese yen | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Euro | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 102,557 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Korean won | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 28,887 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Taiwan dollar | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Singapore dollar | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Buy Contracts | British pound sterling | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Swiss franc | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Indian rupee | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Chinese renminbi | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Sell Contracts | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 568,970 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Japanese yen | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 568,970 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Euro | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Korean won | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Taiwan dollar | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Singapore dollar | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Sell Contracts | British pound sterling | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Swiss franc | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Indian rupee | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Chinese renminbi | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Designated As Hedging Instruments | Foreign currency option contracts | Buy Contracts | Japanese yen | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 9,050 |
Derivatives Designated As Hedging Instruments | Foreign currency option contracts | Sell Contracts | Japanese yen | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 9,709 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Buy Contracts | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 134,984 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Japanese yen | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Euro | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 45,298 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Korean won | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Taiwan dollar | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 31,859 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Singapore dollar | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 21,376 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Buy Contracts | British pound sterling | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 15,865 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Swiss franc | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 14,899 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Indian rupee | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 3,220 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Buy Contracts | Chinese renminbi | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 2,467 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Sell Contracts | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 366,775 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Japanese yen | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 267,367 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Euro | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Korean won | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 99,408 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Taiwan dollar | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Singapore dollar | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Sell Contracts | British pound sterling | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Swiss franc | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Indian rupee | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Not Designated as Hedging Instruments | Foreign currency forward contracts | Sell Contracts | Chinese renminbi | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Not Designated as Hedging Instruments | Foreign currency option contracts | Buy Contracts | Japanese yen | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | 0 |
Derivatives Not Designated as Hedging Instruments | Foreign currency option contracts | Sell Contracts | Japanese yen | |
Derivative [Line Items] | |
Outstanding foreign currency contracts | $ 0 |
Financial Instruments - Sched68
Financial Instruments - Schedule of Fair Value of Derivative Instruments (Details) - Level 2 - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | $ 7,692 | $ 8,274 |
Liability Derivatives, Fair Value | 40,086 | 13,360 |
Prepaid expense and other assets | Derivatives Designated As Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | 7,581 | 8,061 |
Prepaid expense and other assets | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | 111 | 213 |
Accrued expenses and other current liabilities | Derivatives Designated As Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Derivatives, Fair Value | 8,866 | 2,916 |
Accrued expenses and other current liabilities | Derivatives Designated As Hedging Instruments | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Derivatives, Fair Value | 7,468 | 2,833 |
Accrued expenses and other current liabilities | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Derivatives, Fair Value | 32 | 342 |
Other long-term liabilities | Derivatives Designated As Hedging Instruments | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Derivatives, Fair Value | $ 23,720 | $ 7,269 |
Financial Instruments - Sched69
Financial Instruments - Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations Including Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Recognized in AOCI (Effective Portion) | $ 6,914 | ||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (9,536) | ||
Gain (Loss) Recognized In Income (Excluded from Effectiveness) | 5,947 | ||
Revenue | $ 11,076,998 | 8,013,620 | $ 5,885,893 |
Cost of goods sold | 5,911,966 | 4,410,261 | 3,266,971 |
Selling, general, and administrative | 762,219 | 667,485 | 630,954 |
Other Income (Expense) | (61,510) | (90,459) | $ (114,139) |
Interest rate contracts | Revenue | Fair value hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 0 | ||
Interest rate contracts | Revenue | Fair value hedging | Derivatives Designated As Hedging Instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 0 | ||
Interest rate contracts | Cost of goods sold | Fair value hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 0 | ||
Interest rate contracts | Cost of goods sold | Fair value hedging | Derivatives Designated As Hedging Instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 0 | ||
Interest rate contracts | SG&A | Fair value hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 0 | ||
Interest rate contracts | SG&A | Fair value hedging | Derivatives Designated As Hedging Instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 0 | ||
Interest rate contracts | Other expense, net | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Recognized in AOCI (Effective Portion) | 0 | 0 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (126) | 1,727 | |
Gain (Loss) Recognized In Income (Excluded from Effectiveness) | 0 | ||
Interest rate contracts | Other Income (Expense) | Fair value hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | 21,086 | ||
Interest rate contracts | Other Income (Expense) | Fair value hedging | Derivatives Designated As Hedging Instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) on Fair Value Hedges Recognized in Earnings | (21,086) | ||
Foreign exchange contracts | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Recognized in AOCI (Effective Portion) | (7,690) | ||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (3,412) | ||
Foreign exchange contracts | Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Recognized in AOCI (Effective Portion) | (8,305) | 2,927 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (11,284) | (12,000) | |
Gain (Loss) Recognized In Income (Excluded from Effectiveness) | 6,982 | ||
Foreign exchange contracts | Revenue | Cash flow hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (11,284) | ||
Foreign exchange contracts | Cost of goods sold | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Recognized in AOCI (Effective Portion) | 57 | 2,859 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 5,218 | 666 | |
Gain (Loss) Recognized In Income (Excluded from Effectiveness) | (686) | ||
Foreign exchange contracts | Cost of goods sold | Cash flow hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 5,218 | ||
Foreign exchange contracts | SG&A | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Recognized in AOCI (Effective Portion) | 558 | 1,128 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 2,654 | 71 | |
Gain (Loss) Recognized In Income (Excluded from Effectiveness) | (267) | ||
Foreign exchange contracts | SG&A | Cash flow hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 2,654 | ||
Foreign exchange contracts | Other expense, net | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Recognized in AOCI (Effective Portion) | 0 | 0 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0 | 0 | |
Gain (Loss) Recognized In Income (Excluded from Effectiveness) | (82) | ||
Foreign exchange contracts | Other income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Recognized In Income | 7,756 | $ 523 | |
Foreign exchange contracts | Other Income (Expense) | Cash flow hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | $ 0 |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 916,438 | $ 625,600 |
Work-in-process | 222,921 | 213,066 |
Finished goods | 736,803 | 394,250 |
Total inventories | $ 1,876,162 | $ 1,232,916 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment Net (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 1,736,156 | $ 1,442,875 | |
Less: accumulated depreciation and amortization | (833,609) | (757,280) | |
Property and equipment, net | 902,547 | 685,595 | $ 639,608 |
Manufacturing and engineering equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 911,140 | 819,239 | |
Computer equipment and software | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 182,451 | 166,441 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 46,155 | 46,155 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 530,032 | 358,081 | |
Office equipment, furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 66,378 | $ 52,959 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 165,200 | $ 152,300 | $ 134,700 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of assets | $ 0 | $ 163 | 15,223 |
SG&A | |||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||
Gain on sale of assets | $ 15,200 |
Goodwill and Intangible Asset73
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | |||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | Aug. 28, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 1,484,904,000 | $ 1,385,673,000 | $ 98,917,000 | |
Tax deductible goodwill | 61,100,000 | |||
Impairments of goodwill | 0 | 0 | $ 0 | |
Intangible asset amortization expense | 161,200,000 | 154,600,000 | 156,300,000 | |
intangible asset impairment | $ 0 | $ 0 | $ 0 |
Goodwill and Intangible Asset74
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 1,399,507 | $ 1,331,427 |
Accumulated Amortization | (1,081,671) | (920,432) |
Net | 317,836 | 410,995 |
Total intangible assets, Accumulated Amortization | (1,081,671) | (920,432) |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 630,220 | 615,164 |
Accumulated Amortization | (433,309) | (366,439) |
Net | 196,911 | 248,725 |
Total intangible assets, Accumulated Amortization | (433,309) | (366,439) |
Existing technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 669,520 | 643,196 |
Accumulated Amortization | (576,844) | (487,056) |
Net | 92,676 | 156,140 |
Total intangible assets, Accumulated Amortization | (576,844) | (487,056) |
Patents and other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 99,767 | 73,067 |
Accumulated Amortization | (71,518) | (66,937) |
Net | 28,249 | 6,130 |
Total intangible assets, Accumulated Amortization | $ (71,518) | $ (66,937) |
Goodwill and Intangible Asset75
Goodwill and Intangible Assets - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Fiscal Year | ||
2,019 | $ 125,921 | |
2,020 | 60,792 | |
2,021 | 58,019 | |
2,022 | 54,492 | |
2,023 | 10,967 | |
Thereafter | 7,645 | |
Net | $ 317,836 | $ 410,995 |
Accrued Expenses and Other Cu76
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 506,471 | $ 447,363 |
Warranty reserves | 192,480 | 161,981 |
Income and other taxes payable | 185,384 | 95,127 |
Dividend payable | 174,372 | 72,738 |
Other | 250,502 | 192,152 |
Accrued expenses and other current liabilities | $ 1,309,209 | $ 969,361 |
Long Term Debt and Other Borr77
Long Term Debt and Other Borrowings - Schedule of Outstanding Debt (Details) $ in Thousands | 12 Months Ended | |||||
Jun. 24, 2018USD ($)d | Jun. 25, 2017USD ($) | Jun. 07, 2016 | Mar. 12, 2015 | Jun. 30, 2012 | May 31, 2011 | |
Debt Instrument [Line Items] | ||||||
Total debt outstanding, at par | $ 2,486,953 | $ 2,878,510 | ||||
Unamortized discount | (85,196) | (178,589) | ||||
Fair value adjustment - interest rate contracts | (31,189) | (10,102) | ||||
Unamortized bond issuance costs | (1,820) | (3,161) | ||||
Total debt outstanding, at carrying value | 2,368,748 | 2,686,658 | ||||
Current portion of long-term debt | 608,532 | 907,827 | ||||
Long-term debt | 1,760,216 | 1,778,831 | ||||
Commercial paper | ||||||
Debt Instrument [Line Items] | ||||||
Commercial paper | $ 360,000 | $ 0 | ||||
Effective Interest Rate | 2.33% | 0.00% | ||||
Convertible debt | ||||||
Debt Instrument [Line Items] | ||||||
Stock price percentage of conversion price | 130.00% | |||||
Number of days on which common stock sale price was greater than or equal to 130% of conversion price, in a period of 30 consecutive trading days ending on the last trading day of the preceding the quarter | d | 20 | |||||
Number of consecutive trading days | d | 30 | |||||
Convertible debt | 1.25% Notes due 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Total debt outstanding, at par | $ 0 | $ 447,436 | ||||
Effective Interest Rate | 5.27% | 5.27% | ||||
Interest rate percentage | 1.25% | 1.25% | ||||
Convertible debt | 2.625% Notes due 2041 | ||||||
Debt Instrument [Line Items] | ||||||
Total debt outstanding, at par | $ 326,953 | $ 631,074 | ||||
Effective Interest Rate | 4.28% | 4.28% | ||||
Interest rate percentage | 2.625% | 2.625% | ||||
Senior notes | 2.75% Notes due 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Total debt outstanding, at par | $ 500,000 | $ 500,000 | ||||
Effective Interest Rate | 2.88% | 2.88% | ||||
Interest rate percentage | 2.75% | 2.75% | ||||
Senior notes | 2.80 Notes due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Total debt outstanding, at par | $ 800,000 | $ 800,000 | ||||
Effective Interest Rate | 2.95% | 2.95% | ||||
Interest rate percentage | 2.80% | 2.80% | ||||
Senior notes | 3.80% Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Total debt outstanding, at par | $ 500,000 | $ 500,000 | ||||
Effective Interest Rate | 3.87% | 3.87% | ||||
Interest rate percentage | 3.80% | 3.80% |
Long Term Debt and Other Borr78
Long Term Debt and Other Borrowings - Schedule of Contractual Cash Obligations (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Jun. 25, 2017 |
Payments Due by Fiscal Year: | ||
2,019 | $ 686,953 | |
2,020 | 500,000 | |
2,021 | 800,000 | |
2,022 | 0 | |
2,023 | 0 | |
Thereafter | 500,000 | |
Total | $ 2,486,953 | $ 2,878,510 |
Long Term Debt and Other Borr79
Long Term Debt and Other Borrowings - Convertible Senior Notes Narrative (Details) - Convertible debt - USD ($) shares in Millions | 1 Months Ended | 12 Months Ended | ||
Jun. 30, 2012 | Jun. 24, 2018 | Sep. 23, 2018 | May 31, 2011 | |
Debt Instrument [Line Items] | ||||
Principal amount | $ 751,300,000 | |||
1.25% Notes due 2018 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 450,000,000 | |||
Interest rate percentage | 1.25% | 1.25% | ||
Common Stock issued in settlement of conversion (shares) | 4.8 | |||
Effect of bond hedge, cash in lieu of shares (shares) | 4.8 | |||
2.625% Notes due 2041 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 700,000,000 | |||
Interest rate percentage | 2.625% | 2.625% | ||
Maximum amount of contingent interest rate | 0.60% | |||
2.625% Notes due 2041 | Conversion 2041 Notes | Subsequent event | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 79,400,000 |
Long Term Debt and Other Borr80
Long Term Debt and Other Borrowings - Components of Convertible Notes (Details) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 24, 2018USD ($)$ / sharesshares | Jun. 25, 2017USD ($) | |
2018 Notes | ||
Debt Instrument [Line Items] | ||
Remaining amortization period (years) | 9 months 23 days | |
2018 Notes | Permanent Equity | ||
Debt Instrument [Line Items] | ||
Carrying amount of equity component, net of tax | $ 89,604 | |
2018 Notes | Temporary Equity | ||
Debt Instrument [Line Items] | ||
Carrying amount of equity component, net of tax | $ 15,186 | |
2041 Notes | ||
Debt Instrument [Line Items] | ||
Remaining amortization period (years) | 22 years 10 months 24 days | 23 years 9 months 23 days |
Fair Value of Notes (Level 2) | $ 1,736,653 | |
Conversion rate (shares of common stock per $1 of principal amount of notes) | 0.0301361 | |
Conversion price (per share of common stock) | $ / shares | $ 33.18 | |
If-converted value in excess of par value | $ 1,394,383 | |
Estimated share dilution using average quarterly stock price of $195.01 per share | shares | 8,176 | |
Average quarterly stock price (usd per share) | $ / shares | $ 195.01 | |
2041 Notes | Permanent Equity | ||
Debt Instrument [Line Items] | ||
Carrying amount of equity component, net of tax | $ 159,120 | $ 156,374 |
2041 Notes | Temporary Equity | ||
Debt Instrument [Line Items] | ||
Carrying amount of equity component, net of tax | $ 78,192 | $ 154,675 |
Long Term Debt and Other Borr81
Long Term Debt and Other Borrowings - Convertible Note Hedges and Warrants Narrative (Details) shares in Millions | 12 Months Ended |
Jun. 24, 2018shares | |
Convertible debt | 1.25% Notes due 2018 | |
Debt Instrument [Line Items] | |
Common Stock issued in settlement of conversion (shares) | 4.8 |
Long Term Debt and Other Borr82
Long Term Debt and Other Borrowings - Warrants and Convertible Note Hedge Arrangements (Details) - $ / shares shares in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Class of Warrant or Right [Line Items] | |||
Estimated share dilution using average quarterly stock price $80.08 per share (shares) | 4,569 | 2,629 | 656 |
2018 Notes | Warrants | |||
Class of Warrant or Right [Line Items] | |||
Underlying shares | 7,557 | ||
Estimated share dilution using average quarterly stock price $80.08 per share (shares) | 4,770 | ||
Average quarterly stock price (usd per share) | $ 195.01 | ||
Exercise price (usd per share) | $ 71.91 |
Long Term Debt and Other Borr83
Long Term Debt and Other Borrowings - Senior Notes Narrative (Details) - Senior notes - USD ($) | Jun. 07, 2016 | Mar. 12, 2015 | Jun. 24, 2018 | Jun. 25, 2017 |
Debt Instrument [Line Items] | ||||
Principal amount | $ 2,400,000,000 | |||
2.75% Notes due 2020 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 500,000,000 | |||
Interest rate percentage | 2.75% | 2.75% | ||
Percentage of principal amount of debt redeemed | 100.00% | |||
Debt instrument, redemption price (percentage) | 101.00% | |||
3.80% Notes due 2025 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 500,000,000 | |||
Interest rate percentage | 3.80% | 3.80% | ||
Percentage of principal amount of debt redeemed | 100.00% | |||
Debt instrument, redemption price (percentage) | 101.00% | |||
2.80 Notes due 2021 | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 800,000,000 | |||
Interest rate percentage | 2.80% | 2.80% | ||
Percentage of principal amount of debt redeemed | 100.00% | |||
Debt instrument, redemption price (percentage) | 101.00% |
Long Term Debt and Other Borr84
Long Term Debt and Other Borrowings - Schedule of Additional Senior Notes Information (Details) $ in Thousands | 12 Months Ended |
Jun. 24, 2018USD ($) | |
2020 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 1 year 8 months 12 days |
2021 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 3 years |
2025 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 6 years 8 months 12 days |
Level 2 | 2020 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 497,250 |
Level 2 | 2021 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | 786,856 |
Level 2 | 2025 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 497,560 |
Long Term Debt and Other Borr85
Long Term Debt and Other Borrowings - Revolving Credit Facility Narrative (Details) - Revolving credit facility - USD ($) | Oct. 13, 2017 | Jun. 24, 2018 | Oct. 12, 2017 |
Line of Credit Facility [Line Items] | |||
Additional increase in the facility | $ 500,000,000 | ||
Revolving unsecured credit facility | 1,250,000,000 | $ 750,000,000 | |
Additional increase in the facility, available expansion | 600,000,000 | ||
Revolving unsecured credit facility maximum borrowing capacity | $ 1,850,000,000 | ||
Credit facility outstanding amount | $ 0 | ||
Federal Funds rate | |||
Line of Credit Facility [Line Items] | |||
Debt instrument basis spread on variable rate (percent) | 0.50% | ||
One-month LIBOR | |||
Line of Credit Facility [Line Items] | |||
Debt instrument basis spread on variable rate (percent) | 1.00% | ||
One-month LIBOR | Minimum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument basis spread on variable rate (percent) | 0.00% | ||
One-month LIBOR | Maximum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument basis spread on variable rate (percent) | 0.50% | ||
London Interbank Offered Rate (LIBOR) | Minimum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument basis spread on variable rate (percent) | 0.90% | ||
London Interbank Offered Rate (LIBOR) | Maximum | |||
Line of Credit Facility [Line Items] | |||
Debt instrument basis spread on variable rate (percent) | 1.50% |
Long Term Debt and Other Borr86
Long Term Debt and Other Borrowings - Commercial Paper Program (Details) - USD ($) | 12 Months Ended | ||
Jun. 24, 2018 | Nov. 13, 2017 | Jun. 25, 2017 | |
Commercial paper | |||
Short-term Debt [Line Items] | |||
Commercial paper | $ 360,000,000 | $ 0 | |
Commercial paper | |||
Short-term Debt [Line Items] | |||
Revolving unsecured credit facility maximum borrowing capacity | $ 1,250,000,000 | ||
Weighted-average interest rate | 2.33% | ||
Maturity | 90 days |
Long Term Debt and Other Borr87
Long Term Debt and Other Borrowings - Schedule of Recognized Interest Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Debt Disclosure [Abstract] | |||
Contractual interest coupon | $ 77,091 | $ 95,195 | $ 63,053 |
Amortization of interest discount | 12,225 | 22,873 | 35,206 |
Amortization of issuance costs | 2,034 | 2,414 | 35,315 |
Effect of interest rate contracts, net | 3 | (4,756) | 359 |
Total interest cost recognized | $ 91,353 | $ 115,726 | $ 133,933 |
Long Term Debt and Other Borr88
Long Term Debt and Other Borrowings - Interest Cost Narrative (Details) - Senior notes - USD ($) $ in Billions | 1 Months Ended | |
Oct. 31, 2016 | Jun. 25, 2017 | |
Debt Instrument [Line Items] | ||
Principal amount | $ 2.4 | |
Debt extinguished | $ 1.6 |
Retirement and Deferred Compe89
Retirement and Deferred Compensation Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Retirement Benefits [Abstract] | |||
Minimum employee 401K contribution (percent) | 1.00% | ||
Maximum employee 401K contribution (percent) | 75.00% | ||
Employer contribution matching (percent) | 50.00% | ||
Maximum employee contributions matched by the Company (percent) | 6.00% | ||
Defined benefit plan, contribution by employer | $ 21.4 | $ 15.2 | $ 13.2 |
Payment of benefits, duration after opening of a deferral subaccount or upon retirement (at least) | 3 years | ||
Deferred compensation plan maximum distribution period | 20 years | ||
Liabilities of Company to plan participants | $ 188 | 155.7 | |
Assets correlated to the deferred compensation obligation | 209 | 180.2 | |
Defined benefit obligations | $ 37.2 | $ 39.9 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |||
Liabilities related to uncertain tax benefits | $ 280,400 | ||
Rental expense | 23,500 | $ 20,200 | $ 16,300 |
Loss Contingencies [Line Items] | |||
Restricted collateral for leasing arrangements | 256,301 | $ 256,205 | |
Letters of Credit | |||
Loss Contingencies [Line Items] | |||
Maximum potential amount of future payments | 21,600 | ||
Operating Lease Cash Collateral | |||
Loss Contingencies [Line Items] | |||
Restricted collateral for leasing arrangements | 250,000 | ||
Fremont and Livermore Lease | |||
Loss Contingencies [Line Items] | |||
Operating Lease residual value of guarantee, maximum | $ 220,400 | ||
Maximum percentage of aggregate investment value guaranteed | 100.00% | ||
Maximum potential amount of future payments | $ 250,000 |
Commitments and Contingencies91
Commitments and Contingencies - Schedule of Contractual Cash Obligations Relating to Existing Capital Leases (Details) $ in Thousands | Jun. 24, 2018USD ($) |
Payments Due by Fiscal Year: | |
2,019 | $ 3,948 |
2,020 | 4,491 |
2,021 | 4,854 |
2,022 | 8,765 |
2,023 | 4,351 |
Capital Leases, Future Minimum Payments Due Thereafter | 37,707 |
Total | 64,116 |
Interest on capital leases | 16,272 |
Current portion of capital leases | 1,498 |
Long-term portion of capital leases | $ 46,346 |
Commitments and Contingencies92
Commitments and Contingencies - Schedule of Contractual Cash Obligations Relating to Operating Leases (Details) $ in Thousands | Jun. 24, 2018USD ($) |
Payments Due by Fiscal Year: | |
2,019 | $ 22,117 |
2,020 | 18,672 |
2,021 | 13,963 |
2,022 | 4,879 |
2,023 | 3,677 |
Thereafter | 11,035 |
Total | $ 74,343 |
Commitments and Contingencies93
Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands | Jun. 24, 2018USD ($) |
Payments Due by Fiscal Year: | |
2,019 | $ 353,295 |
2,020 | 6,281 |
2,021 | 6,036 |
2,022 | 3,287 |
2,023 | 3,165 |
Thereafter | 162 |
Total | $ 372,226 |
Commitments and Contingencies94
Commitments and Contingencies - Schedule of Changes in Product Warranty Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 24, 2018 | Jun. 25, 2017 | |
Movement in Product Warranty Reserves | ||
Balance at beginning of period | $ 161,981 | $ 100,321 |
Warranties issued during the period | 235,252 | 188,813 |
Settlements made during the period | (196,680) | (135,213) |
Changes in liability for pre-existing warranties | (8,073) | 8,060 |
Balance at end of period | $ 192,480 | $ 161,981 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Details) | Jun. 11, 2018$ / sharesshares | May 09, 2018USD ($)financial_institutionagreementshares | Feb. 02, 2018$ / sharesshares | Nov. 20, 2017USD ($)financial_institutionagreementshares | Jun. 30, 2017$ / sharesshares | Apr. 19, 2017USD ($)financial_institutionagreementshares | May 23, 2018$ / sharesshares | Mar. 31, 2018USD ($) | Mar. 25, 2018USD ($) | Nov. 30, 2017USD ($) | Jun. 24, 2018shares | Mar. 25, 2018shares | Dec. 24, 2017shares | Sep. 24, 2017shares | Jun. 24, 2018USD ($)shares |
Equity [Abstract] | |||||||||||||||
Increase in authorized amount | $ 2,000,000,000 | $ 2,000,000,000 | $ 2,000,000,000 | ||||||||||||
Authorized repurchase of Company common stock | $ 4,000,000,000 | ||||||||||||||
Net shares of settlements to cover tax withholding obligations | shares | 577,000 | ||||||||||||||
Amount paid for shares under net share settlements | $ 104,900,000 | ||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Purchase of treasury stock (shares) | shares | 7,702,000 | 1,019,000 | 3,709,000 | 1,779,000 | |||||||||||
May 2018 ARS | |||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Number of accelerated share purchase agreements | agreement | 2 | ||||||||||||||
Number of financial institutions | financial_institution | 2 | ||||||||||||||
Repurchase amount | $ 1,000,000,000 | ||||||||||||||
Purchase of treasury stock (shares) | shares | 1,640,000 | 3,505,000 | |||||||||||||
Percent of prepayment amount | 70.00% | ||||||||||||||
Average price paid per share (usd per share) | $ / shares | $ 194.35 | ||||||||||||||
November 2017 ARS | |||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Number of accelerated share purchase agreements | agreement | 4 | ||||||||||||||
Number of financial institutions | financial_institution | 2 | ||||||||||||||
Repurchase amount | $ 1,000,000,000 | ||||||||||||||
Purchase of treasury stock (shares) | shares | 1,019,000 | 3,254,300 | 984,000 | ||||||||||||
Percent of prepayment amount | 70.00% | ||||||||||||||
Average price paid per share (usd per share) | $ / shares | $ 189.03 | $ 191.55 | |||||||||||||
April 2017 ARS | |||||||||||||||
Equity, Class of Treasury Stock [Line Items] | |||||||||||||||
Number of accelerated share purchase agreements | agreement | 2 | ||||||||||||||
Number of financial institutions | financial_institution | 2 | ||||||||||||||
Repurchase amount | $ 500,000,000 | ||||||||||||||
Purchase of treasury stock (shares) | shares | 780,000 | 2,570,000 | |||||||||||||
Percent of prepayment amount | 70.00% | ||||||||||||||
Average price paid per share (usd per share) | $ / shares | $ 149.16 |
Stock Repurchase Program - Sche
Stock Repurchase Program - Schedule of Repurchases under Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands | 1 Months Ended | 3 Months Ended | ||||||
Mar. 31, 2018 | Mar. 25, 2018 | Nov. 30, 2017 | Jun. 24, 2018 | Mar. 25, 2018 | Dec. 24, 2017 | Sep. 24, 2017 | Jun. 25, 2017 | |
Equity [Abstract] | ||||||||
Total Number of Shares Repurchased | 7,702 | 1,019 | 3,709 | 1,779 | ||||
Total Cost of Repurchase | $ 1,300,821,000 | $ 0 | $ 1,089,744,000 | $ 157,938,000 | ||||
Average Price Paid Per Share (usd per share) | $ 191.03 | $ 0 | $ 196.28 | $ 158.40 | ||||
Amount Available Under Repurchase Program | $ 3,034,459,000 | $ 2,124,203,000 | $ 1,733,638,000 | $ 3,034,459,000 | $ 1,034,459,000 | $ 124,203,000 | $ 282,141,000 | |
Increase in authorized amount | $ 2,000,000,000 | $ 2,000,000,000 | $ 2,000,000,000 |
Comprehensive Income (Loss) - C
Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | $ 6,817,451 | $ 5,894,517 | $ 5,103,144 |
Other comprehensive income (loss) before reclassifications | (46,510) | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) to net income | 16,671 | ||
Securities impairment | 34,090 | ||
Other comprehensive income (loss), net of tax | 4,251 | 7,633 | (11,537) |
Ending balance | 6,501,851 | 6,817,451 | 5,894,517 |
Accumulated Foreign Currency Translation Adjustment | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | (42,371) | ||
Other comprehensive income (loss) before reclassifications | 5,703 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) to net income | 3,946 | ||
Securities impairment | 0 | ||
Other comprehensive income (loss), net of tax | 9,649 | ||
Ending balance | (32,722) | (42,371) | |
Accumulated Unrealized Gain or Loss on Cash Flow Hedges | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | (811) | ||
Other comprehensive income (loss) before reclassifications | (6,960) | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) to net income | 3,729 | ||
Securities impairment | 0 | ||
Other comprehensive income (loss), net of tax | (3,231) | ||
Ending balance | (4,042) | (811) | |
Accumulated Unrealized Holding Gain or Loss on Available-For- Sale Investments | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | 1,106 | ||
Other comprehensive income (loss) before reclassifications | (45,382) | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) to net income | 8,996 | ||
Securities impairment | 34,090 | ||
Other comprehensive income (loss), net of tax | (2,296) | ||
Ending balance | (1,190) | 1,106 | |
Accumulated Unrealized Components of Defined Benefit Plans | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | (19,624) | ||
Other comprehensive income (loss) before reclassifications | 129 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) to net income | 0 | ||
Securities impairment | 0 | ||
Other comprehensive income (loss), net of tax | 129 | ||
Ending balance | (19,495) | (19,624) | |
Total | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | (61,700) | (69,333) | (57,796) |
Other comprehensive income (loss), net of tax | 4,251 | 7,633 | (11,537) |
Ending balance | $ (57,449) | $ (61,700) | $ (69,333) |
Comprehensive Income (Loss) -98
Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Foot Notes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Revenue | $ 11,076,998 | $ 8,013,620 | $ 5,885,893 |
Cost of goods sold | 5,911,966 | 4,410,261 | 3,266,971 |
Selling, general, and administrative | 762,219 | 667,485 | 630,954 |
Other expense, net | 61,510 | $ 90,459 | $ 114,139 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Revenue | (10,030) | ||
Cost of goods sold | (4,393) | ||
Selling, general, and administrative | (1,994) | ||
Other expense, net | $ 86 |
Segment, Geographic Informati99
Segment, Geographic Information and Major Customers - Additional Information (Details) | 12 Months Ended | ||
Jun. 24, 2018customersegmentlocation | Jun. 25, 2017customer | Jun. 26, 2016customer | |
Segment Reporting [Abstract] | |||
Number of reportable business segment | segment | 1 | ||
Number of geographic regions the company operates | location | 7 | ||
Revenue | |||
Segment Reporting Information [Line Items] | |||
Number of customers | customer | 5 | 5 | 4 |
Revenue | Customer 1 | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenue from major customers | 25.00% | 23.00% | 17.00% |
Revenue | Customer 2 | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenue from major customers | 14.00% | 16.00% | 16.00% |
Revenue | Customer 3 | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenue from major customers | 14.00% | 12.00% | 12.00% |
Revenue | Customer 4 | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenue from major customers | 13.00% | 11.00% | 10.00% |
Revenue | Customer 5 | |||
Segment Reporting Information [Line Items] | |||
Percentage of revenue from major customers | 12.00% | 10.00% |
Segment, Geographic Informat100
Segment, Geographic Information and Major Customers - Revenues and Long Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 24, 2018 | Jun. 25, 2017 | Jun. 26, 2016 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 11,076,998 | $ 8,013,620 | $ 5,885,893 |
Long-lived assets | 902,547 | 685,595 | 639,608 |
Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 3,832,798 | 2,480,329 | 1,057,331 |
Long-lived assets | 24,312 | 19,982 | 17,281 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 1,882,799 | 1,041,969 | 983,821 |
Long-lived assets | 3,327 | 1,083 | 980 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 1,784,436 | 1,023,195 | 1,039,951 |
Long-lived assets | 5,466 | 1,906 | 1,339 |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 1,397,978 | 2,095,669 | 1,485,037 |
Long-lived assets | 7,922 | 7,970 | 8,647 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 820,438 | 629,937 | 495,123 |
Long-lived assets | 784,469 | 575,264 | 529,316 |
Southeast Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 781,360 | 401,877 | 605,236 |
Long-lived assets | 3,715 | 2,179 | 668 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 577,189 | 340,644 | 219,394 |
Long-lived assets | $ 73,336 | $ 77,211 | $ 81,377 |
Business Combinations - Additio
Business Combinations - Additional Information (Details) - USD ($) $ in Millions | Aug. 28, 2017 | Jun. 24, 2018 | Jun. 25, 2017 |
Business Combinations [Abstract] | |||
Total purchase consideration | $ 137.6 | ||
SG&A | |||
Business Acquisition [Line Items] | |||
Acquisition related costs | $ 2.9 | $ 9.8 |
Business Combinations - Schedul
Business Combinations - Schedule of Preliminary Purchase Price Allocation (Details) - USD ($) $ in Thousands | Jun. 24, 2018 | Aug. 28, 2017 | Jun. 25, 2017 |
Business Combinations [Abstract] | |||
Intangible assets | $ 48,500 | ||
Assets acquired (including cash of $8.7 million) | 11,463 | ||
Goodwill | $ 1,484,904 | 98,917 | $ 1,385,673 |
Liabilities assumed | (21,269) | ||
Fair value of net assets acquired | 137,611 | ||
Cash | $ 8,700 |
Business Combinations - Sche103
Business Combinations - Schedule of Identified Intangible Assets Assumed in the Acquisition (Details) $ in Thousands | Aug. 28, 2017USD ($) |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 48,500 |
Weighted-Average Estimated Useful Life | 6 years |
Existing technology | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 26,200 |
Weighted-Average Estimated Useful Life | 6 years |
Customer relationships | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 15,000 |
Weighted-Average Estimated Useful Life | 6 years |
Trade names and other intangible assets | |
Acquired Finite-Lived Intangible Assets [Line Items] | |
Fair Value | $ 7,300 |
Weighted-Average Estimated Useful Life | 6 years 4 months 25 days |