Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 23, 2018 | Oct. 22, 2018 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 23, 2018 | |
Document Fiscal Year Focus | 2,019 | |
Document Fiscal Period Focus | Q1 | |
Trading Symbol | LRCX | |
Entity Registrant Name | LAM RESEARCH CORP | |
Entity Central Index Key | 707,549 | |
Current Fiscal Year End Date | --06-30 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 155,182,806 |
Condensed Consolidated Statemen
Condensed Consolidated Statements Of Operations - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | |
Income Statement [Abstract] | ||
Revenue | $ 2,330,691 | $ 2,478,140 |
Cost of goods sold | 1,272,493 | 1,328,797 |
Gross margin | 1,058,198 | 1,149,343 |
Research and development | 291,672 | 275,078 |
Selling, general, and administrative | 174,775 | 181,043 |
Total operating expenses | 466,447 | 456,121 |
Operating income | 591,751 | 693,222 |
Other expense, net | (377) | (5,502) |
Income before income taxes | 591,374 | 687,720 |
Income tax expense | (58,014) | (97,030) |
Net income | $ 533,360 | $ 590,690 |
Net income per share: | ||
Basic (usd per share) | $ 3.43 | $ 3.64 |
Diluted (usd per share) | $ 3.23 | $ 3.21 |
Number of shares used in per share calculations: | ||
Basic (shares) | 155,658 | 162,141 |
Diluted (shares) | 165,327 | 183,880 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 533,360 | $ 590,690 |
Other comprehensive income (loss), net of tax: | ||
Foreign currency translation adjustment | (6,261) | 7,869 |
Cash flow hedges: | ||
Net unrealized gains during the period | 6,866 | 3,062 |
Net losses reclassified into earnings | 1,148 | 2,188 |
Net change | 8,014 | 5,250 |
Available-for-sale investments: | ||
Net unrealized losses during the period | (287) | (1,727) |
Net gains reclassified into earnings | (3) | (123) |
Net change | (290) | (1,850) |
Defined benefit plans, net change in unrealized component | (1,743) | (2,356) |
Other comprehensive (loss) income, net of tax | (280) | 8,913 |
Comprehensive income | $ 533,080 | $ 599,603 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 23, 2018 | Jun. 24, 2018 | [1] |
ASSETS | |||
Cash and cash equivalents | $ 2,568,085 | $ 4,512,257 | |
Investments | 1,050,863 | 437,338 | |
Accounts receivable, less allowance for doubtful accounts of $5,351 as of September 23, 2018, and $5,343 as of June 24, 2018 | 1,846,845 | 2,176,936 | |
Inventories | 1,874,194 | 1,876,162 | |
Prepaid expenses and other current assets | 175,886 | 147,218 | |
Total current assets | 7,515,873 | 9,149,911 | |
Property and equipment, net | 951,376 | 902,547 | |
Restricted cash and investments | 255,924 | 256,301 | |
Goodwill | 1,484,873 | 1,484,904 | |
Intangible assets, net | 282,689 | 317,836 | |
Other assets | 466,842 | 367,979 | |
Total assets | 10,957,577 | 12,479,478 | |
LIABILITIES AND STOCKHOLDERS’ EQUITY | |||
Trade accounts payable | 384,403 | 510,983 | |
Accrued expenses and other current liabilities | 1,347,872 | 1,309,209 | |
Deferred profit | 542,321 | 720,086 | |
Current portion of convertible notes, capital leases, and commercial paper | 550,369 | 610,030 | |
Total current liabilities | 2,824,965 | 3,150,308 | |
Long-term debt and capital leases, less current portion | 1,805,091 | 1,806,562 | |
Income taxes payable | 845,740 | 851,936 | |
Other long-term liabilities | 100,144 | 90,629 | |
Total liabilities | 5,575,940 | 5,899,435 | |
Commitments and contingencies | |||
Temporary equity, convertible notes | 58,812 | 78,192 | |
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, 153,384 shares at September 23, 2018, and 156,892 shares at June 24, 2018 | 153 | 157 | |
Additional paid-in capital | 6,195,024 | 6,144,425 | |
Treasury stock, at cost; 127,500 shares at September 23, 2018, and 119,679 shares at June 24, 2018 | (9,582,409) | (7,846,476) | |
Accumulated other comprehensive loss | (57,729) | (57,449) | |
Retained earnings | 8,767,786 | 8,261,194 | |
Total stockholders’ equity | 5,322,825 | 6,501,851 | |
Total liabilities and stockholders’ equity | $ 10,957,577 | $ 12,479,478 | |
[1] | Derived from audited financial statements |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Sep. 23, 2018 | Jun. 24, 2018 |
Statement of Financial Position [Abstract] | ||
Accounts receivable, allowance for doubtful accounts | $ 5,351 | $ 5,343 |
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 | 153,384,000 | 156,892,000 |
Common stock, shares outstanding | 153,384,000 | 156,892,000 |
Treasury stock, shares | 127,500,000 | 119,679,000 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ||
Net income | $ 533,360 | $ 590,690 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 79,805 | 79,142 |
Deferred income taxes | (83,501) | 43,204 |
Equity-based compensation expense | 50,343 | 41,783 |
Amortization of note discounts and issuance costs | 1,245 | 4,588 |
Other, net | 2,191 | 6,569 |
Changes in operating assets and liabilities | 136,843 | 92,330 |
Net cash provided by operating activities | 720,286 | 858,306 |
CASH FLOWS FROM INVESTING ACTIVITIES: | ||
Capital expenditures and intangible assets | (56,098) | (60,064) |
Business acquisition, net of cash acquired | 0 | (115,613) |
Purchases of available-for-sale securities | (749,829) | (1,425,407) |
Sales and maturities of available-for-sale securities | 137,246 | 1,307,633 |
Other, net | (3,650) | (10,600) |
Net cash used for investing activities | (672,331) | (304,051) |
CASH FLOWS FROM FINANCING ACTIVITIES: | ||
Principal payments on debt | (79,831) | (301,727) |
Net repayments from issuance of commercial paper | (86) | 0 |
Treasury stock purchases | (1,735,895) | (155,385) |
Dividends paid | (174,372) | (72,738) |
Proceeds from issuance of common stock | 0 | 1,042 |
Other, net | (9) | 4 |
Net cash used for financing activities | (1,990,193) | (528,804) |
Effect of exchange rate changes on cash, cash equivalents, and restricted cash | (2,311) | 3,317 |
Net (decrease) increase in cash, cash equivalents, and restricted cash | (1,944,549) | 28,768 |
Cash, cash equivalents, and restricted cash at beginning of period | 4,768,558 | 2,633,739 |
Cash, cash equivalents, and restricted cash at end of period | 2,824,009 | 2,662,507 |
Schedule of non-cash transactions: | ||
Accrued payables for stock repurchases | 162 | 4,350 |
Accrued payables for capital expenditures | 36,613 | 34,531 |
Transfers of inventory to property and equipment, net | 25,613 | 11,852 |
Reconciliation of cash, cash equivalents, and restricted cash | ||
Total Cash, cash equivalents, and restricted cash | $ 4,768,558 | $ 2,633,739 |
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. 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) | 68 | |||||||||
Sale of common stock | 1,042 | 1,042 | ||||||||
Purchase of treasury stock (shares) | (1,790) | |||||||||
Purchase of treasury stock | (159,735) | $ (2) | (159,733) | |||||||
Equity-based compensation expense | 41,783 | 41,783 | ||||||||
Effect of conversion of convertible notes (shares) | 4,236 | |||||||||
Effect of conversion of convertible notes | (29,628) | $ 4 | (29,632) | |||||||
Effect of bond hedge, cash in lieu of shares (shares) | (2,093) | |||||||||
Effect of bond hedge, cash in lieu of shares | 4 | $ (2) | 6 | |||||||
Reclassification from temporary to permanent equity | 32,865 | 32,865 | ||||||||
Net income | 590,690 | 590,690 | ||||||||
Other comprehensive income | 8,913 | 8,913 | ||||||||
Cash dividends declared | (73,127) | (73,127) | ||||||||
Ending balance (shares) at Sep. 24, 2017 | 162,144 | |||||||||
Ending balance at Sep. 24, 2017 | 7,271,178 | $ 162 | 5,891,549 | (5,375,920) | (52,787) | 6,808,174 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Effects of ASU adoption | Adoption of ASU 2016-09 | 40,920 | 40,920 | ||||||||
Beginning balance (shares) at Jun. 24, 2018 | 156,892 | |||||||||
Beginning balance at Jun. 24, 2018 | 6,501,851 | [1] | $ 157 | 6,144,425 | (7,846,476) | (57,449) | 8,261,194 | |||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Sale of common stock (shares) | 32 | |||||||||
Sale of common stock | 0 | |||||||||
Purchase of treasury stock (shares) | (7,808) | |||||||||
Purchase of treasury stock | (1,735,941) | $ (8) | (1,735,933) | |||||||
Equity-based compensation expense | 50,343 | 50,343 | ||||||||
Effect of conversion of convertible notes (shares) | 1,962 | |||||||||
Effect of conversion of convertible notes | (19,112) | $ 2 | (19,114) | |||||||
Exercise of warrants (shares) | 2,306 | |||||||||
Exercise of warrants | (8) | $ 2 | (10) | |||||||
Reclassification from temporary to permanent equity | 19,380 | 19,380 | ||||||||
Effects of ASU 2018-02 adoption | (2,227) | (2,227) | [2] | 2,227 | [2] | |||||
Net income | 533,360 | 533,360 | ||||||||
Other comprehensive income | 1,947 | 1,947 | ||||||||
Other comprehensive income | (280) | |||||||||
Cash dividends declared | (167,907) | (167,907) | ||||||||
Ending balance (shares) at Sep. 23, 2018 | 153,384 | |||||||||
Ending balance at Sep. 23, 2018 | 5,322,825 | $ 153 | $ 6,195,024 | $ (9,582,409) | $ (57,729) | 8,767,786 | ||||
Increase (Decrease) in Stockholders' Equity | ||||||||||
Effects of ASU adoption | Adoption of ASU 2014-09 | [2] | 139,355 | 139,355 | |||||||
Effects of ASU adoption | Adoption of ASU 2016-16 | [2] | $ (443) | $ (443) | |||||||
[1] | Derived from audited financial statements | |||||||||
[2] | Refer to Note 2 - Recent Accounting Pronouncements for more information regarding these FASB Accounting Standard Updates. |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 3 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | |
Statement of Stockholders' Equity [Abstract] | ||
Dividends declared per share (usd per share) | $ 1.10 | $ 0.45 |
BASIS OF PRESENTATION
BASIS OF PRESENTATION | 3 Months Ended |
Sep. 23, 2018 | |
Accounting Policies [Abstract] | |
BASIS OF PRESENTATION | BASIS OF PRESENTATION The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of Lam Research Corporation (“Lam Research” or the “Company”) for the fiscal year ended June 24, 2018 , which are included in the Company’s Annual Report on Form 10-K as of and for the year ended June 24, 2018 (the “2018 Form 10-K”). The Company’s reports on Form 10-K, Form 10-Q and Form 8-K are available online at the Securities and Exchange Commission website on the Internet. The address of that site is www.sec.gov . The Company also posts its reports on Form 10-K, Form 10-Q and Form 8-K on its corporate website at http://investor.lamresearch.com . The content on any website referred to in this Form 10-Q is not a part of or incorporated by reference in this Form 10-Q unless expressly noted. The condensed consolidated financial statements include the accounts of Lam Research and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s reporting period is a 52/53-week fiscal year. The Company’s current fiscal year will end June 30, 2019 and includes 53 weeks. The quarters ended September 23, 2018 (the “September 2018 quarter”) and September 24, 2017 (the “September 2017 quarter”) included 13 |
RECENT ACCOUNTING PRONOUNCEMENT
RECENT ACCOUNTING PRONOUNCEMENTS | 3 Months Ended |
Sep. 23, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
RECENT ACCOUNTING PRONOUNCEMENTS | RECENT ACCOUNTING PRONOUNCEMENTS Recently Adopted In May 2014, the FASB released ASU 2014-09, “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; all of which in combination with ASU 2014-09 were codified as Accounting Standard Codification Topic 606 (“ASC 606”). 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 Company adopted ASC 606 on the first day of the current fiscal year, June 25, 2018, under the modified retrospective approach, applying the amendments to prospective reporting periods. Results for reporting periods beginning on or after June 25, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under ASC 605. In conjunction with the adoption of ASC 606, the Company’s revenue recognition policy has been amended, refer to Note 3 - Revenue for a description of the amendments. The cumulative effect of the changes made to the Company’s Condensed Consolidated Balance Sheet as of June 25, 2018 for the adoption of ASC 606 to all contracts with customers that were not completed as of June 24, 2018 was recorded as an adjustment to retained earnings as of the adoption date as follows: June 24, 2018 June 25, 2018 As reported Adjustments As Adjusted (In thousands) Total assets $ 12,479,478 $ 12,955 $ 12,492,433 Deferred profit $ 720,086 $ (160,695 ) $ 559,391 Total liabilities $ 5,899,435 $ (126,400 ) $ 5,773,035 Stockholders' equity $ 6,501,851 $ 139,355 $ 6,641,206 Upon adoption, the Company recorded a cumulative effect adjustment of $139.4 million , net of tax adjustment of $21.0 million , which increased the June 25, 2018 opening retained earnings balance on the Condensed Consolidated Balance Sheet, primarily as a result of changes in the timing of recognition of system sales. Under ASC 606, the Company recognizes revenue from sales of systems when the Company determines that control has passed to the customer which is generally (1) for products that have been demonstrated to meet product specifications prior to shipment upon shipment or delivery; (2) for products that have not been demonstrated to meet product specifications prior to shipment, revenue is recognized upon completion of installation and receipt of customer acceptance; (3) for transactions where legal title does not pass upon shipment or delivery and the Company does not have a right to payment, revenue is recognized when legal title passes to the customer and the Company has a right to payment, which is generally at customer acceptance. The impact of adoption of ASC 606 on the Company's Condensed Consolidated Statement of Operations and Condensed Consolidated Balance Sheet was as follows: Three months ended September 23, 2018 As Reported Without adoption of ASC 606 Effect of Change Higher/(Lower) (In thousands) Revenue $ 2,330,691 $ 2,082,397 $ 248,294 Cost of goods sold $ 1,272,493 $ 1,166,858 $ 105,635 September 23, 2018 As Reported Without adoption of ASC 606 Effect of Change Higher/(Lower) (In thousands) Deferred profit $ 542,321 $ 824,737 $ (282,416 ) Retained earnings $ 8,767,786 $ 8,485,370 $ 282,416 Except as disclosed above, the adoption of ASC 606 did not have a significant impact on the Company’s Condensed Consolidated Statement of Operations for the three months ended September 23, 2018. In January 2016, the FASB released ASU 2016-01, “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’s adoption of this standard in the first quarter of fiscal year 2019 did not have a material impact on its Condensed 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 adopted this standard update in the first quarter of fiscal year 2019 using a retrospective transition method. The Company’s adoption of this standard did not have a material impact on its Condensed 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. The Company adopted this 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’s adoption of this standard resulted in a $0.4 million decrease to retained earnings and a corresponding $0.4 million increase to other assets on its Condensed 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 adopted this standard in the first quarter of fiscal year 2019, using a retrospective transition method to each period presented. The adoption of this standard did not have a material impact on its Condensed Consolidated Financial Statements. In February 2018, the FASB released ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This standard update addresses a specific consequence of the Tax Cuts and Jobs Act (“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 adopted this standard in the first quarter of fiscal year 2019 using a modified-retrospective approach through a cumulative-effect adjustment directly to retained earnings. The adoption of this standard resulted in a $2.2 million increase to retained earnings, with a corresponding $2.2 million decrease to other comprehensive income. In August 2018, the Securities and Exchange Commission (“SEC”) adopted amendments to eliminate, integrate, update or modify certain of its disclosure requirements. The amendments are part of the SEC’s efforts to improve disclosure effectiveness and were focused on eliminating disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded. The Company adopted these amendments in the first quarter of fiscal Year 2019 and as a result the Company has included a Condensed Consolidated Statement of Stockholders’ Equity to this quarterly report on Form 10-Q. The Company expects that the Company’s 2019 annual report on Form 10-K will omit a number of disclosures previously required in Part II. Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities, as well as other minor changes. Updates Not Yet Effective In January 2016, the FASB released ASU 2016-02, “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. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements”, which provides companies an optional adoption method to ASU 2016-02 whereby a company does not have to adjust comparative period financial statements for the new standard. The Company currently believes the most significant impact upon adoption will be the recognition of right-of-use assets and lease liabilities on the Company's Condensed Consolidated Balance Sheets for those leases currently classified as operating leases. As part of the Company’s assessment and implementation plan, the Company is evaluating and implementing changes to its procedures and controls. In June 2016, the FASB released ASU 2016-13, “Financial Instruments – |
REVENUE
REVENUE | 3 Months Ended |
Sep. 23, 2018 | |
Revenue from Contract with Customer [Abstract] | |
REVENUE | REVENUE Revenue Recognition The Company recognizes revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services by following a five-step process, (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price, and (5) recognize revenue when or as the Company satisfies a performance obligation, as further described below. Identify the contract with a customer . The Company generally considers documentation of terms with an approved purchase order as a customer contract provided that collection is considered probable, which is assessed based on the creditworthiness of the customer as determined by credit checks, payment histories, and/or other circumstances. Identify the performance obligations in the contract . Performance obligations include sales of systems, spare parts, and services; as well as, installation and training services included in customer contracts, both of which have been deemed immaterial in the context of the contract. Determine the transaction price . The transaction price for the Company’s contracts with its customers consists of both fixed and variable consideration provided it is probable that a significant reversal of revenue will not occur when the uncertainty related to variable consideration is resolved. Fixed consideration includes amounts to be contractually billed to the customer while variable consideration includes estimates for discounts and credits for future usage which are based on contractual terms outlined in volume purchase agreements and other factors known at the time. The Company generally invoices customers at shipment and for professional services either as provided or upon meeting certain milestones. Customer invoices are generally due within 30 to 90 days after issuance. The Company’s contracts with customers typically do not include significant financing components as the period between the transfer of performance obligations and timing of payment are generally within one year. Allocate the transaction price to the performance obligations in the contract . For contracts that contain multiple performance obligations, the Company allocates the transaction price to the performance obligations on a relative standalone selling price basis. Standalone selling prices are based on multiple factors including, but not limited to historical discounting trends for products and services and pricing practices in different geographies. Recognize revenue when or as the Company satisfies a performance obligation . Revenue for systems and spares are recognized at a point in time, which is generally upon shipment or delivery. Revenue from services is recognized over time as services are completed or ratably over the contractual period of generally one year or less. Deferred Revenue Revenue of $261.0 million included in deferred revenue at June 25, 2018 was recognized during the three months ended September 23, 2018 . The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of September 23, 2018 and when the Company expects to recognize the amounts as revenue: Less than 1 Year 1-3 Years More than 3 Years Total (In thousands) Deferred revenue $ 555,351 $ 70,964 (1) $ — $ 626,315 (1) This amount is reflected in Deferred profit, within current liabilities, on the Company's Condensed Consolidated Balance Sheets, as the customer can demand performance upon this liability at any time. Disaggregation of Revenue The Company operates in one reportable business segment: manufacturing and servicing of wafer processing semiconductor manufacturing equipment. The Company’s material operating segments qualify for aggregation due to their customer base and similarities in economic characteristics, nature of products and services, and processes for procurement, manufacturing, and distribution. The Company operates in seven geographic regions: United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan. For geographical reporting, revenue is attributed to the geographic location in which the customers’ facilities are located. The Company serves three primary markets: memory, foundry, logic/integrated device manufacturing. The following table presents the Company’s revenues disaggregated by geographic region: Three Months Ended September 23, September 24, (In thousands) Japan $ 670,040 $ 494,423 China 593,831 337,589 Korea 379,771 941,020 Taiwan 280,050 338,730 Southeast Asia 198,135 119,762 United States 120,105 157,224 Europe 88,759 89,392 $ 2,330,691 $ 2,478,140 The following table presents the percentages of system revenues to each of the primary markets we serve: Three Months Ended September 23, 2018 Memory 77 % Foundry 17 % Logic/integrated device manufacturing 6 % |
EQUITY-BASED COMPENSATION PLANS
EQUITY-BASED COMPENSATION PLANS | 3 Months Ended |
Sep. 23, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
EQUITY-BASED COMPENSATION PLANS | EQUITY-BASED COMPENSATION PLANS The Lam Research Corporation 2015 Stock Incentive Plan, as amended (the “2015 Plan”), provides for the grant of non-qualified equity-based awards of the Company’s Common Stock to eligible employees and non-employee directors, including stock options, restricted stock units (“RSUs”), and market-based performance RSUs (“market-based PRSUs”). An option is a right to purchase Common Stock at a set price. An RSU award is an agreement to issue a set number of shares of Common Stock at the time of vesting. The Company’s market-based PRSUs contain both a market condition and a service condition. The Company’s options, RSU, and market-based PRSU awards typically vest over a period of three years . The Company also has an employee stock purchase plan that allows employees to purchase its Common Stock at a discount through payroll deductions. The Company recognized the following equity-based compensation expense (including expense related to the employee stock purchase plan) and related income tax benefit in the Condensed Consolidated Statements of Operations: Three Months Ended September 23, September 24, (in thousands) Equity-based compensation expense $ 50,343 $ 41,783 Income tax benefit recognized related to equity-based compensation expense $ 8,104 $ 13,387 |
OTHER EXPENSE, NET
OTHER EXPENSE, NET | 3 Months Ended |
Sep. 23, 2018 | |
Other Income and Expenses [Abstract] | |
OTHER EXPENSE, NET | OTHER EXPENSE, NET The significant components of other expense, net, are as follows: Three Months Ended September 23, September 24, (in thousands) Interest income $ 18,933 $ 20,209 Interest expense (21,788 ) (23,905 ) Gains on deferred compensation plan related assets, net 5,213 3,453 Loss on extinguishment of debt 83 — Foreign exchange gains (losses), net 51 (3,000 ) Other, net (2,869 ) (2,259 ) $ (377 ) $ (5,502 ) |
INCOME TAX EXPENSE
INCOME TAX EXPENSE | 3 Months Ended |
Sep. 23, 2018 | |
Income Tax Disclosure [Abstract] | |
INCOME TAX EXPENSE | INCOME TAX EXPENSE On December 22, 2017, the “Tax Cuts & Jobs Act” (hereafter referred to as “U.S. tax reform”) was signed into law and was 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 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. The Company has recorded what it believes to be reasonable estimates and the provisional activity is subject to further adjustments under SAB 118. Such adjustments were made during the September 2018 quarter as outlined below, incorporating new information into the estimates; the Company may make further adjustments as new information is made available. 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. The Company recorded an income tax expense of $58.0 million for the three months ended September 23, 2018 , which yielded an effective tax rate of approximately 9.8% . The difference between the U.S. federal statutory tax rate of 21% and the Company’s effective tax rate for the three months ended September 23, 2018 is primarily due to the impact of U.S. tax reform, outlined below, and income in lower tax jurisdictions. The computation of the one-time transition tax on accumulated unrepatriated foreign earnings was recorded on a provisional basis in the fiscal year ended June 24, 2018 and is therefore subject to potential measurement period adjustments under SAB 118. Such an adjustment was recorded in the Company’s Condensed Consolidated Financial Statements as of the period ended September 23, 2018, incorporating new information into the estimate; the Company may make further adjustments as new information is made available. The adjustment recorded was $36.5 million ; revised total estimate is now $919.5 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 elected to pay the one-time transition tax over a period of eight years. Beginning in fiscal year 2019, the Company is subject to the impact of the “Global Intangible Low-Taxed Income” (“GILTI”) provision of U.S. tax reform. The GILTI provision imposes taxes on foreign earnings in excess of a deemed return on tangible assets. The Company has calculated the impact of the GILTI provision on current year earnings and has included the impact in the effective tax rate. In addition, the Company evaluated whether deferred taxes should be recorded in relation to the GILTI provision or if the tax should be recorded in the period in which it occurs. Based on current interpretation, the Company could choose either method as an accounting policy election. The Company made an accounting policy election in the September 2018 quarter to record deferred taxes in relation to the GILTI provision. The Company recorded a provisional benefit for the accounting policy election of $48.0 million . Due to the complexity of the GILTI provision, the Company has not yet finalized its analysis of GILTI. Therefore, the provisional amount which was recorded related to the accounting policy election is subject to adjustment during the measurement period under SAB 118. 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 $31.0 million |
NET INCOME PER SHARE
NET INCOME PER SHARE | 3 Months Ended |
Sep. 23, 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, convertible notes, and warrants. Dilutive shares outstanding include the effect of the convertible notes. Refer to Note 12 - Long-term Debt and Other Borrowings for additional information regarding the Company’s convertible notes. The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share. Three Months Ended September 23, 2018 September 24, 2017 (in thousands, except per share data) Numerator: Net income $ 533,360 $ 590,690 Denominator: Basic average shares outstanding 155,658 162,141 Effect of potential dilutive securities: Employee stock plans 1,539 2,514 Convertible notes 6,075 15,151 Warrants 2,055 4,074 Diluted average shares outstanding 165,327 183,880 Net income per share - basic $ 3.43 $ 3.64 Net income per share - diluted $ 3.23 $ 3.21 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: Three Months Ended September 23, 2018 September 24, 2017 (in thousands) Options and RSUs 87 7 |
FINANCIAL INSTRUMENTS
FINANCIAL INSTRUMENTS | 3 Months Ended |
Sep. 23, 2018 | |
Fair Value Disclosures [Abstract] | |
FINANCIAL INSTRUMENTS | FINANCIAL INSTRUMENTS The Company maintains an investment portfolio of various holdings, types, and maturities. The Company’s mutual funds, which are related to the Company’s obligations under the deferred compensation plan, are classified as trading securities. Investments classified as trading securities are recorded at fair value based upon quoted market prices. Differences between the cost and fair value of trading securities are recognized as other income (expense) in the Condensed Consolidated Statements of Operations. All of the Company’s other investments are classified as available-for-sale and consequently are recorded in the Condensed Consolidated Balance Sheets at fair value with unrealized gains or losses reported as a separate component of accumulated other comprehensive income (loss), net of tax. 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 12 - Long-Term Debt and Other Borrowings for additional information regarding the fair value of the Company’s senior notes and convertible senior notes. 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 September 23, 2018 , and June 24, 2018 : September 23, 2018 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 653,135 $ — $ — $ 653,135 $ 647,238 $ — $ 5,897 $ — Time deposit 980,416 — — 980,416 730,389 — 250,027 — Level 1: Money market funds 1,091,683 — — 1,091,683 1,091,683 — — — U.S. Treasury and agencies 459,201 1 (211 ) 458,991 32,929 426,062 — — Mutual funds 69,807 2,390 (83 ) 72,114 — — — 72,114 Level 1 Total 1,620,691 2,391 (294 ) 1,622,788 1,124,612 426,062 — 72,114 Level 2: Municipal notes and bonds 152,337 2 (581 ) 151,758 — 151,758 — — Government-sponsored enterprises 11,022 — (204 ) 10,818 — 10,818 — — Foreign government bonds 31,052 — (8 ) 31,044 — 31,044 — — Corporate notes and bonds 497,206 76 (999 ) 496,283 65,846 430,437 — — Mortgage backed securities — residential 746 — (2 ) 744 — 744 — — Level 2 Total 692,363 78 (1,794 ) 690,647 65,846 624,801 — — Total $ 3,946,605 $ 2,469 $ (2,088 ) $ 3,946,986 $ 2,568,085 $ 1,050,863 $ 255,924 $ 72,114 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 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. The Company did not recognize any losses on investments due to other-than-temporary impairments during the three months ended September 23, 2018 or September 24, 2017 . Additionally, gross realized gains/(losses) from sales of investments were insignificant in the three months ended September 23, 2018 and September 24, 2017 . The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions: September 23, 2018 Unrealized Losses Unrealized Losses Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) U.S. Treasury and agencies $ 421,723 $ (92 ) $ 5,880 $ (119 ) $ 427,603 $ (211 ) Municipal notes and bonds 141,051 (534 ) 5,725 (47 ) 146,776 (581 ) Mutual funds 17,592 (83 ) — — 17,592 (83 ) Government-sponsored enterprises — — 10,785 (204 ) 10,785 (204 ) Foreign government bonds 26,928 (8 ) — — 26,928 (8 ) Corporate notes and bonds 266,159 (751 ) 24,286 (248 ) 290,445 (999 ) Mortgage backed securities — residential 743 (2 ) — — 743 (2 ) $ 874,196 $ (1,470 ) $ 46,676 $ (618 ) $ 920,872 $ (2,088 ) The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities are as follows as of September 23, 2018 : Cost Estimated (in thousands) Due in one year or less $ 3,018,982 $ 3,018,518 Due after one year through five years 200,903 199,465 Due in more than five years 3,778 3,754 $ 3,223,663 $ 3,221,737 The Company has the ability, if necessary, to liquidate its investments in order to meet the Company’s liquidity needs in the next 12 months. Accordingly, those investments with contractual maturities greater than twelve months from the date of purchase nonetheless are classified as short-term on the accompanying Condensed Consolidated Balance Sheets. Derivative Instruments and Hedging The Company carries derivative financial instruments (“derivatives”) on its Condensed Consolidated Balance Sheets at their fair values. The Company enters into foreign currency forward contracts and foreign currency options with financial institutions with the primary objective of reducing volatility of earnings and cash flows related to foreign currency exchange rate fluctuations. In addition, the Company enters into interest rate swap arrangements to manage interest rate risk. The counterparties to these derivatives are large global financial institutions that the Company believes are creditworthy, and therefore, it does not consider the risk of counterparty nonperformance to be material. 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 (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 three months ended September 23, 2018 and September 24, 2017 associated with forecasted transactions that failed to occur. Additionally, there were no significant gains or losses during the three months ended September 23, 2018 and September 24, 2017 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 September 23, 2018 , the Company had a net gain of $6.2 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 September 23, 2018 , the Company had a net loss of $2.2 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 6.5 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 Condensed 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 September 23, 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 (in thousands) Foreign currency forward contracts Buy Contracts Sell Contracts Buy Contracts Sell Contracts Japanese yen $ — $ 438,871 $ — $ 244,735 Euro 73,297 — 33,956 — Korean won 24,387 — — 169,276 British pound sterling — — 32,923 — Taiwan dollar — — 26,044 — Singapore dollar — — 21,915 — Swiss franc — — 19,059 — Indian rupee — — 3,289 — $ 97,684 $ 438,871 $ 137,186 $ 414,011 Foreign currency option contracts Buy Put Sell Put Buy Put Sell Put Japanese yen (1) $ 53,765 $ 56,236 $ — $ — (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 Condensed Consolidated Balance Sheets as of September 23, 2018 , and June 24, 2018 were as follows: September 23, 2018 June 24, 2018 Fair Value of Derivative Instruments (Level 2) Fair Value of Derivative Instruments (Level 2) Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value (in thousands) Derivatives designated as hedging instruments: Foreign exchange contracts Prepaid expense $ 11,330 Accrued expenses and other current liabilities $ 3,724 Prepaid expense $ 7,581 Accrued expenses and other current liabilities $ 8,866 Interest rate contracts, short-term — Accrued expenses and other current liabilities 4,349 — Accrued expenses and other current liabilities 7,468 Interest rate contracts, long-term — Other long-term liabilities 29,126 — Other long-term liabilities 23,720 Derivatives not designated as hedging instruments: Foreign exchange contracts Prepaid expense 105 Accrued expenses and other current liabilities 46 Prepaid expense 111 Accrued expenses and other current liabilities 32 Total Derivatives $ 11,435 $ 37,245 $ 7,692 $ 40,086 Under the master netting agreements with the respective counterparties to the Company’s derivative contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. However, the Company has elected to present the derivative assets and derivative liabilities on a gross basis on its balance sheet. As of September 23, 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 $6.2 million , resulting in a net derivative asset of $5.2 million and net derivative liability of $31.0 million . As of June 24, 2018 , the potential effect of rights of offset associated with the above foreign exchange contracts would be an offset to both assets and liabilities by $5.6 million , resulting in a net derivative asset of $2.1 million and a net derivative liability of $34.4 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 Condensed Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”) was as follows: Three Months Ended September 23, 2018 Location of Gain (Loss) Gain (Loss) (in thousands) Derivatives in Cash Flow Hedging Relationships Foreign Exchange Contracts Revenue $ 8,441 $ 674 Foreign Exchange Contracts Cost of goods sold (124 ) (1,557 ) Foreign Exchange Contracts Selling, general, and administrative (204 ) (527 ) Interest Rate Contracts Other expense, net — (33 ) $ 8,113 $ (1,443 ) Three Months Ended September 24, 2017 Effective Portion Ineffective Derivatives Designated as Hedging Instruments Location of Gain (Loss) (Loss) Gain (Loss) Gain Gain (Loss) (in thousands) Foreign Exchange Contracts Revenue $ (9 ) $ (3,806 ) $ 2,547 Foreign Exchange Contracts Cost of goods sold 2,443 824 (208 ) Foreign Exchange Contracts Selling, general, and administrative 1,356 714 (117 ) Foreign Exchange Contracts Other expense, net — — (17 ) Interest Rate Contracts Other expense, net — (31 ) — $ 3,790 $ (2,299 ) $ 2,205 The effect of derivative instruments not designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations was as follows: Three Months Ended September 23, September 24, Derivatives Not Designated as Hedging Instruments: Location Gain Gain (in thousands) Foreign Exchange Contracts Other income $ 10,588 $ 2,672 The following table presents the effect of the fair value cash flow hedge accounting on the Statement of Financial Performance as well as presents the location and amount of gain/(loss) recognized in Income on fair value and cash flow hedging relationships: Three Months Ended September 23, 2018 Revenue Cost of Goods Sold Selling, General and Admini-strative 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: $ 2,330,691 $ 1,272,493 $ 174,775 $ (377 ) 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 — — — 2,286 Derivatives designated as hedging instruments — — — (2,286 ) 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 674 (1,557 ) (527 ) — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — — — (33 ) 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. |
INVENTORIES
INVENTORIES | 3 Months Ended |
Sep. 23, 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: September 23, June 24, (in thousands) Raw materials $ 994,676 $ 916,438 Work-in-process 187,352 222,921 Finished goods 692,166 736,803 $ 1,874,194 $ 1,876,162 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS | 3 Months Ended |
Sep. 23, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
GOODWILL AND INTANGIBLE ASSETS | GOODWILL AND INTANGIBLE ASSETS Goodwill The balance of goodwill is approximately $1.5 billion as of September 23, 2018 , and June 24, 2018 , respectively. As of September 23, 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. Intangible Assets The following table provides the Company’s intangible assets: September 23, 2018 June 24, 2018 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 630,214 $ (445,789 ) $ 184,425 $ 630,220 $ (433,309 ) $ 196,911 Existing technology 669,507 (599,452 ) 70,055 669,520 (576,844 ) 92,676 Patents and other intangible assets 101,017 (72,808 ) 28,209 99,767 (71,518 ) 28,249 Total intangible assets $ 1,400,738 $ (1,118,049 ) $ 282,689 $ 1,399,507 $ (1,081,671 ) $ 317,836 During the three months ended September 23, 2018 and September 24, 2017 , the Company recognized $36.4 million and $39.3 million , respectively, in intangible asset amortization expense. The estimated future amortization expense of intangible assets as of September 23, 2018 , was as follows: Fiscal Year Amount (in thousands) 2019 (remaining 9 months) $ 89,651 2020 60,925 2021 58,241 2022 54,680 2023 11,146 Thereafter 8,046 $ 282,689 |
ACCRUED EXPENSES AND OTHER CURR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 3 Months Ended |
Sep. 23, 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: September 23, June 24, (in thousands) Accrued compensation $ 516,644 $ 506,471 Warranty reserves 179,606 192,480 Income and other taxes payable 253,308 185,384 Dividend payable 167,907 174,372 Other 230,407 250,502 $ 1,347,872 $ 1,309,209 |
LONG-TERM DEBT AND OTHER BORROW
LONG-TERM DEBT AND OTHER BORROWINGS | 3 Months Ended |
Sep. 23, 2018 | |
Debt Disclosure [Abstract] | |
LONG-TERM DEBT AND OTHER BORROWINGS | LONG-TERM DEBT AND OTHER BORROWINGS As of September 23, 2018 , and June 24, 2018 , the Company’s outstanding debt consisted of the following: September 23, 2018 June 24, 2018 Amount (in thousands) Effective Interest Rate Amount (in thousands) Effective Interest Rate Fixed-rate 2.75% Senior Notes Due March 15, 2020 ("2020 Notes") $ 500,000 2.88 % $ 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") 247,510 (1) 4.28 % 326,953 (1) 4.28 % Commercial paper 360,000 2.30 % (2) 360,000 2.33 % (2) Total debt outstanding, at par 2,407,510 2,486,953 Unamortized discount (65,388 ) (85,196 ) Fair value adjustment - interest rate contracts (33,475 ) (31,189 ) Unamortized bond issuance costs (1,688 ) (1,820 ) Total debt outstanding, at carrying value $ 2,306,959 $ 2,368,748 Reported as: Current portion of long-term debt, and commercial paper $ 548,400 (1) $ 608,532 (1) Long-term debt 1,758,559 1,760,216 Total debt outstanding, at carrying value $ 2,306,959 $ 2,368,748 ____________________________ (1) As of the report date, these notes were convertible at the option of the bondholder. 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. (2) Represents the weighted average effective interest rate for all outstanding balances as of the report date. Convertible Senior Notes In June 2012, with the acquisition of Novellus Systems, Inc. (“Novellus”), the Company assumed $700 million in aggregate principal amount of 2.625% Convertible Senior Notes due May 2041 (the “2041 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. 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 2041 Notes. The initial debt components of the 2041 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. The 2041 Notes may be redeemed on or after May 21, 2021 at a price equal to outstanding principal plus accrued and unpaid interest if the last reported sales price of common shares has been equal to or more than 150% of the then applicable conversion price for at least 20 trading days during the 30 consecutive trading days prior to the redemption notice date. Under certain circumstances, the 2041 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 the 2041 Note conversions in the three months ended September 23, 2018 , was approximately $79.4 million . During the quarter ended September 23, 2018 , and in the subsequent period through October 19, 2018, the Company received notice of conversion of an additional $6.0 million principal value of 2041 Notes. Selected additional information regarding the 2041 Notes outstanding as of September 23, 2018 , and June 24, 2018 , is as follows: September 23, 2018 June 24, 2018 2041 Notes 2041 Notes (in thousands, except years, percentages, conversion rate, and conversion price) Carrying amount of permanent equity component, net of tax $ 159,523 $ 159,120 Carrying amount of temporary equity component, net of tax $ 58,812 $ 78,192 Remaining amortization period (years) 22.6 22.9 Fair Value of Notes (Level 2) $ 1,161,772 Conversion rate (shares of common stock per $1,000 principal amount of notes) 30.3454 Conversion price (per share of common stock) $ 32.95 If-converted value in excess of par value $ 921,771 Estimated share dilution using average quarterly stock price $172.39 per share 6,075 Convertible Warrants The Company has warrants outstanding in connection with its 2018 convertible notes that matured in May 2018. 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. During the three months ended September 23, 2018 , 4.1 million warrants associated with the 2018 Notes were exercised, resulting in the issuance of approximately 2.3 million shares of the Company's Common Stock. The following table presents the details of the outstanding warrants as of September 23, 2018 : 2018 Notes (shares in thousands) Warrants: Underlying shares 3,500 Estimated share dilution using average quarterly stock price $172.39 per share 2,055 Exercise price $71.42 Remaining expiration date range September 24 - 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 (the “2020 Notes”) and $500 million aggregate principal amount of the Company’s Senior Notes due March, 2025 (the “2025 Notes”, together with the 2020 Notes, the “Senior Notes”). 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 - Financial Instruments for additional information regarding these interest rate contracts. The Company may redeem the Senior Notes at a redemption price equal to 100% of the principal amount of such series (“par”), plus a “make whole” premium as described in the indenture in respect of the Senior 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 the Senior Notes at a price equal to 101% of the principal amount of the Senior 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 (the “2021 Notes”, 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 September 23, 2018 , is as follows: Remaining Amortization period Fair Value of Notes (Level 2) (years) (in thousands) 2020 Notes 1.5 $ 496,460 2021 Notes 2.7 $ 787,304 2025 Notes 6.5 $ 494,860 Commercial Paper Program On November 13, 2017, the Company established a commercial paper program (“the CP Program”) under which the Company may issue unsecured commercial paper notes on a private placement basis up to a maximum aggregate principal amount of $1.25 billion . The net proceeds from the commercial paper 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 September 23, 2018 , borrowings under the CP Program totaled $360.0 million , with a weighted-average interest rate of 2.30% and maturities of 90 days or less. Amounts available under the CP Program may be re-borrowed. 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 million to $1.25 billion with a syndicate of lenders. The Amended Credit Agreement provides for 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 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 September 23, 2018 , the Company had no borrowings outstanding under the credit facility and was in compliance with all financial covenants. Interest Cost The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Senior Notes, convertible notes, the term loan agreement, commercial paper, and the revolving credit facility during the three months ended September 23, 2018 , and September 24, 2017 . Three Months Ended September 23, September 24, (in thousands) Contractual interest coupon $ 17,427 $ 17,956 Amortization of interest discount 900 4,104 Amortization of issuance costs 329 485 Effect of interest rate contracts, net 753 (349 ) Total interest cost recognized $ 19,409 $ 22,196 |
COMMITMENTS AND CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 3 Months Ended |
Sep. 23, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
COMMITMENTS AND CONTINGENCIES | COMMITMENTS AND CONTINGENCIES Operating Leases and Related Guarantees The Company leases the majority of its administrative, research and development (“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 has operating leases regarding certain improved properties in Fremont and Livermore, California (the “Operating Leases”). The Company was required to maintain cash collateral in an aggregate of approximately $250.0 million in separate interest-bearing accounts as security for the Company’s obligations. These amounts are recorded with other restricted cash and investments in the Company’s Condensed Consolidated Balance Sheet as of September 23, 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 remarketed. 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 than approximately $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. 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 certain insurance contracts that are intended to limit its exposure to such indemnifications. As of September 23, 2018 , the Company had not recorded any liability 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 September 23, 2018 , the maximum potential amount of future payments that it could be required to make under these arrangements and letters of credit was $26.1 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. In addition, the Company has entered into indemnification agreements with its officers and directors, consistent with its Bylaws and Articles of Incorporation; and under California law, the Company is required to provide indemnification to all its employees for actions within the scope of their employment. Although the Company maintains insurance contracts that cover some of the potential liability associated with these indemnification agreements, there is no guarantee that all such liabilities will be covered. The Company does not believe, based on historical experience and information currently available, that it is probable that any material amounts will be required to be paid under such indemnification agreements or statutory obligations. Warranties The Company provides standard warranties on its systems. The liability amount is based on actual historical warranty spending activity by type of system, customer, and geographic region, modified for any known differences such as the impact of system reliability improvements. Changes in the Company’s product warranty reserves were as follows: Three Months Ended September 23, September 24, (in thousands) Balance at beginning of period $ 192,480 $ 161,981 Warranties issued during the period 69,575 48,790 Settlements made during the period (87,305 ) (44,053 ) Changes in liability for pre-existing warranties 4,856 1,619 Balance at end of period $ 179,606 $ 168,337 Legal proceedings |
STOCK REPURCHASE PROGRAM
STOCK REPURCHASE PROGRAM | 3 Months Ended |
Sep. 23, 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 increased 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, cash generation, 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 of Total Cost of Average Price (1) Amount (in thousands, except per share data) Available balance as of June 24, 2018 $ 1,733,638 Quarter ended September 23, 2018 7,807 $ 1,733,530 $ 183.55 $ 108 (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, during the three months ended September 23, 2018 , the Company acquired 14 thousand shares at a total cost of $2.4 million which the Company withheld through net settlements to cover minimum tax withholding obligations upon the vesting of restricted stock unit awards granted under the Company’s equity compensation plans. The shares retained by the Company through these net share settlements are not a part of the Board-authorized repurchase program but instead are authorized under the Company’s equity compensation plan. Accelerated Share Repurchase Agreements Executed in September Quarter On August 15, 2018, the Company entered into four separate accelerated share repurchase agreements (collectively, the "August 2018 ASR") with two financial institutions to repurchase a total of $1.4 billion of Common Stock. The Company took an initial delivery of approximately 5.8 million shares, which represented 75% |
ACCUMULATED OTHER COMPREHENSIVE
ACCUMULATED OTHER COMPREHENSIVE LOSS | 3 Months Ended |
Sep. 23, 2018 | |
Equity [Abstract] | |
ACCUMULATED OTHER COMPREHENSIVE LOSS | ACCUMULATED OTHER COMPREHENSIVE LOSS The components of accumulated other comprehensive income (loss), net of tax at the end of the period, as well as the activity during the period, were as follows: Accumulated Foreign Currency Translation Adjustment Accumulated Accumulated Accumulated Total (in thousands) Balance as of June 24, 2018 $ (32,722 ) $ (4,042 ) $ (1,190 ) $ (19,495 ) $ (57,449 ) Other comprehensive (loss) income before reclassifications (6,261 ) 7,265 (287 ) 85 802 Losses (income) reclassified from accumulated other comprehensive income (loss) to net income — 1,148 (1) (3 ) (2) — 1,145 Effects of ASU 2018-02 adoption — (399 ) — (1,828 ) (2,227 ) Net current-period other comprehensive income (loss) $ (6,261 ) $ 8,014 $ (290 ) $ (1,743 ) $ (280 ) Balance as of September 23, 2018 $ (38,983 ) $ 3,972 $ (1,480 ) $ (21,238 ) $ (57,729 ) (1) Amount of after tax gain reclassified from AOCI into net income located in revenue: $600 gain; cost of goods sold: $1,325 loss; selling, general, and administrative expenses: $398 loss; and other income and expense: $25 loss. |
BASIS OF PRESENTATION (Policies
BASIS OF PRESENTATION (Policies) | 3 Months Ended |
Sep. 23, 2018 | |
Accounting Policies [Abstract] | |
Consolidation | The condensed consolidated financial statements include the accounts of Lam Research and its wholly-owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Fiscal Period | The Company’s reporting period is a 52/53-week fiscal year. The Company’s current fiscal year will end June 30, 2019 and includes 53 |
Recent Accounting Pronouncements | Recently Adopted In May 2014, the FASB released ASU 2014-09, “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; all of which in combination with ASU 2014-09 were codified as Accounting Standard Codification Topic 606 (“ASC 606”). 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 Company adopted ASC 606 on the first day of the current fiscal year, June 25, 2018, under the modified retrospective approach, applying the amendments to prospective reporting periods. Results for reporting periods beginning on or after June 25, 2018 are presented under ASC 606, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under ASC 605. In conjunction with the adoption of ASC 606, the Company’s revenue recognition policy has been amended, refer to Note 3 - Revenue for a description of the amendments. The cumulative effect of the changes made to the Company’s Condensed Consolidated Balance Sheet as of June 25, 2018 for the adoption of ASC 606 to all contracts with customers that were not completed as of June 24, 2018 was recorded as an adjustment to retained earnings as of the adoption date as follows: June 24, 2018 June 25, 2018 As reported Adjustments As Adjusted (In thousands) Total assets $ 12,479,478 $ 12,955 $ 12,492,433 Deferred profit $ 720,086 $ (160,695 ) $ 559,391 Total liabilities $ 5,899,435 $ (126,400 ) $ 5,773,035 Stockholders' equity $ 6,501,851 $ 139,355 $ 6,641,206 Upon adoption, the Company recorded a cumulative effect adjustment of $139.4 million , net of tax adjustment of $21.0 million , which increased the June 25, 2018 opening retained earnings balance on the Condensed Consolidated Balance Sheet, primarily as a result of changes in the timing of recognition of system sales. Under ASC 606, the Company recognizes revenue from sales of systems when the Company determines that control has passed to the customer which is generally (1) for products that have been demonstrated to meet product specifications prior to shipment upon shipment or delivery; (2) for products that have not been demonstrated to meet product specifications prior to shipment, revenue is recognized upon completion of installation and receipt of customer acceptance; (3) for transactions where legal title does not pass upon shipment or delivery and the Company does not have a right to payment, revenue is recognized when legal title passes to the customer and the Company has a right to payment, which is generally at customer acceptance. The impact of adoption of ASC 606 on the Company's Condensed Consolidated Statement of Operations and Condensed Consolidated Balance Sheet was as follows: Three months ended September 23, 2018 As Reported Without adoption of ASC 606 Effect of Change Higher/(Lower) (In thousands) Revenue $ 2,330,691 $ 2,082,397 $ 248,294 Cost of goods sold $ 1,272,493 $ 1,166,858 $ 105,635 September 23, 2018 As Reported Without adoption of ASC 606 Effect of Change Higher/(Lower) (In thousands) Deferred profit $ 542,321 $ 824,737 $ (282,416 ) Retained earnings $ 8,767,786 $ 8,485,370 $ 282,416 Except as disclosed above, the adoption of ASC 606 did not have a significant impact on the Company’s Condensed Consolidated Statement of Operations for the three months ended September 23, 2018. In January 2016, the FASB released ASU 2016-01, “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’s adoption of this standard in the first quarter of fiscal year 2019 did not have a material impact on its Condensed 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 adopted this standard update in the first quarter of fiscal year 2019 using a retrospective transition method. The Company’s adoption of this standard did not have a material impact on its Condensed 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. The Company adopted this 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’s adoption of this standard resulted in a $0.4 million decrease to retained earnings and a corresponding $0.4 million increase to other assets on its Condensed 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 adopted this standard in the first quarter of fiscal year 2019, using a retrospective transition method to each period presented. The adoption of this standard did not have a material impact on its Condensed Consolidated Financial Statements. In February 2018, the FASB released ASU 2018-02, “Reclassification of Certain Tax Effects from Accumulated Other Comprehensive Income.” This standard update addresses a specific consequence of the Tax Cuts and Jobs Act (“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 adopted this standard in the first quarter of fiscal year 2019 using a modified-retrospective approach through a cumulative-effect adjustment directly to retained earnings. The adoption of this standard resulted in a $2.2 million increase to retained earnings, with a corresponding $2.2 million decrease to other comprehensive income. In August 2018, the Securities and Exchange Commission (“SEC”) adopted amendments to eliminate, integrate, update or modify certain of its disclosure requirements. The amendments are part of the SEC’s efforts to improve disclosure effectiveness and were focused on eliminating disclosure requirements that have become redundant, duplicative, overlapping, outdated, or superseded. The Company adopted these amendments in the first quarter of fiscal Year 2019 and as a result the Company has included a Condensed Consolidated Statement of Stockholders’ Equity to this quarterly report on Form 10-Q. The Company expects that the Company’s 2019 annual report on Form 10-K will omit a number of disclosures previously required in Part II. Item 5. Market for the Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities, as well as other minor changes. Updates Not Yet Effective In January 2016, the FASB released ASU 2016-02, “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. In July 2018, the FASB issued ASU 2018-11, “Leases (Topic 842): Targeted Improvements”, which provides companies an optional adoption method to ASU 2016-02 whereby a company does not have to adjust comparative period financial statements for the new standard. The Company currently believes the most significant impact upon adoption will be the recognition of right-of-use assets and lease liabilities on the Company's Condensed Consolidated Balance Sheets for those leases currently classified as operating leases. As part of the Company’s assessment and implementation plan, the Company is evaluating and implementing changes to its procedures and controls. In June 2016, the FASB released ASU 2016-13, “Financial Instruments – |
Inventories | Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. System shipments to customers in Japan, for which title does not transfer until customer acceptance, are classified as finished goods inventory and carried at cost until title transfers. |
Warranties | The Company provides standard warranties on its systems. The liability amount is based on actual historical warranty spending activity by type of system, customer, and geographic region, modified for any known differences such as the impact of system reliability improvements. |
RECENT ACCOUNTING PRONOUNCEME_2
RECENT ACCOUNTING PRONOUNCEMENTS (Tables) | 3 Months Ended |
Sep. 23, 2018 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of New Accounting Pronouncements and Changes in Accounting Principles | The impact of adoption of ASC 606 on the Company's Condensed Consolidated Statement of Operations and Condensed Consolidated Balance Sheet was as follows: Three months ended September 23, 2018 As Reported Without adoption of ASC 606 Effect of Change Higher/(Lower) (In thousands) Revenue $ 2,330,691 $ 2,082,397 $ 248,294 Cost of goods sold $ 1,272,493 $ 1,166,858 $ 105,635 September 23, 2018 As Reported Without adoption of ASC 606 Effect of Change Higher/(Lower) (In thousands) Deferred profit $ 542,321 $ 824,737 $ (282,416 ) Retained earnings $ 8,767,786 $ 8,485,370 $ 282,416 June 24, 2018 June 25, 2018 As reported Adjustments As Adjusted (In thousands) Total assets $ 12,479,478 $ 12,955 $ 12,492,433 Deferred profit $ 720,086 $ (160,695 ) $ 559,391 Total liabilities $ 5,899,435 $ (126,400 ) $ 5,773,035 Stockholders' equity $ 6,501,851 $ 139,355 $ 6,641,206 |
REVENUE (Tables)
REVENUE (Tables) | 3 Months Ended |
Sep. 23, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Summary of Contract Transaction Price not yet Recognized as Revenue | The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of September 23, 2018 and when the Company expects to recognize the amounts as revenue: Less than 1 Year 1-3 Years More than 3 Years Total (In thousands) Deferred revenue $ 555,351 $ 70,964 (1) $ — $ 626,315 |
Disaggregation of Revenue | The following table presents the Company’s revenues disaggregated by geographic region: Three Months Ended September 23, September 24, (In thousands) Japan $ 670,040 $ 494,423 China 593,831 337,589 Korea 379,771 941,020 Taiwan 280,050 338,730 Southeast Asia 198,135 119,762 United States 120,105 157,224 Europe 88,759 89,392 $ 2,330,691 $ 2,478,140 |
EQUITY-BASED COMPENSATION PLA_2
EQUITY-BASED COMPENSATION PLANS (Tables) | 3 Months Ended |
Sep. 23, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Recognized Equity Based Compensation Expense and Related Income Tax Benefit | The Company recognized the following equity-based compensation expense (including expense related to the employee stock purchase plan) and related income tax benefit in the Condensed Consolidated Statements of Operations: Three Months Ended September 23, September 24, (in thousands) Equity-based compensation expense $ 50,343 $ 41,783 Income tax benefit recognized related to equity-based compensation expense $ 8,104 $ 13,387 |
OTHER EXPENSE, NET (Tables)
OTHER EXPENSE, NET (Tables) | 3 Months Ended |
Sep. 23, 2018 | |
Other Income and Expenses [Abstract] | |
Components of Other Expense, Net | The significant components of other expense, net, are as follows: Three Months Ended September 23, September 24, (in thousands) Interest income $ 18,933 $ 20,209 Interest expense (21,788 ) (23,905 ) Gains on deferred compensation plan related assets, net 5,213 3,453 Loss on extinguishment of debt 83 — Foreign exchange gains (losses), net 51 (3,000 ) Other, net (2,869 ) (2,259 ) $ (377 ) $ (5,502 ) |
NET INCOME PER SHARE (Tables)
NET INCOME PER SHARE (Tables) | 3 Months Ended |
Sep. 23, 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. Three Months Ended September 23, 2018 September 24, 2017 (in thousands, except per share data) Numerator: Net income $ 533,360 $ 590,690 Denominator: Basic average shares outstanding 155,658 162,141 Effect of potential dilutive securities: Employee stock plans 1,539 2,514 Convertible notes 6,075 15,151 Warrants 2,055 4,074 Diluted average shares outstanding 165,327 183,880 Net income per share - basic $ 3.43 $ 3.64 Net income per share - diluted $ 3.23 $ 3.21 |
Schedule of Potentially Dilutive Securities Excluded from EPS Calculations | The following potentially dilutive securities were excluded: Three Months Ended September 23, 2018 September 24, 2017 (in thousands) Options and RSUs 87 7 |
FINANCIAL INSTRUMENTS (Tables)
FINANCIAL INSTRUMENTS (Tables) | 3 Months Ended |
Sep. 23, 2018 | |
Fair Value Disclosures [Abstract] | |
Cash, Cash Equivalents, 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 September 23, 2018 , and June 24, 2018 : September 23, 2018 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 653,135 $ — $ — $ 653,135 $ 647,238 $ — $ 5,897 $ — Time deposit 980,416 — — 980,416 730,389 — 250,027 — Level 1: Money market funds 1,091,683 — — 1,091,683 1,091,683 — — — U.S. Treasury and agencies 459,201 1 (211 ) 458,991 32,929 426,062 — — Mutual funds 69,807 2,390 (83 ) 72,114 — — — 72,114 Level 1 Total 1,620,691 2,391 (294 ) 1,622,788 1,124,612 426,062 — 72,114 Level 2: Municipal notes and bonds 152,337 2 (581 ) 151,758 — 151,758 — — Government-sponsored enterprises 11,022 — (204 ) 10,818 — 10,818 — — Foreign government bonds 31,052 — (8 ) 31,044 — 31,044 — — Corporate notes and bonds 497,206 76 (999 ) 496,283 65,846 430,437 — — Mortgage backed securities — residential 746 — (2 ) 744 — 744 — — Level 2 Total 692,363 78 (1,794 ) 690,647 65,846 624,801 — — Total $ 3,946,605 $ 2,469 $ (2,088 ) $ 3,946,986 $ 2,568,085 $ 1,050,863 $ 255,924 $ 72,114 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 |
Schedule of Cash, Cash Equivalents, Investments and Restricted Cash and Investments in Unrealized Loss Positions | The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions: September 23, 2018 Unrealized Losses Unrealized Losses Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) U.S. Treasury and agencies $ 421,723 $ (92 ) $ 5,880 $ (119 ) $ 427,603 $ (211 ) Municipal notes and bonds 141,051 (534 ) 5,725 (47 ) 146,776 (581 ) Mutual funds 17,592 (83 ) — — 17,592 (83 ) Government-sponsored enterprises — — 10,785 (204 ) 10,785 (204 ) Foreign government bonds 26,928 (8 ) — — 26,928 (8 ) Corporate notes and bonds 266,159 (751 ) 24,286 (248 ) 290,445 (999 ) Mortgage backed securities — residential 743 (2 ) — — 743 (2 ) $ 874,196 $ (1,470 ) $ 46,676 $ (618 ) $ 920,872 $ (2,088 ) |
Schedule of Amortized Cost and Fair Value of Cash Equivalents, Investments, Restricted Cash and Investments with Contractual Maturities | The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities are as follows as of September 23, 2018 : Cost Estimated (in thousands) Due in one year or less $ 3,018,982 $ 3,018,518 Due after one year through five years 200,903 199,465 Due in more than five years 3,778 3,754 $ 3,223,663 $ 3,221,737 |
Schedule of Outstanding Foreign Currency Forward Contracts | As of September 23, 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 (in thousands) Foreign currency forward contracts Buy Contracts Sell Contracts Buy Contracts Sell Contracts Japanese yen $ — $ 438,871 $ — $ 244,735 Euro 73,297 — 33,956 — Korean won 24,387 — — 169,276 British pound sterling — — 32,923 — Taiwan dollar — — 26,044 — Singapore dollar — — 21,915 — Swiss franc — — 19,059 — Indian rupee — — 3,289 — $ 97,684 $ 438,871 $ 137,186 $ 414,011 Foreign currency option contracts Buy Put Sell Put Buy Put Sell Put Japanese yen (1) $ 53,765 $ 56,236 $ — $ — (1) |
Schedule of Fair Value of Derivatives Instruments | The fair value of derivative instruments in the Company’s Condensed Consolidated Balance Sheets as of September 23, 2018 , and June 24, 2018 were as follows: September 23, 2018 June 24, 2018 Fair Value of Derivative Instruments (Level 2) Fair Value of Derivative Instruments (Level 2) Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value Balance Sheet Fair Value (in thousands) Derivatives designated as hedging instruments: Foreign exchange contracts Prepaid expense $ 11,330 Accrued expenses and other current liabilities $ 3,724 Prepaid expense $ 7,581 Accrued expenses and other current liabilities $ 8,866 Interest rate contracts, short-term — Accrued expenses and other current liabilities 4,349 — Accrued expenses and other current liabilities 7,468 Interest rate contracts, long-term — Other long-term liabilities 29,126 — Other long-term liabilities 23,720 Derivatives not designated as hedging instruments: Foreign exchange contracts Prepaid expense 105 Accrued expenses and other current liabilities 46 Prepaid expense 111 Accrued expenses and other current liabilities 32 Total Derivatives $ 11,435 $ 37,245 $ 7,692 $ 40,086 |
Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations | The effect of derivative instruments designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”) was as follows: Three Months Ended September 23, 2018 Location of Gain (Loss) Gain (Loss) (in thousands) Derivatives in Cash Flow Hedging Relationships Foreign Exchange Contracts Revenue $ 8,441 $ 674 Foreign Exchange Contracts Cost of goods sold (124 ) (1,557 ) Foreign Exchange Contracts Selling, general, and administrative (204 ) (527 ) Interest Rate Contracts Other expense, net — (33 ) $ 8,113 $ (1,443 ) Three Months Ended September 24, 2017 Effective Portion Ineffective Derivatives Designated as Hedging Instruments Location of Gain (Loss) (Loss) Gain (Loss) Gain Gain (Loss) (in thousands) Foreign Exchange Contracts Revenue $ (9 ) $ (3,806 ) $ 2,547 Foreign Exchange Contracts Cost of goods sold 2,443 824 (208 ) Foreign Exchange Contracts Selling, general, and administrative 1,356 714 (117 ) Foreign Exchange Contracts Other expense, net — — (17 ) Interest Rate Contracts Other expense, net — (31 ) — $ 3,790 $ (2,299 ) $ 2,205 The effect of derivative instruments not designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations was as follows: Three Months Ended September 23, September 24, Derivatives Not Designated as Hedging Instruments: Location Gain Gain (in thousands) Foreign Exchange Contracts Other income $ 10,588 $ 2,672 The following table presents the effect of the fair value cash flow hedge accounting on the Statement of Financial Performance as well as presents the location and amount of gain/(loss) recognized in Income on fair value and cash flow hedging relationships: Three Months Ended September 23, 2018 Revenue Cost of Goods Sold Selling, General and Admini-strative 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: $ 2,330,691 $ 1,272,493 $ 174,775 $ (377 ) 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 — — — 2,286 Derivatives designated as hedging instruments — — — (2,286 ) 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 674 (1,557 ) (527 ) — Interest rate contracts: Amount of gain or (loss) reclassified from accumulated other comprehensive income into income — — — (33 ) |
INVENTORIES (Tables)
INVENTORIES (Tables) | 3 Months Ended |
Sep. 23, 2018 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: September 23, June 24, (in thousands) Raw materials $ 994,676 $ 916,438 Work-in-process 187,352 222,921 Finished goods 692,166 736,803 $ 1,874,194 $ 1,876,162 |
GOODWILL AND INTANGIBLE ASSETS
GOODWILL AND INTANGIBLE ASSETS (Tables) | 3 Months Ended |
Sep. 23, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets | The following table provides the Company’s intangible assets: September 23, 2018 June 24, 2018 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 630,214 $ (445,789 ) $ 184,425 $ 630,220 $ (433,309 ) $ 196,911 Existing technology 669,507 (599,452 ) 70,055 669,520 (576,844 ) 92,676 Patents and other intangible assets 101,017 (72,808 ) 28,209 99,767 (71,518 ) 28,249 Total intangible assets $ 1,400,738 $ (1,118,049 ) $ 282,689 $ 1,399,507 $ (1,081,671 ) $ 317,836 |
Estimated Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets as of September 23, 2018 , was as follows: Fiscal Year Amount (in thousands) 2019 (remaining 9 months) $ 89,651 2020 60,925 2021 58,241 2022 54,680 2023 11,146 Thereafter 8,046 $ 282,689 |
ACCRUED EXPENSES AND OTHER CU_2
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 3 Months Ended |
Sep. 23, 2018 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: September 23, June 24, (in thousands) Accrued compensation $ 516,644 $ 506,471 Warranty reserves 179,606 192,480 Income and other taxes payable 253,308 185,384 Dividend payable 167,907 174,372 Other 230,407 250,502 $ 1,347,872 $ 1,309,209 |
LONG-TERM DEBT AND OTHER BORR_2
LONG-TERM DEBT AND OTHER BORROWINGS (Tables) | 3 Months Ended |
Sep. 23, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | As of September 23, 2018 , and June 24, 2018 , the Company’s outstanding debt consisted of the following: September 23, 2018 June 24, 2018 Amount (in thousands) Effective Interest Rate Amount (in thousands) Effective Interest Rate Fixed-rate 2.75% Senior Notes Due March 15, 2020 ("2020 Notes") $ 500,000 2.88 % $ 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") 247,510 (1) 4.28 % 326,953 (1) 4.28 % Commercial paper 360,000 2.30 % (2) 360,000 2.33 % (2) Total debt outstanding, at par 2,407,510 2,486,953 Unamortized discount (65,388 ) (85,196 ) Fair value adjustment - interest rate contracts (33,475 ) (31,189 ) Unamortized bond issuance costs (1,688 ) (1,820 ) Total debt outstanding, at carrying value $ 2,306,959 $ 2,368,748 Reported as: Current portion of long-term debt, and commercial paper $ 548,400 (1) $ 608,532 (1) Long-term debt 1,758,559 1,760,216 Total debt outstanding, at carrying value $ 2,306,959 $ 2,368,748 ____________________________ (1) As of the report date, these notes were convertible at the option of the bondholder. 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. (2) |
Components of Convertible Notes | Selected additional information regarding the 2041 Notes outstanding as of September 23, 2018 , and June 24, 2018 , is as follows: September 23, 2018 June 24, 2018 2041 Notes 2041 Notes (in thousands, except years, percentages, conversion rate, and conversion price) Carrying amount of permanent equity component, net of tax $ 159,523 $ 159,120 Carrying amount of temporary equity component, net of tax $ 58,812 $ 78,192 Remaining amortization period (years) 22.6 22.9 Fair Value of Notes (Level 2) $ 1,161,772 Conversion rate (shares of common stock per $1,000 principal amount of notes) 30.3454 Conversion price (per share of common stock) $ 32.95 If-converted value in excess of par value $ 921,771 Estimated share dilution using average quarterly stock price $172.39 per share 6,075 |
Warrants and Convertible Note Hedge Arrangements | The following table presents the details of the outstanding warrants as of September 23, 2018 : 2018 Notes (shares in thousands) Warrants: Underlying shares 3,500 Estimated share dilution using average quarterly stock price $172.39 per share 2,055 Exercise price $71.42 Remaining expiration date range September 24 - October 24, 2018 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments | Selected additional information regarding the Senior Notes outstanding as of September 23, 2018 , is as follows: Remaining Amortization period Fair Value of Notes (Level 2) (years) (in thousands) 2020 Notes 1.5 $ 496,460 2021 Notes 2.7 $ 787,304 2025 Notes 6.5 $ 494,860 |
Schedule of Recognized Interest Cost Relating to Both Contractual Interest Coupon and Amortization of Discount on Liability Component of Notes | The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Senior Notes, convertible notes, the term loan agreement, commercial paper, and the revolving credit facility during the three months ended September 23, 2018 , and September 24, 2017 . Three Months Ended September 23, September 24, (in thousands) Contractual interest coupon $ 17,427 $ 17,956 Amortization of interest discount 900 4,104 Amortization of issuance costs 329 485 Effect of interest rate contracts, net 753 (349 ) Total interest cost recognized $ 19,409 $ 22,196 |
COMMITMENTS AND CONTINGENCIES (
COMMITMENTS AND CONTINGENCIES (Tables) | 3 Months Ended |
Sep. 23, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Warranties | Changes in the Company’s product warranty reserves were as follows: Three Months Ended September 23, September 24, (in thousands) Balance at beginning of period $ 192,480 $ 161,981 Warranties issued during the period 69,575 48,790 Settlements made during the period (87,305 ) (44,053 ) Changes in liability for pre-existing warranties 4,856 1,619 Balance at end of period $ 179,606 $ 168,337 |
STOCK REPURCHASE PROGRAM (Table
STOCK REPURCHASE PROGRAM (Tables) | 3 Months Ended |
Sep. 23, 2018 | |
Equity [Abstract] | |
Repurchases Under the Repurchase Program | Repurchases under the repurchase program were as follows during the periods indicated: Period Total Number of Total Cost of Average Price (1) Amount (in thousands, except per share data) Available balance as of June 24, 2018 $ 1,733,638 Quarter ended September 23, 2018 7,807 $ 1,733,530 $ 183.55 $ 108 |
ACCUMULATED OTHER COMPREHENSI_2
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 3 Months Ended |
Sep. 23, 2018 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Income (Loss) | The components of accumulated other comprehensive income (loss), net of tax at the end of the period, as well as the activity during the period, were as follows: Accumulated Foreign Currency Translation Adjustment Accumulated Accumulated Accumulated Total (in thousands) Balance as of June 24, 2018 $ (32,722 ) $ (4,042 ) $ (1,190 ) $ (19,495 ) $ (57,449 ) Other comprehensive (loss) income before reclassifications (6,261 ) 7,265 (287 ) 85 802 Losses (income) reclassified from accumulated other comprehensive income (loss) to net income — 1,148 (1) (3 ) (2) — 1,145 Effects of ASU 2018-02 adoption — (399 ) — (1,828 ) (2,227 ) Net current-period other comprehensive income (loss) $ (6,261 ) $ 8,014 $ (290 ) $ (1,743 ) $ (280 ) Balance as of September 23, 2018 $ (38,983 ) $ 3,972 $ (1,480 ) $ (21,238 ) $ (57,729 ) (1) Amount of after tax gain reclassified from AOCI into net income located in revenue: $600 gain; cost of goods sold: $1,325 loss; selling, general, and administrative expenses: $398 loss; and other income and expense: $25 loss. |
RECENT ACCOUNTING PRONOUNCEME_3
RECENT ACCOUNTING PRONOUNCEMENTS - Cumulative Effect of Changes Due to Adoption of Topic 606 (Details) - USD ($) $ in Thousands | 3 Months Ended | |||||
Sep. 23, 2018 | Sep. 24, 2017 | Jun. 25, 2018 | Jun. 24, 2018 | Jun. 25, 2017 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Total assets | $ 10,957,577 | $ 12,492,433 | $ 12,479,478 | [1] | ||
Deferred profit | 542,321 | 559,391 | 720,086 | [1] | ||
Total liabilities | 5,575,940 | 5,773,035 | 5,899,435 | [1] | ||
Stockholders' equity | 5,322,825 | $ 7,271,178 | $ 6,641,206 | 6,501,851 | [1] | $ 6,817,451 |
Revenue | 2,330,691 | 2,478,140 | ||||
Cost of goods sold | 1,272,493 | $ 1,328,797 | ||||
Retained earnings | 8,767,786 | 8,261,194 | [1] | |||
As reported | ASU 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Total assets | 12,479,478 | |||||
Deferred profit | 824,737 | 720,086 | ||||
Total liabilities | 5,899,435 | |||||
Stockholders' equity | 6,501,851 | |||||
Revenue | 2,082,397 | |||||
Cost of goods sold | 1,166,858 | |||||
Retained earnings | 8,485,370 | |||||
Adjustments | ASU 2014-09 | ||||||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||||||
Total assets | 12,955 | |||||
Deferred profit | (282,416) | (160,695) | ||||
Total liabilities | (126,400) | |||||
Stockholders' equity | $ 139,355 | |||||
Revenue | 248,294 | |||||
Cost of goods sold | 105,635 | |||||
Retained earnings | $ 282,416 | |||||
[1] | Derived from audited financial statements |
RECENT ACCOUNTING PRONOUNCEME_4
RECENT ACCOUNTING PRONOUNCEMENTS - Additional Information (Details) - USD ($) $ in Thousands | Jun. 25, 2018 | Sep. 23, 2018 | Jun. 24, 2018 | [1] | |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Other assets | $ 466,842 | $ 367,979 | |||
ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | [2] | (139,355) | |||
ASU 2014-09 | Retained earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | [2] | (139,355) | |||
ASU 2016-16 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | [2] | 443 | |||
Other assets | 400 | ||||
ASU 2016-16 | Retained earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | [2] | 443 | |||
ASU 2018-02 | Retained earnings | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | (2,200) | ||||
ASU 2018-02 | Other comprehensive income | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative-effect adjustment to retained earnings | $ 2,200 | ||||
Adjustments | ASU 2014-09 | |||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||||
Cumulative effect adjustment, net of tax adjustment | $ 139,400 | ||||
Cumulative effect on retained earnings, tax | $ 21,000 | ||||
[1] | Derived from audited financial statements | ||||
[2] | Refer to Note 2 - Recent Accounting Pronouncements for more information regarding these FASB Accounting Standard Updates. |
REVENUE - Additional Informatio
REVENUE - Additional Information (Details) $ in Millions | 3 Months Ended |
Sep. 23, 2018USD ($)regionsegmentmarket | |
Revenue from Contract with Customer [Abstract] | |
Invoice payment description | The Company generally invoices customers at shipment and for professional services either as provided or upon meeting certain milestones. Customer invoices are generally due within?30?to?90 days after issuance. The Company?s contracts with customers typically do not include significant financing components as the period between the transfer of performance obligations and timing of payment are generally within one year. |
Revenue recognized | $ | $ 261 |
Number reportable business segment | segment | 1 |
Number of operating geographic regions | region | 7 |
Number of primary markets | market | 3 |
REVENUE - Summary of Contract T
REVENUE - Summary of Contract Transaction Price not yet Recognized as Revenue (Details) $ in Thousands | 3 Months Ended |
Sep. 23, 2018USD ($) | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 626,315 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2018-09-24 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 555,351 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of satisfaction | 2 years |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-07-01 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 70,964 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-06-28 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 0 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2022-06-29 | |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of satisfaction |
REVENUE - Revenues Disaggregate
REVENUE - Revenues Disaggregated by Geographic Region and Primary Markets (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 2,330,691 | $ 2,478,140 |
Systems revenue | Memory | ||
Disaggregation of Revenue [Line Items] | ||
Primary market revenue, percent | 77.00% | |
Systems revenue | Foundry | ||
Disaggregation of Revenue [Line Items] | ||
Primary market revenue, percent | 17.00% | |
Systems revenue | Logic/integrated device manufacturing | ||
Disaggregation of Revenue [Line Items] | ||
Primary market revenue, percent | 6.00% | |
Japan | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 670,040 | 494,423 |
China | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 593,831 | 337,589 |
Korea | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 379,771 | 941,020 |
Taiwan | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 280,050 | 338,730 |
Southeast Asia | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 198,135 | 119,762 |
United States | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | 120,105 | 157,224 |
Europe | ||
Disaggregation of Revenue [Line Items] | ||
Revenue | $ 88,759 | $ 89,392 |
EQUITY-BASED COMPENSATION PLA_3
EQUITY-BASED COMPENSATION PLANS - Additional Information (Details) | 3 Months Ended |
Sep. 23, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Vesting period (years) | 3 years |
EQUITY-BASED COMPENSATION PLA_4
EQUITY-BASED COMPENSATION PLANS - Recognized Equity Based Compensation Expenses and Related Income Tax Benefit (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | ||
Equity-based compensation expense | $ 50,343 | $ 41,783 |
Income tax benefit recognized related to equity-based compensation expense | $ 8,104 | $ 13,387 |
OTHER EXPENSE, NET (Details)
OTHER EXPENSE, NET (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | |
Other Income and Expenses [Abstract] | ||
Interest income | $ 18,933 | $ 20,209 |
Interest expense | (21,788) | (23,905) |
Gains on deferred compensation plan related assets, net | 5,213 | 3,453 |
Loss on extinguishment of debt | 83 | 0 |
Foreign exchange gains (losses), net | 51 | (3,000) |
Other, net | (2,869) | (2,259) |
Other expense, net | $ (377) | $ (5,502) |
INCOME TAX EXPENSE (Details)
INCOME TAX EXPENSE (Details) - USD ($) $ in Thousands | 3 Months Ended | 15 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | Sep. 23, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense | $ 58,014 | $ 97,030 | |
Effective income tax rate | 9.80% | ||
Provisional amount for transition tax | $ 36,500 | $ 919,500 | |
Release of previously accrued deferred taxes | 48,000 | ||
Tax examinations or lapses of statute of limitation | |||
Income Tax Contingency [Line Items] | |||
Estimated unrecognized tax benefits reduction | $ 31,000 | $ 31,000 |
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 | 3 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | |
Numerator: | ||
Net income | $ 533,360 | $ 590,690 |
Denominator: | ||
Basic average shares outstanding (shares) | 155,658 | 162,141 |
Effect of potential dilutive securities: | ||
Employee stock plans (shares) | 1,539 | 2,514 |
Convertible notes (shares) | 6,075 | 15,151 |
Warrants (shares) | 2,055 | 4,074 |
Diluted average shares outstanding (shares) | 165,327 | 183,880 |
Net income per share - basic (usd per share) | $ 3.43 | $ 3.64 |
Net income per share - diluted (usd per share) | $ 3.23 | $ 3.21 |
NET INCOME PER SHARE - Schedu_2
NET INCOME PER SHARE - Schedule of Potentially Dilutive Securities Excluded from EPS Calculations (Details) - shares shares in Thousands | 3 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | |
Options and RSUs | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Number of potentially dilutive securities (shares) | 87 | 7 |
FINANCIAL INSTRUMENTS - Cash, C
FINANCIAL INSTRUMENTS - Cash, Cash Equivalents, Investments, Restricted Cash and Investments and Other Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Sep. 23, 2018 | Jun. 24, 2018 | Sep. 24, 2017 | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, Cost | $ 3,223,663 | |||
Total Cost | 3,946,605 | $ 5,276,170 | ||
Total, Unrealized Gain | 2,469 | 648 | ||
Total Unrealized (Loss) | (2,088) | (1,980) | ||
Total Fair Value | 3,946,986 | 5,274,838 | ||
Cash and Cash Equivalents | 2,568,085 | 4,512,257 | [1] | $ 2,406,462 |
Investments | 1,050,863 | 437,338 | [1] | |
Restricted cash and investments | 255,924 | 256,301 | [1] | |
Other Assets | 72,114 | 68,942 | ||
Fair Value Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Total Cost | 1,620,691 | 2,767,054 | ||
Total, Unrealized Gain | 2,391 | 516 | ||
Total Unrealized (Loss) | (294) | (312) | ||
Total Fair Value | 1,622,788 | 2,767,258 | ||
Cash and Cash Equivalents | 1,124,612 | 2,675,528 | ||
Investments | 426,062 | 22,788 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 72,114 | 68,942 | ||
Fair Value Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Total Cost | 692,363 | 801,086 | ||
Total, Unrealized Gain | 78 | 132 | ||
Total Unrealized (Loss) | (1,794) | (1,668) | ||
Total Fair Value | 690,647 | 799,550 | ||
Cash and Cash Equivalents | 65,846 | 385,000 | ||
Investments | 624,801 | 414,550 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Cash | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Time deposit | 653,135 | 708,364 | ||
Cash and Cash Equivalents | 647,238 | 702,090 | ||
Investments | 0 | 0 | ||
Restricted cash and investments | 5,897 | 6,274 | ||
Other Assets | 0 | 0 | ||
Time deposit | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and Time deposit | 980,416 | 999,666 | ||
Cash and Cash Equivalents | 730,389 | 749,639 | ||
Investments | 0 | 0 | ||
Restricted cash and investments | 250,027 | 250,027 | ||
Other Assets | 0 | 0 | ||
Money market funds | Fair Value Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, Cost | 1,091,683 | 2,341,807 | ||
Debt securities, Unrealized Gain | 0 | 0 | ||
Debt securities, Unrealized (Loss) | 0 | 0 | ||
Debt securities, Fair Value | 1,091,683 | 2,341,807 | ||
Cash and Cash Equivalents | 1,091,683 | 2,341,807 | ||
Investments | 0 | 0 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
U.S. Treasury and agencies | Fair Value Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, Cost | 459,201 | 356,679 | ||
Debt securities, Unrealized Gain | 1 | 0 | ||
Debt securities, Unrealized (Loss) | (211) | (170) | ||
Debt securities, Fair Value | 458,991 | 356,509 | ||
Cash and Cash Equivalents | 32,929 | 333,721 | ||
Investments | 426,062 | 22,788 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Mutual funds | Fair Value Level 1 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Trading securities, Cost | 69,807 | 68,568 | ||
Trading securities, Unrealized Gain | 2,390 | 516 | ||
Trading securities, Unrealized (Loss) | (83) | (142) | ||
Trading securities, Fair Value | 72,114 | 68,942 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Investments | 0 | 0 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 72,114 | 68,942 | ||
Municipal notes and bonds | Fair Value Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, Cost | 152,337 | 152,378 | ||
Debt securities, Unrealized Gain | 2 | 37 | ||
Debt securities, Unrealized (Loss) | (581) | (279) | ||
Debt securities, Fair Value | 151,758 | 152,136 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Investments | 151,758 | 152,136 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Government-sponsored enterprises | Fair Value Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, Cost | 11,022 | 110,963 | ||
Debt securities, Unrealized Gain | 0 | 0 | ||
Debt securities, Unrealized (Loss) | (204) | (201) | ||
Debt securities, Fair Value | 10,818 | 110,762 | ||
Cash and Cash Equivalents | 0 | 99,934 | ||
Investments | 10,818 | 10,828 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Foreign government bonds | Fair Value Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, Cost | 31,052 | 19,986 | ||
Debt securities, Unrealized Gain | 0 | 0 | ||
Debt securities, Unrealized (Loss) | (8) | (1) | ||
Debt securities, Fair Value | 31,044 | 19,985 | ||
Cash and Cash Equivalents | 0 | 19,985 | ||
Investments | 31,044 | 0 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Corporate notes and bonds | Fair Value Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, Cost | 497,206 | 516,955 | ||
Debt securities, Unrealized Gain | 76 | 95 | ||
Debt securities, Unrealized (Loss) | (999) | (1,184) | ||
Debt securities, Fair Value | 496,283 | 515,866 | ||
Cash and Cash Equivalents | 65,846 | 265,081 | ||
Investments | 430,437 | 250,785 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | 0 | 0 | ||
Mortgage backed securities — residential | Fair Value Level 2 | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Debt securities, Cost | 746 | 804 | ||
Debt securities, Unrealized Gain | 0 | 0 | ||
Debt securities, Unrealized (Loss) | (2) | (3) | ||
Debt securities, Fair Value | 744 | 801 | ||
Cash and Cash Equivalents | 0 | 0 | ||
Investments | 744 | 801 | ||
Restricted cash and investments | 0 | 0 | ||
Other Assets | $ 0 | $ 0 | ||
[1] | Derived from audited financial statements |
FINANCIAL INSTRUMENTS - Additio
FINANCIAL INSTRUMENTS - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Sep. 23, 2018 | Sep. 24, 2017 | Jun. 24, 2018 | |
Fair Value Disclosures [Abstract] | |||
Other than temporary impairment included in net realized gains (losses) | $ 0 | $ 0 | |
Foreign exchange and interest rate contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign exchange contracts amount of offset, assets | 6,200,000 | ||
Foreign exchange contracts amount of offset, liabilities | 4,100,000 | $ 5,600,000 | |
Net derivative asset from master netting agreements | 5,200,000 | ||
Net derivative liability from master netting agreements | $ 31,000,000 | ||
Foreign exchange contracts | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign exchange contracts amount of offset, assets | 5,600,000 | ||
Net derivative asset from master netting agreements | 2,100,000 | ||
Net derivative liability from master netting agreements | $ 34,400,000 | ||
Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency cash flow hedge, expiration period | 12 months | ||
Gain reclassification from AOCI to income, in the next 12 months | $ 6,200,000 | ||
Losses accumulated in other comprehensive income expected to reclassify from other comprehensive income into earnings | $ 2,200,000 | ||
Gains (losses) accumulated in other comprehensive income expected to reclassify from other comprehensive income into earnings, estimate of time to transfer | 6 years 6 months | ||
Minimum | Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency cash flow hedge, expiration period | 12 months | ||
Maximum | Cash Flow Hedges | |||
Derivative Instruments, Gain (Loss) [Line Items] | |||
Foreign currency cash flow hedge, expiration period | 24 months |
FINANCIAL INSTRUMENTS - Schedul
FINANCIAL INSTRUMENTS - Schedule of Cash, Cash Equivalents, Investments and Restricted Cash and Investments Unrealized Loss Positions (Details) $ in Thousands | Sep. 23, 2018USD ($) |
Fair Value | |
Unrealized Losses Less than 12 Months | $ 874,196 |
Unrealized Losses 12 Months or Greater | 46,676 |
Total | 920,872 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months | 1,470 |
Unrealized Losses 12 Months or Greater | 618 |
Total | 2,088 |
U.S. Treasury and agencies | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 421,723 |
Unrealized Losses 12 Months or Greater, available for sale | 5,880 |
Total, available for sale | 427,603 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (92) |
Unrealized Losses 12 Months or Greater, available for sale | (119) |
Total, available for sale | (211) |
Municipal notes and bonds | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 141,051 |
Unrealized Losses 12 Months or Greater, available for sale | 5,725 |
Total, available for sale | 146,776 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (534) |
Unrealized Losses 12 Months or Greater, available for sale | (47) |
Total, available for sale | (581) |
Mutual funds | |
Fair Value | |
Unrealized Losses Less than 12 Months, trading | 17,592 |
Unrealized Losses 12 Months or Greater, trading | 0 |
Total, trading | 17,592 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, trading | 83 |
Unrealized Losses 12 Months or Greater, trading | 0 |
Total, trading | 83 |
Government-sponsored enterprises | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 0 |
Unrealized Losses 12 Months or Greater, available for sale | 10,785 |
Total, available for sale | 10,785 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | 0 |
Unrealized Losses 12 Months or Greater, available for sale | (204) |
Total, available for sale | (204) |
Foreign government bonds | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 26,928 |
Unrealized Losses 12 Months or Greater, available for sale | 0 |
Total, available for sale | 26,928 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (8) |
Unrealized Losses 12 Months or Greater, available for sale | 0 |
Total, available for sale | (8) |
Corporate notes and bonds | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 266,159 |
Unrealized Losses 12 Months or Greater, available for sale | 24,286 |
Total, available for sale | 290,445 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (751) |
Unrealized Losses 12 Months or Greater, available for sale | (248) |
Total, available for sale | (999) |
Mortgage backed securities — residential | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 743 |
Unrealized Losses 12 Months or Greater, available for sale | 0 |
Total, available for sale | 743 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (2) |
Unrealized Losses 12 Months or Greater, available for sale | 0 |
Total, available for sale | $ (2) |
FINANCIAL INSTRUMENTS - Sched_2
FINANCIAL INSTRUMENTS - Schedule of Amortized Cost and Fair Value of Cash Equivalents, Investments, and Restricted Cash and Investments with Contractual Maturities (Details) $ in Thousands | Sep. 23, 2018USD ($) |
Cost | |
Due in one year or less | $ 3,018,982 |
Due after one year through five years | 200,903 |
Due in more than five years | 3,778 |
Debt securities, Cost | 3,223,663 |
Estimated Fair Value | |
Due in one year or less | 3,018,518 |
Due after one year through five years | 199,465 |
Due in more than five years | 3,754 |
Total | $ 3,221,737 |
FINANCIAL INSTRUMENTS - Sched_3
FINANCIAL INSTRUMENTS - Schedule of Outstanding Foreign Currency Forward Contracts (Details) - Foreign exchange contracts $ in Thousands | Sep. 23, 2018USD ($) |
Foreign currency forward contracts | Buy Contracts | Derivatives Designated as Hedging Instruments | |
Derivative [Line Items] | |
Derivative notional amount | $ 97,684 |
Foreign currency forward contracts | Buy Contracts | Derivatives Designated as Hedging Instruments | Japanese yen | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Buy Contracts | Derivatives Designated as Hedging Instruments | Euro | |
Derivative [Line Items] | |
Derivative notional amount | 73,297 |
Foreign currency forward contracts | Buy Contracts | Derivatives Designated as Hedging Instruments | Korean won | |
Derivative [Line Items] | |
Derivative notional amount | 24,387 |
Foreign currency forward contracts | Buy Contracts | Derivatives Designated as Hedging Instruments | British pound sterling | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Buy Contracts | Derivatives Designated as Hedging Instruments | Taiwan dollar | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Buy Contracts | Derivatives Designated as Hedging Instruments | Singapore dollar | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Buy Contracts | Derivatives Designated as Hedging Instruments | Swiss franc | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Buy Contracts | Derivatives Designated as Hedging Instruments | Indian rupee | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Buy Contracts | Derivatives Not Designated as Hedging Instruments | |
Derivative [Line Items] | |
Derivative notional amount | 137,186 |
Foreign currency forward contracts | Buy Contracts | Derivatives Not Designated as Hedging Instruments | Japanese yen | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Buy Contracts | Derivatives Not Designated as Hedging Instruments | Euro | |
Derivative [Line Items] | |
Derivative notional amount | 33,956 |
Foreign currency forward contracts | Buy Contracts | Derivatives Not Designated as Hedging Instruments | Korean won | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Buy Contracts | Derivatives Not Designated as Hedging Instruments | British pound sterling | |
Derivative [Line Items] | |
Derivative notional amount | 32,923 |
Foreign currency forward contracts | Buy Contracts | Derivatives Not Designated as Hedging Instruments | Taiwan dollar | |
Derivative [Line Items] | |
Derivative notional amount | 26,044 |
Foreign currency forward contracts | Buy Contracts | Derivatives Not Designated as Hedging Instruments | Singapore dollar | |
Derivative [Line Items] | |
Derivative notional amount | 21,915 |
Foreign currency forward contracts | Buy Contracts | Derivatives Not Designated as Hedging Instruments | Swiss franc | |
Derivative [Line Items] | |
Derivative notional amount | 19,059 |
Foreign currency forward contracts | Buy Contracts | Derivatives Not Designated as Hedging Instruments | Indian rupee | |
Derivative [Line Items] | |
Derivative notional amount | 3,289 |
Foreign currency forward contracts | Sell Contracts | Derivatives Designated as Hedging Instruments | |
Derivative [Line Items] | |
Derivative notional amount | 438,871 |
Foreign currency forward contracts | Sell Contracts | Derivatives Designated as Hedging Instruments | Japanese yen | |
Derivative [Line Items] | |
Derivative notional amount | 438,871 |
Foreign currency forward contracts | Sell Contracts | Derivatives Designated as Hedging Instruments | Euro | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Sell Contracts | Derivatives Designated as Hedging Instruments | Korean won | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Sell Contracts | Derivatives Designated as Hedging Instruments | British pound sterling | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Sell Contracts | Derivatives Designated as Hedging Instruments | Taiwan dollar | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Sell Contracts | Derivatives Designated as Hedging Instruments | Singapore dollar | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Sell Contracts | Derivatives Designated as Hedging Instruments | Swiss franc | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Sell Contracts | Derivatives Designated as Hedging Instruments | Indian rupee | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Sell Contracts | Derivatives Not Designated as Hedging Instruments | |
Derivative [Line Items] | |
Derivative notional amount | 414,011 |
Foreign currency forward contracts | Sell Contracts | Derivatives Not Designated as Hedging Instruments | Japanese yen | |
Derivative [Line Items] | |
Derivative notional amount | 244,735 |
Foreign currency forward contracts | Sell Contracts | Derivatives Not Designated as Hedging Instruments | Euro | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Sell Contracts | Derivatives Not Designated as Hedging Instruments | Korean won | |
Derivative [Line Items] | |
Derivative notional amount | 169,276 |
Foreign currency forward contracts | Sell Contracts | Derivatives Not Designated as Hedging Instruments | British pound sterling | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Sell Contracts | Derivatives Not Designated as Hedging Instruments | Taiwan dollar | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Sell Contracts | Derivatives Not Designated as Hedging Instruments | Singapore dollar | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Sell Contracts | Derivatives Not Designated as Hedging Instruments | Swiss franc | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency forward contracts | Sell Contracts | Derivatives Not Designated as Hedging Instruments | Indian rupee | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency option contracts | Buy Contracts | Derivatives Designated as Hedging Instruments | Japanese yen | |
Derivative [Line Items] | |
Derivative notional amount | 53,765 |
Foreign currency option contracts | Buy Contracts | Derivatives Not Designated as Hedging Instruments | Japanese yen | |
Derivative [Line Items] | |
Derivative notional amount | 0 |
Foreign currency option contracts | Sell Contracts | Derivatives Designated as Hedging Instruments | Japanese yen | |
Derivative [Line Items] | |
Derivative notional amount | 56,236 |
Foreign currency option contracts | Sell Contracts | Derivatives Not Designated as Hedging Instruments | Japanese yen | |
Derivative [Line Items] | |
Derivative notional amount | $ 0 |
FINANCIAL INSTRUMENTS - Sched_4
FINANCIAL INSTRUMENTS - Schedule of Fair Value of Derivative Instruments (Details) - Fair Value of Derivative Instruments (Level 2) - USD ($) $ in Thousands | Sep. 23, 2018 | Jun. 24, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | $ 11,435 | $ 7,692 |
Derivative Liabilities | 37,245 | 40,086 |
Derivatives designated as hedging instruments | Prepaid expense and other assets | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | 11,330 | 7,581 |
Derivatives designated as hedging instruments | Accrued expenses and other current liabilities | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities | 3,724 | 8,866 |
Derivatives designated as hedging instruments | Accrued expenses and other current liabilities | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities | 4,349 | 7,468 |
Derivatives designated as hedging instruments | Other long-term liabilities | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities | 29,126 | 23,720 |
Derivatives Not Designated as Hedging Instruments | Prepaid expense and other assets | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Assets | 105 | 111 |
Derivatives Not Designated as Hedging Instruments | Accrued expenses and other current liabilities | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative Liabilities | $ 46 | $ 32 |
FINANCIAL INSTRUMENTS - Sched_5
FINANCIAL INSTRUMENTS - Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations Including Accumulated Other Comprehensive Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) Recognized in AOCI (Effective Portion) | $ 3,790 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (2,299) | |
Gain (Loss) Recognized In Income (Excluded from Effectiveness) | 2,205 | |
Revenue | $ 2,330,691 | 2,478,140 |
Cost of goods sold | 1,272,493 | 1,328,797 |
Selling, general, and administrative | 174,775 | 181,043 |
Other expense, net | (377) | (5,502) |
Foreign Exchange Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) Recognized in AOCI (Effective Portion) | 8,113 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (1,443) | |
Foreign Exchange Contracts | Revenue | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) Recognized in AOCI (Effective Portion) | 8,441 | (9) |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 674 | (3,806) |
Gain (Loss) Recognized In Income (Excluded from Effectiveness) | 2,547 | |
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) | 674 | |
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) | (124) | 2,443 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (1,557) | 824 |
Gain (Loss) Recognized In Income (Excluded from Effectiveness) | (208) | |
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) | (1,557) | |
Foreign Exchange Contracts | Selling, general, and administrative | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain (Loss) Recognized in AOCI (Effective Portion) | (204) | 1,356 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | (527) | 714 |
Gain (Loss) Recognized In Income (Excluded from Effectiveness) | (117) | |
Foreign Exchange Contracts | Selling, general, and administrative | 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) | (527) | |
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 | |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 0 | |
Gain (Loss) Recognized In Income (Excluded from Effectiveness) | (17) | |
Foreign Exchange Contracts | Other expense, net | 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 | |
Foreign Exchange Contracts | Other income | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Derivative instruments not designated as cash flow hedges | 10,588 | 2,672 |
Interest Rate Contracts | Revenue | Fair value hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | 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 or (loss) on fair value hedging relationships in Subtopic 815-20 | 0 | |
Interest Rate 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) | 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 or (loss) on fair value hedging relationships in Subtopic 815-20 | 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 or (loss) on fair value hedging relationships in Subtopic 815-20 | 0 | |
Interest Rate 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) | 0 | |
Interest Rate Contracts | Selling, general, and administrative | Fair value hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | 0 | |
Interest Rate Contracts | Selling, general, and administrative | Fair value hedging | Derivatives designated as hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | 0 | |
Interest Rate Contracts | Selling, general, and administrative | 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 | |
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) | (33) | (31) |
Gain (Loss) Recognized In Income (Excluded from Effectiveness) | $ 0 | |
Interest Rate Contracts | Other expense, net | Fair value hedging | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | 2,286 | |
Interest Rate Contracts | Other expense, net | Fair value hedging | Derivatives designated as hedging instruments | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain or (loss) on fair value hedging relationships in Subtopic 815-20 | (2,286) | |
Interest Rate Contracts | Other expense, net | 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) | $ (33) |
INVENTORIES (Details)
INVENTORIES (Details) - USD ($) $ in Thousands | Sep. 23, 2018 | Jun. 24, 2018 | |
Inventory Disclosure [Abstract] | |||
Raw materials | $ 994,676 | $ 916,438 | |
Work-in-process | 187,352 | 222,921 | |
Finished goods | 692,166 | 736,803 | |
Total inventories | $ 1,874,194 | $ 1,876,162 | [1] |
[1] | Derived from audited financial statements |
GOODWILL AND INTANGIBLE ASSET_2
GOODWILL AND INTANGIBLE ASSETS - Additional Information (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 23, 2018 | Sep. 24, 2017 | Jun. 24, 2018 | [1] | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill | $ 1,484,873 | $ 1,484,904 | ||
Tax deductible goodwill | 61,100 | |||
Intangible asset amortization expense | $ 36,400 | $ 39,300 | ||
[1] | Derived from audited financial statements |
GOODWILL AND INTANGIBLE ASSET_3
GOODWILL AND INTANGIBLE ASSETS - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 23, 2018 | Jun. 24, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 1,400,738 | $ 1,399,507 |
Accumulated Amortization | (1,118,049) | (1,081,671) |
Net | 282,689 | 317,836 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 630,214 | 630,220 |
Accumulated Amortization | (445,789) | (433,309) |
Net | 184,425 | 196,911 |
Existing technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 669,507 | 669,520 |
Accumulated Amortization | (599,452) | (576,844) |
Net | 70,055 | 92,676 |
Patents and other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 101,017 | 99,767 |
Accumulated Amortization | (72,808) | (71,518) |
Net | $ 28,209 | $ 28,249 |
GOODWILL AND INTANGIBLE ASSET_4
GOODWILL AND INTANGIBLE ASSETS - Estimated Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Thousands | Sep. 23, 2018 | Jun. 24, 2018 |
Fiscal Year | ||
2019 (remaining 9 months) | $ 89,651 | |
2,020 | 60,925 | |
2,021 | 58,241 | |
2,022 | 54,680 | |
2,023 | 11,146 | |
Thereafter | 8,046 | |
Net | $ 282,689 | $ 317,836 |
ACCRUED EXPENSES AND OTHER CU_3
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Details) - USD ($) $ in Thousands | Sep. 23, 2018 | Jun. 24, 2018 | |
Payables and Accruals [Abstract] | |||
Accrued compensation | $ 516,644 | $ 506,471 | |
Warranty reserves | 179,606 | 192,480 | |
Income and other taxes payable | 253,308 | 185,384 | |
Dividend payable | 167,907 | 174,372 | |
Other | 230,407 | 250,502 | |
Accrued expenses and other current liabilities | $ 1,347,872 | $ 1,309,209 | [1] |
[1] | Derived from audited financial statements |
LONG-TERM DEBT AND OTHER BORR_3
LONG-TERM DEBT AND OTHER BORROWINGS - Schedule of Outstanding Debt (Details) $ in Thousands | 3 Months Ended | ||||
Sep. 23, 2018USD ($)d | Jun. 24, 2018USD ($) | Jun. 07, 2016 | Mar. 12, 2015 | Jun. 30, 2012 | |
Debt Instrument [Line Items] | |||||
Total debt outstanding, at par | $ 2,407,510 | $ 2,486,953 | |||
Unamortized discount | (65,388) | (85,196) | |||
Fair value adjustment - interest rate contracts | (33,475) | (31,189) | |||
Unamortized bond issuance costs | (1,688) | (1,820) | |||
Total debt outstanding, at carrying value | 2,306,959 | 2,368,748 | |||
Current portion of long-term debt, and commercial paper | 548,400 | 608,532 | |||
Long-term debt | $ 1,758,559 | $ 1,760,216 | |||
Commercial paper | |||||
Debt Instrument [Line Items] | |||||
Effective Interest Rate | 2.30% | 2.33% | |||
Commercial paper | $ 360,000 | $ 360,000 | |||
Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (2041 Notes) | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 2.625% | ||||
Senior notes | Fixed-rate 2.75% Senior Notes Due March 15, 2020 (2020 Notes) | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 2.75% | 2.75% | |||
Effective Interest Rate | 2.88% | 2.88% | |||
Amount | $ 500,000 | $ 500,000 | |||
Senior notes | Fixed-rate 2.80% Senior Notes Due June 15, 2021 (2021 Notes) | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 2.80% | 2.80% | |||
Effective Interest Rate | 2.95% | 2.95% | |||
Amount | $ 800,000 | $ 800,000 | |||
Senior notes | Fixed-rate 3.80% Senior Notes Due March 15, 2025 (2025 Notes) | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 3.80% | 3.80% | |||
Effective Interest Rate | 3.87% | 3.87% | |||
Amount | $ 500,000 | $ 500,000 | |||
Convertible debt | Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (2041 Notes) | |||||
Debt Instrument [Line Items] | |||||
Senior notes interest rate | 2.625% | ||||
Effective Interest Rate | 4.28% | 4.28% | |||
Amount | $ 247,510 | $ 326,953 | |||
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 period required | d | 30 |
LONG-TERM DEBT AND OTHER BORR_4
LONG-TERM DEBT AND OTHER BORROWINGS - Convertible Senior Notes (Details) - Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (2041 Notes) | 1 Months Ended | 3 Months Ended |
Jun. 30, 2012USD ($) | Sep. 23, 2018USD ($)d | |
Debt Instrument [Line Items] | ||
Principal amount | $ | $ 700,000,000 | |
Senior notes interest rate | 2.625% | |
Notice of conversion | $ | $ 6,000,000 | |
Convertible debt | ||
Debt Instrument [Line Items] | ||
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 | 20 | |
Senior notes interest rate | 2.625% | |
Stock price percentage of conversion price | 130.00% | |
Conversion of notes | $ | $ 79,400,000 | |
Number of consecutive trading days period required | 30 | |
Convertible debt | Redeemable | ||
Debt Instrument [Line Items] | ||
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 | 20 | |
Stock price percentage of conversion price | 150.00% | |
Number of consecutive trading days period required | 30 | |
Maximum | ||
Debt Instrument [Line Items] | ||
Maximum amount of contingent interest rate | 0.60% |
LONG-TERM DEBT AND OTHER BORR_5
LONG-TERM DEBT AND OTHER BORROWINGS - Components of Convertible Senior Notes (Details) - 2041 Notes $ / shares in Units, shares in Thousands | 3 Months Ended | 12 Months Ended |
Sep. 23, 2018USD ($)$ / sharesshares | Jun. 24, 2018USD ($) | |
Debt Instrument [Line Items] | ||
Remaining amortization period (years) | 22 years 7 months 6 days | 22 years 10 months 24 days |
Fair Value of Notes (Level 2) | $ 1,161,772,000 | |
Conversion rate (shares of common stock per $1,000 principal amount of notes) | 0.0303454 | |
Principal amount of convertible debt conversion increments | $ 1,000 | |
Conversion price (per share of common stock) (usd per share) | $ / shares | $ 32.95 | |
If-converted value in excess of par value | $ 921,771,000 | |
Estimated share dilution using average quarterly stock price $172.39 per share | shares | 6,075 | |
Average quarterly stock price (usd per share) | $ / shares | $ 172.39 | |
Permanent Equity | ||
Debt Instrument [Line Items] | ||
Carrying amount of equity component, net of tax | $ 159,523,000 | $ 159,120,000 |
Temporary Equity | ||
Debt Instrument [Line Items] | ||
Carrying amount of equity component, net of tax | $ 58,812,000 | $ 78,192,000 |
LONG-TERM DEBT AND OTHER BORR_6
LONG-TERM DEBT AND OTHER BORROWINGS - Convertible Warrants (Details) - $ / shares shares in Thousands | 3 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | |
Class of Warrant or Right [Line Items] | ||
Estimated share dilution using average quarterly stock price $172.39 per share (shares) | 2,055 | 4,074 |
2018 Notes | Warrants | ||
Class of Warrant or Right [Line Items] | ||
Underlying shares | 3,500 | |
Estimated share dilution using average quarterly stock price $172.39 per share (shares) | 2,055 | |
Average quarterly stock price (usd per share) | $ 172.39 | |
Exercise price (usd per share) | $ 71.42 | |
Convertible debt | 2018 Notes | ||
Class of Warrant or Right [Line Items] | ||
Warrants exercised | 4,100 | |
Shares issued during conversion of warrants | 2,300 |
LONG-TERM DEBT AND OTHER BORR_7
LONG-TERM DEBT AND OTHER BORROWINGS - Senior Notes (Details) - Senior notes - USD ($) | Mar. 12, 2015 | Sep. 23, 2018 | Jun. 07, 2016 |
Debt Instrument [Line Items] | |||
Debt instrument, redemption price percent | 100.00% | ||
2020 Notes | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 500,000,000 | ||
Senior notes interest rate | 2.75% | 2.75% | |
2025 Notes | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 500,000,000 | ||
Senior notes interest rate | 3.80% | 3.80% | |
Debt instrument, redemption price upon occurrence of certain events, percent | 101.00% | ||
2021 Notes | |||
Debt Instrument [Line Items] | |||
Principal amount | $ 800,000,000 | ||
Senior notes interest rate | 2.80% | 2.80% | |
Debt instrument, redemption price percent | 100.00% | ||
Debt instrument, redemption price upon occurrence of certain events, percent | 101.00% |
LONG-TERM DEBT AND OTHER BORR_8
LONG-TERM DEBT AND OTHER BORROWINGS - Schedule of Additional Senior Notes Information (Details) $ in Thousands | 3 Months Ended |
Sep. 23, 2018USD ($) | |
2020 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (years) | 1 year 6 months |
2020 Notes | Fair Value Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 496,460 |
2021 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (years) | 2 years 8 months 12 days |
2021 Notes | Fair Value Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 787,304 |
2025 Notes | |
Debt Instrument [Line Items] | |
Remaining amortization period (years) | 6 years 6 months |
2025 Notes | Fair Value Level 2 | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 494,860 |
LONG-TERM DEBT AND OTHER BORR_9
LONG-TERM DEBT AND OTHER BORROWINGS - Commercial Paper Program (Details) - USD ($) | 3 Months Ended | ||
Sep. 23, 2018 | Jun. 24, 2018 | Nov. 13, 2017 | |
Commercial paper | |||
Line of Credit Facility [Line Items] | |||
Unsecured private placement commercial paper notes, maximum aggregate principal | $ 1,250,000,000 | ||
Weighted average interest rate | 2.30% | ||
Maturity | 90 days | ||
Commercial paper | |||
Line of Credit Facility [Line Items] | |||
Borrowings outstanding | $ 360,000,000 | $ 360,000,000 |
LONG-TERM DEBT AND OTHER BOR_10
LONG-TERM DEBT AND OTHER BORROWINGS - Revolving Credit Facility (Details) - Revolving credit facility - USD ($) | Oct. 13, 2017 | Sep. 23, 2018 | Oct. 12, 2017 |
Extinguishment of Debt [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, available expansion | $ 1,850,000,000 | ||
Borrowings outstanding | $ 0 | ||
Federal Funds Rate | |||
Extinguishment of Debt [Line Items] | |||
Variable interest spread | 0.50% | ||
One-month LIBOR | |||
Extinguishment of Debt [Line Items] | |||
Variable interest spread | 1.00% | ||
One-month LIBOR | Minimum | |||
Extinguishment of Debt [Line Items] | |||
Variable interest spread | 0.00% | ||
One-month LIBOR | Maximum | |||
Extinguishment of Debt [Line Items] | |||
Variable interest spread | 0.50% | ||
LIBOR | Minimum | |||
Extinguishment of Debt [Line Items] | |||
Variable interest spread | 0.90% | ||
LIBOR | Maximum | |||
Extinguishment of Debt [Line Items] | |||
Variable interest spread | 1.50% |
LONG-TERM DEBT AND OTHER BOR_11
LONG-TERM DEBT AND OTHER BORROWINGS - Schedule of Recognized Interest Cost Relating to Both Contractual Interest Coupon and Amortization of Discount on Liability Component of Notes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | |
Debt Disclosure [Abstract] | ||
Contractual interest coupon | $ 17,427 | $ 17,956 |
Amortization of interest discount | 900 | 4,104 |
Amortization of issuance costs | 329 | 485 |
Effect of interest rate contracts, net | 753 | (349) |
Total interest cost recognized | $ 19,409 | $ 22,196 |
COMMITMENTS AND CONTINGENCIES -
COMMITMENTS AND CONTINGENCIES - Additional Information (Details) - USD ($) | 3 Months Ended | ||
Sep. 23, 2018 | Jun. 24, 2018 | [1] | |
Loss Contingencies [Line Items] | |||
Restricted cash and investments | $ 255,924,000 | $ 256,301,000 | |
Letters of Credit | |||
Loss Contingencies [Line Items] | |||
Guarantee obligation maximum exposure | 26,100,000 | ||
Operating Leases | |||
Loss Contingencies [Line Items] | |||
Operating lease residual value of guarantee, maximum | $ 220,400,000 | ||
Maximum percentage of aggregate investment value guaranteed | 100.00% | ||
Guarantee obligation maximum exposure | $ 250,000,000 | ||
Operating Lease Cash Collateral | |||
Loss Contingencies [Line Items] | |||
Restricted cash and investments | $ 250,000,000 | ||
[1] | Derived from audited financial statements |
COMMITMENTS AND CONTINGENCIES_2
COMMITMENTS AND CONTINGENCIES - Schedule of Changes in Product Warranty Reserves (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | |
Changes in Product Warranty Reserve | ||
Balance at beginning of period | $ 192,480 | $ 161,981 |
Warranties issued during the period | 69,575 | 48,790 |
Settlements made during the period | (87,305) | (44,053) |
Changes in liability for pre-existing warranties | 4,856 | 1,619 |
Balance at end of period | $ 179,606 | $ 168,337 |
STOCK REPURCHASE PROGRAM - Addi
STOCK REPURCHASE PROGRAM - Additional Information (Details) | Aug. 15, 2018USD ($)financial_institutionagreementshares | Mar. 31, 2018USD ($) | Sep. 23, 2018USD ($)shares |
Equity, Class of Treasury Stock [Line Items] | |||
Net shares of settlements to cover tax withholding obligations (shares) | shares | 14,000 | ||
Amount paid for shares under net share settlements | $ 2,400,000 | ||
Stock repurchase program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Board authorized increase | $ 2,000,000,000 | ||
Authorized repurchase of Company common stock (up to) | $ 4,000,000,000 | ||
Number of shares repurchased (shares) | shares | 7,807,000 | ||
August 2018 ASR | |||
Equity, Class of Treasury Stock [Line Items] | |||
Number of accelerated share repurchase agreements | agreement | 4 | ||
Number of financial institutions | financial_institution | 2 | ||
Total repurchase amount | $ 1,400,000,000 | ||
Number of shares repurchased (shares) | shares | 5,800,000 | ||
Percent of prepayment divided by closing stock price | 75.00% |
STOCK REPURCHASE PROGRAM - Repu
STOCK REPURCHASE PROGRAM - Repurchases Under the Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | ||
Sep. 23, 2018 | Sep. 24, 2017 | Jun. 24, 2018 | |
Equity, Class of Treasury Stock [Line Items] | |||
Total Cost of Repurchase | $ 1,735,941 | $ 159,735 | |
Stock repurchase program | |||
Equity, Class of Treasury Stock [Line Items] | |||
Total Number of Shares Repurchased | 7,807 | ||
Total Cost of Repurchase | $ 1,733,530 | ||
Average Price Paid Per Share (usd per share) | $ 183.55 | ||
Amount Available Under Repurchase Program | $ 108 | $ 1,733,638 |
ACCUMULATED OTHER COMPREHENSI_3
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 23, 2018 | Sep. 24, 2017 | |||
Change in Accumulated Other Comprehensive Loss | ||||
Beginning balance | $ 6,501,851 | [1] | $ 6,817,451 | |
Other comprehensive (loss) income before reclassifications | 802 | |||
Losses (income) reclassified from accumulated other comprehensive income (loss) to net income | 1,145 | |||
Effects of ASU 2018-02 adoption | (2,227) | |||
Other comprehensive (loss) income, net of tax | (280) | 8,913 | ||
Ending balance | 5,322,825 | 7,271,178 | ||
Accumulated Foreign Currency Translation Adjustment | ||||
Change in Accumulated Other Comprehensive Loss | ||||
Beginning balance | (32,722) | |||
Other comprehensive (loss) income before reclassifications | (6,261) | |||
Losses (income) reclassified from accumulated other comprehensive income (loss) to net income | 0 | |||
Effects of ASU 2018-02 adoption | 0 | |||
Other comprehensive (loss) income, net of tax | (6,261) | |||
Ending balance | (38,983) | |||
Accumulated Unrealized Gain or Loss on Cash flow hedges | ||||
Change in Accumulated Other Comprehensive Loss | ||||
Beginning balance | (4,042) | |||
Other comprehensive (loss) income before reclassifications | 7,265 | |||
Losses (income) reclassified from accumulated other comprehensive income (loss) to net income | 1,148 | |||
Effects of ASU 2018-02 adoption | (399) | |||
Other comprehensive (loss) income, net of tax | 8,014 | |||
Ending balance | 3,972 | |||
Accumulated Unrealized Holding Gain or Loss on Available-For-Sale Investments | ||||
Change in Accumulated Other Comprehensive Loss | ||||
Beginning balance | (1,190) | |||
Other comprehensive (loss) income before reclassifications | (287) | |||
Losses (income) reclassified from accumulated other comprehensive income (loss) to net income | (3) | |||
Effects of ASU 2018-02 adoption | 0 | |||
Other comprehensive (loss) income, net of tax | (290) | |||
Ending balance | (1,480) | |||
Accumulated Unrealized Components of Defined Benefit Plans | ||||
Change in Accumulated Other Comprehensive Loss | ||||
Beginning balance | (19,495) | |||
Other comprehensive (loss) income before reclassifications | 85 | |||
Losses (income) reclassified from accumulated other comprehensive income (loss) to net income | 0 | |||
Effects of ASU 2018-02 adoption | (1,828) | |||
Other comprehensive (loss) income, net of tax | (1,743) | |||
Ending balance | (21,238) | |||
Total | ||||
Change in Accumulated Other Comprehensive Loss | ||||
Beginning balance | (57,449) | (61,700) | ||
Effects of ASU 2018-02 adoption | [2] | (2,227) | ||
Other comprehensive (loss) income, net of tax | 8,913 | |||
Ending balance | $ (57,729) | $ (52,787) | ||
[1] | Derived from audited financial statements | |||
[2] | Refer to Note 2 - Recent Accounting Pronouncements for more information regarding these FASB Accounting Standard Updates. |
ACCUMULATED OTHER COMPREHENSI_4
ACCUMULATED OTHER COMPREHENSIVE LOSS - Components of Accumulated Other Comprehensive Loss Footnotes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 23, 2018 | Sep. 24, 2017 | |
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenue | $ 2,330,691 | $ 2,478,140 |
Cost of goods sold | 1,272,493 | 1,328,797 |
Selling, general, and administrative | 174,775 | 181,043 |
Other income and expense | (377) | $ (5,502) |
Accumulated Unrealized Gain or Loss on Cash flow hedges | Reclassified from accumulated other comprehensive income | ||
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items] | ||
Revenue | 600 | |
Cost of goods sold | 1,325 | |
Selling, general, and administrative | 398 | |
Other income and expense | $ (25) |
Uncategorized Items - lrcx10q1q
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 255,924,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 256,045,000 |
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | 73,127,000 |
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | $ 167,907,000 |