Document_and_Entity_Informatio
Document and Entity Information | 9 Months Ended | |
Mar. 29, 2015 | Apr. 27, 2015 | |
Document Information [Line Items] | ||
Document Type | 10-Q | |
Amendment Flag | FALSE | |
Document Period End Date | 29-Mar-15 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q3 | |
Trading Symbol | LRCX | |
Entity Registrant Name | LAM RESEARCH CORP | |
Entity Central Index Key | 707549 | |
Current Fiscal Year End Date | -22 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 158,325,352 |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Mar. 29, 2015 | Jun. 29, 2014 | |
In Thousands, unless otherwise specified | |||
ASSETS | |||
Cash and cash equivalents | $1,635,636 | $1,452,677 | [1] |
Short-term investments | 2,313,495 | 1,612,967 | [1] |
Accounts receivable, less allowance for doubtful accounts of $4,943 as of March 29, 2015 and $4,962 as of June 29, 2014 | 1,046,800 | 800,616 | [1] |
Inventories | 919,679 | 740,503 | [1] |
Prepaid expenses and other current assets | 145,357 | 176,899 | [1] |
Total current assets | 6,060,967 | 4,783,662 | [1] |
Property and equipment, net | 579,824 | 543,496 | [1] |
Restricted cash and investments | 164,300 | 146,492 | [1] |
Goodwill | 1,466,319 | 1,466,225 | [1] |
Intangible assets, net | 776,658 | 894,078 | [1] |
Other assets | 190,473 | 159,353 | [1] |
Total assets | 9,238,541 | 7,993,306 | [1] |
LIABILITIES AND STOCKHOLDERS' EQUITY | |||
Trade accounts payable | 322,160 | 223,515 | [1] |
Accrued expenses and other current liabilities | 588,866 | 604,296 | [1] |
Deferred profit | 303,284 | 235,923 | [1] |
Current portion of long-term debt, convertible notes, and capital leases | 520,686 | 518,267 | [1] |
Total current liabilities | 1,734,996 | 1,582,001 | [1] |
Long-term debt, convertible notes, and capital leases | 1,831,094 | 817,202 | [1] |
Income taxes payable | 205,536 | 258,357 | [1] |
Other long-term liabilities | 189,291 | 122,662 | [1] |
Total liabilities | 3,960,917 | 2,780,222 | [1] |
Commitments and contingencies | [1] | ||
Senior convertible notes | 180,569 | 183,349 | [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 - 158,485 shares as of March 29, 2015 and 162,350 shares as of June 29, 2014 | 158 | 162 | [1] |
Additional paid-in capital | 5,380,309 | 5,239,567 | [1] |
Treasury stock, at cost; 98,849 shares as of March 29, 2015 and 92,867 shares as of June 29, 2014 | -4,233,394 | -3,757,076 | [1] |
Accumulated other comprehensive loss | -63,240 | -28,655 | [1] |
Retained earnings | 4,013,222 | 3,575,737 | [1] |
Total stockholders' equity | 5,097,055 | 5,029,735 | [1] |
Total liabilities and stockholders' equity | $9,238,541 | $7,993,306 | [1] |
[1] | Derived from audited financial statements |
Consolidated_Balance_Sheets_Pa
Consolidated Balance Sheets (Parenthetical) (USD $) | Mar. 29, 2015 | Jun. 29, 2014 | |
In Thousands, except Share data, unless otherwise specified | |||
Accounts receivable, allowance for doubtful accounts | $4,943 | $4,962 | [1] |
Preferred stock, par value | $0.00 | $0.00 | [1] |
Preferred stock, shares authorized | 5,000,000 | 5,000,000 | [1] |
Preferred stock, shares outstanding | 0 | 0 | [1] |
Common stock, par value | $0.00 | $0.00 | [1] |
Common stock, shares authorized | 400,000,000 | 400,000,000 | [1] |
Common stock, shares issued | 158,485,000 | 162,350,000 | [1] |
Common stock, shares outstanding | 158,485,000 | 162,350,000 | [1] |
Treasury stock, shares | 98,849,000 | 92,867,000 | [1] |
[1] | Derived from audited financial statements |
Condensed_Consolidated_Stateme
Condensed Consolidated Statements of Operations (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Revenue | $1,393,333 | $1,227,392 | $3,777,942 | $3,358,512 |
Cost of goods sold | 792,731 | 696,594 | 2,135,144 | 1,908,067 |
Gross margin | 600,602 | 530,798 | 1,642,798 | 1,450,445 |
Research and development | 217,865 | 185,978 | 603,567 | 531,022 |
Selling, general and administrative | 142,772 | 152,883 | 442,227 | 457,604 |
Total operating expenses | 360,637 | 338,861 | 1,045,794 | 988,626 |
Operating income | 239,965 | 191,937 | 597,004 | 461,819 |
Other expense, net | -11,389 | -9,855 | -26,836 | -27,954 |
Income before income taxes | 228,576 | 182,082 | 570,168 | 433,865 |
Income tax expense | 22,291 | 17,686 | 45,862 | 34,971 |
Net income | $206,285 | $164,396 | $524,306 | $398,894 |
Net income per share: | ||||
Basic | $1.30 | $1.01 | $3.28 | $2.46 |
Diluted | $1.16 | $0.96 | $2.96 | $2.33 |
Number of shares used in per share calculations: | ||||
Basic | 158,992 | 162,238 | 159,975 | 161,904 |
Diluted | 177,531 | 171,636 | 177,231 | 171,051 |
Cash dividend declared per common share | $0.18 | $0.54 |
Condensed_Consolidated_Stateme1
Condensed Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Net income | $206,285 | $164,396 | $524,306 | $398,894 |
Other comprehensive income, net of tax: | ||||
Foreign currency translation adjustment | -12,734 | -8,160 | -30,536 | 1,680 |
Cash flow hedges: | ||||
Net unrealized gains (losses) during the period | -7,417 | -205 | 485 | 8,632 |
Net losses reclassified into earnings | -1,218 | -3,248 | -3,942 | -10,066 |
Net change | -8,635 | -3,453 | -3,457 | -1,434 |
Available-for-sale investments: | ||||
Net unrealized (losses) gains during the period | 4,186 | -111 | -554 | 962 |
Net gains (losses) reclassified into earnings | -799 | 25 | -307 | -120 |
Net change | 3,387 | -86 | -861 | 842 |
Defined benefit plan, net change in unrealized component | 133 | 149 | 269 | 534 |
Net current-period other comprehensive (loss) income | -17,849 | -11,550 | -34,585 | 1,622 |
Comprehensive income | $188,436 | $152,846 | $489,721 | $400,516 |
Condensed_Consolidated_Stateme2
Condensed Consolidated Statements of Cash Flows (USD $) | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | |
CASH FLOWS FROM OPERATING ACTIVITIES: | |||
Net income | $524,306 | $398,894 | |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 207,743 | 221,139 | |
Deferred income taxes | 8,245 | 11,641 | |
Impairment of long-lived asset | 11,632 | ||
Equity-based compensation expense | 95,620 | 70,615 | |
Income tax benefit on equity-based compensation plans | 13,440 | ||
Excess tax benefit on equity-based compensation plans | -13,207 | ||
Gain on sale of business | -7,431 | ||
Amortization of convertible note discount | 25,867 | 24,652 | |
Other, net | 9,035 | 4,428 | |
Changes in operating assets and liabilities | -370,181 | -271,843 | |
Net cash provided by operating activities | 493,437 | 471,158 | |
CASH FLOWS FROM INVESTING ACTIVITIES: | |||
Capital expenditures | -135,132 | -103,739 | |
Cash paid for business acquisition | -1,137 | -18,388 | |
Purchases of available-for-sale securities | -2,156,852 | -823,932 | |
Sales and maturities of available-for-sale securities | 1,485,491 | 695,001 | |
Purchases of other investments | -2,500 | ||
Repayment of notes receivable | 3,978 | 10,000 | |
Proceeds from sale of assets | 21,635 | ||
Proceeds from sale of business | 41,212 | ||
(Uses of) transfer to restricted cash and investments | -700 | 28,722 | |
Net cash used for investing activities | -765,640 | -190,701 | |
CASH FLOWS FROM FINANCING ACTIVITIES: | |||
Principal payments on long-term debt and capital lease obligations | -900 | -919 | |
Proceeds from issuance of long-term debt, net issuance costs | 991,880 | ||
Excess tax benefit (expense) on equity-based compensation plans | 13,207 | -296 | |
Treasury stock purchases | -498,901 | -204,610 | |
Dividends paid | -87,345 | ||
Reissuances of treasury stock related to employee stock purchase plan | 31,853 | 28,329 | |
Proceeds from issuance of common stock | 16,235 | 26,134 | |
Net cash provided by (used for) financing activities | 466,029 | -151,362 | |
Effect of exchange rate changes on cash | -10,867 | 733 | |
Net increase in cash and cash equivalents | 182,959 | 129,828 | |
Cash and cash equivalents at beginning of period | 1,452,677 | [1] | 1,162,473 |
Cash and cash equivalents at end of period | $1,635,636 | $1,292,301 | |
[1] | Derived from audited financial statements |
BASIS_OF_PRESENTATION
BASIS OF PRESENTATION | 9 Months Ended |
Mar. 29, 2015 | |
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 29, 2014, which are included in the Company’s Annual Report on Form 10-K as of and for the year ended June 29, 2014 (the “2014 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 will end June 28, 2015 and includes 52 weeks. The quarters ended March 29, 2015 (the “March 2015 quarter”) and March 30, 2014 (the “March 2014 quarter”) included 13 weeks. |
RECENT_ACCOUNTING_PRONOUNCEMEN
RECENT ACCOUNTING PRONOUNCEMENTS | 9 Months Ended |
Mar. 29, 2015 | |
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. The Company adopted this standard during the fiscal year without significant impact on its financial position, results of operations, or cash flows. | |
In April 2014, the FASB released Accounting Standards Update 2014-8 “Presentation of Financial Statements and Property, Plant and Equipment: Reporting Discontinued Operations and Disclosure of Disposals of Components of an Entity.” The new standard re-defines discontinued operations and requires only those disposals of components of an entity, including classifications as held for sale, that represent a strategic shift that has, or will have, a major effect on an entity’s operations and financial results to be reported as discontinued operations. In addition, the new standard expands the disclosure requirements of discontinued operations. The Company adopted this standard during the fiscal year without significant impact on its financial position, results of operations, or cash flows. | |
In May 2014, the FASB released Accounting Standards Update 2014-9 “Revenue from Contracts with Customers” to supersede nearly all existing revenue recognition guidance under GAAP. The core principle of the standard is to recognize revenues when promised goods or services are transferred to customers in an amount that reflects the consideration that is expected to be received for those goods or services. The new standard defines a five step process to achieve this core principle and, in doing so, it is possible more judgment and estimates may be required within the revenue recognition process than required under existing GAAP including identifying performance obligations in the contract, estimating the amount of variable consideration to include in the transaction price and allocating the transaction price to each separate performance obligation. The Company is required to adopt this standard starting in the first quarter of fiscal year 2018 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within the standard; or (ii) retrospective with the cumulative effect of initially applying the standard recognized at the date of initial application and providing certain additional disclosures as defined per the standard. The Company has not yet selected a transition method, and is in the process of determining the impact that the new standard will have on its consolidated financial statements. | |
In April 2015, the FASB released Accounting Standards Update 2015-3 “Interest – Imputation of Interest.” The amendment requires that debt issuance costs related to recognized debt liability be presented in the balance sheet as a direct deduction from the carrying amount of that debt liability, consistent with debt discounts. The Company is required to adopt this standard starting in the first quarter of fiscal year 2017. The Company anticipates that upon adoption of the standard, approximately $3.0 million of unrecognized debt issuance costs will be reclassified from non-current assets into non-current liabilities in our consolidated balance sheet. |
EQUITYBASED_COMPENSATION_PLANS
EQUITY-BASED COMPENSATION PLANS | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
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 Common Stock at a set price. An RSU award is an agreement to issue a set number of shares of Common Stock at the time of vesting. The Company’s options and RSU awards typically vest over a period of three years or less, 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 | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
Equity-based compensation expense | $ | 32,948 | $ | 24,334 | $ | 95,620 | $ | 70,615 | |||||||||
Income tax benefit related to equity-based compensation expense | $ | 5,705 | $ | 4,112 | $ | 16,545 | $ | 11,710 | |||||||||
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, as amended and 2011 Stock Incentive Plan, as amended (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. A summary of stock plan transactions is as follows: | |||||||||||||||||
Options Outstanding | Restricted Stock Units Outstanding | ||||||||||||||||
Number of | Weighted- | Number of | Weighted-Average | ||||||||||||||
Shares | Average | Shares | Fair Market Value | ||||||||||||||
Exercise Price | at Grant | ||||||||||||||||
29-Jun-14 | 1,331,886 | $ | 32.2 | 5,635,469 | $ | 45.83 | |||||||||||
Granted | 76,659 | $ | 80.6 | 1,713,990 | $ | 79.74 | |||||||||||
Exercised | (513,913 | ) | $ | 31.61 | N/A | N/A | |||||||||||
Cancelled | (7,452 | ) | $ | 29.86 | (136,375 | ) | $ | 49.02 | |||||||||
Vested restricted stock | N/A | N/A | (1,603,237 | ) | $ | 41.23 | |||||||||||
29-Mar-15 | 887,180 | $ | 36.74 | 5,609,847 | $ | 57.43 | |||||||||||
As of March 29, 2015, there was $3.4 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 2.3 years. As of March 29, 2015, there was $228.3 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 2.2 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 Common Stock at a purchase price per share equal to the lower of 85% of the fair market value of 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. | |||||||||||||||||
Purchase rights under the 1999 ESPP were valued using the Black-Scholes option valuation model and the following weighted-average assumptions for the three and nine months ended March 29, 2015 and March 30, 2014: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Expected term (years) | 0.51 | 0.51 | 0.68 | 0.68 | |||||||||||||
Expected stock price volatility | 30.47 | % | 28.89 | % | 27.62 | % | 30.24 | % | |||||||||
Risk-free interest rate | 0.11 | % | 0.09 | % | 0.07 | % | 0.07 | % | |||||||||
Dividend Yield | 0.51 | % | N/A | 1.15 | % | N/A | |||||||||||
As of March 29, 2015, there was $6.2 million of unrecognized compensation expense related to the 1999 ESPP, which is expected to be recognized over a remaining period of approximately five months. |
FINANCIAL_INSTRUMENTS
FINANCIAL INSTRUMENTS | 9 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||||||||||||||||||
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 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 derivative instruments. The estimated fair value of cash, accounts receivable and accounts payable approximates their carrying value due to the short period of time to their maturities. The estimated fair values of capital lease obligations approximate their carrying value as the substantial majority of these obligations have interest rates that adjust to market rates on a periodic basis. Refer to Note 8 for additional information regarding the fair value of the Company’s convertible notes. | |||||||||||||||||||||||||||||||||
The following table sets forth the Company’s cash, cash equivalents, short-term investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of March 29, 2015 and June 29, 2014: | |||||||||||||||||||||||||||||||||
March 29, 2015 | |||||||||||||||||||||||||||||||||
(Reported Within) | |||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Cash and Cash | Short-Term | Restricted | Other | ||||||||||||||||||||||||||
Gain | (Loss) | Equivalents | Investments | Cash & | Assets | ||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Cash | $ | 426,726 | $ | — | $ | — | $ | 426,726 | $ | 420,195 | $ | — | $ | 6,531 | $ | — | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||||||
Time Deposit | 132,549 | — | — | 132,549 | — | — | 132,549 | — | |||||||||||||||||||||||||
Money Market Funds | 1,215,441 | — | — | 1,215,441 | 1,215,441 | — | — | — | |||||||||||||||||||||||||
US Treasury and Agencies | 324,199 | 398 | (42 | ) | 324,555 | — | 299,335 | 25,220 | — | ||||||||||||||||||||||||
Mutual Funds | 36,034 | 4,430 | (5 | ) | 40,459 | — | — | — | 40,459 | ||||||||||||||||||||||||
Level 1 Total | $ | 1,708,223 | $ | 4,828 | $ | (47 | ) | $ | 1,713,004 | $ | 1,215,441 | $ | 299,335 | $ | 157,769 | $ | 40,459 | ||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||||||
Municipal Notes and Bonds | 479,943 | 716 | (51 | ) | 480,608 | — | 480,608 | — | — | ||||||||||||||||||||||||
Government-Sponsored Enterprises | 77,613 | 27 | (38 | ) | 77,602 | — | 77,602 | — | — | ||||||||||||||||||||||||
Foreign Government Bonds | 56,892 | 72 | (39 | ) | 56,925 | — | 56,925 | — | — | ||||||||||||||||||||||||
Corporate Notes and Bonds | 1,228,757 | 1,550 | (973 | ) | 1,229,334 | — | 1,229,334 | — | — | ||||||||||||||||||||||||
Mortgage Backed Securities - Residential | 28,538 | 93 | (144 | ) | 28,487 | — | 28,487 | — | — | ||||||||||||||||||||||||
Mortgage Backed Securities - Commercial | 141,885 | 39 | (720 | ) | 141,204 | — | 141,204 | — | — | ||||||||||||||||||||||||
Level 2 Total | $ | 2,013,628 | $ | 2,497 | $ | (1,965 | ) | $ | 2,014,160 | $ | — | $ | 2,014,160 | $ | — | $ | — | ||||||||||||||||
Total | $ | 4,148,577 | $ | 7,325 | $ | (2,012 | ) | $ | 4,153,890 | $ | 1,635,636 | $ | 2,313,495 | $ | 164,300 | $ | 40,459 | ||||||||||||||||
June 29, 2014 | |||||||||||||||||||||||||||||||||
(Reported Within) | |||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Cash and Cash | Short-Term | Restricted | Other | ||||||||||||||||||||||||||
Gain | (Loss) | Equivalents | Investments | Cash & | Assets | ||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Cash | $ | 285,031 | $ | — | $ | — | $ | 285,031 | $ | 279,126 | $ | — | $ | 5,905 | — | ||||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||||||
Time Deposit | 132,549 | — | — | 132,549 | — | — | 132,549 | — | |||||||||||||||||||||||||
Money Market Funds | 1,168,261 | — | — | 1,168,261 | 1,168,261 | — | — | — | |||||||||||||||||||||||||
US Treasury and Agencies | 212,436 | 178 | (27 | ) | 212,587 | — | 204,549 | 8,038 | — | ||||||||||||||||||||||||
Mutual Funds | 18,784 | 2,974 | — | 21,758 | — | — | — | 21,758 | |||||||||||||||||||||||||
Level 1 Total | $ | 1,532,030 | $ | 3,152 | $ | (27 | ) | $ | 1,535,155 | $ | 1,168,261 | $ | 204,549 | $ | 140,587 | $ | 21,758 | ||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||||||
Municipal Notes and Bonds | 334,329 | 1,108 | (4 | ) | 335,433 | 5,290 | 330,143 | — | — | ||||||||||||||||||||||||
Government-Sponsored Enterprises | 27,666 | 41 | (15 | ) | 27,692 | — | 27,692 | — | — | ||||||||||||||||||||||||
Foreign Government Bonds | 35,438 | 57 | (28 | ) | 35,467 | — | 35,467 | — | — | ||||||||||||||||||||||||
Corporate Notes and Bonds | 874,540 | 2,034 | (335 | ) | 876,239 | — | 876,239 | — | — | ||||||||||||||||||||||||
Mortgage Backed Securities - Residential | 27,067 | 59 | (182 | ) | 26,944 | — | 26,944 | — | — | ||||||||||||||||||||||||
Mortgage Backed Securities - Commercial | 112,642 | 100 | (809 | ) | 111,933 | — | 111,933 | — | — | ||||||||||||||||||||||||
Level 2 Total | $ | 1,411,682 | $ | 3,399 | $ | (1,373 | ) | $ | 1,413,708 | $ | 5,290 | $ | 1,408,418 | $ | — | $ | — | ||||||||||||||||
Total | $ | 3,228,743 | $ | 6,551 | $ | (1,400 | ) | $ | 3,233,894 | $ | 1,452,677 | $ | 1,612,967 | $ | 146,492 | $ | 21,758 | ||||||||||||||||
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 or nine months ended March 29, 2015 or March 30, 2014. Additionally, gross realized gains and gross realized (losses) from sales of investments were approximately $1.0 million and $(0.4) million, respectively, in the three months ended March 29, 2015 and $0.4 million and $(0.7) million, respectively, in the three months ended March 30, 2014. Gross realized gains and gross realized (losses) from sales of investments were approximately $1.9 million and $(1.4) million, respectively, in the nine months ended March 29, 2015 and $0.8 million and $(1.7) million, respectively, in the nine months ended March 30, 2014. | |||||||||||||||||||||||||||||||||
The following is an analysis of the Company’s cash, cash equivalents, short-term investments, and restricted cash and investments in unrealized loss positions: | |||||||||||||||||||||||||||||||||
March 29, 2015 | |||||||||||||||||||||||||||||||||
Unrealized Losses | Unrealized Losses | ||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||
Fair Value | Gross | Fair | Gross | Fair Value | Gross | ||||||||||||||||||||||||||||
Unrealized | Value | Unrealized | Unrealized | ||||||||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Municipal Notes and Bonds | $ | 75,497 | $ | (51 | ) | $ | — | $ | — | $ | 75,497 | $ | (51 | ) | |||||||||||||||||||
US Treasury & Agencies | 189,671 | (42 | ) | — | — | 189,671 | (42 | ) | |||||||||||||||||||||||||
Retail Funds | 3,711 | (5 | ) | — | — | 3,711 | (5 | ) | |||||||||||||||||||||||||
Government-Sponsored Enterprises | 50,215 | (38 | ) | — | — | 50,215 | (38 | ) | |||||||||||||||||||||||||
Foreign Government Bonds | 29,721 | (39 | ) | — | — | 29,721 | (39 | ) | |||||||||||||||||||||||||
Corporate Notes and Bonds | 553,071 | (963 | ) | 2,709 | (10 | ) | 555,780 | (973 | ) | ||||||||||||||||||||||||
Mortgage Backed Securities - Residential | 13,130 | (52 | ) | 2,347 | (92 | ) | 15,477 | (144 | ) | ||||||||||||||||||||||||
Mortgage Backed Securities - Commercial | 100,667 | (433 | ) | 22,619 | (287 | ) | 123,286 | (720 | ) | ||||||||||||||||||||||||
$ | 1,015,683 | $ | (1,623 | ) | $ | 27,675 | $ | (389 | ) | $ | 1,043,358 | $ | (2,012 | ) | |||||||||||||||||||
The amortized cost and fair value of cash equivalents, short-term investments and restricted investments with contractual maturities are as follows as of March 29, 2015: | |||||||||||||||||||||||||||||||||
Cost | Estimated Fair | ||||||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,596,931 | $ | 1,597,205 | |||||||||||||||||||||||||||||
Due after one year through five years | 1,724,707 | 1,726,108 | |||||||||||||||||||||||||||||||
Due in more than five years | 364,179 | 363,392 | |||||||||||||||||||||||||||||||
$ | 3,685,817 | $ | 3,686,705 | ||||||||||||||||||||||||||||||
Management has the ability, if necessary, to liquidate its investments in order to meet the Company’s liquidity needs in the next 12 months. Accordingly, those investments with contractual maturities greater than one year from the date of purchase nonetheless are classified as short-term on the accompanying Consolidated Balance Sheets. | |||||||||||||||||||||||||||||||||
Derivative Instruments and Hedging | |||||||||||||||||||||||||||||||||
The Company carries derivative financial instruments (“derivatives”) on its Consolidated Balance Sheets at their fair values. The Company enters into derivative contracts with financial institutions with the primary objective of reducing volatility of earnings and cash flows related to foreign currency exchange rate and interest rate fluctuations. The counterparties to these derivative contracts are large global financial institutions that the Company believes are creditworthy, and therefore, it does not consider the risk of counterparty nonperformance to be material. | |||||||||||||||||||||||||||||||||
Cash Flow Hedges | |||||||||||||||||||||||||||||||||
The Company’s financial position is routinely subjected to market risk associated with foreign currency exchange rate fluctuations on non-U.S. dollar transactions or cash flows, primarily from Japanese yen-denominated revenues and euro-denominated 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. | |||||||||||||||||||||||||||||||||
In addition, during the nine months ended March 29, 2015, the Company entered into and settled a series of forward-starting interest rate swap agreements, with a total notional value of $375 million, to hedge against the variability of cash flows due to changes in the benchmark interest rate of fixed rate debt. These instruments were designated as cash flow hedges at inception and were settled in conjunction with the issuance of debt during the three months ended March 29, 2015. The effective portion of the contracts’ loss is included in accumulated other comprehensive (loss) and will amortize into income as the hedged item impacts earnings. | |||||||||||||||||||||||||||||||||
At inception and at each quarter end, hedges are tested prospectively and retrospectively for effectiveness using regression analysis. Changes in the fair value of 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 material gains or losses during the three and nine months ended March 29, 2015 or March 30, 2014 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. As of March 29, 2015, the Company had losses of $3.5 million accumulated in other comprehensive income, net of tax, including, $0.3 million related to foreign exchange which it expects to reclassify from other comprehensive income into earnings over the next 12 months and $3.2 million related to interest rate contracts which it expects to reclassify from other comprehensive income into earnings over the next 10 years. | |||||||||||||||||||||||||||||||||
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 March 29, 2015, 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 | $ | — | $ | 59,529 | $ | — | $ | 26,451 | |||||||||||||||||||||||||
Swiss Franc | — | — | — | 2,104 | |||||||||||||||||||||||||||||
Euro | 32,149 | — | 1,804 | — | |||||||||||||||||||||||||||||
Korean Won | — | — | 22,178 | — | |||||||||||||||||||||||||||||
Singapore Dollar | — | — | 4,671 | — | |||||||||||||||||||||||||||||
Taiwan Dollar | — | — | 33,239 | 11,162 | |||||||||||||||||||||||||||||
$ | 32,149 | $ | 59,529 | $ | 61,892 | $ | 39,717 | ||||||||||||||||||||||||||
The fair value of derivative instruments in the Company’s Consolidated Balance Sheets as of March 29, 2015 and June 29, 2014 were as follows: | |||||||||||||||||||||||||||||||||
March 29, 2015 | June 29, 2014 | ||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments (Level 2) | Fair Value of Derivative Instruments (Level 2) | ||||||||||||||||||||||||||||||||
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 | $ | 5,711 | Accrued liabilities | $ | 4,391 | Prepaid expense and other assets | $ | 483 | Accrued liabilities | $ | 805 | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expense and other assets | 54 | Accrued liabilities | 1,458 | Prepaid expense and other assets | 1,109 | Accrued liabilities | 118 | |||||||||||||||||||||||||
Total derivatives | $ | 5,765 | $ | 5,849 | $ | 1,592 | $ | 923 | |||||||||||||||||||||||||
Under the master netting agreements with the respective counterparties to the Company’s derivative contracts, subject to applicable requirements, the Company is allowed to net settle transactions of the same currency with a single net amount payable by one party to the other. However, the Company has elected to present the derivative assets and derivative liabilities on a gross basis on its balance sheet. As of March 29, 2015, the potential effect of netting the above derivative contracts would be an offset to assets and liabilities by $5.3 million, resulting in a net derivative asset of $0.5 million and net derivative liability of $0.6 million. As of June 29, 2014, the potential effect of netting the above derivative contracts was an offset to both assets and liabilities by $0.5 million, resulting in a net derivative asset of $1.1 million and net derivative liabilities of $0.5 million. The Company is not required to pledge, nor is the Company entitled to receive, cash collateral for these derivative transactions. | |||||||||||||||||||||||||||||||||
The effect of derivative instruments designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”) was as follows: | |||||||||||||||||||||||||||||||||
Three Months Ended March 29, 2015 | Nine Months Ended March 29, 2015 | ||||||||||||||||||||||||||||||||
Effective Portion | Ineffective | Effective Portion | Ineffective | ||||||||||||||||||||||||||||||
Portion and | Portion and | ||||||||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||||||
Excluded from | Excluded from | ||||||||||||||||||||||||||||||||
Effectiveness | Effectiveness | ||||||||||||||||||||||||||||||||
Testing | Testing | ||||||||||||||||||||||||||||||||
Location of Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||
Recognized in or Reclassified | Recognized | Reclassified | Recognized | Recognized | Reclassified | Recognized | |||||||||||||||||||||||||||
into Income | in AOCI | from AOCI | in Income | in AOCI | from AOCI | in Income | |||||||||||||||||||||||||||
into Income | into Income | ||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Revenue | $ | 1,981 | $ | 3,165 | $ | 68 | $ | 13,770 | $ | 8,601 | $ | 192 | ||||||||||||||||||||
Foreign Exchange Contracts | Cost of goods sold | (3,965 | ) | (984 | ) | (25 | ) | (7,252 | ) | (2,818 | ) | (50 | ) | ||||||||||||||||||||
Foreign Exchange Contracts | Selling, general, and administrative | (1,669 | ) | (1,039 | ) | (15 | ) | (3,090 | ) | (1,747 | ) | (26 | ) | ||||||||||||||||||||
Interest Rate Contracts | Other expense, net | (7,142 | ) | 19 | 231 | (5,071 | ) | 19 | 231 | ||||||||||||||||||||||||
$ | (10,795 | ) | $ | 1,161 | $ | 259 | $ | (1,643 | ) | $ | 4,055 | $ | 347 | ||||||||||||||||||||
Three Months Ended March 30, 2014 | Nine Months Ended March 30, 2014 | ||||||||||||||||||||||||||||||||
Effective Portion | Ineffective | Effective Portion | Ineffective | ||||||||||||||||||||||||||||||
Portion and | Portion and | ||||||||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||||||
Excluded from | Excluded from | ||||||||||||||||||||||||||||||||
Effectiveness | Effectiveness | ||||||||||||||||||||||||||||||||
Testing | Testing | ||||||||||||||||||||||||||||||||
Location of Gain (Loss) | Gain (Loss) | Gain | Gain (Loss) | Gain | Gain | Gain (Loss) | |||||||||||||||||||||||||||
Recognized in or Reclassified | Recognized | Reclassified | Recognized | Recognized | Reclassified | Recognized | |||||||||||||||||||||||||||
into Income | in AOCI | from AOCI | in Income | in AOCI | from AOCI | in Income | |||||||||||||||||||||||||||
into Income | into Income | ||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Revenue | $ | (621 | ) | $ | 2,787 | $ | 54 | $ | 7,483 | $ | 8,947 | $ | 232 | |||||||||||||||||||
Foreign Exchange Contracts | Cost of goods sold | 307 | 646 | (10 | ) | 1,717 | 1,764 | (66 | ) | ||||||||||||||||||||||||
Foreign Exchange Contracts | Selling, general, and administrative | 112 | 291 | (5 | ) | 667 | 800 | (29 | ) | ||||||||||||||||||||||||
$ | (202 | ) | $ | 3,724 | $ | 39 | $ | 9,867 | $ | 11,511 | $ | 137 | |||||||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||||||||||||||||||
March 29, 2015 | March 30, 2014 | March 29, 2015 | March 30, 2014 | ||||||||||||||||||||||||||||||
Location of Gain (Loss) | Loss Recognized | Loss Recognized | Gain Recognized | Gain Recognized | |||||||||||||||||||||||||||||
Recognized in Income | in Income | in Income | in Income | in Income | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Derivatives Not Designated as | |||||||||||||||||||||||||||||||||
Hedging Instruments: | |||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Other income | $ | (908 | ) | $ | (6,527 | ) | $ | 1,178 | $ | 4,512 | ||||||||||||||||||||||
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, Moody’s Investor Services, or Fitch Ratings. To ensure diversification and minimize concentration, the Company’s policy limits the amount of credit exposure with any one financial institution or commercial issuer. | |||||||||||||||||||||||||||||||||
The Company is exposed to credit losses in the event of nonperformance by counterparties on foreign currency forward hedge contracts, forward-starting interest rate swap agreements, and structured share repurchase arrangements. These counterparties are large global financial institutions and, to date, no such counterparty has failed to meet its financial obligations to the Company. | |||||||||||||||||||||||||||||||||
Credit risk evaluations, including trade references, bank references and Dun & Bradstreet ratings, are performed on all new customers and the Company monitors its customers’ financial condition and payment performance. In general, the Company does not require collateral on sales. |
INVENTORIES
INVENTORIES | 9 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
INVENTORIES | NOTE 5 — INVENTORIES | ||||||||
Inventories are stated at the lower of cost (first-in, first-out method) or market. System shipments to Japanese customers, for which title does not transfer until customer acceptance, are classified as finished goods inventory and carried at cost until title transfers. Inventories consist of the following: | |||||||||
March 29, | June 29, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Raw materials | $ | 578,304 | $ | 449,623 | |||||
Work-in-process | 136,274 | 126,564 | |||||||
Finished goods | 205,101 | 164,316 | |||||||
$ | 919,679 | $ | 740,503 | ||||||
GOODWILL_AND_INTANGIBLE_ASSETS
GOODWILL AND INTANGIBLE ASSETS | 9 Months Ended | ||||||||||||
Mar. 29, 2015 | |||||||||||||
GOODWILL AND INTANGIBLE ASSETS | NOTE 6 — GOODWILL AND INTANGIBLE ASSETS | ||||||||||||
Goodwill | |||||||||||||
The balance of Goodwill is approximately $1.5 billion as of March 29, 2015 and June 29, 2014. Of the $1.5 billion goodwill balance, $61 million is tax deductible and the remaining balance is not tax deductible due to purchase accounting and applicable foreign law. | |||||||||||||
Intangible Assets | |||||||||||||
The following table provides the Company’s intangible assets as of March 29, 2015: | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Amortization | |||||||||||||
(in thousands) | |||||||||||||
Customer relationships | $ | 615,377 | $ | (218,505 | ) | $ | 396,872 | ||||||
Existing technology | 654,385 | (291,705 | ) | 362,680 | |||||||||
Patents | 33,553 | (25,899 | ) | 7,654 | |||||||||
Other intangible assets | 35,691 | (35,339 | ) | 352 | |||||||||
Intangible assets subject to amortization | 1,339,006 | (571,448 | ) | 767,558 | |||||||||
Development rights | 9,100 | 9,100 | |||||||||||
Intangible assets not subject to amortization | 9,100 | 9,100 | |||||||||||
Total intangible assets | $ | 1,348,106 | $ | (571,448 | ) | $ | 776,658 | ||||||
The following table provides the Company’s intangible assets as of June 29, 2014: | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Amortization | |||||||||||||
(in thousands) | |||||||||||||
Customer relationships | $ | 615,618 | $ | (169,162 | ) | $ | 446,456 | ||||||
Existing technology | 643,922 | (224,246 | ) | 419,676 | |||||||||
Patents | 32,253 | (24,407 | ) | 7,846 | |||||||||
Other intangible assets | 35,270 | (35,270 | ) | — | |||||||||
Intangible assets subject to amortization | 1,327,063 | (453,085 | ) | 873,978 | |||||||||
In process research and development | 11,000 | 11,000 | |||||||||||
Development rights | 9,100 | 9,100 | |||||||||||
Intangible assets not subject to amortization | 20,100 | 20,100 | |||||||||||
Total intangible assets | $ | 1,347,163 | $ | (453,085 | ) | $ | 894,078 | ||||||
The Company recognized $39.6 million and $40.4 million in intangible asset amortization expense during the three months ended March 29, 2015 and March 30, 2014, respectively. The Company recognized $118.8 million and $122.9 million in intangible asset amortization expense during the nine months ended March 29, 2015 and March 30, 2014, respectively. | |||||||||||||
The estimated future amortization expense of intangible assets, excluding those with indefinite lives, as of March 29, 2015 was as follows: | |||||||||||||
Fiscal Year | Amount | ||||||||||||
2015 (3 Months) | $ | 39,235 | |||||||||||
2016 | 156,033 | ||||||||||||
2017 | 154,130 | ||||||||||||
2018 | 152,918 | ||||||||||||
2019 | 121,988 | ||||||||||||
Thereafter | 143,254 | ||||||||||||
$ | 767,558 | ||||||||||||
ACCRUED_EXPENSES_AND_OTHER_CUR
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | 9 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | NOTE 7 — ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES | ||||||||
Accrued expenses and other current liabilities consist of the following: | |||||||||
March 29, | June 29, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Accrued compensation | $ | 262,900 | $ | 311,054 | |||||
Warranty reserves | 87,395 | 68,324 | |||||||
Income and other taxes payable | 10,354 | 93,934 | |||||||
Trade date payable, short-term investments | 57,305 | — | |||||||
Dividend payable | 28,714 | 29,240 | |||||||
Other | 142,198 | 101,744 | |||||||
$ | 588,866 | $ | 604,296 | ||||||
LONGTERM_DEBT_AND_OTHER_BORROW
LONG-TERM DEBT AND OTHER BORROWINGS | 9 Months Ended | ||||||||||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||||||||||
LONG-TERM DEBT AND OTHER BORROWINGS | NOTE 8 — LONG-TERM DEBT AND OTHER BORROWINGS | ||||||||||||||||||||||||
Convertible Senior Notes | |||||||||||||||||||||||||
In May 2011, the Company issued and sold $450 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 million in aggregate principal amount of 1.25% Convertible Senior Notes due May 2018 (the “2018 Notes”) at par. 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 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 “Convertible Notes”). The Company pays cash interest at an annual rate of 2.625%, on a semi-annual basis on May 15 and November 15 of each year on the 2041 Notes. The 2041 Notes also have a contingent interest payment provision that may require the Company to pay additional interest, up to 0.60% per year, based on certain thresholds, beginning with the semi-annual interest payment on May 15, 2021, and upon the occurrence of certain events, as outlined in the indenture governing the 2041 Notes. | |||||||||||||||||||||||||
The Company separately accounts for the liability and equity components of the Convertible Notes. The initial debt components of the 2016 Notes, the 2018 Notes, and the 2041 Notes were valued based on the present value of the future cash flows using the Company’s borrowing rate at the date of the issuance or assumption for similar debt instruments without the conversion feature, which equals the effective interest rate on the liability component disclosed in the following table, respectively. | |||||||||||||||||||||||||
As of March 29, 2015 and June 29, 2014, the Convertible Notes consisted of the following: | |||||||||||||||||||||||||
March 29, 2015 | June 29, 2014 | ||||||||||||||||||||||||
2016 Notes | 2018 Notes | 2041 Notes(1) | 2016 Notes | 2018 Notes | 2041 Notes(1) | ||||||||||||||||||||
(in thousands, except years, percentages, conversion rate, and conversion price) | |||||||||||||||||||||||||
Carrying value, long-term | $ | 431,447 | $ | 398,502 | $ | — | $ | 419,561 | $ | 387,338 | $ | — | |||||||||||||
Carrying value, current portion | — | — | 519,366 | — | — | 516,586 | |||||||||||||||||||
Unamortized discount | 18,553 | 51,498 | 180,569 | 30,439 | 62,662 | 183,349 | |||||||||||||||||||
Principal amount | $ | 450,000 | $ | 450,000 | $ | 699,935 | $ | 450,000 | $ | 450,000 | $ | 699,935 | |||||||||||||
Remaining amortization period (years) | 1.1 | 3.1 | 26.1 | ||||||||||||||||||||||
Effective interest rate on liability component | 4.29 | % | 5.27 | % | 4.28 | % | |||||||||||||||||||
Carrying amount of equity component, net of tax | $ | 76,230 | $ | 104,895 | $ | 328,109 | |||||||||||||||||||
Fair Value of Notes (Level 2) | $ | 548,825 | $ | 586,350 | $ | 1,470,612 | |||||||||||||||||||
Conversion rate (shares of common stock per $1,000 principal amount of notes) | 16.0228 | 16.0228 | 28.7547 | ||||||||||||||||||||||
Conversion price (per share of common stock) | $ | 62.41 | $ | 62.41 | $ | 34.78 | |||||||||||||||||||
If-converted value in excess of par value | $ | 69,426 | $ | 69,426 | $ | 749,973 | |||||||||||||||||||
-1 | During the quarter-ended March 29, 2015 and June 29, 2014, the market value of the Company’s Common Stock was greater than or equal to 130% of the 2041 Note conversion price for 20 or more trading days of the 30 consecutive trading days preceding the quarter end. As a result, the 2041 Notes are convertible at the option of the holder. The carrying amount of the 2041 Notes was classified in current liabilities and the excess of the amount of cash payable, if converted, over the carrying amount of the 2041 Notes was classified as temporary equity on the Company’s Consolidated Balance Sheets as of March 29, 2015 and June 29, 2014. Upon closure of a conversion period, all 2041 Notes not converted will be reclassified back to noncurrent liabilities and the temporary equity will be reclassified to permanent equity. | ||||||||||||||||||||||||
Convertible Note Hedges and Warrants | |||||||||||||||||||||||||
Concurrent with the issuance of the 2016 Notes and 2018 Notes, the Company sold warrants. At expiration, the Company may, at its option, elect to settle the warrants on a net share basis. As of March 29, 2015, the warrants had not been exercised and remained outstanding. The exercise price is adjusted for certain corporate events, including dividends on the Company’s Common Stock. | |||||||||||||||||||||||||
In addition, counterparties agreed to sell to the Company shares of Common Stock equal to the number of shares issuable upon conversion of the 2016 Notes and 2018 Notes in full. The convertible note hedge transactions will be settled in net shares and will terminate upon the earlier of the maturity date or the first day none of the respective notes remain outstanding due to conversion or otherwise. Settlement of the convertible note hedge in net shares, based on the number of shares issued upon conversion of the 2016 and 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 2016 Notes and 2018 Notes. The exercise price is adjusted for certain corporate events, including dividends on the Company’s Common Stock. The following table presents the details of the warrants and convertible note hedge arrangements as of March 29, 2015: | |||||||||||||||||||||||||
2016 Notes | 2018 Notes | ||||||||||||||||||||||||
(shares in thousands) | |||||||||||||||||||||||||
Warrants: | |||||||||||||||||||||||||
Number of shares to be delivered upon exercise | 7,210 | 7,210 | |||||||||||||||||||||||
Exercise price | $ | 70.65 | $ | 75.37 | |||||||||||||||||||||
Expiration date range | August 15 - | August 15 - | |||||||||||||||||||||||
October 21, 2016 | October 23, 2018 | ||||||||||||||||||||||||
Convertible Note Hedge: | |||||||||||||||||||||||||
Number of shares available from counterparties | 7,210 | 7,210 | |||||||||||||||||||||||
Exercise price | $ | 62.41 | $ | 62.41 | |||||||||||||||||||||
Senior Notes | |||||||||||||||||||||||||
On March 12, 2015, the Company completed a public offering of $500 million aggregate principal amount of the Company’s Senior Notes due March 2020 (the “2020 Notes”) and $500 million aggregate principal amount of the Company’s Senior Notes due March 2025 (the “2025 Notes” and, together with the 2020 Notes, the “Senior Notes”). The Company will pay interest at an annual rate of 2.75% and 3.80%, respectively, on the 2020 Notes and 2025 Notes, on a semi-annual basis on March 15 and September 15 of each year, beginning September 15, 2015. | |||||||||||||||||||||||||
The Company may redeem the Senior Notes at a redemption price equal to 100% of the principal amount of such series (“par”), plus a “make whole” premium as described in the indenture in respect of the Senior Notes and accrued and unpaid interest before February 15, 2020, for the 2020 Notes and before December 15, 2024, for the 2025 Notes. The Company may redeem the Senior Notes at par, plus accrued and unpaid interest at any time on or after February 15, 2020 for the 2020 Notes and on or after December 24, 2024 for the 2025 Notes. In addition, upon the occurrence of certain events, as described in the indenture, the Company will be required to make an offer to repurchase the Senior Notes at a price equal to 101% of the principal amount of the Senior Notes, plus accrued and unpaid interest. | |||||||||||||||||||||||||
As of March 29, 2015 the Senior Notes consisted of the following: | |||||||||||||||||||||||||
March 29, 2015 | |||||||||||||||||||||||||
2020 Notes | 2025 Notes | ||||||||||||||||||||||||
(in thousands, except years) | |||||||||||||||||||||||||
Carrying value, long-term | $ | 497,200 | $ | 496,553 | |||||||||||||||||||||
Unamortized discount | 2,800 | 3,447 | |||||||||||||||||||||||
Principal amount | $ | 500,000 | $ | 500,000 | |||||||||||||||||||||
Remaining amortization period (years) | 5 | 10 | |||||||||||||||||||||||
Fair Value of Notes (Level 2) | $ | 503,160 | $ | 501,700 | |||||||||||||||||||||
Interest Cost | |||||||||||||||||||||||||
The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Senior Notes and the Convertible Notes during the three and nine months ended March 29, 2015 and March 30, 2014. | |||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Contractual interest coupon | $ | 8,200 | $ | 6,562 | $ | 21,324 | $ | 19,686 | |||||||||||||||||
Amortization of discount | 8,749 | 8,313 | 25,868 | 24,652 | |||||||||||||||||||||
Amortization of issuance costs | 603 | 591 | 1,784 | 1,772 | |||||||||||||||||||||
Amortization of interest rate contracts | 19 | — | 19 | — | |||||||||||||||||||||
Total interest cost recognized | $ | 17,571 | $ | 15,466 | $ | 48,995 | $ | 46,110 | |||||||||||||||||
Revolving Credit Facility | |||||||||||||||||||||||||
On March 12, 2014, the Company entered into a $300 million revolving unsecured credit facility with a syndicate of lenders. The facility matures on March 12, 2019. The facility includes an option, subject to certain requirements, for the Company to request an increase in the facility of up to an additional $200 million, for a potential total commitment of $500 million. Proceeds from the credit facility can be used for general corporate purposes. | |||||||||||||||||||||||||
Interest on amounts borrowed under the credit facility is, at the Company’s option, based on (i) a base rate, defined as the greatest of (a) prime rate, (b) Federal Funds rate plus 0.5%, or (c) one-month LIBOR plus 1.0%, plus a spread of 0.0% to 0.5%, or (ii) LIBOR plus a spread of 0.9% to 1.5%, in each case as the applicable spread is determined based on the rating of the Company’s non-credit enhanced, senior unsecured long-term debt. Principal and any accrued and unpaid interest is due and payable upon maturity. Additionally, the Company will pay the lenders a quarterly commitment fee that varies based on the Company’s rating described above. The credit facility contains certain restrictive covenants including maintaining a total consolidated indebtedness to consolidated capitalization ratio of no more than 0.5 to 1.0 and maintaining unrestricted or unencumbered cash and investments of no less than $1.0 billion. As of March 29, 2015, the Company had no borrowings outstanding under the credit facility and was in compliance with all financial covenants. |
OTHER_EXPENSE_NET
OTHER EXPENSE, NET | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
OTHER EXPENSE, NET | NOTE 9 — OTHER EXPENSE, NET | ||||||||||||||||
The significant components of other expense, net, are as follows: | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
Interest income | $ | 5,100 | $ | 3,110 | $ | 12,412 | $ | 8,661 | |||||||||
Interest expense | (17,628 | ) | (15,621 | ) | (49,129 | ) | (46,220 | ) | |||||||||
Gains on deferred compensation plan related assets | 2,816 | 3,137 | 7,825 | 8,534 | |||||||||||||
Foreign exchange gains (losses) | 1,562 | (85 | ) | 2,338 | (181 | ) | |||||||||||
Other, net | (3,239 | ) | (396 | ) | (282 | ) | 1,252 | ||||||||||
$ | (11,389 | ) | $ | (9,855 | ) | $ | (26,836 | ) | $ | (27,954 | ) | ||||||
During the nine months ended March 29, 2015, the Company sold all of Peter Wolters, a wholly owned subsidiary acquired as part of the Novellus acquisition. Net pre-tax gain of $7.3 million associated with this divestiture is included in Other, net in the Condensed Consolidated Statements of Operations. |
INCOME_TAX_EXPENSE
INCOME TAX EXPENSE | 9 Months Ended |
Mar. 29, 2015 | |
INCOME TAX EXPENSE | NOTE 10 — INCOME TAX EXPENSE |
The Company recorded an income tax expense of $22.3 million and $45.9 million for the three and nine months ended March 29, 2015, respectively, which yielded an effective tax rate for the three and nine months ended March 29, 2015 of approximately 9.8% and 8.0%, respectively. The difference between the U.S. federal statutory tax rate of 35% and the Company’s effective tax rate for the three and nine months ended March 29, 2015 is primarily due to the geographic mix of income, U.S. Research and Development credit, the true-up of the prior year federal tax return, and the recognition of previously unrecognized tax benefits due to lapse of statutes of limitation, offset by the tax effect of non-deductible stock-based compensation and unrecognized tax benefits due to uncertain tax positions. |
NET_INCOME_PER_SHARE
NET INCOME PER SHARE | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
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 shares of Common Stock 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 the effect of the 2016, 2018, and 2041 Notes. The following table reconciles the numerators and denominators of the basic and diluted computations for net income per share. | |||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 206,285 | $ | 164,396 | $ | 524,306 | $ | 398,894 | |||||||||
Denominator: | |||||||||||||||||
Basic average shares outstanding | 158,992 | 162,238 | 159,975 | 161,904 | |||||||||||||
Effect of potential dilutive securities: | |||||||||||||||||
Employee stock plans | 3,058 | 2,641 | 3,307 | 2,810 | |||||||||||||
Convertible notes | 14,351 | 6,757 | 13,321 | 6,337 | |||||||||||||
Warrants | 1,130 | — | 628 | — | |||||||||||||
Diluted average shares outstanding | 177,531 | 171,636 | 177,231 | 171,051 | |||||||||||||
Net income per share - basic | $ | 1.3 | $ | 1.01 | $ | 3.28 | $ | 2.46 | |||||||||
Net income per share - diluted | $ | 1.16 | $ | 0.96 | $ | 2.96 | $ | 2.33 | |||||||||
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 | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
Number of potential dilutive securities excluded | 324 | 75 | 154 | 85 | |||||||||||||
Diluted shares outstanding do not include any effect resulting from the note hedges associated with the Company’s 2016 or 2018 Notes as their impact would have been anti-dilutive. |
ACCUMULATED_OTHER_COMPREHENSIV
ACCUMULATED OTHER COMPREHENSIVE LOSS | 9 Months Ended | ||||||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||||||
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 29, 2014 | $ | (12,986 | ) | $ | (66 | ) | $ | 1,557 | $ | (17,160 | ) | $ | (28,655 | ) | |||||||
Other comprehensive income before reclassifications | (26,801 | ) | 485 | (554 | ) | 269 | (26,601 | ) | |||||||||||||
Gains reclassified from accumulated other comprehensive income to net income | (3,735 | ) | (3,942 | )(1) | (307 | )(2) | — | (7,984 | ) | ||||||||||||
Net current-period other comprehensive income | $ | (30,536 | ) | $ | (3,457 | ) | $ | (861 | ) | $ | 269 | $ | (34,585 | ) | |||||||
Balance as of March 29, 2015 | $ | (43,522 | ) | $ | (3,523 | ) | $ | 696 | $ | (16,891 | ) | $ | (63,240 | ) | |||||||
-1 | Amount of after tax gain reclassified from accumulated other comprehensive income into net income located in revenue: $7,670 gain, cost of goods sold: $2,396 loss, selling, general and administrative expenses: $1,321 loss, and other expense, net: $11 loss. | ||||||||||||||||||||
-2 | Amount of after tax gain reclassified from accumulated other comprehensive income into net income located in other expense, net |
COMMITMENTS_AND_CONTINGENCIES
COMMITMENTS AND CONTINGENCIES | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
COMMITMENTS AND CONTINGENCIES | NOTE 13 — COMMITMENTS AND CONTINGENCIES | ||||||||||||||||
Operating Leases and Related Guarantees | |||||||||||||||||
The Company leases certain of its administrative, research and development (“R&D”) and manufacturing facilities, regional sales/service offices, and certain equipment under non-cancelable operating leases. Certain of the Company’s facility leases for buildings located at its Fremont, California headquarters and certain other facility leases provide the Company with options to extend the leases for additional periods or to purchase the facilities. Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation. | |||||||||||||||||
The Company has operating leases regarding certain improved properties in Fremont and Livermore, California (the “Operating Leases”). The Company was required to maintain cash collateral in an aggregate of approximately $132.5 million in separate interest-bearing accounts, and marketable securities collateral in an aggregate of approximately $25.2 million, as security for the Company’s obligations. These amounts are recorded with other restricted cash and investments in the Company’s Consolidated Balance Sheet as of March 29, 2015. | |||||||||||||||||
During the term of the Operating Leases and when the terms of the Operating Leases expire, the property subject to those Operating Leases may be remarketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate guarantee made by the Company under the Operating Leases is generally no more than approximately $191.2 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 $220 million, in the aggregate. | |||||||||||||||||
The Company’s contractual cash obligations with respect to operating leases, excluding the residual value guarantee discussed above, as of March 29, 2015 were as follows: | |||||||||||||||||
Operating | |||||||||||||||||
Leases | |||||||||||||||||
Payments due by period: | (in thousands) | ||||||||||||||||
One year | $ | 8,588 | |||||||||||||||
Two years | 14,411 | ||||||||||||||||
Three years | 12,700 | ||||||||||||||||
Four years | 5,966 | ||||||||||||||||
Five years | 5,169 | ||||||||||||||||
Over five years | 15,056 | ||||||||||||||||
Less: Sublease Income | (1,316 | ) | |||||||||||||||
Total | $ | 60,574 | |||||||||||||||
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 March 29, 2015, 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 March 29, 2015, the maximum potential amount of future payments that it could be required to make under these arrangements and letters of credit was $15.9 million. The Company does not believe, based on historical experience and information currently available, that it is probable that any amounts will be required to be paid. | |||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of period | $ | 79,031 | $ | 67,413 | $ | 69,385 | $ | 58,078 | |||||||||
Warranties issued during the period | 33,440 | 25,106 | 86,676 | 67,405 | |||||||||||||
Settlements made during the period | (26,596 | ) | (19,686 | ) | (74,652 | ) | (52,958 | ) | |||||||||
Changes in liability for pre-existing warranties | 1,519 | (258 | ) | 5,985 | 50 | ||||||||||||
Balance at end of period | $ | 87,394 | $ | 72,575 | $ | 87,394 | $ | 72,575 | |||||||||
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. |
STOCK_REPURCHASE_PROGRAM
STOCK REPURCHASE PROGRAM | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
STOCK REPURCHASE PROGRAM | NOTE 14 — STOCK REPURCHASE PROGRAM | ||||||||||||||||
On April 29, 2014, the Board of Directors authorized the repurchase of up to $850 million of Common Stock, which includes the remaining value available under the Company’s prior authorization. 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 29, 2014 | $ | 830,895 | |||||||||||||||
Quarter ended September 28, 2014 | 3,818 | $ | 296,721 | $ | 70.01 | $ | 534,174 | ||||||||||
Quarter ended December 28, 2014 | 869 | $ | 45,694 | $ | 77.31 | $ | 488,480 | ||||||||||
Quarter ended March 29, 2015 | 1,434 | $ | 112,477 | $ | 78.45 | $ | 376,002 | ||||||||||
* | Average price paid per share excludes accelerated share repurchases for which cost was incurred during the September 2014 quarter, but that did not settle until the December 2014 quarter. See section below for details regarding average price associated with these transactions. | ||||||||||||||||
In addition to shares repurchased under the Board-authorized repurchase program shown above, the Company acquired 115,785 shares at a total cost of $9.3 million, during the three months ended March 29, 2015; and 525,203 shares at a total cost of $40.6 million, during the nine months ended March 29, 2015, 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. | |||||||||||||||||
During the three months ended September 28, 2014, 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 $250 million, in exchange for an initial delivery of approximately 3.2 million shares of its Common Stock. | |||||||||||||||||
The number of shares to ultimately be repurchased by the Company was 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 provided 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 on or after October 8, 2014 and on or before December 8, 2014. | |||||||||||||||||
The counterparty designated October 9, 2014 as the termination date, at which time the Company settled the ASR. Approximately 0.3 million shares were received at final settlement, which represented a weighted-average share price of approximately $72.90 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 March 29, 2015, the aggregate repurchase price of $250 million was reflected as Treasury stock, at cost, in the Consolidated Balance Sheet. |
EQUITYBASED_COMPENSATION_PLANS1
EQUITY-BASED COMPENSATION PLANS (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Recognized Equity Based Compensation Expense 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 | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
Equity-based compensation expense | $ | 32,948 | $ | 24,334 | $ | 95,620 | $ | 70,615 | |||||||||
Income tax benefit related to equity-based compensation expense | $ | 5,705 | $ | 4,112 | $ | 16,545 | $ | 11,710 | |||||||||
Summary of Stock Plan Activity | A summary of stock plan transactions is as follows: | ||||||||||||||||
Options Outstanding | Restricted Stock Units Outstanding | ||||||||||||||||
Number of | Weighted- | Number of | Weighted-Average | ||||||||||||||
Shares | Average | Shares | Fair Market Value | ||||||||||||||
Exercise Price | at Grant | ||||||||||||||||
29-Jun-14 | 1,331,886 | $ | 32.2 | 5,635,469 | $ | 45.83 | |||||||||||
Granted | 76,659 | $ | 80.6 | 1,713,990 | $ | 79.74 | |||||||||||
Exercised | (513,913 | ) | $ | 31.61 | N/A | N/A | |||||||||||
Cancelled | (7,452 | ) | $ | 29.86 | (136,375 | ) | $ | 49.02 | |||||||||
Vested restricted stock | N/A | N/A | (1,603,237 | ) | $ | 41.23 | |||||||||||
29-Mar-15 | 887,180 | $ | 36.74 | 5,609,847 | $ | 57.43 | |||||||||||
Schedule of ESPP Weighted-Average Assumptions | Purchase rights under the 1999 ESPP were valued using the Black-Scholes option valuation model and the following weighted-average assumptions for the three and nine months ended March 29, 2015 and March 30, 2014: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
Expected term (years) | 0.51 | 0.51 | 0.68 | 0.68 | |||||||||||||
Expected stock price volatility | 30.47 | % | 28.89 | % | 27.62 | % | 30.24 | % | |||||||||
Risk-free interest rate | 0.11 | % | 0.09 | % | 0.07 | % | 0.07 | % | |||||||||
Dividend Yield | 0.51 | % | N/A | 1.15 | % | N/A |
FINANCIAL_INSTRUMENTS_Tables
FINANCIAL INSTRUMENTS (Tables) | 9 Months Ended | ||||||||||||||||||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||||||||||||||||||
Cash, Cash Equivalents, Short-Term Investments, Restricted Cash and Investments and Other Assets Measured at Fair Value on Recurring Basis | The following table sets forth the Company’s cash, cash equivalents, short-term investments, restricted cash and investments, and other assets measured at fair value on a recurring basis as of March 29, 2015 and June 29, 2014: | ||||||||||||||||||||||||||||||||
March 29, 2015 | |||||||||||||||||||||||||||||||||
(Reported Within) | |||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Cash and Cash | Short-Term | Restricted | Other | ||||||||||||||||||||||||||
Gain | (Loss) | Equivalents | Investments | Cash & | Assets | ||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Cash | $ | 426,726 | $ | — | $ | — | $ | 426,726 | $ | 420,195 | $ | — | $ | 6,531 | $ | — | |||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||||||
Time Deposit | 132,549 | — | — | 132,549 | — | — | 132,549 | — | |||||||||||||||||||||||||
Money Market Funds | 1,215,441 | — | — | 1,215,441 | 1,215,441 | — | — | — | |||||||||||||||||||||||||
US Treasury and Agencies | 324,199 | 398 | (42 | ) | 324,555 | — | 299,335 | 25,220 | — | ||||||||||||||||||||||||
Mutual Funds | 36,034 | 4,430 | (5 | ) | 40,459 | — | — | — | 40,459 | ||||||||||||||||||||||||
Level 1 Total | $ | 1,708,223 | $ | 4,828 | $ | (47 | ) | $ | 1,713,004 | $ | 1,215,441 | $ | 299,335 | $ | 157,769 | $ | 40,459 | ||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||||||
Municipal Notes and Bonds | 479,943 | 716 | (51 | ) | 480,608 | — | 480,608 | — | — | ||||||||||||||||||||||||
Government-Sponsored Enterprises | 77,613 | 27 | (38 | ) | 77,602 | — | 77,602 | — | — | ||||||||||||||||||||||||
Foreign Government Bonds | 56,892 | 72 | (39 | ) | 56,925 | — | 56,925 | — | — | ||||||||||||||||||||||||
Corporate Notes and Bonds | 1,228,757 | 1,550 | (973 | ) | 1,229,334 | — | 1,229,334 | — | — | ||||||||||||||||||||||||
Mortgage Backed Securities - Residential | 28,538 | 93 | (144 | ) | 28,487 | — | 28,487 | — | — | ||||||||||||||||||||||||
Mortgage Backed Securities - Commercial | 141,885 | 39 | (720 | ) | 141,204 | — | 141,204 | — | — | ||||||||||||||||||||||||
Level 2 Total | $ | 2,013,628 | $ | 2,497 | $ | (1,965 | ) | $ | 2,014,160 | $ | — | $ | 2,014,160 | $ | — | $ | — | ||||||||||||||||
Total | $ | 4,148,577 | $ | 7,325 | $ | (2,012 | ) | $ | 4,153,890 | $ | 1,635,636 | $ | 2,313,495 | $ | 164,300 | $ | 40,459 | ||||||||||||||||
June 29, 2014 | |||||||||||||||||||||||||||||||||
(Reported Within) | |||||||||||||||||||||||||||||||||
Cost | Unrealized | Unrealized | Fair Value | Cash and Cash | Short-Term | Restricted | Other | ||||||||||||||||||||||||||
Gain | (Loss) | Equivalents | Investments | Cash & | Assets | ||||||||||||||||||||||||||||
Investments | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Cash | $ | 285,031 | $ | — | $ | — | $ | 285,031 | $ | 279,126 | $ | — | $ | 5,905 | — | ||||||||||||||||||
Level 1: | |||||||||||||||||||||||||||||||||
Time Deposit | 132,549 | — | — | 132,549 | — | — | 132,549 | — | |||||||||||||||||||||||||
Money Market Funds | 1,168,261 | — | — | 1,168,261 | 1,168,261 | — | — | — | |||||||||||||||||||||||||
US Treasury and Agencies | 212,436 | 178 | (27 | ) | 212,587 | — | 204,549 | 8,038 | — | ||||||||||||||||||||||||
Mutual Funds | 18,784 | 2,974 | — | 21,758 | — | — | — | 21,758 | |||||||||||||||||||||||||
Level 1 Total | $ | 1,532,030 | $ | 3,152 | $ | (27 | ) | $ | 1,535,155 | $ | 1,168,261 | $ | 204,549 | $ | 140,587 | $ | 21,758 | ||||||||||||||||
Level 2: | |||||||||||||||||||||||||||||||||
Municipal Notes and Bonds | 334,329 | 1,108 | (4 | ) | 335,433 | 5,290 | 330,143 | — | — | ||||||||||||||||||||||||
Government-Sponsored Enterprises | 27,666 | 41 | (15 | ) | 27,692 | — | 27,692 | — | — | ||||||||||||||||||||||||
Foreign Government Bonds | 35,438 | 57 | (28 | ) | 35,467 | — | 35,467 | — | — | ||||||||||||||||||||||||
Corporate Notes and Bonds | 874,540 | 2,034 | (335 | ) | 876,239 | — | 876,239 | — | — | ||||||||||||||||||||||||
Mortgage Backed Securities - Residential | 27,067 | 59 | (182 | ) | 26,944 | — | 26,944 | — | — | ||||||||||||||||||||||||
Mortgage Backed Securities - Commercial | 112,642 | 100 | (809 | ) | 111,933 | — | 111,933 | — | — | ||||||||||||||||||||||||
Level 2 Total | $ | 1,411,682 | $ | 3,399 | $ | (1,373 | ) | $ | 1,413,708 | $ | 5,290 | $ | 1,408,418 | $ | — | $ | — | ||||||||||||||||
Total | $ | 3,228,743 | $ | 6,551 | $ | (1,400 | ) | $ | 3,233,894 | $ | 1,452,677 | $ | 1,612,967 | $ | 146,492 | $ | 21,758 | ||||||||||||||||
Schedule of Cash, Cash Equivalents, Short-Term Investments and Restricted Cash and Investments in Unrealized Loss Positions | The following is an analysis of the Company’s cash, cash equivalents, short-term investments, and restricted cash and investments in unrealized loss positions: | ||||||||||||||||||||||||||||||||
March 29, 2015 | |||||||||||||||||||||||||||||||||
Unrealized Losses | Unrealized Losses | ||||||||||||||||||||||||||||||||
Less Than 12 Months | 12 Months or Greater | Total | |||||||||||||||||||||||||||||||
Fair Value | Gross | Fair | Gross | Fair Value | Gross | ||||||||||||||||||||||||||||
Unrealized | Value | Unrealized | Unrealized | ||||||||||||||||||||||||||||||
Loss | Loss | Loss | |||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Municipal Notes and Bonds | $ | 75,497 | $ | (51 | ) | $ | — | $ | — | $ | 75,497 | $ | (51 | ) | |||||||||||||||||||
US Treasury & Agencies | 189,671 | (42 | ) | — | — | 189,671 | (42 | ) | |||||||||||||||||||||||||
Retail Funds | 3,711 | (5 | ) | — | — | 3,711 | (5 | ) | |||||||||||||||||||||||||
Government-Sponsored Enterprises | 50,215 | (38 | ) | — | — | 50,215 | (38 | ) | |||||||||||||||||||||||||
Foreign Government Bonds | 29,721 | (39 | ) | — | — | 29,721 | (39 | ) | |||||||||||||||||||||||||
Corporate Notes and Bonds | 553,071 | (963 | ) | 2,709 | (10 | ) | 555,780 | (973 | ) | ||||||||||||||||||||||||
Mortgage Backed Securities - Residential | 13,130 | (52 | ) | 2,347 | (92 | ) | 15,477 | (144 | ) | ||||||||||||||||||||||||
Mortgage Backed Securities - Commercial | 100,667 | (433 | ) | 22,619 | (287 | ) | 123,286 | (720 | ) | ||||||||||||||||||||||||
$ | 1,015,683 | $ | (1,623 | ) | $ | 27,675 | $ | (389 | ) | $ | 1,043,358 | $ | (2,012 | ) | |||||||||||||||||||
Schedule of Amortized Cost and Fair Value of Cash Equivalents, Short-Term Investments and Restricted Investments with Contractual Maturities | The amortized cost and fair value of cash equivalents, short-term investments and restricted investments with contractual maturities are as follows as of March 29, 2015: | ||||||||||||||||||||||||||||||||
Cost | Estimated Fair | ||||||||||||||||||||||||||||||||
Value | |||||||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Due in one year or less | $ | 1,596,931 | $ | 1,597,205 | |||||||||||||||||||||||||||||
Due after one year through five years | 1,724,707 | 1,726,108 | |||||||||||||||||||||||||||||||
Due in more than five years | 364,179 | 363,392 | |||||||||||||||||||||||||||||||
$ | 3,685,817 | $ | 3,686,705 | ||||||||||||||||||||||||||||||
Schedule of Outstanding Foreign Currency Forward Contracts | As of March 29, 2015, 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 | $ | — | $ | 59,529 | $ | — | $ | 26,451 | |||||||||||||||||||||||||
Swiss Franc | — | — | — | 2,104 | |||||||||||||||||||||||||||||
Euro | 32,149 | — | 1,804 | — | |||||||||||||||||||||||||||||
Korean Won | — | — | 22,178 | — | |||||||||||||||||||||||||||||
Singapore Dollar | — | — | 4,671 | — | |||||||||||||||||||||||||||||
Taiwan Dollar | — | — | 33,239 | 11,162 | |||||||||||||||||||||||||||||
$ | 32,149 | $ | 59,529 | $ | 61,892 | $ | 39,717 | ||||||||||||||||||||||||||
Schedule of Fair Value of Derivative Instruments | The fair value of derivative instruments in the Company’s Consolidated Balance Sheets as of March 29, 2015 and June 29, 2014 were as follows: | ||||||||||||||||||||||||||||||||
March 29, 2015 | June 29, 2014 | ||||||||||||||||||||||||||||||||
Fair Value of Derivative Instruments (Level 2) | Fair Value of Derivative Instruments (Level 2) | ||||||||||||||||||||||||||||||||
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 | $ | 5,711 | Accrued liabilities | $ | 4,391 | Prepaid expense and other assets | $ | 483 | Accrued liabilities | $ | 805 | |||||||||||||||||||||
Derivatives not designated as hedging instruments: | |||||||||||||||||||||||||||||||||
Foreign exchange forward contracts | Prepaid expense and other assets | 54 | Accrued liabilities | 1,458 | Prepaid expense and other assets | 1,109 | Accrued liabilities | 118 | |||||||||||||||||||||||||
Total derivatives | $ | 5,765 | $ | 5,849 | $ | 1,592 | $ | 923 | |||||||||||||||||||||||||
Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations Including Accumulated Other Comprehensive Income | The effect of derivative instruments designated as cash flow hedges on the Company’s Condensed Consolidated Statements of Operations, including accumulated other comprehensive income (“AOCI”) was as follows: | ||||||||||||||||||||||||||||||||
Three Months Ended March 29, 2015 | Nine Months Ended March 29, 2015 | ||||||||||||||||||||||||||||||||
Effective Portion | Ineffective | Effective Portion | Ineffective | ||||||||||||||||||||||||||||||
Portion and | Portion and | ||||||||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||||||
Excluded from | Excluded from | ||||||||||||||||||||||||||||||||
Effectiveness | Effectiveness | ||||||||||||||||||||||||||||||||
Testing | Testing | ||||||||||||||||||||||||||||||||
Location of Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | Gain (Loss) | |||||||||||||||||||||||||||
Recognized in or Reclassified | Recognized | Reclassified | Recognized | Recognized | Reclassified | Recognized | |||||||||||||||||||||||||||
into Income | in AOCI | from AOCI | in Income | in AOCI | from AOCI | in Income | |||||||||||||||||||||||||||
into Income | into Income | ||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Revenue | $ | 1,981 | $ | 3,165 | $ | 68 | $ | 13,770 | $ | 8,601 | $ | 192 | ||||||||||||||||||||
Foreign Exchange Contracts | Cost of goods sold | (3,965 | ) | (984 | ) | (25 | ) | (7,252 | ) | (2,818 | ) | (50 | ) | ||||||||||||||||||||
Foreign Exchange Contracts | Selling, general, and administrative | (1,669 | ) | (1,039 | ) | (15 | ) | (3,090 | ) | (1,747 | ) | (26 | ) | ||||||||||||||||||||
Interest Rate Contracts | Other expense, net | (7,142 | ) | 19 | 231 | (5,071 | ) | 19 | 231 | ||||||||||||||||||||||||
$ | (10,795 | ) | $ | 1,161 | $ | 259 | $ | (1,643 | ) | $ | 4,055 | $ | 347 | ||||||||||||||||||||
Three Months Ended March 30, 2014 | Nine Months Ended March 30, 2014 | ||||||||||||||||||||||||||||||||
Effective Portion | Ineffective | Effective Portion | Ineffective | ||||||||||||||||||||||||||||||
Portion and | Portion and | ||||||||||||||||||||||||||||||||
Amount | Amount | ||||||||||||||||||||||||||||||||
Excluded from | Excluded from | ||||||||||||||||||||||||||||||||
Effectiveness | Effectiveness | ||||||||||||||||||||||||||||||||
Testing | Testing | ||||||||||||||||||||||||||||||||
Location of Gain (Loss) | Gain (Loss) | Gain | Gain (Loss) | Gain | Gain | Gain (Loss) | |||||||||||||||||||||||||||
Recognized in or Reclassified | Recognized | Reclassified | Recognized | Recognized | Reclassified | Recognized | |||||||||||||||||||||||||||
into Income | in AOCI | from AOCI | in Income | in AOCI | from AOCI | in Income | |||||||||||||||||||||||||||
into Income | into Income | ||||||||||||||||||||||||||||||||
(in thousands) | (in thousands) | ||||||||||||||||||||||||||||||||
Derivatives Designated as Hedging Instruments | |||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Revenue | $ | (621 | ) | $ | 2,787 | $ | 54 | $ | 7,483 | $ | 8,947 | $ | 232 | |||||||||||||||||||
Foreign Exchange Contracts | Cost of goods sold | 307 | 646 | (10 | ) | 1,717 | 1,764 | (66 | ) | ||||||||||||||||||||||||
Foreign Exchange Contracts | Selling, general, and administrative | 112 | 291 | (5 | ) | 667 | 800 | (29 | ) | ||||||||||||||||||||||||
$ | (202 | ) | $ | 3,724 | $ | 39 | $ | 9,867 | $ | 11,511 | $ | 137 | |||||||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||||||||||||||||||
March 29, 2015 | March 30, 2014 | March 29, 2015 | March 30, 2014 | ||||||||||||||||||||||||||||||
Location of Gain (Loss) | Loss Recognized | Loss Recognized | Gain Recognized | Gain Recognized | |||||||||||||||||||||||||||||
Recognized in Income | in Income | in Income | in Income | in Income | |||||||||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||||||||||
Derivatives Not Designated as | |||||||||||||||||||||||||||||||||
Hedging Instruments: | |||||||||||||||||||||||||||||||||
Foreign Exchange Contracts | Other income | $ | (908 | ) | $ | (6,527 | ) | $ | 1,178 | $ | 4,512 |
INVENTORIES_Tables
INVENTORIES (Tables) | 9 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Schedule of Inventories | Inventories consist of the following: | ||||||||
March 29, | June 29, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Raw materials | $ | 578,304 | $ | 449,623 | |||||
Work-in-process | 136,274 | 126,564 | |||||||
Finished goods | 205,101 | 164,316 | |||||||
$ | 919,679 | $ | 740,503 | ||||||
GOODWILL_AND_INTANGIBLE_ASSETS1
GOODWILL AND INTANGIBLE ASSETS (Tables) | 9 Months Ended | ||||||||||||
Mar. 29, 2015 | |||||||||||||
Schedule of Intangible Assets | The following table provides the Company’s intangible assets as of March 29, 2015: | ||||||||||||
Gross | Accumulated | Net | |||||||||||
Amortization | |||||||||||||
(in thousands) | |||||||||||||
Customer relationships | $ | 615,377 | $ | (218,505 | ) | $ | 396,872 | ||||||
Existing technology | 654,385 | (291,705 | ) | 362,680 | |||||||||
Patents | 33,553 | (25,899 | ) | 7,654 | |||||||||
Other intangible assets | 35,691 | (35,339 | ) | 352 | |||||||||
Intangible assets subject to amortization | 1,339,006 | (571,448 | ) | 767,558 | |||||||||
Development rights | 9,100 | 9,100 | |||||||||||
Intangible assets not subject to amortization | 9,100 | 9,100 | |||||||||||
Total intangible assets | $ | 1,348,106 | $ | (571,448 | ) | $ | 776,658 | ||||||
The following table provides the Company’s intangible assets as of June 29, 2014: | |||||||||||||
Gross | Accumulated | Net | |||||||||||
Amortization | |||||||||||||
(in thousands) | |||||||||||||
Customer relationships | $ | 615,618 | $ | (169,162 | ) | $ | 446,456 | ||||||
Existing technology | 643,922 | (224,246 | ) | 419,676 | |||||||||
Patents | 32,253 | (24,407 | ) | 7,846 | |||||||||
Other intangible assets | 35,270 | (35,270 | ) | — | |||||||||
Intangible assets subject to amortization | 1,327,063 | (453,085 | ) | 873,978 | |||||||||
In process research and development | 11,000 | 11,000 | |||||||||||
Development rights | 9,100 | 9,100 | |||||||||||
Intangible assets not subject to amortization | 20,100 | 20,100 | |||||||||||
Total intangible assets | $ | 1,347,163 | $ | (453,085 | ) | $ | 894,078 | ||||||
Estimated Future Amortization Expense of Intangible Assets | The estimated future amortization expense of intangible assets, excluding those with indefinite lives, as of March 29, 2015 was as follows: | ||||||||||||
Fiscal Year | Amount | ||||||||||||
2015 (3 Months) | $ | 39,235 | |||||||||||
2016 | 156,033 | ||||||||||||
2017 | 154,130 | ||||||||||||
2018 | 152,918 | ||||||||||||
2019 | 121,988 | ||||||||||||
Thereafter | 143,254 | ||||||||||||
$ | 767,558 | ||||||||||||
ACCRUED_EXPENSES_AND_OTHER_CUR1
ACCRUED EXPENSES AND OTHER CURRENT LIABILITIES (Tables) | 9 Months Ended | ||||||||
Mar. 29, 2015 | |||||||||
Schedule of Accrued Expenses and Other Current Liabilities | Accrued expenses and other current liabilities consist of the following: | ||||||||
March 29, | June 29, | ||||||||
2015 | 2014 | ||||||||
(in thousands) | |||||||||
Accrued compensation | $ | 262,900 | $ | 311,054 | |||||
Warranty reserves | 87,395 | 68,324 | |||||||
Income and other taxes payable | 10,354 | 93,934 | |||||||
Trade date payable, short-term investments | 57,305 | — | |||||||
Dividend payable | 28,714 | 29,240 | |||||||
Other | 142,198 | 101,744 | |||||||
$ | 588,866 | $ | 604,296 | ||||||
LONGTERM_DEBT_AND_OTHER_BORROW1
LONG-TERM DEBT AND OTHER BORROWINGS (Tables) | 9 Months Ended | ||||||||||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||||||||||
Components of Convertible Notes | As of March 29, 2015 and June 29, 2014, the Convertible Notes consisted of the following: | ||||||||||||||||||||||||
March 29, 2015 | June 29, 2014 | ||||||||||||||||||||||||
2016 Notes | 2018 Notes | 2041 Notes(1) | 2016 Notes | 2018 Notes | 2041 Notes(1) | ||||||||||||||||||||
(in thousands, except years, percentages, conversion rate, and conversion price) | |||||||||||||||||||||||||
Carrying value, long-term | $ | 431,447 | $ | 398,502 | $ | — | $ | 419,561 | $ | 387,338 | $ | — | |||||||||||||
Carrying value, current portion | — | — | 519,366 | — | — | 516,586 | |||||||||||||||||||
Unamortized discount | 18,553 | 51,498 | 180,569 | 30,439 | 62,662 | 183,349 | |||||||||||||||||||
Principal amount | $ | 450,000 | $ | 450,000 | $ | 699,935 | $ | 450,000 | $ | 450,000 | $ | 699,935 | |||||||||||||
Remaining amortization period (years) | 1.1 | 3.1 | 26.1 | ||||||||||||||||||||||
Effective interest rate on liability component | 4.29 | % | 5.27 | % | 4.28 | % | |||||||||||||||||||
Carrying amount of equity component, net of tax | $ | 76,230 | $ | 104,895 | $ | 328,109 | |||||||||||||||||||
Fair Value of Notes (Level 2) | $ | 548,825 | $ | 586,350 | $ | 1,470,612 | |||||||||||||||||||
Conversion rate (shares of common stock per $1,000 principal amount of notes) | 16.0228 | 16.0228 | 28.7547 | ||||||||||||||||||||||
Conversion price (per share of common stock) | $ | 62.41 | $ | 62.41 | $ | 34.78 | |||||||||||||||||||
If-converted value in excess of par value | $ | 69,426 | $ | 69,426 | $ | 749,973 | |||||||||||||||||||
-1 | During the quarter-ended March 29, 2015 and June 29, 2014, the market value of the Company’s Common Stock was greater than or equal to 130% of the 2041 Note conversion price for 20 or more trading days of the 30 consecutive trading days preceding the quarter end. As a result, the 2041 Notes are convertible at the option of the holder. The carrying amount of the 2041 Notes was classified in current liabilities and the excess of the amount of cash payable, if converted, over the carrying amount of the 2041 Notes was classified as temporary equity on the Company’s Consolidated Balance Sheets as of March 29, 2015 and June 29, 2014. Upon closure of a conversion period, all 2041 Notes not converted will be reclassified back to noncurrent liabilities and the temporary equity will be reclassified to permanent equity. | ||||||||||||||||||||||||
Warrants and Convertible Note Hedge Arrangements | The following table presents the details of the warrants and convertible note hedge arrangements as of March 29, 2015: | ||||||||||||||||||||||||
2016 Notes | 2018 Notes | ||||||||||||||||||||||||
(shares in thousands) | |||||||||||||||||||||||||
Warrants: | |||||||||||||||||||||||||
Number of shares to be delivered upon exercise | 7,210 | 7,210 | |||||||||||||||||||||||
Exercise price | $ | 70.65 | $ | 75.37 | |||||||||||||||||||||
Expiration date range | August 15 - | August 15 - | |||||||||||||||||||||||
October 21, 2016 | October 23, 2018 | ||||||||||||||||||||||||
Convertible Note Hedge: | |||||||||||||||||||||||||
Number of shares available from counterparties | 7,210 | 7,210 | |||||||||||||||||||||||
Exercise price | $ | 62.41 | $ | 62.41 | |||||||||||||||||||||
Components of Senior Notes | As of March 29, 2015 the Senior Notes consisted of the following: | ||||||||||||||||||||||||
March 29, 2015 | |||||||||||||||||||||||||
2020 Notes | 2025 Notes | ||||||||||||||||||||||||
(in thousands, except years) | |||||||||||||||||||||||||
Carrying value, long-term | $ | 497,200 | $ | 496,553 | |||||||||||||||||||||
Unamortized discount | 2,800 | 3,447 | |||||||||||||||||||||||
Principal amount | $ | 500,000 | $ | 500,000 | |||||||||||||||||||||
Remaining amortization period (years) | 5 | 10 | |||||||||||||||||||||||
Fair Value of Notes (Level 2) | $ | 503,160 | $ | 501,700 | |||||||||||||||||||||
Schedule of Recognized Interest Cost Relating to Both Contractual Interest Coupon and Amortization of Discount on Liability Component of Notes | The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Senior Notes and the Convertible Notes during the three and nine months ended March 29, 2015 and March 30, 2014. | ||||||||||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||||||||||
(in thousands) | |||||||||||||||||||||||||
Contractual interest coupon | $ | 8,200 | $ | 6,562 | $ | 21,324 | $ | 19,686 | |||||||||||||||||
Amortization of discount | 8,749 | 8,313 | 25,868 | 24,652 | |||||||||||||||||||||
Amortization of issuance costs | 603 | 591 | 1,784 | 1,772 | |||||||||||||||||||||
Amortization of interest rate contracts | 19 | — | 19 | — | |||||||||||||||||||||
Total interest cost recognized | $ | 17,571 | $ | 15,466 | $ | 48,995 | $ | 46,110 | |||||||||||||||||
OTHER_EXPENSE_NET_Tables
OTHER EXPENSE, NET (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Components of Other Expense, Net | The significant components of other expense, net, are as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
Interest income | $ | 5,100 | $ | 3,110 | $ | 12,412 | $ | 8,661 | |||||||||
Interest expense | (17,628 | ) | (15,621 | ) | (49,129 | ) | (46,220 | ) | |||||||||
Gains on deferred compensation plan related assets | 2,816 | 3,137 | 7,825 | 8,534 | |||||||||||||
Foreign exchange gains (losses) | 1,562 | (85 | ) | 2,338 | (181 | ) | |||||||||||
Other, net | (3,239 | ) | (396 | ) | (282 | ) | 1,252 | ||||||||||
$ | (11,389 | ) | $ | (9,855 | ) | $ | (26,836 | ) | $ | (27,954 | ) | ||||||
NET_INCOME_PER_SHARE_Tables
NET INCOME PER SHARE (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
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 | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands, except per share data) | |||||||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 206,285 | $ | 164,396 | $ | 524,306 | $ | 398,894 | |||||||||
Denominator: | |||||||||||||||||
Basic average shares outstanding | 158,992 | 162,238 | 159,975 | 161,904 | |||||||||||||
Effect of potential dilutive securities: | |||||||||||||||||
Employee stock plans | 3,058 | 2,641 | 3,307 | 2,810 | |||||||||||||
Convertible notes | 14,351 | 6,757 | 13,321 | 6,337 | |||||||||||||
Warrants | 1,130 | — | 628 | — | |||||||||||||
Diluted average shares outstanding | 177,531 | 171,636 | 177,231 | 171,051 | |||||||||||||
Net income per share - basic | $ | 1.3 | $ | 1.01 | $ | 3.28 | $ | 2.46 | |||||||||
Net income per share - diluted | $ | 1.16 | $ | 0.96 | $ | 2.96 | $ | 2.33 | |||||||||
Schedule of Potentially Dilutive Securities Excluded from EPS Calculations | under the treasury stock method. The following potentially dilutive securities were excluded: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
Number of potential dilutive securities excluded | 324 | 75 | 154 | 85 | |||||||||||||
ACCUMULATED_OTHER_COMPREHENSIV1
ACCUMULATED OTHER COMPREHENSIVE LOSS (Tables) | 9 Months Ended | ||||||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||||||
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 29, 2014 | $ | (12,986 | ) | $ | (66 | ) | $ | 1,557 | $ | (17,160 | ) | $ | (28,655 | ) | |||||||
Other comprehensive income before reclassifications | (26,801 | ) | 485 | (554 | ) | 269 | (26,601 | ) | |||||||||||||
Gains reclassified from accumulated other comprehensive income to net income | (3,735 | ) | (3,942 | )(1) | (307 | )(2) | — | (7,984 | ) | ||||||||||||
Net current-period other comprehensive income | $ | (30,536 | ) | $ | (3,457 | ) | $ | (861 | ) | $ | 269 | $ | (34,585 | ) | |||||||
Balance as of March 29, 2015 | $ | (43,522 | ) | $ | (3,523 | ) | $ | 696 | $ | (16,891 | ) | $ | (63,240 | ) | |||||||
-1 | Amount of after tax gain reclassified from accumulated other comprehensive income into net income located in revenue: $7,670 gain, cost of goods sold: $2,396 loss, selling, general and administrative expenses: $1,321 loss, and other expense, net: $11 loss. | ||||||||||||||||||||
-2 | Amount of after tax gain reclassified from accumulated other comprehensive income into net income located in other expense, net |
COMMITMENTS_AND_CONTINGENCIES_
COMMITMENTS AND CONTINGENCIES (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
Schedule of Contractual Cash Obligations Relating to Operating Leases | The Company’s contractual cash obligations with respect to operating leases, excluding the residual value guarantee discussed above, as of March 29, 2015 were as follows: | ||||||||||||||||
Operating | |||||||||||||||||
Leases | |||||||||||||||||
Payments due by period: | (in thousands) | ||||||||||||||||
One year | $ | 8,588 | |||||||||||||||
Two years | 14,411 | ||||||||||||||||
Three years | 12,700 | ||||||||||||||||
Four years | 5,966 | ||||||||||||||||
Five years | 5,169 | ||||||||||||||||
Over five years | 15,056 | ||||||||||||||||
Less: Sublease Income | (1,316 | ) | |||||||||||||||
Total | $ | 60,574 | |||||||||||||||
Schedule of Changes in Product Warranty Reserves | Changes in the Company’s product warranty reserves were as follows: | ||||||||||||||||
Three Months Ended | Nine Months Ended | ||||||||||||||||
March 29, | March 30, | March 29, | March 30, | ||||||||||||||
2015 | 2014 | 2015 | 2014 | ||||||||||||||
(in thousands) | |||||||||||||||||
Balance at beginning of period | $ | 79,031 | $ | 67,413 | $ | 69,385 | $ | 58,078 | |||||||||
Warranties issued during the period | 33,440 | 25,106 | 86,676 | 67,405 | |||||||||||||
Settlements made during the period | (26,596 | ) | (19,686 | ) | (74,652 | ) | (52,958 | ) | |||||||||
Changes in liability for pre-existing warranties | 1,519 | (258 | ) | 5,985 | 50 | ||||||||||||
Balance at end of period | $ | 87,394 | $ | 72,575 | $ | 87,394 | $ | 72,575 | |||||||||
STOCK_REPURCHASE_PROGRAM_Table
STOCK REPURCHASE PROGRAM (Tables) | 9 Months Ended | ||||||||||||||||
Mar. 29, 2015 | |||||||||||||||||
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 29, 2014 | $ | 830,895 | |||||||||||||||
Quarter ended September 28, 2014 | 3,818 | $ | 296,721 | $ | 70.01 | $ | 534,174 | ||||||||||
Quarter ended December 28, 2014 | 869 | $ | 45,694 | $ | 77.31 | $ | 488,480 | ||||||||||
Quarter ended March 29, 2015 | 1,434 | $ | 112,477 | $ | 78.45 | $ | 376,002 | ||||||||||
* | Average price paid per share excludes accelerated share repurchases for which cost was incurred during the September 2014 quarter, but that did not settle until the December 2014 quarter. See section below for details regarding average price associated with these transactions. |
Recovered_Sheet1
Recent Accounting Pronouncements - Additional Information (Detail) (Accounting Standards Update 2015-3 - Interest-Imputation of Interest, Adjustment, Forecast, USD $) | Jun. 25, 2017 |
In Millions, unless otherwise specified | |
Accounting Standards Update 2015-3 - Interest-Imputation of Interest | Adjustment, Forecast | |
Revisions [Line Items] | |
Unrecognized debt issuance costs, non-current assets | ($3) |
Unrecognized debt issuance costs, non-current liabilities | $3 |
Equity_Based_Compensation_Plan
Equity Based Compensation Plans - Additional Information (Detail) (USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Mar. 29, 2015 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options and restricted stock units vesting period, years | 3 years |
Novellus Systems Incorporated | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Options and restricted stock units vesting period, years | 4 years |
Employee Stock Purchase Plan | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average remaining period for recognition, years | 5 months |
ESPP purchase price per share as percentage of fair market value | 85.00% |
Unrecognized compensation expense | 6.2 |
Stock Options | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Unrecognized compensation expense, stock option | 3.4 |
Weighted average remaining period for recognition, years | 2 years 3 months 18 days |
Restricted Stock Units (RSUs) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Weighted average remaining period for recognition, years | 2 years 2 months 12 days |
Unrecognized compensation expense | 228.3 |
Recognized_Equity_Based_Compen
Recognized Equity Based Compensation Expenses and Related Income Tax Benefit (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Equity-based compensation expense | $32,948 | $24,334 | $95,620 | $70,615 |
Income tax benefit related to equity-based compensation expense | $5,705 | $4,112 | $16,545 | $11,710 |
Summary_of_Stock_Plan_Activity
Summary of Stock Plan Activity (Detail) (USD $) | 9 Months Ended |
Mar. 29, 2015 | |
Options Outstanding Number of Shares | |
Beginning balance | 1,331,886 |
Granted | 76,659 |
Exercised | -513,913 |
Cancelled | -7,452 |
Ending balance | 887,180 |
Weighted-Average Exercise Price | |
Beginning balance | $32.20 |
Granted | $80.60 |
Exercised | $31.61 |
Cancelled | $29.86 |
Ending balance | $36.74 |
Restricted stock units outstanding number of shares | |
Beginning balance | 5,635,469 |
Granted | 1,713,990 |
Cancelled | -136,375 |
Vested restricted stock | -1,603,237 |
Ending balance | 5,609,847 |
Restricted Stock Units Outstanding Number of Shares Weighted-Average FMV at Grant | |
Beginning balance | $45.83 |
Granted | $79.74 |
Cancelled | $49.02 |
Vested restricted stock | $41.23 |
Ending balance | $57.43 |
Schedule_of_Stock_Options_Weig
Schedule of Stock Options Weighted Average Assumptions (Detail) (Employee Stock Purchase Plan) | 3 Months Ended | 9 Months Ended | ||
Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 | |
Employee Stock Purchase Plan | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected term (years) | 6 months 4 days | 6 months 4 days | 8 months 5 days | 8 months 5 days |
Expected stock price volatility | 30.47% | 28.89% | 27.62% | 30.24% |
Risk-free interest rate | 0.11% | 0.09% | 0.07% | 0.07% |
Dividend Yield | 0.51% | 1.15% |
Cash_Cash_Equivalents_ShortTer
Cash, Cash Equivalents, Short-Term Investments, Restricted Cash and Investments and Other Assets Measured at Fair Value on Recurring Basis (Detail) (USD $) | Mar. 29, 2015 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Financial Instruments [Line Items] | ||
Cost | $4,148,577 | $3,228,743 |
Unrealized Gain | 7,325 | 6,551 |
Unrealized (Loss) | -2,012 | -1,400 |
Fair Value | 4,153,890 | 3,233,894 |
Cash and Cash Equivalents | 1,635,636 | 1,452,677 |
Short-Term Investments | 2,313,495 | 1,612,967 |
Restricted Cash & Investments | 164,300 | 146,492 |
Other Assets | 40,459 | 21,758 |
Fair Value Level 1 | ||
Financial Instruments [Line Items] | ||
Cost | 1,708,223 | 1,532,030 |
Unrealized Gain | 4,828 | 3,152 |
Unrealized (Loss) | -47 | -27 |
Fair Value | 1,713,004 | 1,535,155 |
Cash and Cash Equivalents | 1,215,441 | 1,168,261 |
Short-Term Investments | 299,335 | 204,549 |
Restricted Cash & Investments | 157,769 | 140,587 |
Other Assets | 40,459 | 21,758 |
Fair Value Level 2 | ||
Financial Instruments [Line Items] | ||
Cost | 2,013,628 | 1,411,682 |
Unrealized Gain | 2,497 | 3,399 |
Unrealized (Loss) | -1,965 | -1,373 |
Fair Value | 2,014,160 | 1,413,708 |
Cash and Cash Equivalents | 5,290 | |
Short-Term Investments | 2,014,160 | 1,408,418 |
Fair Value Level 2 | Municipal Notes And Bonds | ||
Financial Instruments [Line Items] | ||
Cost | 479,943 | 334,329 |
Unrealized Gain | 716 | 1,108 |
Unrealized (Loss) | -51 | -4 |
Fair Value | 480,608 | 335,433 |
Cash and Cash Equivalents | 5,290 | |
Short-Term Investments | 480,608 | 330,143 |
Fair Value Level 2 | Corporate Notes And Bonds | ||
Financial Instruments [Line Items] | ||
Cost | 1,228,757 | 874,540 |
Unrealized Gain | 1,550 | 2,034 |
Unrealized (Loss) | -973 | -335 |
Fair Value | 1,229,334 | 876,239 |
Short-Term Investments | 1,229,334 | 876,239 |
Cash | ||
Financial Instruments [Line Items] | ||
Cost | 426,726 | 285,031 |
Fair Value | 426,726 | 285,031 |
Cash and Cash Equivalents | 420,195 | 279,126 |
Restricted Cash & Investments | 6,531 | 5,905 |
Time Deposits | Fair Value Level 1 | ||
Financial Instruments [Line Items] | ||
Cost | 132,549 | 132,549 |
Fair Value | 132,549 | 132,549 |
Restricted Cash & Investments | 132,549 | 132,549 |
Money Market Funds | Fair Value Level 1 | ||
Financial Instruments [Line Items] | ||
Cost | 1,215,441 | 1,168,261 |
Fair Value | 1,215,441 | 1,168,261 |
Cash and Cash Equivalents | 1,215,441 | 1,168,261 |
US Treasury and Agencies | Fair Value Level 1 | ||
Financial Instruments [Line Items] | ||
Cost | 324,199 | 212,436 |
Unrealized Gain | 398 | 178 |
Unrealized (Loss) | -42 | -27 |
Fair Value | 324,555 | 212,587 |
Short-Term Investments | 299,335 | 204,549 |
Restricted Cash & Investments | 25,220 | 8,038 |
Mutual Funds | Fair Value Level 1 | ||
Financial Instruments [Line Items] | ||
Cost | 36,034 | 18,784 |
Unrealized Gain | 4,430 | 2,974 |
Unrealized (Loss) | -5 | |
Fair Value | 40,459 | 21,758 |
Other Assets | 40,459 | 21,758 |
Government-Sponsored Enterprises | Fair Value Level 2 | ||
Financial Instruments [Line Items] | ||
Cost | 77,613 | 27,666 |
Unrealized Gain | 27 | 41 |
Unrealized (Loss) | -38 | -15 |
Fair Value | 77,602 | 27,692 |
Short-Term Investments | 77,602 | 27,692 |
Foreign Government Bonds | Fair Value Level 2 | ||
Financial Instruments [Line Items] | ||
Cost | 56,892 | 35,438 |
Unrealized Gain | 72 | 57 |
Unrealized (Loss) | -39 | -28 |
Fair Value | 56,925 | 35,467 |
Short-Term Investments | 56,925 | 35,467 |
Mortgage Backed Securities - Residential | Fair Value Level 2 | ||
Financial Instruments [Line Items] | ||
Cost | 28,538 | 27,067 |
Unrealized Gain | 93 | 59 |
Unrealized (Loss) | -144 | -182 |
Fair Value | 28,487 | 26,944 |
Short-Term Investments | 28,487 | 26,944 |
Mortgage Backed Securities - Commercial | Fair Value Level 2 | ||
Financial Instruments [Line Items] | ||
Cost | 141,885 | 112,642 |
Unrealized Gain | 39 | 100 |
Unrealized (Loss) | -720 | -809 |
Fair Value | 141,204 | 111,933 |
Short-Term Investments | $141,204 | $111,933 |
Financial_Instruments_Addition
Financial Instruments - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 | Jun. 29, 2014 | |
Financial Instruments [Line Items] | |||||
Other than temporary impairment included in net realized gains (losses) | $0 | $0 | $0 | $0 | |
Gains realized from sales of investments | 1,000,000 | 400,000 | 1,900,000 | 800,000 | |
Losses realized from sales of investments | -400,000 | -700,000 | -1,400,000 | -1,700,000 | |
Investment classified as short term, contractual maturity period | 1 year | ||||
Gains (losses) accumulated in other comprehensive income expected to reclassify from other comprehensive income into earnings | -3,500,000 | ||||
Foreign exchange contracts gains (losses) accumulated in other comprehensive income expected to reclassify from other comprehensive income into earnings over the next 12 months | -300,000 | -300,000 | |||
Gains (losses) accumulated in other comprehensive income expects to reclassify from other comprehensive income into earnings, interest rate contracts | -3,200,000 | -3,200,000 | |||
Forward-starting interest rate swap agreements | |||||
Financial Instruments [Line Items] | |||||
Notional value | 375,000,000 | 375,000,000 | |||
Derivative Contracts | Cash flow hedging | |||||
Financial Instruments [Line Items] | |||||
Potential effect of rights of set-off under master netting agreements for derivative contracts assets | 5,300,000 | 5,300,000 | 500,000 | ||
Potential effect of rights of set-off under master netting agreements for derivative contracts liabilities | 5,300,000 | 5,300,000 | 500,000 | ||
Net derivative asset from master netting agreements | 500,000 | 500,000 | 1,100,000 | ||
Net derivative liabilities from master netting agreements | $600,000 | $600,000 | $500,000 | ||
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_Cash_Cash_Equivale
Schedule of Cash, Cash Equivalents, Short-Term Investments and Restricted Cash and Investments Unrealized Loss Positions (Detail) (USD $) | Mar. 29, 2015 |
In Thousands, unless otherwise specified | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Losses Less Than 12 Months - Fair Value | $1,015,683 |
Unrealized Losses Less Than 12 Months - Gross Unrealized Loss | -1,623 |
Unrealized Losses 12 Months or Greater - Fair Value | 27,675 |
Unrealized Losses 12 Months or Greater - Gross Unrealized Loss | -389 |
Total - Fair Value | 1,043,358 |
Total - Gross Unrealized Loss | -2,012 |
Municipal Notes And Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Losses Less Than 12 Months - Fair Value | 75,497 |
Unrealized Losses Less Than 12 Months - Gross Unrealized Loss | -51 |
Total - Fair Value | 75,497 |
Total - Gross Unrealized Loss | -51 |
Corporate Notes And Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Losses Less Than 12 Months - Fair Value | 553,071 |
Unrealized Losses Less Than 12 Months - Gross Unrealized Loss | -963 |
Unrealized Losses 12 Months or Greater - Fair Value | 2,709 |
Unrealized Losses 12 Months or Greater - Gross Unrealized Loss | -10 |
Total - Fair Value | 555,780 |
Total - Gross Unrealized Loss | -973 |
US Treasury and Agencies | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Losses Less Than 12 Months - Fair Value | 189,671 |
Unrealized Losses Less Than 12 Months - Gross Unrealized Loss | -42 |
Total - Fair Value | 189,671 |
Total - Gross Unrealized Loss | -42 |
Government-Sponsored Enterprises | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Losses Less Than 12 Months - Fair Value | 50,215 |
Unrealized Losses Less Than 12 Months - Gross Unrealized Loss | -38 |
Total - Fair Value | 50,215 |
Total - Gross Unrealized Loss | -38 |
Foreign Government Bonds | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Losses Less Than 12 Months - Fair Value | 29,721 |
Unrealized Losses Less Than 12 Months - Gross Unrealized Loss | -39 |
Total - Fair Value | 29,721 |
Total - Gross Unrealized Loss | -39 |
Mortgage Backed Securities - Residential | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Losses Less Than 12 Months - Fair Value | 13,130 |
Unrealized Losses Less Than 12 Months - Gross Unrealized Loss | -52 |
Unrealized Losses 12 Months or Greater - Fair Value | 2,347 |
Unrealized Losses 12 Months or Greater - Gross Unrealized Loss | -92 |
Total - Fair Value | 15,477 |
Total - Gross Unrealized Loss | -144 |
Mortgage Backed Securities - Commercial | |
Schedule of Available-for-sale Securities [Line Items] | |
Unrealized Losses Less Than 12 Months - Fair Value | 100,667 |
Unrealized Losses Less Than 12 Months - Gross Unrealized Loss | -433 |
Unrealized Losses 12 Months or Greater - Fair Value | 22,619 |
Unrealized Losses 12 Months or Greater - Gross Unrealized Loss | -287 |
Total - Fair Value | 123,286 |
Total - Gross Unrealized Loss | ($720) |
Schedule_of_Amortized_Cost_and
Schedule of Amortized Cost and Fair Value of Cash Equivalents, Short-Term Investments and Restricted Investments with Contractual Maturities (Detail) (USD $) | Mar. 29, 2015 |
In Thousands, unless otherwise specified | |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Due in one year or less, cost | $1,596,931 |
Due after one year through five years, cost | 1,724,707 |
Due in more than five years, cost | 364,179 |
Cost | 3,685,817 |
Due in one year or less, estimated fair value | 1,597,205 |
Due after one year through five years, estimated fair value | 1,726,108 |
Due in more than five years, estimated fair value | 363,392 |
Estimated fair value due, Total | $3,686,705 |
Schedule_of_Outstanding_Foreig
Schedule of Outstanding Foreign Currency Forward Contracts (Detail) (USD $) | Mar. 29, 2015 |
Buy Contracts | |
Derivative [Line Items] | |
Derivatives Designated as Hedging Instruments | $32,149,000 |
Derivatives Not Designated as Hedging Instruments | 61,892,000 |
Buy Contracts | Euro | |
Derivative [Line Items] | |
Derivatives Designated as Hedging Instruments | 32,149,000 |
Derivatives Not Designated as Hedging Instruments | 1,804,000 |
Buy Contracts | Korea (South), Won | |
Derivative [Line Items] | |
Derivatives Not Designated as Hedging Instruments | 22,178,000 |
Buy Contracts | Taiwan Dollar | |
Derivative [Line Items] | |
Derivatives Not Designated as Hedging Instruments | 33,239,000 |
Buy Contracts | Singapore Dollar | |
Derivative [Line Items] | |
Derivatives Not Designated as Hedging Instruments | 4,671,000 |
Sell Contracts | |
Derivative [Line Items] | |
Derivatives Designated as Hedging Instruments | 59,529,000 |
Derivatives Not Designated as Hedging Instruments | 39,717,000 |
Sell Contracts | Japanese Yen | |
Derivative [Line Items] | |
Derivatives Designated as Hedging Instruments | 59,529,000 |
Derivatives Not Designated as Hedging Instruments | 26,451,000 |
Sell Contracts | Swiss Francs | |
Derivative [Line Items] | |
Derivatives Not Designated as Hedging Instruments | 2,104,000 |
Sell Contracts | Taiwan Dollar | |
Derivative [Line Items] | |
Derivatives Not Designated as Hedging Instruments | $11,162,000 |
Schedule_of_Fair_Value_of_Deri
Schedule of Fair Value of Derivative Instruments (Detail) (Fair Value Level 2, USD $) | Mar. 29, 2015 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Derivatives, Fair Value | $5,849 | $923 |
Derivatives Designated As Hedging Instruments | Accrued Liabilities | Foreign Exchange Forward Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Derivatives, Fair Value | 4,391 | 805 |
Derivatives Not Designated as Hedging Instruments | Accrued Liabilities | Foreign Exchange Forward Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Liability Derivatives, Fair Value | 1,458 | 118 |
Prepaid Expenses and Other Current Assets | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | 5,765 | 1,592 |
Prepaid Expenses and Other Current Assets | Derivatives Designated As Hedging Instruments | Foreign Exchange Forward Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | 5,711 | 483 |
Prepaid Expenses and Other Current Assets | Derivatives Not Designated as Hedging Instruments | Foreign Exchange Forward Contracts | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Asset Derivatives, Fair Value | $54 | $1,109 |
Schedule_of_Derivative_Instrum
Schedule of Derivative Instruments Designated as Cash Flow Hedges in Statements of Operations Including Accumulated Other Comprehensive Income (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Recognized in AOCI (Effective Portion) | ($10,795) | ($202) | ($1,643) | $9,867 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 1,161 | 3,724 | 4,055 | 11,511 |
Gain (Loss) Recognized (Excluded from Effectiveness Testing) | 259 | 39 | 347 | 137 |
Foreign Exchange Forward Contracts | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Recognized | -908 | -6,527 | 1,178 | 4,512 |
Foreign Exchange Forward Contracts | Located in revenue | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Recognized in AOCI (Effective Portion) | 1,981 | -621 | 13,770 | 7,483 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 3,165 | 2,787 | 8,601 | 8,947 |
Gain (Loss) Recognized (Excluded from Effectiveness Testing) | 68 | 54 | 192 | 232 |
Foreign Exchange Forward Contracts | Cost of Sales | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Recognized in AOCI (Effective Portion) | -3,965 | 307 | -7,252 | 1,717 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -984 | 646 | -2,818 | 1,764 |
Gain (Loss) Recognized (Excluded from Effectiveness Testing) | -25 | -10 | -50 | -66 |
Foreign Exchange Forward Contracts | Located in selling, general, and administrative | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Recognized in AOCI (Effective Portion) | -1,669 | 112 | -3,090 | 667 |
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | -1,039 | 291 | -1,747 | 800 |
Gain (Loss) Recognized (Excluded from Effectiveness Testing) | -15 | -5 | -26 | -29 |
Interest Rate contracts | Other Expenses,net | ||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||||
Gain (Loss) Recognized in AOCI (Effective Portion) | -7,142 | -5,071 | ||
Gain (Loss) Reclassified from AOCI into Income (Effective Portion) | 19 | 19 | ||
Gain (Loss) Recognized (Excluded from Effectiveness Testing) | $231 | $231 |
Schedule_of_Inventories_Detail
Schedule of Inventories (Detail) (USD $) | Mar. 29, 2015 | Jun. 29, 2014 | |
In Thousands, unless otherwise specified | |||
Inventory [Line Items] | |||
Raw materials | $578,304 | $449,623 | |
Work-in-process | 136,274 | 126,564 | |
Finished goods | 205,101 | 164,316 | |
Total inventories | $919,679 | $740,503 | [1] |
[1] | Derived from audited financial statements |
Recovered_Sheet2
Goodwill and Intangible Assets - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||||
Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 | Jun. 29, 2014 | ||
Goodwill And Intangible Assets [Line Items] | ||||||
Goodwill | $1,466,319,000 | $1,466,319,000 | $1,466,225,000 | [1] | ||
Tax deductible goodwill | 61,000,000 | 61,000,000 | ||||
Intangible asset amortization expense | $39,600,000 | $40,400,000 | $118,800,000 | $122,900,000 | ||
[1] | Derived from audited financial statements |
Schedule_of_Intangible_Assets_
Schedule of Intangible Assets (Detail) (USD $) | Mar. 29, 2015 | Jun. 29, 2014 | |
In Thousands, unless otherwise specified | |||
Goodwill And Intangible Assets [Line Items] | |||
Gross intangible assets subject to amortization | $1,339,006 | $1,327,063 | |
Total gross intangible assets | 1,348,106 | 1,347,163 | |
Accumulated Amortization | -571,448 | -453,085 | |
Net intangible assets subject to amortization | 767,558 | 873,978 | |
Intangible assets, net | 776,658 | 894,078 | [1] |
Intangible assets not subject to amortization | 9,100 | 20,100 | |
Customer Relationships | |||
Goodwill And Intangible Assets [Line Items] | |||
Gross intangible assets subject to amortization | 615,377 | 615,618 | |
Accumulated Amortization | -218,505 | -169,162 | |
Net intangible assets subject to amortization | 396,872 | 446,456 | |
Existing Technology | |||
Goodwill And Intangible Assets [Line Items] | |||
Gross intangible assets subject to amortization | 654,385 | 643,922 | |
Accumulated Amortization | -291,705 | -224,246 | |
Net intangible assets subject to amortization | 362,680 | 419,676 | |
Patents | |||
Goodwill And Intangible Assets [Line Items] | |||
Gross intangible assets subject to amortization | 33,553 | 32,253 | |
Accumulated Amortization | -25,899 | -24,407 | |
Net intangible assets subject to amortization | 7,654 | 7,846 | |
Other Intangible Assets | |||
Goodwill And Intangible Assets [Line Items] | |||
Gross intangible assets subject to amortization | 35,691 | 35,270 | |
Accumulated Amortization | -35,339 | -35,270 | |
Net intangible assets subject to amortization | 352 | ||
Development Rights | |||
Goodwill And Intangible Assets [Line Items] | |||
Intangible assets not subject to amortization | 9,100 | 9,100 | |
In Process Research And Development | |||
Goodwill And Intangible Assets [Line Items] | |||
Intangible assets not subject to amortization | $11,000 | ||
[1] | Derived from audited financial statements |
Estimated_Future_Amortization_
Estimated Future Amortization Expense of Intangible Assets (Detail) (USD $) | Mar. 29, 2015 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Finite-Lived Intangible Assets [Line Items] | ||
2015 (3 Months) | $39,235 | |
2016 | 156,033 | |
2017 | 154,130 | |
2018 | 152,918 | |
2019 | 121,988 | |
Thereafter | 143,254 | |
Net intangible assets subject to amortization | $767,558 | $873,978 |
Schedule_of_Accrued_Expenses_a
Schedule of Accrued Expenses and Other Current Liabilities (Detail) (USD $) | Mar. 29, 2015 | Jun. 29, 2014 | |
In Thousands, unless otherwise specified | |||
Schedule of Accrued Liabilities [Line Items] | |||
Accrued compensation | $262,900 | $311,054 | |
Warranty reserves | 87,395 | 68,324 | |
Income and other taxes payable | 10,354 | 93,934 | |
Trade date payable, short-term investments | 57,305 | ||
Dividend payable | 28,714 | 29,240 | |
Other | 142,198 | 101,744 | |
Accrued expenses and other current liabilities | $588,866 | $604,296 | [1] |
[1] | Derived from audited financial statements |
Long_Term_Debt_and_Other_Borro
Long Term Debt and Other Borrowings - Additional Information (Detail) (USD $) | 0 Months Ended | 9 Months Ended | ||||||
Mar. 12, 2015 | Mar. 29, 2015 | Mar. 12, 2014 | Jun. 29, 2014 | 31-May-11 | Jun. 30, 2012 | |||
Debt Instrument [Line Items] | ||||||||
Percentage of principal amount of debt redeemed | 100.00% | |||||||
Senior notes, debt description | The Company may redeem the Senior Notes at par, plus accrued and unpaid interest at any time on or after February 15, 2020 for the 2020 Notes and on or after December 24, 2024 for the 2025 Notes. In addition, upon the occurrence of certain events, as described in the indenture, the Company will be required to make an offer to repurchase the Senior Notes at a price equal to 101% of the principal amount of the Senior Notes, plus accrued and unpaid interest. | |||||||
2.75% Notes due March 15, 2020 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes due | 500,000,000 | $500,000,000 | ||||||
Senior notes interest rate percentage | 2.75% | |||||||
Debt instruments maturity date | 15-Mar-20 | |||||||
Debt instrument redemption date | 15-Feb-20 | |||||||
3.80% Notes due March 15, 2025 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes due | 500,000,000 | 500,000,000 | ||||||
Senior notes interest rate percentage | 3.80% | |||||||
Debt instruments maturity date | 15-Mar-25 | |||||||
Debt instrument redemption date | 15-Dec-24 | |||||||
Revolving credit facility | ||||||||
Debt Instrument [Line Items] | ||||||||
Revolving unsecured credit facility | 300,000,000 | |||||||
Credit Facility Maturity Period | 12-Mar-19 | |||||||
Additional increase in the facility | 200,000,000 | |||||||
Revolving unsecured credit facility maximum borrowing capacity | 500,000,000 | |||||||
Consolidated debt to liquidity | 1,000,000,000 | |||||||
Credit facility outstanding amount | 0 | |||||||
Revolving credit facility | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis spread on variable rate | 0.90% | |||||||
Revolving credit facility | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis spread on variable rate | 1.50% | |||||||
Total consolidated indebtedness to capitalization ratio | 50.00% | |||||||
Revolving credit facility | Prime Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis spread on variable rate | 0.50% | |||||||
Revolving credit facility | Federal Funds Rate | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis spread on variable rate | 0.50% | |||||||
Revolving credit facility | London Interbank Offered Rate (LIBOR) | Minimum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis spread on variable rate | 0.00% | |||||||
Revolving credit facility | London Interbank Offered Rate (LIBOR) | Maximum | ||||||||
Debt Instrument [Line Items] | ||||||||
Debt instrument basis spread on variable rate | 0.50% | |||||||
0.50% Notes due 2016 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes due | 450,000,000 | 450,000,000 | 450,000,000 | |||||
Senior notes interest rate percentage | 0.50% | |||||||
Debt instruments maturity date | 2016 | |||||||
1.25% Notes due 2018 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes due | 450,000,000 | 450,000,000 | 450,000,000 | |||||
Senior notes interest rate percentage | 1.25% | |||||||
Debt instruments maturity date | 2018 | |||||||
2.625% Notes due 2041 | ||||||||
Debt Instrument [Line Items] | ||||||||
Notes due | $699,935,000 | [1] | $699,935,000 | [1] | $700,000,000 | |||
Senior notes interest rate percentage | 2.63% | |||||||
Debt instruments maturity date | 2041 | |||||||
Maximum amount of contingent interest rate | 0.60% | |||||||
[1] | During the quarter-ended March 29, 2015 and June 29, 2014, the market value of the Company's Common Stock was greater than or equal to 130% of the 2041 Note conversion price for 20 or more trading days of the 30 consecutive trading days preceding the quarter end. As a result, the 2041 Notes are convertible at the option of the holder. The carrying amount of the 2041 Notes was classified in current liabilities and the excess of the amount of cash payable, if converted, over the carrying amount of the 2041 Notes was classified as temporary equity on the Company's Consolidated Balance Sheets as of March 29, 2015 and June 29, 2014. Upon closure of a conversion period, all 2041 Notes not converted will be reclassified back to noncurrent liabilities and the temporary equity will be reclassified to permanent equity. |
Components_of_Convertible_Note
Components of Convertible Notes (Detail) (USD $) | 9 Months Ended | |||||
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Jun. 29, 2014 | Jun. 30, 2012 | 31-May-11 | ||
2.625% Notes due 2041 | ||||||
Debt Instrument [Line Items] | ||||||
Carrying value, current portion | $519,366 | [1] | $516,586 | [1] | ||
Unamortized discount | 180,569 | [1] | 183,349 | [1] | ||
Principal amount | 699,935 | [1] | 699,935 | [1] | 700,000 | |
Remaining amortization period (years) | 26 years 1 month 6 days | [1] | ||||
Effective interest rate on liability component | 4.28% | [1] | ||||
Carrying amount of equity component, net of tax | 328,109 | [1] | ||||
Fair Value of Notes (Level 2) | 1,470,612 | [1] | ||||
Conversion rate (shares of common stock per $1,000 principal amount of notes) | 28.7547 | [1] | ||||
Conversion price (per share of common stock) | $34.78 | [1] | ||||
If-converted value in excess of par value | 749,973 | [1] | ||||
0.50% Notes due 2016 | ||||||
Debt Instrument [Line Items] | ||||||
Carrying value, long-term | 431,447 | 419,561 | ||||
Unamortized discount | 18,553 | 30,439 | ||||
Principal amount | 450,000 | 450,000 | 450,000 | |||
Remaining amortization period (years) | 1 year 1 month 6 days | |||||
Effective interest rate on liability component | 4.29% | |||||
Carrying amount of equity component, net of tax | 76,230 | |||||
Fair Value of Notes (Level 2) | 548,825 | |||||
Conversion rate (shares of common stock per $1,000 principal amount of notes) | 16.0228 | |||||
Conversion price (per share of common stock) | $62.41 | |||||
If-converted value in excess of par value | 69,426 | |||||
1.25% Notes due 2018 | ||||||
Debt Instrument [Line Items] | ||||||
Carrying value, long-term | 398,502 | 387,338 | ||||
Unamortized discount | 51,498 | 62,662 | ||||
Principal amount | 450,000 | 450,000 | 450,000 | |||
Remaining amortization period (years) | 3 years 1 month 6 days | |||||
Effective interest rate on liability component | 5.27% | |||||
Carrying amount of equity component, net of tax | 104,895 | |||||
Fair Value of Notes (Level 2) | 586,350 | |||||
Conversion rate (shares of common stock per $1,000 principal amount of notes) | 16.0228 | |||||
Conversion price (per share of common stock) | $62.41 | |||||
If-converted value in excess of par value | $69,426 | |||||
[1] | During the quarter-ended March 29, 2015 and June 29, 2014, the market value of the Company's Common Stock was greater than or equal to 130% of the 2041 Note conversion price for 20 or more trading days of the 30 consecutive trading days preceding the quarter end. As a result, the 2041 Notes are convertible at the option of the holder. The carrying amount of the 2041 Notes was classified in current liabilities and the excess of the amount of cash payable, if converted, over the carrying amount of the 2041 Notes was classified as temporary equity on the Company's Consolidated Balance Sheets as of March 29, 2015 and June 29, 2014. Upon closure of a conversion period, all 2041 Notes not converted will be reclassified back to noncurrent liabilities and the temporary equity will be reclassified to permanent equity. |
Components_of_Convertible_Note1
Components of Convertible Notes (Parenthetical) (Detail) (USD $) | 3 Months Ended | 12 Months Ended | ||
Mar. 29, 2015 | Jun. 29, 2014 | |||
D | D | |||
2.625% Notes due 2041 | ||||
Debt Instrument [Line Items] | ||||
Principal amount of convertible debt conversion increments | $1,000 | [1] | $1,000 | [1] |
Stock price percentage of conversion price | 130.00% | 130.00% | ||
Number of days on which common stock sale price was greater than or equal to 130% of conversion price, in a period of 30 consecutive trading days ending on the last trading day of the preceding the quarter | 20 | 20 | ||
Number of consecutive trading days period required | 30 days | 30 days | ||
0.50% Notes due 2016 | ||||
Debt Instrument [Line Items] | ||||
Principal amount of convertible debt conversion increments | 1,000 | 1,000 | ||
1.25% Notes due 2018 | ||||
Debt Instrument [Line Items] | ||||
Principal amount of convertible debt conversion increments | $1,000 | $1,000 | ||
[1] | During the quarter-ended March 29, 2015 and June 29, 2014, the market value of the Company's Common Stock was greater than or equal to 130% of the 2041 Note conversion price for 20 or more trading days of the 30 consecutive trading days preceding the quarter end. As a result, the 2041 Notes are convertible at the option of the holder. The carrying amount of the 2041 Notes was classified in current liabilities and the excess of the amount of cash payable, if converted, over the carrying amount of the 2041 Notes was classified as temporary equity on the Company's Consolidated Balance Sheets as of March 29, 2015 and June 29, 2014. Upon closure of a conversion period, all 2041 Notes not converted will be reclassified back to noncurrent liabilities and the temporary equity will be reclassified to permanent equity. |
Warrants_and_Convertible_Note_
Warrants and Convertible Note Hedge Arrangements (Detail) (USD $) | 9 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 |
0.50% Notes due 2016 | Warrants | |
Class of Warrant or Right [Line Items] | |
Number of shares available from counterparties | 7,210 |
Exercise price | $70.65 |
Expiration date range | August 15 - October 21, 2016 |
0.50% Notes due 2016 | Convertible Note Hedge | |
Class of Warrant or Right [Line Items] | |
Number of shares available from counterparties | 7,210 |
Exercise price | $62.41 |
1.25% Notes due 2018 | Warrants | |
Class of Warrant or Right [Line Items] | |
Number of shares available from counterparties | 7,210 |
Exercise price | $75.37 |
Expiration date range | August 15 - October 23, 2018 |
1.25% Notes due 2018 | Convertible Note Hedge | |
Class of Warrant or Right [Line Items] | |
Number of shares available from counterparties | 7,210 |
Exercise price | $62.41 |
Components_of_Senior_Notes_Det
Components of Senior Notes (Detail) (USD $) | 3 Months Ended | |
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 12, 2015 |
2.75% Notes due March 15, 2020 | ||
Debt Instrument [Line Items] | ||
Carrying value, long-term | $497,200 | |
Unamortized discount | 2,800 | |
Principal amount | 500,000 | 500,000 |
Remaining amortization period (years) | 5 years | |
Fair Value of Notes (Level 2) | 503,160 | |
3.80% Notes due March 15, 2025 | ||
Debt Instrument [Line Items] | ||
Carrying value, long-term | 496,553 | |
Unamortized discount | 3,447 | |
Principal amount | 500,000 | 500,000 |
Remaining amortization period (years) | 10 years | |
Fair Value of Notes (Level 2) | $501,700 |
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 | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Debt Instrument [Line Items] | ||||
Amortization of discount | $25,867 | $24,652 | ||
2016, 2018, 2020, 2025 and 2041 Notes | ||||
Debt Instrument [Line Items] | ||||
Contractual interest coupon | 8,200 | 6,562 | 21,324 | 19,686 |
Amortization of discount | 8,749 | 8,313 | 25,868 | 24,652 |
Amortization of issuance costs | 603 | 591 | 1,784 | 1,772 |
Amortization of interest rate contracts | 19 | 19 | ||
Total interest cost recognized | $17,571 | $15,466 | $48,995 | $46,110 |
Components_of_Other_Expense_Ne
Components of Other Expense, Net (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Component Of Other Expense Income Nonoperating [Line Items] | ||||
Interest income | $5,100 | $3,110 | $12,412 | $8,661 |
Interest expense | -17,628 | -15,621 | -49,129 | -46,220 |
Gains on deferred compensation plan related assets | 2,816 | 3,137 | 7,825 | 8,534 |
Foreign exchange gains (losses) | 1,562 | -85 | 2,338 | -181 |
Other, net | -3,239 | -396 | -282 | 1,252 |
Other income (expense), net | ($11,389) | ($9,855) | ($26,836) | ($27,954) |
Components_of_Other_Expense_Ne1
Components of Other Expense, Net - Additional Information (Detail) (Novellus Systems Incorporated, USD $) | 9 Months Ended |
In Millions, unless otherwise specified | Mar. 29, 2015 |
Novellus Systems Incorporated | |
Component Of Other Expense Income Nonoperating [Line Items] | |
Net pre-tax gain associated with divestiture | $7.30 |
Income_Tax_Expense_Additional_
Income Tax Expense - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Income Tax [Line Items] | ||||
Income tax (benefit) expense | $22,291 | $17,686 | $45,862 | $34,971 |
Effective income tax rate | 9.80% | 8.00% | ||
U.S. federal statutory tax rate | 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 | 9 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Schedule of Earnings Per Share, Basic and Diluted, by Common Class [Line Items] | ||||
Net income | $206,285 | $164,396 | $524,306 | $398,894 |
Basic average shares outstanding | 158,992 | 162,238 | 159,975 | 161,904 |
Employee stock plans | 3,058 | 2,641 | 3,307 | 2,810 |
Convertible notes | 14,351 | 6,757 | 13,321 | 6,337 |
Warrants | 1,130 | 628 | ||
Diluted average shares outstanding | 177,531 | 171,636 | 177,231 | 171,051 |
Net income per share - basic | $1.30 | $1.01 | $3.28 | $2.46 |
Net income per share - diluted | $1.16 | $0.96 | $2.96 | $2.33 |
Schedule_of_Potentially_Diluti
Schedule of Potentially Dilutive Securities Excluded from EPS Calculations (Detail) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Number of potential dilutive securities excluded | 324 | 75 | 154 | 85 |
Components_of_Accumulated_Othe
Components of Accumulated Other Comprehensive Loss (Detail) (USD $) | 3 Months Ended | 9 Months Ended | |||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance as of June 29, 2014 | ($28,655) | [1] | |||
Other comprehensive income before reclassifications | -26,601 | ||||
Gains reclassified from accumulated other comprehensive income to net income | -7,984 | ||||
Net current-period other comprehensive (loss) income | -17,849 | -11,550 | -34,585 | 1,622 | |
Balance as of March 29, 2015 | -63,240 | -63,240 | |||
Accumulated Foreign Currency Translation Adjustment | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance as of June 29, 2014 | -12,986 | ||||
Other comprehensive income before reclassifications | -26,801 | ||||
Gains reclassified from accumulated other comprehensive income to net income | -3,735 | ||||
Net current-period other comprehensive (loss) income | -30,536 | ||||
Balance as of March 29, 2015 | -43,522 | -43,522 | |||
Accumulated Unrealized Holding Gains (Losses) on Cash Flow Hedges | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance as of June 29, 2014 | -66 | ||||
Other comprehensive income before reclassifications | 485 | ||||
Gains reclassified from accumulated other comprehensive income to net income | -3,942 | [2] | |||
Net current-period other comprehensive (loss) income | -3,457 | ||||
Balance as of March 29, 2015 | -3,523 | -3,523 | |||
Accumulated Unrealized Holding Gains (Losses) on Available-For-Sale Investments | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance as of June 29, 2014 | 1,557 | ||||
Other comprehensive income before reclassifications | -554 | ||||
Gains reclassified from accumulated other comprehensive income to net income | -307 | [3] | |||
Net current-period other comprehensive (loss) income | -861 | ||||
Balance as of March 29, 2015 | 696 | 696 | |||
Accumulated Unrealized Components of Defined Benefit Plans | |||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||||
Balance as of June 29, 2014 | -17,160 | ||||
Other comprehensive income before reclassifications | 269 | ||||
Net current-period other comprehensive (loss) income | 269 | ||||
Balance as of March 29, 2015 | ($16,891) | ($16,891) | |||
[1] | Derived from audited financial statements | ||||
[2] | Amount of after tax gain reclassified from accumulated other comprehensive income into net income located in revenue: $7,670 gain, cost of goods sold: $2,396 loss, selling, general and administrative expenses: $1,321 loss, and other expense, net: $11 loss. | ||||
[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 Loss (Parenthetical) (Detail) (USD $) | 9 Months Ended |
In Thousands, unless otherwise specified | Mar. 29, 2015 |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income | $7,984 |
Reclassified to Revenue | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income | 7,670 |
Reclassified to cost of goods sold | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income | -2,396 |
Reclassified to selling, general, and administrative | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income | -1,321 |
Reclassified To Other Expense | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |
Reclassification from accumulated other comprehensive income | ($11) |
Recovered_Sheet3
Commitments and Contingencies - Additional Information (Detail) (USD $) | 9 Months Ended | ||
Mar. 29, 2015 | Jun. 29, 2014 | ||
Commitments and Contingencies [Line Items] | |||
Restricted collateral for leasing arrangements | $164,300,000 | $146,492,000 | [1] |
Standby Letters of Credit | |||
Commitments and Contingencies [Line Items] | |||
Guarantee Obligation Maximum Exposure | 15,900,000 | ||
Operating Lease Cash Collateral | |||
Commitments and Contingencies [Line Items] | |||
Restricted collateral for leasing arrangements | 132,500,000 | ||
Operating Lease Marketable Securities Collateral | |||
Commitments and Contingencies [Line Items] | |||
Restricted collateral for leasing arrangements | 25,200,000 | ||
Operating Leases | |||
Commitments and Contingencies [Line Items] | |||
Operating Lease residual value of guarantee, maximum | 191,200,000 | ||
Maximum percentage of aggregate investment value guaranteed | 100.00% | ||
Guarantee Obligation Maximum Exposure | $220,000,000 | ||
[1] | Derived from audited financial statements |
Schedule_of_Contractual_Cash_O
Schedule of Contractual Cash Obligations Relating to Operating Leases (Detail) (USD $) | Mar. 29, 2015 |
In Thousands, unless otherwise specified | |
Operating Leased Assets [Line Items] | |
One year | $8,588 |
Two years | 14,411 |
Three years | 12,700 |
Four years | 5,966 |
Five years | 5,169 |
Over five years | 15,056 |
Less: Sublease Income | -1,316 |
Total | $60,574 |
Schedule_of_Changes_in_Product
Schedule of Changes in Product Warranty Reserves (Detail) (USD $) | 3 Months Ended | 9 Months Ended | ||
In Thousands, unless otherwise specified | Mar. 29, 2015 | Mar. 30, 2014 | Mar. 29, 2015 | Mar. 30, 2014 |
Product Warranty Liability [Line Items] | ||||
Balance at beginning of period | $79,031 | $67,413 | $69,385 | $58,078 |
Warranties issued during the period | 33,440 | 25,106 | 86,676 | 67,405 |
Settlements made during the period | -26,596 | -19,686 | -74,652 | -52,958 |
Changes in liability for pre-existing warranties | 1,519 | -258 | 5,985 | 50 |
Balance at end of period | $87,394 | $72,575 | $87,394 | $72,575 |
Stock_Repurchase_Program_Addit
Stock Repurchase Program - Additional Information (Detail) (USD $) | 3 Months Ended | 9 Months Ended | 0 Months Ended | |||||||
Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Mar. 29, 2015 | Mar. 30, 2014 | Oct. 09, 2014 | Apr. 29, 2014 | ||||
Stock Repurchase Program [Line Items] | ||||||||||
Net shares of settlements to cover tax withholding obligations | 115,785 | 525,203 | ||||||||
Amount paid for shares under net share settlements | $9,300,000 | $40,600,000 | ||||||||
Treasury stock purchases | 498,901,000 | 204,610,000 | ||||||||
Total Number of Shares Repurchased | 1,434,000 | 869,000 | 3,818,000 | |||||||
Treasury stock purchases, weighted average share price | $78.45 | [1] | $77.31 | [1] | $70.01 | [1] | ||||
Treasury stock, at cost | 250,000,000 | 250,000,000 | ||||||||
Repurchase Of Equity | Maximum | ||||||||||
Stock Repurchase Program [Line Items] | ||||||||||
Authorized repurchase of Company common stock | 850,000,000 | |||||||||
Share Repurchase Program Final Settlement | ||||||||||
Stock Repurchase Program [Line Items] | ||||||||||
Treasury stock purchases | $250,000,000 | |||||||||
Total Number of Shares Repurchased | 300,000 | |||||||||
Treasury stock purchases, weighted average share price | $72.90 | |||||||||
Share Repurchase Program Final Settlement | Initial delivery | ||||||||||
Stock Repurchase Program [Line Items] | ||||||||||
Total Number of Shares Repurchased | 3,200,000 | |||||||||
[1] | Average price paid per share excludes accelerated share repurchases for which cost was incurred during the September 2014 quarter, but that did not settle until the December 2014 quarter. See 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 | ||||||
Share data in Thousands, except Per Share data, unless otherwise specified | Mar. 29, 2015 | Dec. 28, 2014 | Sep. 28, 2014 | Jun. 29, 2014 | |||
Stock Repurchase Program [Line Items] | |||||||
Total Number of Shares Repurchased | 1,434 | 869 | 3,818 | ||||
Total Cost of Repurchase | $112,477,000 | $45,694,000 | $296,721,000 | ||||
Average Price Paid Per Share | $78.45 | [1] | $77.31 | [1] | $70.01 | [1] | |
Amount Available Under Repurchase Program | $376,002,000 | $488,480,000 | $534,174,000 | $830,895,000 | |||
[1] | Average price paid per share excludes accelerated share repurchases for which cost was incurred during the September 2014 quarter, but that did not settle until the December 2014 quarter. See section below for details regarding average price associated with these transactions. |