Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jun. 28, 2020 | Aug. 13, 2020 | Dec. 29, 2019 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 28, 2020 | ||
Document Transition Report | false | ||
Entity File Number | 0-12933 | ||
Entity Registrant Name | LAM RESEARCH CORPORATION | ||
Entity Incorporation, State or Country Code | DE | ||
Entity Tax Identification Number | 94-2634797 | ||
Entity Address, Address Line One | 4650 Cushing Parkway, | ||
Entity Address, City or Town | Fremont, | ||
Entity Address, State or Province | CA | ||
Entity Address, Postal Zip Code | 94538 | ||
City Area Code | 510 | ||
Local Phone Number | 572-0200 | ||
Title of 12(b) Security | Common Stock, Par Value $0.001 Per Share | ||
Trading Symbol | LRCX | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
ICFR Auditor Attestation Flag | true | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 29,587,424,632 | ||
Entity Common Stock, Shares Outstanding | 145,625,225 | ||
Documents Incorporated by Reference | Parts of the Registrant’s Proxy Statement for the Annual Meeting of Stockholders expected to be held on or about November 3, 2020, are incorporated by reference into Part III of this Form 10-K. Except as expressly incorporated by reference herein, the Registrant’s proxy statement shall not be deemed to be part of this report. | ||
Amendment Flag | false | ||
Document Fiscal Year Focus | 2020 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000707549 | ||
Current Fiscal Year End Date | --06-28 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Income Statement [Abstract] | |||
Revenue | $ 10,044,736 | $ 9,653,559 | $ 11,076,998 |
Cost of goods sold | 5,436,043 | 5,295,100 | 5,911,966 |
Gross margin | 4,608,693 | 4,358,459 | 5,165,032 |
Research and development | 1,252,412 | 1,191,320 | 1,189,514 |
Selling, general, and administrative | 682,479 | 702,407 | 762,219 |
Total operating expenses | 1,934,891 | 1,893,727 | 1,951,733 |
Operating income | 2,673,802 | 2,464,732 | 3,213,299 |
Other expense, net | (98,824) | (18,161) | (61,510) |
Income before income taxes | 2,574,978 | 2,446,571 | 3,151,789 |
Income tax expense | (323,225) | (255,141) | (771,108) |
Net income | $ 2,251,753 | $ 2,191,430 | $ 2,380,681 |
Net income per share: | |||
Basic (usd per share) | $ 15.55 | $ 14.37 | $ 14.73 |
Diluted (usd per share) | $ 15.10 | $ 13.70 | $ 13.17 |
Number of shares used in per share calculations: | |||
Basic (shares) | 144,814 | 152,478 | 161,643 |
Diluted (shares) | 149,090 | 159,915 | 180,782 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 2,251,753 | $ 2,191,430 | $ 2,380,681 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | (6,441) | (6,648) | 9,649 |
Cash flow hedges: | |||
Net unrealized (losses) gains during the period | (30,603) | 2,461 | |
Net unrealized (losses) gains during the period | (6,960) | ||
Net losses (gains) reclassified into earnings | 2,137 | (2,749) | |
Net losses (gains) reclassified into earnings | 3,729 | ||
Net change | (28,466) | (288) | |
Net change | (3,231) | ||
Available-for-sale investments: | |||
Net unrealized gains (losses) during the period | 1,842 | 3,535 | (45,382) |
Net losses (gains) reclassified into earnings | 935 | (199) | 43,086 |
Net change | 2,777 | 3,336 | (2,296) |
Defined benefit plans, net change in unrealized component | 1,949 | (2,981) | 129 |
Other comprehensive (loss) income, net of tax | (30,181) | (6,581) | 4,251 |
Comprehensive income | $ 2,221,572 | $ 2,184,849 | $ 2,384,932 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 28, 2020 | Jun. 30, 2019 |
ASSETS: | ||
Cash and cash equivalents | $ 4,915,172 | $ 3,658,219 |
Investments | 1,795,080 | 1,772,984 |
Accounts receivable, less allowance for doubtful accounts of $5,465 as of June 28, 2020 and $5,021 as of June 30, 2019 | 2,097,099 | 1,455,522 |
Inventories | 1,900,024 | 1,540,140 |
Prepaid expenses and other current assets | 146,160 | 133,544 |
Total current assets | 10,853,535 | 8,560,409 |
Property and equipment, net | 1,071,499 | 1,059,077 |
Restricted cash and investments | 253,911 | 255,177 |
Goodwill | 1,484,436 | 1,484,597 |
Intangible assets, net | 168,532 | 216,950 |
Other assets | 727,134 | 425,123 |
Total assets | 14,559,047 | 12,001,333 |
LIABILITIES AND STOCKHOLDERS’ EQUITY: | ||
Trade accounts payable | 592,387 | 376,561 |
Accrued expenses and other current liabilities | 1,272,655 | 946,641 |
Deferred profit | 457,523 | 381,317 |
Current portion of convertible notes and finance leases | 839,877 | 667,131 |
Total current liabilities | 3,162,442 | 2,371,650 |
Senior notes, convertible notes, and finance leases, less current portion | 4,970,848 | 3,822,768 |
Income taxes payable | 909,709 | 892,790 |
Other long-term liabilities | 332,559 | 190,821 |
Total liabilities | 9,375,558 | 7,278,029 |
Commitments and contingencies | ||
Temporary equity, convertible notes | 10,995 | 49,439 |
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 as of June 28, 2020 and June 30, 2019; issued and outstanding 145,331 shares as of June 28, 2020, and 144,433 shares as of June 30, 2019 | 145 | 144 |
Additional paid-in capital | 6,695,858 | 6,409,405 |
Treasury stock, at cost, 145,432 shares as of June 28, 2020, and 140,573 shares as of June 30, 2019 | (12,949,889) | (11,602,573) |
Accumulated other comprehensive loss | (94,211) | (64,030) |
Retained earnings | 11,520,591 | 9,930,919 |
Total stockholders’ equity | 5,172,494 | 4,673,865 |
Total liabilities and stockholders’ equity | $ 14,559,047 | $ 12,001,333 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 28, 2020 | Jun. 30, 2019 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5,465 | $ 5,021 |
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 | 145,331,000 | 144,433,000 |
Common stock, shares outstanding | 145,331,000 | 144,433,000 |
Treasury stock, shares | 145,432,000 | 140,573,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 2,251,753,000 | $ 2,191,430,000 | $ 2,380,681,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 268,525,000 | 309,281,000 | 326,395,000 |
Deferred income taxes | (17,777,000) | (4,980,000) | 3,046,000 |
Equity-based compensation expense | 189,197,000 | 187,234,000 | 172,216,000 |
Impairment of investments | 0 | 0 | |
Impairment of investments | 42,456,000 | ||
Amortization of note discounts and issuance costs | 5,940,000 | 7,343,000 | 14,428,000 |
Other, net | 688,000 | (5,819,000) | 33,718,000 |
Changes in operating asset and liability accounts: | |||
Accounts receivable, net of allowance | (641,827,000) | 732,138,000 | (501,628,000) |
Inventories | (411,608,000) | 281,355,000 | (701,008,000) |
Prepaid expenses and other assets | (14,354,000) | (17,864,000) | (14,391,000) |
Trade accounts payable | 208,478,000 | (131,472,000) | 35,655,000 |
Deferred profit | 76,207,000 | (178,074,000) | 112,413,000 |
Accrued expenses and other liabilities | 211,229,000 | (194,559,000) | 751,766,000 |
Net cash provided by operating activities | 2,126,451,000 | 3,176,013,000 | 2,655,747,000 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures and intangible assets | (203,239,000) | (303,491,000) | (273,469,000) |
Business acquisition, net of cash acquired | 0 | 0 | (115,697,000) |
Purchases of available-for-sale securities | (2,897,627,000) | (2,930,049,000) | |
Purchases of available-for-sale securities | (2,532,829,000) | ||
Proceeds from maturities of available-for-sale securities | 1,647,379,000 | 466,539,000 | 650,255,000 |
Proceeds from sales of available-for-sale securities | 1,235,248,000 | 1,137,302,000 | |
Proceeds from sales of available-for-sale securities | 5,035,460,000 | ||
Other, net | (25,845,000) | (7,355,000) | (15,184,000) |
Net cash (used for) provided by investing activities | (244,084,000) | (1,637,054,000) | 2,748,536,000 |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net proceeds from issuance of long-term debt | 1,974,651,000 | 2,476,720,000 | 0 |
Principal payments on long-term debt and capital lease obligations and payments for debt issuance costs | (667,537,000) | (117,653,000) | (755,694,000) |
Net (repayment) proceeds from commercial paper | 0 | (361,754,000) | 359,604,000 |
Proceeds from borrowings on revolving credit facility | 1,250,000,000 | 0 | 750,000,000 |
Repayment of borrowings on revolving credit facility | (1,250,000,000) | 0 | (750,000,000) |
Treasury stock purchases | (1,369,649,000) | (3,780,611,000) | (2,653,249,000) |
Dividends paid | (656,838,000) | (678,348,000) | (307,609,000) |
Reissuances of treasury stock related to employee stock purchase plan | 85,439,000 | 77,961,000 | 75,624,000 |
Proceeds from issuance of common stock | 8,084,000 | 6,813,000 | 9,258,000 |
Other, net | 1,920,000 | (13,208,000) | 9,000 |
Net cash used for financing activities | (623,930,000) | (2,390,080,000) | (3,272,057,000) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | (2,750,000) | (4,041,000) | 2,593,000 |
Net increase (decrease) in cash, cash equivalents and restricted cash | 1,255,687,000 | (855,162,000) | 2,134,819,000 |
Cash, cash equivalents and restricted cash at beginning of year | 3,913,396,000 | 4,768,558,000 | 2,633,739,000 |
Cash, cash equivalents and restricted cash at end of year | 5,169,083,000 | 3,913,396,000 | 4,768,558,000 |
Schedule of non-cash transactions | |||
Accrued payables for stock repurchases | 82,000 | 29,000 | 116,000 |
Accrued payables for capital expenditures | 37,812,000 | 23,185,000 | 24,001,000 |
Transfers of finished goods inventory to property and equipment, net | 51,694,000 | 54,533,000 | 57,886,000 |
Supplemental disclosures: | |||
Cash payments for interest | 171,889,000 | 76,933,000 | 84,401,000 |
Cash payments for income taxes, net | 222,909,000 | 300,268,000 | 142,800,000 |
Reconciliation of cash, cash equivalents, and restricted cash | |||
Total cash, cash equivalents, and restricted cash | $ 3,913,396,000 | $ 3,913,396,000 | $ 4,768,558,000 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income(Loss) | Retained Earnings |
Beginning balance (shares) at Jun. 25, 2017 | 161,723 | |||||
Beginning balance at Jun. 25, 2017 | $ 6,817,451 | $ 162 | $ 5,845,485 | $ (5,216,187) | $ (61,700) | $ 6,249,691 |
Increase (Decrease) in Stockholders' Equity | ||||||
Sale of common stock (shares) | 1,934 | |||||
Sale of common stock | 9,258 | $ 2 | 9,256 | |||
Purchase of treasury stock (shares) | (14,786) | |||||
Purchase of treasury stock | (2,653,365) | $ (15) | (2,653,350) | |||
Reissuance of treasury stock (shares) | 677 | |||||
Reissuance of treasury stock | 75,624 | $ 1 | 52,562 | 23,061 | ||
Equity-based compensation expense | 172,216 | 172,216 | ||||
Effect of conversion of convertible notes (shares) | 10,199 | |||||
Effect of conversion of convertible notes | (26,766) | $ 10 | (26,776) | |||
Effect of bond hedge, cash in lieu of shares (shares) | (2,855) | |||||
Effect of bond hedge, cash in lieu of shares | 10 | $ (3) | 13 | |||
Reclassification from temporary to permanent equity | 91,669 | 91,669 | ||||
Net income | 2,380,681 | 2,380,681 | ||||
Other comprehensive income (loss) | 4,251 | 4,251 | ||||
Cash dividends declared | (409,243) | (409,243) | ||||
Ending balance (shares) at Jun. 24, 2018 | 156,892 | |||||
Ending balance at Jun. 24, 2018 | 6,501,851 | $ 157 | 6,144,425 | (7,846,476) | (57,449) | 8,261,194 |
Increase (Decrease) in Stockholders' Equity | ||||||
Sale of common stock (shares) | 1,090 | |||||
Sale of common stock | 6,813 | $ 1 | 6,812 | |||
Purchase of treasury stock (shares) | (21,059) | |||||
Purchase of treasury stock | (3,780,524) | $ (21) | (3,780,503) | |||
Reissuance of treasury stock (shares) | 622 | |||||
Reissuance of treasury stock | 77,961 | $ 0 | 53,555 | 24,406 | ||
Equity-based compensation expense | 187,234 | 187,234 | ||||
Effect of conversion of convertible notes (shares) | 2,783 | |||||
Effect of conversion of convertible notes | (11,358) | $ 3 | (11,361) | |||
Exercise of warrants (shares) | 4,105 | |||||
Exercise of warrants | (8) | $ 4 | (12) | |||
Reclassification from temporary to permanent equity | 28,752 | 28,752 | ||||
Effects of ASU 2018-02 adoption | ASU 2018-02 | 0 | (2,227) | 2,227 | |||
Net income | 2,191,430 | 2,191,430 | ||||
Other comprehensive income (loss) | (6,581) | |||||
Other comprehensive loss | (4,354) | (4,354) | ||||
Cash dividends declared | (662,844) | (662,844) | ||||
Ending balance (shares) at Jun. 30, 2019 | 144,433 | |||||
Ending balance at Jun. 30, 2019 | 4,673,865 | $ 144 | 6,409,405 | (11,602,573) | (64,030) | 9,930,919 |
Increase (Decrease) in Stockholders' Equity | ||||||
Sale of common stock (shares) | 1,288 | |||||
Sale of common stock | 8,084 | $ 1 | 8,083 | |||
Purchase of treasury stock (shares) | (5,371) | |||||
Purchase of treasury stock | (1,369,702) | $ (5) | (1,369,697) | |||
Reissuance of treasury stock (shares) | 513 | |||||
Reissuance of treasury stock | 85,439 | $ 1 | 63,057 | 22,381 | ||
Equity-based compensation expense | 189,197 | 189,197 | ||||
Effect of conversion of convertible notes (shares) | 4,468 | |||||
Effect of conversion of convertible notes | (12,324) | $ 4 | (12,328) | |||
Reclassification from temporary to permanent equity | 38,444 | 38,444 | ||||
Net income | 2,251,753 | 2,251,753 | ||||
Other comprehensive income (loss) | (30,181) | (30,181) | ||||
Cash dividends declared | (665,099) | (665,099) | ||||
Ending balance (shares) at Jun. 28, 2020 | 145,331 | |||||
Ending balance at Jun. 28, 2020 | $ 5,172,494 | $ 145 | $ 6,695,858 | $ (12,949,889) | $ (94,211) | $ 11,520,591 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Statement of Stockholders' Equity [Abstract] | |||
Dividends declared per share (usd per share) | $ 4.6 | $ 4.4 | $ 2.55 |
Company and Industry Informatio
Company and Industry Information | 12 Months Ended |
Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Company and Industry Information | Company and Industry Information The Company designs, manufactures, markets, refurbishes, and services semiconductor processing equipment used in the fabrication of integrated circuits. Semiconductor manufacturing, our customers’ business, involves the complete fabrication of multiple dies or integrated circuits on a wafer. This involves the repetition of a set of core processes and can require hundreds of individual steps. Fabricating these devices requires highly sophisticated process technologies to integrate an increasing array of new materials with precise control at the atomic scale. Along with meeting technical requirements, wafer processing equipment must deliver high productivity and be cost-effective. The Company sells its products and services primarily to companies involved in the production of semiconductors in the United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan. The semiconductor industry is cyclical in nature and has historically experienced periodic downturns and upturns. Today’s leading indicators of changes in customer investment patterns, such as electronics demand, memory pricing, and foundry utilization rates, may not be any more reliable than in prior years. Demand for the Company’s equipment can vary significantly from period to period as a result of various factors including, but not limited to economic conditions; supply, demand, and prices for semiconductors; customer capacity requirements; and the Company’s ability to develop and market competitive products. For these and other reasons, the Company’s results of operations for fiscal years 2020 , 2019 , and 2018 may not necessarily be indicative of future operating results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 28, 2020 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates, and assumptions that could affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience and on various other assumptions it believes to be applicable and evaluates them on an ongoing basis to ensure they remain reasonable under current conditions. Actual results could differ significantly from those estimates. Revenue Recognition: On June 25, 2018, the Company adopted FASB Accounting Standards Update (“ASU”) No. 2014-09 (ASC 606) - Revenue From Contracts with Customers which provides guidance for revenue recognition that superseded the revenue recognition requirements in ASC 605, Revenue Recognition and most industry specific guidance. 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 to the performance obligations in the contract, 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. In addition, customer contracts contain provisions for installation and training services 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. Inventory Valuation: Inventories are stated at the lower of cost or net realizable value using standard costs that approximate actual costs on a first-in, first-out basis. Finished goods are reported as inventories until the point of title transfer to the customer. Unless specified in the terms of sale, title generally transfers at the physical transfer of the products to the freight carriers. Transfer of title for shipments to Japanese customers occurs at the time of customer acceptance. Management evaluates the need to record adjustments for impairment of inventory at least quarterly. The Company’s policy is to assess the valuation of all inventories including manufacturing raw materials, work-in-process, finished goods, and spare parts in each reporting period. Obsolete inventory or inventory in excess of management’s estimated usage requirement is written down to its estimated market value if less than cost. Estimates of market value include but are not limited to management’s forecasts related to the Company’s future manufacturing schedules, customer demand, technological and/or market obsolescence, general semiconductor market conditions, and possible alternative uses. If future customer demand or market conditions are less favorable than the Company’s projections, additional inventory write-downs may be required and would be reflected in cost of goods sold in the period in which the revision is made. Warranty: Typically, the sale of semiconductor capital equipment includes providing parts and service warranties to customers as part of the overall price of the system. The Company provides standard warranties for its systems. The Company records a provision for estimated warranty expenses to cost of sales for each system when it recognizes revenue. The Company does not maintain general or unspecified reserves; all warranty reserves are related to specific systems. All actual or estimated parts and labor costs incurred in subsequent periods are charged to those established reserves on a system-by-system basis. While the Company periodically monitors the performance and cost of warranty activities, if actual costs incurred are different than its estimates, the Company may recognize adjustments to provisions in the period in which those differences arise or are identified. In addition to the provision of standard warranties, the Company offers customer-paid extended warranty services. Revenues for extended maintenance and warranty services with a fixed payment amount are recognized on a straight-line basis over the term of the contract. Related costs are recorded as incurred. Equity-based Compensation — Employee Stock Plans: The Company recognizes the fair value of equity-based compensation expense. The Company determines the fair value of its RSUs, excluding market-based performance RSUs, based upon the fair market value of Company’s Common Stock at the date of grant, discounted for dividends. The Company estimates the fair value of its market-based performance RSUs using a Monte Carlo simulation model at the date of the grant. The Company estimates the fair value of its stock options using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award. The Company amortizes the fair value of equity-based awards over the vesting periods of the award, and the Company has elected to use the straight-line method of amortization. Income Taxes: Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. Realization of its net deferred tax assets is dependent on future taxable income. The Company believes it is more likely than not that such assets will be realized; however, ultimate realization could be negatively impacted by market conditions and other variables not known or anticipated at this time. In the event that the Company determines that it will not be able to realize all or part of its net deferred tax assets, an adjustment will be charged to earnings in the period such determination is made. Likewise, if the Company later determines that it is more likely than not that the deferred tax assets will be realized, then the previously provided valuation allowance will be reversed. The Company recognizes the benefit from a tax position only if it is more likely than not that the position will be sustained upon audit based solely on the technical merits of the tax position. The Company’s policy is to include interest and penalties related to uncertain tax positions as a component of income tax expense. Goodwill and Intangible Assets: The valuation of intangible assets acquired in a business combination requires the use of management estimates including but not limited to estimating future expected cash flows from assets acquired and determining discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. Estimates associated with the accounting for acquisitions may change as additional information becomes available. Goodwill represents the amount by which the purchase price in each business combination exceeds the fair value of the net tangible and identifiable intangible assets acquired. Each component of the Company for which discrete financial information is available and for which management regularly reviews the results of operations is considered a reporting unit. All goodwill acquired in a business combination is assigned to one or more reporting units as of the acquisition date. Goodwill is assigned to the Company’s reporting units that are expected to benefit from the synergies of the combination. The goodwill assigned to a reporting unit is the difference between the acquisition consideration assigned to the reporting unit on a relative fair value basis and the fair value of acquired assets and liabilities that can be specifically attributed to the reporting unit. The Company tests goodwill and identifiable intangible assets with indefinite useful lives for impairment at least annually. The Company amortizes intangible assets with estimable useful lives over their respective estimated useful lives, and the Company reviews for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable and the carrying amount exceeds its fair value. The Company reviews goodwill at least annually for impairment. If certain events or indicators of impairment occur between annual impairment tests, the Company would perform an impairment test at that date. In testing for a potential impairment of goodwill, the Company (1) allocates goodwill to its reporting units to which the acquired goodwill relates, (2) estimates the fair value of its reporting units, and (3) determines the carrying value (book value) of those reporting units. Furthermore, if the estimated fair value of a reporting unit is less than the carrying value, the Company must estimate the fair value of all identifiable assets and liabilities of that reporting unit, in a manner similar to a purchase price allocation for an acquired business. This can require independent valuations of certain internally generated and unrecognized intangible assets such as in-process R&D and developed technology. Only after this process is completed can the amount of goodwill impairment, if any, be determined. In the Company’s goodwill impairment process, it first assesses qualitative factors to determine whether it is necessary to perform a quantitative analysis. The Company does not calculate the fair value of a reporting unit unless the Company determines, based on a qualitative assessment, that it is more-likely-than-not that its fair value is less than its carrying amount. The Company performs an annual goodwill impairment analysis as of the first day of its fourth fiscal quarter. The Company did no t record impairments of goodwill during the years ended June 28, 2020 , June 30, 2019 , or June 24, 2018 . The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis. The Company determines the fair value of its reporting units by using an income approach. Under the income approach, the Company determines fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. In estimating the fair value of a reporting unit, the Company makes estimates and judgments about the future cash flows of its reporting units, including estimated growth rates and assumptions about the economic environment. Although the Company’s cash flow forecasts are based on assumptions that are consistent with the plans and estimates it is using to manage the underlying businesses, there is significant judgment involved in determining the cash flows attributable to a reporting unit. In addition, the Company makes certain judgments about allocating shared assets to the estimated balance sheets of its reporting units. Changes in judgment on these assumptions and estimates could result in a goodwill impairment charge. As a result, several factors could result in impairment of a material amount of the Company’s goodwill balance in future periods, including but not limited to: (1) weakening of the global economy, weakness in the semiconductor equipment industry, or failure of the Company to reach its internal forecasts, which could impact the Company’s ability to achieve its forecasted levels of cash flows and reduce the estimated discounted cash flow value of its reporting units and (2) a decline in the Company’s stock price and resulting market capitalization and to the extent the Company determines that the decline is sustained and indicates a reduction in the fair value of the Company’s reporting units below their carrying value. Further, the value assigned to intangible assets, other than goodwill, is based on estimates and judgments regarding expectations such as the success and lifecycle of products and technology acquired. If actual product acceptance differs significantly from the estimates, the Company may be required to record an impairment charge to write down the asset to its realizable value. Impairment of Long-lived Assets (Excluding Goodwill): The Company routinely considers whether indicators of impairment of long-lived assets are present. If such indicators are present, the Company determines whether the sum of the estimated undiscounted cash flows attributable to the assets is less than their carrying value. If the sum is less, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their respective fair values. Fair value is determined by discounted future cash flows, appraisals, or other methods. The Company recognizes an impairment charge to the extent the present value of anticipated net cash flows attributable to the asset are less than the asset’s carrying value. The fair value of the asset then becomes the asset’s new carrying value, which the Company depreciates over the remaining estimated useful life of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value. For the periods presented, there was no impairment of long-lived assets. In addition, for fully amortized intangible assets, we derecognize the gross cost and accumulated amortization in the period we determine the intangible asset no longer enhances future cash flows. Fiscal Year: The Company follows a 52/53-week fiscal reporting calendar, and its fiscal year ends on the last Sunday of June each year. The Company’s most recent fiscal years ended June 28, 2020 and June 24, 2018 , each included 52 weeks, and the fiscal year ended June 30, 2019 included 53 weeks. Principles of Consolidation: The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. Cash Equivalents and Investments: Investments purchased with an original maturity of three months or less are considered cash equivalents. The Company also invests in certain mutual funds, which include equity and fixed- income securities, related to its obligations under its deferred compensation plan, and such investments are classified as trading securities on the consolidated balance sheets. All of the Company’s other investments are classified as available-for-sale at the respective balance sheet dates. The Company accounts for its investment portfolio at fair value. Investments classified as trading securities are recorded at fair value based upon quoted market prices. Differences between the cost and fair value of trading securities are recognized as “Other income (expense)” in the Consolidated Statement of Operations. The investments classified as available-for-sale are recorded at fair value based upon quoted market prices, and difference between the cost and fair value of available-for-sale securities is presented as a component of accumulated other comprehensive income (loss). Unrealized losses on available-for-sale securities are charged against other income (expense) when a decline in fair value is determined to be other than temporary. The Company considers several factors to determine whether a loss is other than temporary. These factors include but are not limited to (1) the extent to which the fair value is less than cost basis, (2) the financial condition and near-term prospects of the issuer, (3) the length of time a security is in an unrealized loss position, and (4) the Company’s ability to hold the security for a period of time sufficient to allow for any anticipated recovery in fair value. The Company’s ongoing consideration of these factors could result in additional impairment charges in the future, which could adversely affect its results of operation. An other-than-temporary impairment is triggered when there is an intent to sell the security, it is more-likely-than-not that the security will be required to be sold before recovery, or the security is not expected to recover the entire amortized cost basis of the security. Other-than-temporary impairments attributed to credit losses are recognized in the income statement. The specific identification method is used to determine the realized gains and losses on investments. The Company recorded a $42.5 million other-than-temporary impairment charge during the year ended June 24, 2018 . No other-than-temporary impairment charges were recognized during the years ended June 28, 2020 or June 30, 2019 . Allowance for Doubtful Accounts: The Company evaluates its allowance for doubtful accounts based on a combination of factors. In circumstances where specific invoices are deemed uncollectible, the Company provides a specific allowance for bad debt against the amount due to reduce the net recognized receivable to the amount it reasonably believes will be collected. The Company also provides allowances based on its write-off history. Bad debt expense was not material for fiscal years ended June 28, 2020, June 30, 2019, and June 24, 2018. Property and Equipment: Property and equipment is stated at cost. Equipment is depreciated by the straight-line method over the estimated useful lives of the assets, generally three to five years . Furniture and fixtures are depreciated by the straight-line method over the estimated useful lives of the assets, generally five years . Software is amortized by the straight-line method over the estimated useful lives of the assets, generally three to five years . Buildings are depreciated by the straight-line method over the estimated useful lives of the assets, generally twenty-five years . Leasehold improvements are generally amortized by the straight-line method over the shorter of the life of the related asset or the term of the underlying lease. Amortization of finance leases is included with depreciation expense. Derivative Financial Instruments: In the normal course of business, the Company’s financial position is routinely subjected to market risk associated with foreign currency exchange rate fluctuations. The Company’s policy is to mitigate the effect of these exchange rate fluctuations on certain foreign currency denominated business exposures. The Company has a policy that allows the use of derivative financial instruments to hedge foreign currency exchange rate fluctuations on forecasted revenue and expenses and net monetary assets or liabilities denominated in various foreign currencies. The Company carries derivative financial instruments (derivatives) on the balance sheet at their fair values. The Company does not use derivatives for trading or speculative purposes. The Company does not believe that it is exposed to more than a nominal amount of credit risk in its interest rate and foreign currency hedges, as counterparties are large, global and well-capitalized financial institutions. The Company’s exposures are in liquid currencies (Japanese yen, euros, Korean won, Taiwanese dollars, Chinese renminbi, Swiss franc, British pound sterling, Singapore dollars, Indian rupee, and Malaysian ringgit), so there is minimal risk that appropriate derivatives to maintain the Company’s hedging program would not be available in the future. To hedge foreign currency risks, the Company uses foreign currency exchange forward and option contracts, where possible and prudent. These hedge contracts are valued using standard valuation formulas with assumptions about future foreign currency exchange rates derived from existing exchange rates, interest rates, and other market factors. The Company considers its most current forecast in determining the level of foreign currency denominated revenue and expenses to hedge as cash flow hedges. The Company combines these forecasts with historical trends to establish the portion of its expected volume to be hedged. The revenue and expenses are hedged and designated as cash flow hedges to protect the Company from exposures to fluctuations in foreign currency exchange rates. If the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the related hedge gains and losses on the cash flow hedge are reclassified from accumulated other comprehensive income (loss) to other income (expense), net on the Consolidated Statement of Operations at that time. Leases: Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company includes renewals and terminations in the calculation of the right-of-use asset and liability when the provision is reasonably certain to be exercised. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future lease payments when the rate implicit in the lease is unknown. The Company has elected the following practical expedients and accounting policy elections for accounting under ASC 842: (i) leases with an initial lease term of 12 months or less are not recorded on the balance sheet; and (ii) lease and non-lease components of a contract are accounted for as a single lease component. Guarantees: The Company has certain operating leases that contain provisions whereby the properties subject to the operating leases may be remarketed at lease expiration. The Company has guaranteed to the lessor an amount approximating the lessor’s investment in the property. Also, the Company’s guarantees generally include certain indemnifications to its lessors under operating lease agreements for environmental matters, potential overdraft protection obligations to financial institutions related to one of the Company’s subsidiaries, indemnifications to the Company’s customers for certain infringement of third-party intellectual property rights by its products and services, indemnifications for its officers and directors, and the Company’s warranty obligations under sales of its products. Foreign Currency Translation: The Company’s non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, primarily generate and expend cash in their local currency. Accordingly, all balance sheet accounts of these local functional currency subsidiaries are translated into U.S. dollars at the fiscal period-end exchange rate, and income and expense accounts are translated into U.S. dollars using average rates in effect for the period, except for costs related to those balance sheet items that are translated using historical exchange rates. The resulting translation adjustments are recorded as cumulative translation adjustments and are a component of accumulated other comprehensive income (loss). Translation adjustments are recorded in other income (expense), net, where the U.S. dollar is the functional currency. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jun. 28, 2020 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted In February 2016, the FASB issued ASU 2016-02, “Leases.” The amendment establishes the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. In January 2018 and July 2018, the FASB issued ASU 2018-01 and ASU 2018-11 amending the effects of ASU 2016-02, which in combination with ASU 2016-02 were codified as Accounting Standard Codification topic 842 (“ASC 842”). The Company adopted ASC 842 on the first day of the current fiscal year, July 1, 2019, under the modified-retrospective approach, applying the amendments to prospective reporting periods. Results for reporting periods beginning on or after July 1, 2019 are presented under ASC 842, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under ASC 840. The Company elected the package of practical expedients that allowed the Company not to reassess (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct lease costs for existing leases. The Company did not elect to use hindsight in connection with the adoption of ASC 842. The Company adopted ASC 842 by recording operating right-of-use assets of $110.8 million , net of deferred rent liabilities of $3.0 million that were reclassified to operating right-of-use assets, and operating lease liabilities of $113.8 million . The Company also recognized an adjustment of $3.0 million to retained earnings, net of tax; a reduction of $40.4 million to property and equipment, net; and a reduction of $43.8 million to finance leases ( $42.3 million of which was previously recognized in long-term debt and finance lease obligations, less current portion and the remaining was previously recognized in current portion of long-term debt and finance lease obligations) related to its de-recognition of its previously recorded build-to-suit arrangements. The adoption of the standard did not materially impact the Company’s Consolidated Statement of Operations and had no impact on cash flows. Updates Not Yet Effective In June 2016, the FASB released ASU 2016-13, “Financial Instruments – Credit Losses.” The amendment revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including but not limited to, available for sale debt securities and accounts receivable. The FASB issued a subsequent amendment to the initial guidance in November 2019 within ASU 2019-11. The Company is required to adopt these amendments starting in the first quarter of fiscal year 2021 using a modified-retrospective approach. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its Consolidated Financial Statements. In November 2018, the FASB issued ASU 2018-18, "Collaborative Arrangements (Topic 808).” The amendment clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under Topic 606 when the counterparty is a customer for a good or service that is a distinct unit of account. The amendment also precludes entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers. The Company is required to adopt this standard starting in the first quarter of fiscal year 2021. The standard should be applied retrospectively to the period when the Company initially adopted ASC 606. The Company does not expect the adoption of this standard to have a material impact on its Consolidated Financial Statements. In April 2019, the FASB issued ASU 2019-04,”Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments”, that clarifies and improves areas of guidance related to the recently issued standards on credit losses (ASU 2016-13), hedging (ASU 2017-12), and recognition and measurement of financial instruments (ASU 2016-01). The amendments generally have the same effective dates as their related standards. If already adopted, the amendments of ASU 2016-01 and ASU 2016-13 are effective starting in the first quarter of fiscal year 2021. The Company does not expect adoption of this standard to have a material impact on its Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. This ASU may be applied prospectively through December 31, 2022. The Company expects to adopt this guidance and apply it to reference rate reform effected arrangement modifications. |
Revenue
Revenue | 12 Months Ended |
Jun. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Deferred Revenue Revenue of $408.8 million included in deferred profit at June 30, 2019 was recognized during fiscal year 2020. The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of June 28, 2020 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 $ 463,759 $ 73,668 (1) $ — (1) $ 537,427 (1) This amount is reported in Deferred profit on the Company's Consolidated Balance Sheets as the customers can demand the liability to be performed at any time. Disaggregation of Revenue The following table presents the Company’s revenue disaggregated between system and its customer-support related revenue: Year Ended June 28, June 30, (in thousands) Systems Revenue $ 6,625,130 $ 6,451,104 Customer support-related revenue and other 3,419,606 3,202,455 $ 10,044,736 $ 9,653,559 System revenue includes sales of new leading-edge equipment in deposition, etch and clean markets. Customer support-related revenue includes sales of customer service, spares, upgrades, and non-leading-edge equipment from the Company’s Reliant product line. The Company operates in one reportable business segment: manufacturing and servicing of wafer processing semiconductor manufacturing equipment. Refer to Note 20 - Segment, Geographic Information, and Major Customers; for additional information regarding the Company’s evaluation of reportable business segments and the disaggregation of revenue by the geographic regions the Company operates in. Additionally, the Company serves three primary markets: memory, foundry, logic/integrated device manufacturing. The following table presents the percentages of leading- and non-leading-edge equipment and upgrade revenue to each of the primary markets we serve: Year Ended June 28, June 30, Memory 58 % 70 % Foundry 31 % 20 % Logic/integrated device manufacturing 11 % 10 % |
Equity-based Compensation Plans
Equity-based Compensation Plans | 12 Months Ended |
Jun. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Equity-based Compensation Plans | Equity-based Compensation Plans The Company has stock plans that provide for grants of equity-based awards to eligible participants, including stock options and restricted stock units, of the Company’s Common Stock. An option is a right to purchase Common Stock at a set price. An RSU award is an agreement to issue a set number of shares of Common Stock at the time of vesting. The Company’s options and RSU awards typically vest over a period of three years or less. The Company also has an employee stock purchase plan that allows employees to purchase its Common Stock at a discount through payroll deductions. The Lam Research Corporation 2007 Stock Incentive Plan, as amended and restated, 2011 Stock Incentive Plan, as amended and restated, and the 2015 Stock Incentive Plan (collectively the “Stock Plans”), provide for the grant of non-qualified equity-based awards to eligible employees, consultants and advisors, and non-employee directors of the Company and its subsidiaries. The 2015 Stock Incentive Plan was approved by shareholders authorizing up to 18,000,000 shares available for issuance under the plan. Additionally, 1,232,068 shares that remained available for grants under the Company’s 2007 Stock Incentive Plan were added to the shares available for issuance under the 2015 Stock Incentive Plan. As of June 28, 2020 , there were a total of 8,909,055 shares available for future issuance under the Stock Plans. New shares are issued from the Company’s balance of authorized Common Stock from the 2015 Stock Incentive Plan to satisfy stock option exercises and vesting of awards. The Company recognized the following equity-based compensation expense and benefits in the Consolidated Statements of Operations: Year Ended June 28, June 30, June 24, (in thousands) Equity-based compensation expense $ 189,197 $ 187,234 $ 172,216 Income tax benefit recognized related to equity-based compensation $ 36,135 $ 47,396 $ 87,505 Income tax benefit realized from the exercise and vesting of options and RSUs $ 67,060 $ 49,242 $ 90,297 The estimated fair value of the Company’s equity-based awards, less expected forfeitures, is amortized over the awards’ vesting terms on a straight-line basis. Restricted Stock Units During the fiscal years 2020 , 2019 , and 2018 , the Company issued both service-based RSUs and market-based performance RSUs (“PRSUs”). Market-based PRSUs generally vest three years from the grant date if certain performance criteria are achieved and require continued employment. Based upon the terms of such awards, the number of shares that can be earned over the performance periods is based on the Company’s Common Stock price performance compared to the market price performance of a designated benchmark index, ranging from 0% to 150% of target. The designated benchmark index was the Philadelphia Semiconductor Total Return Index (“XSOX”) for market-based PRSUs issued in 2020 and the Philadelphia Semiconductor Sector Index (“SOX”) for market-based PRSUs issued in 2019 and 2018. The stock price performance or market price performance is measured using the closing price for the 50 -trading days prior to the dates the performance period begins and ends. The target number of shares represented by the market-based PRSUs is increased by 2% of target for each 1% that Common Stock price performance exceeds the market price performance of the designated benchmark index. Market-based PRSUs issued in 2020 utilized the XSOX, as adjusted for the reinvestment of dividends on Common Stock on the ex-dividend date, whereas market-based PRSUs issued in 2019 and 2018 utilized the SOX which excluded the impact of dividends. The result of the vesting formula is rounded down to the nearest whole number. Total stockholder return is a measure of stock price appreciation in this performance period. The following table summarizes restricted stock activity: Service-based RSUs Outstanding Market-based RSUs Outstanding Number of Weighted-Average Number of Weighted-Average June 25, 2017 2,687,606 $ 92.01 862,455 $ 83.83 Granted 964,391 183.97 285,866 125.56 Vested (1,362,369 ) 87.80 (407,024 ) 76.88 Forfeited or canceled (96,540 ) 108.67 (47,571 ) 91.36 June 24, 2018 2,193,088 $ 134.34 693,726 $ 104.59 Granted 893,622 161.64 163,529 148.50 Vested (1,135,284 ) 115.23 (301,622 ) 70.58 Forfeited or canceled (154,541 ) 141.38 (120,859 ) 104.73 June 30, 2019 1,796,885 $ 159.36 434,774 $ 144.57 Granted 616,353 280.08 171,526 216.04 Vested (912,409 ) 151.53 (257,787 ) 111.75 Forfeited or canceled (94,265 ) 176.30 (33,403 ) 160.83 June 28, 2020 1,406,564 $ 216.34 315,110 $ 208.60 The fair value of the Company’s service-based RSUs was calculated based on the fair market value of the Company’s stock at the date of grant, discounted for dividends. Shares granted for market-based PRSUs includes both shares newly granted during the fiscal year, as well as adjustments to previous grants resulting from actual market price performance; total approximate number of shares newly granted were as follows for fiscal years ended June 28, 2020, June 30, 2019 and June 24, 2018; 86,000 , 134,000 , and 149,000 , respectively. The fair value of the Company’s market-based PRSUs granted during fiscal years 2020 , 2019 , and 2018 was calculated using a Monte Carlo simulation model at the date of the grant. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award: Year Ended June 28, June 30, June 24, Assumptions: Expected volatility 35.81 % 32.65 % 34.07 % Risk-free interest rate 0.85 % 2.52 % 2.35 % Expected term (years) 2.92 2.92 2.92 Dividend yield 1.53 % 2.49 % 1.05 % Resulting grant date fair value: $ 320.69 $ 165.78 $ 170.15 As of June 28, 2020 , the Company had $293.2 million of total unrecognized compensation expense related to all unvested RSUs granted which is expected to be recognized over a weighted-average remaining period of 2.2 years . Stock Options The following table summarizes stock option activity: Options Outstanding Number of Weighted-Average June 25, 2017 594,059 $ 66.69 Granted 63,980 190.07 Exercised (166,481 ) 55.62 Forfeited or expired (8,630 ) 84.44 June 24, 2018 482,928 $ 86.53 Granted 181,450 164.54 Exercised (110,427 ) 61.69 Forfeited or expired (59,068 ) 126.05 June 30, 2019 494,883 $ 115.96 Granted 34,236 300.33 Exercised (118,334 ) 68.31 Forfeited or expired (4,948 ) 179.39 June 28, 2020 405,837 $ 144.63 As of June 28, 2020 the options outstanding had a weighted-average remaining life of 4.2 years and a weighted-average exercise price of $144.63 . As of June 28, 2020, the Company had 243,541 exercisable options outstanding with a weighted-average remaining life of 3.2 years and a weighted-average exercise price of $110.77 . The fair value of the Company’s stock options granted during fiscal years 2020 , 2019 , and 2018 was estimated using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award: Year Ended June 28, June 30, June 24, Expected volatility 33.89 % 32.23 % 34.66 % Risk-free interest rate 0.88 % 2.62 % 2.53 % Expected term (years) 4.63 4.70 4.74 Dividend yield 1.53 % 2.70 % 1.05 % The year-end intrinsic value relating to stock options for fiscal years 2020 , 2019 , and 2018 is presented below: Year Ended June 28, June 30, June 24, (in thousands) Intrinsic value - options outstanding $ 64,077 $ 35,674 $ 43,563 Intrinsic value - options exercisable $ 46,698 $ 30,139 $ 34,661 Intrinsic value - options exercised $ 21,137 $ 12,750 $ 23,925 As of June 28, 2020 , the Company had $6.8 million of total unrecognized compensation expense related to unvested stock options granted and outstanding which is expected to be recognized over a weighted-average remaining period of 2.2 years . ESPP The Company has an employee stock purchase plan (the “ESPP”) which allows employees to designate a portion of their base compensation to be deducted and used to purchase the Company’s Common Stock at a purchase price per share of the lower of 85% of the fair market value of the Company’s Common Stock on the first or last day of the applicable purchase period. Typically, each offering period lasts twelve months and comprises one interim purchase date. During fiscal year 2020, approximately 512 thousand shares of the Company’s Common Stock were sold to employees under the ESPP. At June 28, 2020, approximately 6.4 million shares were available for purchase under the ESPP, and the Company had $30.0 million of total unrecognized compensation cost related to the ESPP which is expected to be recognized over a remaining period of ten months . |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Jun. 28, 2020 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other Expense, Net The significant components of other expense, net, were as follows: Year Ended June 28, June 30, June 24, (in thousands) Interest income $ 85,433 $ 98,771 $ 85,813 Interest expense (177,440 ) (117,263 ) (97,387 ) Gains on deferred compensation plan related assets, net 5,999 10,464 14,692 Loss on impairment of investments — — (42,456 ) Foreign exchange (losses) gains, net (3,317 ) 826 (3,382 ) Other, net (9,499 ) (10,959 ) (18,790 ) $ (98,824 ) $ (18,161 ) $ (61,510 ) Interest income in the year ended June 28, 2020 , decreased compared to the year ended June 30, 2019 , as a result of lower yield, offset by a higher cash balance. Interest income increased in the year ended June 30, 2019 , compared to the year ended June 24, 2018 , as a result of a higher yield, offset by a lower cash balance. Interest expense in the year ended June 28, 2020 , increased compared to the year ended June 30, 2019 , primarily due to the full year impact of the issuance of the $2.5 billion of senior notes that occurred in fiscal year 2019 and issuance of the $2.0 billion senior notes in fiscal year 2020. The increase in interest expense in the year ended June 30, 2019 , compared to the year ended June 24, 2018 , was also due to the issuance of the $2.5 billion of senior notes in fiscal year 2019, offset by conversions of the 2041 Convertible Notes and the retirement of the 2018 Convertible Notes in May 2018. The gains on deferred compensation plan related assets in the years presented were driven by an improvement in the fair market value of the underlying funds. The loss on impairment of investments in the year ended June 24, 2018 was the result of a decision to sell selected investments held in foreign jurisdictions in connection with the Company’s cash repatriation strategy following the December 2017 U.S. tax reform. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income (loss) before income taxes were as follows: Year Ended June 28, June 30, June 24, (in thousands) United States $ 44,739 $ (59,876 ) $ 128,190 Foreign 2,530,239 2,506,447 3,023,599 $ 2,574,978 $ 2,446,571 $ 3,151,789 Significant components of the provision (benefit) for income taxes attributable to income before income taxes were as follows: Year Ended June 28, June 30, June 24, (in thousands) Federal: Current $ 216,513 $ 143,845 $ 630,148 Deferred (18,458 ) (10,722 ) 12,871 198,055 133,123 643,019 State: Current 4,724 5,994 5,348 Deferred 6,524 4,944 (3,273 ) 11,248 10,938 2,075 Foreign: Current 119,766 110,283 132,566 Deferred (5,844 ) 797 (6,552 ) 113,922 111,080 126,014 Total provision for income taxes $ 323,225 $ 255,141 $ 771,108 Deferred income taxes reflect the net tax effect of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. Significant components of the Company’s net deferred tax assets and liabilities were as follows: June 28, June 30, (in thousands) Deferred tax assets: Tax carryforwards $ 249,874 $ 231,390 Allowances and reserves 119,974 97,671 Equity-based compensation 7,167 14,661 Inventory valuation differences 26,069 18,516 Prepaid cost sharing — 74,139 Outside basis differences of foreign subsidiaries 105,159 16,260 Operating lease liabilities 40,157 — Other 26,361 17,972 Gross deferred tax assets 574,761 470,609 Valuation allowance (244,973 ) (226,928 ) Net deferred tax assets 329,788 243,681 Deferred tax liabilities: Intangible assets (6,442 ) (9,883 ) Convertible debt (24,530 ) (46,993 ) Capital assets (105,508 ) (83,298 ) Amortization of goodwill (12,256 ) (11,299 ) Right-of-use assets (40,157 ) — Other (7,509 ) (8,752 ) Gross deferred tax liabilities (196,402 ) (160,225 ) Net deferred tax assets $ 133,386 $ 83,456 The change in the gross deferred tax assets, gross deferred tax liabilities, and valuation allowance between fiscal year 2020 and 2019 is primarily due to increases in outside basis differences of foreign subsidiaries, tax credits, operating lease liabilities and right-of-use assets, and decreases in prepaid cost sharing. The Company previously made an accounting policy election to record deferred taxes related to Global Intangible Low-Taxed Income (“GILTI”). Realization of the Company’s net deferred tax assets is based upon the weighting of available evidence, including such factors as the recent earnings history and expected future taxable income. The Company believes it is more likely than not that such deferred tax assets will be realized with the exception of $245.0 million related to California deferred tax assets. At June 28, 2020, the Company continued to record a valuation allowance to offset the entire California deferred tax asset balance due to the single sales factor apportionment resulting in lower taxable income in California. At June 28, 2020 , the Company had federal net operating loss carryforwards of $29.1 million . If not utilized, these losses will begin to expire in fiscal year 2021 , and are subject to limitation on their utilization. At June 28, 2020 , the Company had state net operating loss carryforwards of $91.4 million . If not utilized, these losses will begin to expire in fiscal year 2021 and are subject to limitation on their utilization. At June 28, 2020 , the Company had state tax credit carryforwards of $360.0 million . Substantially all of these credits can be carried forward indefinitely. A reconciliation of income tax expense provided at the federal statutory rate ( 21% in fiscal year 2020 and fiscal year 2019 , and 28.27% in fiscal year 2018) to actual income tax expense is as follows: Year Ended June 28, June 30, June 24, (in thousands) Income tax expense computed at federal statutory rate $ 540,745 $ 513,780 $ 891,011 State income taxes, net of federal tax benefit (28,046 ) (17,565 ) (50,585 ) Foreign income taxed at different rates (146,023 ) (260,344 ) (939,808 ) Settlements and reductions in uncertain tax positions (12,854 ) (31,291 ) (33,367 ) Tax credits (88,762 ) (71,779 ) (69,301 ) State valuation allowance, net of federal tax benefit 30,923 26,742 57,302 Equity-based compensation (23,248 ) (7,566 ) (35,875 ) Other permanent differences and miscellaneous items 50,490 39,251 43,214 U.S. tax reform impacts — 63,913 908,517 $ 323,225 $ 255,141 $ 771,108 In November 2019, the Ninth Circuit rejected the en banc appeal petitioned by Altera in July 2019. In that quarter, the Company evaluated the impact of the decision and viewed the denial as an indication that Altera’s position of excluding stock-based compensation expense in an inter-company cost-sharing arrangement was unlikely to be sustained upon further litigation. As a result, the Company reversed $74.5 million of net tax assets associated with stock-based compensation benefits related to previous years in the Condensed Consolidated Financial Statements in the three months ended December 29, 2019 and the Company no longer reflected a net tax benefit within its financial statements related to excluding stock-based compensation from its inter-company cost-sharing arrangement. In February 2020, Altera petitioned the SCOTUS to hear their case. In June 2020, the SCOTUS denied the petition. Earnings of the Company’s foreign subsidiaries included in consolidated retained earnings that are indefinitely reinvested in foreign operations aggregated to approximately $539.3 million at June 28, 2020 . If these earnings were remitted to the United States, they would be subject to foreign withholding taxes of approximately $86.4 million at current statutory rates. As of June 28, 2020 , the total gross uncertain tax positions were $476.7 million , compared to $420.8 million as of June 30, 2019 , and $305.4 million as of June 24, 2018 . During fiscal year 2020 , gross uncertain tax positions increased by $55.9 million . The amount of uncertain tax positions that, if recognized, would impact the effective tax rate was $423.8 million , $376.0 million , and $268.3 million , as of June 28, 2020 , June 30, 2019 , and June 24, 2018 , respectively. The aggregate changes in the balance of gross uncertain tax positions were as follows: (in thousands) Balance as of June 25, 2017 $ 339,447 Settlements and effective settlements with tax authorities (693 ) Lapse of statute of limitations (88,837 ) Increases in balances related to tax positions taken during prior periods 2,044 Decreases in balances related to tax positions taken during prior periods (1,320 ) Increases in balances related to tax positions taken during current period 54,772 Balance as of June 24, 2018 305,413 Settlements and effective settlements with tax authorities (3,705 ) Lapse of statute of limitations (28,176 ) Increases in balances related to tax positions taken during prior periods 78,927 Decreases in balances related to tax positions taken during prior periods (1,577 ) Increases in balances related to tax positions taken during current period 69,890 Balance as of June 30, 2019 420,772 Settlements and effective settlements with tax authorities (1,836 ) Lapse of statute of limitations (8,026 ) Increases in balances related to tax positions taken during prior periods 3,206 Decreases in balances related to tax positions taken during prior periods (3,989 ) Increases in balances related to tax positions taken during current period 66,568 Balance as of June 28, 2020 $ 476,695 The Company recognizes interest expense and penalties related to the above uncertain tax positions within income tax expense. The Company had accrued $40.2 million , $19.1 million , and $13.0 million cumulatively for gross interest and penalties as of June 28, 2020 , June 30, 2019 , and June 24, 2018 , respectively. The Company is subject to audits by state and foreign tax authorities. The Company is unable to make a reasonable estimate as to when cash settlements, if any, with the relevant taxing authorities will occur. The Company files U.S. federal, U.S. state, and foreign income tax returns. As of June 28, 2020 , tax years 2004-2020 remain subject to examination in the jurisdictions where the Company operates. The Internal Revenue Service (“IRS”) is examining the Company’s U.S. federal income tax return for the fiscal year ended June 24, 2018. As of June 28, 2020, no significant adjustments have been proposed by the IRS. The Company is unable to make a reasonable estimate as to when cash settlements, if any, with the IRS will occur. 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 uncertain tax positions as a result of tax examinations or lapses of statute of limitations. The change in uncertain tax positions as a result of lapses of statute of limitations may range up to $17.5 million . |
Net Income per Share
Net Income per Share | 12 Months Ended |
Jun. 28, 2020 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per Share Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the treasury stock method, for dilutive stock options, restricted stock units, and convertible notes. The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share. Year Ended June 28, June 30, June 24, (in thousands, except per share data) Numerator: Net income $ 2,251,753 $ 2,191,430 $ 2,380,681 Denominator: Basic average shares outstanding 144,814 152,478 161,643 Effect of potential dilutive securities: Employee stock plans 1,236 1,323 2,312 Convertible notes 3,040 5,610 12,258 (1) Warrants — 504 4,569 Diluted average shares outstanding 149,090 159,915 180,782 Net income per share - basic $ 15.55 $ 14.37 $ 14.73 Net income per share - diluted $ 15.10 $ 13.70 $ 13.17 (1) Diluted shares outstanding do not include any effect resulting from note hedges associated with the Company’s 2018 Notes as their impact would have been anti-dilutive. For purposes of computing diluted net income per share, weighted-average common shares do not include potentially dilutive securities that are anti-dilutive under the treasury stock method. The following potentially dilutive securities were excluded: Year Ended June 28, June 30, June 24, (in thousands) Options and RSUs 206 578 34 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Jun. 28, 2020 | |
Fair Value Disclosures [Abstract] | |
Financial Instruments | Financial Instruments Fair Value The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value. The level of an asset or liability in the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities with sufficient volume and frequency of transactions. Level 2: Valuations based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or model-derived valuations techniques for which all significant inputs are observable in the market or can be corroborated by observable market data for substantially the full term of the assets or liabilities. Level 3: Valuations based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities and based on non-binding, broker-provided price quotes and may not have been corroborated by observable market data. The Company’s primary financial instruments include its cash, cash equivalents, investments, restricted cash and investments, long-term investments, accounts receivable, accounts payable, long-term debt and 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 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 14 - Long Term Debt and Other Borrowings for additional information regarding the fair value of the Company’s senior notes and convertible senior notes. Investments The following table sets forth the Company’s cash, cash equivalents, investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of June 28, 2020 , and June 30, 2019 : June 28, 2020 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 977,862 $ — $ — $ 977,862 $ 973,978 $ — $ 3,884 $ — Time deposit 2,244,655 — — 2,244,655 1,994,628 — 250,027 — Level 1: Money market funds 1,709,350 — — 1,709,350 1,709,350 — — — U.S. Treasury and agencies 552,088 373 (9 ) 552,452 76,992 475,460 — — Mutual funds 68,784 4,571 (928 ) 72,427 — — — 72,427 Level 1 total 2,330,222 4,944 (937 ) 2,334,229 1,786,342 475,460 — 72,427 Level 2: Government-sponsored enterprises 31,442 12 — 31,454 25,999 5,455 — — Foreign government bonds 10,693 28 (5 ) 10,716 2,540 8,176 — — Corporate notes and bonds 1,405,615 5,344 (302 ) 1,410,657 131,685 1,278,972 — — Mortgage backed securities - residential 3,142 71 — 3,213 — 3,213 — — Mortgage backed securities - commercial 23,660 144 — 23,804 — 23,804 — — Level 2 total 1,474,552 5,599 (307 ) 1,479,844 160,224 1,319,620 — — Total $ 7,027,291 $ 10,543 $ (1,244 ) $ 7,036,590 $ 4,915,172 $ 1,795,080 $ 253,911 $ 72,427 June 30, 2019 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 467,460 $ — $ — $ 467,460 $ 462,310 $ — $ 5,150 $ — Time deposit 1,563,686 — — 1,563,686 1,313,659 — 250,027 — Level 1: Money market funds 1,644,659 — — 1,644,659 1,644,659 — — — U.S. Treasury and agencies 465,655 283 (24 ) 465,914 86,981 378,933 — — Mutual funds 76,961 1,063 (283 ) 77,741 — — — 77,741 Level 1 total 2,187,275 1,346 (307 ) 2,188,314 1,731,640 378,933 — 77,741 Level 2: Government-sponsored enterprises 16,005 5 (41 ) 15,969 — 15,969 — — Foreign government bonds 24,408 35 — 24,443 — 24,443 — — Corporate notes and bonds 1,466,167 2,310 (99 ) 1,468,378 150,610 1,317,768 — — Mortgage backed securities - residential 6,148 — (4 ) 6,144 — 6,144 — — Mortgage backed securities - commercial 29,587 140 — 29,727 — 29,727 — — Level 2 total 1,542,315 2,490 (144 ) 1,544,661 150,610 1,394,051 — — Total $ 5,760,736 $ 3,836 $ (451 ) $ 5,764,121 $ 3,658,219 $ 1,772,984 $ 255,177 $ 77,741 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 considers factors such as the Company’s intent to sell the security and whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. During the fiscal year 2018, the Company recorded a $42.5 million other-than-temporary impairment charge on a portion of its available for sale investments as a result of a decision to sell selected investments held in foreign jurisdictions in conjunction with our cash repatriation strategy following the U.S. tax reform legislation. The Company did not recognize any losses on investments due to other-than-temporary impairments in fiscal year 2020 or 2019 . Gross realized gains/(losses) from sales of investments were insignificant in the fiscal years 2020 , 2019 , and 2018 . The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions: June 28, 2020 Unrealized Losses Unrealized Losses Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) U.S. Treasury and agencies $ 189,437 $ (9 ) $ — $ — $ 189,437 $ (9 ) Mutual funds 2,623 (289 ) 5,011 (639 ) 7,634 (928 ) Foreign government bonds 9,056 (5 ) — — 9,056 (5 ) Corporate notes and bonds 332,924 (302 ) — — 332,924 (302 ) $ 534,040 $ (605 ) $ 5,011 $ (639 ) $ 539,051 $ (1,244 ) The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities as of June 28, 2020 , are as follows: Cost Estimated (in thousands) Due in one year or less $ 5,527,654 $ 5,529,241 Due after one year through five years 433,973 437,872 Due in more than five years 19,018 19,188 $ 5,980,645 $ 5,986,301 The Company has the ability, if necessary, to liquidate its investments in order to meet the Company’s liquidity needs in the next 1 2 months. Accordingly, those investments with contractual maturities greater than 1 2 months from the date of purchase nonetheless are classified as short-term on the accompanying Consolidated Balance Sheets. Derivative Instruments and Hedging The Company carries derivative financial instruments (“derivatives”) on its Consolidated Balance Sheets at their fair values. The Company enters into foreign currency forward contracts and foreign currency options with financial institutions with the primary objective of reducing volatility of earnings and cash flows related to foreign currency exchange rate fluctuations. In addition, the Company enters into interest rate swap arrangements to manage interest rate risk. The counterparties to these derivatives are large, global financial institutions that the Company believes are creditworthy, and therefore, it does not consider the risk of counterparty nonperformance to be material. Cash Flow Hedges The Company’s financial position is routinely subjected to market risk associated with foreign currency exchange rate fluctuations on non-U.S. dollar transactions or cash flows, primarily from Japanese yen-denominated revenues and euro-denominated and Korean won-denominated expenses. The Company’s policy is to mitigate the foreign exchange risk arising from the fluctuations in the value of these non-U.S. dollar denominated transactions or cash flows through a foreign currency cash flow hedging program, using forward contracts and foreign currency options that generally expire within 12 months and no later than 24 months . These hedge contracts are designated as cash flow hedges and are carried on the Company’s balance sheet at fair value with the effective portion of the contracts’ gains or losses included in accumulated other comprehensive income (loss) and subsequently recognized in revenue/expense in the same period the hedged items are recognized. In addition, the Company has entered into interest rate swap agreements to hedge against the variability of cash flows due to changes in certain benchmark interest rates on fixed rate debt. These instruments are designated as cash flow hedges at inception and are settled in conjunction with the issuance of debt. The effective portion of the contracts’ gains or losses is included in accumulated other comprehensive income (loss) and is amortized into income as the hedged item impacts earnings. During the year ended June 28, 2020 , the Company entered into and settled a series of these interest rate swap arrangements with a notional value of $400 million . During the year ended June 28, 2020 , the company recognized a net loss of $31.5 million of accumulated other comprehensive income, net of tax, related to these interest rate swap agreements. As of June 28, 2020 , $31.1 million of losses related to these interest rate swap arrangements remain in accumulated other comprehensive income, which it expects to reclassify from other comprehensive income into earnings over the next 10.0 years . At inception and at each quarter-end, hedges are tested prospectively and retrospectively for effectiveness using regression analysis. Changes in the fair value of foreign exchange contracts due to changes in time value are included in the assessment of effectiveness. To qualify for hedge accounting, the hedge relationship must meet criteria relating to both the derivative instrument and the hedged item. These criteria include identification of the hedging instrument, the hedged item, the nature of the risk being hedged, and how the hedging instrument’s effectiveness in offsetting the exposure to changes in the hedged item’s fair value or cash flows will be measured. There were no material gains or losses during the fiscal years ended June 28, 2020 , June 30, 2019 , or June 24, 2018 associated with forecasted transactions that failed to occur. There were no material gains or losses during the fiscal years ended June 30, 2019 , or June 24, 2018 associated with ineffectiveness. To receive hedge accounting treatment, all hedging relationships are formally documented at the inception of the hedge, and the hedges must be tested to demonstrate an expectation of providing highly effective offsetting changes to future cash flows on hedged transactions. When derivative instruments are designated and qualify as effective cash flow hedges, the Company recognizes effective changes in the fair value of the hedging instrument within accumulated other comprehensive income (loss) until the hedged exposure is realized. Consequently, the Company’s results of operations are not subject to fluctuation as a result of changes in the fair value of the derivative instruments. If hedges are not highly effective or if the Company does not believe that the underlying hedged forecasted transactions will occur, the Company may not be able to account for its derivative instruments as cash flow hedges. If this were to occur, future changes in the fair values of the Company’s derivative instruments would be recognized in earnings. Additionally, related amounts previously recorded in other comprehensive income would be reclassified to income immediately. As of June 28, 2020 , the Company had a net gain of $0.3 million accumulated in other comprehensive income, net of tax, related to foreign exchange cash flow hedges which it expects to reclassify from other comprehensive income into earnings over the next 12 months. Additionally, as of June 28, 2020 , the Company had a net loss of $2.0 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 4.7 years . Fair Value Hedges The Company had interest rate contracts whereby the Company received fixed rates and paid variable rates based on certain benchmark interest rates, resulting in a net increase or decrease to interest expense, a component of other expense, net in our Consolidated Statement of Operations. These interest rate contracts were designated as fair value hedges and hedged against changes in the fair value of our debt portfolio. The Company concluded that these interest rate contracts met the criteria necessary to qualify for the short-cut method of hedge accounting, and as such, an assumption was made that the change in the fair value of the hedged debt, due to changes in the benchmark rate, exactly offset the change in the fair value of the interest rate swap. Therefore, the derivative was considered to be effective at achieving offsetting changes in the fair value of the hedged liability, and no ineffectiveness was recognized. During the year ended June 28, 2020 , the Company terminated and consequently discontinued the hedging relationship of these interest rate contracts, refer to Note 14 - Long-Term Debt and Other borrowings for additional information regarding the accumulated fair value adjustment and the related amortization. Balance Sheet Hedges The Company also enters into foreign currency forward contracts to hedge fluctuations associated with foreign currency denominated monetary assets and liabilities, primarily cash, third-party accounts receivable, accounts payable, and intercompany receivables and payables. These forward contracts are not designated for hedge accounting treatment. Therefore, the change in fair value of these derivatives is recorded as a component of other income (expense) and offsets the change in fair value of the foreign currency denominated assets and liabilities, which are also recorded in other income (expense). As of June 28, 2020 , the Company had the following outstanding foreign currency contracts that were entered into under its cash flow and balance sheet hedge programs: Notional Value Derivatives Designated as Derivatives Not Designated as (in thousands) Foreign currency forward contracts Buy Contracts Sell Contracts Buy Contracts Sell Contracts Japanese yen $ — $ 299,450 $ 22,475 $ — Euro 54,512 — 36,113 — Korean won 20,492 — — 50,715 Taiwan dollar — — 47,612 — Chinese renminbi — — 35,071 — Swiss franc — — 12,672 — British pound sterling — — 11,191 — Singapore dollar — — 10,062 — Indian rupee — — 7,772 — Malaysian ringgit — — 5,612 — $ 75,004 $ 299,450 $ 188,580 $ 50,715 The fair value of derivative instruments in the Company’s Consolidated Balance Sheet as of June 28, 2020 , and June 30, 2019 , were as follows: June 28, 2020 June 30, 2019 Fair Value of Derivative Instruments (Level 2) Fair Value of Derivative Instruments (Level 2) Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Balance Fair Balance Fair Balance Fair Balance Fair (in thousands) Derivatives designated as hedging instruments: Foreign exchange contracts Prepaid $ 1,862 Accrued expenses and other current liabilities $ 1,405 Prepaid $ 119 Accrued expenses and other current liabilities $ 2,756 Interest rate contracts, short-term — — — Accrued expenses and other current liabilities 5,149 Interest rate contracts, long-term — — Other assets 1,537 — Derivatives not designated as hedging instruments: Foreign exchange contracts Prepaid 155 Accrued expenses and other current liabilities 70 Prepaid 1,249 Accrued expenses and other current liabilities 748 Total derivatives $ 2,017 $ 1,475 $ 2,905 $ 8,653 Under the master netting agreements with the respective counterparties to the Company’s derivative contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. However, the Company has elected to present the derivative assets and derivative liabilities on a gross basis on its balance sheet. As of June 28, 2020 , 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 $0.9 million , resulting in a net derivative asset of $1.1 million and net derivative liability of $0.6 million . As of June 30, 2019 , the potential effect of rights of offset associated with the above foreign exchange contracts would be an offset to both assets and liabilities by $2.4 million , resulting in a net derivative asset of $0.5 million and a net derivative liability of $6.2 million . The Company is not required to pledge, nor is the Company entitled to receive, cash collateral for these derivative transactions. The effect of derivative instruments designated as cash flow hedges on the Company’s Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”), was as follows: Year Ended June 28, 2020 Year Ended June 30, 2019 Location of Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Reclassified Derivatives in Cash Flow Hedging Relationships (in thousands) Foreign exchange contracts Revenue $ 4,095 $ 2,418 $ 8,143 $ 10,821 Foreign exchange contracts Cost of goods sold (2,104 ) (3,101 ) (3,801 ) (5,949 ) Foreign exchange contracts SG&A (1,158 ) (1,501 ) (1,618 ) (2,321 ) Interest rate contracts Other expense, net (40,610 ) (700 ) — (134 ) $ (39,777 ) $ (2,884 ) $ 2,724 $ 2,417 The effect of derivative instruments not designated as cash flow hedges on the Company’s Consolidated Statement of Operations was as follows: Year Ended June 28, 2020 June 30, 2019 Derivatives Not Designated as Hedging Instruments: Location of (Loss) Gain Loss Gain (in thousands) Foreign exchange contracts Other income $ (5,971 ) $ 4,124 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: Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Year ended June 28, 2020 Revenue Cost of Goods Sold Selling, General and Administrative Other Income (Expense) (in thousands) Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded: $ 10,044,736 $ 5,436,043 $ 682,479 $ (98,824 ) 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 — — — (12,882 ) Derivatives designated as hedging instruments — — — 12,882 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 2,418 (3,101 ) (1,501 ) — Interest rate contracts: Amount of gain (loss) reclassified from accumulated other comprehensive income into income — — — (700 ) Concentrations of Credit Risk Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, investments, restricted cash and investments, trade accounts receivable, and derivative financial instruments used in hedging activities. Cash is placed on deposit at large, global financial institutions. Such deposits may be in excess of insured limits. Management believes that the financial institutions that hold the Company’s cash are creditworthy and, accordingly, minimal credit risk exists with respect to these balances. The Company’s overall portfolio of available-for-sale securities must maintain an average minimum rating of “AA-” or “Aa3” as rated by Standard and Poor’s, Fitch Ratings, or Moody’s Investor Services. To ensure diversification and minimize concentration, the Company’s policy limits the amount of credit exposure with any one financial institution or commercial issuer. The Company is exposed to credit losses in the event of nonperformance by counterparties on foreign currency and interest rate hedge contracts that are used to mitigate the effect of exchange rate and interest rate fluctuations and on contracts related to structured share repurchase arrangements. These counterparties are large, global financial institutions and, to date, no such counterparty has failed to meet its financial obligations to the Company. Credit risk evaluations, including trade references, bank references, and Dun & Bradstreet ratings, are performed on all new customers, and the Company monitors its customers’ financial condition and payment performance. In general, the Company does not require collateral on sales. As of June 28, 2020 , two customers accounted for approximately 21% and 12% , of accounts receivable, respectively. As of June 30, 2019 , four customers accounted for approximately 18% , 15% , 11% , and 10% of accounts receivable, respectively. No other customers accounted for more than 10% of accounts receivable, respectively. The Company’s balance and transactional activity for its allowance for doubtful accounts is not material as of and for the twelve months ended June 28, 2020 , June 30, 2019 , and June 24, 2018 |
Inventories
Inventories | 12 Months Ended |
Jun. 28, 2020 | |
Inventory Disclosure [Abstract] | |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out method) or net realizable value. System shipments to customers in Japan, for which title does not transfer until customer acceptance, are classified as finished goods inventory and carried at cost until title transfers. Inventories consist of the following: June 28, June 30, (in thousands) Raw materials $ 1,161,961 $ 994,738 Work-in-process 251,199 174,219 Finished goods 486,864 371,183 $ 1,900,024 $ 1,540,140 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 28, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net, is presented in the table below. In connection with the adoption of ASC 842, the Company has excluded $18.4 million of finance right-of-use assets recorded within property and equipment, net from the table below. See Note 15 - Leases for additional information regarding these finance lease right-of-use assets. June 28, June 30, (in thousands) Manufacturing and engineering equipment $ 1,154,668 $ 1,039,454 Buildings and improvements 660,865 664,061 Computer and computer-related equipment 178,193 190,974 Office equipment, furniture and fixtures 83,386 82,115 Land 58,805 46,155 2,135,917 2,022,759 Less: accumulated depreciation and amortization (1,082,827 ) (963,682 ) $ 1,053,090 $ 1,059,077 Depreciation expense, excluding amortization of finance lease right of use assets during fiscal year 2020 was $198.8 million . During fiscal years 2019 and 2018 , depreciation expense, including amortization of capital leases, was $182.1 million , and $165.2 million , respectively. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The balance of goodwill was $1.5 billion as of June 28, 2020 and June 30, 2019 , respectively. As of June 28, 2020 and June 30, 2019 , $61.1 million of the goodwill balance is tax deductible, and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law. No goodwill impairments were recognized in fiscal years 2020 , 2019 , or 2018 . Intangible Assets The following table provides details of the Company’s intangible assets, other than goodwill: June 28, 2020 June 30, 2019 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 630,137 $ (532,550 ) $ 97,587 $ 630,165 $ (483,204 ) $ 146,961 Existing technology 668,992 (654,382 ) 14,610 669,399 (647,837 ) 21,562 Patents and other intangible assets 98,342 (42,007 ) 56,335 126,235 (77,808 ) 48,427 Total intangible assets $ 1,397,471 $ (1,228,939 ) $ 168,532 $ 1,425,799 $ (1,208,849 ) $ 216,950 The Company recognized $66.2 million , $127.3 million , and $161.2 million in intangible asset amortization expense during fiscal years 2020 , 2019 , and 2018 , respectively. No intangible asset impairments were recognized in fiscal years 2020 , 2019 , or 2018 . The estimated future amortization expense of intangible assets as of June 28, 2020 , is reflected in the table below. The table excludes $12.3 million of capitalized costs for intangible assets that have not yet been placed into service. Fiscal Year Amount (in thousands) 2021 $ 65,949 2022 61,687 2023 16,156 2024 8,561 2025 3,868 Thereafter 16 $ 156,237 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jun. 28, 2020 | |
Payables and Accruals [Abstract] | |
Accrued Expenses and Other Current Liabilities | Accrued Expenses and Other Current Liabilities Accrued expenses and other current liabilities consist of the following: June 28, June 30, (in thousands) Accrued compensation $ 402,401 $ 336,090 Warranty reserves 117,839 127,932 Income and other taxes payable 215,652 49,926 Dividend payable 167,129 158,868 Other 369,634 273,825 $ 1,272,655 $ 946,641 |
Long Term Debt and Other Borrow
Long Term Debt and Other Borrowings | 12 Months Ended |
Jun. 28, 2020 | |
Debt Disclosure [Abstract] | |
Long Term Debt and Other Borrowings | Long Term Debt and Other Borrowings As of June 28, 2020 , and June 30, 2019 , the Company’s outstanding debt consisted of the following: June 28, 2020 June 30, 2019 Amount (in thousands) Effective Interest Rate Amount (in thousands) Effective Interest Rate Fixed-rate 2.75% Senior Notes Due March 15, 2020 (“2020 Notes”) $ — — $ 500,000 2.88 % Fixed-rate 2.80% Senior Notes Due June 15, 2021 (“2021 Notes”) 800,000 2.95 % 800,000 2.95 % Fixed-rate 3.80% Senior Notes Due March 15, 2025 (“2025 Notes”) 500,000 3.87 % 500,000 3.87 % Fixed-rate 3.75% Senior Notes Due March 15, 2026 ("2026 Notes") 750,000 3.86 % 750,000 3.86 % Fixed-rate 4.00% Senior Notes Due March 15, 2029 ("2029 Notes") 1,000,000 4.09 % 1,000,000 4.09 % Fixed-rate 1.90% Senior Note Due June 15, 2030 ("2030 Notes") 750,000 2.01 % — — Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (“2041 Notes”) 48,460 (1) 4.28 % 212,349 (1) 4.28 % Fixed-rate 4.875% Senior Notes Due March 15, 2049 ("2049 Notes") 750,000 4.93 % 750,000 4.93 % Fixed-rate 2.875% Senior Note Due June 15, 2050 ("2050 Notes") 750,000 2.93 % — — Fixed-rate 3.125% Senior Note Due June 15, 2060 ("2060 Notes") 500,000 3.18 % — — Total debt outstanding, at par 5,848,460 4,512,349 Unamortized discount (53,086 ) (73,191 ) Fair value adjustment - interest rate contracts 8,405 (2) (3,612 ) Unamortized bond issuance costs (8,301 ) (5,535 ) Total debt outstanding, at carrying value $ 5,795,478 $ 4,430,011 Reported as: Current portion of long-term debt $ 836,107 $ 662,308 Long-term debt 4,959,371 3,767,703 Total debt outstanding, at carrying value $ 5,795,478 $ 4,430,011 (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) This amount represents a cumulative fair market gain for discontinued hedging relationships, net of an immaterial amount of amortization for the year ended June 28, 2020 . The Company’s contractual cash obligations relating to its outstanding debt as of June 28, 2020 , were as follows: Payments Due by Fiscal Year: (in thousands) 2021 (1) $ 848,460 2022 — 2023 — 2024 — 2025 500,000 Thereafter 4,500,000 Total $ 5,848,460 (1) As noted above, the conversion period for the 2041 Notes is open as of June 28, 2020 . As there is the potential for conversion at the option of the holder, the principal balance of the 2041 Notes has been included in the one-year payment period. Convertible Senior Notes In June 2012, with the acquisition of Novellus, the Company assumed $700 million in aggregate principal amount of 2.625% Convertible Senior Notes due May 15, 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 by the Company 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 fiscal year ended June 28, 2020 , was $163.9 million . During the quarter ended June 28, 2020 and in the subsequent period through August 18, 2020 , the Company received notice of conversion for an additional $18.1 million principal value of 2041 Notes, which will settle in the quarter ending September 27, 2020. As a result of the cumulative conversions, as of June 28, 2020, $48.5 million of the 2041 notes remain outstanding. Selected additional information regarding the 2041 Notes outstanding as of June 28, 2020 , and June 30, 2019 , is as follows: 2041 Notes June 28, June 30, (in thousands, except years, percentages, conversion rate, and conversion price) Carrying amount of permanent equity component, net of tax $ 161,467 $ 160,604 Carrying amount of temporary equity component, net of tax $ 10,995 $ 49,439 Remaining amortization period (years) 20.9 21.9 Fair Value of Notes (Level 2) $ 462,857 Conversion rate (shares of common stock per $1,000 principal amount of notes) 31.5206 Conversion price (per share of common stock) $ 31.73 If-converted value in excess of par value $ 413,636 Estimated share dilution using average quarterly stock price of $270.53 per share 1,348 Senior Notes On May 5, 2020, the company completed a public offering of $750 million aggregate principal amount of the Company’s Senior Notes due June 15, 2030 (the “2030 Notes”), $750 million aggregate principal amount of the Company’s Senior Notes due June 15, 2050 (the “2050 Notes”), and $500 million aggregate principal amount of the Company’s Senior Notes due June 15, 2060 (the “2060 Notes”). The Company will pay interest at an annual rate of 1.90% , 2.875% , and 3.125% , on the 2030, 2050, and 2060 Notes, respectively, on a semi-annual basis on June 15 and December 15 of each year beginning December 15, 2020. On March 4, 2019, the company completed a public offering of $750 million aggregate principal amount of the Company’s Senior Notes due March 15, 2026 (the “2026 Notes”), $1.0 billion aggregate principal amount of the Company’s Senior Notes due March 15, 2029 (the “2029 Notes”), and $750 million aggregate principal amount of the Company’s Senior Notes due March 15, 2049 (the “2049 Notes”). The Company pays interest at an annual rate of 3.75% , 4.00% , and 4.875% , on the 2026, 2029, and 2049 Notes, respectively, on a semi-annual basis on March 15 and September 15 of each year. On March 12, 2015, the Company completed a public offering of $500 million aggregate principal amount of the Company’s Senior Notes due March 15, 2020 (the “2020 Notes”) and $500 million aggregate principal amount of the Company’s Senior Notes due March 15, 2025 (the “2025 Notes”). The Company pays interest at an annual rate of 3.80% on the 2025 Notes 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 received a fixed rate and paid a variable rate based on a certain benchmark interest rate. During the year ended June 28, 2020, the Company terminated and consequently discontinued the hedging relationship of these interest rate contracts. Refer to Note 9 - Financial Instruments for additional information regarding these interest rate contracts. During the year ended June 28, 2020 , the Company settled the 2020 Notes at par upon their maturity. Prior to settlement, the Company paid interest at an annual rate of 2.75% on the 2020 Notes. 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”). 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, 2025, 2026, 2029, 2030, 2049, 2050, and 2060 Notes (collectively 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 to the Senior Notes and accrued and unpaid interest before May 15, 2021 for the 2021 Notes, before December 15, 2024 for the 2025 Notes, before January 15, 2026 for the 2026 Notes, before December 15, 2028 for the 2029 Notes, before March 15, 2030 for the 2030 Notes, before September 15, 2048 for the 2049 Notes, before December 15, 2049 for the 2050 Notes, and before December 15, 2059 for the 2060 Notes. The Company may redeem the Senior Notes at par, plus accrued and unpaid interest at any time on or after May 15, 2021 for the 2021 Notes, on or after December 24, 2024 for the 2025 Notes, on or after January 15, 2026 for the 2026 Notes, on or after December 15, 2028 for the 2029 Notes, on or after March 15, 2030 for the 2030 Notes, on or after September 15, 2048 for the 2049 Notes, on or after December 15, 2049 for the 2050 Notes, and on or after December 15, 2059 for the 2060 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 respective note, plus accrued and unpaid interest. Selected additional information regarding the Senior Notes outstanding as of June 28, 2020 , is as follows: Remaining Amortization period Fair Value of Notes (Level 2) (years) (in thousands) 2021 Notes 1.0 $ 815,560 2025 Notes 4.7 $ 565,985 2026 Notes 5.7 $ 859,560 2029 Notes 8.7 $ 1,185,430 2030 Notes 10.0 $ 763,793 2049 Notes 28.7 $ 1,045,035 2050 Notes 30.0 $ 773,603 2060 Notes 40.0 $ 527,825 Revolving Credit Facility On March 12, 2014, the Company established an unsecured Credit Agreement. This agreement was amended on November 10, 2015 (the “Amended and Restated Credit Agreement”), October 13, 2017 (the “2nd Amendment”), and February 25, 2019 (the “3rd Amendment”). Under the Amended and Restated Credit Agreement (as amended by the 2nd and 3rd Amendment), the Company has a revolving credit facility of $1.25 billion with a syndicate of lenders with an expansion option that will allow the Company, subject to certain requirements, to request an increase in the facility of up to an additional $600.0 million , for a potential total commitment of $1.85 billion . The facility matures on October 13, 2022 . Interest on amounts borrowed under the credit facility is, at the Company’s option, based on (1) a base rate, defined as the greatest of (a) prime rate, (b) Federal Funds rate plus 0.5% , or (c) one-month LIBOR plus 1.0% , plus a spread of 0.0% to 0.5% , or (2) LIBOR multiplied by the statutory rate, plus a spread of 0.9% to 1.5% , in each case as the applicable spread is determined based on the rating of the Company’s non-credit enhanced, senior unsecured long-term debt. Principal and any accrued and unpaid interest is due and payable upon maturity. Additionally, the Company will pay the lenders a quarterly commitment fee that varies based on the Company’s credit rating. The Amended and Restated Credit Agreement contains affirmative covenants, negative covenants, financial covenants, and events of default. As of June 28, 2020 , the Company had no borrowings outstanding under the credit facility and was in compliance with all financial covenants. Commercial Paper Program On November 13, 2017, the Company established a commercial paper program under which the Company may issue unsecured commercial paper notes on a private placement basis up to a maximum aggregate principal amount of $1.25 billion . The net proceeds from the CP Program will be used for general corporate purposes, including repurchases of the Company’s Common Stock from time to time under the Company’s stock repurchase program. Amounts available under the CP Program may be re-borrowed. The CP Program is backstopped by the Company’s Revolving Credit Arrangement. As of June 28, 2020 , the Company had no outstanding borrowings under the CP Program. 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, commercial paper, and the revolving credit facility during the fiscal years ended June 28, 2020 , June 30, 2019 , and June 24, 2018 . Year Ended June 28, June 30, June 24, (in thousands) Contractual interest coupon $ 169,483 $ 100,712 $ 77,091 Amortization of interest discount 4,280 3,937 12,225 Amortization of issuance costs 1,632 1,426 2,034 Effect of interest rate contracts, net 1,037 4,086 3 Total interest cost recognized $ 176,432 $ 110,161 $ 91,353 |
Leases
Leases | 12 Months Ended |
Jun. 28, 2020 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain office spaces, manufacturing and warehouse spaces, equipment, and vehicles. On July 1, 2019 the Company adopted ASC 842. Refer to Note 3 - Recent Accounting Pronouncements for additional information regarding the adoption. While the majority of the Company’s lease arrangements are operating leases, the Company has certain leases that qualify as finance leases. The components of lease expense were as follows for the year ended June 28, 2020 (in thousands): Financing lease cost: Amortization of right-of-use assets $ 3,613 Interest on lease liabilities 506 Total finance lease cost $ 4,119 Operating lease cost $ 46,101 Variable lease cost 91,851 Variable lease payments are expensed as incurred and are not included within the right of use asset and lease liability calculation. Variable lease payments primarily include costs associated with the Company’s third party logistics arrangements that contain one or more embedded leases. Variable lease costs will fluctuate based on factory output and material receipt volumes. Short-term rental expense, for agreements less than one year in duration, were immaterial for the twelve months ended June 28, 2020 . Supplemental cash flow information related to leases was as follows as of June 28, 2020 (in thousands): Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 50,223 Financing cash flows paid for principal portion of finance leases 3,539 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 108,816 Finance leases 3,019 Supplemental balance sheet information related to leases were as follows as of June 28, 2020 (in thousands): Operating leases Other assets $ 174,583 Accrued expenses and other current liabilities $ 49,480 Other long-term liabilities 123,889 Total operating lease liabilities $ 173,369 Finance Leases Property and Equipment, net $ 18,409 Current portion of long-term debt and lease liabilities $ 3,770 Long-term debt and lease liabilities 11,477 Total finance lease liabilities $ 15,247 June 28, 2020 Weighted-Average Remaining Lease Term Weighted-Average Discount Rate (in years) Operating leases 9.0 2.57 % Finance leases 4.1 2.79 % As of June 28, 2020 , the maturities of lease liabilities are as follows: Operating Leases Finance Leases (in thousands) 2021 $ 50,611 $ 4,170 2022 31,178 6,709 2023 22,446 1,541 2024 18,279 1,080 2025 14,761 617 Thereafter 49,660 2,304 Total lease payments $ 186,935 $ 16,421 Less imputed interest (13,566 ) (1,174 ) Total $ 173,369 $ 15,247 Selected Operating Leases and Related Guarantees The Company leases the majority of its administrative, R&D and manufacturing facilities, regional sales/service offices, and certain equipment under non-cancelable operating leases. Certain of the Company’s facility leases for buildings located at its Fremont, California headquarters; Tualatin, Oregon campus; and certain other facility leases provide the Company with options to extend the leases for additional periods or to purchase the facilities. Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation. The Company’s rental expense for facilities occupied during fiscal years 2019 , and 2018 was $28.1 million , and $23.5 million , respectively. The Company has operating leases regarding certain improved properties in Fremont and Livermore, California (the “California Operating Leases”). The Company is required to maintain cash collateral in an aggregate of approximately $250 million in separate interest-bearing accounts as security for the Company’s obligations. These amounts are recorded with other restricted cash and investments in the Company’s Consolidated Balance Sheet as of June 28, 2020 . During the term of the California Operating Leases and when the terms of the California Operating Leases expire, the property subject to those Operating Leases may be re-marketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate guarantee made by the Company under the California Operating Leases is generally no more than $220.4 million ; however, under certain default circumstances, the guarantee with regard to the California 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. |
Leases | Leases The Company leases certain office spaces, manufacturing and warehouse spaces, equipment, and vehicles. On July 1, 2019 the Company adopted ASC 842. Refer to Note 3 - Recent Accounting Pronouncements for additional information regarding the adoption. While the majority of the Company’s lease arrangements are operating leases, the Company has certain leases that qualify as finance leases. The components of lease expense were as follows for the year ended June 28, 2020 (in thousands): Financing lease cost: Amortization of right-of-use assets $ 3,613 Interest on lease liabilities 506 Total finance lease cost $ 4,119 Operating lease cost $ 46,101 Variable lease cost 91,851 Variable lease payments are expensed as incurred and are not included within the right of use asset and lease liability calculation. Variable lease payments primarily include costs associated with the Company’s third party logistics arrangements that contain one or more embedded leases. Variable lease costs will fluctuate based on factory output and material receipt volumes. Short-term rental expense, for agreements less than one year in duration, were immaterial for the twelve months ended June 28, 2020 . Supplemental cash flow information related to leases was as follows as of June 28, 2020 (in thousands): Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 50,223 Financing cash flows paid for principal portion of finance leases 3,539 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 108,816 Finance leases 3,019 Supplemental balance sheet information related to leases were as follows as of June 28, 2020 (in thousands): Operating leases Other assets $ 174,583 Accrued expenses and other current liabilities $ 49,480 Other long-term liabilities 123,889 Total operating lease liabilities $ 173,369 Finance Leases Property and Equipment, net $ 18,409 Current portion of long-term debt and lease liabilities $ 3,770 Long-term debt and lease liabilities 11,477 Total finance lease liabilities $ 15,247 June 28, 2020 Weighted-Average Remaining Lease Term Weighted-Average Discount Rate (in years) Operating leases 9.0 2.57 % Finance leases 4.1 2.79 % As of June 28, 2020 , the maturities of lease liabilities are as follows: Operating Leases Finance Leases (in thousands) 2021 $ 50,611 $ 4,170 2022 31,178 6,709 2023 22,446 1,541 2024 18,279 1,080 2025 14,761 617 Thereafter 49,660 2,304 Total lease payments $ 186,935 $ 16,421 Less imputed interest (13,566 ) (1,174 ) Total $ 173,369 $ 15,247 Selected Operating Leases and Related Guarantees The Company leases the majority of its administrative, R&D and manufacturing facilities, regional sales/service offices, and certain equipment under non-cancelable operating leases. Certain of the Company’s facility leases for buildings located at its Fremont, California headquarters; Tualatin, Oregon campus; and certain other facility leases provide the Company with options to extend the leases for additional periods or to purchase the facilities. Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation. The Company’s rental expense for facilities occupied during fiscal years 2019 , and 2018 was $28.1 million , and $23.5 million , respectively. The Company has operating leases regarding certain improved properties in Fremont and Livermore, California (the “California Operating Leases”). The Company is required to maintain cash collateral in an aggregate of approximately $250 million in separate interest-bearing accounts as security for the Company’s obligations. These amounts are recorded with other restricted cash and investments in the Company’s Consolidated Balance Sheet as of June 28, 2020 . During the term of the California Operating Leases and when the terms of the California Operating Leases expire, the property subject to those Operating Leases may be re-marketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate guarantee made by the Company under the California Operating Leases is generally no more than $220.4 million ; however, under certain default circumstances, the guarantee with regard to the California 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. |
Retirement and Deferred Compens
Retirement and Deferred Compensation Plans | 12 Months Ended |
Jun. 28, 2020 | |
Retirement Benefits [Abstract] | |
Retirement and Deferred Compensation Plans | Retirement and Deferred Compensation Plans Employee Savings and Retirement Plan The Company maintains a 401(k) retirement savings plan for its eligible employees in the United States. Each participant in the plan may elect to contribute from 1% to 75% of annual eligible earnings to the plan, subject to statutory limitations. The Company makes matching employee contributions in cash to the plan at the rate of 50% of the first 6% of earnings contributed. Employees participating in the 401(k) retirement savings plan are fully vested in the Company matching contributions, and investments are directed by participants. The Company made matching contributions of $23.6 million , $24.1 million , and $21.4 million , in fiscal years 2020 , 2019 , and 2018 , respectively. Deferred Compensation Arrangements The Company has an unfunded, non-qualified deferred compensation plan whereby certain executives may defer a portion of their compensation. Participants earn a return on their deferred compensation based on their allocation of their account balance among various mutual funds. The Company controls the investment of these funds, and the participants remain general creditors of the Company. Participants are able to elect the payment of benefits on a specified date at least three years after the opening of a deferral sub-account or upon retirement. Distributions are made in the form of lump sum or annual installments over a period of up to 20 years as elected by the participant. If no alternate election has been made, a lump sum payment will be made upon termination of a participant’s employment with the Company. As of June 28, 2020 , and June 30, 2019 , the liability of the Company to the plan participants was $220.0 million and $207.0 million , respectively, which was recorded in accrued expenses and other current liabilities and other long-term liabilities on the Consolidated Balance Sheets. As of June 28, 2020 , and June 30, 2019 , the Company had investments in the aggregate amount of $235.1 million and $228.9 million , respectively, which correlate to the deferred compensation obligations, which were recorded in other assets on the Consolidated Balance Sheets. Post-Retirement Healthcare Plan The Company maintains a post-retirement healthcare plan for certain executive and director retirees. Coverage continues through the duration of the lifetime of the retiree or the retiree’s spouse, whichever is longer. The benefit obligation was $41.0 million and $40.5 million as of June 28, 2020 , and June 30, 2019 , respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 28, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies The Company has certain obligations to make future payments under various contracts; some of these are recorded on its balance sheet and some are not. Obligations that are recorded on the Company’s balance sheet include the Company’s operating and finance lease obligations. Obligations that are not recorded on the Company’s balance sheet include contractual relationships for purchase obligations and certain guarantees. The Company’s commitments relating to off-balance sheet agreements are included in the tables below. These amounts exclude $439.5 million of liabilities related to uncertain tax positions because the Company is unable to reasonably estimate the ultimate amount or time of settlement. See Note 7 - Income Taxes for further discussion. Other Guarantees The Company has issued certain indemnifications to its lessors for taxes and general liability under some of its agreements. The Company has entered into insurance contracts that are intended to limit its exposure to such indemnifications. As of June 28, 2020 , the Company had not recorded any liability on its Consolidated Financial Statements in connection with these indemnifications, as it does not believe that it is probable that any material amounts will be paid under these guarantees. Generally, the Company indemnifies, under pre-determined conditions and limitations, its customers for infringement of third-party intellectual property rights by the Company’s products or services. The Company seeks to limit its liability for such indemnity to an amount not to exceed the sales price of the products or services subject to its indemnification obligations. The Company does not believe that it is probable that any material amounts will be paid under these guarantees. The Company provides guarantees and standby letters of credit to certain parties as required for certain transactions initiated during the ordinary course of business. As of June 28, 2020 , the maximum potential amount of future payments that the Company could be required to make under these arrangements and letters of credit was $58.6 million . 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. In addition, the Company has entered into indemnification agreements with its officers and directors, consistent with its Bylaws and Certificate of Incorporation; and under local law, the Company may be required to provide indemnification to 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. Purchase Obligations Purchase obligations consist of non-cancelable significant contractual obligations either on an annual basis or over multi-year periods. The contractual cash obligations and commitments table presented below contains the Company’s minimum obligations at June 28, 2020 , under these arrangements and others. For obligations with cancellation provisions, the amounts included in the following table were limited to the non-cancelable portion of the agreement terms or the minimum cancellation fee. Actual expenditures will vary based on the volume of transactions and length of contractual service provided. The Company’s commitments related to these agreements as of June 28, 2020 , were as follows: Payments Due by Fiscal Year: Purchase (in thousands) 2021 $ 541,524 2022 49,520 2023 49,520 2024 33,211 2025 33,212 Thereafter 958 Total $ 707,945 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. As of June 28, 2020 , warranty reserves totaling $11.4 million were recognized in other long-term liabilities, the remainder were included in accrued expenses and other current liabilities in the Company’s Consolidated Balance Sheets. Changes in the Company’s product warranty reserves were as follows: Year Ended June 28, June 30, (in thousands) Balance at beginning of period $ 127,932 $ 192,480 Warranties issued during the period 151,508 249,737 Settlements made during the period (131,177 ) (307,079 ) Changes in liability for pre-existing warranties (19,066 ) (7,206 ) Balance at end of period $ 129,197 $ 127,932 Legal Proceedings While the Company is not currently a party to any legal proceedings that it believes material, the Company is either a defendant or plaintiff in various actions that have arisen from time to time in the normal course of business, including intellectual property claims. The Company accrues for a liability when it is both probable that a liability has been incurred and the amount of the loss can be reasonably estimated. Significant judgment is required in both the determination of probability and the determination as to whether a loss is reasonably estimable. Based on current information, the Company does not believe that a material loss from known matters is probable and therefore has not recorded an accrual of any material amount for litigation or other contingencies related to existing legal proceedings. |
Stock Repurchase Program
Stock Repurchase Program | 12 Months Ended |
Jun. 28, 2020 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase Program In November 2018, the Board of Directors authorized the Company to repurchase up to an additional $5.0 billion of Common Stock. 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. This repurchase program has no termination date and may be suspended or discontinued at any time. Funding for this repurchase program may be through a combination of cash on hand, cash generation, and borrowings. As of June 28, 2020, the Company has purchased approximately $3.2 billion of shares under this authorization, $0.7 billion via open market trading and $2.5 billion utilizing accelerated share repurchase arrangements. Repurchases under the repurchase program were as follows during the periods indicated: Period Total Number Total Average (1) Amount Available (in thousands, except per share data) Available balance as of June 30, 2019 $ 3,033,500 Quarter ended September 29, 2019 383 $ 75,196 $ 196.34 $ 2,958,304 Quarter ended December 29, 2019 3,224 (2) $ 1,000,475 $ — $ 1,957,829 Quarter ended March 29, 2020 1,239 (2) $ 146,397 $ 274.37 $ 1,811,432 Quarter ended June 28, 2020 145 $ 38,005 $ 261.34 $ 1,773,427 (1) Average price paid per share excludes effect of accelerated share repurchases; see additional disclosure below regarding the Company’s accelerated share repurchase activity during the fiscal year. (2) Includes shares received at final settlement of accelerated share repurchase agreements; see additional disclosures below regarding the Company’s accelerated share repurchase activity during the fiscal year. In addition to the shares repurchased under the Board-authorized repurchase program shown above, the Company acquired 380 thousand shares at a total cost of $109.6 million during the 12 months ended June 28, 2020 , 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 On November 22, 2019, the Company entered into two separate accelerated share repurchase agreements (collectively, the "November 2019 ASR") with two financial institutions to repurchase a total of $1.0 billion of Common Stock. The Company took an initial delivery of approximately 2.9 million shares, which represented 75% of the prepayment amount divided by the Company’s closing stock price on November 22, 2019. The total number of shares received under the November 2019 ASR was based upon the average daily volume weighted average price of the Company’s Common Stock during the repurchase period, less an agreed upon discount. Final settlement of the November 2019 ASR occurred during March 2020, resulting in the receipt of approximately 705 thousand additional shares, which yielded a weighted-average share price of approximately $280.27 for the transaction period. On June 4, 2019, the Company entered into four separate accelerated share repurchase agreements (collectively, the "June 2019 ASR") with two financial institutions to repurchase a total of $750 million of Common Stock. The Company took an initial delivery of approximately 3.1 million shares, which represented 75% of the prepayment amount divided by the Company’s closing stock price on June 4, 2019. The total number of shares received under the June 2019 ASR will be based upon the average daily volume weighted average price of the Company’s Common Stock during the repurchase period, less an agreed upon discount. Final settlement of the agreements occurred during November 2019, resulting in the receipt of approximately 361 thousand additional shares, which yielded a weighted-average share price of approximately $215.60 for the transaction period. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Jun. 28, 2020 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The components of accumulated other comprehensive loss, net of tax at the end of June 28, 2020 , as well as the activity during the fiscal year ended June 28, 2020 , were as follows: Accumulated Accumulated Accumulated Accumulated Total (in thousands) Balance as of June 30, 2019 $ (39,370 ) $ (4,330 ) $ 2,146 $ (22,476 ) $ (64,030 ) Other comprehensive (loss) income before reclassifications (6,428 ) (30,603 ) 1,842 1,949 (33,240 ) Losses (gains) reclassified from accumulated other comprehensive income (loss) to net income (13 ) (1) 2,137 (2) 935 (1) — 3,059 Net current-period other comprehensive income (loss) (6,441 ) (28,466 ) 2,777 1,949 (30,181 ) Balance as of June 28, 2020 $ (45,811 ) $ (32,796 ) $ 4,923 $ (20,527 ) $ (94,211 ) (1) Amount of after-tax gain reclassified from accumulated other comprehensive income into net income located in other expense, net. (2) Amount of after-tax gain reclassified from accumulated other comprehensive income into net income located in revenue: $2.1 million gain; cost of goods sold: $2.6 million loss; selling, general, and administrative expenses: $1.1 million loss; and other income and expense: $0.5 million loss. |
Segment, Geographic Information
Segment, Geographic Information and Major Customers | 12 Months Ended |
Jun. 28, 2020 | |
Segment Reporting [Abstract] | |
Segment, Geographic Information and Major Customers | Segment, Geographic Information, and Major Customers The Company operates in one reportable business segment: manufacturing and servicing of wafer processing semiconductor manufacturing equipment. The Company’s material operating segments qualify for aggregation due to their customer base and similarities in economic characteristics, nature of products and services, and processes for procurement, manufacturing, and distribution. The Company operates in seven geographic regions: United States, China, Europe, Japan, Korea, Southeast Asia, and Taiwan. For geographical reporting, revenue is attributed to the geographic location in which the customers’ facilities are located, while long-lived assets are attributed to the geographic locations in which the assets are located. Revenues and long-lived assets by geographic region were as follows: Year Ended June 28, June 30, June 24, Revenue: (in thousands) China $ 3,083,916 $ 2,161,440 $ 1,784,436 Korea 2,391,257 2,205,348 3,832,798 Taiwan 1,906,223 1,596,261 1,397,978 Japan 954,743 1,969,869 1,882,799 United States 812,482 748,601 820,438 Southeast Asia 587,638 615,813 781,360 Europe 308,477 356,227 577,189 Total revenue $ 10,044,736 $ 9,653,559 $ 11,076,998 June 28, June 30, June 24, Long-lived assets: (in thousands) United States $ 930,970 $ 933,054 $ 784,469 Europe 74,103 72,928 73,336 Korea 40,318 28,200 24,312 Southeast Asia 8,643 5,542 3,715 China 6,261 6,844 5,466 Japan 5,793 5,750 3,327 Taiwan 5,411 6,759 7,922 $ 1,071,499 $ 1,059,077 $ 902,547 In fiscal year 2020 , four customers accounted for approximately 24% , 14% , 10% , and 10% of total revenues, respectively. In fiscal year 2019 , four customers accounted for approximately 15% , 14% , 14% , and 14% of total revenues, respectively. In fiscal year 2018 , five customers accounted for approximately 25% , 14% , 14% , 13% , and 12% of total revenues, respectively. No other customers accounted for more than 10% of total revenues. |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 28, 2020 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition: On June 25, 2018, the Company adopted FASB Accounting Standards Update (“ASU”) No. 2014-09 (ASC 606) - Revenue From Contracts with Customers which provides guidance for revenue recognition that superseded the revenue recognition requirements in ASC 605, Revenue Recognition and most industry specific guidance. 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 to the performance obligations in the contract, 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. In addition, customer contracts contain provisions for installation and training services 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. |
Inventory Valuation | Inventory Valuation: Inventories are stated at the lower of cost or net realizable value using standard costs that approximate actual costs on a first-in, first-out basis. Finished goods are reported as inventories until the point of title transfer to the customer. Unless specified in the terms of sale, title generally transfers at the physical transfer of the products to the freight carriers. Transfer of title for shipments to Japanese customers occurs at the time of customer acceptance. Management evaluates the need to record adjustments for impairment of inventory at least quarterly. The Company’s policy is to assess the valuation of all inventories including manufacturing raw materials, work-in-process, finished goods, and spare parts in each reporting period. Obsolete inventory or inventory in excess of management’s estimated usage requirement is written down to its estimated market value if less than cost. Estimates of market value include but are not limited to management’s forecasts related to the Company’s future manufacturing schedules, customer demand, technological and/or market obsolescence, general semiconductor market conditions, and possible alternative uses. If future customer demand or market conditions are less favorable than the Company’s projections, additional inventory write-downs may be required and would be reflected in cost of goods sold in the period in which the revision is made. |
Warranty | Warranty: Typically, the sale of semiconductor capital equipment includes providing parts and service warranties to customers as part of the overall price of the system. The Company provides standard warranties for its systems. The Company records a provision for estimated warranty expenses to cost of sales for each system when it recognizes revenue. The Company does not maintain general or unspecified reserves; all warranty reserves are related to specific systems. All actual or estimated parts and labor costs incurred in subsequent periods are charged to those established reserves on a system-by-system basis. While the Company periodically monitors the performance and cost of warranty activities, if actual costs incurred are different than its estimates, the Company may recognize adjustments to provisions in the period in which those differences arise or are identified. In addition to the provision of standard warranties, the Company offers customer-paid extended warranty services. Revenues for extended maintenance and warranty services with a fixed payment amount are recognized on a straight-line basis over the term of the contract. Related costs are recorded as incurred. |
Equity-based Compensation - Employee Stock Plans | Equity-based Compensation — Employee Stock Plans: The Company recognizes the fair value of equity-based compensation expense. The Company determines the fair value of its RSUs, excluding market-based performance RSUs, based upon the fair market value of Company’s Common Stock at the date of grant, discounted for dividends. The Company estimates the fair value of its market-based performance RSUs using a Monte Carlo simulation model at the date of the grant. The Company estimates the fair value of its stock options using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award. The Company amortizes the fair value of equity-based awards over the vesting periods of the award, and the Company has elected to use the straight-line method of amortization. |
Income Taxes | Income Taxes: Deferred income taxes reflect the net tax effect of temporary differences between the carrying amount of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes, as well as the tax effect of carryforwards. The Company records a valuation allowance to reduce its deferred tax assets to the amount that is more likely than not to be realized. Realization of its net deferred tax assets is dependent on future taxable income. The Company believes it is more likely than not that such assets will be realized; however, ultimate realization could be negatively impacted by market conditions and other variables not known or anticipated at this time. In the event that the Company determines that it will not be able to realize all or part of its net deferred tax assets, an adjustment will be charged to earnings in the period such determination is made. Likewise, if the Company later determines that it is more likely than not that the deferred tax assets will be realized, then the previously provided valuation allowance will be reversed. The Company recognizes the benefit from a tax position only if it is more likely than not that the position will be sustained upon audit based solely on the technical merits of the tax position. The Company’s policy is to include interest and penalties related to uncertain tax positions as a component of income tax expense. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets: The valuation of intangible assets acquired in a business combination requires the use of management estimates including but not limited to estimating future expected cash flows from assets acquired and determining discount rates. Management’s estimates of fair value are based upon assumptions believed to be reasonable, but which are inherently uncertain and unpredictable, and as a result, actual results may differ from estimates. Estimates associated with the accounting for acquisitions may change as additional information becomes available. Goodwill represents the amount by which the purchase price in each business combination exceeds the fair value of the net tangible and identifiable intangible assets acquired. Each component of the Company for which discrete financial information is available and for which management regularly reviews the results of operations is considered a reporting unit. All goodwill acquired in a business combination is assigned to one or more reporting units as of the acquisition date. Goodwill is assigned to the Company’s reporting units that are expected to benefit from the synergies of the combination. The goodwill assigned to a reporting unit is the difference between the acquisition consideration assigned to the reporting unit on a relative fair value basis and the fair value of acquired assets and liabilities that can be specifically attributed to the reporting unit. The Company tests goodwill and identifiable intangible assets with indefinite useful lives for impairment at least annually. The Company amortizes intangible assets with estimable useful lives over their respective estimated useful lives, and the Company reviews for impairment whenever events or changes in circumstances indicate that the carrying amount of the intangible asset may not be recoverable and the carrying amount exceeds its fair value. The Company reviews goodwill at least annually for impairment. If certain events or indicators of impairment occur between annual impairment tests, the Company would perform an impairment test at that date. In testing for a potential impairment of goodwill, the Company (1) allocates goodwill to its reporting units to which the acquired goodwill relates, (2) estimates the fair value of its reporting units, and (3) determines the carrying value (book value) of those reporting units. Furthermore, if the estimated fair value of a reporting unit is less than the carrying value, the Company must estimate the fair value of all identifiable assets and liabilities of that reporting unit, in a manner similar to a purchase price allocation for an acquired business. This can require independent valuations of certain internally generated and unrecognized intangible assets such as in-process R&D and developed technology. Only after this process is completed can the amount of goodwill impairment, if any, be determined. In the Company’s goodwill impairment process, it first assesses qualitative factors to determine whether it is necessary to perform a quantitative analysis. The Company does not calculate the fair value of a reporting unit unless the Company determines, based on a qualitative assessment, that it is more-likely-than-not that its fair value is less than its carrying amount. The Company performs an annual goodwill impairment analysis as of the first day of its fourth fiscal quarter. The Company did no t record impairments of goodwill during the years ended June 28, 2020 , June 30, 2019 , or June 24, 2018 . The process of evaluating the potential impairment of goodwill is subjective and requires significant judgment at many points during the analysis. The Company determines the fair value of its reporting units by using an income approach. Under the income approach, the Company determines fair value based on estimated future cash flows of each reporting unit, discounted by an estimated weighted-average cost of capital, which reflects the overall level of inherent risk of a reporting unit and the rate of return an outside investor would expect to earn. In estimating the fair value of a reporting unit, the Company makes estimates and judgments about the future cash flows of its reporting units, including estimated growth rates and assumptions about the economic environment. Although the Company’s cash flow forecasts are based on assumptions that are consistent with the plans and estimates it is using to manage the underlying businesses, there is significant judgment involved in determining the cash flows attributable to a reporting unit. In addition, the Company makes certain judgments about allocating shared assets to the estimated balance sheets of its reporting units. Changes in judgment on these assumptions and estimates could result in a goodwill impairment charge. As a result, several factors could result in impairment of a material amount of the Company’s goodwill balance in future periods, including but not limited to: (1) weakening of the global economy, weakness in the semiconductor equipment industry, or failure of the Company to reach its internal forecasts, which could impact the Company’s ability to achieve its forecasted levels of cash flows and reduce the estimated discounted cash flow value of its reporting units and (2) a decline in the Company’s stock price and resulting market capitalization and to the extent the Company determines that the decline is sustained and indicates a reduction in the fair value of the Company’s reporting units below their carrying value. Further, the value assigned to intangible assets, other than goodwill, is based on estimates and judgments regarding expectations such as the success and lifecycle of products and technology acquired. If actual product acceptance differs significantly from the estimates, the Company may be required to record an impairment charge to write down the asset to its realizable value. |
Impairment of Long-lived Assets (Excluding Goodwill) | Impairment of Long-lived Assets (Excluding Goodwill): The Company routinely considers whether indicators of impairment of long-lived assets are present. If such indicators are present, the Company determines whether the sum of the estimated undiscounted cash flows attributable to the assets is less than their carrying value. If the sum is less, the Company recognizes an impairment loss based on the excess of the carrying amount of the assets over their respective fair values. Fair value is determined by discounted future cash flows, appraisals, or other methods. The Company recognizes an impairment charge to the extent the present value of anticipated net cash flows attributable to the asset are less than the asset’s carrying value. The fair value of the asset then becomes the asset’s new carrying value, which the Company depreciates over the remaining estimated useful life of the asset. Assets to be disposed of are reported at the lower of the carrying amount or fair value. For the periods presented, there was no impairment of long-lived assets. In addition, for fully amortized intangible assets, we derecognize the gross cost and accumulated amortization in the period we determine the intangible asset no longer enhances future cash flows. |
Fiscal Year | Fiscal Year: The Company follows a 52/53-week fiscal reporting calendar, and its fiscal year ends on the last Sunday of June each year. The Company’s most recent fiscal years ended June 28, 2020 and June 24, 2018 , each included 52 weeks, and the fiscal year ended June 30, 2019 included 53 weeks. |
Principles of Consolidation | Principles of Consolidation: The Consolidated Financial Statements include the accounts of the Company and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. |
Cash Equivalents and Investments | Cash Equivalents and Investments: |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts: The Company evaluates its allowance for doubtful accounts based on a combination of factors. In circumstances where specific invoices are deemed uncollectible, the Company provides a specific allowance for bad debt against the amount due to reduce the net recognized receivable to the amount it reasonably believes will be collected. The Company also provides allowances based on its write-off history. Bad debt expense was not material for fiscal years ended June 28, 2020, June 30, 2019, and June 24, 2018. |
Property and Equipment | Property and Equipment: Property and equipment is stated at cost. Equipment is depreciated by the straight-line method over the estimated useful lives of the assets, generally three to five years . Furniture and fixtures are depreciated by the straight-line method over the estimated useful lives of the assets, generally five years . Software is amortized by the straight-line method over the estimated useful lives of the assets, generally three to five years . Buildings are depreciated by the straight-line method over the estimated useful lives of the assets, generally twenty-five years . Leasehold improvements are generally amortized by the straight-line method over the shorter of the life of the related asset or the term of the underlying lease. Amortization of finance leases is included with depreciation expense. |
Derivative Financial Instruments | Derivative Financial Instruments: In the normal course of business, the Company’s financial position is routinely subjected to market risk associated with foreign currency exchange rate fluctuations. The Company’s policy is to mitigate the effect of these exchange rate fluctuations on certain foreign currency denominated business exposures. The Company has a policy that allows the use of derivative financial instruments to hedge foreign currency exchange rate fluctuations on forecasted revenue and expenses and net monetary assets or liabilities denominated in various foreign currencies. The Company carries derivative financial instruments (derivatives) on the balance sheet at their fair values. The Company does not use derivatives for trading or speculative purposes. The Company does not believe that it is exposed to more than a nominal amount of credit risk in its interest rate and foreign currency hedges, as counterparties are large, global and well-capitalized financial institutions. The Company’s exposures are in liquid currencies (Japanese yen, euros, Korean won, Taiwanese dollars, Chinese renminbi, Swiss franc, British pound sterling, Singapore dollars, Indian rupee, and Malaysian ringgit), so there is minimal risk that appropriate derivatives to maintain the Company’s hedging program would not be available in the future. To hedge foreign currency risks, the Company uses foreign currency exchange forward and option contracts, where possible and prudent. These hedge contracts are valued using standard valuation formulas with assumptions about future foreign currency exchange rates derived from existing exchange rates, interest rates, and other market factors. The Company considers its most current forecast in determining the level of foreign currency denominated revenue and expenses to hedge as cash flow hedges. The Company combines these forecasts with historical trends to establish the portion of its expected volume to be hedged. The revenue and expenses are hedged and designated as cash flow hedges to protect the Company from exposures to fluctuations in foreign currency exchange rates. If the underlying forecasted transaction does not occur, or it becomes probable that it will not occur, the related hedge gains and losses on the cash flow hedge are reclassified from accumulated other comprehensive income (loss) to other income (expense), net on the Consolidated Statement of Operations at that time. |
Leases | Leases: Lease expense for operating leases is recognized on a straight-line basis over the lease term. The Company includes renewals and terminations in the calculation of the right-of-use asset and liability when the provision is reasonably certain to be exercised. The Company uses its incremental borrowing rate based on the information available at commencement date in determining the present value of future lease payments when the rate implicit in the lease is unknown. The Company has elected the following practical expedients and accounting policy elections for accounting under ASC 842: (i) leases with an initial lease term of 12 months or less are not recorded on the balance sheet; and (ii) lease and non-lease components of a contract are accounted for as a single lease component. |
Guarantees | Guarantees: The Company has certain operating leases that contain provisions whereby the properties subject to the operating leases may be remarketed at lease expiration. The Company has guaranteed to the lessor an amount approximating the lessor’s investment in the property. Also, the Company’s guarantees generally include certain indemnifications to its lessors under operating lease agreements for environmental matters, potential overdraft protection obligations to financial institutions related to one of the Company’s subsidiaries, indemnifications to the Company’s customers for certain infringement of third-party intellectual property rights by its products and services, indemnifications for its officers and directors, and the Company’s warranty obligations under sales of its products. |
Foreign Currency Translation | Foreign Currency Translation: The Company’s non-U.S. subsidiaries that operate in a local currency environment, where that local currency is the functional currency, primarily generate and expend cash in their local currency. Accordingly, all balance sheet accounts of these local functional currency subsidiaries are translated into U.S. dollars at the fiscal period-end exchange rate, and income and expense accounts are translated into U.S. dollars using average rates in effect for the period, except for costs related to those balance sheet items that are translated using historical exchange rates. The resulting translation adjustments are recorded as cumulative translation adjustments and are a component of accumulated other comprehensive income (loss). Translation adjustments are recorded in other income (expense), net, where the U.S. dollar is the functional currency. |
Recent Accounting Pronouncements | Recently Adopted In February 2016, the FASB issued ASU 2016-02, “Leases.” The amendment establishes the principles that lessees and lessors shall apply to report useful information to users of financial statements about the amount, timing, and uncertainty of cash flows arising from a lease. In January 2018 and July 2018, the FASB issued ASU 2018-01 and ASU 2018-11 amending the effects of ASU 2016-02, which in combination with ASU 2016-02 were codified as Accounting Standard Codification topic 842 (“ASC 842”). The Company adopted ASC 842 on the first day of the current fiscal year, July 1, 2019, under the modified-retrospective approach, applying the amendments to prospective reporting periods. Results for reporting periods beginning on or after July 1, 2019 are presented under ASC 842, while prior period amounts are not adjusted and continue to be reported in accordance with the historic accounting under ASC 840. The Company elected the package of practical expedients that allowed the Company not to reassess (i) whether any expired or existing contracts contain leases; (ii) the lease classification for any expired or existing leases; and (iii) initial direct lease costs for existing leases. The Company did not elect to use hindsight in connection with the adoption of ASC 842. The Company adopted ASC 842 by recording operating right-of-use assets of $110.8 million , net of deferred rent liabilities of $3.0 million that were reclassified to operating right-of-use assets, and operating lease liabilities of $113.8 million . The Company also recognized an adjustment of $3.0 million to retained earnings, net of tax; a reduction of $40.4 million to property and equipment, net; and a reduction of $43.8 million to finance leases ( $42.3 million of which was previously recognized in long-term debt and finance lease obligations, less current portion and the remaining was previously recognized in current portion of long-term debt and finance lease obligations) related to its de-recognition of its previously recorded build-to-suit arrangements. The adoption of the standard did not materially impact the Company’s Consolidated Statement of Operations and had no impact on cash flows. Updates Not Yet Effective In June 2016, the FASB released ASU 2016-13, “Financial Instruments – Credit Losses.” The amendment revises the impairment model to utilize an expected loss methodology in place of the currently used incurred loss methodology, which will result in more timely recognition of losses on financial instruments, including but not limited to, available for sale debt securities and accounts receivable. The FASB issued a subsequent amendment to the initial guidance in November 2019 within ASU 2019-11. The Company is required to adopt these amendments starting in the first quarter of fiscal year 2021 using a modified-retrospective approach. Early adoption is permitted. The Company does not expect the adoption of this standard to have a material impact on its Consolidated Financial Statements. In November 2018, the FASB issued ASU 2018-18, "Collaborative Arrangements (Topic 808).” The amendment clarifies that certain transactions between participants in a collaborative arrangement should be accounted for under Topic 606 when the counterparty is a customer for a good or service that is a distinct unit of account. The amendment also precludes entities from presenting consideration from transactions with a collaborator that is not a customer together with revenue recognized from contracts with customers. The Company is required to adopt this standard starting in the first quarter of fiscal year 2021. The standard should be applied retrospectively to the period when the Company initially adopted ASC 606. The Company does not expect the adoption of this standard to have a material impact on its Consolidated Financial Statements. In April 2019, the FASB issued ASU 2019-04,”Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments”, that clarifies and improves areas of guidance related to the recently issued standards on credit losses (ASU 2016-13), hedging (ASU 2017-12), and recognition and measurement of financial instruments (ASU 2016-01). The amendments generally have the same effective dates as their related standards. If already adopted, the amendments of ASU 2016-01 and ASU 2016-13 are effective starting in the first quarter of fiscal year 2021. The Company does not expect adoption of this standard to have a material impact on its Consolidated Financial Statements. In March 2020, the FASB issued ASU 2020-04, “Reference Rate Reform (Topic 848) - Facilitation of the Effects of Reference Rate Reform on Financial Reporting.” The ASU provides optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference LIBOR or another reference rate expected to be discontinued. This ASU may be applied prospectively through December 31, 2022. The Company expects to adopt this guidance and apply it to reference rate reform effected arrangement modifications. |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
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 June 28, 2020 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 $ 463,759 $ 73,668 (1) $ — (1) $ 537,427 (1) This amount is reported in Deferred profit on the Company's Consolidated Balance Sheets as the customers can demand the liability to be performed at any time. |
Disaggregation of Revenue | The following table presents the Company’s revenue disaggregated between system and its customer-support related revenue: Year Ended June 28, June 30, (in thousands) Systems Revenue $ 6,625,130 $ 6,451,104 Customer support-related revenue and other 3,419,606 3,202,455 $ 10,044,736 $ 9,653,559 |
Schedule of System Revenues of Primary Markets | The following table presents the percentages of leading- and non-leading-edge equipment and upgrade revenue to each of the primary markets we serve: Year Ended June 28, June 30, Memory 58 % 70 % Foundry 31 % 20 % Logic/integrated device manufacturing 11 % 10 % |
Equity-based Compensation Pla_2
Equity-based Compensation Plans (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Recognized Equity Based Compensation Expenses and Benefits | The Company recognized the following equity-based compensation expense and benefits in the Consolidated Statements of Operations: Year Ended June 28, June 30, June 24, (in thousands) Equity-based compensation expense $ 189,197 $ 187,234 $ 172,216 Income tax benefit recognized related to equity-based compensation $ 36,135 $ 47,396 $ 87,505 Income tax benefit realized from the exercise and vesting of options and RSUs $ 67,060 $ 49,242 $ 90,297 |
Summary of Stock Plan Transactions | The following table summarizes stock option activity: Options Outstanding Number of Weighted-Average June 25, 2017 594,059 $ 66.69 Granted 63,980 190.07 Exercised (166,481 ) 55.62 Forfeited or expired (8,630 ) 84.44 June 24, 2018 482,928 $ 86.53 Granted 181,450 164.54 Exercised (110,427 ) 61.69 Forfeited or expired (59,068 ) 126.05 June 30, 2019 494,883 $ 115.96 Granted 34,236 300.33 Exercised (118,334 ) 68.31 Forfeited or expired (4,948 ) 179.39 June 28, 2020 405,837 $ 144.63 The following table summarizes restricted stock activity: Service-based RSUs Outstanding Market-based RSUs Outstanding Number of Weighted-Average Number of Weighted-Average June 25, 2017 2,687,606 $ 92.01 862,455 $ 83.83 Granted 964,391 183.97 285,866 125.56 Vested (1,362,369 ) 87.80 (407,024 ) 76.88 Forfeited or canceled (96,540 ) 108.67 (47,571 ) 91.36 June 24, 2018 2,193,088 $ 134.34 693,726 $ 104.59 Granted 893,622 161.64 163,529 148.50 Vested (1,135,284 ) 115.23 (301,622 ) 70.58 Forfeited or canceled (154,541 ) 141.38 (120,859 ) 104.73 June 30, 2019 1,796,885 $ 159.36 434,774 $ 144.57 Granted 616,353 280.08 171,526 216.04 Vested (912,409 ) 151.53 (257,787 ) 111.75 Forfeited or canceled (94,265 ) 176.30 (33,403 ) 160.83 June 28, 2020 1,406,564 $ 216.34 315,110 $ 208.60 |
Schedule of Stock Options Weighted Average Assumptions | The fair value of the Company’s stock options granted during fiscal years 2020 , 2019 , and 2018 was estimated using a Black-Scholes option valuation model. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award: Year Ended June 28, June 30, June 24, Expected volatility 33.89 % 32.23 % 34.66 % Risk-free interest rate 0.88 % 2.62 % 2.53 % Expected term (years) 4.63 4.70 4.74 Dividend yield 1.53 % 2.70 % 1.05 % |
Schedule of PRSUs Weighted Average Assumptions | The fair value of the Company’s market-based PRSUs granted during fiscal years 2020 , 2019 , and 2018 was calculated using a Monte Carlo simulation model at the date of the grant. This model requires the input of highly subjective assumptions, including expected stock price volatility and the estimated life of each award: Year Ended June 28, June 30, June 24, Assumptions: Expected volatility 35.81 % 32.65 % 34.07 % Risk-free interest rate 0.85 % 2.52 % 2.35 % Expected term (years) 2.92 2.92 2.92 Dividend yield 1.53 % 2.49 % 1.05 % Resulting grant date fair value: $ 320.69 $ 165.78 $ 170.15 |
Intrinsic Value of Stock Options | The year-end intrinsic value relating to stock options for fiscal years 2020 , 2019 , and 2018 is presented below: Year Ended June 28, June 30, June 24, (in thousands) Intrinsic value - options outstanding $ 64,077 $ 35,674 $ 43,563 Intrinsic value - options exercisable $ 46,698 $ 30,139 $ 34,661 Intrinsic value - options exercised $ 21,137 $ 12,750 $ 23,925 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Other Income and Expenses [Abstract] | |
Components of Other Expense, Net | The significant components of other expense, net, were as follows: Year Ended June 28, June 30, June 24, (in thousands) Interest income $ 85,433 $ 98,771 $ 85,813 Interest expense (177,440 ) (117,263 ) (97,387 ) Gains on deferred compensation plan related assets, net 5,999 10,464 14,692 Loss on impairment of investments — — (42,456 ) Foreign exchange (losses) gains, net (3,317 ) 826 (3,382 ) Other, net (9,499 ) (10,959 ) (18,790 ) $ (98,824 ) $ (18,161 ) $ (61,510 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Income Tax Disclosure [Abstract] | |
Components of Income (Loss) Before Income Taxes | The components of income (loss) before income taxes were as follows: Year Ended June 28, June 30, June 24, (in thousands) United States $ 44,739 $ (59,876 ) $ 128,190 Foreign 2,530,239 2,506,447 3,023,599 $ 2,574,978 $ 2,446,571 $ 3,151,789 |
Components of Provision (Benefit) for Income Taxes | Significant components of the provision (benefit) for income taxes attributable to income before income taxes were as follows: Year Ended June 28, June 30, June 24, (in thousands) Federal: Current $ 216,513 $ 143,845 $ 630,148 Deferred (18,458 ) (10,722 ) 12,871 198,055 133,123 643,019 State: Current 4,724 5,994 5,348 Deferred 6,524 4,944 (3,273 ) 11,248 10,938 2,075 Foreign: Current 119,766 110,283 132,566 Deferred (5,844 ) 797 (6,552 ) 113,922 111,080 126,014 Total provision for income taxes $ 323,225 $ 255,141 $ 771,108 |
Components of Net Deferred Tax Assets and Liabilities | Significant components of the Company’s net deferred tax assets and liabilities were as follows: June 28, June 30, (in thousands) Deferred tax assets: Tax carryforwards $ 249,874 $ 231,390 Allowances and reserves 119,974 97,671 Equity-based compensation 7,167 14,661 Inventory valuation differences 26,069 18,516 Prepaid cost sharing — 74,139 Outside basis differences of foreign subsidiaries 105,159 16,260 Operating lease liabilities 40,157 — Other 26,361 17,972 Gross deferred tax assets 574,761 470,609 Valuation allowance (244,973 ) (226,928 ) Net deferred tax assets 329,788 243,681 Deferred tax liabilities: Intangible assets (6,442 ) (9,883 ) Convertible debt (24,530 ) (46,993 ) Capital assets (105,508 ) (83,298 ) Amortization of goodwill (12,256 ) (11,299 ) Right-of-use assets (40,157 ) — Other (7,509 ) (8,752 ) Gross deferred tax liabilities (196,402 ) (160,225 ) Net deferred tax assets $ 133,386 $ 83,456 |
Reconciliation of Income Tax Expense Provided at Federal Statutory Rate to Actual Income Tax Expense (Benefit) | A reconciliation of income tax expense provided at the federal statutory rate ( 21% in fiscal year 2020 and fiscal year 2019 , and 28.27% in fiscal year 2018) to actual income tax expense is as follows: Year Ended June 28, June 30, June 24, (in thousands) Income tax expense computed at federal statutory rate $ 540,745 $ 513,780 $ 891,011 State income taxes, net of federal tax benefit (28,046 ) (17,565 ) (50,585 ) Foreign income taxed at different rates (146,023 ) (260,344 ) (939,808 ) Settlements and reductions in uncertain tax positions (12,854 ) (31,291 ) (33,367 ) Tax credits (88,762 ) (71,779 ) (69,301 ) State valuation allowance, net of federal tax benefit 30,923 26,742 57,302 Equity-based compensation (23,248 ) (7,566 ) (35,875 ) Other permanent differences and miscellaneous items 50,490 39,251 43,214 U.S. tax reform impacts — 63,913 908,517 $ 323,225 $ 255,141 $ 771,108 |
Changes in Balance of Gross Unrecognized Tax Benefits | The aggregate changes in the balance of gross uncertain tax positions were as follows: (in thousands) Balance as of June 25, 2017 $ 339,447 Settlements and effective settlements with tax authorities (693 ) Lapse of statute of limitations (88,837 ) Increases in balances related to tax positions taken during prior periods 2,044 Decreases in balances related to tax positions taken during prior periods (1,320 ) Increases in balances related to tax positions taken during current period 54,772 Balance as of June 24, 2018 305,413 Settlements and effective settlements with tax authorities (3,705 ) Lapse of statute of limitations (28,176 ) Increases in balances related to tax positions taken during prior periods 78,927 Decreases in balances related to tax positions taken during prior periods (1,577 ) Increases in balances related to tax positions taken during current period 69,890 Balance as of June 30, 2019 420,772 Settlements and effective settlements with tax authorities (1,836 ) Lapse of statute of limitations (8,026 ) Increases in balances related to tax positions taken during prior periods 3,206 Decreases in balances related to tax positions taken during prior periods (3,989 ) Increases in balances related to tax positions taken during current period 66,568 Balance as of June 28, 2020 $ 476,695 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Numerators and Denominators of Basic and Diluted Computations for Net Income Per Share | The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share. Year Ended June 28, June 30, June 24, (in thousands, except per share data) Numerator: Net income $ 2,251,753 $ 2,191,430 $ 2,380,681 Denominator: Basic average shares outstanding 144,814 152,478 161,643 Effect of potential dilutive securities: Employee stock plans 1,236 1,323 2,312 Convertible notes 3,040 5,610 12,258 (1) Warrants — 504 4,569 Diluted average shares outstanding 149,090 159,915 180,782 Net income per share - basic $ 15.55 $ 14.37 $ 14.73 Net income per share - diluted $ 15.10 $ 13.70 $ 13.17 (1) Diluted shares outstanding do not include any effect resulting from note hedges associated with the Company’s 2018 Notes as their impact would have been anti-dilutive. |
Schedule of Potentially Dilutive Securities Excluded from EPS Calculations | The following potentially dilutive securities were excluded: Year Ended June 28, June 30, June 24, (in thousands) Options and RSUs 206 578 34 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Fair Value Disclosures [Abstract] | |
Cash, Cash Equivalents, Short-Term Investments, Restricted Cash and Investments and Other Assets Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s cash, cash equivalents, investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of June 28, 2020 , and June 30, 2019 : June 28, 2020 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 977,862 $ — $ — $ 977,862 $ 973,978 $ — $ 3,884 $ — Time deposit 2,244,655 — — 2,244,655 1,994,628 — 250,027 — Level 1: Money market funds 1,709,350 — — 1,709,350 1,709,350 — — — U.S. Treasury and agencies 552,088 373 (9 ) 552,452 76,992 475,460 — — Mutual funds 68,784 4,571 (928 ) 72,427 — — — 72,427 Level 1 total 2,330,222 4,944 (937 ) 2,334,229 1,786,342 475,460 — 72,427 Level 2: Government-sponsored enterprises 31,442 12 — 31,454 25,999 5,455 — — Foreign government bonds 10,693 28 (5 ) 10,716 2,540 8,176 — — Corporate notes and bonds 1,405,615 5,344 (302 ) 1,410,657 131,685 1,278,972 — — Mortgage backed securities - residential 3,142 71 — 3,213 — 3,213 — — Mortgage backed securities - commercial 23,660 144 — 23,804 — 23,804 — — Level 2 total 1,474,552 5,599 (307 ) 1,479,844 160,224 1,319,620 — — Total $ 7,027,291 $ 10,543 $ (1,244 ) $ 7,036,590 $ 4,915,172 $ 1,795,080 $ 253,911 $ 72,427 June 30, 2019 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 467,460 $ — $ — $ 467,460 $ 462,310 $ — $ 5,150 $ — Time deposit 1,563,686 — — 1,563,686 1,313,659 — 250,027 — Level 1: Money market funds 1,644,659 — — 1,644,659 1,644,659 — — — U.S. Treasury and agencies 465,655 283 (24 ) 465,914 86,981 378,933 — — Mutual funds 76,961 1,063 (283 ) 77,741 — — — 77,741 Level 1 total 2,187,275 1,346 (307 ) 2,188,314 1,731,640 378,933 — 77,741 Level 2: Government-sponsored enterprises 16,005 5 (41 ) 15,969 — 15,969 — — Foreign government bonds 24,408 35 — 24,443 — 24,443 — — Corporate notes and bonds 1,466,167 2,310 (99 ) 1,468,378 150,610 1,317,768 — — Mortgage backed securities - residential 6,148 — (4 ) 6,144 — 6,144 — — Mortgage backed securities - commercial 29,587 140 — 29,727 — 29,727 — — Level 2 total 1,542,315 2,490 (144 ) 1,544,661 150,610 1,394,051 — — Total $ 5,760,736 $ 3,836 $ (451 ) $ 5,764,121 $ 3,658,219 $ 1,772,984 $ 255,177 $ 77,741 |
Schedule of Cash, Cash Equivalents, Short-Term Investments and Restricted Cash and Investments in Unrealized Loss Positions | The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions: June 28, 2020 Unrealized Losses Unrealized Losses Total Fair Value Gross Fair Value Gross Fair Value Gross (in thousands) U.S. Treasury and agencies $ 189,437 $ (9 ) $ — $ — $ 189,437 $ (9 ) Mutual funds 2,623 (289 ) 5,011 (639 ) 7,634 (928 ) Foreign government bonds 9,056 (5 ) — — 9,056 (5 ) Corporate notes and bonds 332,924 (302 ) — — 332,924 (302 ) $ 534,040 $ (605 ) $ 5,011 $ (639 ) $ 539,051 $ (1,244 ) |
Schedule of Amortized Cost and Fair Value of Cash Equivalents, Short-Term Investments, Restricted Cash and Investments with Contractual Maturities | The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities as of June 28, 2020 , are as follows: Cost Estimated (in thousands) Due in one year or less $ 5,527,654 $ 5,529,241 Due after one year through five years 433,973 437,872 Due in more than five years 19,018 19,188 $ 5,980,645 $ 5,986,301 |
Schedule of Outstanding Foreign Currency Forward Contracts | As of June 28, 2020 , the Company had the following outstanding foreign currency contracts that were entered into under its cash flow and balance sheet hedge programs: Notional Value Derivatives Designated as Derivatives Not Designated as (in thousands) Foreign currency forward contracts Buy Contracts Sell Contracts Buy Contracts Sell Contracts Japanese yen $ — $ 299,450 $ 22,475 $ — Euro 54,512 — 36,113 — Korean won 20,492 — — 50,715 Taiwan dollar — — 47,612 — Chinese renminbi — — 35,071 — Swiss franc — — 12,672 — British pound sterling — — 11,191 — Singapore dollar — — 10,062 — Indian rupee — — 7,772 — Malaysian ringgit — — 5,612 — $ 75,004 $ 299,450 $ 188,580 $ 50,715 |
Schedule of Fair Value of Derivatives Instruments | The fair value of derivative instruments in the Company’s Consolidated Balance Sheet as of June 28, 2020 , and June 30, 2019 , were as follows: June 28, 2020 June 30, 2019 Fair Value of Derivative Instruments (Level 2) Fair Value of Derivative Instruments (Level 2) Derivative Assets Derivative Liabilities Derivative Assets Derivative Liabilities Balance Fair Balance Fair Balance Fair Balance Fair (in thousands) Derivatives designated as hedging instruments: Foreign exchange contracts Prepaid $ 1,862 Accrued expenses and other current liabilities $ 1,405 Prepaid $ 119 Accrued expenses and other current liabilities $ 2,756 Interest rate contracts, short-term — — — Accrued expenses and other current liabilities 5,149 Interest rate contracts, long-term — — Other assets 1,537 — Derivatives not designated as hedging instruments: Foreign exchange contracts Prepaid 155 Accrued expenses and other current liabilities 70 Prepaid 1,249 Accrued expenses and other current liabilities 748 Total derivatives $ 2,017 $ 1,475 $ 2,905 $ 8,653 |
Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations | The effect of derivative instruments designated as cash flow hedges on the Company’s Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”), was as follows: Year Ended June 28, 2020 Year Ended June 30, 2019 Location of Gain (Loss) Gain (Loss) Gain (Loss) Gain (Loss) Reclassified Derivatives in Cash Flow Hedging Relationships (in thousands) Foreign exchange contracts Revenue $ 4,095 $ 2,418 $ 8,143 $ 10,821 Foreign exchange contracts Cost of goods sold (2,104 ) (3,101 ) (3,801 ) (5,949 ) Foreign exchange contracts SG&A (1,158 ) (1,501 ) (1,618 ) (2,321 ) Interest rate contracts Other expense, net (40,610 ) (700 ) — (134 ) $ (39,777 ) $ (2,884 ) $ 2,724 $ 2,417 The effect of derivative instruments not designated as cash flow hedges on the Company’s Consolidated Statement of Operations was as follows: Year Ended June 28, 2020 June 30, 2019 Derivatives Not Designated as Hedging Instruments: Location of (Loss) Gain Loss Gain (in thousands) Foreign exchange contracts Other income $ (5,971 ) $ 4,124 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: Location and Amount of Gain (Loss) Recognized in Income on Fair Value and Cash Flow Hedging Relationships Year ended June 28, 2020 Revenue Cost of Goods Sold Selling, General and Administrative Other Income (Expense) (in thousands) Total amounts of income and expense line items presented in the statement of financial performance in which the effects of fair value or cash flow hedges are recorded: $ 10,044,736 $ 5,436,043 $ 682,479 $ (98,824 ) 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 — — — (12,882 ) Derivatives designated as hedging instruments — — — 12,882 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 2,418 (3,101 ) (1,501 ) — Interest rate contracts: Amount of gain (loss) reclassified from accumulated other comprehensive income into income — — — (700 ) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: June 28, June 30, (in thousands) Raw materials $ 1,161,961 $ 994,738 Work-in-process 251,199 174,219 Finished goods 486,864 371,183 $ 1,900,024 $ 1,540,140 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, is presented in the table below. In connection with the adoption of ASC 842, the Company has excluded $18.4 million of finance right-of-use assets recorded within property and equipment, net from the table below. See Note 15 - Leases for additional information regarding these finance lease right-of-use assets. June 28, June 30, (in thousands) Manufacturing and engineering equipment $ 1,154,668 $ 1,039,454 Buildings and improvements 660,865 664,061 Computer and computer-related equipment 178,193 190,974 Office equipment, furniture and fixtures 83,386 82,115 Land 58,805 46,155 2,135,917 2,022,759 Less: accumulated depreciation and amortization (1,082,827 ) (963,682 ) $ 1,053,090 $ 1,059,077 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Intangible Assets, Other Than Goodwill | The following table provides details of the Company’s intangible assets, other than goodwill: June 28, 2020 June 30, 2019 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 630,137 $ (532,550 ) $ 97,587 $ 630,165 $ (483,204 ) $ 146,961 Existing technology 668,992 (654,382 ) 14,610 669,399 (647,837 ) 21,562 Patents and other intangible assets 98,342 (42,007 ) 56,335 126,235 (77,808 ) 48,427 Total intangible assets $ 1,397,471 $ (1,228,939 ) $ 168,532 $ 1,425,799 $ (1,208,849 ) $ 216,950 |
Estimated Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets as of June 28, 2020 , is reflected in the table below. The table excludes $12.3 million of capitalized costs for intangible assets that have not yet been placed into service. Fiscal Year Amount (in thousands) 2021 $ 65,949 2022 61,687 2023 16,156 2024 8,561 2025 3,868 Thereafter 16 $ 156,237 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: June 28, June 30, (in thousands) Accrued compensation $ 402,401 $ 336,090 Warranty reserves 117,839 127,932 Income and other taxes payable 215,652 49,926 Dividend payable 167,129 158,868 Other 369,634 273,825 $ 1,272,655 $ 946,641 |
Long Term Debt and Other Borr_2
Long Term Debt and Other Borrowings (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | As of June 28, 2020 , and June 30, 2019 , the Company’s outstanding debt consisted of the following: June 28, 2020 June 30, 2019 Amount (in thousands) Effective Interest Rate Amount (in thousands) Effective Interest Rate Fixed-rate 2.75% Senior Notes Due March 15, 2020 (“2020 Notes”) $ — — $ 500,000 2.88 % Fixed-rate 2.80% Senior Notes Due June 15, 2021 (“2021 Notes”) 800,000 2.95 % 800,000 2.95 % Fixed-rate 3.80% Senior Notes Due March 15, 2025 (“2025 Notes”) 500,000 3.87 % 500,000 3.87 % Fixed-rate 3.75% Senior Notes Due March 15, 2026 ("2026 Notes") 750,000 3.86 % 750,000 3.86 % Fixed-rate 4.00% Senior Notes Due March 15, 2029 ("2029 Notes") 1,000,000 4.09 % 1,000,000 4.09 % Fixed-rate 1.90% Senior Note Due June 15, 2030 ("2030 Notes") 750,000 2.01 % — — Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (“2041 Notes”) 48,460 (1) 4.28 % 212,349 (1) 4.28 % Fixed-rate 4.875% Senior Notes Due March 15, 2049 ("2049 Notes") 750,000 4.93 % 750,000 4.93 % Fixed-rate 2.875% Senior Note Due June 15, 2050 ("2050 Notes") 750,000 2.93 % — — Fixed-rate 3.125% Senior Note Due June 15, 2060 ("2060 Notes") 500,000 3.18 % — — Total debt outstanding, at par 5,848,460 4,512,349 Unamortized discount (53,086 ) (73,191 ) Fair value adjustment - interest rate contracts 8,405 (2) (3,612 ) Unamortized bond issuance costs (8,301 ) (5,535 ) Total debt outstanding, at carrying value $ 5,795,478 $ 4,430,011 Reported as: Current portion of long-term debt $ 836,107 $ 662,308 Long-term debt 4,959,371 3,767,703 Total debt outstanding, at carrying value $ 5,795,478 $ 4,430,011 (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) This amount represents a cumulative fair market gain for discontinued hedging relationships, net of an immaterial amount of amortization for the year ended June 28, 2020 . |
Schedule of Contractual Cash Obligations | The Company’s contractual cash obligations relating to its outstanding debt as of June 28, 2020 , were as follows: Payments Due by Fiscal Year: (in thousands) 2021 (1) $ 848,460 2022 — 2023 — 2024 — 2025 500,000 Thereafter 4,500,000 Total $ 5,848,460 (1) As noted above, the conversion period for the 2041 Notes is open as of June 28, 2020 . As there is the potential for conversion at the option of the holder, the principal balance of the 2041 Notes has been included in the one-year payment period. |
Components of Convertible Notes | Selected additional information regarding the 2041 Notes outstanding as of June 28, 2020 , and June 30, 2019 , is as follows: 2041 Notes June 28, June 30, (in thousands, except years, percentages, conversion rate, and conversion price) Carrying amount of permanent equity component, net of tax $ 161,467 $ 160,604 Carrying amount of temporary equity component, net of tax $ 10,995 $ 49,439 Remaining amortization period (years) 20.9 21.9 Fair Value of Notes (Level 2) $ 462,857 Conversion rate (shares of common stock per $1,000 principal amount of notes) 31.5206 Conversion price (per share of common stock) $ 31.73 If-converted value in excess of par value $ 413,636 Estimated share dilution using average quarterly stock price of $270.53 per share 1,348 |
Schedule of Additional Senior Notes Information | Selected additional information regarding the Senior Notes outstanding as of June 28, 2020 , is as follows: Remaining Amortization period Fair Value of Notes (Level 2) (years) (in thousands) 2021 Notes 1.0 $ 815,560 2025 Notes 4.7 $ 565,985 2026 Notes 5.7 $ 859,560 2029 Notes 8.7 $ 1,185,430 2030 Notes 10.0 $ 763,793 2049 Notes 28.7 $ 1,045,035 2050 Notes 30.0 $ 773,603 2060 Notes 40.0 $ 527,825 |
Schedule of Recognized Interest Cost | The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Senior Notes, convertible notes, commercial paper, and the revolving credit facility during the fiscal years ended June 28, 2020 , June 30, 2019 , and June 24, 2018 . Year Ended June 28, June 30, June 24, (in thousands) Contractual interest coupon $ 169,483 $ 100,712 $ 77,091 Amortization of interest discount 4,280 3,937 12,225 Amortization of issuance costs 1,632 1,426 2,034 Effect of interest rate contracts, net 1,037 4,086 3 Total interest cost recognized $ 176,432 $ 110,161 $ 91,353 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows for the year ended June 28, 2020 (in thousands): Financing lease cost: Amortization of right-of-use assets $ 3,613 Interest on lease liabilities 506 Total finance lease cost $ 4,119 Operating lease cost $ 46,101 Variable lease cost 91,851 |
Supplemental Cash Flow Information | June 28, 2020 Weighted-Average Remaining Lease Term Weighted-Average Discount Rate (in years) Operating leases 9.0 2.57 % Finance leases 4.1 2.79 % Supplemental cash flow information related to leases was as follows as of June 28, 2020 (in thousands): Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 50,223 Financing cash flows paid for principal portion of finance leases 3,539 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 108,816 Finance leases 3,019 |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases were as follows as of June 28, 2020 (in thousands): Operating leases Other assets $ 174,583 Accrued expenses and other current liabilities $ 49,480 Other long-term liabilities 123,889 Total operating lease liabilities $ 173,369 Finance Leases Property and Equipment, net $ 18,409 Current portion of long-term debt and lease liabilities $ 3,770 Long-term debt and lease liabilities 11,477 Total finance lease liabilities $ 15,247 |
Maturities of Finance Lease Liabilities | As of June 28, 2020 , the maturities of lease liabilities are as follows: Operating Leases Finance Leases (in thousands) 2021 $ 50,611 $ 4,170 2022 31,178 6,709 2023 22,446 1,541 2024 18,279 1,080 2025 14,761 617 Thereafter 49,660 2,304 Total lease payments $ 186,935 $ 16,421 Less imputed interest (13,566 ) (1,174 ) Total $ 173,369 $ 15,247 |
Maturities of Operating Lease Liabilities | As of June 28, 2020 , the maturities of lease liabilities are as follows: Operating Leases Finance Leases (in thousands) 2021 $ 50,611 $ 4,170 2022 31,178 6,709 2023 22,446 1,541 2024 18,279 1,080 2025 14,761 617 Thereafter 49,660 2,304 Total lease payments $ 186,935 $ 16,421 Less imputed interest (13,566 ) (1,174 ) Total $ 173,369 $ 15,247 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Commitments | The Company’s commitments related to these agreements as of June 28, 2020 , were as follows: Payments Due by Fiscal Year: Purchase (in thousands) 2021 $ 541,524 2022 49,520 2023 49,520 2024 33,211 2025 33,212 Thereafter 958 Total $ 707,945 |
Schedule of Changes in Product Warranty Reserves | Changes in the Company’s product warranty reserves were as follows: Year Ended June 28, June 30, (in thousands) Balance at beginning of period $ 127,932 $ 192,480 Warranties issued during the period 151,508 249,737 Settlements made during the period (131,177 ) (307,079 ) Changes in liability for pre-existing warranties (19,066 ) (7,206 ) Balance at end of period $ 129,197 $ 127,932 |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Equity [Abstract] | |
Schedule of Repurchases Under Repurchase Program | Repurchases under the repurchase program were as follows during the periods indicated: Period Total Number Total Average (1) Amount Available (in thousands, except per share data) Available balance as of June 30, 2019 $ 3,033,500 Quarter ended September 29, 2019 383 $ 75,196 $ 196.34 $ 2,958,304 Quarter ended December 29, 2019 3,224 (2) $ 1,000,475 $ — $ 1,957,829 Quarter ended March 29, 2020 1,239 (2) $ 146,397 $ 274.37 $ 1,811,432 Quarter ended June 28, 2020 145 $ 38,005 $ 261.34 $ 1,773,427 (1) Average price paid per share excludes effect of accelerated share repurchases; see additional disclosure below regarding the Company’s accelerated share repurchase activity during the fiscal year. (2) Includes shares received at final settlement of accelerated share repurchase agreements; see additional disclosures below regarding the Company’s accelerated share repurchase activity during the fiscal year. |
Comprehensive Income (Loss) (Ta
Comprehensive Income (Loss) (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of tax at the end of June 28, 2020 , as well as the activity during the fiscal year ended June 28, 2020 , were as follows: Accumulated Accumulated Accumulated Accumulated Total (in thousands) Balance as of June 30, 2019 $ (39,370 ) $ (4,330 ) $ 2,146 $ (22,476 ) $ (64,030 ) Other comprehensive (loss) income before reclassifications (6,428 ) (30,603 ) 1,842 1,949 (33,240 ) Losses (gains) reclassified from accumulated other comprehensive income (loss) to net income (13 ) (1) 2,137 (2) 935 (1) — 3,059 Net current-period other comprehensive income (loss) (6,441 ) (28,466 ) 2,777 1,949 (30,181 ) Balance as of June 28, 2020 $ (45,811 ) $ (32,796 ) $ 4,923 $ (20,527 ) $ (94,211 ) (1) Amount of after-tax gain reclassified from accumulated other comprehensive income into net income located in other expense, net. (2) Amount of after-tax gain reclassified from accumulated other comprehensive income into net income located in revenue: $2.1 million gain; cost of goods sold: $2.6 million loss; selling, general, and administrative expenses: $1.1 million loss; and other income and expense: $0.5 million loss. |
Segment, Geographic Informati_2
Segment, Geographic Information and Major Customers (Tables) | 12 Months Ended |
Jun. 28, 2020 | |
Segment Reporting [Abstract] | |
Revenues and Long Lived Assets by Geographic Region | Revenues and long-lived assets by geographic region were as follows: Year Ended June 28, June 30, June 24, Revenue: (in thousands) China $ 3,083,916 $ 2,161,440 $ 1,784,436 Korea 2,391,257 2,205,348 3,832,798 Taiwan 1,906,223 1,596,261 1,397,978 Japan 954,743 1,969,869 1,882,799 United States 812,482 748,601 820,438 Southeast Asia 587,638 615,813 781,360 Europe 308,477 356,227 577,189 Total revenue $ 10,044,736 $ 9,653,559 $ 11,076,998 June 28, June 30, June 24, Long-lived assets: (in thousands) United States $ 930,970 $ 933,054 $ 784,469 Europe 74,103 72,928 73,336 Korea 40,318 28,200 24,312 Southeast Asia 8,643 5,542 3,715 China 6,261 6,844 5,466 Japan 5,793 5,750 3,327 Taiwan 5,411 6,759 7,922 $ 1,071,499 $ 1,059,077 $ 902,547 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Accounting Policies [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. | ||
Impairments of goodwill | $ 0 | $ 0 | $ 0 |
Impairment loss on long-lived assets | 0 | 0 | 0 |
Other-than-temporary impairment charge | $ 42,456,000 | ||
Other-than-temporary impairment charge | $ 0 | $ 0 | |
Equipment | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 3 years | ||
Equipment | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Office equipment, furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Computer Software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 3 years | ||
Computer Software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 25 years |
Recent Accounting Pronounceme_2
Recent Accounting Pronouncements (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Jul. 01, 2019 | Jun. 30, 2019 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating right-of-use assets | $ 174,583 | ||
Operating lease liabilities | 173,369 | ||
Property and equipment, net | $ (1,053,090) | $ (1,059,077) | |
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Operating right-of-use assets | $ 110,800 | ||
Net deferred rent liabilities | 3,000 | ||
Operating lease liabilities | 113,800 | ||
Cumulative effect of adjustment | 3,018 | ||
Property and equipment, net | 40,400 | ||
Finance leases | 43,800 | ||
Long-term debt and finance lease obligations | 42,300 | ||
Retained Earnings | ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect of adjustment | $ 3,018 |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Millions | 12 Months Ended |
Jun. 28, 2020USD ($)segment | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ | $ 408.8 |
Number of reportable business segment | segment | 1 |
Revenue - Summary of Contract T
Revenue - Summary of Contract Transaction Price not yet Recognized as Revenue (Details) $ in Thousands | Jun. 28, 2020USD ($) |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 537,427 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2020-06-29 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 463,759 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction [Line Items] | |
Deferred revenue, expected timing of satisfaction | 1 year |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-06-28 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 73,668 |
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]: 2023-06-26 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 0 |
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 | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 10,044,736 | $ 9,653,559 | $ 11,076,998 |
Systems Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 6,625,130 | 6,451,104 | |
Customer support-related revenue and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 3,419,606 | $ 3,202,455 |
Revenue - Schedule of System Re
Revenue - Schedule of System Revenues of Primary Markets (Details) - Systems revenue | 12 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
Memory | ||
Concentration Risk [Line Items] | ||
Concentration by percent | 58.00% | 70.00% |
Foundry | ||
Concentration Risk [Line Items] | ||
Concentration by percent | 31.00% | 20.00% |
Logic/integrated device manufacturing | ||
Concentration Risk [Line Items] | ||
Concentration by percent | 11.00% | 10.00% |
Equity-based Compensation Pla_3
Equity-based Compensation Plans - Additional Information (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 28, 2020USD ($)d$ / sharesshares | Jun. 30, 2019shares | Jun. 24, 2018shares | |
Share-based Payment Arrangement [Abstract] | |||
Options and restricted stock units vesting period, years | 3 years | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted-Average Remaining Life (Years) | 4 years 2 months 12 days | ||
Weighted-Average Exercise Price (usd per share) | $ / shares | $ 144.63 | ||
Exercisable options outstanding (shares) | 243,541 | ||
Weighted-average remaining life, years | 3 years 2 months 12 days | ||
Weighted-average exercise price options exercisable (usd per share) | $ / shares | $ 110.77 | ||
Total unrecognized compensation expense related to unvested stock options | $ | $ 6.8 | ||
Market-Based PRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock price performance measurement period | d | 50 | ||
Percentage increase in market-based PRSUs from target | 2.00% | ||
Percentage increase in common stock price exceeding market price performance | 1.00% | ||
Newly granted (shares) | 86,000 | 134,000 | 149,000 |
Market-Based PRSUs | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock to be issued, vesting percentage | 0.00% | ||
Market-Based PRSUs | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Common stock to be issued, vesting percentage | 150.00% | ||
Market-Based PRSUs | Tranche Two | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average remaining period for recognition, years | 2 years 2 months 12 days | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Unrecognized compensation expense | $ | $ 293.2 | ||
Weighted average remaining period for recognition, years | 2 years 2 months 12 days | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (shares) | 6,400,000 | ||
Unrecognized compensation expense | $ | $ 30 | ||
Weighted average remaining period for recognition, years | 10 months | ||
Purchase price per share, percent | 85.00% | ||
Shares sold to employees (shares) | 512,000 | ||
2015 Stock Incentive Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for issuance (shares) | 18,000,000 | ||
2007 Stock Incentive Plan added to the shares available for issuance under the 2015 Stock Incentive Plan (shares) | 1,232,068 | ||
Stock Plans | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (shares) | 8,909,055 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 85,433,000 | $ 98,771,000 | $ 85,813,000 |
Interest expense | (177,440,000) | (117,263,000) | (97,387,000) |
Gains on deferred compensation plan related assets, net | 5,999,000 | 10,464,000 | 14,692,000 |
Loss on impairment of investments | 0 | 0 | |
Loss on impairment of investments | (42,456,000) | ||
Foreign exchange (losses) gains, net | (3,317,000) | 826,000 | (3,382,000) |
Other, net | (9,499,000) | (10,959,000) | (18,790,000) |
Other income (expense), net | (98,824,000) | (18,161,000) | $ (61,510,000) |
Debt Instrument [Line Items] | |||
Long-term debt | 5,848,460,000 | ||
Senior notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,000,000,000 | $ 2,500,000,000 |
Equity-based Compensation Pla_4
Equity-based Compensation Plans - Recognized Equity Based Compensation Expenses and Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Equity-based compensation expense | $ 189,197 | $ 187,234 | $ 172,216 |
Income tax benefit recognized related to equity-based compensation | 36,135 | 47,396 | 87,505 |
Income tax benefit realized from the exercise and vesting of options and RSUs | $ 67,060 | $ 49,242 | $ 90,297 |
Equity-based Compensation Pla_5
Equity-based Compensation Plans - Summary of Stock Plan Activity (Details) - $ / shares | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Number of Shares | |||
Beginning balance (shares) | 494,883 | 482,928 | 594,059 |
Granted (shares) | 34,236 | 181,450 | 63,980 |
Exercised (shares) | (118,334) | (110,427) | (166,481) |
Forfeited or expired (shares) | (4,948) | (59,068) | (8,630) |
Ending balance (shares) | 405,837 | 494,883 | 482,928 |
Weighted-Average Exercise Price | |||
Beginning balance (usd per share) | $ 115.96 | $ 86.53 | $ 66.69 |
Granted (usd per share) | 300.33 | 164.54 | 190.07 |
Exercised (usd per share) | 68.31 | 61.69 | 55.62 |
Forfeited or expired (usd per share) | 179.39 | 126.05 | 84.44 |
Ending balance (usd per share) | $ 144.63 | $ 115.96 | $ 86.53 |
Service-based RSUs Outstanding | |||
Number of Shares | |||
Beginning balance (shares) | 1,796,885 | 2,193,088 | 2,687,606 |
Granted (shares) | 616,353 | 893,622 | 964,391 |
Vested (shares) | (912,409) | (1,135,284) | (1,362,369) |
Forfeited or canceled (shares) | (94,265) | (154,541) | (96,540) |
Ending balance (shares) | 1,406,564 | 1,796,885 | 2,193,088 |
Weighted-Average Grant Date Fair Value | |||
Beginning balance (usd per share) | $ 159.36 | $ 134.34 | $ 92.01 |
Granted (usd per share) | 280.08 | 161.64 | 183.97 |
Vested (usd per share) | 151.53 | 115.23 | 87.80 |
Forfeited or canceled (usd per share) | 176.30 | 141.38 | 108.67 |
Ending balance (usd per share) | $ 216.34 | $ 159.36 | $ 134.34 |
Market-based RSUs Outstanding | |||
Number of Shares | |||
Beginning balance (shares) | 434,774 | 693,726 | 862,455 |
Granted (shares) | 171,526 | 163,529 | 285,866 |
Vested (shares) | (257,787) | (301,622) | (407,024) |
Forfeited or canceled (shares) | (33,403) | (120,859) | (47,571) |
Ending balance (shares) | 315,110 | 434,774 | 693,726 |
Weighted-Average Grant Date Fair Value | |||
Beginning balance (usd per share) | $ 144.57 | $ 104.59 | $ 83.83 |
Granted (usd per share) | 216.04 | 148.50 | 125.56 |
Vested (usd per share) | 111.75 | 70.58 | 76.88 |
Forfeited or canceled (usd per share) | 160.83 | 104.73 | 91.36 |
Ending balance (usd per share) | $ 208.60 | $ 144.57 | $ 104.59 |
Equity-based Compensation Pla_6
Equity-based Compensation Plans - Schedule of Weighted Average Assumptions (Details) - $ / shares | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Market-Based PRSUs | |||
Assumptions: | |||
Expected volatility | 35.81% | 32.65% | 34.07% |
Risk-free interest rate | 0.85% | 2.52% | 2.35% |
Expected term (years) | 2 years 11 months 1 day | 2 years 11 months 1 day | 2 years 11 months 1 day |
Dividend yield | 1.53% | 2.49% | 1.05% |
Resulting grant date fair value (usd per share) | $ 320.69 | $ 165.78 | $ 170.15 |
Stock Options | |||
Assumptions: | |||
Expected volatility | 33.89% | 32.23% | 34.66% |
Risk-free interest rate | 0.88% | 2.62% | 2.53% |
Expected term (years) | 4 years 7 months 17 days | 4 years 8 months 12 days | 4 years 8 months 26 days |
Dividend yield | 1.53% | 2.70% | 1.05% |
Equity-based Compensation Pla_7
Equity-based Compensation Plans - Intrinsic of Stock Options (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Share-based Payment Arrangement [Abstract] | |||
Intrinsic value - options outstanding | $ 64,077 | $ 35,674 | $ 43,563 |
Intrinsic value - options exercisable | 46,698 | 30,139 | 34,661 |
Intrinsic value - options exercised | $ 21,137 | $ 12,750 | $ 23,925 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 44,739 | $ (59,876) | $ 128,190 |
Foreign | 2,530,239 | 2,506,447 | 3,023,599 |
Income before income taxes | $ 2,574,978 | $ 2,446,571 | $ 3,151,789 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Federal: | |||
Current | $ 216,513 | $ 143,845 | $ 630,148 |
Deferred | (18,458) | (10,722) | 12,871 |
Federal Tax Provision (Benefit) | 198,055 | 133,123 | 643,019 |
State: | |||
Current | 4,724 | 5,994 | 5,348 |
Deferred | 6,524 | 4,944 | (3,273) |
State Tax Provision (Benefit) | 11,248 | 10,938 | 2,075 |
Foreign: | |||
Current | 119,766 | 110,283 | 132,566 |
Deferred | (5,844) | 797 | (6,552) |
Foreign Tax Provision (Benefit) | 113,922 | 111,080 | 126,014 |
Total provision for income taxes | $ 323,225 | $ 255,141 | $ 771,108 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | Jun. 25, 2017 | |
Income Taxes [Line Items] | ||||
Valuation allowance for deferred tax assets | $ 244,973 | $ 226,928 | ||
U.S. federal statutory tax rate (as a percent) | 21.00% | 21.00% | 28.27% | |
Unremitted earnings of foreign subsidiaries | $ 539,300 | |||
Withholding taxes on unremitted foreign earning | 86,400 | |||
Unrecognized tax benefits | 476,695 | $ 420,772 | $ 305,413 | $ 339,447 |
Increase in unrecognized tax benefits | 55,900 | |||
Unrecognized tax benefits that would impact effective tax rate | 423,800 | 376,000 | 268,300 | |
Gross interest and penalties, relating to unrecognized tax benefits accrued | 40,200 | $ 19,100 | $ 13,000 | |
Estimated potential impact | ||||
Income Taxes [Line Items] | ||||
Estimated potential impact | 74,500 | |||
Tax examinations or lapses of statute of limitations | ||||
Income Taxes [Line Items] | ||||
Estimated unrecognized tax benefits reduction | 17,500 | |||
Federal | ||||
Income Taxes [Line Items] | ||||
Net operating loss carry-forwards | 29,100 | |||
State | ||||
Income Taxes [Line Items] | ||||
Net operating loss carry-forwards | 91,400 | |||
Federal and state tax credit carry forward | 360,000 | |||
California and Foreign | ||||
Income Taxes [Line Items] | ||||
Valuation allowance for deferred tax assets | $ 245,000 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Jun. 30, 2019 |
Deferred tax assets: | ||
Tax carryforwards | $ 249,874 | $ 231,390 |
Allowances and reserves | 119,974 | 97,671 |
Equity-based compensation | 7,167 | 14,661 |
Inventory valuation differences | 26,069 | 18,516 |
Prepaid cost sharing | 0 | 74,139 |
Outside basis differences of foreign subsidiaries | 105,159 | 16,260 |
Operating lease liabilities | 40,157 | 0 |
Other | 26,361 | 17,972 |
Gross deferred tax assets | 574,761 | 470,609 |
Valuation allowance | (244,973) | (226,928) |
Net deferred tax assets | 329,788 | 243,681 |
Deferred tax liabilities: | ||
Intangible assets | (6,442) | (9,883) |
Convertible debt | (24,530) | (46,993) |
Capital assets | (105,508) | (83,298) |
Amortization of goodwill | (12,256) | (11,299) |
Right-of-use assets | (40,157) | 0 |
Other | (7,509) | (8,752) |
Gross deferred tax liabilities | (196,402) | (160,225) |
Net deferred tax assets | $ 133,386 | $ 83,456 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Income Tax Expense Provided at Federal Statutory Rate to Actual Income Expense (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense computed at federal statutory rate | $ 540,745 | $ 513,780 | $ 891,011 |
State income taxes, net of federal tax benefit | (28,046) | (17,565) | (50,585) |
Foreign income taxed at different rates | (146,023) | (260,344) | (939,808) |
Settlements and reductions in uncertain tax positions | (12,854) | (31,291) | (33,367) |
Tax credits | (88,762) | (71,779) | (69,301) |
State valuation allowance, net of federal tax benefit | 30,923 | 26,742 | 57,302 |
Equity-based compensation | (23,248) | (7,566) | (35,875) |
Other permanent differences and miscellaneous items | 50,490 | 39,251 | 43,214 |
U.S. tax reform impacts | 0 | 63,913 | 908,517 |
Total provision for income taxes | $ 323,225 | $ 255,141 | $ 771,108 |
Income Taxes - Changes in Balan
Income Taxes - Changes in Balance of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Changes in Gross Unrecognized Tax Benefits | |||
Beginning balance | $ 420,772 | $ 305,413 | $ 339,447 |
Settlements and effective settlements with tax authorities | (1,836) | (3,705) | (693) |
Lapse of statute of limitations | (8,026) | (28,176) | (88,837) |
Increases in balances related to tax positions taken during prior periods | 3,206 | 78,927 | 2,044 |
Decreases in balances related to tax positions taken during prior periods | (3,989) | (1,577) | (1,320) |
Increases in balances related to tax positions taken during current period | 66,568 | 69,890 | 54,772 |
Ending balance | $ 476,695 | $ 420,772 | $ 305,413 |
Net Income per Share - Schedule
Net Income per Share - Schedule of Numerators and Denominators of Basic and Diluted Computations for Net Income Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Numerator: | |||
Net income | $ 2,251,753 | $ 2,191,430 | $ 2,380,681 |
Denominator: | |||
Basic average shares outstanding | 144,814 | 152,478 | 161,643 |
Effect of potential dilutive securities: | |||
Employee stock plans (shares) | 1,236 | 1,323 | 2,312 |
Convertible notes (shares) | 3,040 | 5,610 | 12,258 |
Warrants (shares) | 0 | 504 | 4,569 |
Diluted average shares outstanding | 149,090 | 159,915 | 180,782 |
Net income per share - basic (usd per share) | $ 15.55 | $ 14.37 | $ 14.73 |
Net income per share - diluted (usd per share) | $ 15.10 | $ 13.70 | $ 13.17 |
Net Income per Share - Schedu_2
Net Income per Share - Schedule of Potentially Dilutive Securities Excluded from EPS Calculations (Details) - shares shares in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Earnings Per Share [Abstract] | |||
Options and RSUs (shares) | 206 | 578 | 34 |
Financial Instruments - Cash, C
Financial Instruments - Cash, Cash Equivalents, Short-Term Investments, Restricted Cash and Investments and Other Assets Measured at Fair Value on Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt securities, Cost | $ 5,980,645 | ||
Total Cost | 7,027,291 | $ 5,760,736 | |
Total, Unrealized Gain | 10,543 | 3,836 | |
Total, Unrealized (Loss) | (1,244) | (451) | |
Total, Fair Value | 7,036,590 | 5,764,121 | |
Cash and Cash Equivalents | 4,915,172 | 3,658,219 | $ 4,512,257 |
Investments | 1,795,080 | 1,772,984 | |
Restricted Cash & Investments | 253,911 | 255,177 | |
Other Assets | 72,427 | 77,741 | |
Cash | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 977,862 | 467,460 | |
Cash and Cash Equivalents | 973,978 | 462,310 | |
Investments | 0 | 0 | |
Restricted Cash & Investments | 3,884 | 5,150 | |
Other Assets | 0 | 0 | |
Time deposit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 2,244,655 | 1,563,686 | |
Cash and Cash Equivalents | 1,994,628 | 1,313,659 | |
Investments | 0 | 0 | |
Restricted Cash & Investments | 250,027 | 250,027 | |
Other Assets | 0 | 0 | |
Level 1 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total Cost | 2,330,222 | 2,187,275 | |
Total, Unrealized Gain | 4,944 | 1,346 | |
Total, Unrealized (Loss) | (937) | (307) | |
Total, Fair Value | 2,334,229 | 2,188,314 | |
Cash and Cash Equivalents | 1,786,342 | 1,731,640 | |
Investments | 475,460 | 378,933 | |
Restricted Cash & Investments | 0 | 0 | |
Other Assets | 72,427 | 77,741 | |
Level 1 | Money market funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt securities, Cost | 1,709,350 | 1,644,659 | |
Debt securities, Unrealized Gain | 0 | 0 | |
Debt securities, Unrealized (Loss) | 0 | 0 | |
Debt securities, Fair Value | 1,709,350 | 1,644,659 | |
Cash and Cash Equivalents | 1,709,350 | 1,644,659 | |
Investments | 0 | 0 | |
Restricted Cash & Investments | 0 | 0 | |
Other Assets | 0 | 0 | |
Level 1 | U.S. Treasury and agencies | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt securities, Cost | 552,088 | 465,655 | |
Debt securities, Unrealized Gain | 373 | 283 | |
Debt securities, Unrealized (Loss) | (9) | (24) | |
Debt securities, Fair Value | 552,452 | 465,914 | |
Cash and Cash Equivalents | 76,992 | 86,981 | |
Investments | 475,460 | 378,933 | |
Restricted Cash & Investments | 0 | 0 | |
Other Assets | 0 | 0 | |
Level 1 | Mutual funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Trading securities, Cost | 68,784 | 76,961 | |
Trading securities, Unrealized Gain | 4,571 | 1,063 | |
Trading securities, Unrealized (Loss) | (928) | (283) | |
Trading securities, Fair Value | 72,427 | 77,741 | |
Cash and Cash Equivalents | 0 | 0 | |
Investments | 0 | 0 | |
Restricted Cash & Investments | 0 | 0 | |
Other Assets | 72,427 | 77,741 | |
Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total Cost | 1,474,552 | 1,542,315 | |
Total, Unrealized Gain | 5,599 | 2,490 | |
Total, Unrealized (Loss) | (307) | (144) | |
Total, Fair Value | 1,479,844 | 1,544,661 | |
Cash and Cash Equivalents | 160,224 | 150,610 | |
Investments | 1,319,620 | 1,394,051 | |
Restricted Cash & Investments | 0 | 0 | |
Other Assets | 0 | 0 | |
Level 2 | Government-sponsored enterprises | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt securities, Cost | 31,442 | 16,005 | |
Debt securities, Unrealized Gain | 12 | 5 | |
Debt securities, Unrealized (Loss) | 0 | (41) | |
Debt securities, Fair Value | 31,454 | 15,969 | |
Cash and Cash Equivalents | 25,999 | 0 | |
Investments | 5,455 | 15,969 | |
Restricted Cash & Investments | 0 | 0 | |
Other Assets | 0 | 0 | |
Level 2 | Foreign government bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt securities, Cost | 10,693 | 24,408 | |
Debt securities, Unrealized Gain | 28 | 35 | |
Debt securities, Unrealized (Loss) | (5) | 0 | |
Debt securities, Fair Value | 10,716 | 24,443 | |
Cash and Cash Equivalents | 2,540 | 0 | |
Investments | 8,176 | 24,443 | |
Restricted Cash & Investments | 0 | 0 | |
Other Assets | 0 | 0 | |
Level 2 | Corporate notes and bonds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt securities, Cost | 1,405,615 | 1,466,167 | |
Debt securities, Unrealized Gain | 5,344 | 2,310 | |
Debt securities, Unrealized (Loss) | (302) | (99) | |
Debt securities, Fair Value | 1,410,657 | 1,468,378 | |
Cash and Cash Equivalents | 131,685 | 150,610 | |
Investments | 1,278,972 | 1,317,768 | |
Restricted Cash & Investments | 0 | 0 | |
Other Assets | 0 | 0 | |
Level 2 | Mortgage backed securities - residential | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt securities, Cost | 3,142 | 6,148 | |
Debt securities, Unrealized Gain | 71 | 0 | |
Debt securities, Unrealized (Loss) | 0 | (4) | |
Debt securities, Fair Value | 3,213 | 6,144 | |
Cash and Cash Equivalents | 0 | 0 | |
Investments | 3,213 | 6,144 | |
Restricted Cash & Investments | 0 | 0 | |
Other Assets | 0 | 0 | |
Level 2 | Mortgage backed securities - commercial | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt securities, Cost | 23,660 | 29,587 | |
Debt securities, Unrealized Gain | 144 | 140 | |
Debt securities, Unrealized (Loss) | 0 | 0 | |
Debt securities, Fair Value | 23,804 | 29,727 | |
Cash and Cash Equivalents | 0 | 0 | |
Investments | 23,804 | 29,727 | |
Restricted Cash & Investments | 0 | 0 | |
Other Assets | $ 0 | $ 0 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Fair Value Disclosures [Abstract] | |||
Other-than-temporary impairment charge | $ 42,456,000 | ||
Other-than-temporary impairment charge | $ 0 | $ 0 | |
Financial Instruments [Line Items] | |||
Net unrealized (losses) gains during the period | (30,603,000) | 2,461,000 | |
Losses that remain in accumulated other comprehensive income | $ (28,466,000) | $ (288,000) | |
Accounts Receivable | Customer 1 | |||
Financial Instruments [Line Items] | |||
Concentration by percent | 21.00% | 18.00% | |
Accounts Receivable | Customer 2 | |||
Financial Instruments [Line Items] | |||
Concentration by percent | 12.00% | 15.00% | |
Accounts Receivable | Customer 3 | |||
Financial Instruments [Line Items] | |||
Concentration by percent | 11.00% | ||
Accounts Receivable | Customer 4 | |||
Financial Instruments [Line Items] | |||
Concentration by percent | 10.00% | ||
Foreign exchange and interest rate contracts | |||
Financial Instruments [Line Items] | |||
Foreign exchange contracts amount of offset, assets | $ 900,000 | ||
Foreign exchange contracts amount of offset, liabilities | 900,000 | ||
Net derivative asset from master netting agreements | 1,100,000 | ||
Net derivative liability from master netting agreements | $ 600,000 | ||
Foreign exchange contracts | |||
Financial Instruments [Line Items] | |||
Foreign exchange contracts amount of offset, assets | $ 2,400,000 | ||
Foreign exchange contracts amount of offset, liabilities | 2,400,000 | ||
Net derivative asset from master netting agreements | 500,000 | ||
Net derivative liability from master netting agreements | $ 6,200,000 | ||
Cash flow hedging | |||
Financial Instruments [Line Items] | |||
Reclassification from other comprehensive income to earnings, period | 4 years 8 months 12 days | ||
Gains accumulated in other comprehensive income expected to reclassify from other comprehensive income into earnings | $ 300,000 | ||
Losses accumulated in other comprehensive income expects to reclassify from other comprehensive income into earnings, interest rate contracts | (2,000,000) | ||
Cash flow hedging | Interest Rate Swap [Member] | |||
Financial Instruments [Line Items] | |||
Notional Value | 400,000,000 | ||
Net unrealized (losses) gains during the period | (31,500,000) | ||
Losses that remain in accumulated other comprehensive income | $ (31,100,000) | ||
Reclassification from other comprehensive income to earnings, period | 10 years | ||
Minimum | Cash flow hedging | |||
Financial Instruments [Line Items] | |||
Foreign currency forward contract, expiration period | 12 months | ||
Maximum | Cash flow hedging | |||
Financial Instruments [Line Items] | |||
Foreign currency forward contract, expiration period | 24 months |
Financial Instruments - Schedul
Financial Instruments - Schedule of Cash, Cash Equivalents, Short-Term Investments and Restricted Cash and Investments Unrealized Loss Positions (Details) $ in Thousands | Jun. 28, 2020USD ($) |
Fair Value | |
Unrealized Losses Less than 12 Months | $ 534,040 |
Unrealized Losses 12 Months or Greater | 5,011 |
Total | 539,051 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months | (605) |
Unrealized Losses 12 Months or Greater | (639) |
Total | (1,244) |
U.S. Treasury and agencies | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 189,437 |
Unrealized Losses 12 Months or Greater, available for sale | 0 |
Total, available for sale | 189,437 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (9) |
Unrealized Losses 12 Months or Greater, available for sale | 0 |
Total, available for sale | (9) |
Mutual funds | |
Fair Value | |
Unrealized Losses Less than 12 Months, trading | 2,623 |
Unrealized Losses 12 Months or Greater, trading | 5,011 |
Total, trading | 7,634 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, trading | (289) |
Unrealized Losses 12 Months or Greater | (639) |
Total, trading | (928) |
Foreign government bonds | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 9,056 |
Unrealized Losses 12 Months or Greater, available for sale | 0 |
Total, available for sale | 9,056 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (5) |
Unrealized Losses 12 Months or Greater, available for sale | 0 |
Total, available for sale | (5) |
Corporate notes and bonds | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 332,924 |
Unrealized Losses 12 Months or Greater, available for sale | 0 |
Total, available for sale | 332,924 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (302) |
Unrealized Losses 12 Months or Greater, available for sale | 0 |
Total, available for sale | $ (302) |
Financial Instruments - Sched_2
Financial Instruments - Schedule of Amortized Cost and Fair Value of Cash Equivalents, Short-Term Investments, and Restricted Cash and Investments with Contractual Maturities (Details) $ in Thousands | Jun. 28, 2020USD ($) |
Cost | |
Due in one year or less | $ 5,527,654 |
Due after one year through five years | 433,973 |
Due in more than five years | 19,018 |
Debt securities, Cost | 5,980,645 |
Estimated Fair Value | |
Due in one year or less | 5,529,241 |
Due after one year through five years | 437,872 |
Due in more than five years | 19,188 |
Estimated fair value due, Total | $ 5,986,301 |
Financial Instruments - Sched_3
Financial Instruments - Schedule of Outstanding Foreign Currency Contracts (Details) - Foreign currency forward contracts - Foreign currency forward contracts $ in Thousands | Jun. 28, 2020USD ($) |
Derivatives Designated As Hedging Instruments | Buy Contracts | |
Derivative [Line Items] | |
Notional Value | $ 75,004 |
Derivatives Designated As Hedging Instruments | Buy Contracts | Japanese yen | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Buy Contracts | Euro | |
Derivative [Line Items] | |
Notional Value | 54,512 |
Derivatives Designated As Hedging Instruments | Buy Contracts | Korean won | |
Derivative [Line Items] | |
Notional Value | 20,492 |
Derivatives Designated As Hedging Instruments | Buy Contracts | Taiwan dollar | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Buy Contracts | Chinese renminbi | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Buy Contracts | Swiss franc | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Buy Contracts | British pound sterling | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Buy Contracts | Singapore dollar | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Buy Contracts | Indian rupee | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Buy Contracts | Malaysia, Ringgits | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Sell Contracts | |
Derivative [Line Items] | |
Notional Value | 299,450 |
Derivatives Designated As Hedging Instruments | Sell Contracts | Japanese yen | |
Derivative [Line Items] | |
Notional Value | 299,450 |
Derivatives Designated As Hedging Instruments | Sell Contracts | Euro | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Sell Contracts | Korean won | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Sell Contracts | Taiwan dollar | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Sell Contracts | Chinese renminbi | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Sell Contracts | Swiss franc | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Sell Contracts | British pound sterling | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Sell Contracts | Singapore dollar | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Sell Contracts | Indian rupee | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Designated As Hedging Instruments | Sell Contracts | Malaysia, Ringgits | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Not Designated as Hedging Instruments | Buy Contracts | |
Derivative [Line Items] | |
Notional Value | 188,580 |
Derivatives Not Designated as Hedging Instruments | Buy Contracts | Japanese yen | |
Derivative [Line Items] | |
Notional Value | 22,475 |
Derivatives Not Designated as Hedging Instruments | Buy Contracts | Euro | |
Derivative [Line Items] | |
Notional Value | 36,113 |
Derivatives Not Designated as Hedging Instruments | Buy Contracts | Korean won | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Not Designated as Hedging Instruments | Buy Contracts | Taiwan dollar | |
Derivative [Line Items] | |
Notional Value | 47,612 |
Derivatives Not Designated as Hedging Instruments | Buy Contracts | Chinese renminbi | |
Derivative [Line Items] | |
Notional Value | 35,071 |
Derivatives Not Designated as Hedging Instruments | Buy Contracts | Swiss franc | |
Derivative [Line Items] | |
Notional Value | 12,672 |
Derivatives Not Designated as Hedging Instruments | Buy Contracts | British pound sterling | |
Derivative [Line Items] | |
Notional Value | 11,191 |
Derivatives Not Designated as Hedging Instruments | Buy Contracts | Singapore dollar | |
Derivative [Line Items] | |
Notional Value | 10,062 |
Derivatives Not Designated as Hedging Instruments | Buy Contracts | Indian rupee | |
Derivative [Line Items] | |
Notional Value | 7,772 |
Derivatives Not Designated as Hedging Instruments | Buy Contracts | Malaysia, Ringgits | |
Derivative [Line Items] | |
Notional Value | 5,612 |
Derivatives Not Designated as Hedging Instruments | Sell Contracts | |
Derivative [Line Items] | |
Notional Value | 50,715 |
Derivatives Not Designated as Hedging Instruments | Sell Contracts | Japanese yen | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Not Designated as Hedging Instruments | Sell Contracts | Euro | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Not Designated as Hedging Instruments | Sell Contracts | Korean won | |
Derivative [Line Items] | |
Notional Value | 50,715 |
Derivatives Not Designated as Hedging Instruments | Sell Contracts | Taiwan dollar | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Not Designated as Hedging Instruments | Sell Contracts | Chinese renminbi | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Not Designated as Hedging Instruments | Sell Contracts | Swiss franc | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Not Designated as Hedging Instruments | Sell Contracts | British pound sterling | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Not Designated as Hedging Instruments | Sell Contracts | Singapore dollar | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Not Designated as Hedging Instruments | Sell Contracts | Indian rupee | |
Derivative [Line Items] | |
Notional Value | 0 |
Derivatives Not Designated as Hedging Instruments | Sell Contracts | Malaysia, Ringgits | |
Derivative [Line Items] | |
Notional Value | $ 0 |
Financial Instruments - Sched_4
Financial Instruments - Schedule of Fair Value of Derivative Instruments (Details) - Level 2 - USD ($) $ in Thousands | Jun. 28, 2020 | Jun. 30, 2019 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | $ 2,017 | $ 2,905 |
Liability Derivatives, Fair Value | 1,475 | 8,653 |
Prepaid expense and other assets | Derivatives Designated As Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | 1,862 | 119 |
Prepaid expense and other assets | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | 155 | 1,249 |
Accrued expenses and other current liabilities | Derivatives Designated As Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Derivatives, Fair Value | 1,405 | 2,756 |
Accrued expenses and other current liabilities | Derivatives Designated As Hedging Instruments | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Derivatives, Fair Value | 5,149 | |
Accrued expenses and other current liabilities | Derivatives Not Designated as Hedging Instruments | Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Derivatives, Fair Value | $ 70 | 748 |
Other assets | Derivatives Designated As Hedging Instruments | Interest rate contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | $ 1,537 |
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 | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Recognized in AOCI | $ (39,777) | $ 2,724 | |
Gain or (loss) on cash flow hedging relationships | (2,884) | 2,417 | |
Revenue | 10,044,736 | 9,653,559 | $ 11,076,998 |
Cost of goods sold | 5,436,043 | 5,295,100 | 5,911,966 |
Selling, general, and administrative | 682,479 | 702,407 | 762,219 |
Other Income (Expense) | (98,824) | (18,161) | $ (61,510) |
Foreign exchange contracts | Revenue | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Recognized in AOCI | 4,095 | 8,143 | |
Gain or (loss) on cash flow hedging relationships | 2,418 | 10,821 | |
Foreign exchange contracts | Revenue | Cash flow hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain or (loss) on cash flow hedging relationships | 2,418 | ||
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 | (2,104) | (3,801) | |
Gain or (loss) on cash flow hedging relationships | (3,101) | (5,949) | |
Foreign exchange contracts | Cost of goods sold | Cash flow hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain or (loss) on cash flow hedging relationships | (3,101) | ||
Foreign exchange contracts | SG&A | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Recognized in AOCI | (1,158) | (1,618) | |
Gain or (loss) on cash flow hedging relationships | (1,501) | (2,321) | |
Foreign exchange contracts | SG&A | Cash flow hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain or (loss) on cash flow hedging relationships | (1,501) | ||
Foreign exchange contracts | Other income | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Loss Recognized in Income | (5,971) | 4,124 | |
Foreign exchange contracts | Other Income (Expense) | Cash flow hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain or (loss) on cash flow hedging relationships | 0 | ||
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 | 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 | 0 | ||
Interest rate contracts | Revenue | Cash flow hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain or (loss) on cash flow hedging relationships | 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 | 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 | 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 or (loss) on cash flow hedging relationships | 0 | ||
Interest rate contracts | SG&A | Fair value hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain or (loss) on fair value hedging relationships | 0 | ||
Interest rate contracts | SG&A | Fair value hedging | Derivatives Designated As Hedging Instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain or (loss) on fair value hedging relationships | 0 | ||
Interest rate contracts | SG&A | Cash flow hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain or (loss) on cash flow hedging relationships | 0 | ||
Interest rate contracts | Other Income (Expense) | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain (Loss) Recognized in AOCI | (40,610) | 0 | |
Gain or (loss) on cash flow hedging relationships | (700) | $ (134) | |
Interest rate contracts | Other Income (Expense) | Fair value hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain or (loss) on fair value hedging relationships | (12,882) | ||
Interest rate contracts | Other Income (Expense) | Fair value hedging | Derivatives Designated As Hedging Instruments | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain or (loss) on fair value hedging relationships | 12,882 | ||
Interest rate contracts | Other Income (Expense) | Cash flow hedging | |||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||
Gain or (loss) on cash flow hedging relationships | $ (700) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Jun. 30, 2019 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,161,961 | $ 994,738 |
Work-in-process | 251,199 | 174,219 |
Finished goods | 486,864 | 371,183 |
Total inventories | $ 1,900,024 | $ 1,540,140 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Property, Plant and Equipment [Abstract] | |||
Property and Equipment, net | $ 18,409 | ||
Depreciation expense | $ 198,800 | $ 182,100 | $ 165,200 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment Net (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Jun. 30, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,135,917 | $ 2,022,759 |
Less: accumulated depreciation and amortization | (1,082,827) | (963,682) |
Property and equipment, net | 1,053,090 | 1,059,077 |
Manufacturing and engineering equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,154,668 | 1,039,454 |
Buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 660,865 | 664,061 |
Computer and computer-related equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 178,193 | 190,974 |
Office equipment, furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 83,386 | 82,115 |
Land | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 58,805 | $ 46,155 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 1,484,436,000 | $ 1,484,597,000 | |
Tax deductible goodwill | 61,100,000 | ||
Impairments of goodwill | 0 | 0 | $ 0 |
Intangible asset amortization expense | 66,200,000 | 127,300,000 | 161,200,000 |
intangible asset impairment | 0 | $ 0 | $ 0 |
Capitalized costs not yet been placed into service | $ 12,300,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Jun. 30, 2019 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 1,397,471 | $ 1,425,799 |
Accumulated Amortization | (1,228,939) | (1,208,849) |
Net | 168,532 | 216,950 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 630,137 | 630,165 |
Accumulated Amortization | (532,550) | (483,204) |
Net | 97,587 | 146,961 |
Existing technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 668,992 | 669,399 |
Accumulated Amortization | (654,382) | (647,837) |
Net | 14,610 | 21,562 |
Patents and other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 98,342 | 126,235 |
Accumulated Amortization | (42,007) | (77,808) |
Net | $ 56,335 | $ 48,427 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Future Amortization Expense of Intangible Assets (Details) $ in Thousands | Jun. 28, 2020USD ($) |
Fiscal Year | |
2021 | $ 65,949 |
2022 | 61,687 |
2023 | 16,156 |
2024 | 8,561 |
2025 | 3,868 |
Thereafter | 16 |
Net | $ 156,237 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Jun. 30, 2019 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 402,401 | $ 336,090 |
Warranty reserves | 117,839 | 127,932 |
Income and other taxes payable | 215,652 | 49,926 |
Dividend payable | 167,129 | 158,868 |
Other | 369,634 | 273,825 |
Accrued expenses and other current liabilities | $ 1,272,655 | $ 946,641 |
Long Term Debt and Other Borr_3
Long Term Debt and Other Borrowings - Schedule of Outstanding Debt (Details) $ in Thousands | 12 Months Ended | ||||||
Jun. 28, 2020USD ($)d | May 05, 2020 | Jun. 30, 2019USD ($) | Mar. 04, 2019 | Jun. 07, 2016 | Mar. 12, 2015 | Jun. 30, 2012 | |
Debt Instrument [Line Items] | |||||||
Total debt outstanding, at par | $ 5,848,460 | ||||||
Total debt outstanding, at par | 5,848,460 | $ 4,512,349 | |||||
Unamortized discount | (53,086) | (73,191) | |||||
Fair value adjustment - interest rate contracts | 8,405 | (3,612) | |||||
Unamortized bond issuance costs | (8,301) | (5,535) | |||||
Total debt outstanding, at carrying value | 5,795,478 | 4,430,011 | |||||
Current portion of long-term debt | 836,107 | 662,308 | |||||
Long-term debt | 4,959,371 | 3,767,703 | |||||
Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Total debt outstanding, at par | 2,000,000 | 2,500,000 | |||||
Senior notes | 2.75% Notes due 2020 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt outstanding, at par | $ 0 | $ 500,000 | |||||
Effective Interest Rate | 0.00% | 2.88% | |||||
Interest rate percentage | 2.75% | 2.75% | |||||
Senior notes | 2.80 Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt outstanding, at par | $ 800,000 | $ 800,000 | |||||
Effective Interest Rate | 2.95% | 2.95% | |||||
Interest rate percentage | 2.80% | 2.80% | |||||
Senior notes | 3.80% Notes due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt outstanding, at par | $ 500,000 | $ 500,000 | |||||
Effective Interest Rate | 3.87% | 3.87% | |||||
Interest rate percentage | 3.80% | 3.80% | |||||
Senior notes | 3.75% Notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt outstanding, at par | $ 750,000 | $ 750,000 | |||||
Effective Interest Rate | 3.86% | 3.86% | |||||
Interest rate percentage | 3.75% | 3.75% | |||||
Senior notes | 4.00% Notes due 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt outstanding, at par | $ 1,000,000 | $ 1,000,000 | |||||
Effective Interest Rate | 4.09% | 4.09% | |||||
Interest rate percentage | 4.00% | 4.00% | |||||
Senior notes | 1.90% Notes due 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt outstanding, at par | $ 750,000 | $ 0 | |||||
Effective Interest Rate | 2.01% | 0.00% | |||||
Interest rate percentage | 1.90% | 1.90% | |||||
Senior notes | 4.875% Notes due 2049 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt outstanding, at par | $ 750,000 | $ 750,000 | |||||
Effective Interest Rate | 4.93% | 4.93% | |||||
Interest rate percentage | 4.875% | 4.875% | |||||
Senior notes | 2.875% Notes due 2050 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt outstanding, at par | $ 750,000 | $ 0 | |||||
Effective Interest Rate | 2.93% | 0.00% | |||||
Interest rate percentage | 2.875% | 2.875% | |||||
Senior notes | 3.125% Notes due 2060 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt outstanding, at par | $ 500,000 | $ 0 | |||||
Effective Interest Rate | 3.18% | 0.00% | |||||
Interest rate percentage | 3.125% | 3.125% | |||||
Convertible debt | |||||||
Debt Instrument [Line Items] | |||||||
Stock price percentage of conversion price | 130.00% | ||||||
Number of days on which common stock sale price was greater than or equal to percent of conversion price | d | 20 | ||||||
Number of consecutive trading days | d | 30 | ||||||
Convertible debt | 2.625% Notes due 2041 | |||||||
Debt Instrument [Line Items] | |||||||
Total debt outstanding, at par | $ 48,460 | $ 212,349 | |||||
Effective Interest Rate | 4.28% | 4.28% | |||||
Interest rate percentage | 2.625% | 2.625% |
Long Term Debt and Other Borr_4
Long Term Debt and Other Borrowings - Schedule of Contractual Cash Obligations (Details) $ in Thousands | Jun. 28, 2020USD ($) |
Payments Due by Fiscal Year: | |
2021 | $ 848,460 |
2022 | 0 |
2023 | 0 |
2024 | 0 |
2025 | 500,000 |
Thereafter | 4,500,000 |
Total | $ 5,848,460 |
Long Term Debt and Other Borr_5
Long Term Debt and Other Borrowings - Convertible Senior Notes Narrative (Details) | 1 Months Ended | 5 Months Ended | 12 Months Ended | |
Jun. 30, 2012USD ($) | Aug. 18, 2020USD ($) | Jun. 28, 2020USD ($)d | Jun. 30, 2019USD ($) | |
Debt Instrument [Line Items] | ||||
Long-term debt | $ 5,848,460,000 | |||
Convertible debt | ||||
Debt Instrument [Line Items] | ||||
Stock price percentage of conversion price | 130.00% | |||
Number of days on which common stock sale price was greater than or equal to percent of conversion price | d | 20 | |||
Number of consecutive trading days | d | 30 | |||
Convertible debt | 2041 Notes | ||||
Debt Instrument [Line Items] | ||||
Principal amount | $ 700,000,000 | |||
Interest rate percentage | 2.625% | 2.625% | ||
Maximum amount of contingent interest rate | 0.60% | |||
Conversion of notes | $ 163,900,000 | |||
Long-term debt | $ 48,460,000 | $ 212,349,000 | ||
Convertible debt | 2041 Notes | Conversion 2041 Notes | Subsequent event | ||||
Debt Instrument [Line Items] | ||||
Conversion of notes | $ 18,100,000 | |||
Convertible debt | 2041 Notes | Redeemable | ||||
Debt Instrument [Line Items] | ||||
Stock price percentage of conversion price | 150.00% | |||
Number of days on which common stock sale price was greater than or equal to percent of conversion price | d | 20 | |||
Number of consecutive trading days | d | 30 |
Long Term Debt and Other Borr_6
Long Term Debt and Other Borrowings - Components of Convertible Notes (Details) - 2041 Notes $ / shares in Units, shares in Thousands, $ in Thousands | 12 Months Ended | |
Jun. 28, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($) | |
Debt Instrument [Line Items] | ||
Remaining amortization period (years) | 20 years 10 months 24 days | 21 years 10 months 24 days |
Fair Value of Notes (Level 2) | $ 462,857 | |
Conversion rate (shares of common stock per $1,000 principal amount of notes) | 0.0315206 | |
Conversion price (per share of common stock) | $ / shares | $ 31.73 | |
If-converted value in excess of par value | $ 413,636 | |
Estimated share dilution using average quarterly stock price of $270.53 per share | shares | 1,348 | |
Average quarterly stock price (usd per share) | $ / shares | $ 270.53 | |
Permanent Equity | ||
Debt Instrument [Line Items] | ||
Carrying amount of equity component, net of tax | $ 161,467 | $ 160,604 |
Temporary Equity | ||
Debt Instrument [Line Items] | ||
Carrying amount of equity component, net of tax | $ 10,995 | $ 49,439 |
Long Term Debt and Other Borr_7
Long Term Debt and Other Borrowings - Senior Notes Narrative (Details) - USD ($) | Mar. 12, 2015 | Jun. 28, 2020 | May 05, 2020 | Jun. 30, 2019 | Mar. 04, 2019 | Jun. 07, 2016 |
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 5,848,460,000 | |||||
Senior notes | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | 2,000,000,000 | $ 2,500,000,000 | ||||
Senior notes | 1.90% Notes due 2030 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 750,000,000 | 0 | ||||
Principal amount | $ 750,000,000 | |||||
Interest rate percentage | 1.90% | 1.90% | ||||
Percentage of principal amount of debt redeemed | 100.00% | |||||
Debt instrument, redemption price (percentage) | 101.00% | |||||
Senior notes | 2.875% Notes due 2050 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 750,000,000 | 0 | ||||
Principal amount | $ 750,000,000 | |||||
Interest rate percentage | 2.875% | 2.875% | ||||
Percentage of principal amount of debt redeemed | 100.00% | |||||
Debt instrument, redemption price (percentage) | 101.00% | |||||
Senior notes | 3.125% Notes due 2060 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 500,000,000 | 0 | ||||
Principal amount | $ 500,000,000 | |||||
Interest rate percentage | 3.125% | 3.125% | ||||
Percentage of principal amount of debt redeemed | 100.00% | |||||
Debt instrument, redemption price (percentage) | 101.00% | |||||
Senior notes | 3.75% Notes due 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 750,000,000 | 750,000,000 | ||||
Principal amount | $ 750,000,000 | |||||
Interest rate percentage | 3.75% | 3.75% | ||||
Percentage of principal amount of debt redeemed | 100.00% | |||||
Debt instrument, redemption price (percentage) | 101.00% | |||||
Senior notes | 4.00% Notes due 2029 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 1,000,000,000 | 1,000,000,000 | ||||
Principal amount | $ 1,000,000,000 | |||||
Interest rate percentage | 4.00% | 4.00% | ||||
Percentage of principal amount of debt redeemed | 100.00% | |||||
Debt instrument, redemption price (percentage) | 101.00% | |||||
Senior notes | 4.875% Notes due 2049 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 750,000,000 | 750,000,000 | ||||
Principal amount | $ 750,000,000 | |||||
Interest rate percentage | 4.875% | 4.875% | ||||
Percentage of principal amount of debt redeemed | 100.00% | |||||
Debt instrument, redemption price (percentage) | 101.00% | |||||
Senior notes | 2.75% Notes due 2020 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 0 | 500,000,000 | ||||
Principal amount | $ 500,000,000 | |||||
Interest rate percentage | 2.75% | 2.75% | ||||
Senior notes | 3.80% Notes due 2025 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 500,000,000 | 500,000,000 | ||||
Principal amount | $ 500,000,000 | |||||
Interest rate percentage | 3.80% | 3.80% | ||||
Percentage of principal amount of debt redeemed | 100.00% | |||||
Debt instrument, redemption price (percentage) | 101.00% | |||||
Senior notes | 2.80 Notes due 2021 | ||||||
Debt Instrument [Line Items] | ||||||
Long-term debt | $ 800,000,000 | $ 800,000,000 | ||||
Principal amount | $ 800,000,000 | |||||
Interest rate percentage | 2.80% | 2.80% | ||||
Percentage of principal amount of debt redeemed | 100.00% | |||||
Debt instrument, redemption price (percentage) | 101.00% |
Long Term Debt and Other Borr_8
Long Term Debt and Other Borrowings - Schedule of Additional Senior Notes Information (Details) $ in Thousands | 12 Months Ended |
Jun. 28, 2020USD ($) | |
2021 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 1 year |
2025 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 4 years 8 months 12 days |
2026 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 5 years 8 months 12 days |
2029 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 8 years 8 months 12 days |
2030 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 10 years |
2049 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 28 years 8 months 12 days |
2050 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 30 years |
2060 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 40 years |
Level 2 | 2021 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 815,560 |
Level 2 | 2025 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | 565,985 |
Level 2 | 2026 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | 859,560 |
Level 2 | 2029 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | 1,185,430 |
Level 2 | 2030 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | 763,793 |
Level 2 | 2049 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | 1,045,035 |
Level 2 | 2050 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | 773,603 |
Level 2 | 2060 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 527,825 |
Long Term Debt and Other Borr_9
Long Term Debt and Other Borrowings - Revolving Credit Facility Narrative (Details) - Revolving credit facility - USD ($) | Feb. 25, 2019 | Jun. 28, 2020 |
Line of Credit Facility [Line Items] | ||
Revolving unsecured credit facility | $ 1,250,000,000 | |
Additional increase in the facility, available expansion | 600,000,000 | |
Revolving unsecured credit facility, available expansion | $ 1,850,000,000 | |
Commercial paper | $ 0 | |
Federal Funds rate | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate (percent) | 0.50% | |
One-month LIBOR | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate (percent) | 1.00% | |
One-month LIBOR | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate (percent) | 0.00% | |
One-month LIBOR | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate (percent) | 0.50% | |
London Interbank Offered Rate (LIBOR) | Minimum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate (percent) | 0.90% | |
London Interbank Offered Rate (LIBOR) | Maximum | ||
Line of Credit Facility [Line Items] | ||
Debt instrument basis spread on variable rate (percent) | 1.50% |
Long Term Debt and Other Bor_10
Long Term Debt and Other Borrowings - Commercial Paper Program (Details) - Commercial paper - USD ($) | Jun. 28, 2020 | Nov. 13, 2017 |
Short-term Debt [Line Items] | ||
Revolving unsecured credit facility maximum borrowing capacity | $ 1,250,000,000 | |
Commercial paper | $ 0 |
Long Term Debt and Other Bor_11
Long Term Debt and Other Borrowings - Schedule of Recognized Interest Cost (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Debt Disclosure [Abstract] | |||
Contractual interest coupon | $ 169,483 | $ 100,712 | $ 77,091 |
Amortization of interest discount | 4,280 | 3,937 | 12,225 |
Amortization of issuance costs | 1,632 | 1,426 | 2,034 |
Effect of interest rate contracts, net | 1,037 | 4,086 | 3 |
Total interest cost recognized | $ 176,432 | $ 110,161 | $ 91,353 |
Leases - Schedule of Other Oper
Leases - Schedule of Other Operating Cost and Expense, by Component (Details) $ in Thousands | 12 Months Ended |
Jun. 28, 2020USD ($) | |
Financing lease cost: | |
Amortization of right-of-use assets | $ 3,613 |
Interest on lease liabilities | 506 |
Total finance lease cost | 4,119 |
Operating lease cost | 46,101 |
Variable lease cost | $ 91,851 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows (Details) $ in Thousands | 12 Months Ended |
Jun. 28, 2020USD ($) | |
Cash paid for amounts included in the measurement of lease liabilities: | |
Operating cash flows paid for operating leases | $ 50,223 |
Financing cash flows paid for principal portion of finance leases | 3,539 |
Right-of-use assets obtained in exchange for lease obligations: | |
Operating leases | 108,816 |
Finance leases | $ 3,019 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) $ in Thousands | Jun. 28, 2020USD ($) |
Leases [Abstract] | |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssetsNoncurrent |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:AccruedLiabilitiesCurrent |
Operating leases | |
Other assets | $ 174,583 |
Accrued expenses and other current liabilities | 49,480 |
Other long-term liabilities | 123,889 |
Total operating lease liabilities | 173,369 |
Finance Leases | |
Property and Equipment, net | 18,409 |
Current portion of long-term debt and lease liabilities | 3,770 |
Long-term debt and lease liabilities | 11,477 |
Total finance lease liabilities | $ 15,247 |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:OtherLiabilitiesNoncurrent |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | lrcx:PropertyPlantandEquipmentandFinanceLeaseRightofUseAssetafterAccumulatedDepreciationandAmortization |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | us-gaap:DebtCurrent |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | us-gaap:LongTermDebtAndCapitalLeaseObligations |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) | Jun. 28, 2020 |
Leases [Abstract] | |
Weighted-Average Remaining Lease Term, Operating leases | 9 years |
Weighted-Average Discount Rate, Operating leases | 2.57% |
Weighted-Average Remaining Lease Term, Finance leases | 4 years 1 month 6 days |
Weighted-Average Discount Rate, Finance leases | 2.79% |
Leases - Operating and Finance
Leases - Operating and Finance Lease Liability (Details) $ in Thousands | Jun. 28, 2020USD ($) |
Operating Leases | |
2021 | $ 50,611 |
2022 | 31,178 |
2023 | 22,446 |
2024 | 18,279 |
2025 | 14,761 |
Thereafter | 49,660 |
Total lease payments | 186,935 |
Less imputed interest | (13,566) |
Total | 173,369 |
Finance Leases | |
2021 | 4,170 |
2022 | 6,709 |
2023 | 1,541 |
2024 | 1,080 |
2025 | 617 |
Thereafter | 2,304 |
Total lease payments | 16,421 |
Less imputed interest | (1,174) |
Total | $ 15,247 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Guarantor Obligations [Line Items] | |||
Rental expense | $ 28,100,000 | $ 23,500,000 | |
Restricted cash and investments | $ 253,911,000 | $ 255,177,000 | |
Operating Lease Cash Collateral | |||
Guarantor Obligations [Line Items] | |||
Restricted cash and investments | 250,000,000 | ||
California Operating Leases | |||
Guarantor Obligations [Line Items] | |||
Residual value of operating lease, maximum | $ 220,400,000 | ||
Maximum percentage of aggregate investment value guaranteed | 100.00% | ||
Guarantee obligation maximum exposure | $ 250,000,000 |
Retirement and Deferred Compe_2
Retirement and Deferred Compensation Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Retirement Benefits [Abstract] | |||
Minimum employee 401K contribution (percent) | 1.00% | ||
Maximum employee 401K contribution (percent) | 75.00% | ||
Employer contribution matching (percent) | 50.00% | ||
Maximum employee contributions matched by the Company (percent) | 6.00% | ||
Defined benefit plan, contribution by employer | $ 23.6 | $ 24.1 | $ 21.4 |
Payment of benefits, duration after opening of a deferral subaccount or upon retirement (at least) | 3 years | ||
Deferred compensation plan maximum distribution period | 20 years | ||
Liabilities of Company to plan participants | $ 220 | 207 | |
Assets correlated to the deferred compensation obligation | 235.1 | 228.9 | |
Defined benefit obligations | $ 41 | $ 40.5 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 |
Commitments and Contingencies Disclosure [Abstract] | |||
Liabilities related to uncertain tax benefits | $ 439,500 | ||
Loss Contingencies [Line Items] | |||
Warranty reserves | 129,197 | $ 127,932 | $ 192,480 |
Other long-term liabilities | |||
Loss Contingencies [Line Items] | |||
Warranty reserves | 11,400 | ||
Letters of credit | |||
Loss Contingencies [Line Items] | |||
Maximum potential amount of future payments | $ 58,600 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands | Jun. 28, 2020USD ($) |
Payments Due by Fiscal Year: | |
2021 | $ 541,524 |
2022 | 49,520 |
2023 | 49,520 |
2024 | 33,211 |
2025 | 33,212 |
Thereafter | 958 |
Total | $ 707,945 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Changes in Product Warranty Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 28, 2020 | Jun. 30, 2019 | |
Movement in Product Warranty Reserves | ||
Balance at beginning of period | $ 127,932 | $ 192,480 |
Warranties issued during the period | 151,508 | 249,737 |
Settlements made during the period | (131,177) | (307,079) |
Changes in liability for pre-existing warranties | (19,066) | (7,206) |
Balance at end of period | $ 129,197 | $ 127,932 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Details) | Nov. 22, 2019USD ($)financial_institutionagreementshares | Jun. 04, 2019USD ($)financial_institutionagreementshares | Mar. 31, 2020$ / sharesshares | Nov. 30, 2019$ / sharesshares | Nov. 30, 2018USD ($) | Jun. 28, 2020USD ($)$ / sharesshares | Mar. 29, 2020$ / sharesshares | Dec. 29, 2019$ / sharesshares | Sep. 29, 2019$ / sharesshares | Jun. 28, 2020USD ($)shares |
Equity [Abstract] | ||||||||||
Increase in authorized amount | $ 5,000,000,000 | |||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Net shares of settlements to cover tax withholding obligations (shares) | shares | 380,000 | |||||||||
Amount paid for shares under net share settlements | $ 109,600,000 | |||||||||
Stock repurchase programs | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Total Cost of Repurchase | $ 3,200,000,000 | 3,200,000,000 | ||||||||
Purchase of treasury stock (shares) | shares | 145,000 | 1,239,000 | 3,224,000 | 383,000 | ||||||
Weighted-average share price (usd per share) | $ / shares | $ 261.34 | $ 274.37 | $ 0 | $ 196.34 | ||||||
Purchased via open market trading | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Total Cost of Repurchase | $ 700,000,000 | 700,000,000 | ||||||||
Purchased via accelerated share repurchase arrangements | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Total Cost of Repurchase | $ 2,500,000,000 | $ 2,500,000,000 | ||||||||
November 2019 ASR | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Number of accelerated share purchase agreements | agreement | 2 | |||||||||
Number of financial institutions | financial_institution | 2 | |||||||||
Repurchase amount | $ 1,000,000,000 | |||||||||
Purchase of treasury stock (shares) | shares | 2,900,000 | 705,000 | ||||||||
Percent of prepayment amount | 75.00% | |||||||||
Weighted-average share price (usd per share) | $ / shares | $ 280.27 | |||||||||
June 2019 ARS | ||||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||||
Number of accelerated share purchase agreements | agreement | 4 | |||||||||
Number of financial institutions | financial_institution | 2 | |||||||||
Repurchase amount | $ 750,000,000 | |||||||||
Purchase of treasury stock (shares) | shares | 3,100,000 | 361,000 | ||||||||
Percent of prepayment amount | 75.00% | |||||||||
Weighted-average share price (usd per share) | $ / shares | $ 215.60 |
Stock Repurchase Program - Sche
Stock Repurchase Program - Schedule of Repurchases under Repurchase Program (Details) - USD ($) $ / shares in Units, shares in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||||
Nov. 30, 2018 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total Cost of Repurchase | $ 1,369,702,000 | $ 3,780,524,000 | $ 2,653,365,000 | |||||
Increase in authorized amount | $ 5,000,000,000 | |||||||
Stock repurchase program | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total Number of Shares Repurchased | 145 | 1,239 | 3,224 | 383 | ||||
Total Cost of Repurchase | $ 38,005,000 | $ 146,397,000 | $ 1,000,475,000 | $ 75,196,000 | ||||
Average Price Paid Per Share (usd per share) | $ 261.34 | $ 274.37 | $ 0 | $ 196.34 | ||||
Amount Available Under Repurchase Program | $ 1,773,427,000 | $ 1,811,432,000 | $ 1,957,829,000 | $ 2,958,304,000 | $ 1,773,427,000 | $ 3,033,500,000 |
Comprehensive Income (Loss) - C
Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | $ 4,673,865 | $ 6,501,851 | $ 6,817,451 |
Other comprehensive (loss) income before reclassifications | (33,240) | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) to net income | 3,059 | ||
Other comprehensive (loss) income, net of tax | (30,181) | (6,581) | 4,251 |
Ending balance | 5,172,494 | 4,673,865 | 6,501,851 |
Accumulated Foreign Currency Translation Adjustment | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | (39,370) | ||
Other comprehensive (loss) income before reclassifications | (6,428) | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) to net income | (13) | ||
Other comprehensive (loss) income, net of tax | (6,441) | ||
Ending balance | (45,811) | (39,370) | |
Accumulated Unrealized Gain or Loss on Cash Flow Hedges | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | (4,330) | ||
Other comprehensive (loss) income before reclassifications | (30,603) | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) to net income | 2,137 | ||
Other comprehensive (loss) income, net of tax | (28,466) | ||
Ending balance | (32,796) | (4,330) | |
Accumulated Unrealized Holding Gain or Loss on Available-For- Sale Investments | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | 2,146 | ||
Other comprehensive (loss) income before reclassifications | 1,842 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) to net income | 935 | ||
Other comprehensive (loss) income, net of tax | 2,777 | ||
Ending balance | 4,923 | 2,146 | |
Accumulated Unrealized Components of Defined Benefit Plans | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | (22,476) | ||
Other comprehensive (loss) income before reclassifications | 1,949 | ||
Losses (gains) reclassified from accumulated other comprehensive income (loss) to net income | 0 | ||
Other comprehensive (loss) income, net of tax | 1,949 | ||
Ending balance | (20,527) | (22,476) | |
Total | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | (64,030) | (57,449) | (61,700) |
Other comprehensive (loss) income, net of tax | (30,181) | 4,251 | |
Ending balance | $ (94,211) | $ (64,030) | $ (57,449) |
Comprehensive Income (Loss) -_2
Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Foot Notes) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Revenue | $ 10,044,736 | $ 9,653,559 | $ 11,076,998 |
Cost of goods sold | (5,436,043) | (5,295,100) | (5,911,966) |
Selling, general, and administrative | (682,479) | (702,407) | (762,219) |
Other expense, net | 98,824 | $ 18,161 | $ 61,510 |
Reclassification out of Accumulated Other Comprehensive Income | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Revenue | 2,100 | ||
Cost of goods sold | (2,600) | ||
Selling, general, and administrative | (1,100) | ||
Other expense, net | $ (500) |
Segment, Geographic Informati_3
Segment, Geographic Information and Major Customers - Additional Information (Details) | 12 Months Ended | ||
Jun. 28, 2020segmentlocation | Jun. 30, 2019 | Jun. 24, 2018 | |
Segment Reporting [Abstract] | |||
Number of reportable business segment | segment | 1 | ||
Number of geographic regions the company operates | location | 7 | ||
Revenue | Customer 1 | |||
Segment Reporting Information [Line Items] | |||
Concentration by percent | 24.00% | 15.00% | 25.00% |
Revenue | Customer 2 | |||
Segment Reporting Information [Line Items] | |||
Concentration by percent | 14.00% | 14.00% | 14.00% |
Revenue | Customer 3 | |||
Segment Reporting Information [Line Items] | |||
Concentration by percent | 10.00% | 14.00% | 14.00% |
Revenue | Customer 4 | |||
Segment Reporting Information [Line Items] | |||
Concentration by percent | 10.00% | 14.00% | 13.00% |
Revenue | Customer 5 | |||
Segment Reporting Information [Line Items] | |||
Concentration by percent | 12.00% |
Segment, Geographic Informati_4
Segment, Geographic Information and Major Customers - Revenues and Long Lived Assets by Geographic Region (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 10,044,736 | $ 9,653,559 | $ 11,076,998 |
Long-lived assets | 1,071,499 | 1,059,077 | 902,547 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 3,083,916 | 2,161,440 | 1,784,436 |
Long-lived assets | 6,261 | 6,844 | 5,466 |
Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 2,391,257 | 2,205,348 | 3,832,798 |
Long-lived assets | 40,318 | 28,200 | 24,312 |
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 1,906,223 | 1,596,261 | 1,397,978 |
Long-lived assets | 5,411 | 6,759 | 7,922 |
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 954,743 | 1,969,869 | 1,882,799 |
Long-lived assets | 5,793 | 5,750 | 3,327 |
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 812,482 | 748,601 | 820,438 |
Long-lived assets | 930,970 | 933,054 | 784,469 |
Southeast Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 587,638 | 615,813 | 781,360 |
Long-lived assets | 8,643 | 5,542 | 3,715 |
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 308,477 | 356,227 | 577,189 |
Long-lived assets | $ 74,103 | $ 72,928 | $ 73,336 |
Uncategorized Items - lrcx10k20
Label | Element | Value |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | $ 256,301,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 255,177,000 |
Restricted Cash and Cash Equivalents | us-gaap_RestrictedCashAndCashEquivalents | 253,911,000 |
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | 167,129,000 |
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | 158,868,000 |
Dividends Payable | us-gaap_DividendsPayableCurrentAndNoncurrent | 174,372,000 |
Accounting Standards Update 2014-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 139,355,000 |
Accounting Standards Update 2014-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 139,355,000 |
Accounting Standards Update 2016-09 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 40,065,000 |
Accounting Standards Update 2016-09 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 40,065,000 |
Accounting Standards Update 2016-16 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (443,000) |
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ (443,000) |