Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Dec. 29, 2013 | Jan. 31, 2014 | |
Document Information [Line Items] | ' | ' |
Document Type | '10-Q | ' |
Amendment Flag | 'false | ' |
Document Period End Date | 29-Dec-13 | ' |
Document Fiscal Year Focus | '2014 | ' |
Document Fiscal Period Focus | 'Q2 | ' |
Trading Symbol | 'LRCX | ' |
Entity Registrant Name | 'LAM RESEARCH CORP | ' |
Entity Central Index Key | '0000707549 | ' |
Current Fiscal Year End Date | '--06-29 | ' |
Entity Filer Category | 'Large Accelerated Filer | ' |
Entity Common Stock, Shares Outstanding | ' | 162,312,544 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 29, 2013 | Jun. 30, 2013 | |
In Thousands, unless otherwise specified | |||
ASSETS | ' | ' | |
Cash and cash equivalents | $1,132,555 | $1,162,473 | [1] |
Short-term investments | 1,389,735 | 1,334,745 | [1] |
Accounts receivable, less allowance for doubtful accounts of $5,315 as of December 29, 2013 and $5,448 as of June 30, 2013 | 909,720 | 602,624 | [1] |
Inventories | 661,572 | 559,317 | [1] |
Deferred income taxes | 17,095 | 27,674 | [1] |
Prepaid expenses and other current assets | 138,359 | 106,996 | [1] |
Total current assets | 4,249,036 | 3,793,829 | [1] |
Property and equipment, net | 546,193 | 603,910 | [1] |
Restricted cash and investments | 166,395 | 166,536 | [1] |
Goodwill | 1,457,320 | 1,452,196 | [1] |
Intangible assets, net | 995,746 | 1,074,345 | [1] |
Other assets | 141,108 | 159,499 | [1] |
Total assets | 7,555,798 | 7,250,315 | [1] |
LIABILITIES AND STOCKHOLDERS' EQUITY | ' | ' | |
Trade accounts payable | 252,586 | 200,254 | [1] |
Accrued expenses and other current liabilities | 529,119 | 464,528 | [1] |
Deferred profit | 224,386 | 225,038 | [1] |
Current portion of long-term debt, convertible notes, and capital leases | 516,481 | 514,655 | [1] |
Total current liabilities | 1,522,572 | 1,404,475 | [1] |
Long-term debt, convertible notes, and capital leases | 803,276 | 789,256 | [1] |
Income taxes payable | 248,996 | 246,479 | [1] |
Other long-term liabilities | 129,710 | 134,313 | [1] |
Total liabilities | 2,704,554 | 2,574,523 | [1] |
Commitments and contingencies | ' | ' | [1] |
Senior convertible notes | 185,154 | 186,920 | [1] |
Stockholders' equity: | ' | ' | |
Preferred stock, at par value of $0.001 per share; authorized - 5,000 shares; none outstanding | ' | ' | [1] |
Common stock, at par value of $0.001 per share; authorized - 400,000 shares; issued and outstanding - 162,169 shares as of December 29, 2013 and 162,873 shares as of June 30, 2013 | 162 | 163 | [1] |
Additional paid-in capital | 5,153,414 | 5,084,544 | [1] |
Treasury stock, at cost; 91,764 shares as of December 29, 2013 and 89,205 shares as of June 30, 2013 | -3,679,151 | -3,539,830 | [1] |
Accumulated other comprehensive loss | -15,521 | -28,693 | [1] |
Retained earnings | 3,207,186 | 2,972,688 | [1] |
Total stockholders' equity | 4,666,090 | 4,488,872 | [1] |
Total liabilities and stockholders' equity | $7,555,798 | $7,250,315 | [1] |
[1] | Derived from audited financial statements |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Dec. 29, 2013 | Jun. 30, 2013 | |
In Thousands, except Per Share data, unless otherwise specified | |||
Accounts receivable, allowance for doubtful accounts | $5,315 | $5,448 | [1] |
Preferred stock, par value | $0.00 | $0.00 | [1] |
Preferred stock, shares authorized | 5,000 | 5,000 | [1] |
Preferred stock, shares outstanding | ' | ' | [1] |
Common stock, par value | $0.00 | $0.00 | [1] |
Common stock, shares authorized | 400,000 | 400,000 | [1] |
Common stock, shares issued | 162,169 | 162,873 | [1] |
Common stock, shares outstanding | 162,169 | 162,873 | [1] |
Treasury stock, shares | 91,764 | 89,205 | [1] |
[1] | Derived from audited financial statements |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 23, 2012 | Dec. 29, 2013 | Dec. 23, 2012 |
Revenue | $1,116,061 | $860,886 | $2,131,120 | $1,767,774 |
Cost of goods sold | 628,272 | 545,472 | 1,211,473 | 1,118,474 |
Gross margin | 487,789 | 315,414 | 919,647 | 649,300 |
Research and development | 174,477 | 165,951 | 345,044 | 329,262 |
Selling, general and administrative | 148,838 | 145,421 | 304,721 | 299,284 |
Total operating expenses | 323,315 | 311,372 | 649,765 | 628,546 |
Operating income | 164,474 | 4,042 | 269,882 | 20,754 |
Other expense, net | -3,837 | -13,390 | -18,099 | -23,328 |
Income (loss) before income taxes | 160,637 | -9,348 | 251,783 | -2,574 |
Income tax expense (benefit) | 11,645 | -15,756 | 17,285 | -11,750 |
Net income | $148,992 | $6,408 | $234,498 | $9,176 |
Net income per share: | ' | ' | ' | ' |
Basic | $0.92 | $0.04 | $1.44 | $0.05 |
Diluted | $0.87 | $0.04 | $1.37 | $0.05 |
Number of shares used in per share calculations: | ' | ' | ' | ' |
Basic | 162,305 | 170,699 | 162,603 | 175,314 |
Diluted | 171,757 | 173,027 | 171,592 | 177,490 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 23, 2012 | Dec. 29, 2013 | Dec. 23, 2012 |
Net income | $148,992 | $6,408 | $234,498 | $9,176 |
Other comprehensive income, net of tax: | ' | ' | ' | ' |
Foreign currency translation adjustment | 6,284 | 8,969 | 9,843 | 4,844 |
Cash flow hedges: | ' | ' | ' | ' |
Net unrealized gains during the period | 4,328 | 2,347 | 8,835 | 1,628 |
Net losses (gains) reclassified into earnings | -3,017 | 363 | -6,819 | 2,289 |
Net change | 1,311 | 2,710 | 2,016 | 3,917 |
Available-for-sale investments: | ' | ' | ' | ' |
Net unrealized gains (losses) during the period | 386 | -1,497 | 1,073 | 1,192 |
Net gains reclassified into earnings | -218 | -923 | -145 | -942 |
Net change | 168 | -2,420 | 928 | 250 |
Defined benefit plan, net change in unrealized component | 71 | 164 | 385 | 323 |
Net current-period other comprehensive income | 7,834 | 9,423 | 13,172 | 9,334 |
Comprehensive income | $156,826 | $15,831 | $247,670 | $18,510 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 23, 2012 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | ' | ' | |
Net income | $234,498 | $9,176 | |
Adjustments to reconcile net income to net cash provided by operating activities: | ' | ' | |
Depreciation and amortization | 147,883 | 153,204 | |
Deferred income taxes | 12,457 | -19,337 | |
Impairment of long-lived asset | 7,632 | ' | |
Equity-based compensation expense | 46,281 | 48,441 | |
Amortization of convertible note discount | 16,339 | 15,595 | |
Other, net | 1,687 | 25,744 | |
Changes in operating assets and liabilities | -285,829 | 209,665 | |
Net cash provided by operating activities | 180,948 | 442,488 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | ' | ' | |
Capital expenditures | -62,101 | -82,889 | |
Cash paid for business acquisition | -18,388 | -8,716 | |
Purchases of available-for-sale securities | -459,290 | -628,074 | |
Sales and maturities of available-for-sale securities | 413,103 | 588,186 | |
Repayments of notes receivable | 10,000 | ' | |
Proceeds from sale of assets | 21,635 | 660 | |
Transfer of restricted cash and investments | 150 | 179 | |
Net cash used for investing activities | -94,891 | -130,654 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | ' | ' | |
Principal payments on long-term debt and capital lease obligations | -807 | -780 | |
Treasury stock purchases | -152,195 | -710,089 | |
Reissuances of treasury stock related to employee stock purchase plan | 15,119 | 9,925 | |
Proceeds from issuance of common stock | 21,023 | 7,534 | |
Net cash used for financing activities | -116,860 | -693,410 | |
Effect of exchange rate changes on cash | 885 | 7,013 | |
Net decrease in cash and cash equivalents | -29,918 | -374,563 | |
Cash and cash equivalents at beginning of period | 1,162,473 | [1] | 1,564,752 |
Cash and cash equivalents at end of period | $1,132,555 | $1,190,189 | |
[1] | Derived from audited financial statements |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended |
Dec. 29, 2013 | |
Basis of Presentation | ' |
NOTE 1 — BASIS OF PRESENTATION | |
The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with U.S. generally accepted accounting principles (“GAAP”) for interim financial information and the instructions to Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting only of normal recurring adjustments) considered necessary for a fair presentation have been included. The accompanying unaudited Condensed Consolidated Financial Statements should be read in conjunction with the audited Consolidated Financial Statements of Lam Research Corporation (“Lam Research” or the “Company”) for the fiscal year ended June 30, 2013, which are included in the Annual Report on Form 10-K as of and for the year ended June 30, 2013 (the “2013 Form 10-K”). The Company’s Forms 10-K, Forms 10-Q and Forms 8-K are available online at the Securities and Exchange Commission website on the Internet. The address of that site is www.sec.gov. The Company also posts its Forms 10-K, Forms 10-Q and Forms 8-K on its corporate website at http://investor.lamresearch.com. | |
The consolidated financial statements include the accounts of Lam Research and its wholly owned subsidiaries. All intercompany accounts and transactions have been eliminated in consolidation. The Company’s reporting period is a 52/53-week fiscal year. The Company’s current fiscal year (the “2014 fiscal year”) will end June 29, 2014 and includes 52 weeks. The quarters ended December 29, 2013 (the “December 2013 quarter”) and December 23, 2012 (the “December 2012 quarter”) both included 13 weeks. |
Recent_Accounting_Pronouncemen
Recent Accounting Pronouncements | 6 Months Ended |
Dec. 29, 2013 | |
Recent Accounting Pronouncements | ' |
NOTE 2 — RECENT ACCOUNTING PRONOUNCEMENTS | |
In July 2013, the FASB released Accounting Standards Update 2013-11, “Presentation of an Unrecognized Tax Benefit When a Net Operating Loss Carryforward, a Similar Tax Loss, or a Tax Credit Carryforward Exists.” The new standard requires that an unrecognized tax benefit should be presented as a reduction of a deferred tax asset for a net operating loss carryforward or other tax credit carryforward when settlement in this manner is available under the tax law. We are required to adopt this standard starting fiscal year 2015 and are currently in the process of determining the impact, if any, on our financial position. |
EquityBased_Compensation_Plans
Equity-Based Compensation Plans | 6 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Equity-Based Compensation Plans | ' | ||||||||||||||||
NOTE 3 — 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 (“RSUs”), of Lam Research common stock (“Common Stock”). An option is a right to purchase the Company’s stock at a set price. An RSU award is an agreement to issue shares of the Company’s stock at the time of vesting. The Company’s options and RSU awards typically vest over a period of three years or less, although awards assumed in connection with the acquisition of Novellus Systems, Inc. (“Novellus”), have vesting terms up to four years. The Company also has an employee stock purchase plan that allows employees to purchase its Common Stock at a discount through payroll deductions. | |||||||||||||||||
The Company recognized the following equity-based compensation expense and related income tax benefit in the Condensed Consolidated Statements of Operations: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 29, | December 23, | December 29, | December 23, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in millions) | |||||||||||||||||
Equity-based compensation expense | $ | 23 | $ | 24 | $ | 46.3 | $ | 48.4 | |||||||||
Income tax benefit related to equity-based compensation expense | $ | 3.7 | $ | 3.3 | $ | 7.6 | $ | 9 | |||||||||
The estimated fair value of the Company’s stock-based awards, less expected forfeitures, is amortized over the awards’ vesting term on a straight-line basis. | |||||||||||||||||
Stock Options and RSUs | |||||||||||||||||
The Lam Research Corporation 2007 Stock Incentive Plan and 2011 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. As of December 29, 2013, there was a total of 5,545,356 shares reserved to cover options and RSUs issued and outstanding under the Plans. As of December 29, 2013, there were an additional 13,247,547 shares reserved and available for future equity-based awards under the Plans. | |||||||||||||||||
A summary of stock option activity under the Plans as of December 29, 2013 and changes during the six months then ended is presented below: | |||||||||||||||||
Options | Shares | Weighted- | Weighted-Average | Aggregate Intrinsic | |||||||||||||
(in thousands) | Average | Remaining | Value as of | ||||||||||||||
Exercise Price | Contractual Term | December 29, 2013 | |||||||||||||||
(years) | (in thousands) | ||||||||||||||||
Outstanding at June 30, 2013 | 2,571 | $ | 26.87 | 4.48 | |||||||||||||
Exercised | (842 | ) | $ | 24.98 | |||||||||||||
Forfeited or expired | (1 | ) | $ | 29.71 | |||||||||||||
Outstanding at December 29, 2013 | 1,728 | $ | 27.79 | 4.88 | $ | 45,607 | |||||||||||
Exercisable at December 29, 2013 | 1,270 | $ | 24.17 | 4.3 | $ | 38,118 | |||||||||||
The fair value of the Company’s stock options was estimated using a Black-Scholes option valuation model. The total intrinsic value of options exercised during the three months ended December 29, 2013 and December 23, 2012 was $8.1 million and $4.1 million, respectively. The total intrinsic value of options exercised during the six months ended December 29, 2013 and December 23, 2012 was $22.2 million and $4.7 million, respectively. As of December 29, 2013, there was $4.2 million of total unrecognized compensation cost related to unvested stock options granted and outstanding; that cost is expected to be recognized over a weighted-average remaining vesting period of 1.1 years. | |||||||||||||||||
A summary of the Company’s RSUs as of December 29, 2013 and changes during the six months then ended is presented below: | |||||||||||||||||
Unvested Restricted Stock Units | Shares | Average Grant- | |||||||||||||||
(in thousands) | Date Fair Value | ||||||||||||||||
Unvested at June 30, 2013 | 4,842 | $ | 39.32 | ||||||||||||||
Granted | 127 | $ | 51.97 | ||||||||||||||
Vested | (1,014 | ) | $ | 39.45 | |||||||||||||
Forfeited | (138 | ) | $ | 39.49 | |||||||||||||
Unvested at December 29, 2013 | 3,817 | $ | 39.7 | ||||||||||||||
The fair value of the Company’s RSUs was calculated based upon the fair market value of the Common Stock at the date of grant. As of December 29, 2013, there was $90.4 million of total unrecognized compensation expense related to unvested RSUs granted; that expense is expected to be recognized over a weighted-average remaining period of 1.5 years. | |||||||||||||||||
ESPP | |||||||||||||||||
The 1999 Employee Stock Purchase Plan, as amended and restated (the “1999 ESPP”), allows employees to designate a portion of their base compensation to be withheld through payroll deductions and used to purchase the Company’s Common Stock at a purchase price per share equal to 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. Each offering period generally lasts up to 12 months and includes up to three interim purchase dates. As of December 29, 2013, there was a total of 9,073,882 shares available for issuance under the 1999 ESPP. | |||||||||||||||||
Purchase rights under the 1999 ESPP were valued using the Black-Scholes option valuation model assuming no expected dividends and the following weighted-average assumptions for the six months ended December 29, 2013: | |||||||||||||||||
Six Months Ended | |||||||||||||||||
December 29, | |||||||||||||||||
2013 | |||||||||||||||||
Expected term (years) | 0.66 | ||||||||||||||||
Expected stock price volatility | 31.43 | % | |||||||||||||||
Risk-free interest rate | 0.11 | % | |||||||||||||||
As of December 29, 2013, there was $8.6 million of unrecognized compensation expense related to the 1999 ESPP, which is expected to be recognized over a remaining period of approximately 8 months. |
Financial_Instruments
Financial Instruments | 6 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||||||||||||||||||
Financial Instruments | ' | ||||||||||||||||||||||||||||||||
NOTE 4 — FINANCIAL INSTRUMENTS | |||||||||||||||||||||||||||||||||
The Company maintains an investment portfolio of various holdings, types, and maturities. The Company’s mutual funds, which are related to the Company’s obligations under the deferred compensation plan, are classified as trading securities. Investments classified as trading securities are recorded at fair value based upon quoted market prices. Differences between the cost and fair value of trading securities are recognized as other income (expense) in the Condensed Consolidated Statements of Operations. All of the Company’s other short-term investments are classified as available-for-sale and consequently are recorded in the Consolidated Balance Sheets at fair value with unrealized gains or losses reported as a separate component of accumulated other comprehensive income (loss), net of tax. | |||||||||||||||||||||||||||||||||
Fair Value | |||||||||||||||||||||||||||||||||
The Company defines fair value as the price that would be received from selling an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. When determining the fair value measurements for assets and liabilities required or permitted to be recorded at fair value, the Company considers the principal or most advantageous market in which it would transact, and it considers assumptions that market participants would use when pricing the asset or liability. | |||||||||||||||||||||||||||||||||
A fair value hierarchy has been established that prioritizes the inputs to valuation techniques used to measure fair value. The level of an asset or liability in the hierarchy is based on the lowest level of input that is significant to the fair value measurement. Assets and liabilities carried at fair value are classified and disclosed in one of the following three categories: | |||||||||||||||||||||||||||||||||
Level 1: Valuations based on quoted prices in active markets for identical assets or liabilities with sufficient volume and frequency of transactions. | |||||||||||||||||||||||||||||||||
Level 2: Valuations based on observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active, or model-derived valuations techniques for which all significant inputs are observable in the market or can be corroborated by observable market data, for substantially the full term of the assets or liabilities. | |||||||||||||||||||||||||||||||||
Level 3: Valuations based on unobservable inputs to the valuation methodology that are significant to the measurement of fair value of assets or liabilities and based on non-binding, broker-provided price quotes and may not have been corroborated by observable market data. | |||||||||||||||||||||||||||||||||
The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at December 29, 2013: | |||||||||||||||||||||||||||||||||
Fair Value Measurement at December 29, 2013 | |||||||||||||||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Short-Term Investments | |||||||||||||||||||||||||||||||||
Money Market Funds | $ | 730,194 | $ | 730,194 | $ | — | $ | — | |||||||||||||||||||||||||
Municipal Notes and Bonds | 252,261 | — | 252,261 | — | |||||||||||||||||||||||||||||
US Treasury and Agencies | 175,673 | 175,673 | — | — | |||||||||||||||||||||||||||||
Government-Sponsored Enterprises | 38,399 | — | 38,399 | — | |||||||||||||||||||||||||||||
Foreign Government Bonds | 29,708 | — | 29,708 | — | |||||||||||||||||||||||||||||
Corporate Notes and Bonds | 928,123 | 164,885 | 763,238 | — | |||||||||||||||||||||||||||||
Mortgage Backed Securities - Residential | 26,941 | — | 26,941 | — | |||||||||||||||||||||||||||||
Mortgage Backed Securities - Commercial | 103,515 | — | 103,515 | — | |||||||||||||||||||||||||||||
Total Short-Term Investments | $ | 2,284,814 | $ | 1,070,752 | $ | 1,214,062 | $ | — | |||||||||||||||||||||||||
Mutual Funds | 22,324 | 22,324 | — | — | |||||||||||||||||||||||||||||
Derivative Assets | 5,618 | — | 5,618 | — | |||||||||||||||||||||||||||||
Total Assets | $ | 2,312,756 | $ | 1,093,076 | $ | 1,219,680 | $ | — | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Derivative Liabilities | $ | 293 | $ | — | $ | 244 | $ | 49 | |||||||||||||||||||||||||
The amounts in the table above are reported in the Consolidated Balance Sheet as of December 29, 2013 as follows: | |||||||||||||||||||||||||||||||||
Reported Within: | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Cash Equivalents | $ | 730,194 | $ | 730,194 | $ | — | $ | — | |||||||||||||||||||||||||
Short-Term Investments | 1,389,735 | 175,673 | 1,214,062 | — | |||||||||||||||||||||||||||||
Restricted Cash and Investments | 164,885 | 164,885 | — | — | |||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets | 5,618 | — | 5,618 | — | |||||||||||||||||||||||||||||
Other Assets | 22,324 | 22,324 | — | — | |||||||||||||||||||||||||||||
Total Assets | $ | 2,312,756 | $ | 1,093,076 | $ | 1,219,680 | $ | — | |||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | $ | 244 | $ | — | $ | 244 | $ | — | |||||||||||||||||||||||||
Other Non-current Liabilities | 49 | — | — | 49 | |||||||||||||||||||||||||||||
Total Liabilities | $ | 293 | $ | — | $ | 244 | $ | 49 | |||||||||||||||||||||||||
The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at June 30, 2013: | |||||||||||||||||||||||||||||||||
Fair Value Measurement at June 30, 2013 | |||||||||||||||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Short-Term Investments | |||||||||||||||||||||||||||||||||
Money Market Funds | $ | 725,311 | $ | 725,311 | $ | — | $ | — | |||||||||||||||||||||||||
Municipal Notes and Bonds | 268,746 | — | 268,746 | — | |||||||||||||||||||||||||||||
US Treasury and Agencies | 155,293 | 155,293 | — | — | |||||||||||||||||||||||||||||
Government-Sponsored Enterprises | 54,805 | — | 54,805 | — | |||||||||||||||||||||||||||||
Foreign Government Bond | 24,972 | — | 24,972 | — | |||||||||||||||||||||||||||||
Corporate Notes and Bonds | 860,492 | 164,885 | 695,607 | — | |||||||||||||||||||||||||||||
Mortgage Backed Securities - Residential | 27,365 | — | 27,365 | — | |||||||||||||||||||||||||||||
Mortgage Backed Securities - Commercial | 107,958 | — | 107,958 | — | |||||||||||||||||||||||||||||
Total Short-Term Investments | $ | 2,224,942 | $ | 1,045,489 | $ | 1,179,453 | $ | — | |||||||||||||||||||||||||
Equities | 7,096 | 7,096 | — | — | |||||||||||||||||||||||||||||
Mutual Funds | 18,216 | 18,216 | — | — | |||||||||||||||||||||||||||||
Derivative Assets | 4,929 | — | 4,929 | — | |||||||||||||||||||||||||||||
Total Assets | $ | 2,255,183 | $ | 1,070,801 | $ | 1,184,382 | $ | — | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Derivative Liabilities | $ | 1,815 | $ | — | $ | 1,620 | $ | 195 | |||||||||||||||||||||||||
The amounts in the table above are reported in the Consolidated Balance Sheet as of June 30, 2013 as follows: | |||||||||||||||||||||||||||||||||
Reported Within: | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Cash Equivalents | $ | 725,311 | $ | 725,311 | $ | — | $ | — | |||||||||||||||||||||||||
Short-Term Investments | 1,334,746 | 155,293 | 1,179,453 | — | |||||||||||||||||||||||||||||
Restricted Cash and Investments | 164,885 | 164,885 | — | — | |||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets | 4,929 | — | 4,929 | — | |||||||||||||||||||||||||||||
Other Assets | 25,312 | 25,312 | — | — | |||||||||||||||||||||||||||||
Total Assets | $ | 2,255,183 | $ | 1,070,801 | $ | 1,184,382 | $ | — | |||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | $ | 1,620 | $ | — | $ | 1,620 | $ | — | |||||||||||||||||||||||||
Other Non-current Liabilities | 195 | — | — | 195 | |||||||||||||||||||||||||||||
Total Liabilities | $ | 1,815 | $ | — | $ | 1,620 | $ | 195 | |||||||||||||||||||||||||
The Company’s primary financial instruments include its cash, cash equivalents, short-term investments, restricted cash and investments, long-term investments, accounts receivable, accounts payable, long-term debt and capital leases, and foreign currency related derivatives. The estimated fair value of cash, accounts receivable and accounts payable approximates their carrying value due to the short period of time to their maturities. The estimated fair values of capital lease obligations approximate their carrying value as the substantial majority of these obligations have interest rates that adjust to market rates on a periodic basis. Refer to Note 13 for additional information regarding the fair value of the Company’s convertible notes. | |||||||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
The following tables summarize the Company’s investments (in thousands): | |||||||||||||||||||||||||||||||||
December 29, 2013 | June 30, 2013 | ||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||
Gain | (Loss) | Gain | (Loss) | ||||||||||||||||||||||||||||||
Cash | $ | 403,871 | $ | — | $ | — | $ | 403,871 | $ | 438,813 | $ | — | $ | — | $ | 438,813 | |||||||||||||||||
Fixed Income Money Market Funds | 730,194 | — | — | 730,194 | 725,311 | — | — | 725,311 | |||||||||||||||||||||||||
Municipal Notes and Bonds | 251,397 | 911 | (47 | ) | 252,261 | 268,390 | 805 | (449 | ) | 268,746 | |||||||||||||||||||||||
US Treasury and Agencies | 175,810 | 29 | (166 | ) | 175,673 | 155,648 | 18 | (373 | ) | 155,293 | |||||||||||||||||||||||
Government-Sponsored Enterprises | 38,363 | 53 | (17 | ) | 38,399 | 54,835 | 65 | (95 | ) | 54,805 | |||||||||||||||||||||||
Foreign Government Bonds | 29,712 | 59 | (63 | ) | 29,708 | 24,950 | 47 | (25 | ) | 24,972 | |||||||||||||||||||||||
Corporate Notes and Bonds | 926,954 | 1,843 | (674 | ) | 928,123 | 861,109 | 1,328 | (1,945 | ) | 860,492 | |||||||||||||||||||||||
Mortgage Backed Securities - Residential | 27,240 | 22 | (321 | ) | 26,941 | 27,618 | 29 | (282 | ) | 27,365 | |||||||||||||||||||||||
Mortgage Backed Securities - Commercial | 103,828 | 242 | (555 | ) | 103,515 | 108,204 | 426 | (672 | ) | 107,958 | |||||||||||||||||||||||
Total Cash and Short-Term Investments | $ | 2,687,369 | $ | 3,159 | $ | (1,843 | ) | $ | 2,688,685 | $ | 2,664,878 | $ | 2,718 | $ | (3,841 | ) | $ | 2,663,755 | |||||||||||||||
Publicly Traded Equity Security | $ | — | $ | — | $ | — | $ | — | $ | 5,610 | $ | 1,486 | $ | — | $ | 7,096 | |||||||||||||||||
Private Equity Security | — | — | — | — | 5,000 | — | — | 5,000 | |||||||||||||||||||||||||
Mutual Funds | 19,575 | 2,749 | — | 22,324 | 16,611 | 1,619 | (14 | ) | 18,216 | ||||||||||||||||||||||||
Total Financial Instruments | $ | 2,706,944 | $ | 5,908 | $ | (1,843 | ) | $ | 2,711,009 | $ | 2,692,099 | $ | 5,823 | $ | (3,855 | ) | $ | 2,694,067 | |||||||||||||||
Reported Within | |||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 1,132,555 | $ | — | $ | — | $ | 1,132,555 | $ | 1,162,473 | $ | — | $ | — | $ | 1,162,473 | |||||||||||||||||
Short-Term Investments | 1,388,419 | 3,159 | (1,843 | ) | 1,389,735 | 1,335,868 | 2,718 | (3,841 | ) | 1,334,745 | |||||||||||||||||||||||
Restricted Cash and Investments | 166,395 | — | — | 166,395 | 166,536 | — | — | 166,536 | |||||||||||||||||||||||||
Other assets | 19,575 | 2,749 | — | 22,324 | 27,222 | 3,105 | (14 | ) | 30,313 | ||||||||||||||||||||||||
Total | $ | 2,706,944 | $ | 5,908 | $ | (1,843 | ) | $ | 2,711,009 | $ | 2,692,099 | $ | 5,823 | $ | (3,855 | ) | $ | 2,694,067 | |||||||||||||||
The Company accounts for its investment portfolio at fair value. Realized gains (losses) for investment sales are specifically identified. Management assesses the fair value of investments in debt securities that are not actively traded through consideration of interest rates and their impact on the present value of the cash flows to be received from the investments. The Company also considers whether changes in the credit ratings of the issuer could impact the assessment of fair value. The Company did not recognize any losses on investments due to other-than-temporary impairments during the three and six months ended December 29, 2013 or December 23, 2012. Additionally, gross realized gains and gross realized (losses) from sales of investments were approximately $0.2 million and $(0.5) million, respectively, in the three months ended December 29, 2013 and $0.9 million and $(0.3) million, respectively, in the three months ended December 23, 2012. Gross realized gains and gross realized (losses) from sales of investments were approximately $0.4 million and $(1.0) million, respectively, in the six months ended December 29, 2013 and $1.1 million and $(0.7) million, respectively, in the six months ended December 23, 2012. | |||||||||||||||||||||||||||||||||
The following is an analysis of the Company’s fixed income securities in unrealized loss positions (in thousands): | |||||||||||||||||||||||||||||||||
December 29, 2013 | |||||||||||||||||||||||||||||||||
Unrealized Losses | Unrealized Losses | Total | |||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | ||||||||||||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||||||
Short-Term Investments | |||||||||||||||||||||||||||||||||
Municipal Notes and Bonds | $ | 22,814 | $ | (47 | ) | $ | — | $ | — | $ | 22,814 | $ | (47 | ) | |||||||||||||||||||
US Treasury and Agencies | 127,143 | (166 | ) | — | — | 127,143 | (166 | ) | |||||||||||||||||||||||||
Government-Sponsored Enterprises | 11,466 | (17 | ) | — | — | 11,466 | (17 | ) | |||||||||||||||||||||||||
Foreign Government Bonds | 16,906 | (63 | ) | — | — | 16,906 | (63 | ) | |||||||||||||||||||||||||
Corporate Notes and Bonds | 260,575 | (643 | ) | 4,709 | (31 | ) | 265,284 | (674 | ) | ||||||||||||||||||||||||
Mortgage Backed Securities - Residential | 21,186 | (296 | ) | 2,050 | (25 | ) | 23,236 | (321 | ) | ||||||||||||||||||||||||
Mortgage Backed Securities - Commercial | 66,447 | (436 | ) | 5,756 | (119 | ) | 72,203 | (555 | ) | ||||||||||||||||||||||||
Total Short-Term Investments | $ | 526,537 | $ | (1,668 | ) | $ | 12,515 | $ | (175 | ) | $ | 539,052 | $ | (1,843 | ) | ||||||||||||||||||
The amortized cost and fair value of cash equivalents, short-term investments, and restricted cash and investments with contractual maturities are as follows as of December 29, 2013: | |||||||||||||||||||||||||||||||||
Cost | Estimated Fair | ||||||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,140,750 | $ | 1,141,168 | |||||||||||||||||||||||||||||
Due after one year through five years | 986,845 | 988,339 | |||||||||||||||||||||||||||||||
Due in more than five years | 155,903 | 155,307 | |||||||||||||||||||||||||||||||
$ | 2,283,498 | $ | 2,284,814 | ||||||||||||||||||||||||||||||
Management has the ability, if necessary, to liquidate its cash equivalents and short-term investments in order to meet the Company’s liquidity needs in the next 12 months. Accordingly, those investments with contractual maturities greater than one year from the date of purchase nonetheless are classified as short-term on the accompanying Condensed 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 with financial institutions with the primary objective of reducing volatility of earnings and cash flows related to foreign currency exchange rate fluctuations. The counterparties to these forward contracts are large global financial institutions that the Company believes are creditworthy, and therefore, we do not consider the risk of counterparty nonperformance to be material. | |||||||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||||||
The Company’s financial position is routinely subjected to market risk associated with foreign currency exchange rate fluctuations on non-U.S. dollar transactions or cash flows, primarily from Japanese yen-denominated revenues and euro-denominated expenses. The Company’s policy is to mitigate the foreign exchange risk arising from the fluctuations in the value of these non-U.S. dollar denominated transactions or cash flows through a foreign currency cash flow hedging program, using forward contracts that generally expire within 12 months and no later than 24 months. These foreign currency forward contracts are designated as cash flow hedges and are carried on the Company’s balance sheet at fair value with the effective portion of the contracts’ gains or losses included in accumulated other comprehensive income (loss) and subsequently recognized in revenue/expense in the same period the hedged items are recognized. | |||||||||||||||||||||||||||||||||
At inception and at each quarter end, hedges are tested prospectively and retrospectively for effectiveness using regression analysis. Changes in the fair value of the forward contracts due to changes in time value are excluded from the assessment of effectiveness and are recognized in revenue or expense in the current period. The change in time value related to these contracts was not material for all reported periods. To qualify for hedge accounting, the hedge relationship must meet criteria relating both to 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 gains or losses during the three and six months ended December 29, 2013 or December 23, 2012 associated with ineffectiveness or forecasted transactions that failed to occur. | |||||||||||||||||||||||||||||||||
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, with the exception of excluded time value and hedge ineffectiveness recognized, the Company’s results of operations are not subject to fluctuation as a result of changes in the fair value of the derivative instruments. If hedges are not highly effective or if the Company does not believe that the underlying hedged forecasted transactions will occur, the Company may not be able to account for its derivative instruments as cash flow hedges. If this were to occur, future changes in the fair values of the Company’s derivative instruments would be recognized in earnings. Additionally, related amounts previously recorded in other comprehensive income would be reclassified to income immediately. At December 29, 2013, the Company had gains of $4.8 million accumulated in other comprehensive income, which it expects to reclassify from other comprehensive income into earnings over the next 12 months. | |||||||||||||||||||||||||||||||||
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 third party accounts receivables, accounts payables and intercompany receivables and payables. These forward contracts are not designated for hedge accounting treatment. Therefore, the change in fair value of these derivatives is recorded as a component of other income (expense) and offsets the change in fair value of the foreign currency denominated assets and liabilities, which are also recorded in other income (expense). | |||||||||||||||||||||||||||||||||
As of December 29, 2013, the Company had the following outstanding foreign currency forward contracts that were entered into under its cash flow and balance sheet hedge program: | |||||||||||||||||||||||||||||||||
Derivatives Designated as | Derivatives Not Designated as | ||||||||||||||||||||||||||||||||
Hedging Instruments: | Hedging Instruments: | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||||||||||||||||||
Buy Contracts | Sell Contracts | Buy Contracts | Sell Contracts | ||||||||||||||||||||||||||||||
Japanese Yen | $ | — | $ | 66,619 | $ | — | $ | 116,339 | |||||||||||||||||||||||||
Euro | 64,771 | — | — | 15,271 | |||||||||||||||||||||||||||||
Korean Won | — | — | 29,431 | — | |||||||||||||||||||||||||||||
Taiwan Dollar | — | — | 139,067 | — | |||||||||||||||||||||||||||||
$ | 64,771 | $ | 66,619 | $ | 168,498 | $ | 131,610 | ||||||||||||||||||||||||||
The fair value of derivative instruments in the Company’s Consolidated Balance Sheets as of December 29, 2013 and June 30, 2013 were as follows: | |||||||||||||||||||||||||||||||||
December 29, 2013 | June 30, 2013 | ||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | Fair Value of Derivative Instruments | ||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||||||||||||||||||
Location | Location | Location | Location | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expense and other assets | $ | 5,585 | Accrued liabilities | $ | — | Prepaid expense and other assets | $ | 4,858 | Accrued liabilities | $ | 1,577 | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expense and other assets | 33 | Accrued liabilities | 244 | Prepaid expense and other assets | 71 | Accrued liabilities | 43 | |||||||||||||||||||||||||
Total derivatives | $ | 5,618 | $ | 244 | $ | 4,929 | $ | 1,620 | |||||||||||||||||||||||||
Under the master netting agreements with the respective counterparties to the Company’s foreign exchange 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 in its balance sheet. As of December 29, 2013, the potential effect of netting the above foreign exchange contracts would be an offset to both assets and liabilities by $0.2 million, resulting in a net derivative asset of $5.4 million. As of June 30, 2013, the potential effect of netting the above foreign exchange contracts would be an offset to both assets and liabilities by $1.6 million, resulting in a net derivative asset of $3.3 million. The Company is not required to pledge, nor is the Company entitled to receive, cash collateral related to these derivative transactions. | |||||||||||||||||||||||||||||||||
The effect of derivative instruments designated as cash flow hedges on the Company’s Consolidated Statements of Operations was as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
December 29, 2013 | December 29, 2013 | ||||||||||||||||||||||||||||||||
Effective Portion | Ineffective | Effective Portion | Ineffective | ||||||||||||||||||||||||||||||
Portion and | Portion and | ||||||||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||||||
Excluded | Excluded | ||||||||||||||||||||||||||||||||
from | from | ||||||||||||||||||||||||||||||||
Effectiveness | Effectiveness | ||||||||||||||||||||||||||||||||
Testing | Testing | ||||||||||||||||||||||||||||||||
Location of Gain | Gain | Gain (Loss) | Gain (Loss) | Gain | Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||
(Loss) Recognized | (Loss) | Reclassified | Recognized | (Loss) | Reclassified | Recognized | |||||||||||||||||||||||||||
in or Reclassified | Recognized | from AOCI | in Income | Recognized | from AOCI | in Income | |||||||||||||||||||||||||||
into Income | in AOCI | into Income | in AOCI | into Income | |||||||||||||||||||||||||||||
Derivatives Designated as Hedging | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Instruments | |||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Revenue | $ | 3,226 | $ | 2,777 | $ | 85 | $ | 8,104 | $ | 6,159 | $ | 178 | ||||||||||||||||||||
Foreign Exchange Contracts | Cost of goods sold | 1,262 | 467 | (24 | ) | 1,410 | 1,118 | (56 | ) | ||||||||||||||||||||||||
Foreign Exchange Contracts | Selling, general, and administrative | 506 | 193 | (9 | ) | 554 | 510 | (24 | ) | ||||||||||||||||||||||||
Foreign Exchange Contracts | Other income (expense) | — | — | — | — | — | — | ||||||||||||||||||||||||||
$ | 4,994 | $ | 3,437 | $ | 52 | $ | 10,068 | $ | 7,787 | $ | 98 | ||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
December 23, 2012 | December 23, 2012 | ||||||||||||||||||||||||||||||||
Effective Portion | Ineffective | Effective Portion | Ineffective | ||||||||||||||||||||||||||||||
Portion and | Portion and | ||||||||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||||||
Excluded | Excluded | ||||||||||||||||||||||||||||||||
from | from | ||||||||||||||||||||||||||||||||
Effectiveness | Effectiveness | ||||||||||||||||||||||||||||||||
Testing | Testing | ||||||||||||||||||||||||||||||||
Location of Gain | Gain | Gain (Loss) | Gain (Loss) | Gain | Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||
(Loss) Recognized | (Loss) | Reclassified | Recognized | (Loss) | Reclassified | Recognized | |||||||||||||||||||||||||||
in or Reclassified | Recognized | from AOCI | in Income | Recognized | from AOCI | in Income | |||||||||||||||||||||||||||
into Income | in AOCI | into Income | in AOCI | into Income | |||||||||||||||||||||||||||||
Derivatives Designated as Hedging | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Instruments | |||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Revenue | $ | 1,432 | $ | (133 | ) | $ | 52 | $ | (1,294 | ) | $ | 724 | $ | 196 | ||||||||||||||||||
Foreign Exchange Contracts | Cost of goods sold | 644 | (239 | ) | (52 | ) | 1,895 | (2,263 | ) | (163 | ) | ||||||||||||||||||||||
Foreign Exchange Contracts | Selling, general, and administrative | 271 | 9 | (26 | ) | 1,027 | (750 | ) | (80 | ) | |||||||||||||||||||||||
Foreign Exchange Contracts | Other income (expense) | — | — | — | — | — | 8 | ||||||||||||||||||||||||||
$ | 2,347 | $ | (363 | ) | $ | (26 | ) | $ | 1,628 | $ | (2,289 | ) | $ | (39 | ) | ||||||||||||||||||
The effect of derivative instruments not designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations was as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
December 29, 2013 | December 23, 2012 | December 29, 2013 | December 23, 2012 | ||||||||||||||||||||||||||||||
Derivatives Not Designated as | Location of Gain | Gain Recognized | Loss Recognized | Gain Recognized | Loss Recognized | ||||||||||||||||||||||||||||
Hedging Instruments: | (Loss) Recognized in Income | in Income | in Income | in Income | in Income | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Other income (expense) | $ | 5,012 | $ | 5,667 | $ | 11,040 | $ | 286 | ||||||||||||||||||||||||
Concentrations of Credit Risk | |||||||||||||||||||||||||||||||||
Financial instruments that potentially subject the Company to concentrations of credit risk consist principally of cash and cash equivalents, short-term 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 or Moody’s Investor Services, respectively. 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 the foreign currency forward hedge contracts and on 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 statements and payment performance. In general, the Company does not require collateral on sales. |
Inventories
Inventories | 6 Months Ended | ||||||||
Dec. 29, 2013 | |||||||||
Inventories | ' | ||||||||
NOTE 5 — INVENTORIES | |||||||||
Inventories are stated at the lower of cost (first-in, first-out method) or market. Shipments to Japanese customers, to whom 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: | |||||||||
December 29, | June 30, | ||||||||
2013 | 2013 | ||||||||
(in thousands) | |||||||||
Raw materials | $ | 413,762 | $ | 312,484 | |||||
Work-in-process | 94,967 | 101,530 | |||||||
Finished goods | 152,843 | 145,303 | |||||||
$ | 661,572 | $ | 559,317 | ||||||
Property_and_Equipment_Net
Property and Equipment, Net | 6 Months Ended | ||||||||
Dec. 29, 2013 | |||||||||
Property and Equipment, Net | ' | ||||||||
NOTE 6 — PROPERTY AND EQUIPMENT, NET | |||||||||
Property and equipment, net, consists of the following: | |||||||||
December 29, | June 30, | ||||||||
2013 | 2013 | ||||||||
(in thousands) | |||||||||
Manufacturing, engineering and office equipment | $ | 561,623 | $ | 521,047 | |||||
Computer equipment and software | 125,220 | 120,144 | |||||||
Land | 56,528 | 65,360 | |||||||
Buildings | 205,407 | 249,126 | |||||||
Leasehold improvements | 80,501 | 76,225 | |||||||
Furniture and fixtures | 24,830 | 21,110 | |||||||
1,054,109 | 1,053,012 | ||||||||
Less: accumulated depreciation and amortization | (507,916 | ) | (449,102 | ) | |||||
$ | 546,193 | $ | 603,910 | ||||||
During the six months ended December 29, 2013, the Company sold or reclassified to assets held-for-sale property and equipment with a net book value of $69 million as a result of facility consolidation. These assets consisted primarily of buildings and land, resulting in the decreases to those asset categories in the table above. |
Goodwill_and_Intangible_Assets
Goodwill and Intangible Assets | 6 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Goodwill and Intangible Assets | ' | ||||||||||||||||
NOTE 7 — GOODWILL AND INTANGIBLE ASSETS | |||||||||||||||||
Goodwill | |||||||||||||||||
There was no significant change in the goodwill balance during the six months ended December 29, 2013. Of the $1.5 billion goodwill balance as of December 29, 2013, $61 million is tax deductible and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law. | |||||||||||||||||
Goodwill is assessed at least annually for impairment. The Company did not record impairments of goodwill during the three or six months ended December 29, 2013 or December 23, 2012. | |||||||||||||||||
Intangible Assets | |||||||||||||||||
The following table provides details of the Company’s intangible assets, including the impact of foreign currency translation adjustments, as of December 29, 2013 (in thousands, except years): | |||||||||||||||||
Gross | Accumulated | Net | Weighted-Average | ||||||||||||||
Amortization | Useful Life (years) | ||||||||||||||||
Customer relationships | $ | 624,902 | $ | (139,270 | ) | $ | 485,632 | 9.01 | |||||||||
Existing technology | 657,273 | (185,093 | ) | 472,180 | 6.96 | ||||||||||||
Patents | 32,053 | (23,219 | ) | 8,834 | 6.09 | ||||||||||||
Other intangible assets | 35,216 | (35,216 | ) | — | 4.1 | ||||||||||||
Intangible assets subject to amortization | 1,349,444 | (382,798 | ) | 966,646 | |||||||||||||
In process research and development | 20,000 | 20,000 | |||||||||||||||
Development rights | 9,100 | 9,100 | |||||||||||||||
Intangible assets not subject to amortization | 29,100 | 29,100 | |||||||||||||||
Total intangible assets | $ | 1,378,544 | $ | (382,798 | ) | $ | 995,746 | ||||||||||
The following table provides details of the Company’s intangible assets, including the impact of foreign currency translation adjustments, as of June 30, 2013 (in thousands, except years): | |||||||||||||||||
Gross | Accumulated | Net | Weighted-Average | ||||||||||||||
Amortization | Useful Life (years) | ||||||||||||||||
Customer relationships | $ | 624,686 | $ | (103,519 | ) | $ | 521,167 | 9.01 | |||||||||
Existing technology | 653,628 | (139,894 | ) | 513,734 | 6.97 | ||||||||||||
Patents | 32,053 | (22,036 | ) | 10,017 | 6.09 | ||||||||||||
Backlog | 10,000 | (10,000 | ) | — | 1 | ||||||||||||
Other intangible assets | 35,216 | (34,889 | ) | 327 | 4.1 | ||||||||||||
Intangible assets subject to amortization | 1,355,583 | (310,338 | ) | 1,045,245 | |||||||||||||
In process research and development | 20,000 | 20,000 | |||||||||||||||
Development rights | 9,100 | 9,100 | |||||||||||||||
Intangible assets not subject to amortization | 29,100 | 29,100 | |||||||||||||||
Total intangible assets | $ | 1,384,683 | $ | (310,338 | ) | $ | 1,074,345 | ||||||||||
The Company recognized $40.9 million and $44.7 million in intangible asset amortization expense during the three months ended December 29, 2013 and December 23, 2012, respectively. The Company recognized $82.5 million and $89.3 million in intangible asset amortization expense during the six months ended December 29, 2013 and December 23, 2012, respectively. | |||||||||||||||||
The estimated future amortization expense of purchased intangible assets as of December 29, 2013 is as follows (in thousands): | |||||||||||||||||
Fiscal Year | Amount | ||||||||||||||||
2014 (6 months) | $ | 80,250 | |||||||||||||||
2015 | 159,718 | ||||||||||||||||
2016 | 157,510 | ||||||||||||||||
2017 | 155,790 | ||||||||||||||||
2018 | 154,625 | ||||||||||||||||
Thereafter | 258,753 | ||||||||||||||||
$ | 966,646 | ||||||||||||||||
Accrued_Expenses_and_Other_Cur
Accrued Expenses and Other Current Liabilities | 6 Months Ended | ||||||||
Dec. 29, 2013 | |||||||||
Accrued Expenses and Other Current Liabilities | ' | ||||||||
NOTE 8 — ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | |||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||
December 29, | June 30, | ||||||||
2013 | 2013 | ||||||||
(in thousands) | |||||||||
Accrued compensation | $ | 308,628 | $ | 254,795 | |||||
Warranty reserves | 66,338 | 52,252 | |||||||
Income and other taxes payable | 38,716 | 39,420 | |||||||
Other | 115,437 | 118,061 | |||||||
$ | 529,119 | $ | 464,528 | ||||||
Other_Expense_Net
Other Expense, Net | 6 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Other Expense, Net | ' | ||||||||||||||||
NOTE 9 — OTHER EXPENSE, NET | |||||||||||||||||
The significant components of other expense, net, are as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 29, | December 23, | December 29, | December 23, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Interest income | $ | 2,828 | $ | 4,376 | $ | 5,551 | $ | 8,176 | |||||||||
Interest expense | (15,297 | ) | (14,975 | ) | (30,599 | ) | (30,119 | ) | |||||||||
Gains on deferred compensation plan related assets | 5,360 | 1,234 | 5,397 | 3,975 | |||||||||||||
Foreign exchange gains (losses) | 125 | (3,274 | ) | (97 | ) | (3,642 | ) | ||||||||||
Other, net | 3,147 | (751 | ) | 1,649 | (1,718 | ) | |||||||||||
$ | (3,837 | ) | $ | (13,390 | ) | $ | (18,099 | ) | $ | (23,328 | ) | ||||||
Income_Tax_Expense
Income Tax Expense | 6 Months Ended |
Dec. 29, 2013 | |
Income Tax Expense | ' |
NOTE 10 — INCOME TAX EXPENSE | |
The Company recorded an income tax expense of $11.6 million and $17.3 million for the three and six months ended December 29, 2013, respectively, which yielded an effective tax rate for the three and six months ended December 29, 2013 of approximately 7.2% and 6.9%, respectively. The difference between the U.S. federal statutory tax rate of 35% and the Company’s effective tax rate for the three and six months ended December 29, 2013 is primarily due to the geographic mix of income, the tax effect of non-deductible stock-based compensation, and the recognition of previously unrecognized tax benefits due to lapse of statutes of limitation. |
Net_Income_Per_Share
Net Income Per Share | 6 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Net Income Per Share | ' | ||||||||||||||||
NOTE 11 — NET INCOME PER SHARE | |||||||||||||||||
Basic net income per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted net income per share is computed using the treasury stock method, for dilutive stock options, RSUs, and convertible notes. Dilutive shares outstanding include only the effect of the 2041 Notes. The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 29, | December 23, | December 29, | December 23, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 148,992 | $ | 6,408 | $ | 234,498 | $ | 9,176 | |||||||||
Denominator: | |||||||||||||||||
Basic average shares outstanding | 162,305 | 170,699 | 162,603 | 175,314 | |||||||||||||
Effect of potential dilutive securities: | |||||||||||||||||
Employee stock plans | 2,847 | 2,328 | 2,869 | 2,176 | |||||||||||||
Convertible notes | 6,605 | — | 6,120 | — | |||||||||||||
Diluted average shares outstanding | 171,757 | 173,027 | 171,592 | 177,490 | |||||||||||||
Net income per share - basic | $ | 0.92 | $ | 0.04 | $ | 1.44 | $ | 0.05 | |||||||||
Net income per share - diluted | $ | 0.87 | $ | 0.04 | $ | 1.37 | $ | 0.05 | |||||||||
For purposes of computing diluted net income per share, weighted-average common shares do not include potentially dilutive securities that are anti-dilutive under the treasury stock method. The following potentially dilutive securities were excluded: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 29, | December 23, | December 29, | December 23, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Number of potential dilutive securities excluded | — | 1,543 | 296 | 1,551 | |||||||||||||
Diluted shares outstanding do not include any effect resulting from warrants, assumed conversion of the notes, or note hedges associated with the Company’s 2016 or 2018 Notes (as described in Note 13) as their impact would have been anti-dilutive. |
Accumulated_Other_Comprehensiv
Accumulated Other Comprehensive Loss | 6 Months Ended | ||||||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||||||
Accumulated Other Comprehensive Loss | ' | ||||||||||||||||||||
NOTE 12 — ACCUMULATED OTHER COMPREHENSIVE LOSS | |||||||||||||||||||||
The components of accumulated other comprehensive income (loss), net of tax at the end of the period, as well as the activity during the period, were as follows: | |||||||||||||||||||||
Accumulated foreign | Accumulated unrealized | Accumulated unrealized | Accumulated unrealized | Total | |||||||||||||||||
currency translation | holding gain (loss) on | holding gain (loss) on | components of defined | ||||||||||||||||||
adjustment | cash flow hedges | available-for-sale | benefit plans | ||||||||||||||||||
investments | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance as of June 30, 2013 | $ | (17,178 | ) | $ | 2,822 | $ | (15 | ) | $ | (14,322 | ) | $ | (28,693 | ) | |||||||
Other comprehensive income before reclassifications | 9,843 | 8,835 | 1,073 | 385 | 20,136 | ||||||||||||||||
Gains reclassified from accumulated other comprehensive income to net income | — | (6,819 | ) (1) | (145 | ) (2) | — | (6,964 | ) | |||||||||||||
Net current-period other comprehensive income | $ | 9,843 | $ | 2,016 | $ | 928 | $ | 385 | $ | 13,172 | |||||||||||
Balance as of December 29, 2013 | $ | (7,335 | ) | $ | 4,838 | $ | 913 | $ | (13,937 | ) | $ | (15,521 | ) | ||||||||
-1 | Amount of after tax gain reclassified from accumulated other comprehensive income into net income located in revenue: $5,484, cost of goods sold: $953 and selling, general and administrative expenses: $382. | ||||||||||||||||||||
-2 | Amount of after tax gain reclassified from accumulated other comprehensive income into net income located in other expense, net |
Long_Term_Debt
Long Term Debt | 6 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Long Term Debt | ' | ||||||||||||||||
NOTE 13 — LONG-TERM DEBT | |||||||||||||||||
The following table reflects the carrying value of the Company’s convertible senior notes and other long-term debt as of December 29, 2013 and June 30, 2013: | |||||||||||||||||
December 29, | June 30, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
(in millions) | |||||||||||||||||
0.50% Notes due 2016 | $ | 450 | $ | 450 | |||||||||||||
Less: Unamortized interest discount | (38.2 | ) | (45.7 | ) | |||||||||||||
Net carrying amount of 0.50% Notes due 2016 | 411.8 | 404.3 | |||||||||||||||
1.25% Notes due 2018 | 450 | 450 | |||||||||||||||
Less: Unamortized interest discount | (69.9 | ) | (76.9 | ) | |||||||||||||
Net carrying amount of 1.25% Notes due 2018 | 380.1 | 373.1 | |||||||||||||||
2.625% Notes due 2041 | 699.9 | 699.9 | |||||||||||||||
Less: Unamortized interest discount | (185.1 | ) | (186.9 | ) | |||||||||||||
Net carrying amount of 2.625% Notes due 2041 | 514.8 | 513 | |||||||||||||||
Total debt | 1,306.70 | 1,290.40 | |||||||||||||||
Less: current portion of debt | (514.8 | ) | (513.0 | ) | |||||||||||||
Long-term debt | $ | 791.9 | $ | 777.4 | |||||||||||||
Convertible Senior Notes | |||||||||||||||||
In May 2011, the Company issued and sold $450.0 million in aggregate principal amount of 0.50% Convertible Senior Notes due May 2016 (the “2016 Notes”) at par. At the same time, the Company issued and sold $450.0 million in aggregate principal amount of 1.25% Convertible Senior Notes due May 2018 (the “2018 Notes”) at par. The 2016 Notes and the 2018 Notes may be converted, under certain circumstances, based on an initial conversion rate of 15.8687 shares of Common Stock per $1,000 principal amount of notes (which represents an initial conversion price of approximately $63.02 per share of Common Stock).The net proceeds to the Company from the sale of the 2016 Notes and the 2018 Notes were $835.5 million. The Company pays cash interest at an annual rate of 0.5% and 1.25%, respectively, on the 2016 Notes and the 2018 Notes, on a semi-annual basis on May 15 and November 15 of each year. | |||||||||||||||||
In June 2012, with the acquisition of Novellus, the Company assumed $700.0 million in aggregate principal amount of 2.625% Convertible Senior Notes due May 2041 (the “2041 Notes,” and collectively with the 2016 Notes and the 2018 Notes, the “Notes”). The 2041 Notes may be converted, under certain circumstances, based on an initial conversion rate of 28.4781 shares of Common Stock per $1,000 principal amount of notes (which represents an initial conversion price of approximately $35.11 per share of Common Stock). The Company pays cash interest at an annual rate of 2.625%, on a semi-annual basis on May 15 and November 15 of each year. The 2041 Notes also have a contingent interest payment provision that may require the Company to pay additional interest based on certain thresholds, beginning with the semi-annual interest payment commencing on May 15, 2021, and upon the occurrence of certain events, as outlined in the indenture governing the 2041 Notes. The maximum amount of the contingent interest will accrue at a rate of 2.1% per annum, excluding any potential impact from dividends deemed payable to holders of the 2041 Notes. The contingent interest payment provision has been identified as an embedded derivative, to be accounted for separately, and is recorded at fair value at the end of each reporting period in other non-current liabilities, with any gains and losses recorded in interest expense, within the Condensed Consolidated Statements of Operations. | |||||||||||||||||
The Company separately accounts for the liability and equity components of the Notes. The initial debt components of the 2016 Notes, the 2018 Notes, and the 2041 Notes were valued at $373.8 million, $345.1 million, and $509.5 million, respectively, based on the present value of the future cash flows using discount rates of 4.29%, 5.27%, and 4.28%, respectively, the Company’s borrowing rate at the date of the issuance or assumption for similar debt instruments without the conversion feature. The carrying values of the equity components of the 2016 Notes, the 2018 Notes, and the 2041 Notes were $76.2 million, $104.9 million, and $328.1 million, respectively as of December 29, 2013. The effective interest rates on the liability components of the 2016 Notes, the 2018 Notes, and the 2041 Notes for the three and six months ended December 29, 2013 were 4.29%, 5.27%, and 4.28%, respectively. The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the discount on the liability component of the Notes during the three and six months ended December 29, 2013 and December 23, 2012. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 29, | December 23, | December 29, | December 23, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in millions) | |||||||||||||||||
Contractual interest coupon | $ | 6.6 | $ | 6.6 | 13.1 | 13.1 | |||||||||||
Amortization of interest discount | 8.2 | 7.8 | 16.3 | 15.6 | |||||||||||||
Amortization of issuance costs | 0.6 | 0.6 | 1.2 | 1.2 | |||||||||||||
Total interest cost recognized | $ | 15.4 | $ | 15 | $ | 30.6 | $ | 29.9 | |||||||||
The remaining bond discount of the 2016 Notes, the 2018 Notes, and the 2041 Notes of $38.2 million, $69.9 million, and $185.1 million, respectively, as of December 29, 2013 will be amortized over their respective remaining lives of approximately 2.4 years, 4.4 years, and 27.4 years. As of December 29, 2013, the if-converted value of the 2016 Notes and 2018 Notes did not exceed the aggregate principal amount. As of December 29, 2013, the if-converted value of the 2041 Notes exceeded the aggregate principal amount by $380 million. | |||||||||||||||||
Convertible Note Hedges and Warrants | |||||||||||||||||
Concurrently with the issuance of the 2016 Notes and the 2018 Notes, the Company purchased convertible note hedges and sold warrants. The separate convertible note hedge and warrant transactions are collectively structured to reduce the potential future economic dilution associated with the conversion of the 2016 Notes and the 2018 Notes and to increase the effective initial conversion price to $71.34 and $76.10 per share, respectively. Each of these components is discussed below. | |||||||||||||||||
Concurrent with the issuance of the 2016 Notes, the Company sold warrants to purchase up to approximately 7.1 million shares of Common Stock at an exercise price of $71.34 per share. The warrants expire on a series of dates between August 15, 2016 and October 21, 2016. At expiration, the Company may, at its option, elect to settle the warrants on a net share basis. As of December 29, 2013, the warrants had not been exercised and remained outstanding. In addition, counterparties agreed to sell to the Company up to approximately 7.1 million shares of the Company’s common stock, which is the number of shares initially issuable upon conversion of the 2016 Notes in full, at a price of $63.02 per share. The convertible note hedge transaction will be settled in net shares and will terminate upon the earlier of the maturity date of the 2016 Notes or the first day none of the 2016 Notes remains outstanding due to conversion or otherwise. Settlement of the convertible note hedge in net shares, based on the number of shares issued upon conversion of the 2016 Notes, on the expiration date would result in the Company receiving net shares equivalent to the number of shares issuable by the Company upon conversion of the 2016 Notes. | |||||||||||||||||
Concurrent with the issuance of the 2018 Notes, the Company sold warrants to purchase up to approximately 7.1 million shares of Common Stock at an exercise price of $76.10 per share. The warrants expire on a series of dates between August 15, 2018 and October 23, 2018. At expiration, the Company may, at its option, elect to settle the warrants on a net share basis. As of December 29, 2013, the warrants had not been exercised and remained outstanding. In addition, counterparties agreed to sell to the Company up to approximately 7.1 million shares of the Company’s common stock, which is the number of shares initially issuable upon conversion of the 2018 Notes in full, at a price of $63.02 per share. The convertible note hedge transaction will be settled in net shares and will terminate upon the earlier of the maturity date of the 2018 Notes or the first day none of the 2018 Notes remains outstanding due to conversion or otherwise. Settlement of the convertible note hedge in net shares, based on the number of shares issued upon conversion of the 2018 Notes, on the expiration date would result in the Company receiving net shares equivalent to the number of shares issuable by the Company upon conversion of the 2018 Notes. | |||||||||||||||||
Conversion Period | |||||||||||||||||
During the fiscal quarters ended June 30, 2013 and December 29, 2013 the Company’s common stock for 20 or more trading days of the 30 consecutive trading days preceding the quarter end was greater than or equal to 130% of the 2041 Note conversion price. As a result, the 2041 Notes became convertible at the option of the holder anytime during the fiscal quarters ending December 29, 2013 and March 30, 2014 (the “March 2014 quarter”). However, there were no conversions of the 2041 Notes during the December 2013 quarter or the March 2014 quarter as of February 6, 2014. | |||||||||||||||||
As a result of the open conversion period, the carrying amount of the 2041 Notes was classified in current liabilities in the Company’s Consolidated Balance Sheets as of December 29, 2013 and June 30, 2013. The excess of the amount of cash payable, if converted, over the carrying amount of the 2041 Notes was classified as temporary equity as of December 29, 2013 and June 30, 2013. Upon closure of a conversion period, all 2041 Notes not converted will be reclassified back to noncurrent liabilities and the temporary equity is reclassified to permanent equity. | |||||||||||||||||
Fair Value of Notes | |||||||||||||||||
As of December 29, 2013, the face values of the 2016 Notes, the 2018 Notes, and the 2041 Notes were $450.0 million, $450.0 million, and $699.9 million, respectively. As of December 29, 2013, the fair values of the 2016 Notes, the 2018 Notes, and the 2041 Notes, which includes the debt and equity components, were approximately $508.5 million, $544.5 million, and $1,161.9 million, respectively, based on quoted market prices (Level 1 inputs within the fair value hierarchy). |
Commitments
Commitments | 6 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Commitments | ' | ||||||||||||||||
NOTE 14 — COMMITMENTS | |||||||||||||||||
Operating Leases and Related Guarantees | |||||||||||||||||
The Company leases certain of its administrative, R&D and manufacturing facilities, regional sales/service offices and certain equipment under non-cancelable operating leases. Certain of the Company’s facility leases for buildings located at its Fremont, California headquarters and certain other facility leases provide the Company with options to extend the leases for additional periods or to purchase the facilities. Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation. | |||||||||||||||||
On December 18, 2007, the Company entered into two operating leases regarding certain improved properties in Livermore, California. These leases were amended on April 3, 2008 and July 9, 2008 (as so amended, the “Livermore Leases”). On December 21, 2007, the Company entered into a series of four amended and restated operating leases (the “New Fremont Leases,” and collectively with the Livermore Leases, the “Operating Leases”) with regard to certain improved properties at the Company’s headquarters in Fremont, California. | |||||||||||||||||
The Operating Leases have a term of approximately seven years ending on the first business day in January 2015. The Company may, at its discretion and with 30 days’ notice, elect to purchase the property that is the subject of the Operating Leases for an amount approximating the sum required to pay the amount of the lessor’s investment in the property and any accrued but unpaid rent. | |||||||||||||||||
The Company is required, pursuant to the terms of the Operating Leases, to maintain collateral in an aggregate of approximately $164.9 million in separate interest-bearing accounts as security for the Company’s obligations under the Operating Leases. This amount is recorded as restricted cash in the Company’s Consolidated Balance Sheet as of December 29, 2013. | |||||||||||||||||
When the terms of the Operating Leases expire, the property subject to those Operating Leases may be remarketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate guarantee made by the Company under the Operating Leases is generally no more than approximately $141.7 million; however, under certain default circumstances, the guarantee with regard to an Operating Lease may be 100% of the lessor’s aggregate investment in the applicable property, which in no case will exceed $164.9 million, in the aggregate. | |||||||||||||||||
In prior fiscal years, the Company recognized aggregate restructuring charges of $26.7 million related to the reassessment of the residual value guarantee for such lease. This amount has been recorded in other long-term liabilities as of December 29, 2013. | |||||||||||||||||
Subsequent to December 29, 2013, the Company entered into a series of six amended operating leases (the “Amended Operating Leases”) regarding the Livermore, California, and Fremont, California properties noted above. As a result of the Company’s entry into the Amended Operating Leases, all lease balances under the existing Operating Leases were paid and the Company’s obligations under those leases were terminated. Each Amended Operating Lease has a seven-year term ending on December 31, 2020. Scheduled rent payments under the Amended Operating Leases during the aggregate lease term are estimated to be approximately $43.8 million. | |||||||||||||||||
During the term of an Amended Operating Lease and upon expiration of the term of an Amended Operating Lease, the property subject to that lease may be remarketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate guarantee made by the Company under the Amended Operating Leases is generally no more than approximately $191.2 million. However, under certain default circumstances, the guarantee with regard to an Amended Operating Lease may be 100% of the lessor’s investment in the applicable property; in the aggregate, the amounts payable under such guarantees will be no more than $220.0 million plus related indemnification or other obligations. | |||||||||||||||||
Other Guarantees | |||||||||||||||||
The Company has issued certain indemnifications to its lessors for taxes and general liability under some of its agreements. The Company has entered into certain insurance contracts that may limit its exposure to such indemnifications. As of December 29, 2013, the Company had not recorded any liability in connection with these indemnifications, as it does not believe, based on information available, that it is probable that any amounts will be paid under these guarantees. | |||||||||||||||||
Generally, the Company indemnifies, under pre-determined conditions and limitations, its customers for infringement of third-party intellectual property rights by the Company’s products or services. The Company seeks to limit its liability for such indemnity to an amount not to exceed the sales price of the products or services subject to its indemnification obligations. The Company does not believe, based on information available, 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 December 29, 2013, the maximum potential amount of future payments that we could be required to make under these arrangements and letters of credit was $21.6 million. We do not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid. | |||||||||||||||||
Warranties | |||||||||||||||||
The Company provides standard warranties on its systems. The liability amount is based on actual historical warranty spending activity by type of system, customer, and geographic region, modified for any known differences such as the impact of system reliability improvements. | |||||||||||||||||
Changes in the Company’s product warranty reserves were as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 29, | December 23, | December 29, | December 23, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of period | $ | 59,871 | $ | 67,836 | $ | 58,078 | $ | 70,161 | |||||||||
Warranties issued during the period | 25,546 | 14,856 | 42,299 | 34,548 | |||||||||||||
Settlements made during the period | (18,967 | ) | (21,484 | ) | (33,272 | ) | (45,859 | ) | |||||||||
Changes in liability for pre-existing warranties | 963 | 1,714 | 308 | 4,072 | |||||||||||||
Balance at end of period | $ | 67,413 | $ | 62,922 | $ | 67,413 | $ | 62,922 | |||||||||
Restructuring_and_Impairments
Restructuring and Impairments | 6 Months Ended |
Dec. 29, 2013 | |
Restructuring and Impairments | ' |
NOTE 15 — RESTRUCTURING AND IMPAIRMENTS | |
From time to time, Lam initiates restructuring activities to appropriately align its cost structure relative to prevailing economic and industry conditions and associated customer demand as well as in connection with certain acquisitions. Costs associated with restructuring actions can include termination benefits and related charges in addition to facility closure, contract termination and other related activities. | |
Accounting for restructuring activities, as compared to regular operating cost management activities, requires an evaluation of formally committed and approved plans. Restructuring activities have comparatively greater strategic significance and materiality and may involve exit activities, whereas regular cost containment activities are more tactical in nature and are rarely characterized by formal and integrated action plans or exiting a particular product, facility, or service. | |
March 2009 Plan | |
Beginning in the March 2009 quarter, the Company incurred restructuring expenses designed to align the Company’s cost structure with its outlook for the economic environment and business opportunities. The remaining liability under this plan of $26.7 million relates to the residual value guarantee under certain of the Company’s unoccupied operating leases. See Note 14 to the Condensed Consolidated Financial Statements for additional information regarding residual value guarantees. | |
Acquired Restructuring Liabilities | |
In addition to restructuring plans initiated by the Company, a restructuring liability related to future rent obligations on unoccupied facilities was assumed in the Novellus acquisition. The associated liability balance of $11.4 million, as of December 29, 2013, is expected to be paid by the end of fiscal year 2017. |
Stock_Repurchase_Program
Stock Repurchase Program | 6 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Stock Repurchase Program | ' | ||||||||||||||||
NOTE 16 — STOCK REPURCHASE PROGRAM | |||||||||||||||||
On April 22, 2013, the Board of Directors authorized the repurchase of up to $250 million of Common Stock. These repurchases can be conducted on the open market or as private purchases and may include the use of derivative contracts with large financial institutions, in all cases subject to compliance with applicable law. Repurchases will be funded using the Company’s on-shore cash and on-shore cash generation. This repurchase program has no termination date and may be suspended or discontinued at any time. | |||||||||||||||||
Repurchases under the repurchase program were as follows during the periods indicated: | |||||||||||||||||
Period | Total Number of | Total Cost of | Average Price Paid | Amount Available | |||||||||||||
Shares Repurchased | Repurchase | Per Share* | Under Repurchase | ||||||||||||||
Program | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Available balance as of June 30, 2013 | $ | 250,000 | |||||||||||||||
Quarter ended September 29, 2013 | 1,935 | $ | 96,462 | $ | 48.06 | $ | 153,538 | ||||||||||
Quarter ended December 29, 2013 | 762 | $ | 39,800 | $ | 52.2 | $ | 113,738 | ||||||||||
* | Average price paid per share excludes accelerated share repurchases for which cost was incurred during the September 2013 quarter, but that did not settle until the December 2013 quarter. See Collared Accelerated Share Repurchases section below for details regarding average price associated with these transactions. | ||||||||||||||||
In addition to shares repurchased under the Board-authorized repurchase program shown above, during the six months ended December 29, 2013, the Company acquired 204,000 shares at a total cost of $10.6 million, which the Company withheld through net share settlements to cover minimum tax withholding obligations upon the vesting of restricted stock unit awards granted under the Company’s equity compensation 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 plans. | |||||||||||||||||
As part of its share repurchase program, the Company may from time-to-time enter into structured share repurchase arrangements with financial institutions using general corporate funds. Such arrangements entered into or settled during the six months ended December 29, 2013 included the following: | |||||||||||||||||
Collared Accelerated Share Repurchases | |||||||||||||||||
During the three months ended September 29, 2013, the Company entered into a collared accelerated share repurchase (“ASR”) transaction under a master repurchase arrangement. Under the ASR, the Company made an up-front cash payment of $75 million, in exchange for an initial delivery of 1.2 million shares of its Common Stock and a subsequent delivery of 0.3 million shares following the initial hedge period. | |||||||||||||||||
The number of shares to ultimately be repurchased by the Company is based generally on the volume-weighted average price (“VWAP”) of the Common Stock during the term of the ASR minus a pre-determined discount set at inception of the ASR, subject to collar provisions that provide a minimum and maximum number of shares that the Company could repurchase under the agreements. The minimum and maximum thresholds for the transaction were established based on the average of the VWAP prices for the Common Stock during an initial hedge period. The ASR was scheduled to end at any time after September 27, 2013 and on or before November 27, 2013. At the conclusion of the ASR, the Company may receive additional shares based on the VWAP of the Common Stock during the term of the agreement minus the pre-determined fixed discount, however, the total number of shares received under the ASR would not exceed the maximum of 1.7 million shares. | |||||||||||||||||
The counterparty designated October 28, 2013 as the termination date, at which time the Company settled the ASR. No additional shares were received at final settlement, which represented a weighted-average share price of approximately $50.40 for the transaction period. | |||||||||||||||||
The Company accounted for the ASR as two separate transactions: (a) as shares of common stock acquired in a treasury stock transaction recorded on the acquisition date and (b) as a forward contract indexed to the Company’s own common stock and classified in stockholders’ equity. As such, the Company accounted for the shares that it received under the ASR as a repurchase of its Common Stock for the purpose of calculating earnings per common share. The Company has determined that the forward contract indexed to the Common Stock met all of the applicable criteria for equity classification in accordance with the Derivatives and Hedging topic of the FASB Accounting Standards Codification, and, therefore, the ASR was not accounted for as a derivative instrument. As of December 29, 2013, the aggregate repurchase price of $75 million was reflected as Treasury stock, at cost, in the Consolidated Balance Sheet. |
Legal_Proceedings
Legal Proceedings | 6 Months Ended |
Dec. 29, 2013 | |
Legal Proceedings | ' |
NOTE 17 — LEGAL PROCEEDINGS | |
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. To the extent there is a reasonable possibility that the losses could exceed the amounts already accrued, the Company believes that the amount of any such additional loss would be immaterial to the Company’s business, financial condition, and results of operations. |
EquityBased_Compensation_Plans1
Equity-Based Compensation Plans (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Recognized Equity Based Compensation Expenses and Related Income Tax Benefit | ' | ||||||||||||||||
The Company recognized the following equity-based compensation expense and related income tax benefit in the Condensed Consolidated Statements of Operations: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 29, | December 23, | December 29, | December 23, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in millions) | |||||||||||||||||
Equity-based compensation expense | $ | 23 | $ | 24 | $ | 46.3 | $ | 48.4 | |||||||||
Income tax benefit related to equity-based compensation expense | $ | 3.7 | $ | 3.3 | $ | 7.6 | $ | 9 | |||||||||
Summary of Stock Option Activity | ' | ||||||||||||||||
A summary of stock option activity under the Plans as of December 29, 2013 and changes during the six months then ended is presented below: | |||||||||||||||||
Options | Shares | Weighted- | Weighted-Average | Aggregate Intrinsic | |||||||||||||
(in thousands) | Average | Remaining | Value as of | ||||||||||||||
Exercise Price | Contractual Term | December 29, 2013 | |||||||||||||||
(years) | (in thousands) | ||||||||||||||||
Outstanding at June 30, 2013 | 2,571 | $ | 26.87 | 4.48 | |||||||||||||
Exercised | (842 | ) | $ | 24.98 | |||||||||||||
Forfeited or expired | (1 | ) | $ | 29.71 | |||||||||||||
Outstanding at December 29, 2013 | 1,728 | $ | 27.79 | 4.88 | $ | 45,607 | |||||||||||
Exercisable at December 29, 2013 | 1,270 | $ | 24.17 | 4.3 | $ | 38,118 | |||||||||||
Summary of Restricted Stock Units | ' | ||||||||||||||||
A summary of the Company’s RSUs as of December 29, 2013 and changes during the six months then ended is presented below: | |||||||||||||||||
Unvested Restricted Stock Units | Shares | Average Grant- | |||||||||||||||
(in thousands) | Date Fair Value | ||||||||||||||||
Unvested at June 30, 2013 | 4,842 | $ | 39.32 | ||||||||||||||
Granted | 127 | $ | 51.97 | ||||||||||||||
Vested | (1,014 | ) | $ | 39.45 | |||||||||||||
Forfeited | (138 | ) | $ | 39.49 | |||||||||||||
Unvested at December 29, 2013 | 3,817 | $ | 39.7 | ||||||||||||||
Schedule of ESPP Weighted-Average Assumptions | ' | ||||||||||||||||
Purchase rights under the 1999 ESPP were valued using the Black-Scholes option valuation model assuming no expected dividends and the following weighted-average assumptions for the six months ended December 29, 2013: | |||||||||||||||||
Six Months Ended | |||||||||||||||||
December 29, | |||||||||||||||||
2013 | |||||||||||||||||
Expected term (years) | 0.66 | ||||||||||||||||
Expected stock price volatility | 31.43 | % | |||||||||||||||
Risk-free interest rate | 0.11 | % |
Financial_Instruments_Tables
Financial Instruments (Tables) | 6 Months Ended | ||||||||||||||||||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||||||||||||||||||
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis | ' | ||||||||||||||||||||||||||||||||
The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at December 29, 2013: | |||||||||||||||||||||||||||||||||
Fair Value Measurement at December 29, 2013 | |||||||||||||||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Short-Term Investments | |||||||||||||||||||||||||||||||||
Money Market Funds | $ | 730,194 | $ | 730,194 | $ | — | $ | — | |||||||||||||||||||||||||
Municipal Notes and Bonds | 252,261 | — | 252,261 | — | |||||||||||||||||||||||||||||
US Treasury and Agencies | 175,673 | 175,673 | — | — | |||||||||||||||||||||||||||||
Government-Sponsored Enterprises | 38,399 | — | 38,399 | — | |||||||||||||||||||||||||||||
Foreign Government Bonds | 29,708 | — | 29,708 | — | |||||||||||||||||||||||||||||
Corporate Notes and Bonds | 928,123 | 164,885 | 763,238 | — | |||||||||||||||||||||||||||||
Mortgage Backed Securities - Residential | 26,941 | — | 26,941 | — | |||||||||||||||||||||||||||||
Mortgage Backed Securities - Commercial | 103,515 | — | 103,515 | — | |||||||||||||||||||||||||||||
Total Short-Term Investments | $ | 2,284,814 | $ | 1,070,752 | $ | 1,214,062 | $ | — | |||||||||||||||||||||||||
Mutual Funds | 22,324 | 22,324 | — | — | |||||||||||||||||||||||||||||
Derivative Assets | 5,618 | — | 5,618 | — | |||||||||||||||||||||||||||||
Total Assets | $ | 2,312,756 | $ | 1,093,076 | $ | 1,219,680 | $ | — | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Derivative Liabilities | $ | 293 | $ | — | $ | 244 | $ | 49 | |||||||||||||||||||||||||
The following table sets forth the Company’s financial assets and liabilities measured at fair value on a recurring basis at June 30, 2013: | |||||||||||||||||||||||||||||||||
Fair Value Measurement at June 30, 2013 | |||||||||||||||||||||||||||||||||
Total | Quoted Prices in | Significant Other | Significant | ||||||||||||||||||||||||||||||
Active Markets for | Observable Inputs | Unobservable | |||||||||||||||||||||||||||||||
Identical Assets | (Level 2) | Inputs | |||||||||||||||||||||||||||||||
(Level 1) | (Level 3) | ||||||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Assets | |||||||||||||||||||||||||||||||||
Short-Term Investments | |||||||||||||||||||||||||||||||||
Money Market Funds | $ | 725,311 | $ | 725,311 | $ | — | $ | — | |||||||||||||||||||||||||
Municipal Notes and Bonds | 268,746 | — | 268,746 | — | |||||||||||||||||||||||||||||
US Treasury and Agencies | 155,293 | 155,293 | — | — | |||||||||||||||||||||||||||||
Government-Sponsored Enterprises | 54,805 | — | 54,805 | — | |||||||||||||||||||||||||||||
Foreign Government Bond | 24,972 | — | 24,972 | — | |||||||||||||||||||||||||||||
Corporate Notes and Bonds | 860,492 | 164,885 | 695,607 | — | |||||||||||||||||||||||||||||
Mortgage Backed Securities - Residential | 27,365 | — | 27,365 | — | |||||||||||||||||||||||||||||
Mortgage Backed Securities - Commercial | 107,958 | — | 107,958 | — | |||||||||||||||||||||||||||||
Total Short-Term Investments | $ | 2,224,942 | $ | 1,045,489 | $ | 1,179,453 | $ | — | |||||||||||||||||||||||||
Equities | 7,096 | 7,096 | — | — | |||||||||||||||||||||||||||||
Mutual Funds | 18,216 | 18,216 | — | — | |||||||||||||||||||||||||||||
Derivative Assets | 4,929 | — | 4,929 | — | |||||||||||||||||||||||||||||
Total Assets | $ | 2,255,183 | $ | 1,070,801 | $ | 1,184,382 | $ | — | |||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||||||
Derivative Liabilities | $ | 1,815 | $ | — | $ | 1,620 | $ | 195 | |||||||||||||||||||||||||
Schedule of Assets and Liabilities Measured at Fair Value as Reported in Consolidated Balance Sheet | ' | ||||||||||||||||||||||||||||||||
The amounts in the table above are reported in the Consolidated Balance Sheet as of December 29, 2013 as follows: | |||||||||||||||||||||||||||||||||
Reported Within: | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Cash Equivalents | $ | 730,194 | $ | 730,194 | $ | — | $ | — | |||||||||||||||||||||||||
Short-Term Investments | 1,389,735 | 175,673 | 1,214,062 | — | |||||||||||||||||||||||||||||
Restricted Cash and Investments | 164,885 | 164,885 | — | — | |||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets | 5,618 | — | 5,618 | — | |||||||||||||||||||||||||||||
Other Assets | 22,324 | 22,324 | — | — | |||||||||||||||||||||||||||||
Total Assets | $ | 2,312,756 | $ | 1,093,076 | $ | 1,219,680 | $ | — | |||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | $ | 244 | $ | — | $ | 244 | $ | — | |||||||||||||||||||||||||
Other Non-current Liabilities | 49 | — | — | 49 | |||||||||||||||||||||||||||||
Total Liabilities | $ | 293 | $ | — | $ | 244 | $ | 49 | |||||||||||||||||||||||||
The amounts in the table above are reported in the Consolidated Balance Sheet as of June 30, 2013 as follows: | |||||||||||||||||||||||||||||||||
Reported Within: | Total | Level 1 | Level 2 | Level 3 | |||||||||||||||||||||||||||||
(In thousands) | |||||||||||||||||||||||||||||||||
Cash Equivalents | $ | 725,311 | $ | 725,311 | $ | — | $ | — | |||||||||||||||||||||||||
Short-Term Investments | 1,334,746 | 155,293 | 1,179,453 | — | |||||||||||||||||||||||||||||
Restricted Cash and Investments | 164,885 | 164,885 | — | — | |||||||||||||||||||||||||||||
Prepaid Expenses and Other Current Assets | 4,929 | — | 4,929 | — | |||||||||||||||||||||||||||||
Other Assets | 25,312 | 25,312 | — | — | |||||||||||||||||||||||||||||
Total Assets | $ | 2,255,183 | $ | 1,070,801 | $ | 1,184,382 | $ | — | |||||||||||||||||||||||||
Accrued Expenses and Other Current Liabilities | $ | 1,620 | $ | — | $ | 1,620 | $ | — | |||||||||||||||||||||||||
Other Non-current Liabilities | 195 | — | — | 195 | |||||||||||||||||||||||||||||
Total Liabilities | $ | 1,815 | $ | — | $ | 1,620 | $ | 195 | |||||||||||||||||||||||||
Summary of Investments | ' | ||||||||||||||||||||||||||||||||
The following tables summarize the Company’s investments (in thousands): | |||||||||||||||||||||||||||||||||
December 29, 2013 | June 30, 2013 | ||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Cost | Unrealized | Unrealized | Fair Value | ||||||||||||||||||||||||||
Gain | (Loss) | Gain | (Loss) | ||||||||||||||||||||||||||||||
Cash | $ | 403,871 | $ | — | $ | — | $ | 403,871 | $ | 438,813 | $ | — | $ | — | $ | 438,813 | |||||||||||||||||
Fixed Income Money Market Funds | 730,194 | — | — | 730,194 | 725,311 | — | — | 725,311 | |||||||||||||||||||||||||
Municipal Notes and Bonds | 251,397 | 911 | (47 | ) | 252,261 | 268,390 | 805 | (449 | ) | 268,746 | |||||||||||||||||||||||
US Treasury and Agencies | 175,810 | 29 | (166 | ) | 175,673 | 155,648 | 18 | (373 | ) | 155,293 | |||||||||||||||||||||||
Government-Sponsored Enterprises | 38,363 | 53 | (17 | ) | 38,399 | 54,835 | 65 | (95 | ) | 54,805 | |||||||||||||||||||||||
Foreign Government Bonds | 29,712 | 59 | (63 | ) | 29,708 | 24,950 | 47 | (25 | ) | 24,972 | |||||||||||||||||||||||
Corporate Notes and Bonds | 926,954 | 1,843 | (674 | ) | 928,123 | 861,109 | 1,328 | (1,945 | ) | 860,492 | |||||||||||||||||||||||
Mortgage Backed Securities - Residential | 27,240 | 22 | (321 | ) | 26,941 | 27,618 | 29 | (282 | ) | 27,365 | |||||||||||||||||||||||
Mortgage Backed Securities - Commercial | 103,828 | 242 | (555 | ) | 103,515 | 108,204 | 426 | (672 | ) | 107,958 | |||||||||||||||||||||||
Total Cash and Short-Term Investments | $ | 2,687,369 | $ | 3,159 | $ | (1,843 | ) | $ | 2,688,685 | $ | 2,664,878 | $ | 2,718 | $ | (3,841 | ) | $ | 2,663,755 | |||||||||||||||
Publicly Traded Equity Security | $ | — | $ | — | $ | — | $ | — | $ | 5,610 | $ | 1,486 | $ | — | $ | 7,096 | |||||||||||||||||
Private Equity Security | — | — | — | — | 5,000 | — | — | 5,000 | |||||||||||||||||||||||||
Mutual Funds | 19,575 | 2,749 | — | 22,324 | 16,611 | 1,619 | (14 | ) | 18,216 | ||||||||||||||||||||||||
Total Financial Instruments | $ | 2,706,944 | $ | 5,908 | $ | (1,843 | ) | $ | 2,711,009 | $ | 2,692,099 | $ | 5,823 | $ | (3,855 | ) | $ | 2,694,067 | |||||||||||||||
Reported Within | |||||||||||||||||||||||||||||||||
Cash and Cash Equivalents | $ | 1,132,555 | $ | — | $ | — | $ | 1,132,555 | $ | 1,162,473 | $ | — | $ | — | $ | 1,162,473 | |||||||||||||||||
Short-Term Investments | 1,388,419 | 3,159 | (1,843 | ) | 1,389,735 | 1,335,868 | 2,718 | (3,841 | ) | 1,334,745 | |||||||||||||||||||||||
Restricted Cash and Investments | 166,395 | — | — | 166,395 | 166,536 | — | — | 166,536 | |||||||||||||||||||||||||
Other assets | 19,575 | 2,749 | — | 22,324 | 27,222 | 3,105 | (14 | ) | 30,313 | ||||||||||||||||||||||||
Total | $ | 2,706,944 | $ | 5,908 | $ | (1,843 | ) | $ | 2,711,009 | $ | 2,692,099 | $ | 5,823 | $ | (3,855 | ) | $ | 2,694,067 | |||||||||||||||
Schedule of Fixed Income Securities in Unrealized Loss Positions | ' | ||||||||||||||||||||||||||||||||
The following is an analysis of the Company’s fixed income securities in unrealized loss positions (in thousands): | |||||||||||||||||||||||||||||||||
December 29, 2013 | |||||||||||||||||||||||||||||||||
Unrealized Losses | Unrealized Losses | Total | |||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | ||||||||||||||||||||||||||||||||
Fair Value | Gross | Fair Value | Gross | Fair Value | Gross | ||||||||||||||||||||||||||||
Unrealized | Unrealized | Unrealized | |||||||||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||||||
Short-Term Investments | |||||||||||||||||||||||||||||||||
Municipal Notes and Bonds | $ | 22,814 | $ | (47 | ) | $ | — | $ | — | $ | 22,814 | $ | (47 | ) | |||||||||||||||||||
US Treasury and Agencies | 127,143 | (166 | ) | — | — | 127,143 | (166 | ) | |||||||||||||||||||||||||
Government-Sponsored Enterprises | 11,466 | (17 | ) | — | — | 11,466 | (17 | ) | |||||||||||||||||||||||||
Foreign Government Bonds | 16,906 | (63 | ) | — | — | 16,906 | (63 | ) | |||||||||||||||||||||||||
Corporate Notes and Bonds | 260,575 | (643 | ) | 4,709 | (31 | ) | 265,284 | (674 | ) | ||||||||||||||||||||||||
Mortgage Backed Securities - Residential | 21,186 | (296 | ) | 2,050 | (25 | ) | 23,236 | (321 | ) | ||||||||||||||||||||||||
Mortgage Backed Securities - Commercial | 66,447 | (436 | ) | 5,756 | (119 | ) | 72,203 | (555 | ) | ||||||||||||||||||||||||
Total Short-Term Investments | $ | 526,537 | $ | (1,668 | ) | $ | 12,515 | $ | (175 | ) | $ | 539,052 | $ | (1,843 | ) | ||||||||||||||||||
Schedule of Amortized Cost and Fair Value of Cash Equivalents, Short-Term Investments, and Restricted Cash and Investments with Contractual Maturities | ' | ||||||||||||||||||||||||||||||||
The amortized cost and fair value of cash equivalents, short-term investments, and restricted cash and investments with contractual maturities are as follows as of December 29, 2013: | |||||||||||||||||||||||||||||||||
Cost | Estimated Fair | ||||||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,140,750 | $ | 1,141,168 | |||||||||||||||||||||||||||||
Due after one year through five years | 986,845 | 988,339 | |||||||||||||||||||||||||||||||
Due in more than five years | 155,903 | 155,307 | |||||||||||||||||||||||||||||||
$ | 2,283,498 | $ | 2,284,814 | ||||||||||||||||||||||||||||||
Schedule of Outstanding Foreign Currency Forward Contracts | ' | ||||||||||||||||||||||||||||||||
As of December 29, 2013, the Company had the following outstanding foreign currency forward contracts that were entered into under its cash flow and balance sheet hedge program: | |||||||||||||||||||||||||||||||||
Derivatives Designated as | Derivatives Not Designated as | ||||||||||||||||||||||||||||||||
Hedging Instruments: | Hedging Instruments: | ||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Foreign Currency Forward Contracts | |||||||||||||||||||||||||||||||||
Buy Contracts | Sell Contracts | Buy Contracts | Sell Contracts | ||||||||||||||||||||||||||||||
Japanese Yen | $ | — | $ | 66,619 | $ | — | $ | 116,339 | |||||||||||||||||||||||||
Euro | 64,771 | — | — | 15,271 | |||||||||||||||||||||||||||||
Korean Won | — | — | 29,431 | — | |||||||||||||||||||||||||||||
Taiwan Dollar | — | — | 139,067 | — | |||||||||||||||||||||||||||||
$ | 64,771 | $ | 66,619 | $ | 168,498 | $ | 131,610 | ||||||||||||||||||||||||||
Schedule of Fair Value of Derivatives Instruments | ' | ||||||||||||||||||||||||||||||||
The fair value of derivative instruments in the Company’s Consolidated Balance Sheets as of December 29, 2013 and June 30, 2013 were as follows: | |||||||||||||||||||||||||||||||||
December 29, 2013 | June 30, 2013 | ||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments | Fair Value of Derivative Instruments | ||||||||||||||||||||||||||||||||
Asset Derivatives | Liability Derivatives | Asset Derivatives | Liability Derivatives | ||||||||||||||||||||||||||||||
Balance Sheet | Fair Value | Balance Sheet | Fair Value | Balance Sheet | Fair Value | Balance Sheet | Fair Value | ||||||||||||||||||||||||||
Location | Location | Location | Location | ||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Derivatives designated as hedging instruments: | |||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expense and other assets | $ | 5,585 | Accrued liabilities | $ | — | Prepaid expense and other assets | $ | 4,858 | Accrued liabilities | $ | 1,577 | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expense and other assets | 33 | Accrued liabilities | 244 | Prepaid expense and other assets | 71 | Accrued liabilities | 43 | |||||||||||||||||||||||||
Total derivatives | $ | 5,618 | $ | 244 | $ | 4,929 | $ | 1,620 | |||||||||||||||||||||||||
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 was as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
December 29, 2013 | December 29, 2013 | ||||||||||||||||||||||||||||||||
Effective Portion | Ineffective | Effective Portion | Ineffective | ||||||||||||||||||||||||||||||
Portion and | Portion and | ||||||||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||||||
Excluded | Excluded | ||||||||||||||||||||||||||||||||
from | from | ||||||||||||||||||||||||||||||||
Effectiveness | Effectiveness | ||||||||||||||||||||||||||||||||
Testing | Testing | ||||||||||||||||||||||||||||||||
Location of Gain | Gain | Gain (Loss) | Gain (Loss) | Gain | Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||
(Loss) Recognized | (Loss) | Reclassified | Recognized | (Loss) | Reclassified | Recognized | |||||||||||||||||||||||||||
in or Reclassified | Recognized | from AOCI | in Income | Recognized | from AOCI | in Income | |||||||||||||||||||||||||||
into Income | in AOCI | into Income | in AOCI | into Income | |||||||||||||||||||||||||||||
Derivatives Designated as Hedging | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Instruments | |||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Revenue | $ | 3,226 | $ | 2,777 | $ | 85 | $ | 8,104 | $ | 6,159 | $ | 178 | ||||||||||||||||||||
Foreign Exchange Contracts | Cost of goods sold | 1,262 | 467 | (24 | ) | 1,410 | 1,118 | (56 | ) | ||||||||||||||||||||||||
Foreign Exchange Contracts | Selling, general, and administrative | 506 | 193 | (9 | ) | 554 | 510 | (24 | ) | ||||||||||||||||||||||||
Foreign Exchange Contracts | Other income (expense) | — | — | — | — | — | — | ||||||||||||||||||||||||||
$ | 4,994 | $ | 3,437 | $ | 52 | $ | 10,068 | $ | 7,787 | $ | 98 | ||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
December 23, 2012 | December 23, 2012 | ||||||||||||||||||||||||||||||||
Effective Portion | Ineffective | Effective Portion | Ineffective | ||||||||||||||||||||||||||||||
Portion and | Portion and | ||||||||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||||||
Excluded | Excluded | ||||||||||||||||||||||||||||||||
from | from | ||||||||||||||||||||||||||||||||
Effectiveness | Effectiveness | ||||||||||||||||||||||||||||||||
Testing | Testing | ||||||||||||||||||||||||||||||||
Location of Gain | Gain | Gain (Loss) | Gain (Loss) | Gain | Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||
(Loss) Recognized | (Loss) | Reclassified | Recognized | (Loss) | Reclassified | Recognized | |||||||||||||||||||||||||||
in or Reclassified | Recognized | from AOCI | in Income | Recognized | from AOCI | in Income | |||||||||||||||||||||||||||
into Income | in AOCI | into Income | in AOCI | into Income | |||||||||||||||||||||||||||||
Derivatives Designated as Hedging | (in thousands) | (in thousands) | |||||||||||||||||||||||||||||||
Instruments | |||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Revenue | $ | 1,432 | $ | (133 | ) | $ | 52 | $ | (1,294 | ) | $ | 724 | $ | 196 | ||||||||||||||||||
Foreign Exchange Contracts | Cost of goods sold | 644 | (239 | ) | (52 | ) | 1,895 | (2,263 | ) | (163 | ) | ||||||||||||||||||||||
Foreign Exchange Contracts | Selling, general, and administrative | 271 | 9 | (26 | ) | 1,027 | (750 | ) | (80 | ) | |||||||||||||||||||||||
Foreign Exchange Contracts | Other income (expense) | — | — | — | — | — | 8 | ||||||||||||||||||||||||||
$ | 2,347 | $ | (363 | ) | $ | (26 | ) | $ | 1,628 | $ | (2,289 | ) | $ | (39 | ) | ||||||||||||||||||
The effect of derivative instruments not designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations was as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||||||||||||||||
December 29, 2013 | December 23, 2012 | December 29, 2013 | December 23, 2012 | ||||||||||||||||||||||||||||||
Derivatives Not Designated as | Location of Gain | Gain Recognized | Loss Recognized | Gain Recognized | Loss Recognized | ||||||||||||||||||||||||||||
Hedging Instruments: | (Loss) Recognized in Income | in Income | in Income | in Income | in Income | ||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Other income (expense) | $ | 5,012 | $ | 5,667 | $ | 11,040 | $ | 286 |
Inventories_Tables
Inventories (Tables) | 6 Months Ended | ||||||||
Dec. 29, 2013 | |||||||||
Schedule of Inventories | ' | ||||||||
Inventories consist of the following: | |||||||||
December 29, | June 30, | ||||||||
2013 | 2013 | ||||||||
(in thousands) | |||||||||
Raw materials | $ | 413,762 | $ | 312,484 | |||||
Work-in-process | 94,967 | 101,530 | |||||||
Finished goods | 152,843 | 145,303 | |||||||
$ | 661,572 | $ | 559,317 | ||||||
Property_and_Equipment_Net_Tab
Property and Equipment, Net (Tables) | 6 Months Ended | ||||||||
Dec. 29, 2013 | |||||||||
Schedule of Property and Equipment Net | ' | ||||||||
Property and equipment, net, consists of the following: | |||||||||
December 29, | June 30, | ||||||||
2013 | 2013 | ||||||||
(in thousands) | |||||||||
Manufacturing, engineering and office equipment | $ | 561,623 | $ | 521,047 | |||||
Computer equipment and software | 125,220 | 120,144 | |||||||
Land | 56,528 | 65,360 | |||||||
Buildings | 205,407 | 249,126 | |||||||
Leasehold improvements | 80,501 | 76,225 | |||||||
Furniture and fixtures | 24,830 | 21,110 | |||||||
1,054,109 | 1,053,012 | ||||||||
Less: accumulated depreciation and amortization | (507,916 | ) | (449,102 | ) | |||||
$ | 546,193 | $ | 603,910 | ||||||
Goodwill_and_Intangible_Assets1
Goodwill and Intangible Assets (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Schedule of Intangible Assets | ' | ||||||||||||||||
The following table provides details of the Company’s intangible assets, including the impact of foreign currency translation adjustments, as of December 29, 2013 (in thousands, except years): | |||||||||||||||||
Gross | Accumulated | Net | Weighted-Average | ||||||||||||||
Amortization | Useful Life (years) | ||||||||||||||||
Customer relationships | $ | 624,902 | $ | (139,270 | ) | $ | 485,632 | 9.01 | |||||||||
Existing technology | 657,273 | (185,093 | ) | 472,180 | 6.96 | ||||||||||||
Patents | 32,053 | (23,219 | ) | 8,834 | 6.09 | ||||||||||||
Other intangible assets | 35,216 | (35,216 | ) | — | 4.1 | ||||||||||||
Intangible assets subject to amortization | 1,349,444 | (382,798 | ) | 966,646 | |||||||||||||
In process research and development | 20,000 | 20,000 | |||||||||||||||
Development rights | 9,100 | 9,100 | |||||||||||||||
Intangible assets not subject to amortization | 29,100 | 29,100 | |||||||||||||||
Total intangible assets | $ | 1,378,544 | $ | (382,798 | ) | $ | 995,746 | ||||||||||
The following table provides details of the Company’s intangible assets, including the impact of foreign currency translation adjustments, as of June 30, 2013 (in thousands, except years): | |||||||||||||||||
Gross | Accumulated | Net | Weighted-Average | ||||||||||||||
Amortization | Useful Life (years) | ||||||||||||||||
Customer relationships | $ | 624,686 | $ | (103,519 | ) | $ | 521,167 | 9.01 | |||||||||
Existing technology | 653,628 | (139,894 | ) | 513,734 | 6.97 | ||||||||||||
Patents | 32,053 | (22,036 | ) | 10,017 | 6.09 | ||||||||||||
Backlog | 10,000 | (10,000 | ) | — | 1 | ||||||||||||
Other intangible assets | 35,216 | (34,889 | ) | 327 | 4.1 | ||||||||||||
Intangible assets subject to amortization | 1,355,583 | (310,338 | ) | 1,045,245 | |||||||||||||
In process research and development | 20,000 | 20,000 | |||||||||||||||
Development rights | 9,100 | 9,100 | |||||||||||||||
Intangible assets not subject to amortization | 29,100 | 29,100 | |||||||||||||||
Total intangible assets | $ | 1,384,683 | $ | (310,338 | ) | $ | 1,074,345 | ||||||||||
Estimated Future Amortization Expense of Intangible Assets | ' | ||||||||||||||||
The estimated future amortization expense of purchased intangible assets as of December 29, 2013 is as follows (in thousands): | |||||||||||||||||
Fiscal Year | Amount | ||||||||||||||||
2014 (6 months) | $ | 80,250 | |||||||||||||||
2015 | 159,718 | ||||||||||||||||
2016 | 157,510 | ||||||||||||||||
2017 | 155,790 | ||||||||||||||||
2018 | 154,625 | ||||||||||||||||
Thereafter | 258,753 | ||||||||||||||||
$ | 966,646 | ||||||||||||||||
Accrued_Expenses_and_Other_Cur1
Accrued Expenses and Other Current Liabilities (Tables) | 6 Months Ended | ||||||||
Dec. 29, 2013 | |||||||||
Schedule of Accrued Expenses and Other Current Liabilities | ' | ||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||
December 29, | June 30, | ||||||||
2013 | 2013 | ||||||||
(in thousands) | |||||||||
Accrued compensation | $ | 308,628 | $ | 254,795 | |||||
Warranty reserves | 66,338 | 52,252 | |||||||
Income and other taxes payable | 38,716 | 39,420 | |||||||
Other | 115,437 | 118,061 | |||||||
$ | 529,119 | $ | 464,528 | ||||||
Other_Expense_Net_Tables
Other Expense, Net (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Components of Other Expense Net | ' | ||||||||||||||||
The significant components of other expense, net, are as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 29, | December 23, | December 29, | December 23, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Interest income | $ | 2,828 | $ | 4,376 | $ | 5,551 | $ | 8,176 | |||||||||
Interest expense | (15,297 | ) | (14,975 | ) | (30,599 | ) | (30,119 | ) | |||||||||
Gains on deferred compensation plan related assets | 5,360 | 1,234 | 5,397 | 3,975 | |||||||||||||
Foreign exchange gains (losses) | 125 | (3,274 | ) | (97 | ) | (3,642 | ) | ||||||||||
Other, net | 3,147 | (751 | ) | 1,649 | (1,718 | ) | |||||||||||
$ | (3,837 | ) | $ | (13,390 | ) | $ | (18,099 | ) | $ | (23,328 | ) | ||||||
Net_Income_Per_Share_Tables
Net Income Per Share (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Schedule of Numerators and Denominators of Basic and Diluted Computations for Net Income Per Share | ' | ||||||||||||||||
The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 29, | December 23, | December 29, | December 23, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 148,992 | $ | 6,408 | $ | 234,498 | $ | 9,176 | |||||||||
Denominator: | |||||||||||||||||
Basic average shares outstanding | 162,305 | 170,699 | 162,603 | 175,314 | |||||||||||||
Effect of potential dilutive securities: | |||||||||||||||||
Employee stock plans | 2,847 | 2,328 | 2,869 | 2,176 | |||||||||||||
Convertible notes | 6,605 | — | 6,120 | — | |||||||||||||
Diluted average shares outstanding | 171,757 | 173,027 | 171,592 | 177,490 | |||||||||||||
Net income per share - basic | $ | 0.92 | $ | 0.04 | $ | 1.44 | $ | 0.05 | |||||||||
Net income per share - diluted | $ | 0.87 | $ | 0.04 | $ | 1.37 | $ | 0.05 | |||||||||
Schedule of Potentially Dilutive Securities Excluded from EPS Calculations | ' | ||||||||||||||||
The following potentially dilutive securities were excluded: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 29, | December 23, | December 29, | December 23, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Number of potential dilutive securities excluded | — | 1,543 | 296 | 1,551 | |||||||||||||
Accumulated_Other_Comprehensiv1
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended | ||||||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||||||
Components of Accumulated Other Comprehensive Income or Loss | ' | ||||||||||||||||||||
The components of accumulated other comprehensive income (loss), net of tax at the end of the period, as well as the activity during the period, were as follows: | |||||||||||||||||||||
Accumulated foreign | Accumulated unrealized | Accumulated unrealized | Accumulated unrealized | Total | |||||||||||||||||
currency translation | holding gain (loss) on | holding gain (loss) on | components of defined | ||||||||||||||||||
adjustment | cash flow hedges | available-for-sale | benefit plans | ||||||||||||||||||
investments | |||||||||||||||||||||
(in thousands) | |||||||||||||||||||||
Balance as of June 30, 2013 | $ | (17,178 | ) | $ | 2,822 | $ | (15 | ) | $ | (14,322 | ) | $ | (28,693 | ) | |||||||
Other comprehensive income before reclassifications | 9,843 | 8,835 | 1,073 | 385 | 20,136 | ||||||||||||||||
Gains reclassified from accumulated other comprehensive income to net income | — | (6,819 | ) (1) | (145 | ) (2) | — | (6,964 | ) | |||||||||||||
Net current-period other comprehensive income | $ | 9,843 | $ | 2,016 | $ | 928 | $ | 385 | $ | 13,172 | |||||||||||
Balance as of December 29, 2013 | $ | (7,335 | ) | $ | 4,838 | $ | 913 | $ | (13,937 | ) | $ | (15,521 | ) | ||||||||
-1 | Amount of after tax gain reclassified from accumulated other comprehensive income into net income located in revenue: $5,484, cost of goods sold: $953 and selling, general and administrative expenses: $382. | ||||||||||||||||||||
-2 | Amount of after tax gain reclassified from accumulated other comprehensive income into net income located in other expense, net |
Long_Term_Debt_Tables
Long Term Debt (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Schedule of Carrying Value of Convertible Senior Notes and Other Long-Term Debt | ' | ||||||||||||||||
The following table reflects the carrying value of the Company’s convertible senior notes and other long-term debt as of December 29, 2013 and June 30, 2013: | |||||||||||||||||
December 29, | June 30, | ||||||||||||||||
2013 | 2013 | ||||||||||||||||
(in millions) | |||||||||||||||||
0.50% Notes due 2016 | $ | 450 | $ | 450 | |||||||||||||
Less: Unamortized interest discount | (38.2 | ) | (45.7 | ) | |||||||||||||
Net carrying amount of 0.50% Notes due 2016 | 411.8 | 404.3 | |||||||||||||||
1.25% Notes due 2018 | 450 | 450 | |||||||||||||||
Less: Unamortized interest discount | (69.9 | ) | (76.9 | ) | |||||||||||||
Net carrying amount of 1.25% Notes due 2018 | 380.1 | 373.1 | |||||||||||||||
2.625% Notes due 2041 | 699.9 | 699.9 | |||||||||||||||
Less: Unamortized interest discount | (185.1 | ) | (186.9 | ) | |||||||||||||
Net carrying amount of 2.625% Notes due 2041 | 514.8 | 513 | |||||||||||||||
Total debt | 1,306.70 | 1,290.40 | |||||||||||||||
Less: current portion of debt | (514.8 | ) | (513.0 | ) | |||||||||||||
Long-term debt | $ | 791.9 | $ | 777.4 | |||||||||||||
Schedule of Recognized Interest Cost Relating to Both Contractual Interest Coupon and Amortization of Discount on Liability Component of Notes | ' | ||||||||||||||||
The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the discount on the liability component of the Notes during the three and six months ended December 29, 2013 and December 23, 2012. | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 29, | December 23, | December 29, | December 23, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in millions) | |||||||||||||||||
Contractual interest coupon | $ | 6.6 | $ | 6.6 | 13.1 | 13.1 | |||||||||||
Amortization of interest discount | 8.2 | 7.8 | 16.3 | 15.6 | |||||||||||||
Amortization of issuance costs | 0.6 | 0.6 | 1.2 | 1.2 | |||||||||||||
Total interest cost recognized | $ | 15.4 | $ | 15 | $ | 30.6 | $ | 29.9 | |||||||||
Commitments_Tables
Commitments (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Schedule of Changes in Product Warranty Reserves | ' | ||||||||||||||||
Changes in the Company’s product warranty reserves were as follows: | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||
December 29, | December 23, | December 29, | December 23, | ||||||||||||||
2013 | 2012 | 2013 | 2012 | ||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of period | $ | 59,871 | $ | 67,836 | $ | 58,078 | $ | 70,161 | |||||||||
Warranties issued during the period | 25,546 | 14,856 | 42,299 | 34,548 | |||||||||||||
Settlements made during the period | (18,967 | ) | (21,484 | ) | (33,272 | ) | (45,859 | ) | |||||||||
Changes in liability for pre-existing warranties | 963 | 1,714 | 308 | 4,072 | |||||||||||||
Balance at end of period | $ | 67,413 | $ | 62,922 | $ | 67,413 | $ | 62,922 | |||||||||
Stock_Repurchase_Program_Table
Stock Repurchase Program (Tables) | 6 Months Ended | ||||||||||||||||
Dec. 29, 2013 | |||||||||||||||||
Schedule of Repurchases under Repurchase Program | ' | ||||||||||||||||
Repurchases under the repurchase program were as follows during the periods indicated: | |||||||||||||||||
Period | Total Number of | Total Cost of | Average Price Paid | Amount Available | |||||||||||||
Shares Repurchased | Repurchase | Per Share* | Under Repurchase | ||||||||||||||
Program | |||||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Available balance as of June 30, 2013 | $ | 250,000 | |||||||||||||||
Quarter ended September 29, 2013 | 1,935 | $ | 96,462 | $ | 48.06 | $ | 153,538 | ||||||||||
Quarter ended December 29, 2013 | 762 | $ | 39,800 | $ | 52.2 | $ | 113,738 | ||||||||||
* | Average price paid per share excludes accelerated share repurchases for which cost was incurred during the September 2013 quarter, but that did not settle until the December 2013 quarter. See Collared Accelerated Share Repurchases section below for details regarding average price associated with these transactions. |
Equity_Based_Compensation_Plan
Equity Based Compensation Plans - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, except Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 23, 2012 | Dec. 29, 2013 | Dec. 23, 2012 |
Y | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options and restricted stock units vesting period, years | ' | ' | 3 | ' |
The total intrinsic value of options exercised | $8.10 | $4.10 | $22.20 | $4.70 |
Unrecognized compensation expense, stock option | 4.2 | ' | 4.2 | ' |
Novellus Systems Incorporated | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options and restricted stock units vesting period, years | ' | ' | 4 | ' |
Existing Stock Plans | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Options and RSUs issued and outstanding under stock plans | 5,545,356 | ' | 5,545,356 | ' |
Shares available for future issuance under stock plan | 13,247,547 | ' | 13,247,547 | ' |
Stock Options | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted average remaining period for recognition, years | '1 year 1 month 6 days | ' | '1 year 1 month 6 days | ' |
Restricted Stock Units (RSUs) | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted average remaining period for recognition, years | ' | ' | '1 year 6 months | ' |
Unrecognized compensation expense | 90.4 | ' | 90.4 | ' |
Employee Stock Purchase Plan | ' | ' | ' | ' |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Weighted average remaining period for recognition, years | ' | ' | '8 months | ' |
Unrecognized compensation expense | $8.60 | ' | $8.60 | ' |
Number of shares available for purchase under ESPP | 9,073,882 | ' | 9,073,882 | ' |
ESPP purchase price per share as percentage of fair market value | ' | ' | 85.00% | ' |
Recognized_Equity_Based_Compen
Recognized Equity Based Compensation Expenses and Related Income Tax Benefit (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Dec. 29, 2013 | Dec. 23, 2012 | Dec. 29, 2013 | Dec. 23, 2012 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' | ' | ' | ' |
Equity-based compensation expense | $23 | $24 | $46.30 | $48.40 |
Income tax benefit related to equity-based compensation expense | $3.70 | $3.30 | $7.60 | $9 |
Summary_of_Stock_Option_Activi
Summary of Stock Option Activity (Detail) (USD $) | 6 Months Ended | 12 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Jun. 30, 2013 |
Options | ' | ' |
Beginning balance | 2,571 | ' |
Exercised | -842 | ' |
Forfeited or expired | -1 | ' |
Ending balance | 1,728 | 2,571 |
Exercisable | 1,270 | ' |
Weighted-Average Exercise Price | ' | ' |
Beginning balance | $26.87 | ' |
Exercised | $24.98 | ' |
Forfeited or expired | $29.71 | ' |
Ending balance | $27.79 | $26.87 |
Exercisable | $24.17 | ' |
Weighted-Average Remaining Contractual Term (in years) | ' | ' |
Outstanding at June 30, 2013 | '4 years 10 months 17 days | '4 years 5 months 23 days |
Outstanding at December 29, 2013 | '4 years 10 months 17 days | '4 years 5 months 23 days |
Exercisable at December 29, 2013 | '4 years 3 months 18 days | ' |
Aggregate Intrinsic Value | ' | ' |
Outstanding at December 29, 2013 | $45,607 | ' |
Exercisable at December 29, 2013 | $38,118 | ' |
Summary_of_Restricted_Stock_Un
Summary of Restricted Stock Units (Detail) (Restricted Stock Units (RSUs), USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 |
Restricted Stock Units (RSUs) | ' |
Unvested Restricted Stock Units | ' |
Beginning balance | 4,842 |
Granted | 127 |
Vested | -1,014 |
Forfeited | -138 |
Ending balance | 3,817 |
Unvested Restricted Stock Units Weighted-Average Grant Date Fair Value | ' |
Beginning of Period | $39.32 |
Granted | $51.97 |
Vested | $39.45 |
Forfeited | $39.49 |
Ending of Period | $39.70 |
Schedule_of_Stock_Options_Weig
Schedule of Stock Options Weighted Average Assumptions (Detail) | 6 Months Ended |
Dec. 29, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ' |
Expected term (years) | '7 months 28 days |
Expected stock price volatility | 31.43% |
Risk-free interest rate | 0.11% |
Schedule_of_Financial_Assets_a
Schedule of Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) (USD $) | Dec. 29, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments [Line Items] | ' | ' |
Fair value | $1,389,735 | $1,334,746 |
Derivative Assets | 5,618 | 4,929 |
Total Assets | 2,312,756 | 2,255,183 |
Derivative Liabilities | 293 | 1,815 |
Money Market Funds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 730,194 | 725,311 |
Municipal Notes And Bonds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 252,261 | 268,746 |
US Treasury and Agencies | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 175,673 | 155,293 |
Government-Sponsored Enterprises | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 38,399 | 54,805 |
Foreign Government Debt Securities | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 29,708 | 24,972 |
Corporate Notes And Bonds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 928,123 | 860,492 |
Mortgage Backed Securities - Residential | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 26,941 | 27,365 |
Mortgage Backed Securities - Commercial | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 103,515 | 107,958 |
Publicly Traded Equity Securities | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | ' | 7,096 |
Total Short Term Investments | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 2,284,814 | 2,224,942 |
Mutual Funds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 22,324 | 18,216 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 175,673 | 155,293 |
Total Assets | 1,093,076 | 1,070,801 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Money Market Funds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 730,194 | 725,311 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | US Treasury and Agencies | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 175,673 | 155,293 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate Notes And Bonds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 164,885 | 164,885 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Publicly Traded Equity Securities | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | ' | 7,096 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Total Short Term Investments | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 1,070,752 | 1,045,489 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual Funds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 22,324 | 18,216 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 1,214,062 | 1,179,453 |
Derivative Assets | 5,618 | 4,929 |
Total Assets | 1,219,680 | 1,184,382 |
Derivative Liabilities | 244 | 1,620 |
Significant Other Observable Inputs (Level 2) | Municipal Notes And Bonds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 252,261 | 268,746 |
Significant Other Observable Inputs (Level 2) | Government-Sponsored Enterprises | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 38,399 | 54,805 |
Significant Other Observable Inputs (Level 2) | Foreign Government Debt Securities | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 29,708 | 24,972 |
Significant Other Observable Inputs (Level 2) | Corporate Notes And Bonds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 763,238 | 695,607 |
Significant Other Observable Inputs (Level 2) | Mortgage Backed Securities - Residential | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 26,941 | 27,365 |
Significant Other Observable Inputs (Level 2) | Mortgage Backed Securities - Commercial | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 103,515 | 107,958 |
Significant Other Observable Inputs (Level 2) | Total Short Term Investments | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Fair value | 1,214,062 | 1,179,453 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Derivative Liabilities | $49 | $195 |
Schedule_of_Assets_and_Liabili
Schedule of Assets and Liabilities Measured at Fair Value as Reported in Consolidated Balance Sheet (Detail) (USD $) | Dec. 29, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash Equivalents | $730,194 | $725,311 |
Short-Term Investments | 1,389,735 | 1,334,746 |
Restricted Cash and Investments | 164,885 | 164,885 |
Prepaid Expenses and Other Current Assets | 5,618 | 4,929 |
Other Assets | 22,324 | 25,312 |
Total Assets | 2,312,756 | 2,255,183 |
Accrued Expenses and Other Current Liabilities | 244 | 1,620 |
Other Non-current Liabilities | 49 | 195 |
Total Liabilities | 293 | 1,815 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Cash Equivalents | 730,194 | 725,311 |
Short-Term Investments | 175,673 | 155,293 |
Restricted Cash and Investments | 164,885 | 164,885 |
Other Assets | 22,324 | 25,312 |
Total Assets | 1,093,076 | 1,070,801 |
Significant Other Observable Inputs (Level 2) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Short-Term Investments | 1,214,062 | 1,179,453 |
Prepaid Expenses and Other Current Assets | 5,618 | 4,929 |
Total Assets | 1,219,680 | 1,184,382 |
Accrued Expenses and Other Current Liabilities | 244 | 1,620 |
Total Liabilities | 244 | 1,620 |
Significant Unobservable Inputs (Level 3) | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Other Non-current Liabilities | 49 | 195 |
Total Liabilities | $49 | $195 |
Summary_of_Investments_Detail
Summary of Investments (Detail) (USD $) | Dec. 29, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Financial Instruments [Line Items] | ' | ' |
Fair Value | $1,389,735 | $1,334,746 |
Cash | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 403,871 | 438,813 |
Fair Value | 403,871 | 438,813 |
Fixed Income Money Market Funds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 730,194 | 725,311 |
Fair Value | 730,194 | 725,311 |
Municipal Notes And Bonds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 251,397 | 268,390 |
Unrealized Gain | 911 | 805 |
Unrealized (Loss) | -47 | -449 |
Fair Value | 252,261 | 268,746 |
US Treasury and Agencies | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 175,810 | 155,648 |
Unrealized Gain | 29 | 18 |
Unrealized (Loss) | -166 | -373 |
Fair Value | 175,673 | 155,293 |
Government-Sponsored Enterprises | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 38,363 | 54,835 |
Unrealized Gain | 53 | 65 |
Unrealized (Loss) | -17 | -95 |
Fair Value | 38,399 | 54,805 |
Foreign Governments Bonds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 29,712 | 24,950 |
Unrealized Gain | 59 | 47 |
Unrealized (Loss) | -63 | -25 |
Fair Value | 29,708 | 24,972 |
Corporate Notes And Bonds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 926,954 | 861,109 |
Unrealized Gain | 1,843 | 1,328 |
Unrealized (Loss) | -674 | -1,945 |
Fair Value | 928,123 | 860,492 |
Mortgage Backed Securities - Residential | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 27,240 | 27,618 |
Unrealized Gain | 22 | 29 |
Unrealized (Loss) | -321 | -282 |
Fair Value | 26,941 | 27,365 |
Mortgage Backed Securities - Commercial | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 103,828 | 108,204 |
Unrealized Gain | 242 | 426 |
Unrealized (Loss) | -555 | -672 |
Fair Value | 103,515 | 107,958 |
Total Cash And Short Term Investments | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 2,687,369 | 2,664,878 |
Unrealized Gain | 3,159 | 2,718 |
Unrealized (Loss) | -1,843 | -3,841 |
Fair Value | 2,688,685 | 2,663,755 |
Publicly Traded Equity Securities | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | ' | 5,610 |
Unrealized Gain | ' | 1,486 |
Fair Value | ' | 7,096 |
Private Equity Securities | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | ' | 5,000 |
Fair Value | ' | 5,000 |
Mutual Funds | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 19,575 | 16,611 |
Unrealized Gain | 2,749 | 1,619 |
Unrealized (Loss) | ' | -14 |
Fair Value | 22,324 | 18,216 |
Total Financial Instruments | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 2,706,944 | 2,692,099 |
Unrealized Gain | 5,908 | 5,823 |
Unrealized (Loss) | -1,843 | -3,855 |
Fair Value | 2,711,009 | 2,694,067 |
Cash and Cash Equivalents | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 1,132,555 | 1,162,473 |
Fair Value | 1,132,555 | 1,162,473 |
Short-term Investments | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 1,388,419 | 1,335,868 |
Unrealized Gain | 3,159 | 2,718 |
Unrealized (Loss) | -1,843 | -3,841 |
Fair Value | 1,389,735 | 1,334,745 |
Restricted Cash And Investments | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 166,395 | 166,536 |
Fair Value | 166,395 | 166,536 |
Other Assets | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 19,575 | 27,222 |
Unrealized Gain | 2,749 | 3,105 |
Unrealized (Loss) | ' | -14 |
Fair Value | 22,324 | 30,313 |
Total | ' | ' |
Financial Instruments [Line Items] | ' | ' |
Cost | 2,706,944 | 2,692,099 |
Unrealized Gain | 5,908 | 5,823 |
Unrealized (Loss) | -1,843 | -3,855 |
Fair Value | $2,711,009 | $2,694,067 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
Dec. 29, 2013 | Dec. 23, 2012 | Dec. 29, 2013 | Dec. 23, 2012 | Jun. 30, 2013 | |
Financial Instruments [Line Items] | ' | ' | ' | ' | ' |
Gains realized from sales of investments | $200,000 | $900,000 | $400,000 | $1,100,000 | ' |
Losses realized from sales of investments | -500,000 | -300,000 | -1,000,000 | -700,000 | ' |
Investment classified as short term, maturity period | '1 year | ' | '1 year | ' | ' |
Gains (losses) accumulated in Other Comprehensive Income expects to reclassify from Other Comprehensive Income into earnings | 4,800,000 | ' | 4,800,000 | ' | ' |
Net derivative asset from master netting agreements | 5,618,000 | ' | 5,618,000 | ' | 4,929,000 |
Foreign Exchange Forward Contracts | Cash flow hedging | ' | ' | ' | ' | ' |
Financial Instruments [Line Items] | ' | ' | ' | ' | ' |
Potential effect of rights of set-off under master netting agreements for foreign exchange contracts assets | 200,000 | ' | 200,000 | ' | 1,600,000 |
Potential effect of rights of set-off under master netting agreements for foreign exchange contracts liabilities | 200,000 | ' | 200,000 | ' | 1,600,000 |
Net derivative asset from master netting agreements | $5,400,000 | ' | $5,400,000 | ' | $3,300,000 |
Maximum | ' | ' | ' | ' | ' |
Financial Instruments [Line Items] | ' | ' | ' | ' | ' |
Foreign currency forward contract, expiration period | ' | ' | '24 months | ' | ' |
Maximum | Majority of Contracts | ' | ' | ' | ' | ' |
Financial Instruments [Line Items] | ' | ' | ' | ' | ' |
Foreign currency forward contract, expiration period | ' | ' | '12 months | ' | ' |
Schedule_of_Fixed_Income_Secur
Schedule of Fixed Income Securities in Unrealized Loss Positions (Detail) (USD $) | Dec. 29, 2013 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | ' |
Unrealized Losses Less Than 12 Months - Fair Value | $526,537 |
Unrealized Losses Less Than 12 Months - Unrealized | -1,668 |
Unrealized Losses 12 Months or Greater - Fair Value | 12,515 |
Unrealized Losses 12 Months or Greater - Unrealized | -175 |
Total - Fair Value | 539,052 |
Total - Unrealized | -1,843 |
Municipal Notes And Bonds | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Unrealized Losses Less Than 12 Months - Fair Value | 22,814 |
Unrealized Losses Less Than 12 Months - Unrealized | -47 |
Total - Fair Value | 22,814 |
Total - Unrealized | -47 |
US Treasury and Agencies | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Unrealized Losses Less Than 12 Months - Fair Value | 127,143 |
Unrealized Losses Less Than 12 Months - Unrealized | -166 |
Total - Fair Value | 127,143 |
Total - Unrealized | -166 |
Government-Sponsored Enterprises | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Unrealized Losses Less Than 12 Months - Fair Value | 11,466 |
Unrealized Losses Less Than 12 Months - Unrealized | -17 |
Total - Fair Value | 11,466 |
Total - Unrealized | -17 |
Foreign Government Bonds | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Unrealized Losses Less Than 12 Months - Fair Value | 16,906 |
Unrealized Losses Less Than 12 Months - Unrealized | -63 |
Total - Fair Value | 16,906 |
Total - Unrealized | -63 |
Corporate Notes And Bonds | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Unrealized Losses Less Than 12 Months - Fair Value | 260,575 |
Unrealized Losses Less Than 12 Months - Unrealized | -643 |
Unrealized Losses 12 Months or Greater - Fair Value | 4,709 |
Unrealized Losses 12 Months or Greater - Unrealized | -31 |
Total - Fair Value | 265,284 |
Total - Unrealized | -674 |
Mortgage Backed Securities - Residential | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Unrealized Losses Less Than 12 Months - Fair Value | 21,186 |
Unrealized Losses Less Than 12 Months - Unrealized | -296 |
Unrealized Losses 12 Months or Greater - Fair Value | 2,050 |
Unrealized Losses 12 Months or Greater - Unrealized | -25 |
Total - Fair Value | 23,236 |
Total - Unrealized | -321 |
Mortgage Backed Securities - Commercial | ' |
Schedule of Available-for-sale Securities [Line Items] | ' |
Unrealized Losses Less Than 12 Months - Fair Value | 66,447 |
Unrealized Losses Less Than 12 Months - Unrealized | -436 |
Unrealized Losses 12 Months or Greater - Fair Value | 5,756 |
Unrealized Losses 12 Months or Greater - Unrealized | -119 |
Total - Fair Value | 72,203 |
Total - Unrealized | ($555) |
Schedule_of_Amortized_Cost_and
Schedule of Amortized Cost and Fair Value of Cash Equivalents, Short-Term Investments, and Restricted Cash and Investments with Contractual Maturities (Detail) (USD $) | Dec. 29, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Due in one year or less, Cost | $1,140,750 | ' |
Due in one year or less, Estimated Fair Value | 1,141,168 | ' |
Due after one year through five years, Cost | 986,845 | ' |
Due after one year through five years, Estimated Fair Value | 988,339 | ' |
Due in more than five years, Cost | 155,903 | ' |
Due in more than five years, Estimated Fair Value | 155,307 | ' |
Cost | 2,283,498 | ' |
Estimated Fair Value | 1,389,735 | 1,334,746 |
Total Short Term Investments | ' | ' |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ' | ' |
Estimated Fair Value | $2,284,814 | ' |
Schedule_of_Outstanding_Foreig
Schedule of Outstanding Foreign Currency Forward Contracts (Detail) (USD $) | Dec. 29, 2013 |
In Thousands, unless otherwise specified | |
Buy Contracts | ' |
Derivative [Line Items] | ' |
Derivatives Designated as Hedging Instruments | $64,771 |
Derivatives Not Designated as Hedging Instruments | 168,498 |
Buy Contracts | Euro | ' |
Derivative [Line Items] | ' |
Derivatives Designated as Hedging Instruments | 64,771 |
Buy Contracts | Korean Won | ' |
Derivative [Line Items] | ' |
Derivatives Not Designated as Hedging Instruments | 29,431 |
Buy Contracts | Taiwan Dollar | ' |
Derivative [Line Items] | ' |
Derivatives Not Designated as Hedging Instruments | 139,067 |
Sell Contracts | ' |
Derivative [Line Items] | ' |
Derivatives Designated as Hedging Instruments | 66,619 |
Derivatives Not Designated as Hedging Instruments | 131,610 |
Sell Contracts | Japanese Yen | ' |
Derivative [Line Items] | ' |
Derivatives Designated as Hedging Instruments | 66,619 |
Derivatives Not Designated as Hedging Instruments | 116,339 |
Sell Contracts | Euro | ' |
Derivative [Line Items] | ' |
Derivatives Not Designated as Hedging Instruments | $15,271 |
Schedule_of_Fair_Value_of_Deri
Schedule of Fair Value of Derivatives Instruments (Detail) (USD $) | Dec. 29, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Asset Derivatives, Fair Value | $5,618 | $4,929 |
Liability Derivatives, Fair Value | 244 | 1,620 |
Derivatives Designated As Hedging Instruments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Asset Derivatives, Fair Value | 5,585 | 4,858 |
Liability Derivatives, Fair Value | ' | 1,577 |
Derivatives Not Designated as Hedging Instruments | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' |
Asset Derivatives, Fair Value | 33 | 71 |
Liability Derivatives, Fair Value | $244 | $43 |
Schedule_of_Derivative_Instrum
Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations (Detail) (Foreign Exchange Forward Contracts, USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 23, 2012 | Dec. 29, 2013 | Dec. 23, 2012 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in AOCI (Effective Portion) | $4,994 | $2,347 | $10,068 | $1,628 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 3,437 | -363 | 7,787 | -2,289 |
Gain (Loss) Recognized (Excluded from Effectiveness Testing) | 52 | -26 | 98 | -39 |
Gain (Loss) Recognized | 5,012 | 5,667 | 11,040 | 286 |
Located in revenue | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in AOCI (Effective Portion) | 3,226 | 1,432 | 8,104 | -1,294 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 2,777 | -133 | 6,159 | 724 |
Gain (Loss) Recognized (Excluded from Effectiveness Testing) | 85 | 52 | 178 | 196 |
Located in cost of goods sold | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in AOCI (Effective Portion) | 1,262 | 644 | 1,410 | 1,895 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 467 | -239 | 1,118 | -2,263 |
Gain (Loss) Recognized (Excluded from Effectiveness Testing) | -24 | -52 | -56 | -163 |
Located in selling, general, and adminstrative | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized in AOCI (Effective Portion) | 506 | 271 | 554 | 1,027 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 193 | 9 | 510 | -750 |
Gain (Loss) Recognized (Excluded from Effectiveness Testing) | -9 | -26 | -24 | -80 |
Located in other income (expense) | ' | ' | ' | ' |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ' | ' | ' | ' |
Gain (Loss) Recognized (Excluded from Effectiveness Testing) | ' | ' | ' | $8 |
Schedule_of_Inventories_Detail
Schedule of Inventories (Detail) (USD $) | Dec. 29, 2013 | Jun. 30, 2013 | |
In Thousands, unless otherwise specified | |||
Inventory [Line Items] | ' | ' | |
Raw materials | $413,762 | $312,484 | |
Work-in-process | 94,967 | 101,530 | |
Finished goods | 152,843 | 145,303 | |
Total inventories | $661,572 | $559,317 | [1] |
[1] | Derived from audited financial statements |
Schedule_of_Property_and_Equip
Schedule of Property and Equipment Net (Detail) (USD $) | Dec. 29, 2013 | Jun. 30, 2013 | |
In Thousands, unless otherwise specified | |||
Property, Plant and Equipment [Line Items] | ' | ' | |
Manufacturing, engineering and office equipment | $561,623 | $521,047 | |
Computer equipment and software | 125,220 | 120,144 | |
Land | 56,528 | 65,360 | |
Buildings | 205,407 | 249,126 | |
Leasehold improvements | 80,501 | 76,225 | |
Furniture and fixtures | 24,830 | 21,110 | |
Property and equipment, gross | 1,054,109 | 1,053,012 | |
Less: accumulated depreciation and amortization | -507,916 | -449,102 | |
Property and equipment, net | $546,193 | $603,910 | [1] |
[1] | Derived from audited financial statements |
Property_and_Equipment_Net_Add
Property and Equipment, Net - Additional Information (Detail) (USD $) | Dec. 29, 2013 |
In Millions, unless otherwise specified | |
Property, Plant and Equipment [Line Items] | ' |
Assets held-for-sale | $69 |
Goodwill_and_Intangible_Assets2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||||
Dec. 29, 2013 | Dec. 23, 2012 | Dec. 29, 2013 | Dec. 23, 2012 | Jun. 30, 2013 | ||
Goodwill And Intangible Assets [Line Items] | ' | ' | ' | ' | ' | |
Goodwill | $1,457,320,000 | ' | $1,457,320,000 | ' | $1,452,196,000 | [1] |
Tax deductible goodwill | 61,000,000 | ' | 61,000,000 | ' | ' | |
Intangible asset amortization expense | $40,900,000 | $44,700,000 | $82,500,000 | $89,300,000 | ' | |
[1] | Derived from audited financial statements |
Schedule_of_Intangible_Assets_
Schedule of Intangible Assets (Detail) (USD $) | 6 Months Ended | 12 Months Ended | |
In Thousands, unless otherwise specified | Dec. 29, 2013 | Jun. 30, 2013 | |
Goodwill And Intangible Assets [Line Items] | ' | ' | |
Gross intangible assets subject to amortization | $1,349,444 | $1,355,583 | |
Total gross intangible assets | 1,378,544 | 1,384,683 | |
Accumulated Amortization | -382,798 | -310,338 | |
Net intangible assets subject to amortization | 966,646 | 1,045,245 | |
Intangible assets, net | 995,746 | 1,074,345 | [1] |
Intangible assets not subject to amortization | 29,100 | 29,100 | |
Intangible assets not subject to amortization | 29,100 | 29,100 | |
In Process Research And Development | ' | ' | |
Goodwill And Intangible Assets [Line Items] | ' | ' | |
Intangible assets not subject to amortization | 20,000 | 20,000 | |
Intangible assets not subject to amortization | 20,000 | 20,000 | |
Developed Technology Rights | ' | ' | |
Goodwill And Intangible Assets [Line Items] | ' | ' | |
Intangible assets not subject to amortization | 9,100 | 9,100 | |
Intangible assets not subject to amortization | 9,100 | 9,100 | |
Customer Relationships | ' | ' | |
Goodwill And Intangible Assets [Line Items] | ' | ' | |
Gross intangible assets subject to amortization | 624,902 | 624,686 | |
Accumulated Amortization | -139,270 | -103,519 | |
Net intangible assets subject to amortization | 485,632 | 521,167 | |
Weighted- Average Useful Life (years) | '9 years 4 days | '9 years 4 days | |
Existing Technology | ' | ' | |
Goodwill And Intangible Assets [Line Items] | ' | ' | |
Gross intangible assets subject to amortization | 657,273 | 653,628 | |
Accumulated Amortization | -185,093 | -139,894 | |
Net intangible assets subject to amortization | 472,180 | 513,734 | |
Weighted- Average Useful Life (years) | '6 years 11 months 16 days | '6 years 11 months 19 days | |
Patents | ' | ' | |
Goodwill And Intangible Assets [Line Items] | ' | ' | |
Gross intangible assets subject to amortization | 32,053 | 32,053 | |
Accumulated Amortization | -23,219 | -22,036 | |
Net intangible assets subject to amortization | 8,834 | 10,017 | |
Weighted- Average Useful Life (years) | '6 years 1 month 2 days | '6 years 1 month 2 days | |
Backlog | ' | ' | |
Goodwill And Intangible Assets [Line Items] | ' | ' | |
Gross intangible assets subject to amortization | ' | 10,000 | |
Accumulated Amortization | ' | -10,000 | |
Weighted- Average Useful Life (years) | ' | '1 year | |
Other Intangible Assets | ' | ' | |
Goodwill And Intangible Assets [Line Items] | ' | ' | |
Gross intangible assets subject to amortization | 35,216 | 35,216 | |
Accumulated Amortization | -35,216 | -34,889 | |
Net intangible assets subject to amortization | ' | $327 | |
Weighted- Average Useful Life (years) | '4 years 1 month 6 days | '4 years 1 month 6 days | |
[1] | Derived from audited financial statements |
Estimated_Future_Amortization_
Estimated Future Amortization Expense of Intangible Assets (Detail) (USD $) | Dec. 29, 2013 | Jun. 30, 2013 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ' | ' |
2014 (6 months) | $80,250 | ' |
2015 | 159,718 | ' |
2016 | 157,510 | ' |
2017 | 155,790 | ' |
2018 | 154,625 | ' |
Thereafter | 258,753 | ' |
Net intangible assets subject to amortization | $966,646 | $1,045,245 |
Schedule_of_Accrued_Expenses_a
Schedule of Accrued Expenses and Other Current Liabilities (Detail) (USD $) | Dec. 29, 2013 | Jun. 30, 2013 | |
In Thousands, unless otherwise specified | |||
Schedule of Accrued Liabilities [Line Items] | ' | ' | |
Accrued compensation | $308,628 | $254,795 | |
Warranty reserves | 66,338 | 52,252 | |
Income and other taxes payable | 38,716 | 39,420 | |
Other | 115,437 | 118,061 | |
Accrued expenses and other current liabilities | $529,119 | $464,528 | [1] |
[1] | Derived from audited financial statements |
Components_of_Other_Expense_Ne
Components of Other Expense Net (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 23, 2012 | Dec. 29, 2013 | Dec. 23, 2012 |
Component Of Other Expense Income Nonoperating [Line Items] | ' | ' | ' | ' |
Interest income | $2,828 | $4,376 | $5,551 | $8,176 |
Interest expense | -15,297 | -14,975 | -30,599 | -30,119 |
Gains on deferred compensation plan related assets | 5,360 | 1,234 | 5,397 | 3,975 |
Foreign exchange gains (losses) | 125 | -3,274 | -97 | -3,642 |
Other, net | 3,147 | -751 | 1,649 | -1,718 |
Other income (expense), net | ($3,837) | ($13,390) | ($18,099) | ($23,328) |
Income_Tax_Expense_Additional_
Income Tax Expense - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 23, 2012 | Dec. 29, 2013 | Dec. 23, 2012 |
Income Tax [Line Items] | ' | ' | ' | ' |
Income tax (benefit) expense | $11,645 | ($15,756) | $17,285 | ($11,750) |
Effective income tax rate | 7.20% | ' | 6.90% | ' |
U.S. federal statutory tax rate | 35.00% | ' | 35.00% | ' |
Schedule_of_Numerators_and_Den
Schedule of Numerators and Denominators of Basic and Diluted Computations for Net Income Per Share (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Dec. 23, 2012 | Dec. 29, 2013 | Dec. 23, 2012 |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ' | ' | ' | ' |
Net income | $148,992 | $6,408 | $234,498 | $9,176 |
Basic average shares outstanding | 162,305 | 170,699 | 162,603 | 175,314 |
Employee stock plans | 2,847 | 2,328 | 2,869 | 2,176 |
Convertible notes | 6,605 | ' | 6,120 | ' |
Diluted average shares outstanding | 171,757 | 173,027 | 171,592 | 177,490 |
Net income per share - basic | $0.92 | $0.04 | $1.44 | $0.05 |
Net income per share - diluted | $0.87 | $0.04 | $1.37 | $0.05 |
Schedule_of_Potentially_Diluti
Schedule of Potentially Dilutive Securities Excluded from EPS Calculations (Detail) | 3 Months Ended | 6 Months Ended | |
In Thousands, unless otherwise specified | Dec. 23, 2012 | Dec. 29, 2013 | Dec. 23, 2012 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ' | ' | ' |
Number of potential dilutive securities excluded | 1,543 | 296 | 1,551 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Income or Loss (Detail) (USD $) | 3 Months Ended | 6 Months Ended | |||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 23, 2012 | Dec. 29, 2013 | Dec. 23, 2012 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Balance as of June 30, 2013 | ' | ' | ($28,693) | [1] | ' |
Other comprehensive income before reclassifications | ' | ' | 20,136 | ' | |
Gains reclassified from accumulated other comprehensive income to net income | ' | ' | -6,964 | ' | |
Net current-period other comprehensive income | 7,834 | 9,423 | 13,172 | 9,334 | |
Balance as of December 29, 2013 | -15,521 | ' | -15,521 | ' | |
Accumulated Foreign Currency Translation Adjustment | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Balance as of June 30, 2013 | ' | ' | -17,178 | ' | |
Other comprehensive income before reclassifications | ' | ' | 9,843 | ' | |
Net current-period other comprehensive income | ' | ' | 9,843 | ' | |
Balance as of December 29, 2013 | -7,335 | ' | -7,335 | ' | |
Accumulated Unrealized Holding Gains (Losses) on Cash Flow Hedges | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Balance as of June 30, 2013 | ' | ' | 2,822 | ' | |
Other comprehensive income before reclassifications | ' | ' | 8,835 | ' | |
Gains reclassified from accumulated other comprehensive income to net income | ' | ' | -6,819 | [2] | ' |
Net current-period other comprehensive income | ' | ' | 2,016 | ' | |
Balance as of December 29, 2013 | 4,838 | ' | 4,838 | ' | |
Accumulated Unrealized Holding Gains (Losses) on Available-For-Sale Investments | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Balance as of June 30, 2013 | ' | ' | -15 | ' | |
Other comprehensive income before reclassifications | ' | ' | 1,073 | ' | |
Gains reclassified from accumulated other comprehensive income to net income | ' | ' | -145 | [3] | ' |
Net current-period other comprehensive income | ' | ' | 928 | ' | |
Balance as of December 29, 2013 | 913 | ' | 913 | ' | |
Accumulated Unrealized Components of Defined Benefit Plans | ' | ' | ' | ' | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' | ' | ' | ' | |
Balance as of June 30, 2013 | ' | ' | -14,322 | ' | |
Other comprehensive income before reclassifications | ' | ' | 385 | ' | |
Net current-period other comprehensive income | ' | ' | 385 | ' | |
Balance as of December 29, 2013 | ($13,937) | ' | ($13,937) | ' | |
[1] | Derived from audited financial statements | ||||
[2] | Amount of after tax gain reclassified from accumulated other comprehensive income into net income located in revenue: $5,484, cost of goods sold: $953 and selling, general and administrative expenses: $382. | ||||
[3] | Amount of after tax gain reclassified from accumulated other comprehensive income into net income located in other expense, net |
Components_of_Accumulated_Othe1
Components of Accumulated Other Comprehensive Income or Loss (Parenthetical) (Detail) (USD $) | 6 Months Ended |
In Thousands, unless otherwise specified | Dec. 29, 2013 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Reclassification from accumulated other comprehensive income | $6,964 |
Reclassified to Revenue | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Reclassification from accumulated other comprehensive income | 5,484 |
Reclassified to cost of goods sold | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Reclassification from accumulated other comprehensive income | 953 |
Reclassified to selling, general, and administrative | ' |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ' |
Reclassification from accumulated other comprehensive income | $382 |
Schedule_of_Carrying_Value_of_
Schedule of Carrying Value of Convertible Senior Notes and Other Long-Term Debt (Detail) (USD $) | Dec. 29, 2013 | Jun. 30, 2013 | Dec. 29, 2013 | Jun. 30, 2013 | 31-May-11 | Dec. 29, 2013 | Jun. 30, 2013 | 31-May-11 | Dec. 29, 2013 | Jun. 30, 2013 | Jun. 24, 2012 |
In Millions, unless otherwise specified | 0.50% Notes due 2016 | 0.50% Notes due 2016 | 0.50% Notes due 2016 | 1.25% Notes due 2018 | 1.25% Notes due 2018 | 1.25% Notes due 2018 | 2.625% Notes due 2041 | 2.625% Notes due 2041 | 2.625% Notes due 2041 | ||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes due | ' | ' | $450 | $450 | $450 | $450 | $450 | $450 | $699.90 | $699.90 | $700 |
Less: Unamortized interest discount | ' | ' | -38.2 | -45.7 | ' | -69.9 | -76.9 | ' | -185.1 | -186.9 | ' |
Net carrying amount of Notes | ' | ' | 411.8 | 404.3 | ' | 380.1 | 373.1 | ' | 514.8 | 513 | ' |
Total long-term debt | 1,306.70 | 1,290.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Less: current portion of debt | -514.8 | -513 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Long-term debt | $791.90 | $777.40 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Schedule_of_Carrying_Value_of_1
Schedule of Carrying Value of Convertible Senior Notes and Other Long-Term Debt (Parenthetical) (Detail) | 6 Months Ended | 6 Months Ended | 6 Months Ended | ||||||
Dec. 29, 2013 | Jun. 30, 2013 | 31-May-11 | Dec. 29, 2013 | Jun. 30, 2013 | 31-May-11 | Dec. 29, 2013 | Jun. 30, 2013 | Jun. 24, 2012 | |
0.50% Notes due 2016 | 0.50% Notes due 2016 | 0.50% Notes due 2016 | 1.25% Notes due 2018 | 1.25% Notes due 2018 | 1.25% Notes due 2018 | 2.625% Notes due 2041 | 2.625% Notes due 2041 | 2.625% Notes due 2041 | |
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Convertible notes interest rate percentage | 0.50% | 0.50% | 0.50% | 1.25% | 1.25% | 1.25% | 2.63% | 2.63% | 2.63% |
Debt instruments maturity date | '2016 | ' | ' | '2018 | ' | ' | '2041 | ' | ' |
Long_Term_Debt_Additional_Info
Long Term Debt - Additional Information (Detail) (USD $) | 1 Months Ended | 3 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | 1 Months Ended | 6 Months Ended | 12 Months Ended | ||||||||
Share data in Millions, except Per Share data, unless otherwise specified | 31-May-11 | Dec. 29, 2013 | Jun. 30, 2013 | 31-May-11 | Dec. 29, 2013 | Jun. 24, 2012 | Jun. 30, 2013 | Dec. 29, 2013 | 31-May-11 | Dec. 29, 2013 | Jun. 24, 2012 | Jun. 30, 2013 | Dec. 29, 2013 | Jun. 24, 2012 | 31-May-11 | Dec. 29, 2013 | Jun. 24, 2012 | Jun. 30, 2013 | Jun. 04, 2012 |
D | D | 0.50% Notes due 2016 | 0.50% Notes due 2016 | 0.50% Notes due 2016 | 0.50% Notes due 2016 | 0.50% Notes due 2016 | 1.25% Notes due 2018 | 1.25% Notes due 2018 | 1.25% Notes due 2018 | 1.25% Notes due 2018 | 1.25% Notes due 2018 | 2.625% Notes due 2041 | 2.625% Notes due 2041 | 2.625% Notes due 2041 | 2.625% Notes due 2041 | 2.625% Notes due 2041 | 2.625% Notes due 2041 | ||
Convertible Note Hedge | Convertible Note Hedge | ||||||||||||||||||
Debt Instrument [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Notes due | ' | ' | ' | $450,000,000 | $450,000,000 | ' | $450,000,000 | ' | $450,000,000 | $450,000,000 | ' | $450,000,000 | ' | $700,000,000 | ' | $699,900,000 | $700,000,000 | $699,900,000 | ' |
Convertible notes interest rate percentage | ' | ' | ' | 0.50% | 0.50% | ' | 0.50% | ' | 1.25% | 1.25% | ' | 1.25% | ' | 2.63% | ' | 2.63% | 2.63% | 2.63% | ' |
Initial conversion rate of common stock shares | ' | ' | ' | 15.8687 | ' | ' | ' | ' | 15.8687 | ' | ' | ' | ' | 28.4781 | ' | ' | ' | ' | ' |
Convertible Senior Notes conversion price | ' | ' | ' | $63.02 | $63.02 | ' | ' | ' | $63.02 | $63.02 | ' | ' | ' | $35.11 | ' | ' | $35.11 | ' | ' |
Principal amount of convertible debt conversion increments | ' | ' | ' | 1,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 1,000 | ' | ' | 1,000 | ' | ' |
Net proceeds from the sale of Convertible Senior Notes | 835,500,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Debt instruments maturity date | ' | ' | ' | ' | '2016 | ' | ' | ' | ' | '2018 | ' | ' | ' | ' | ' | '2041 | ' | ' | ' |
Maximum amount of contingent interest rate | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 2.10% | ' | ' | ' |
Initial carrying value of liability component of convertible notes | ' | ' | ' | 373,800,000 | ' | ' | ' | ' | 345,100,000 | ' | ' | ' | ' | ' | ' | ' | ' | ' | 509,500,000 |
Discount rate used to determine liability fair value | ' | ' | ' | 4.29% | 4.29% | 4.29% | ' | ' | 5.27% | 5.27% | 5.27% | ' | ' | ' | 4.28% | 4.28% | 4.28% | ' | ' |
Carrying value of equity components | ' | ' | ' | ' | 76,200,000 | ' | ' | ' | ' | 104,900,000 | 104,900,000 | ' | ' | ' | ' | 328,100,000 | ' | ' | ' |
Effective interest rates on the liability component | ' | ' | ' | ' | 4.29% | ' | ' | ' | ' | 5.27% | ' | ' | ' | ' | ' | 4.28% | ' | ' | ' |
Unamortized discount balance | ' | ' | ' | ' | 38,200,000 | ' | 45,700,000 | ' | ' | 69,900,000 | ' | 76,900,000 | ' | ' | ' | 185,100,000 | ' | 186,900,000 | ' |
Remaining life of bond discount, years | ' | ' | ' | ' | '2 years 4 months 24 days | ' | ' | ' | ' | '4 years 4 months 24 days | ' | ' | ' | ' | ' | '27 years 4 months 24 days | ' | ' | ' |
If-converted value in excess of aggregate principal amount | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | 380,000,000 | ' | ' | ' |
Warrant conversion price | ' | ' | ' | ' | 71.34 | ' | ' | 71.34 | ' | 76.1 | ' | ' | 76.1 | ' | ' | ' | ' | ' | ' |
Shares issued under warrants | ' | ' | ' | ' | 7.1 | ' | ' | ' | ' | 7.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Shares of common stock agreed to sell | ' | ' | ' | ' | 7.1 | ' | ' | ' | ' | 7.1 | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Period of time that common stock sale price for preceding quarter exceeds conversion price | ' | 20 | 20 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Number of consecutive trading days period required | ' | 30 | 30 | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Stock price percentage of conversion price | ' | 130.00% | 130.00% | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' |
Fair value of notes | ' | ' | ' | ' | $508,500,000 | ' | ' | ' | ' | $544,500,000 | ' | ' | ' | ' | ' | $1,161,900,000 | ' | ' | ' |
Schedule_of_Recognized_Interes
Schedule of Recognized Interest Cost Relating to Both Contractual Interest Coupon and Amortization of Discount on Liability Component of Notes (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 29, 2013 | Dec. 23, 2012 | Dec. 29, 2013 | Dec. 23, 2012 | |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Amortization of interest discount | ' | ' | $16,339,000 | $15,595,000 |
2016, 2018 and 2041 Senior Notes | ' | ' | ' | ' |
Debt Instrument [Line Items] | ' | ' | ' | ' |
Contractual interest coupon | 6,600,000 | 6,600,000 | 13,100,000 | 13,100,000 |
Amortization of interest discount | 8,200,000 | 7,800,000 | 16,300,000 | 15,600,000 |
Amortization of issuance costs | 600,000 | 600,000 | 1,200,000 | 1,200,000 |
Total interest cost recognized | $15,400,000 | $15,000,000 | $30,600,000 | $29,900,000 |
Commitments_Additional_Informa
Commitments - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Dec. 29, 2013 |
Y | |
D | |
Commitments [Line Items] | ' |
Number of operating leases | 2 |
Approximate Operating Lease term, years | 7 |
Operating Leases expiration year | '2015-01 |
Operating Lease purchase option notification period, days | 30 |
Operating Lease residual value of guarantee, maximum | $141.70 |
Maximum percentage of aggregate investment value guaranteed | 100.00% |
Standby Letters of Credit | ' |
Commitments [Line Items] | ' |
Guarantee Obligation Maximum Exposure | 21.6 |
Operating Leases | ' |
Commitments [Line Items] | ' |
Number of operating leases | 4 |
Guarantee Obligation Maximum Exposure | 164.9 |
Operating Leases | Amended | ' |
Commitments [Line Items] | ' |
Number of operating leases | 6 |
Approximate Operating Lease term, years | 7 |
Guarantee Obligation Maximum Exposure | 220 |
Operating Lease residual value of guarantee, maximum | 191.2 |
Maximum percentage of aggregate investment value guaranteed | 100.00% |
Operating Leases expiration date | 31-Dec-20 |
Estimated rent payment | 43.8 |
Other Noncurrent Liabilities | Guaranteed Lease Residual Values | ' |
Commitments [Line Items] | ' |
Restructuring charges | $26.70 |
Schedule_of_Changes_in_Product
Schedule of Changes in Product Warranty Reserves (Detail) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 29, 2013 | Dec. 23, 2012 | Dec. 29, 2013 | Dec. 23, 2012 |
Product Warranty Liability [Line Items] | ' | ' | ' | ' |
Balance at beginning of period | $59,871 | $67,836 | $58,078 | $70,161 |
Warranties issued during the period | 25,546 | 14,856 | 42,299 | 34,548 |
Settlements made during the period | -18,967 | -21,484 | -33,272 | -45,859 |
Changes in liability for pre-existing warranties | 963 | 1,714 | 308 | 4,072 |
Balance at end of period | $67,413 | $62,922 | $67,413 | $62,922 |
Restructuring_and_Impairments_
Restructuring and Impairments - Additional Information (Detail) (USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Dec. 29, 2013 |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring liability assumed in the Novellus acquisition | $11.40 |
Other Noncurrent Liabilities | Guaranteed Lease Residual Values | ' |
Restructuring Cost and Reserve [Line Items] | ' |
Restructuring charges | $26.70 |
Stock_Repurchase_Program_Addit
Stock Repurchase Program - Additional Information (Detail) (USD $) | 3 Months Ended | 6 Months Ended | 3 Months Ended | 1 Months Ended | ||||||||
Dec. 29, 2013 | Sep. 29, 2013 | Dec. 29, 2013 | Dec. 23, 2012 | Dec. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Sep. 29, 2013 | Oct. 28, 2013 | Apr. 30, 2013 | |||
Maximum | Share Repurchase Arrangements | Share Repurchase Arrangements | Share Repurchase Arrangements | Share Repurchase Program Final Settlement | Repurchase Of Equity | |||||||
Initial delivery | Subsequent delivery | Maximum | ||||||||||
Stock Repurchase Program [Line Items] | ' | ' | ' | ' | ' | ' | ' | ' | ' | ' | ||
Authorized repurchase of Company common stock | ' | ' | ' | ' | ' | ' | ' | ' | ' | $250,000,000 | ||
Net shares of settlements to cover tax withholding obligations | ' | ' | 204,000 | ' | ' | ' | ' | ' | ' | ' | ||
Amount paid for shares under net share settlements | ' | ' | 10,600,000 | ' | ' | ' | ' | ' | ' | ' | ||
Treasury stock purchases | ' | ' | 152,195,000 | 710,089,000 | ' | 75,000,000 | ' | ' | ' | ' | ||
Total Number of Shares Repurchased | 762,000 | 1,935,000 | ' | ' | 1,700,000 | ' | 1,200,000 | 300,000 | 0 | ' | ||
Treasury stock purchases, weighted average share price | $52.20 | [1] | $48.06 | [1] | ' | ' | ' | ' | ' | ' | $50.40 | ' |
Treasury stock, at cost | $75,000,000 | ' | $75,000,000 | ' | ' | ' | ' | ' | ' | ' | ||
[1] | Average price paid per share excludes accelerated share repurchases for which cost was incurred during the September 2013 quarter, but that did not settle until the December 2013 quarter. See Collared Accelerated Share Repurchases section below for details regarding average price associated with these transactions. |
Schedule_of_Repurchases_under_
Schedule of Repurchases under Repurchase Program (Detail) (USD $) | 3 Months Ended | 12 Months Ended | |||
In Thousands, except Per Share data, unless otherwise specified | Dec. 29, 2013 | Sep. 29, 2013 | Jun. 30, 2013 | ||
Stock Repurchase Program [Line Items] | ' | ' | ' | ||
Total Number of Shares Repurchased | 762 | 1,935 | ' | ||
Total Cost of Repurchase | $39,800 | $96,462 | ' | ||
Average Price Paid Per Share | $52.20 | [1] | $48.06 | [1] | ' |
Amount Available Under Repurchase Program | $113,738 | $153,538 | $250,000 | ||
[1] | Average price paid per share excludes accelerated share repurchases for which cost was incurred during the September 2013 quarter, but that did not settle until the December 2013 quarter. See Collared Accelerated Share Repurchases section below for details regarding average price associated with these transactions. |