Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jun. 27, 2021 | Aug. 12, 2021 | Dec. 27, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 27, 2021 | ||
Current Fiscal Year End Date | --06-27 | ||
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 | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 53,314,078,151 | ||
Entity Common Stock, Shares Outstanding | 141,953,681 | ||
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 8, 2021, 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 | 2021 | ||
Document Fiscal Period Focus | FY | ||
Entity Central Index Key | 0000707549 |
Consolidated Statements of Oper
Consolidated Statements of Operations - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | |||
Revenue | $ 14,626,150 | $ 10,044,736 | $ 9,653,559 |
Cost of goods sold | 7,820,844 | 5,436,043 | 5,295,100 |
Gross margin | 6,805,306 | 4,608,693 | 4,358,459 |
Research and development | 1,493,408 | 1,252,412 | 1,191,320 |
Selling, general, and administrative | 829,875 | 682,479 | 702,407 |
Total operating expenses | 2,323,283 | 1,934,891 | 1,893,727 |
Operating income | 4,482,023 | 2,673,802 | 2,464,732 |
Other expense, net | (111,219) | (98,824) | (18,161) |
Income before income taxes | 4,370,804 | 2,574,978 | 2,446,571 |
Income tax expense | (462,346) | (323,225) | (255,141) |
Net income | $ 3,908,458 | $ 2,251,753 | $ 2,191,430 |
Net income per share: | |||
Basic (usd per share) | $ 27.22 | $ 15.55 | $ 14.37 |
Diluted (usd per share) | $ 26.90 | $ 15.10 | $ 13.70 |
Number of shares used in per share calculations: | |||
Basic (shares) | 143,609 | 144,814 | 152,478 |
Diluted (shares) | 145,320 | 149,090 | 159,915 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 3,908,458 | $ 2,251,753 | $ 2,191,430 |
Other comprehensive income (loss), net of tax: | |||
Foreign currency translation adjustment | 14,398 | (6,441) | (6,648) |
Cash flow hedges: | |||
Net unrealized gains (losses) during the period | 22,139 | (30,603) | 2,461 |
Net (gains) losses reclassified into net income | (3,468) | 2,137 | (2,749) |
Net change | 18,671 | (28,466) | (288) |
Available-for-sale investments: | |||
Net unrealized (losses) gains during the period | (4,098) | 1,842 | 3,535 |
Net losses (gains) reclassified into net income | 786 | 935 | (199) |
Net change | (3,312) | 2,777 | 3,336 |
Defined benefit plans, net change in unrealized component | 326 | 1,949 | (2,981) |
Other comprehensive income (loss), net of tax | 30,083 | (30,181) | (6,581) |
Comprehensive income | $ 3,938,541 | $ 2,221,572 | $ 2,184,849 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 27, 2021 | Jun. 28, 2020 |
ASSETS: | ||
Cash and cash equivalents | $ 4,418,263 | $ 4,915,172 |
Investments | 1,310,872 | 1,795,080 |
Accounts receivable, less allowance of $5,255 as of June 27, 2021 and $5,465 as of June 28, 2020 | 3,026,430 | 2,097,099 |
Inventories | 2,689,294 | 1,900,024 |
Prepaid expenses and other current assets | 207,528 | 146,160 |
Total current assets | 11,652,387 | 10,853,535 |
Property and equipment, net | 1,303,479 | 1,071,499 |
Restricted cash and investments | 252,487 | 253,911 |
Goodwill | 1,490,134 | 1,484,436 |
Intangible assets, net | 132,365 | 168,532 |
Other assets | 1,061,300 | 727,134 |
Total assets | 15,892,152 | 14,559,047 |
LIABILITIES AND STOCKHOLDERS’ EQUITY: | ||
Trade accounts payable | 829,710 | 592,387 |
Accrued expenses and other current liabilities | 1,719,483 | 1,272,655 |
Deferred profit | 967,325 | 457,523 |
Current portion of long-term debt and finance lease obligations | 11,349 | 839,877 |
Total current liabilities | 3,527,867 | 3,162,442 |
Long-term debt and finance lease obligations, less current portion | 4,990,333 | 4,970,848 |
Income taxes payable | 948,037 | 909,709 |
Other long-term liabilities | 398,727 | 332,559 |
Total liabilities | 9,864,964 | 9,375,558 |
Commitments and contingencies | ||
Temporary equity, convertible notes | 0 | 10,995 |
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 27, 2021 and June 28, 2020; issued and outstanding 142,501 shares as of June 27, 2021, and 145,331 shares as of June 28, 2020 | 143 | 145 |
Additional paid-in capital | 7,052,962 | 6,695,858 |
Treasury stock, at cost, 150,766 shares as of June 27, 2021, and 145,432 shares as of June 28, 2020 | (15,646,701) | (12,949,889) |
Accumulated other comprehensive loss | (64,128) | (94,211) |
Retained earnings | 14,684,912 | 11,520,591 |
Total stockholders’ equity | 6,027,188 | 5,172,494 |
Total liabilities and stockholders’ equity | $ 15,892,152 | $ 14,559,047 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Thousands | Jun. 27, 2021 | Jun. 28, 2020 |
Statement of Financial Position [Abstract] | ||
Allowance for doubtful accounts | $ 5,255 | $ 5,465 |
Preferred stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized (in shares) | 5,000,000 | 5,000,000 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (usd per share) | $ 0.001 | $ 0.001 |
Common stock, shares authorized (in shares) | 400,000,000 | 400,000,000 |
Common stock, shares issued (in shares) | 142,501,000 | 145,331,000 |
Common stock, shares outstanding (in shares) | 142,501,000 | 145,331,000 |
Treasury stock (in shares) | 150,766,000 | 145,432,000 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $ 3,908,458 | $ 2,251,753 | $ 2,191,430 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 307,151 | 268,525 | 309,281 |
Deferred income taxes | (151,477) | (17,777) | (4,980) |
Equity-based compensation expense | 220,164 | 189,197 | 187,234 |
Other, net | (17,392) | 6,628 | 1,524 |
Changes in operating asset and liability accounts: | |||
Accounts receivable, net of allowance | (928,928) | (641,827) | 732,138 |
Inventories | (792,591) | (411,608) | 281,355 |
Prepaid expenses and other assets | (59,189) | (14,354) | (17,864) |
Trade accounts payable | 184,615 | 208,478 | (131,472) |
Deferred profit | 508,008 | 76,207 | (178,074) |
Accrued expenses and other liabilities | 409,344 | 211,229 | (194,559) |
Net cash provided by operating activities | 3,588,163 | 2,126,451 | 3,176,013 |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures and intangible assets | (349,096) | (203,239) | (303,491) |
Purchases of available-for-sale securities | (3,389,388) | (2,897,627) | (2,930,049) |
Proceeds from maturities of available-for-sale securities | 2,381,758 | 1,647,379 | 466,539 |
Proceeds from sales of available-for-sale securities | 1,472,152 | 1,235,248 | 1,137,302 |
Other, net | (42,155) | (25,845) | (7,355) |
Net cash provided by (used for) investing activities | 73,271 | (244,084) | (1,637,054) |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Net proceeds from issuance of long-term debt | 0 | 1,974,651 | 2,476,720 |
Principal payments on long-term debt and finance lease obligations and payments for debt issuance costs | (862,060) | (667,537) | (117,653) |
Net (repayment) from commercial paper | 0 | 0 | (361,754) |
Proceeds from borrowings on revolving credit facility | 0 | 1,250,000 | 0 |
Repayment of borrowings on revolving credit facility | 0 | (1,250,000) | 0 |
Treasury stock purchases | (2,697,704) | (1,369,649) | (3,780,611) |
Dividends paid | (726,992) | (656,838) | (678,348) |
Reissuances of treasury stock related to employee stock purchase plan | 97,764 | 85,439 | 77,961 |
Proceeds from issuance of common stock | 24,123 | 8,084 | 6,813 |
Other, net | (2,113) | 1,920 | (13,208) |
Net cash used for financing activities | (4,166,982) | (623,930) | (2,390,080) |
Effect of exchange rate changes on cash, cash equivalents and restricted cash | 7,215 | (2,750) | (4,041) |
Net (decrease) increase in cash, cash equivalents and restricted cash | (498,333) | 1,255,687 | (855,162) |
Cash, cash equivalents and restricted cash at beginning of year | 5,169,083 | 3,913,396 | 4,768,558 |
Cash, cash equivalents and restricted cash at end of year | 4,670,750 | 5,169,083 | 3,913,396 |
Schedule of non-cash transactions | |||
Accrued payables for stock repurchases | 20,005 | 82 | 29 |
Accrued payables for capital expenditures | 61,392 | 37,812 | 23,185 |
Dividends payable | 185,431 | 167,129 | 158,868 |
Transfers of finished goods inventory to property and equipment | 80,252 | 51,694 | 54,533 |
Supplemental disclosures: | |||
Cash payments for interest | 203,932 | 171,889 | 76,933 |
Cash payments for income taxes, net | 518,567 | 222,909 | 300,268 |
Reconciliation of cash, cash equivalents, and restricted cash | |||
Cash and cash equivalents | 4,418,263 | 4,915,172 | 3,658,219 |
Restricted cash and cash equivalents | 252,487 | 253,911 | 255,177 |
Total cash, cash equivalents, and restricted cash | $ 4,670,750 | $ 5,169,083 | $ 3,913,396 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Adoption | Common Stock | Additional Paid-in Capital | Treasury Stock | Accumulated Other Comprehensive Income(Loss) | Retained Earnings | Retained EarningsAdoption |
Beginning balance (shares) at Jun. 24, 2018 | 156,892 | |||||||
Beginning balance at Jun. 24, 2018 | $ 6,501,851 | $ 157 | $ 6,144,425 | $ (7,846,476) | $ (57,449) | $ 8,261,194 | ||
Beginning balance (ASU 2014-09) at Jun. 24, 2018 | $ 139,355 | $ 139,355 | ||||||
Beginning balance (ASU 2016-16) at Jun. 24, 2018 | (443) | (443) | ||||||
Increase (Decrease) in Stockholders' Equity | ||||||||
Sale of common stock (shares) | 1,090 | |||||||
Issuance 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 loss | (4,354) | (4,354) | ||||||
Other comprehensive income (loss) | (6,581) | |||||||
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 | 3,018 | $ 144 | 6,409,405 | (11,602,573) | (64,030) | 9,930,919 | 3,018 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Sale of common stock (shares) | 1,288 | |||||||
Issuance 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 | $ 1,157 | $ 145 | 6,695,858 | (12,949,889) | (94,211) | 11,520,591 | $ 1,157 |
Increase (Decrease) in Stockholders' Equity | ||||||||
Sale of common stock (shares) | 1,089 | |||||||
Issuance of common stock | 24,123 | $ 1 | 24,122 | |||||
Purchase of treasury stock (shares) | (5,819) | |||||||
Purchase of treasury stock | (2,717,627) | $ (5) | (2,717,622) | |||||
Reissuance of treasury stock (shares) | 484 | |||||||
Reissuance of treasury stock | 97,764 | $ 0 | 76,954 | 20,810 | ||||
Equity-based compensation expense | 220,164 | 220,164 | ||||||
Effect of conversion of convertible notes (shares) | 1,416 | |||||||
Effect of conversion of convertible notes | 24,871 | $ 2 | 24,869 | |||||
Reclassification from temporary to permanent equity | 10,995 | 10,995 | ||||||
Net income | 3,908,458 | 3,908,458 | ||||||
Other comprehensive income (loss) | 30,083 | 30,083 | ||||||
Cash dividends declared | (745,294) | (745,294) | ||||||
Ending balance (shares) at Jun. 27, 2021 | 142,501 | |||||||
Ending balance at Jun. 27, 2021 | $ 6,027,188 | $ 143 | $ 7,052,962 | $ (15,646,701) | $ (64,128) | $ 14,684,912 |
Consolidated Statements of St_2
Consolidated Statements of Stockholders' Equity (Parenthetical) - $ / shares | 12 Months Ended | |||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201818Member | us-gaap:AccountingStandardsUpdate201602Member | ||
Dividends declared per share (usd per share) | $ 5.20 | $ 4.60 | $ 4.40 | |
ASU 2014-09 | ||||
Accounting Standards Update [Extensible List] | ASU 2014-09 | |||
ASU 2018-02 | ||||
Accounting Standards Update [Extensible List] | ASU 2018-02 | |||
ASU 2016-16 | ||||
Accounting Standards Update [Extensible List] | lrx:AccountingStandardsUpdate201616AMember |
Company and Industry Informatio
Company and Industry Information | 12 Months Ended |
Jun. 27, 2021 | |
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 2021, 2020, and 2019 may not necessarily be indicative of future operating results. |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 27, 2021 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Summary of Significant Accounting Policies The preparation of financial statements in conformity with GAAP requires management to make judgments, estimates, and assumptions that could affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the reporting period. The Company bases its estimates and assumptions on historical experience and on various other assumptions it believes to be applicable and evaluates them on an ongoing basis to ensure they remain reasonable under current conditions. Actual results could differ significantly from those estimates. Revenue Recognition: The Company recognizes revenue when 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 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. The Company amortizes intangible assets with estimable useful lives over their respective estimated useful lives. 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 reviews goodwill at least annually for impairment during the fourth quarter of each fiscal year and if certain events or indicators of impairment occur between annual impairment tests. The process of evaluating the potential impairment of goodwill requires significant judgment. When reviewing goodwill for impairment, the Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. In performing a qualitative assessment, it consider business conditions and other factors including, but not limited to (i) adverse industry or economic trends, (ii) restructuring actions and lower projections that may impact future operating results, (iii) sustained decline in share price, and (iv) overall financial performance and other events affecting the reporting units. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test is performed by estimating the fair value of the reporting unit and comparing it to its carrying value, including goodwill allocated to that reporting unit. The Company did not record impairments of goodwill during the years ended June 27, 2021, June 28, 2020, or June 30, 2019. 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. If after completing the quantitative assessment the carrying value of a reporting unit exceeds its fair value, the Company would record an impairment charge equal to the excess of the carrying value of the reporting unit over its fair value, up to the amount the goodwill assigned to the reporting uni t. Impairment of Long-lived Assets (Excluding Goodwill): The Company reviews intangible assets whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. 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 fair value 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 27, 2021 and June 28, 2020 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 expense, net 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). Following the adoption of Accounting Standard Codification Topic 326 (see additional information in Note 3: Recent Accounting Pronouncements) , under Subtopic 326-30, the Company evaluates its investments with fair value less than amortized cost by first considering whether the Company has the intent to sell the security or whether it is more likely than not that the Company will be required to sell the security before recovery of its amortized cost basis. In either such situation, the difference between fair value and amortized cost is recognized as a loss in the income statement. Where such sales are not likely to occur, the Company considers whether a portion of the loss is the result of a credit loss. To the extent such losses are the result of credit losses, those amounts are recognized in the income statement. All other differences between fair value and amortized cost are recognized in other comprehensive income. No such losses were recognized through the income statement during the year ended June 27, 2021. No other-than-temporary impairment charges were recognized during the years ended June 28, 2020 or June 30, 2019. Allowance for Expected Credit Losses: The Company maintains an allowance for expected losses resulting from the inability of its customers to make required payments. The Company evaluates its allowance for expected credit losses based on a combination of factors. In circumstances where specific invoices are deemed uncollectible, the Company provides a specific allowance 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 27, 2021, June 28, 2020, and June 30, 2019. 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 three Derivative Financial Instruments: In the normal course of business, the Company’s financial position is routinely subjected to market risk associated with interest rate and foreign currency exchange rate fluctuations. The Company’s policy is to mitigate the effect of interest rate fluctuations on certain proposed debt instruments and 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 maintains an active currency hedging program and believes 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 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 finance leases that contain provisions whereby the properties subject to the finance 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 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). Remeasurement adjustments are recorded in other expense, net, where the U.S. dollar is the functional currency. |
Recent Accounting Pronouncement
Recent Accounting Pronouncements | 12 Months Ended |
Jun. 27, 2021 | |
Accounting Changes and Error Corrections [Abstract] | |
Recent Accounting Pronouncements | Recent Accounting Pronouncements Recently Adopted or Effective In June 2016, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326).” The amendment revises the impairment model to utilize an expected loss methodology in place of the previously used incurred loss methodology, which results 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 April 2019 and November 2019 within ASU 2019-04 and ASU 2019-11, respectively. The adoption of these standards in the first quarter of fiscal year 2021 did not have a material impact on the Company’s 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 adoption of this standard in the first quarter of fiscal year 2021 did not have a material impact on the Company’s 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 temporary optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. In January 2021, the FASB issued ASU 2021-01, “ Reference Rate Reform (Topic 848),” which permits entities to apply optional expedients in Topic 848 to derivative instruments modified because of discounting transition resulting from reference rate reform. ASU 2020-04 became effective upon issuance and may be applied prospectively to contract modifications made on or before December 31, 2022. ASU 2021-01 became effective upon issuance and may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or prospectively for contract modifications made on or before December 31, 2022. The Company has not yet applied the relief afforded by these standard amendments and is currently assessing contracts that will require modification due to reference rate reform to which these standard amendments may be applied. Updates Not Yet Effective |
Revenue
Revenue | 12 Months Ended |
Jun. 27, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue Deferred Revenue Revenue of $452.8 million included in deferred profit at June 28, 2020 was recognized during fiscal year 2021. The following table summarizes the transaction price for contracts that have not yet been recognized as revenue as of June 27, 2021 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 $ 955,157 $ 163,650 (1) $ — $ 1,118,807 (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 27, June 28, June 30, (in thousands) Systems Revenue $ 9,764,845 $ 6,625,130 $ 6,451,104 Customer support-related revenue and other 4,861,305 3,419,606 3,202,455 $ 14,626,150 $ 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 in which the Company operates. Additionally, the Company serves three primary markets: memory, foundry, and 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 the Company serves: Year Ended June 27, June 28, June 30, Memory 61 % 58 % 70 % Foundry 32 % 31 % 20 % Logic/integrated device manufacturing 7 % 11 % 10 % |
Equity-based Compensation Plans
Equity-based Compensation Plans | 12 Months Ended |
Jun. 27, 2021 | |
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 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 stockholders authorizing up to 18,000,000 shares 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 27, 2021, there were a total of 8,585,404 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 27, June 28, June 30, (in thousands) Equity-based compensation expense $ 220,164 $ 189,197 $ 187,234 Income tax benefit recognized related to equity-based compensation $ 49,313 $ 36,135 $ 47,396 Income tax benefit realized from the exercise and vesting of options and RSUs $ 97,275 $ 67,060 $ 49,242 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 2021, 2020, and 2019, the Company issued both service-based RSUs and market-based performance RSUs (“PRSUs”). Service-based RSUs typically vest over a period of 3 years or less. 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 2021 and 2020 and the Philadelphia Semiconductor Sector Index (“SOX”) for market-based PRSUs issued in 2019. 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 2021 and 2020 utilized the XSOX, which index gives effect to the reinvestment of dividends paid on its constituent holdings, as the benchmark; and accordingly the Company's Common Stock price performance was adjusted for the reinvestment of dividends on Common Stock on the ex-dividend date. By contrast, market-based PRSUs issued in 2019 utilized the SOX as a benchmark, which excluded the impact of dividends; accordingly the Company's Common Stock price performance was not adjusted for the reinvestment 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 the Company’s combined service-based RSUs and market-based PRSUs: Number of Weighted-Average Outstanding, June 28, 2020 1,722 $ 214.93 Granted 527 558.64 Vested (886) 200.16 Forfeited or canceled (57) 270.00 Outstanding, June 27, 2021 1,306 $ 345.70 Of the 1.3 million shares outstanding at June 27, 2021, 1.0 million are service-based RSUs and 0.3 million are market-based PRSUs. 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. The fair value of the Company’s market-based PRSUs granted during fiscal years 2021 , 2020, and 2019 was calculated using a Monte Carlo simulation model at the date of the grant, resulting in a weighted average grant-date fair value per share of $640.69, $320.69, and $165.78, respectively. The total fair value of service-based RSUs and market-based RSUs that vested during fiscal years 2021 , 2020, and 2019 was $177.4 million, $166.9 million, and $152.1 million, respectively. As of June 27, 2021, the Company had $364.6 million of total unrecognized compensation expense which is expected to be recognized over a weighted-average remaining period of approximately 2.3 years . Stock Options The Company granted stock options with a 7-year maximum contractual term to a limited group of executive officers during fiscal years 2021, 2020, and 2019. Stock options typically vest over a period of three years or less. The Company had 219.9 thousand options outstanding at June 27, 2021 with a weighted-average exercise price of $201.44 per share, of which 119.4 thousand were exercisable with a weighted-average exercise price of $148.15 per share. As of June 27, 2021, the Company had $6.3 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 2.0 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 12 months and contains one interim purchase date. |
Other Expense, Net
Other Expense, Net | 12 Months Ended |
Jun. 27, 2021 | |
Other Income and Expenses [Abstract] | |
Other Expense, Net | Other Expense, Net The significant components of other expense, net, were as follows: Year Ended June 27, June 28, June 30, (in thousands) Interest income $ 19,687 $ 85,433 $ 98,771 Interest expense (208,597) (177,440) (117,263) Gains on deferred compensation plan related assets, net 61,838 5,999 10,464 Foreign exchange (losses) gains, net (6,962) (3,317) 826 Other, net 22,815 (9,499) (10,959) $ (111,219) $ (98,824) $ (18,161) Interest income in the year ended June 27, 2021, decreased compared to the year ended June 28, 2020, primarily as a result of lower yield. Interest income decreased in the year ended June 28, 2020, compared to the year ended June 30, 2019, as a result of lower yield, partially offset by a higher cash balance. Interest expense in the year ended June 27, 2021, increased compared to the year ended June 28, 2020, primarily due to the full year impact of the issuance of the $2.0 billion senior notes in fiscal year 2020. The increase in interest expense in the year ended June 28, 2020, compared to the year ended June 30, 2019, was primarily due to the full year impact of the issuance of the $2.5 billion of senior notes in fiscal year 2019 and issuance of the $2.0 billion senior notes in fiscal year 2020. 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 gains in other, net for the year ended June 27, 2021 compared to the years ended June 28, 2020 and June 30, 2019 were primarily driven by private equity investments. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 27, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The components of income (loss) before income taxes were as follows: Year Ended June 27, June 28, June 30, (in thousands) United States $ 120,161 $ 44,739 $ (59,876) Foreign 4,250,643 2,530,239 2,506,447 $ 4,370,804 $ 2,574,978 $ 2,446,571 Significant components of the provision (benefit) for income taxes attributable to income before income taxes were as follows: Year Ended June 27, June 28, June 30, (in thousands) Federal: Current $ 437,525 $ 216,513 $ 143,845 Deferred (139,531) (18,458) (10,722) 297,994 198,055 133,123 State: Current 13,560 4,724 5,994 Deferred (8,324) 6,524 4,944 5,236 11,248 10,938 Foreign: Current 162,738 119,766 110,283 Deferred (3,622) (5,844) 797 159,116 113,922 111,080 Total provision for income taxes $ 462,346 $ 323,225 $ 255,141 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 27, June 28, (in thousands) Deferred tax assets: Tax carryforwards $ 281,022 $ 249,874 Allowances and reserves 165,335 119,974 Equity-based compensation 7,322 7,167 Inventory valuation differences 28,877 26,069 Outside basis differences of foreign subsidiaries 193,734 105,159 Operating lease liabilities 37,562 40,157 Other 22,575 26,361 Gross deferred tax assets 736,427 574,761 Valuation allowance (277,133) (244,973) Net deferred tax assets 459,294 329,788 Deferred tax liabilities: Intangible assets (3,113) (6,442) Convertible debt — (24,530) Capital assets (97,602) (105,508) Amortization of goodwill (13,161) (12,256) Right-of-use assets (37,562) (40,157) Other (262) (7,509) Gross deferred tax liabilities (151,700) (196,402) Net deferred tax assets $ 307,594 $ 133,386 The change in gross deferred tax assets, gross deferred tax liabilities, and valuation allowance between fiscal year 2021 and 2020 is primarily due to increases in gross deferred tax assets for outside basis differences of foreign subsidiaries, allowances and reserves, and tax credits, and decreases in gross deferred tax liabilities for convertible debt. 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 $277.1 million related to California deferred tax assets. At June 27, 2021, 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 27, 2021, the Company had federal net operating loss carryforwards of $25.2 million. If not utilized, these losses will begin to expire in fiscal year 2022, and are subject to limitation on their utilization. At June 27, 2021, the Company had state net operating loss carryforwards of $94.5 million. If not utilized, these losses will begin to expire in fiscal year 2023 and are subject to limitation on their utilization. At June 27, 2021, the Company had state tax credit carryforwards of $408.9 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 years 2021, 2020, and 2019) to actual income tax expense is as follows: Year Ended June 27, June 28, June 30, (in thousands) Income tax expense computed at federal statutory rate $ 917,869 $ 540,745 $ 513,780 State income taxes, net of federal tax benefit (33,478) (28,046) (17,565) Foreign income taxed at different rates (365,886) (146,023) (260,344) Settlements and reductions in uncertain tax positions (13,613) (12,854) (31,291) Tax credits (86,709) (88,762) (71,779) State valuation allowance, net of federal tax benefit 39,477 30,923 26,742 Equity-based compensation (45,764) (23,248) (7,566) Other permanent differences and miscellaneous items 50,450 50,490 39,251 U.S. tax reform impacts — — 63,913 $ 462,346 $ 323,225 $ 255,141 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 intercompany 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 intercompany 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 $774.5 million at June 27, 2021. If these earnings were remitted to the United States, they would be subject to foreign withholding taxes of approximately $122.1 million at current statutory rates. The potential tax expense associated with these foreign withholding taxes would be substantially offset by foreign tax credits that would be generated in the United States upon remittance. The Company’s gross uncertain tax positions were $566.8 million, $476.7 million, and $420.8 million as of June 27, 2021, June 28, 2020, and June 30, 2019, respectively. During fiscal year 2021, gross uncertain tax positions increased by $90.1 million. The amount of uncertain tax positions that, if recognized, would impact the effective tax rate was $504.4 million, $423.8 million, and $376.0 million, as of June 27, 2021, June 28, 2020, and June 30, 2019, respectively. The aggregate changes in the balance of gross uncertain tax positions were as follows: (in thousands) 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 Settlements and effective settlements with tax authorities (1,443) Lapse of statute of limitations (8,456) Increases in balances related to tax positions taken during prior periods 15,986 Decreases in balances related to tax positions taken during prior periods (2,746) Increases in balances related to tax positions taken during current period 86,735 Balance as of June 27, 2021 $ 566,771 The Company recognizes interest expense and penalties related to the above uncertain tax positions within income tax expense. The Company had accrued $54.6 million, $40.2 million, and $19.1 million cumulatively for gross interest and penalties as of June 27, 2021, June 28, 2020, and June 30, 2019, 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 27, 2021, tax years 2004-2021 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 27, 2021, 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 statutes of limitation. The change in uncertain tax positions may range up to $37.7 million. |
Net Income per Share
Net Income per Share | 12 Months Ended |
Jun. 27, 2021 | |
Earnings Per Share [Abstract] | |
Net Income per Share | Net Income per ShareBasic 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 inputs to the basic and diluted computations for net income per share. Year Ended June 27, June 28, June 30, (in thousands, except per share data) Numerator: Net income $ 3,908,458 $ 2,251,753 $ 2,191,430 Denominator: Basic average shares outstanding 143,609 144,814 152,478 Effect of potential dilutive securities: Employee stock plans 1,168 1,236 1,323 Convertible notes 543 3,040 5,610 Warrants — — 504 Diluted average shares outstanding 145,320 149,090 159,915 Net income per share - basic $ 27.22 $ 15.55 $ 14.37 Net income per share - diluted $ 26.90 $ 15.10 $ 13.70 |
Financial Instruments
Financial Instruments | 12 Months Ended |
Jun. 27, 2021 | |
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 engages with pricing vendors to provide fair values for a majority of its Level 1 and Level 2 investments. The vendors provide either a quoted market price in an active market or use observable inputs without applying significant adjustments in their pricing. Significant observable inputs include interest rates and yield curves observable at commonly quoted intervals, volatility and credit risks. The fair value of derivative contracts is determined using observable market inputs such as the foreign currency rates, forward rate curves, currency volatility and interest rates and considers nonperformance risk of the Company and its counterparties. 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 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 tables set 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 27, 2021, and June 28, 2020: June 27, 2021 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 875,738 $ — $ — $ 875,738 $ 873,278 $ — $ 2,460 $ — Time deposit 1,548,874 — — 1,548,874 1,298,847 — 250,027 — Level 1: Money market funds 2,246,138 — — 2,246,138 2,246,138 — — — U.S. Treasury and agencies 204,743 96 (47) 204,792 — 204,792 — — Mutual funds 80,694 15,510 (33) 96,171 — — — 96,171 Level 1 total 2,531,575 15,606 (80) 2,547,101 2,246,138 204,792 — 96,171 Level 2: Government-sponsored enterprises 3,498 7 — 3,505 — 3,505 — — Foreign government bonds 32,995 21 (4) 33,012 — 33,012 — — Corporate notes and bonds 1,043,308 2,247 (457) 1,045,098 — 1,045,098 — — Mortgage backed securities - residential 5,623 54 — 5,677 — 5,677 — — Mortgage backed securities - commercial 18,830 17 (59) 18,788 — 18,788 — — Level 2 total 1,104,254 2,346 (520) 1,106,080 — 1,106,080 — — Total $ 6,060,441 $ 17,952 $ (600) $ 6,077,793 $ 4,418,263 $ 1,310,872 $ 252,487 $ 96,171 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 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. Gross realized gains/(losses) from sales of investments were insignificant in the fiscal years 2021, 2020, and 2019. The following is an analysis of the Company’s cash, cash equivalents, investments, and restricted cash and investments in unrealized loss positions. As of June 27, 2021, there are no unrealized loss positions with a duration equal to or greater than twelve months: June 27, 2021 Unrealized Losses Fair Value Gross (in thousands) U.S. Treasury and agencies $ 122,791 $ (47) Mutual funds 2,642 (33) Foreign government bonds 2,133 (4) Corporate notes and bonds 278,133 (457) Mortgage backed securities - commercial 15,076 (59) $ 420,775 $ (600) The amortized cost and fair value of cash equivalents, investments, and restricted investments with contractual maturities as of June 27, 2021, are as follows: Cost Fair Value (in thousands) Due in one year or less $ 4,198,483 $ 4,198,992 Due after one year through five years 866,243 867,562 Due in more than five years 39,283 39,330 $ 5,104,009 $ 5,105,884 The Company has the ability, if necessary, to liquidate its investments in order to meet the Company’s liquidity needs in the next 12 months. Accordingly, those investments with contractual maturities greater than 12 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. 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 27, 2021 and June 28, 2020, the potential effect of rights of offset associated with the above foreign exchange and interest rate contracts would be immaterial to the Consolidated Balance Sheets. 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. 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 affect earnings. 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 affects earnings. 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 interest rate swap agreements. No such activity occurred during the years ended June 27, 2021 or June 30, 2019. 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 27, 2021, June 28, 2020, or June 30, 2019 associated with forecasted transactions that failed to occur. There were no material gains or losses during the fiscal year ended June 30, 2019 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 earnings immediately. As of June 27, 2021, the fair value of outstanding cash flow hedges was not material. Additionally, as of June 27, 2021, the Company had an immaterial net gain or loss accumulated in other comprehensive income, net of tax, related to foreign exchange cash flow hedges and interest rate contracts which it expects to reclassify from other comprehensive income into earnings over the next 12 months. The following table provides the total notional value of cash flow hedge instruments outstanding as of June 27, 2021: June 27, 2021 (In thousands) Buy Contracts $ 353,313 Sell Contacts 598,407 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 27, 2021 Year Ended June 28, 2020 Location of Gain Gain (Loss) Gain (Loss) Gain (Loss) Reclassified Derivatives in Cash Flow Hedging Relationships (in thousands) Foreign exchange contracts Revenue $ 17,614 $ 868 $ 4,095 $ 2,418 Foreign exchange contracts Cost of goods sold 3,756 3,659 (2,104) (3,101) Foreign exchange contracts R&D 898 — — — Foreign exchange contracts SG&A 4,190 3,623 (1,158) (1,501) Interest rate contracts Other expense, net — (3,855) (40,610) (700) $ 26,458 $ 4,295 $ (39,777) $ (2,884) 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 expense, net and offsets the change in the carrying value of the foreign currency denominated assets and liabilities related to remeasurement, which are also recorded in other expense, net. As of June 27, 2021 and June 28, 2020, the fair value of outstanding balance sheet hedges was not material. The following table provides the total notional value of balance sheet hedge instruments outstanding as of June 27, 2021: June 27, 2021 (In thousands) Buy Contracts $ 214,606 Sell Contacts 228,880 The effect of the Company’s balance sheet hedge derivative instruments on the Company’s Consolidated Statement of Operations was as follows: Year Ended June 27, 2021 June 28, 2020 Derivatives Not Designated as Hedging Instruments: Location of Gain (Loss) Gain Loss (in thousands) Foreign exchange contracts Other expense, net $ 7,057 $ (5,971) 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 27, 2021, two customers accounted for approximately 23% and 13%, of accounts receivable, respectively. As of June 28, 2020, two customers accounted for approximately 21%, and 12% of accounts receivable, respectively. No other customers accounted for more than 10% of accounts receivable, respectively. The Company’s balance and transactional activity for its allowance for doubtful accounts is not material as of and for the twelve months ended June 27, 2021, June 28, 2020, and June 30, 2019. Refer to Note 20 - Segment, Geographic Information, and Major Customers for additional information regarding customer concentrations. |
Inventories
Inventories | 12 Months Ended |
Jun. 27, 2021 | |
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 27, June 28, (in thousands) Raw materials $ 1,519,456 $ 1,161,961 Work-in-process 391,686 251,199 Finished goods 778,152 486,864 $ 2,689,294 $ 1,900,024 |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 27, 2021 | |
Property, Plant and Equipment [Abstract] | |
Property and Equipment | Property and Equipment Property and equipment, net, is presented in the table below. June 27, June 28, (in thousands) Manufacturing and engineering equipment $ 1,328,399 $ 1,154,668 Buildings and improvements 840,661 660,865 Computer and computer-related equipment 181,781 178,193 Office equipment, furniture and fixtures 95,259 83,386 Land 84,681 58,805 2,530,781 2,135,917 Less: accumulated depreciation and amortization (1,271,356) (1,082,827) $ 1,259,425 $ 1,053,090 The Company has excluded $44.1 million, and $18.4 million of finance right-of-use assets recorded within property and equipment, net from the table above for the years ended June 27, 2021 and June 28, 2020, respectively. See Note 15 - Leases for additional information regarding these finance lease right-of-use assets. Depreciation expense, excluding amortization of finance lease right of use assets, during fiscal years 2021 and 2020 was $229.8 million and $198.8 million, respectively. During fiscal year 2019, depreciation expense, including amortization of capital leases, was $182.1 million. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 27, 2021 | |
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 27, 2021 and June 28, 2020, respectively. As of June 27, 2021 and June 28, 2020 , $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 2021, 2020, or 2019. Intangible Assets The following table provides details of the Company’s intangible assets, other than goodwill: June 27, 2021 June 28, 2020 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 630,303 $ (581,406) $ 48,897 $ 630,137 $ (532,550) $ 97,587 Existing technology 669,359 (659,898) 9,461 668,992 (654,382) 14,610 Patents and other intangible assets 132,774 (58,767) 74,007 98,342 (42,007) 56,335 Total intangible assets $ 1,432,436 $ (1,300,071) $ 132,365 $ 1,397,471 $ (1,228,939) $ 168,532 The Company recognized $70.6 million, $66.2 million, and $127.3 million in intangible asset amortization expense during fiscal years 2021, 2020, and 2019, respectively. No intangible asset impairments were recognized in fiscal years 2021, 2020, or 2019. The estimated future amortization expense of intangible assets as of June 27, 2021, is reflected in the table below. The table excludes $14.1 million of capitalized costs for intangible assets that have not yet been placed into service. Fiscal Year Amount (in thousands) 2022 $ 70,190 2023 24,228 2024 13,647 2025 7,431 2026 2,034 Thereafter 711 $ 118,241 |
Accrued Expenses and Other Curr
Accrued Expenses and Other Current Liabilities | 12 Months Ended |
Jun. 27, 2021 | |
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 27, June 28, (in thousands) Accrued compensation $ 552,925 $ 402,401 Warranty reserves 176,030 117,839 Income and other taxes payable 348,206 215,652 Dividend payable 185,431 167,129 Other 456,891 369,634 $ 1,719,483 $ 1,272,655 |
Long Term Debt and Other Borrow
Long Term Debt and Other Borrowings | 12 Months Ended |
Jun. 27, 2021 | |
Debt Disclosure [Abstract] | |
Long Term Debt and Other Borrowings | Long Term Debt and Other Borrowings As of June 27, 2021, and June 28, 2020, the Company’s outstanding debt consisted of the following: June 27, 2021 June 28, 2020 Amount Effective Interest Rate Amount Effective Interest Rate Fixed-rate 2.80% Senior Notes Due June 15, 2021 (“2021 Notes”) $ — — % $ 800,000 2.95 % Fixed-rate 3.80% Senior Notes Due March 15, 2025 (“2025 Notes”) 500,000 3.87 % 500,000 3.87 % Fixed-rate 3.75% Senior Notes Due March 15, 2026 ("2026 Notes") 750,000 3.86 % 750,000 3.86 % Fixed-rate 4.00% Senior Notes Due March 15, 2029 ("2029 Notes") 1,000,000 4.09 % 1,000,000 4.09 % Fixed-rate 1.90% Senior Note Due June 15, 2030 ("2030 Notes") 750,000 2.01 % 750,000 2.01 % Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (“2041 Notes”) — (1) — % 48,460 (2) 4.28 % Fixed-rate 4.875% Senior Notes Due March 15, 2049 ("2049 Notes") 750,000 4.93 % 750,000 4.93 % Fixed-rate 2.875% Senior Note Due June 15, 2050 ("2050 Notes") 750,000 2.93 % 750,000 2.93 % Fixed-rate 3.125% Senior Note Due June 15, 2060 ("2060 Notes") 500,000 3.18 % 500,000 3.18 % Total debt outstanding, at par 5,000,000 5,848,460 Unamortized discount (38,243) (53,086) Fair value adjustment - interest rate contracts 6,621 (3) 8,405 (3) Unamortized bond issuance costs (7,443) (8,301) Total debt outstanding, at carrying value $ 4,960,935 $ 5,795,478 Reported as: Current portion of long-term debt $ — $ 836,107 Long-term debt 4,960,935 4,959,371 Total debt outstanding, at carrying value $ 4,960,935 $ 5,795,478 (1) On March 26, 2021, the Company issued a notice of redemption to the existing bondholders with a redemption date of May 21, 2021. As such, the convertible notes outstanding on May 21, 2021 were redeemed by the Company. (2) As of June 28, 2020, 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. (3) This amount represents a cumulative fair value gain for discontinued hedging relationships, net of an immaterial amount of amortization as of the periods presented. The Company’s contractual cash obligations relating to its outstanding debt as of June 27, 2021, were as follows: Payments Due by Fiscal Year: (in thousands) 2022 $ — 2023 — 2024 — 2025 500,000 2026 750,000 Thereafter 3,750,000 Total $ 5,000,000 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”). On May 21, 2021, the 2041 Notes then outstanding were redeemed pursuant to Section 6.01 of the underlying indenture at a price equal to outstanding principal plus accrued and unpaid interest. No 2041 Notes were outstanding as of June 27, 2021. Selected additional information regarding the 2041 Notes outstanding as of June 28, 2020, is as follows: 2041 Notes June 28, (in thousands, except years, percentages, conversion rate, and conversion price) Carrying amount of permanent equity component, net of tax $ 161,467 Carrying amount of temporary equity component, net of tax $ 10,995 Remaining amortization period (years) 20.9 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 pays 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. 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 June 7, 2016, the Company completed a public offering of $800 million aggregate principal amount of Senior Notes due June 15, 2021, (the “2021 Notes”). The Company settled the 2021 Notes upon maturity, June 15, 2021. 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, 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. The Company may redeem the 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 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 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 27, 2021, is as follows: Remaining Amortization period Fair Value of Notes (Level 2) (years) (in thousands) 2025 Notes 3.7 $ 550,340 2026 Notes 4.7 $ 838,890 2029 Notes 7.7 $ 1,157,490 2030 Notes 9.0 $ 748,193 2049 Notes 27.7 $ 1,004,213 2050 Notes 29.0 $ 746,910 2060 Notes 39.0 $ 514,050 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”), February 25, 2019 (the “3rd Amendment”), and June 17, 2021 (the “Second Amended and Restated Credit Agreement). Among other things, the Second Amended and Restated Credit Agreement provides for a $250 million increase in the Company’s revolving credit facility, from $1.25 billion to $1.50 billion with a syndicate of lenders, along 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 $2.10 billion. The facility matures on June 17, 2026. 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 0.00% to 0.30%, or (2) LIBOR , plus a spread of 0.805% to 1.30%, in each case plus a facility fee, with such spread and facility fee determined based on the rating of the Company’s non-credit enhanced, senior unsecured long-term debt. Such spreads and such facility fees are further subject to sustainability adjustments as described in the Second Amended and Restated Credit Agreement, in each case based on the Company’s performance of certain energy savings and health and safety standards metrics. 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 Second Amended and Restated Credit Agreement incorporates provisions for the replacement of LIBOR or other reference rates with alternative reference rates under certain circumstances, including when, or if, such reference rates cease to be available. The Second Amended and Restated Credit Agreement contains affirmative covenants, negative covenants, financial covenants, and events of default. As of June 27, 2021, 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. In July 2021, the Company amended the CP Program size to a maximum aggregate amount outstanding at any time of $1.5 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 27, 2021, 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 27, 2021, June 28, 2020, and June 30, 2019. Year Ended June 27, June 28, June 30, (in thousands) Contractual interest coupon $ 197,367 $ 169,483 $ 100,712 Amortization of interest discount 3,934 4,280 3,937 Amortization of issuance costs 1,639 1,632 1,426 Effect of interest rate contracts, net 2,070 1,037 4,086 Total interest cost recognized $ 205,010 $ 176,432 $ 110,161 |
Leases
Leases | 12 Months Ended |
Jun. 27, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company leases certain office spaces, manufacturing and warehouse spaces, equipment, and vehicles. 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 years ended June 27, 2021 and June 28, 2020: Year Ended June 27, June 28, (in thousands) Financing lease cost: Amortization of right-of-use assets $ 7,131 $ 3,613 Interest on lease liabilities 697 506 Total finance lease cost $ 7,828 $ 4,119 Operating lease cost $ 51,519 $ 46,101 Variable lease cost 219,040 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 27, 2021 and June 28, 2020, respectively. Supplemental cash flow information related to leases was as follows as of June 27, 2021 and June 28, 2020: Year Ended June 27, June 28, (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 63,895 $ 50,223 Financing cash flows paid for principal portion of finance leases 5,952 3,539 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 48,993 108,816 Finance leases 29,497 3,019 Supplemental balance sheet information related to leases were as follows as of June 27, 2021 and June 28, 2020: June 27, June 28, (in thousands) Operating leases Other assets $ 173,784 $ 174,583 Accrued expenses and other current liabilities $ 45,310 $ 49,480 Other long-term liabilities 118,385 123,889 Total operating lease liabilities $ 163,695 $ 173,369 Finance Leases Property and Equipment, net $ 44,054 $ 18,409 Current portion of long-term debt and lease liabilities $ 11,349 $ 3,770 Long-term debt and lease liabilities, less current portion 29,398 11,477 Total finance lease liabilities $ 40,747 $ 15,247 June 27, 2021 June 28, 2020 Weighted-Average Remaining Lease Term Weighted-Average Discount Rate Weighted-Average Remaining Lease Term Weighted-Average Discount Rate (in years) (in years) Operating leases 5.5 2.30 % 9.0 2.57 % Finance leases 5.3 1.69 % 4.1 2.79 % As of June 27, 2021, the maturities of lease liabilities are as follows: Operating Leases Finance Leases (in thousands) 2022 $ 48,487 $ 11,870 2023 32,774 6,438 2024 22,756 5,882 2025 17,803 5,152 2026 12,702 5,062 Thereafter 38,628 8,244 Total lease payments $ 173,150 $ 42,648 Less imputed interest (9,455) (1,901) Total $ 163,695 $ 40,747 Selected Leases and Related Guarantees The Company had leases regarding certain improved properties in Fremont and Livermore, California (the “California Facility Leases”) that were classified as operating leases as of June 28, 2020. On September 21, 2020, the Company renewed these leases for an additional seven-year term, and concluded the modified leases are finance leases, and recognized approximately $31.4 million of property and equipment, net, for the associated right of use assets, and $29.8 million of finance lease obligations ($3.1 million classified in current portion of long-term debt and finance lease obligations and the remainder in long-term debt and finance lease obligations, less current portion). 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 27, 2021 and June 28, 2020. During the term of the California Facility Leases and when the terms of the California Facility Leases expire, the property subject to the California Facility Leases may be re-marketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate maximum guarantee made by the Company under the California Facility Leases is $298.4 million. |
Leases | Leases The Company leases certain office spaces, manufacturing and warehouse spaces, equipment, and vehicles. 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 years ended June 27, 2021 and June 28, 2020: Year Ended June 27, June 28, (in thousands) Financing lease cost: Amortization of right-of-use assets $ 7,131 $ 3,613 Interest on lease liabilities 697 506 Total finance lease cost $ 7,828 $ 4,119 Operating lease cost $ 51,519 $ 46,101 Variable lease cost 219,040 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 27, 2021 and June 28, 2020, respectively. Supplemental cash flow information related to leases was as follows as of June 27, 2021 and June 28, 2020: Year Ended June 27, June 28, (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 63,895 $ 50,223 Financing cash flows paid for principal portion of finance leases 5,952 3,539 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 48,993 108,816 Finance leases 29,497 3,019 Supplemental balance sheet information related to leases were as follows as of June 27, 2021 and June 28, 2020: June 27, June 28, (in thousands) Operating leases Other assets $ 173,784 $ 174,583 Accrued expenses and other current liabilities $ 45,310 $ 49,480 Other long-term liabilities 118,385 123,889 Total operating lease liabilities $ 163,695 $ 173,369 Finance Leases Property and Equipment, net $ 44,054 $ 18,409 Current portion of long-term debt and lease liabilities $ 11,349 $ 3,770 Long-term debt and lease liabilities, less current portion 29,398 11,477 Total finance lease liabilities $ 40,747 $ 15,247 June 27, 2021 June 28, 2020 Weighted-Average Remaining Lease Term Weighted-Average Discount Rate Weighted-Average Remaining Lease Term Weighted-Average Discount Rate (in years) (in years) Operating leases 5.5 2.30 % 9.0 2.57 % Finance leases 5.3 1.69 % 4.1 2.79 % As of June 27, 2021, the maturities of lease liabilities are as follows: Operating Leases Finance Leases (in thousands) 2022 $ 48,487 $ 11,870 2023 32,774 6,438 2024 22,756 5,882 2025 17,803 5,152 2026 12,702 5,062 Thereafter 38,628 8,244 Total lease payments $ 173,150 $ 42,648 Less imputed interest (9,455) (1,901) Total $ 163,695 $ 40,747 Selected Leases and Related Guarantees The Company had leases regarding certain improved properties in Fremont and Livermore, California (the “California Facility Leases”) that were classified as operating leases as of June 28, 2020. On September 21, 2020, the Company renewed these leases for an additional seven-year term, and concluded the modified leases are finance leases, and recognized approximately $31.4 million of property and equipment, net, for the associated right of use assets, and $29.8 million of finance lease obligations ($3.1 million classified in current portion of long-term debt and finance lease obligations and the remainder in long-term debt and finance lease obligations, less current portion). 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 27, 2021 and June 28, 2020. During the term of the California Facility Leases and when the terms of the California Facility Leases expire, the property subject to the California Facility Leases may be re-marketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate maximum guarantee made by the Company under the California Facility Leases is $298.4 million. |
Retirement and Deferred Compens
Retirement and Deferred Compensation Plans | 12 Months Ended |
Jun. 27, 2021 | |
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 $26.9 million, $23.6 million, and $24.1 million, in fiscal years 2021, 2020, and 2019, respectively. Deferred Compensation Arrangements The Company has an unfunded, non-qualified deferred compensation plan whereby 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 27, 2021, and June 28, 2020, the liability of the Company to the plan participants was $297.3 million and $220.0 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 27, 2021, and June 28, 2020, the Company had investments in the aggregate amount of $313.9 million and $235.1 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 $40.1 million and $41.0 million as of June 27, 2021, and June 28, 2020, respectively. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 27, 2021 | |
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 $527.3 million of liabilities related to uncertain tax positions (see Note 7 - Income Taxes for further discussion), $180.0 million of liability associated with a minimum purchase penalty obligation to a certain supplier, and $200.7 million of capital expenditures associated with facilities under construction as of the end of the fiscal year because the Company is unable to reasonably estimate the ultimate amount or time of settlement. 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 27, 2021, 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 27, 2021, the maximum potential amount of future payments that the Company could be required to make under these arrangements and letters of credit was $74.3 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 27, 2021, 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 27, 2021, were as follows: Payments Due by Fiscal Year: Purchase (in thousands) 2022 $ 660,201 2023 57,023 2024 57,023 2025 20,362 2026 20,362 Thereafter 3,215 Total $ 818,186 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 27, 2021, warranty reserves totaling $15.7 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 27, June 28, (in thousands) Balance at beginning of period $ 129,197 $ 127,932 Warranties issued during the period 229,026 151,508 Settlements made during the period (172,759) (131,177) Changes in liability for pre-existing warranties 6,294 (19,066) Balance at end of period $ 191,758 $ 129,197 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. 27, 2021 | |
Equity [Abstract] | |
Stock Repurchase Program | Stock Repurchase ProgramIn November 2020, the Board of Directors authorized the Company to repurchase up to an additional $5.0 billion of Common Stock; this authorization supplements the remaining balances from any prior authorizations. These repurchases can be conducted on the open market or as private purchases and may include the use of derivative contracts with large financial institutions, in all cases subject to compliance with applicable law. This repurchase program has no termination date and may be suspended or discontinued at any time. Repurchases under the repurchase program were as follows during the periods indicated: Period Total Number Total Average (1) Amount Available (in thousands, except per share data) Available balance as of June 28, 2020 $ 1,773,427 Quarter ended September 27, 2020 1,344 $ 461,998 $ 343.73 $ 1,311,429 Board authorization, $5 billion increase, November 2020 $ 6,311,429 Quarter ended December 27, 2020 1,789 $ 724,485 $ 404.98 $ 5,586,944 Quarter ended March 28, 2021 1,474 $ 925,099 $ 519.30 $ 4,661,845 Quarter ended June 27, 2021 922 (2) $ 439,625 $ 619.76 $ 4,222,220 (1) Average price paid per share excludes the 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 290 thousand shares at a total cost of $166.4 million during the 12 months ended June 27, 2021, 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 February 11, 2021, the Company entered into an accelerated share repurchase agreement (the “February 2021 ASR") with a financial institution to repurchase a total of $500 million of Common Stock. The Company took an initial delivery of approximately 655 thousand shares, which represented 75% of the prepayment amount divided by the Company’s closing stock price on February 11, 2021. The total number of shares received under the February 2021 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 February 2021 ASR occurred during May 2021, resulting in the receipt of approximately 213 thousand additional shares, which yielded a weighted-average share price of approximately $575.74 for the transaction period. |
Comprehensive Income (Loss)
Comprehensive Income (Loss) | 12 Months Ended |
Jun. 27, 2021 | |
Equity [Abstract] | |
Comprehensive Income (Loss) | Comprehensive Income (Loss) The components of accumulated other comprehensive loss, net of tax at the end of June 27, 2021, as well as the activity during the fiscal year ended June 27, 2021, were as follows: Accumulated Accumulated Accumulated Accumulated Total (in thousands) Balance as of June 28, 2020 $ (45,811) $ (32,796) $ 4,923 $ (20,527) $ (94,211) Other comprehensive income (loss) before reclassifications 14,398 22,139 (4,098) 326 32,765 (Gains) losses reclassified from accumulated other comprehensive income (loss) to net income (1) — (3,468) 786 — (2,682) Net current-period other comprehensive income (loss) 14,398 18,671 (3,312) 326 30,083 Balance as of June 27, 2021 $ (31,413) $ (14,125) $ 1,611 $ (20,201) $ (64,128) (1) Amount of after-tax gain reclassified from accumulated other comprehensive income into net income is not material individually or in the aggregate, or to any individual location in our Consolidated Statement of Operations. |
Segment, Geographic Information
Segment, Geographic Information and Major Customers | 12 Months Ended |
Jun. 27, 2021 | |
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; which includes property and equipment, net, and recognized right of use assets reported in other assets in the Consolidated Balance Sheets as of June 27, 2021 and June 28, 2020; 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 27, June 28, June 30, Revenue: (in thousands) China $ 5,137,886 $ 3,083,916 $ 2,161,440 Korea 3,924,685 2,391,257 2,205,348 Taiwan 2,117,999 1,906,223 1,596,261 Japan 1,363,907 954,743 1,969,869 Southeast Asia 945,478 587,638 615,813 United States 672,716 812,482 748,601 Europe 463,479 308,477 356,227 Total revenue $ 14,626,150 $ 10,044,736 $ 9,653,559 June 27, June 28, June 30, Long-lived assets: (in thousands) United States $ 1,137,490 $ 1,052,714 $ 933,054 Southeast Asia 129,881 31,027 5,542 Europe 77,661 80,297 72,928 Korea 62,502 49,943 28,200 Taiwan 47,279 11,555 6,759 Japan 13,149 11,826 5,750 China 9,301 8,720 6,844 $ 1,477,263 $ 1,246,082 $ 1,059,077 In fiscal year 2021, three customers accounted for approximately 25%, 12%, and 10% of total revenues, respectively. 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. 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. 27, 2021 | |
Accounting Policies [Abstract] | |
Revenue Recognition | Revenue Recognition: The Company recognizes revenue when promised goods or services are transferred to customers in an amount that reflects the consideration to which the Company expects to be entitled in exchange for those goods or services by following a five-step process, (1) identify the contract with a customer, (2) identify the performance obligations in the contract, (3) determine the transaction price, (4) allocate the transaction price 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 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. The Company amortizes intangible assets with estimable useful lives over their respective estimated useful lives. 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 reviews goodwill at least annually for impairment during the fourth quarter of each fiscal year and if certain events or indicators of impairment occur between annual impairment tests. The process of evaluating the potential impairment of goodwill requires significant judgment. When reviewing goodwill for impairment, the Company first performs a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying value. In performing a qualitative assessment, it consider business conditions and other factors including, but not limited to (i) adverse industry or economic trends, (ii) restructuring actions and lower projections that may impact future operating results, (iii) sustained decline in share price, and (iv) overall financial performance and other events affecting the reporting units. If the Company concludes that it is more likely than not that the fair value of a reporting unit is less than its carrying amount, then a quantitative impairment test is performed by estimating the fair value of the reporting unit and comparing it to its carrying value, including goodwill allocated to that reporting unit. The Company did not record impairments of goodwill during the years ended June 27, 2021, June 28, 2020, or June 30, 2019. 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. If after completing the quantitative assessment the carrying value of a reporting unit exceeds its fair value, the Company would record an impairment charge equal to the excess of the carrying value of the reporting unit over its fair value, up to the amount the goodwill assigned to the reporting uni t. |
Impairment of Long-lived Assets (Excluding Goodwill) | Impairment of Long-lived Assets (Excluding Goodwill): The Company reviews intangible assets whenever events or circumstances indicate that the carrying value of an asset or asset group may not be recoverable. 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 fair value 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 |
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 27, 2021 and June 28, 2020 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: 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 expense, net 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). Following the adoption of Accounting Standard Codification Topic 326 (see additional information in Note 3: Recent Accounting Pronouncements) |
Allowance for Expected Credit Losses | Allowance for Expected Credit Losses: The Company maintains an allowance for expected losses resulting from the inability of its customers to make required payments. The Company evaluates its allowance for expected credit losses based on a combination of factors. In circumstances where specific invoices are deemed uncollectible, the Company provides a specific allowance against the amount due to reduce the net recognized receivable to the amount it reasonably believes will be collected. The Company also |
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 three |
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 interest rate and foreign currency exchange rate fluctuations. The Company’s policy is to mitigate the effect of interest rate fluctuations on certain proposed debt instruments and 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 maintains an active currency hedging program and believes 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 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 finance leases that contain provisions whereby the properties subject to the finance 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 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). Remeasurement adjustments are recorded in other expense, net, where the U.S. dollar is the functional currency. |
Recently Adopted or Effective and Updates Not Yet Effective | Recently Adopted or Effective In June 2016, the Financial Accounting Standards Board (“FASB”) released Accounting Standards Update (“ASU”) 2016-13, “Financial Instruments – Credit Losses (Topic 326).” The amendment revises the impairment model to utilize an expected loss methodology in place of the previously used incurred loss methodology, which results 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 April 2019 and November 2019 within ASU 2019-04 and ASU 2019-11, respectively. The adoption of these standards in the first quarter of fiscal year 2021 did not have a material impact on the Company’s 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 adoption of this standard in the first quarter of fiscal year 2021 did not have a material impact on the Company’s 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 temporary optional expedients and exceptions for applying generally accepted accounting principles to contract modifications and hedging relationships, subject to meeting certain criteria, that reference the London Interbank Offered Rate (“LIBOR”) or another reference rate expected to be discontinued. In January 2021, the FASB issued ASU 2021-01, “ Reference Rate Reform (Topic 848),” which permits entities to apply optional expedients in Topic 848 to derivative instruments modified because of discounting transition resulting from reference rate reform. ASU 2020-04 became effective upon issuance and may be applied prospectively to contract modifications made on or before December 31, 2022. ASU 2021-01 became effective upon issuance and may be applied on a full retrospective basis as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020 or prospectively for contract modifications made on or before December 31, 2022. The Company has not yet applied the relief afforded by these standard amendments and is currently assessing contracts that will require modification due to reference rate reform to which these standard amendments may be applied. Updates Not Yet Effective |
Revenue (Tables)
Revenue (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
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 27, 2021 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 $ 955,157 $ 163,650 (1) $ — $ 1,118,807 (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 27, June 28, June 30, (in thousands) Systems Revenue $ 9,764,845 $ 6,625,130 $ 6,451,104 Customer support-related revenue and other 4,861,305 3,419,606 3,202,455 $ 14,626,150 $ 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 the Company serves: Year Ended June 27, June 28, June 30, Memory 61 % 58 % 70 % Foundry 32 % 31 % 20 % Logic/integrated device manufacturing 7 % 11 % 10 % |
Equity-based Compensation Pla_2
Equity-based Compensation Plans (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
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 27, June 28, June 30, (in thousands) Equity-based compensation expense $ 220,164 $ 189,197 $ 187,234 Income tax benefit recognized related to equity-based compensation $ 49,313 $ 36,135 $ 47,396 Income tax benefit realized from the exercise and vesting of options and RSUs $ 97,275 $ 67,060 $ 49,242 |
Summary of Stock Plan Transactions | The following table summarizes the Company’s combined service-based RSUs and market-based PRSUs: Number of Weighted-Average Outstanding, June 28, 2020 1,722 $ 214.93 Granted 527 558.64 Vested (886) 200.16 Forfeited or canceled (57) 270.00 Outstanding, June 27, 2021 1,306 $ 345.70 |
Other Expense, Net (Tables)
Other Expense, Net (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Other Income and Expenses [Abstract] | |
Components of Other Expense, Net | The significant components of other expense, net, were as follows: Year Ended June 27, June 28, June 30, (in thousands) Interest income $ 19,687 $ 85,433 $ 98,771 Interest expense (208,597) (177,440) (117,263) Gains on deferred compensation plan related assets, net 61,838 5,999 10,464 Foreign exchange (losses) gains, net (6,962) (3,317) 826 Other, net 22,815 (9,499) (10,959) $ (111,219) $ (98,824) $ (18,161) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
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 27, June 28, June 30, (in thousands) United States $ 120,161 $ 44,739 $ (59,876) Foreign 4,250,643 2,530,239 2,506,447 $ 4,370,804 $ 2,574,978 $ 2,446,571 |
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 27, June 28, June 30, (in thousands) Federal: Current $ 437,525 $ 216,513 $ 143,845 Deferred (139,531) (18,458) (10,722) 297,994 198,055 133,123 State: Current 13,560 4,724 5,994 Deferred (8,324) 6,524 4,944 5,236 11,248 10,938 Foreign: Current 162,738 119,766 110,283 Deferred (3,622) (5,844) 797 159,116 113,922 111,080 Total provision for income taxes $ 462,346 $ 323,225 $ 255,141 |
Components of Net Deferred Tax Assets and Liabilities | Significant components of the Company’s net deferred tax assets and liabilities were as follows: June 27, June 28, (in thousands) Deferred tax assets: Tax carryforwards $ 281,022 $ 249,874 Allowances and reserves 165,335 119,974 Equity-based compensation 7,322 7,167 Inventory valuation differences 28,877 26,069 Outside basis differences of foreign subsidiaries 193,734 105,159 Operating lease liabilities 37,562 40,157 Other 22,575 26,361 Gross deferred tax assets 736,427 574,761 Valuation allowance (277,133) (244,973) Net deferred tax assets 459,294 329,788 Deferred tax liabilities: Intangible assets (3,113) (6,442) Convertible debt — (24,530) Capital assets (97,602) (105,508) Amortization of goodwill (13,161) (12,256) Right-of-use assets (37,562) (40,157) Other (262) (7,509) Gross deferred tax liabilities (151,700) (196,402) Net deferred tax assets $ 307,594 $ 133,386 |
Reconciliation of Income Tax Expense Provided at Federal Statutory Rate to Actual Income Tax Expense | A reconciliation of income tax expense provided at the federal statutory rate (21% in fiscal years 2021, 2020, and 2019) to actual income tax expense is as follows: Year Ended June 27, June 28, June 30, (in thousands) Income tax expense computed at federal statutory rate $ 917,869 $ 540,745 $ 513,780 State income taxes, net of federal tax benefit (33,478) (28,046) (17,565) Foreign income taxed at different rates (365,886) (146,023) (260,344) Settlements and reductions in uncertain tax positions (13,613) (12,854) (31,291) Tax credits (86,709) (88,762) (71,779) State valuation allowance, net of federal tax benefit 39,477 30,923 26,742 Equity-based compensation (45,764) (23,248) (7,566) Other permanent differences and miscellaneous items 50,450 50,490 39,251 U.S. tax reform impacts — — 63,913 $ 462,346 $ 323,225 $ 255,141 |
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 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 Settlements and effective settlements with tax authorities (1,443) Lapse of statute of limitations (8,456) Increases in balances related to tax positions taken during prior periods 15,986 Decreases in balances related to tax positions taken during prior periods (2,746) Increases in balances related to tax positions taken during current period 86,735 Balance as of June 27, 2021 $ 566,771 |
Net Income per Share (Tables)
Net Income per Share (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Numerators and Denominators of Basic and Diluted Computations for Net Income Per Share | The following table reconciles the inputs to the basic and diluted computations for net income per share. Year Ended June 27, June 28, June 30, (in thousands, except per share data) Numerator: Net income $ 3,908,458 $ 2,251,753 $ 2,191,430 Denominator: Basic average shares outstanding 143,609 144,814 152,478 Effect of potential dilutive securities: Employee stock plans 1,168 1,236 1,323 Convertible notes 543 3,040 5,610 Warrants — — 504 Diluted average shares outstanding 145,320 149,090 159,915 Net income per share - basic $ 27.22 $ 15.55 $ 14.37 Net income per share - diluted $ 26.90 $ 15.10 $ 13.70 |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
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 tables set 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 27, 2021, and June 28, 2020: June 27, 2021 (Reported Within) Cost Unrealized Unrealized Fair Value Cash and Investments Restricted Other (in thousands) Cash $ 875,738 $ — $ — $ 875,738 $ 873,278 $ — $ 2,460 $ — Time deposit 1,548,874 — — 1,548,874 1,298,847 — 250,027 — Level 1: Money market funds 2,246,138 — — 2,246,138 2,246,138 — — — U.S. Treasury and agencies 204,743 96 (47) 204,792 — 204,792 — — Mutual funds 80,694 15,510 (33) 96,171 — — — 96,171 Level 1 total 2,531,575 15,606 (80) 2,547,101 2,246,138 204,792 — 96,171 Level 2: Government-sponsored enterprises 3,498 7 — 3,505 — 3,505 — — Foreign government bonds 32,995 21 (4) 33,012 — 33,012 — — Corporate notes and bonds 1,043,308 2,247 (457) 1,045,098 — 1,045,098 — — Mortgage backed securities - residential 5,623 54 — 5,677 — 5,677 — — Mortgage backed securities - commercial 18,830 17 (59) 18,788 — 18,788 — — Level 2 total 1,104,254 2,346 (520) 1,106,080 — 1,106,080 — — Total $ 6,060,441 $ 17,952 $ (600) $ 6,077,793 $ 4,418,263 $ 1,310,872 $ 252,487 $ 96,171 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 |
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. As of June 27, 2021, there are no unrealized loss positions with a duration equal to or greater than twelve months: June 27, 2021 Unrealized Losses Fair Value Gross (in thousands) U.S. Treasury and agencies $ 122,791 $ (47) Mutual funds 2,642 (33) Foreign government bonds 2,133 (4) Corporate notes and bonds 278,133 (457) Mortgage backed securities - commercial 15,076 (59) $ 420,775 $ (600) |
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 27, 2021, are as follows: Cost Fair Value (in thousands) Due in one year or less $ 4,198,483 $ 4,198,992 Due after one year through five years 866,243 867,562 Due in more than five years 39,283 39,330 $ 5,104,009 $ 5,105,884 |
Schedule of Outstanding Foreign Currency Forward Contracts | The following table provides the total notional value of cash flow hedge instruments outstanding as of June 27, 2021: June 27, 2021 (In thousands) Buy Contracts $ 353,313 Sell Contacts 598,407 The following table provides the total notional value of balance sheet hedge instruments outstanding as of June 27, 2021: June 27, 2021 (In thousands) Buy Contracts $ 214,606 Sell Contacts 228,880 |
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 27, 2021 Year Ended June 28, 2020 Location of Gain Gain (Loss) Gain (Loss) Gain (Loss) Reclassified Derivatives in Cash Flow Hedging Relationships (in thousands) Foreign exchange contracts Revenue $ 17,614 $ 868 $ 4,095 $ 2,418 Foreign exchange contracts Cost of goods sold 3,756 3,659 (2,104) (3,101) Foreign exchange contracts R&D 898 — — — Foreign exchange contracts SG&A 4,190 3,623 (1,158) (1,501) Interest rate contracts Other expense, net — (3,855) (40,610) (700) $ 26,458 $ 4,295 $ (39,777) $ (2,884) The effect of the Company’s balance sheet hedge derivative instruments on the Company’s Consolidated Statement of Operations was as follows: Year Ended June 27, 2021 June 28, 2020 Derivatives Not Designated as Hedging Instruments: Location of Gain (Loss) Gain Loss (in thousands) Foreign exchange contracts Other expense, net $ 7,057 $ (5,971) |
Inventories (Tables)
Inventories (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Inventory Disclosure [Abstract] | |
Schedule of Inventories | Inventories consist of the following: June 27, June 28, (in thousands) Raw materials $ 1,519,456 $ 1,161,961 Work-in-process 391,686 251,199 Finished goods 778,152 486,864 $ 2,689,294 $ 1,900,024 |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | Property and equipment, net, is presented in the table below. June 27, June 28, (in thousands) Manufacturing and engineering equipment $ 1,328,399 $ 1,154,668 Buildings and improvements 840,661 660,865 Computer and computer-related equipment 181,781 178,193 Office equipment, furniture and fixtures 95,259 83,386 Land 84,681 58,805 2,530,781 2,135,917 Less: accumulated depreciation and amortization (1,271,356) (1,082,827) $ 1,259,425 $ 1,053,090 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
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 27, 2021 June 28, 2020 Gross Accumulated Net Gross Accumulated Net (in thousands) Customer relationships $ 630,303 $ (581,406) $ 48,897 $ 630,137 $ (532,550) $ 97,587 Existing technology 669,359 (659,898) 9,461 668,992 (654,382) 14,610 Patents and other intangible assets 132,774 (58,767) 74,007 98,342 (42,007) 56,335 Total intangible assets $ 1,432,436 $ (1,300,071) $ 132,365 $ 1,397,471 $ (1,228,939) $ 168,532 |
Estimated Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets as of June 27, 2021, is reflected in the table below. The table excludes $14.1 million of capitalized costs for intangible assets that have not yet been placed into service. Fiscal Year Amount (in thousands) 2022 $ 70,190 2023 24,228 2024 13,647 2025 7,431 2026 2,034 Thereafter 711 $ 118,241 |
Accrued Expenses and Other Cu_2
Accrued Expenses and Other Current Liabilities (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Payables and Accruals [Abstract] | |
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: June 27, June 28, (in thousands) Accrued compensation $ 552,925 $ 402,401 Warranty reserves 176,030 117,839 Income and other taxes payable 348,206 215,652 Dividend payable 185,431 167,129 Other 456,891 369,634 $ 1,719,483 $ 1,272,655 |
Long Term Debt and Other Borr_2
Long Term Debt and Other Borrowings (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Debt | As of June 27, 2021, and June 28, 2020, the Company’s outstanding debt consisted of the following: June 27, 2021 June 28, 2020 Amount Effective Interest Rate Amount Effective Interest Rate Fixed-rate 2.80% Senior Notes Due June 15, 2021 (“2021 Notes”) $ — — % $ 800,000 2.95 % Fixed-rate 3.80% Senior Notes Due March 15, 2025 (“2025 Notes”) 500,000 3.87 % 500,000 3.87 % Fixed-rate 3.75% Senior Notes Due March 15, 2026 ("2026 Notes") 750,000 3.86 % 750,000 3.86 % Fixed-rate 4.00% Senior Notes Due March 15, 2029 ("2029 Notes") 1,000,000 4.09 % 1,000,000 4.09 % Fixed-rate 1.90% Senior Note Due June 15, 2030 ("2030 Notes") 750,000 2.01 % 750,000 2.01 % Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (“2041 Notes”) — (1) — % 48,460 (2) 4.28 % Fixed-rate 4.875% Senior Notes Due March 15, 2049 ("2049 Notes") 750,000 4.93 % 750,000 4.93 % Fixed-rate 2.875% Senior Note Due June 15, 2050 ("2050 Notes") 750,000 2.93 % 750,000 2.93 % Fixed-rate 3.125% Senior Note Due June 15, 2060 ("2060 Notes") 500,000 3.18 % 500,000 3.18 % Total debt outstanding, at par 5,000,000 5,848,460 Unamortized discount (38,243) (53,086) Fair value adjustment - interest rate contracts 6,621 (3) 8,405 (3) Unamortized bond issuance costs (7,443) (8,301) Total debt outstanding, at carrying value $ 4,960,935 $ 5,795,478 Reported as: Current portion of long-term debt $ — $ 836,107 Long-term debt 4,960,935 4,959,371 Total debt outstanding, at carrying value $ 4,960,935 $ 5,795,478 (1) On March 26, 2021, the Company issued a notice of redemption to the existing bondholders with a redemption date of May 21, 2021. As such, the convertible notes outstanding on May 21, 2021 were redeemed by the Company. (2) As of June 28, 2020, 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. (3) This amount represents a cumulative fair value gain for discontinued hedging relationships, net of an immaterial amount of amortization as of the periods presented. |
Schedule of Contractual Cash Obligations | The Company’s contractual cash obligations relating to its outstanding debt as of June 27, 2021, were as follows: Payments Due by Fiscal Year: (in thousands) 2022 $ — 2023 — 2024 — 2025 500,000 2026 750,000 Thereafter 3,750,000 Total $ 5,000,000 |
Components of Convertible Notes | Selected additional information regarding the 2041 Notes outstanding as of June 28, 2020, is as follows: 2041 Notes June 28, (in thousands, except years, percentages, conversion rate, and conversion price) Carrying amount of permanent equity component, net of tax $ 161,467 Carrying amount of temporary equity component, net of tax $ 10,995 Remaining amortization period (years) 20.9 |
Schedule of Additional Senior Notes Information | Selected additional information regarding the Senior Notes outstanding as of June 27, 2021, is as follows: Remaining Amortization period Fair Value of Notes (Level 2) (years) (in thousands) 2025 Notes 3.7 $ 550,340 2026 Notes 4.7 $ 838,890 2029 Notes 7.7 $ 1,157,490 2030 Notes 9.0 $ 748,193 2049 Notes 27.7 $ 1,004,213 2050 Notes 29.0 $ 746,910 2060 Notes 39.0 $ 514,050 |
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 27, 2021, June 28, 2020, and June 30, 2019. Year Ended June 27, June 28, June 30, (in thousands) Contractual interest coupon $ 197,367 $ 169,483 $ 100,712 Amortization of interest discount 3,934 4,280 3,937 Amortization of issuance costs 1,639 1,632 1,426 Effect of interest rate contracts, net 2,070 1,037 4,086 Total interest cost recognized $ 205,010 $ 176,432 $ 110,161 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Leases [Abstract] | |
Components of Lease Expense | The components of lease expense were as follows for the years ended June 27, 2021 and June 28, 2020: Year Ended June 27, June 28, (in thousands) Financing lease cost: Amortization of right-of-use assets $ 7,131 $ 3,613 Interest on lease liabilities 697 506 Total finance lease cost $ 7,828 $ 4,119 Operating lease cost $ 51,519 $ 46,101 Variable lease cost 219,040 91,851 |
Supplemental Cash Flow Information | Supplemental cash flow information related to leases was as follows as of June 27, 2021 and June 28, 2020: Year Ended June 27, June 28, (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows paid for operating leases $ 63,895 $ 50,223 Financing cash flows paid for principal portion of finance leases 5,952 3,539 Right-of-use assets obtained in exchange for lease obligations: Operating leases $ 48,993 108,816 Finance leases 29,497 3,019 June 27, 2021 June 28, 2020 Weighted-Average Remaining Lease Term Weighted-Average Discount Rate Weighted-Average Remaining Lease Term Weighted-Average Discount Rate (in years) (in years) Operating leases 5.5 2.30 % 9.0 2.57 % Finance leases 5.3 1.69 % 4.1 2.79 % |
Supplemental Balance Sheet Information | Supplemental balance sheet information related to leases were as follows as of June 27, 2021 and June 28, 2020: June 27, June 28, (in thousands) Operating leases Other assets $ 173,784 $ 174,583 Accrued expenses and other current liabilities $ 45,310 $ 49,480 Other long-term liabilities 118,385 123,889 Total operating lease liabilities $ 163,695 $ 173,369 Finance Leases Property and Equipment, net $ 44,054 $ 18,409 Current portion of long-term debt and lease liabilities $ 11,349 $ 3,770 Long-term debt and lease liabilities, less current portion 29,398 11,477 Total finance lease liabilities $ 40,747 $ 15,247 |
Maturities of Finance Lease Liabilities | As of June 27, 2021, the maturities of lease liabilities are as follows: Operating Leases Finance Leases (in thousands) 2022 $ 48,487 $ 11,870 2023 32,774 6,438 2024 22,756 5,882 2025 17,803 5,152 2026 12,702 5,062 Thereafter 38,628 8,244 Total lease payments $ 173,150 $ 42,648 Less imputed interest (9,455) (1,901) Total $ 163,695 $ 40,747 |
Maturities of Operating Lease Liabilities | As of June 27, 2021, the maturities of lease liabilities are as follows: Operating Leases Finance Leases (in thousands) 2022 $ 48,487 $ 11,870 2023 32,774 6,438 2024 22,756 5,882 2025 17,803 5,152 2026 12,702 5,062 Thereafter 38,628 8,244 Total lease payments $ 173,150 $ 42,648 Less imputed interest (9,455) (1,901) Total $ 163,695 $ 40,747 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Purchase Commitments | The Company’s commitments related to these agreements as of June 27, 2021, were as follows: Payments Due by Fiscal Year: Purchase (in thousands) 2022 $ 660,201 2023 57,023 2024 57,023 2025 20,362 2026 20,362 Thereafter 3,215 Total $ 818,186 |
Schedule of Changes in Product Warranty Reserves | Changes in the Company’s product warranty reserves were as follows: Year Ended June 27, June 28, (in thousands) Balance at beginning of period $ 129,197 $ 127,932 Warranties issued during the period 229,026 151,508 Settlements made during the period (172,759) (131,177) Changes in liability for pre-existing warranties 6,294 (19,066) Balance at end of period $ 191,758 $ 129,197 |
Stock Repurchase Program (Table
Stock Repurchase Program (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
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 28, 2020 $ 1,773,427 Quarter ended September 27, 2020 1,344 $ 461,998 $ 343.73 $ 1,311,429 Board authorization, $5 billion increase, November 2020 $ 6,311,429 Quarter ended December 27, 2020 1,789 $ 724,485 $ 404.98 $ 5,586,944 Quarter ended March 28, 2021 1,474 $ 925,099 $ 519.30 $ 4,661,845 Quarter ended June 27, 2021 922 (2) $ 439,625 $ 619.76 $ 4,222,220 (1) Average price paid per share excludes the 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. 27, 2021 | |
Equity [Abstract] | |
Components of Accumulated Other Comprehensive Loss | The components of accumulated other comprehensive loss, net of tax at the end of June 27, 2021, as well as the activity during the fiscal year ended June 27, 2021, were as follows: Accumulated Accumulated Accumulated Accumulated Total (in thousands) Balance as of June 28, 2020 $ (45,811) $ (32,796) $ 4,923 $ (20,527) $ (94,211) Other comprehensive income (loss) before reclassifications 14,398 22,139 (4,098) 326 32,765 (Gains) losses reclassified from accumulated other comprehensive income (loss) to net income (1) — (3,468) 786 — (2,682) Net current-period other comprehensive income (loss) 14,398 18,671 (3,312) 326 30,083 Balance as of June 27, 2021 $ (31,413) $ (14,125) $ 1,611 $ (20,201) $ (64,128) (1) Amount of after-tax gain reclassified from accumulated other comprehensive income into net income is not material individually or in the aggregate, or to any individual location in our Consolidated Statement of Operations. |
Segment, Geographic Informati_2
Segment, Geographic Information and Major Customers (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
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 27, June 28, June 30, Revenue: (in thousands) China $ 5,137,886 $ 3,083,916 $ 2,161,440 Korea 3,924,685 2,391,257 2,205,348 Taiwan 2,117,999 1,906,223 1,596,261 Japan 1,363,907 954,743 1,969,869 Southeast Asia 945,478 587,638 615,813 United States 672,716 812,482 748,601 Europe 463,479 308,477 356,227 Total revenue $ 14,626,150 $ 10,044,736 $ 9,653,559 June 27, June 28, June 30, Long-lived assets: (in thousands) United States $ 1,137,490 $ 1,052,714 $ 933,054 Southeast Asia 129,881 31,027 5,542 Europe 77,661 80,297 72,928 Korea 62,502 49,943 28,200 Taiwan 47,279 11,555 6,759 Japan 13,149 11,826 5,750 China 9,301 8,720 6,844 $ 1,477,263 $ 1,246,082 $ 1,059,077 |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Details) - USD ($) | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Line Items] | |||
Impairments of goodwill | $ 0 | $ 0 | $ 0 |
Impairment loss on long-lived assets | $ 0 | 0 | 0 |
Impairment of investments | $ 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 | ||
Furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Software | Minimum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 3 years | ||
Software | Maximum | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 5 years | ||
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, useful life | 25 years |
Revenue - Additional Informatio
Revenue - Additional Information (Details) $ in Millions | 12 Months Ended |
Jun. 27, 2021USD ($)segment | |
Revenue from Contract with Customer [Abstract] | |
Revenue recognized | $ | $ 452.8 |
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. 27, 2021USD ($) |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 1,118,807 |
Revenue, Remaining Performance Obligation, Expected Timing of Satisfaction, Start Date [Axis]: 2021-06-28 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 955,157 |
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]: 2022-06-27 | |
Revenue from Contract with Customer [Abstract] | |
Deferred revenue | $ 163,650 |
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]: 2024-07-01 | |
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. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 14,626,150 | $ 10,044,736 | $ 9,653,559 |
Systems Revenue | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | 9,764,845 | 6,625,130 | 6,451,104 |
Customer support-related revenue and other | |||
Disaggregation of Revenue [Line Items] | |||
Revenue | $ 4,861,305 | $ 3,419,606 | $ 3,202,455 |
Revenue - Schedule of System Re
Revenue - Schedule of System Revenues of Primary Markets (Details) - Systems revenue - Revenue benchmark | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Memory | |||
Concentration Risk [Line Items] | |||
Concentration by percent | 61.00% | 58.00% | 70.00% |
Foundry | |||
Concentration Risk [Line Items] | |||
Concentration by percent | 32.00% | 31.00% | 20.00% |
Logic/integrated device manufacturing | |||
Concentration Risk [Line Items] | |||
Concentration by percent | 7.00% | 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. 27, 2021USD ($)d$ / sharesshares | Jun. 28, 2020USD ($)$ / sharesshares | Jun. 30, 2019USD ($)$ / shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Options outstanding (shares) | 219,900 | ||
Weighted-average exercise price options outstanding (usd per share) | $ / shares | $ 201.44 | ||
Exercisable options outstanding (shares) | 119,400 | ||
Weighted-average exercise price options exercisable (usd per share) | $ / shares | $ 148.15 | ||
Total unrecognized compensation expense | $ | $ 6.3 | ||
RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares outstanding (shares) | 1,306,000 | 1,722,000 | |
Weighted average grant date fair value (in usd per share) | $ | $ 177.4 | $ 166.9 | $ 152.1 |
Fair value of service-based and market-based RSUs | 886,000 | ||
Unrecognized compensation expense | $ | $ 364.6 | ||
Weighted average remaining period for recognition | 2 years 3 months 18 days | ||
Vested (usd per share) | $ / shares | $ 200.16 | ||
Service-based RSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Shares outstanding (shares) | 1,000,000 | ||
Market-Based PRSUs | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
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% | ||
Shares outstanding (shares) | 300,000 | ||
Vested (usd per share) | $ / shares | $ 640.69 | $ 320.69 | $ 165.78 |
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% | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period | 3 years | ||
Weighted average remaining period for recognition | 2 years | ||
Maximum contractual term | 7 years | ||
ESPP | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for grant (shares) | 5,900,000 | ||
Unrecognized compensation expense | $ | $ 31.9 | ||
Weighted average remaining period for recognition | 1 year | ||
Purchase price per share, percent | 85.00% | ||
Shares sold to employees (shares) | 484,000 | ||
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) | 8,585,404 |
Equity-based Compensation Pla_4
Equity-based Compensation Plans - Recognized Equity Based Compensation Expenses and Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Equity-based compensation expense | $ 220,164 | $ 189,197 | $ 187,234 |
Income tax benefit recognized related to equity-based compensation | 49,313 | 36,135 | 47,396 |
Income tax benefit realized from the exercise and vesting of options and RSUs | $ 97,275 | $ 67,060 | $ 49,242 |
Equity-based Compensation Pla_5
Equity-based Compensation Plans - Summary of Stock Plan Activity (Details) - RSUs | 12 Months Ended |
Jun. 27, 2021$ / sharesshares | |
Number of Shares (in thousands) | |
Beginning balance (shares) | shares | 1,722,000 |
Granted (shares) | shares | 527,000 |
Vested (shares) | shares | (886,000) |
Forfeited or canceled (shares) | shares | (57,000) |
Ending balance (shares) | shares | 1,306,000 |
Weighted-Average Grant Date Fair Value | |
Beginning balance (usd per share) | $ / shares | $ 214.93 |
Granted (usd per share) | $ / shares | 558.64 |
Vested (usd per share) | $ / shares | 200.16 |
Forfeited or canceled (usd per share) | $ / shares | 270 |
Ending balance (usd per share) | $ / shares | $ 345.70 |
Other Expense, Net (Details)
Other Expense, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Other Income and Expenses [Abstract] | |||
Interest income | $ 19,687 | $ 85,433 | $ 98,771 |
Interest expense | (208,597) | (177,440) | (117,263) |
Gains on deferred compensation plan related assets, net | 61,838 | 5,999 | 10,464 |
Foreign exchange (losses) gains, net | (6,962) | (3,317) | 826 |
Other, net | 22,815 | (9,499) | (10,959) |
Other income (expense), net | (111,219) | (98,824) | (18,161) |
Debt Instrument [Line Items] | |||
Long-term debt | $ 5,000,000 | ||
Senior notes | |||
Debt Instrument [Line Items] | |||
Long-term debt | $ 2,000,000 | $ 2,500,000 |
Income Taxes - Income (Loss) Be
Income Taxes - Income (Loss) Before Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
United States | $ 120,161 | $ 44,739 | $ (59,876) |
Foreign | 4,250,643 | 2,530,239 | 2,506,447 |
Income before income taxes | $ 4,370,804 | $ 2,574,978 | $ 2,446,571 |
Income Taxes - Provision (Benef
Income Taxes - Provision (Benefit) for Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Federal: | |||
Current | $ 437,525 | $ 216,513 | $ 143,845 |
Deferred | (139,531) | (18,458) | (10,722) |
Federal Tax Provision (Benefit) | 297,994 | 198,055 | 133,123 |
State: | |||
Current | 13,560 | 4,724 | 5,994 |
Deferred | (8,324) | 6,524 | 4,944 |
State Tax Provision (Benefit) | 5,236 | 11,248 | 10,938 |
Foreign: | |||
Current | 162,738 | 119,766 | 110,283 |
Deferred | (3,622) | (5,844) | 797 |
Foreign Tax Provision (Benefit) | 159,116 | 113,922 | 111,080 |
Total provision for income taxes | $ 462,346 | $ 323,225 | $ 255,141 |
Income Taxes - Components of Ne
Income Taxes - Components of Net Deferred Tax Assets (Details) - USD ($) $ in Thousands | Jun. 27, 2021 | Jun. 28, 2020 |
Deferred tax assets: | ||
Tax carryforwards | $ 281,022 | $ 249,874 |
Allowances and reserves | 165,335 | 119,974 |
Equity-based compensation | 7,322 | 7,167 |
Inventory valuation differences | 28,877 | 26,069 |
Outside basis differences of foreign subsidiaries | 193,734 | 105,159 |
Operating lease liabilities | 37,562 | 40,157 |
Other | 22,575 | 26,361 |
Gross deferred tax assets | 736,427 | 574,761 |
Valuation allowance | (277,133) | (244,973) |
Net deferred tax assets | 459,294 | 329,788 |
Deferred tax liabilities: | ||
Intangible assets | (3,113) | (6,442) |
Convertible debt | 0 | (24,530) |
Capital assets | (97,602) | (105,508) |
Amortization of goodwill | (13,161) | (12,256) |
Right-of-use assets | (37,562) | (40,157) |
Other | (262) | (7,509) |
Gross deferred tax liabilities | (151,700) | (196,402) |
Net deferred tax assets | $ 307,594 | $ 133,386 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | Dec. 29, 2019 | Jun. 24, 2018 | |
Income Taxes [Line Items] | |||||
Valuation allowance for deferred tax assets | $ 277,133 | $ 244,973 | |||
U.S. federal statutory tax rate (as a percent) | 21.00% | 21.00% | 21.00% | ||
Unremitted earnings of foreign subsidiaries | $ 774,500 | ||||
Withholding taxes on unremitted foreign earning | 122,100 | ||||
Unrecognized tax benefits | 566,771 | $ 476,695 | $ 420,772 | $ 305,413 | |
Increase in unrecognized tax benefits | 90,100 | ||||
Unrecognized tax benefits that would impact effective tax rate | 504,400 | 423,800 | 376,000 | ||
Gross interest and penalties, relating to unrecognized tax benefits accrued | 54,600 | $ 40,200 | $ 19,100 | ||
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 | 37,700 | ||||
Federal | |||||
Income Taxes [Line Items] | |||||
Net operating loss carry-forwards | 25,200 | ||||
State | |||||
Income Taxes [Line Items] | |||||
Net operating loss carry-forwards | 94,500 | ||||
Federal and state tax credit carry forward | 408,900 | ||||
California | |||||
Income Taxes [Line Items] | |||||
Valuation allowance for deferred tax assets | $ 277,100 |
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. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Income tax expense computed at federal statutory rate | $ 917,869 | $ 540,745 | $ 513,780 |
State income taxes, net of federal tax benefit | (33,478) | (28,046) | (17,565) |
Foreign income taxed at different rates | (365,886) | (146,023) | (260,344) |
Settlements and reductions in uncertain tax positions | (13,613) | (12,854) | (31,291) |
Tax credits | (86,709) | (88,762) | (71,779) |
State valuation allowance, net of federal tax benefit | 39,477 | 30,923 | 26,742 |
Equity-based compensation | (45,764) | (23,248) | (7,566) |
Other permanent differences and miscellaneous items | 50,450 | 50,490 | 39,251 |
U.S. tax reform impacts | 0 | 0 | 63,913 |
Total provision for income taxes | $ 462,346 | $ 323,225 | $ 255,141 |
Income Taxes - Changes in Balan
Income Taxes - Changes in Balance of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Changes in Gross Unrecognized Tax Benefits | |||
Beginning balance | $ 476,695 | $ 420,772 | $ 305,413 |
Settlements and effective settlements with tax authorities | (1,443) | (1,836) | (3,705) |
Lapse of statute of limitations | (8,456) | (8,026) | (28,176) |
Increases in balances related to tax positions taken during prior periods | 15,986 | 3,206 | 78,927 |
Decreases in balances related to tax positions taken during prior periods | (2,746) | (3,989) | (1,577) |
Increases in balances related to tax positions taken during current period | 86,735 | 66,568 | 69,890 |
Ending balance | $ 566,771 | $ 476,695 | $ 420,772 |
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. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Numerator: | |||
Net income | $ 3,908,458 | $ 2,251,753 | $ 2,191,430 |
Denominator: | |||
Basic average shares outstanding | 143,609 | 144,814 | 152,478 |
Effect of potential dilutive securities: | |||
Employee stock plans (shares) | 1,168 | 1,236 | 1,323 |
Convertible notes (shares) | 543 | 3,040 | 5,610 |
Warrants (shares) | 0 | 0 | 504 |
Diluted average shares outstanding | 145,320 | 149,090 | 159,915 |
Net income per share - basic (usd per share) | $ 27.22 | $ 15.55 | $ 14.37 |
Net income per share - diluted (usd per share) | $ 26.90 | $ 15.10 | $ 13.70 |
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. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt securities, Cost | $ 5,104,009 | ||
Total Cost | 6,060,441 | $ 7,027,291 | |
Total, Unrealized Gain | 17,952 | 10,543 | |
Total, Unrealized (Loss) | (600) | (1,244) | |
Total, Fair Value | 6,077,793 | 7,036,590 | |
Cash and Cash Equivalents | 4,418,263 | 4,915,172 | $ 3,658,219 |
Investments | 1,310,872 | 1,795,080 | |
Restricted Cash & Investments | 252,487 | 253,911 | |
Other Assets | 96,171 | 72,427 | |
Cash | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 875,738 | 977,862 | |
Cash and Cash Equivalents | 873,278 | 973,978 | |
Investments | 0 | 0 | |
Restricted Cash & Investments | 2,460 | 3,884 | |
Other Assets | 0 | 0 | |
Time deposit | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Cash and Cash Equivalents | 1,548,874 | 2,244,655 | |
Cash and Cash Equivalents | 1,298,847 | 1,994,628 | |
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 | 2,531,575 | 2,330,222 | |
Total, Unrealized Gain | 15,606 | 4,944 | |
Total, Unrealized (Loss) | (80) | (937) | |
Total, Fair Value | 2,547,101 | 2,334,229 | |
Cash and Cash Equivalents | 2,246,138 | 1,786,342 | |
Investments | 204,792 | 475,460 | |
Restricted Cash & Investments | 0 | 0 | |
Other Assets | 96,171 | 72,427 | |
Level 1 | Money market funds | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Debt securities, Cost | 2,246,138 | 1,709,350 | |
Debt securities, Unrealized Gain | 0 | 0 | |
Debt securities, Unrealized (Loss) | 0 | 0 | |
Debt securities, Fair Value | 2,246,138 | 1,709,350 | |
Cash and Cash Equivalents | 2,246,138 | 1,709,350 | |
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 | 204,743 | 552,088 | |
Debt securities, Unrealized Gain | 96 | 373 | |
Debt securities, Unrealized (Loss) | (47) | (9) | |
Debt securities, Fair Value | 204,792 | 552,452 | |
Cash and Cash Equivalents | 0 | 76,992 | |
Investments | 204,792 | 475,460 | |
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 | 80,694 | 68,784 | |
Trading securities, Unrealized Gain | 15,510 | 4,571 | |
Trading securities, Unrealized (Loss) | (33) | (928) | |
Trading securities, Fair Value | 96,171 | 72,427 | |
Cash and Cash Equivalents | 0 | 0 | |
Investments | 0 | 0 | |
Restricted Cash & Investments | 0 | 0 | |
Other Assets | 96,171 | 72,427 | |
Level 2 | |||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |||
Total Cost | 1,104,254 | 1,474,552 | |
Total, Unrealized Gain | 2,346 | 5,599 | |
Total, Unrealized (Loss) | (520) | (307) | |
Total, Fair Value | 1,106,080 | 1,479,844 | |
Cash and Cash Equivalents | 0 | 160,224 | |
Investments | 1,106,080 | 1,319,620 | |
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 | 3,498 | 31,442 | |
Debt securities, Unrealized Gain | 7 | 12 | |
Debt securities, Unrealized (Loss) | 0 | 0 | |
Debt securities, Fair Value | 3,505 | 31,454 | |
Cash and Cash Equivalents | 0 | 25,999 | |
Investments | 3,505 | 5,455 | |
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 | 32,995 | 10,693 | |
Debt securities, Unrealized Gain | 21 | 28 | |
Debt securities, Unrealized (Loss) | (4) | (5) | |
Debt securities, Fair Value | 33,012 | 10,716 | |
Cash and Cash Equivalents | 0 | 2,540 | |
Investments | 33,012 | 8,176 | |
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 | 1,043,308 | 1,405,615 | |
Debt securities, Unrealized Gain | 2,247 | 5,344 | |
Debt securities, Unrealized (Loss) | (457) | (302) | |
Debt securities, Fair Value | 1,045,098 | 1,410,657 | |
Cash and Cash Equivalents | 0 | 131,685 | |
Investments | 1,045,098 | 1,278,972 | |
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 | 5,623 | 3,142 | |
Debt securities, Unrealized Gain | 54 | 71 | |
Debt securities, Unrealized (Loss) | 0 | 0 | |
Debt securities, Fair Value | 5,677 | 3,213 | |
Cash and Cash Equivalents | 0 | 0 | |
Investments | 5,677 | 3,213 | |
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 | 18,830 | 23,660 | |
Debt securities, Unrealized Gain | 17 | 144 | |
Debt securities, Unrealized (Loss) | (59) | 0 | |
Debt securities, Fair Value | 18,788 | 23,804 | |
Cash and Cash Equivalents | 0 | 0 | |
Investments | 18,788 | 23,804 | |
Restricted Cash & Investments | 0 | 0 | |
Other Assets | $ 0 | $ 0 |
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. 27, 2021USD ($) |
Fair Value | |
Unrealized Losses Less than 12 Months | $ 420,775 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months | (600) |
U.S. Treasury and agencies | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 122,791 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (47) |
Mutual funds | |
Fair Value | |
Unrealized Losses Less than 12 Months, trading | 2,642 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, trading | (33) |
Foreign government bonds | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 2,133 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (4) |
Corporate notes and bonds | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 278,133 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | (457) |
Mortgage backed securities - commercial | |
Fair Value | |
Unrealized Losses Less than 12 Months, available for sale | 15,076 |
Gross Unrealized Loss | |
Unrealized Losses Less than 12 Months, available for sale | $ (59) |
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. 27, 2021USD ($) |
Cost | |
Due in one year or less | $ 4,198,483 |
Due after one year through five years | 866,243 |
Due in more than five years | 39,283 |
Debt securities, Cost | 5,104,009 |
Fair Value | |
Due in one year or less | 4,198,992 |
Due after one year through five years | 867,562 |
Due in more than five years | 39,330 |
Estimated fair value due, Total | $ 5,105,884 |
Financial Instruments - Additio
Financial Instruments - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Financial Instruments [Line Items] | |||
Net unrealized gains (losses) during the period | $ 22,139 | $ (30,603) | $ 2,461 |
Accounts Receivable | Customer concentration risk | Customer 1 | |||
Financial Instruments [Line Items] | |||
Concentration by percent | 23.00% | 21.00% | |
Accounts Receivable | Customer concentration risk | Customer 2 | |||
Financial Instruments [Line Items] | |||
Concentration by percent | 13.00% | 12.00% | |
Cash flow hedging | |||
Financial Instruments [Line Items] | |||
Reclassification from other comprehensive income to earnings, period | 12 months | ||
Cash flow hedging | Interest rate swap | |||
Financial Instruments [Line Items] | |||
Net unrealized gains (losses) during the period | $ (31,500) | ||
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 - Sched_3
Financial Instruments - Schedule of Fair Value of Derivative Instruments (Details) - Forward contracts - Foreign exchange contracts $ in Thousands | Jun. 27, 2021USD ($) |
Derivatives Designated As Hedging Instruments | Long | |
Derivative [Line Items] | |
Notional Value | $ 353,313 |
Derivatives Designated As Hedging Instruments | Short | |
Derivative [Line Items] | |
Notional Value | 598,407 |
Derivatives Not Designated as Hedging Instruments | Long | |
Derivative [Line Items] | |
Notional Value | 214,606 |
Derivatives Not Designated as Hedging Instruments | Short | |
Derivative [Line Items] | |
Notional Value | $ 228,880 |
Financial Instruments - Sched_4
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. 27, 2021 | Jun. 28, 2020 | |
Foreign exchange contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain Recognized in AOCI | $ 26,458 | $ (39,777) |
Gain (Loss) Reclassified from AOCI into Income | 4,295 | (2,884) |
Foreign exchange contracts | Revenue | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain Recognized in AOCI | 17,614 | 4,095 |
Gain (Loss) Reclassified from AOCI into Income | 868 | 2,418 |
Foreign exchange contracts | Cost of goods sold | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain Recognized in AOCI | 3,756 | (2,104) |
Gain (Loss) Reclassified from AOCI into Income | 3,659 | (3,101) |
Foreign exchange contracts | R&D | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain Recognized in AOCI | 898 | 0 |
Gain (Loss) Reclassified from AOCI into Income | 0 | 0 |
Foreign exchange contracts | SG&A | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain Recognized in AOCI | 4,190 | (1,158) |
Gain (Loss) Reclassified from AOCI into Income | 3,623 | (1,501) |
Foreign exchange contracts | Other expense, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain Recognized in Income | 7,057 | (5,971) |
Interest rate contracts | Other expense, net | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Gain Recognized in AOCI | 0 | (40,610) |
Gain (Loss) Reclassified from AOCI into Income | $ (3,855) | $ (700) |
Inventories (Details)
Inventories (Details) - USD ($) $ in Thousands | Jun. 27, 2021 | Jun. 28, 2020 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 1,519,456 | $ 1,161,961 |
Work-in-process | 391,686 | 251,199 |
Finished goods | 778,152 | 486,864 |
Total inventories | $ 2,689,294 | $ 1,900,024 |
Property and Equipment - Schedu
Property and Equipment - Schedule of Property and Equipment Net (Details) - USD ($) $ in Thousands | Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 |
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 2,530,781 | $ 2,135,917 | |
Less: accumulated depreciation and amortization | (1,271,356) | (1,082,827) | |
Property and equipment, net | 1,259,425 | 1,053,090 | $ 1,059,077 |
Manufacturing and engineering equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 1,328,399 | 1,154,668 | |
Buildings and improvements | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 840,661 | 660,865 | |
Computer and computer-related equipment | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 181,781 | 178,193 | |
Office equipment, furniture and fixtures | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | 95,259 | 83,386 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Property and equipment, gross | $ 84,681 | $ 58,805 |
Property and Equipment - Additi
Property and Equipment - Additional Information (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Finance right-of-use assets | $ 44,054 | $ 18,409 | |
Depreciation expense | $ 229,800 | $ 198,800 | $ 182,100 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Additional Information (Details) - USD ($) | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||
Goodwill | $ 1,490,134,000 | $ 1,484,436,000 | |
Tax deductible goodwill | 61,100,000 | 61,100,000 | |
Impairments of goodwill | 0 | 0 | $ 0 |
Intangible asset amortization expense | 70,600,000 | 66,200,000 | 127,300,000 |
Intangible asset impairment | 0 | $ 0 | $ 0 |
Capitalized costs not yet been placed into service | $ 14,100,000 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Schedule of Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 27, 2021 | Jun. 28, 2020 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 1,432,436 | $ 1,397,471 |
Accumulated Amortization | (1,300,071) | (1,228,939) |
Net | 132,365 | 168,532 |
Customer relationships | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 630,303 | 630,137 |
Accumulated Amortization | (581,406) | (532,550) |
Net | 48,897 | 97,587 |
Existing technology | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 669,359 | 668,992 |
Accumulated Amortization | (659,898) | (654,382) |
Net | 9,461 | 14,610 |
Patents and other intangible assets | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross | 132,774 | 98,342 |
Accumulated Amortization | (58,767) | (42,007) |
Net | $ 74,007 | $ 56,335 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Estimated Future Amortization Expense of Intangible Assets (Details) $ in Thousands | Jun. 27, 2021USD ($) |
Fiscal Year | |
2022 | $ 70,190 |
2023 | 24,228 |
2024 | 13,647 |
2025 | 7,431 |
2026 | 2,034 |
Thereafter | 711 |
Net | $ 118,241 |
Accrued Expenses and Other Cu_3
Accrued Expenses and Other Current Liabilities (Details) - USD ($) $ in Thousands | Jun. 27, 2021 | Jun. 28, 2020 |
Payables and Accruals [Abstract] | ||
Accrued compensation | $ 552,925 | $ 402,401 |
Warranty reserves | 176,030 | 117,839 |
Income and other taxes payable | 348,206 | 215,652 |
Dividend payable | 185,431 | 167,129 |
Other | 456,891 | 369,634 |
Accrued expenses and other current liabilities | $ 1,719,483 | $ 1,272,655 |
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 ($)d | Jun. 27, 2021USD ($) | May 05, 2020 | Jun. 30, 2019USD ($) | Mar. 04, 2019 | Mar. 12, 2015 | Jun. 30, 2012 | |
Debt Instrument [Line Items] | |||||||
Total debt outstanding, at par | $ 5,000,000 | ||||||
Total debt outstanding, at par | $ 5,848,460 | 5,000,000 | |||||
Unamortized discount | (53,086) | (38,243) | |||||
Fair value adjustment - interest rate contracts | 8,405 | 6,621 | |||||
Unamortized bond issuance costs | (8,301) | (7,443) | |||||
Total debt outstanding, at carrying value | 5,795,478 | 4,960,935 | |||||
Current portion of long-term debt | 836,107 | 0 | |||||
Long-term debt | 4,959,371 | $ 4,960,935 | |||||
Senior notes | |||||||
Debt Instrument [Line Items] | |||||||
Total debt outstanding, at par | 2,000,000 | $ 2,500,000 | |||||
Senior notes | 2.80 Notes due 2021 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate percentage | 2.80% | ||||||
Total debt outstanding, at par | $ 800,000 | $ 0 | |||||
Effective Interest Rate | 2.95% | 0.00% | |||||
Senior notes | 3.80% Notes due 2025 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate percentage | 3.80% | 3.80% | |||||
Total debt outstanding, at par | $ 500,000 | $ 500,000 | |||||
Effective Interest Rate | 3.87% | 3.87% | |||||
Senior notes | 3.75% Notes due 2026 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate percentage | 3.75% | 3.75% | |||||
Total debt outstanding, at par | $ 750,000 | $ 750,000 | |||||
Effective Interest Rate | 3.86% | 3.86% | |||||
Senior notes | 4.00% Notes due 2029 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate percentage | 4.00% | 4.00% | |||||
Total debt outstanding, at par | $ 1,000,000 | $ 1,000,000 | |||||
Effective Interest Rate | 4.09% | 4.09% | |||||
Senior notes | 1.90% Notes due 2030 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate percentage | 1.90% | 1.90% | |||||
Total debt outstanding, at par | $ 750,000 | $ 750,000 | |||||
Effective Interest Rate | 2.01% | 2.01% | |||||
Senior notes | 4.875% Notes due 2049 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate percentage | 4.875% | 4.875% | |||||
Total debt outstanding, at par | $ 750,000 | $ 750,000 | |||||
Effective Interest Rate | 4.93% | 4.93% | |||||
Senior notes | 2.875% Notes due 2050 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate percentage | 2.875% | 2.875% | |||||
Total debt outstanding, at par | $ 750,000 | $ 750,000 | |||||
Effective Interest Rate | 2.93% | 2.93% | |||||
Senior notes | 3.125% Notes due 2060 | |||||||
Debt Instrument [Line Items] | |||||||
Interest rate percentage | 3.125% | 3.125% | |||||
Total debt outstanding, at par | $ 500,000 | $ 500,000 | |||||
Effective Interest Rate | 3.18% | 3.18% | |||||
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] | |||||||
Interest rate percentage | 2.625% | 2.625% | |||||
Total debt outstanding, at par | $ 48,460 | $ 0 | |||||
Effective Interest Rate | 4.28% | 0.00% |
Long Term Debt and Other Borr_4
Long Term Debt and Other Borrowings - Schedule of Contractual Cash Obligations (Details) $ in Thousands | Jun. 27, 2021USD ($) |
Payments Due by Fiscal Year: | |
2022 | $ 0 |
2023 | 0 |
2024 | 0 |
2025 | 500,000 |
2026 | 750,000 |
Thereafter | 3,750,000 |
Total | $ 5,000,000 |
Long Term Debt and Other Borr_5
Long Term Debt and Other Borrowings - Convertible Senior Notes Narrative (Details) - Convertible debt - 2041 Notes - USD ($) | Jun. 27, 2021 | Jun. 30, 2012 |
Debt Instrument [Line Items] | ||
Principal amount | $ 700,000,000 | |
Interest rate percentage | 2.625% | 2.625% |
Long Term Debt and Other Borr_6
Long Term Debt and Other Borrowings - Components of Convertible Notes (Details) - 2041 Notes $ in Thousands | 12 Months Ended |
Jun. 28, 2020USD ($) | |
Debt Instrument [Line Items] | |
Remaining amortization period (years) | 20 years 10 months 24 days |
Permanent Equity | |
Debt Instrument [Line Items] | |
Carrying amount of equity component, net of tax | $ 161,467 |
Temporary Equity | |
Debt Instrument [Line Items] | |
Carrying amount of equity component, net of tax | $ 10,995 |
Long Term Debt and Other Borr_7
Long Term Debt and Other Borrowings - Senior Notes Narrative (Details) - Senior notes - USD ($) | 12 Months Ended | ||||
Jun. 27, 2021 | May 05, 2020 | Mar. 04, 2019 | Jun. 07, 2016 | Mar. 12, 2015 | |
2030 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 750,000,000 | ||||
Interest rate percentage | 1.90% | 1.90% | |||
Percentage of principal amount of debt redeemed | 100.00% | ||||
Redemption percent | 101.00% | ||||
2050 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 750,000,000 | ||||
Interest rate percentage | 2.875% | 2.875% | |||
Percentage of principal amount of debt redeemed | 100.00% | ||||
Redemption percent | 101.00% | ||||
2060 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 500,000,000 | ||||
Interest rate percentage | 3.125% | 3.125% | |||
Percentage of principal amount of debt redeemed | 100.00% | ||||
Redemption percent | 101.00% | ||||
2026 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 750,000,000 | ||||
Interest rate percentage | 3.75% | 3.75% | |||
Percentage of principal amount of debt redeemed | 100.00% | ||||
Redemption percent | 101.00% | ||||
2029 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 1,000,000,000 | ||||
Interest rate percentage | 4.00% | 4.00% | |||
Percentage of principal amount of debt redeemed | 100.00% | ||||
Redemption percent | 101.00% | ||||
2049 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 750,000,000 | ||||
Interest rate percentage | 4.875% | 4.875% | |||
Percentage of principal amount of debt redeemed | 100.00% | ||||
Redemption percent | 101.00% | ||||
2021 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 800,000,000 | ||||
Interest rate percentage | 2.80% | ||||
2025 Notes | |||||
Debt Instrument [Line Items] | |||||
Principal amount | $ 500,000,000 | ||||
Interest rate percentage | 3.80% | 3.80% | |||
Percentage of principal amount of debt redeemed | 100.00% | ||||
Redemption percent | 101.00% |
Long Term Debt and Other Borr_8
Long Term Debt and Other Borrowings - Schedule of Additional Senior Notes Information (Details) $ in Thousands | 12 Months Ended |
Jun. 27, 2021USD ($) | |
2025 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 3 years 8 months 12 days |
2026 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 4 years 8 months 12 days |
2029 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 7 years 8 months 12 days |
2030 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 9 years |
2049 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 27 years 8 months 12 days |
2050 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 29 years |
2060 Notes | |
Debt Instrument [Line Items] | |
Remaining Amortization period | 39 years |
Level 2 | 2025 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 550,340 |
Level 2 | 2026 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | 838,890 |
Level 2 | 2029 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | 1,157,490 |
Level 2 | 2030 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | 748,193 |
Level 2 | 2049 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | 1,004,213 |
Level 2 | 2050 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | 746,910 |
Level 2 | 2060 Notes | |
Debt Instrument [Line Items] | |
Fair Value of Notes (Level 2) | $ 514,050 |
Long Term Debt and Other Borr_9
Long Term Debt and Other Borrowings - Revolving Credit Facility Narrative (Details) - Revolving credit facility - USD ($) | Jun. 17, 2021 | Jun. 27, 2021 | Jun. 16, 2021 |
Line of Credit Facility [Line Items] | |||
Increase in revolving credit facility | $ 250,000,000 | ||
Revolving unsecured credit facility | 1,500,000,000 | $ 1,250,000,000 | |
Additional increase in the facility, available expansion | 600,000,000 | ||
Revolving unsecured credit facility, available expansion | $ 2,100,000,000 | ||
Borrowings outstanding | $ 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% | ||
Minimum | One-month LIBOR | |||
Line of Credit Facility [Line Items] | |||
Debt instrument basis spread on variable rate (percent) | 0.00% | ||
Minimum | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Debt instrument basis spread on variable rate (percent) | 0.805% | ||
Maximum | One-month LIBOR | |||
Line of Credit Facility [Line Items] | |||
Debt instrument basis spread on variable rate (percent) | 0.30% | ||
Maximum | LIBOR | |||
Line of Credit Facility [Line Items] | |||
Debt instrument basis spread on variable rate (percent) | 1.30% |
Long Term Debt and Other Bor_10
Long Term Debt and Other Borrowings - Commercial Paper Program (Details) - Commercial paper - USD ($) | Jul. 31, 2021 | Jun. 27, 2021 | Nov. 13, 2017 |
Short-term Debt [Line Items] | |||
Revolving unsecured credit facility maximum borrowing capacity | $ 1,250,000,000 | ||
Commercial paper | $ 0 | ||
Subsequent event | |||
Short-term Debt [Line Items] | |||
Revolving unsecured credit facility maximum borrowing capacity | $ 1,500,000,000 |
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. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Debt Disclosure [Abstract] | |||
Contractual interest coupon | $ 197,367 | $ 169,483 | $ 100,712 |
Amortization of interest discount | 3,934 | 4,280 | 3,937 |
Amortization of issuance costs | 1,639 | 1,632 | 1,426 |
Effect of interest rate contracts, net | 2,070 | 1,037 | 4,086 |
Total interest cost recognized | $ 205,010 | $ 176,432 | $ 110,161 |
Leases - Schedule of Other Oper
Leases - Schedule of Other Operating Cost and Expense, by Component (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2021 | Jun. 28, 2020 | |
Financing lease cost: | ||
Amortization of right-of-use assets | $ 7,131 | $ 3,613 |
Interest on lease liabilities | 697 | 506 |
Total finance lease cost | 7,828 | 4,119 |
Operating lease cost | 51,519 | 46,101 |
Variable lease cost | $ 219,040 | $ 91,851 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flows (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2021 | Jun. 28, 2020 | |
Cash paid for amounts included in the measurement of lease liabilities: | ||
Operating cash flows paid for operating leases | $ 63,895 | $ 50,223 |
Financing cash flows paid for principal portion of finance leases | 5,952 | 3,539 |
Right-of-use assets obtained in exchange for lease obligations: | ||
Operating leases | 48,993 | 108,816 |
Finance leases | $ 29,497 | $ 3,019 |
Leases - Supplemental Balance S
Leases - Supplemental Balance Sheet (Details) - USD ($) $ in Thousands | Jun. 27, 2021 | Jun. 28, 2020 |
Operating leases | ||
Other assets | $ 173,784 | $ 174,583 |
Accrued expenses and other current liabilities | 45,310 | 49,480 |
Other long-term liabilities | 118,385 | 123,889 |
Total operating lease liabilities | $ 163,695 | $ 173,369 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:OtherAssets | us-gaap:OtherAssets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Accrued expenses and other current liabilities | Accrued expenses and other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
Finance Leases | ||
Property and Equipment, net | $ 44,054 | $ 18,409 |
Current portion of long-term debt and lease liabilities | 11,349 | 3,770 |
Long-term debt and lease liabilities, less current portion | 29,398 | 11,477 |
Total finance lease liabilities | $ 40,747 | $ 15,247 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization | us-gaap:PropertyPlantAndEquipmentAndFinanceLeaseRightOfUseAssetAfterAccumulatedDepreciationAndAmortization |
Finance Lease, Liability, Current, Statement of Financial Position [Extensible List] | Current portion of long-term debt and finance lease obligations | Current portion of long-term debt and finance lease obligations |
Finance Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Long-term debt and finance lease obligations, less current portion | Long-term debt and finance lease obligations, less current portion |
Leases - Weighted-Average Remai
Leases - Weighted-Average Remaining Lease Term and Discount Rate (Details) | Jun. 27, 2021 | Jun. 28, 2020 |
Operating leases | ||
Weighted-Average Remaining Lease Term | 5 years 6 months | 9 years |
Weighted-Average Discount Rate | 2.30% | 2.57% |
Finance leases | ||
Weighted-Average Remaining Lease Term | 5 years 3 months 18 days | 4 years 1 month 6 days |
Weighted-Average Discount Rate | 1.69% | 2.79% |
Leases - Operating and Finance
Leases - Operating and Finance Lease Liability (Details) - USD ($) $ in Thousands | Jun. 27, 2021 | Jun. 28, 2020 |
Operating Leases | ||
2022 | $ 48,487 | |
2023 | 32,774 | |
2024 | 22,756 | |
2025 | 17,803 | |
2026 | 12,702 | |
Thereafter | 38,628 | |
Total lease payments | 173,150 | |
Less imputed interest | (9,455) | |
Total | 163,695 | $ 173,369 |
Finance Leases | ||
2022 | 11,870 | |
2023 | 6,438 | |
2024 | 5,882 | |
2025 | 5,152 | |
2026 | 5,062 | |
Thereafter | 8,244 | |
Total lease payments | 42,648 | |
Less imputed interest | (1,901) | |
Total finance lease liabilities | $ 40,747 | $ 15,247 |
Leases - Narrative (Details)
Leases - Narrative (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 30, 2019 | Jun. 27, 2021 | Sep. 21, 2020 | Jun. 28, 2020 | |
Guarantor Obligations [Line Items] | ||||
Finance lease obligations | $ 40,747 | $ 15,247 | ||
Current portion of long-term debt and lease liabilities | 11,349 | 3,770 | ||
Restricted cash and investments | 252,487 | 253,911 | ||
Rental expense | $ 28,100 | |||
California Facility Leases | ||||
Guarantor Obligations [Line Items] | ||||
Additional term | 7 years | |||
Right of use assets | $ 31,400 | |||
Finance lease obligations | 29,800 | |||
Current portion of long-term debt and lease liabilities | $ 3,100 | |||
Residual value of operating lease, maximum | 298,400 | |||
Cash collateral | ||||
Guarantor Obligations [Line Items] | ||||
Restricted cash and investments | $ 250,000 | $ 250,000 |
Retirement and Deferred Compe_2
Retirement and Deferred Compensation Plans (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
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 | $ 26.9 | $ 23.6 | $ 24.1 |
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 | $ 297.3 | 220 | |
Assets correlated to the deferred compensation obligation | 313.9 | 235.1 | |
Defined benefit obligations | $ 40.1 | $ 41 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Details) - USD ($) $ in Thousands | Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 |
Loss Contingencies [Line Items] | |||
Liabilities related to uncertain tax benefits | $ 527,300 | ||
Minimum purchase penalty obligation | 818,186 | ||
Capital expenditures | 200,700 | ||
Warranty reserves | 191,758 | $ 129,197 | $ 127,932 |
Other long-term liabilities | |||
Loss Contingencies [Line Items] | |||
Warranty reserves | 15,700 | ||
Letters of credit | |||
Loss Contingencies [Line Items] | |||
Maximum potential amount of future payments | 74,300 | ||
Minimum Purchase Penalty Obligation | |||
Loss Contingencies [Line Items] | |||
Minimum purchase penalty obligation | $ 180,000 |
Commitments and Contingencies_2
Commitments and Contingencies - Purchase Commitments (Details) $ in Thousands | Jun. 27, 2021USD ($) |
Payments Due by Fiscal Year: | |
2022 | $ 660,201 |
2023 | 57,023 |
2024 | 57,023 |
2025 | 20,362 |
2026 | 20,362 |
Thereafter | 3,215 |
Total | $ 818,186 |
Commitments and Contingencies_3
Commitments and Contingencies - Schedule of Changes in Product Warranty Reserves (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 27, 2021 | Jun. 28, 2020 | |
Movement in Product Warranty Reserves | ||
Balance at beginning of period | $ 129,197 | $ 127,932 |
Warranties issued during the period | 229,026 | 151,508 |
Settlements made during the period | (172,759) | (131,177) |
Changes in liability for pre-existing warranties | 6,294 | (19,066) |
Balance at end of period | $ 191,758 | $ 129,197 |
Stock Repurchase Program - Addi
Stock Repurchase Program - Additional Information (Details) - USD ($) $ / shares in Units, shares in Thousands | Feb. 11, 2021 | May 31, 2021 | Nov. 30, 2020 | Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | Sep. 27, 2020 | Jun. 27, 2021 |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Net shares of settlements to cover tax withholding obligations (shares) | 290 | |||||||
Amount paid for shares under net share settlements | $ 166,400,000 | |||||||
Stock repurchase program | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Increase in authorized amount | $ 5,000,000,000 | |||||||
Purchase of treasury stock (shares) | 922 | 1,474 | 1,789 | 1,344 | ||||
Weighted-average share price (usd per share) | $ 619.76 | $ 519.30 | $ 404.98 | $ 343.73 | ||||
February 2021 ASR | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Repurchase amount | $ 500,000,000 | |||||||
Purchase of treasury stock (shares) | 655 | 213 | ||||||
Percent of prepayment amount | 75.00% | |||||||
Weighted-average share price (usd per share) | $ 575.74 |
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, 2020 | Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | Sep. 27, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total Cost of Repurchase | $ 2,717,627,000 | $ 1,369,702,000 | $ 3,780,524,000 | |||||
Stock repurchase program | ||||||||
Equity, Class of Treasury Stock [Line Items] | ||||||||
Total Number of Shares Repurchased | 922 | 1,474 | 1,789 | 1,344 | ||||
Total Cost of Repurchase | $ 439,625,000 | $ 925,099,000 | $ 724,485,000 | $ 461,998,000 | ||||
Average Price Paid Per Share (usd per share) | $ 619.76 | $ 519.30 | $ 404.98 | $ 343.73 | ||||
Amount Available Under Repurchase Program | $ 6,311,429,000 | $ 4,222,220,000 | $ 4,661,845,000 | $ 5,586,944,000 | $ 1,311,429,000 | $ 4,222,220,000 | $ 1,773,427,000 | |
Increase in authorized amount | $ 5,000,000,000 |
Comprehensive Income (Loss) - C
Comprehensive Income (Loss) - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | $ 5,172,494 | $ 4,673,865 | $ 6,501,851 |
Other comprehensive income (loss) before reclassifications | 32,765 | ||
(Gains) losses reclassified from accumulated other comprehensive income (loss) to net income | (2,682) | ||
Other comprehensive income (loss), net of tax | 30,083 | (30,181) | (6,581) |
Ending balance | 6,027,188 | 5,172,494 | 4,673,865 |
Accumulated Foreign Currency Translation Adjustment | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | (45,811) | ||
Other comprehensive income (loss) before reclassifications | 14,398 | ||
(Gains) losses reclassified from accumulated other comprehensive income (loss) to net income | 0 | ||
Other comprehensive income (loss), net of tax | 14,398 | ||
Ending balance | (31,413) | (45,811) | |
Accumulated Unrealized Gain or Loss on Cash Flow Hedges | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | (32,796) | ||
Other comprehensive income (loss) before reclassifications | 22,139 | ||
(Gains) losses reclassified from accumulated other comprehensive income (loss) to net income | (3,468) | ||
Other comprehensive income (loss), net of tax | 18,671 | ||
Ending balance | (14,125) | (32,796) | |
Accumulated Unrealized Holding Gain or Loss on Available-For- Sale Investments | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | 4,923 | ||
Other comprehensive income (loss) before reclassifications | (4,098) | ||
(Gains) losses reclassified from accumulated other comprehensive income (loss) to net income | 786 | ||
Other comprehensive income (loss), net of tax | (3,312) | ||
Ending balance | 1,611 | 4,923 | |
Accumulated Unrealized Components of Defined Benefit Plans | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | (20,527) | ||
Other comprehensive income (loss) before reclassifications | 326 | ||
(Gains) losses reclassified from accumulated other comprehensive income (loss) to net income | 0 | ||
Other comprehensive income (loss), net of tax | 326 | ||
Ending balance | (20,201) | (20,527) | |
Total | |||
Change in Accumulated Other Comprehensive Loss | |||
Beginning balance | (94,211) | (64,030) | (57,449) |
Other comprehensive income (loss), net of tax | 30,083 | (30,181) | |
Ending balance | $ (64,128) | $ (94,211) | $ (64,030) |
Segment, Geographic Informati_3
Segment, Geographic Information and Major Customers - Additional Information (Details) | 12 Months Ended | ||
Jun. 27, 2021segmentlocation | Jun. 28, 2020 | Jun. 30, 2019 | |
Segment Reporting [Abstract] | |||
Number of reportable business segment | segment | 1 | ||
Number of geographic regions the company operates | location | 7 | ||
Revenue benchmark | Customer concentration risk | Customer 1 | |||
Segment Reporting Information [Line Items] | |||
Concentration by percent | 25.00% | 24.00% | 15.00% |
Revenue benchmark | Customer concentration risk | Customer 2 | |||
Segment Reporting Information [Line Items] | |||
Concentration by percent | 12.00% | 14.00% | 14.00% |
Revenue benchmark | Customer concentration risk | Customer 3 | |||
Segment Reporting Information [Line Items] | |||
Concentration by percent | 10.00% | 10.00% | 14.00% |
Revenue benchmark | Customer concentration risk | Customer 4 | |||
Segment Reporting Information [Line Items] | |||
Concentration by percent | 10.00% | 14.00% |
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. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | $ 14,626,150 | $ 10,044,736 | $ 9,653,559 |
Long-lived assets | 1,477,263 | 1,246,082 | |
Long-lived assets | 1,259,425 | 1,053,090 | 1,059,077 |
China | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 5,137,886 | 3,083,916 | 2,161,440 |
Long-lived assets | 9,301 | 8,720 | |
Long-lived assets | 6,844 | ||
Korea | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 3,924,685 | 2,391,257 | 2,205,348 |
Long-lived assets | 62,502 | 49,943 | |
Long-lived assets | 28,200 | ||
Taiwan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 2,117,999 | 1,906,223 | 1,596,261 |
Long-lived assets | 47,279 | 11,555 | |
Long-lived assets | 6,759 | ||
Japan | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 1,363,907 | 954,743 | 1,969,869 |
Long-lived assets | 13,149 | 11,826 | |
Long-lived assets | 5,750 | ||
Southeast Asia | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 945,478 | 587,638 | 615,813 |
Long-lived assets | 129,881 | 31,027 | |
Long-lived assets | 5,542 | ||
United States | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 672,716 | 812,482 | 748,601 |
Long-lived assets | 1,137,490 | 1,052,714 | |
Long-lived assets | 933,054 | ||
Europe | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Revenue | 463,479 | 308,477 | 356,227 |
Long-lived assets | $ 77,661 | $ 80,297 | |
Long-lived assets | $ 72,928 |