Document and Entity Information
Document and Entity Information Document - shares | 6 Months Ended | |
Dec. 26, 2015 | Jan. 15, 2016 | |
DEI [Abstract] | ||
Entity Registrant Name | MAXIM INTEGRATED PRODUCTS INC | |
Entity Central Index Key | 743,316 | |
Trading Symbol | MXIM | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Dec. 26, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Current Fiscal Year End Date | --06-25 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 286,398,344 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 26, 2015 | Jun. 27, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 1,648,518 | $ 1,550,965 |
Short-term Investments | 124,955 | 75,154 |
Total cash, cash equivalents and short-term investments | 1,773,473 | 1,626,119 |
Accounts receivable, net | 231,180 | 278,844 |
Inventories | 274,741 | 288,474 |
Deferred tax assets | 0 | 77,306 |
Other assets current | 47,235 | 49,838 |
Total current assets | 2,326,629 | 2,320,581 |
Property, plant and equipment, net | 770,548 | 1,090,739 |
Intangible assets, net | 202,877 | 261,652 |
Goodwill | 490,648 | 511,647 |
Other assets noncurrent | 64,105 | 35,557 |
Assets Held-for-sale, Not Part of Disposal Group, Current | 82,674 | 8,208 |
TOTAL ASSETS | 3,937,481 | 4,228,384 |
Current liabilities: | ||
Accounts payable | 74,145 | 88,322 |
Income taxes payable | 32,528 | 34,779 |
Accrued salary and related expenses | 129,208 | 181,360 |
Accrued expenses | 47,303 | 48,389 |
Deferred income on shipments to distributors | 32,067 | 30,327 |
Total current liabilities | 315,251 | 383,177 |
Long term debt | 1,000,000 | 1,000,000 |
Income taxes payable | 419,881 | 410,378 |
Deferred tax liabilities | 651 | 90,588 |
Other liabilities | 52,874 | 54,221 |
Total liabilities | $ 1,788,657 | $ 1,938,364 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Common stock and capital in excess of par value | $ 63,014 | $ 28,142 |
Retained earnings | 2,103,339 | 2,279,112 |
Accumulated other comprehensive loss | (17,529) | (17,234) |
Total stockholders' equity | 2,148,824 | 2,290,020 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 3,937,481 | $ 4,228,384 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Income Statement [Abstract] | ||||
Net revenues | $ 510,831 | $ 566,809 | $ 1,073,341 | $ 1,147,084 |
Cost of goods sold | 218,662 | 252,732 | 494,821 | 494,186 |
Gross margin | 292,169 | 314,077 | 578,520 | 652,898 |
Operating expenses: | ||||
Research and development | 113,100 | 135,945 | 234,492 | 276,307 |
Selling, general and administrative | 73,643 | 79,778 | 145,638 | 159,767 |
Amortization of Intangible Assets | 3,538 | 4,155 | 7,129 | 8,482 |
Impairment of Long-Lived Assets to be Disposed of | 1,950 | 50,745 | 159,647 | 60,971 |
Goodwill and Intangible Asset Impairment | 0 | 93,010 | 0 | 93,010 |
Severance and Restructuring Charges | 10,652 | 13,635 | 17,778 | 15,020 |
Other operating (income) expenses, net | (247) | 885 | 68 | 2,459 |
Total operating expenses | 202,636 | 378,153 | 564,752 | 616,016 |
Operating income | 89,533 | (64,076) | 13,768 | 36,882 |
Interest and other expense, net | (9,593) | (7,599) | (15,995) | (14,076) |
Income before provision for income taxes | 79,940 | (71,675) | (2,227) | 22,806 |
Provision for income taxes | 12,471 | 359 | 2,447 | (5,140) |
Net income | $ 67,469 | $ (72,034) | $ (4,674) | $ 27,946 |
Earnings per share: | ||||
Basic (per share) | $ 0.24 | $ (0.25) | $ (0.02) | $ 0.10 |
Diluted (per share) | $ 0.23 | $ (0.25) | $ (0.02) | $ 0.10 |
Shares used in the calculation of earnings per share: | ||||
Basic (in shares) | 285,526 | 282,992 | 285,057 | 283,539 |
Diluted (in shares) | 290,521 | 282,992 | 285,057 | 288,876 |
Dividends paid per share | $ 0.30 | $ 0.28 | $ 0.60 | $ 0.56 |
Condensed Consolidated Stateme4
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Statements of Income and Comprehensive Income [Abstract] | ||||
Net income | $ 67,469 | $ (72,034) | $ (4,674) | $ 27,946 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | (359) | (83) | (283) | (108) |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 258 | 472 | (356) | (1,103) |
Unrealized gains (losses) on post-retirement benefits, net of tax benefit (expense) | 172 | 238 | 344 | 477 |
Tax effect of the unrealized exchange gain (loss) on long-term intercompany receivables | 0 | (92) | 0 | (632) |
Other Comprehensive Income (Loss), Net of Tax | 71 | 535 | (295) | (1,366) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 67,540 | (71,499) | (4,969) | 26,580 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 0 | 0 | 0 | 0 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (22) | (89) | 170 | 381 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | $ (81) | $ (121) | $ (161) | $ (242) |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 26, 2015 | Dec. 27, 2014 | |
Cash flows from operating activities: | ||
Net income | $ (4,674) | $ 27,946 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 35,382 | 43,196 |
Depreciation and amortization | 151,135 | 135,318 |
Deferred taxes | (34,295) | (24,642) |
Loss on sale of property, plant and equipment | (5,863) | 2,088 |
Tax benefit (shortfall) related to stock-based compensation plans | 3,173 | 1,381 |
Impairment of Long-Lived Assets to be Disposed of | 159,647 | 60,971 |
Goodwill and Intangible Asset Impairment | 0 | 93,010 |
Excess tax benefit related to stock-based compensation | (6,169) | (4,180) |
Changes in assets and liabilities: | ||
Accounts receivable | 47,664 | 37,322 |
Inventories | 13,644 | (17,136) |
Other current assets and income tax refund receivable | 3,878 | (23,965) |
Accounts payable | (17,435) | (7,552) |
Income taxes payable | 7,252 | 546 |
Deferred income on shipments to distributors | 1,740 | 1,369 |
All other accrued liabilities | (55,251) | (35,820) |
Net cash provided by operating activities | 299,828 | 289,852 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (29,351) | (50,271) |
Proceeds from sale of property, plant, and equipment | 50,315 | 24,679 |
Payments to Acquire Available-for-sale Securities | (50,087) | (25,142) |
Payments to Acquire Investments | (7,008) | 0 |
Payments for (Proceeds from) Other Investing Activities | 2,380 | 0 |
Net cash used in investing activities | (33,751) | (50,734) |
Cash flows from financing activities: | ||
Excess tax benefit related to stock-based compensation | 6,169 | 4,180 |
Repayment of notes payable | 0 | (437) |
Net issuance of restricted stock units | (12,544) | (14,860) |
Proceeds from stock options exercised | 57,447 | 18,027 |
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 14,350 | 18,653 |
Repurchase of common stock | (62,847) | (122,351) |
Dividends paid | (171,099) | (158,932) |
Net cash used in financing activities | (168,524) | (255,720) |
Net decrease in cash and cash equivalents | 97,553 | (16,602) |
Cash and cash equivalents: | ||
Beginning of period | 1,550,965 | 1,322,472 |
End of period | 1,648,518 | 1,305,870 |
Supplemental disclosures of cash flow information: | ||
Cash paid (refunded), net during the period for income taxes | 24,520 | 21,283 |
Cash paid for interest | 14,693 | 14,712 |
Noncash investing and financing activities: | ||
Accounts payable related to property, plant, and equipment purchases | $ 8,179 | $ 2,476 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Dec. 26, 2015 | |
Basis of Presentation [Abstract] | |
Basis of Presentation [Text Block] | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Maxim Integrated Products, Inc. and all of its majority-owned subsidiaries (collectively, the “Company” or “Maxim Integrated”) included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles of the United States of America (“GAAP”) have been condensed or omitted pursuant to applicable rules and regulations. In the opinion of management, all adjustments of a normal recurring nature which were considered necessary for fair presentation have been included. The year-end condensed consolidated balance sheet data were derived from audited consolidated financial statements but do not include all disclosures required by GAAP. The results of operations for the six months ended December 26, 2015 are not necessarily indicative of the results to be expected for the entire year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Annual Report on Form 10-K for the fiscal year ended June 27, 2015 . The Company has a 52-to-53-week fiscal year that ends on the last Saturday in June. Accordingly, every fifth or sixth fiscal year will be a 53-week fiscal year. Fiscal year 2015 was a 52-week fiscal years and fiscal year 2016 will also be a 52-week fiscal year. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 6 Months Ended |
Dec. 26, 2015 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements [Text Block] | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (i) New Accounting Updates Recently Adopted In April 2014, the FASB issued ASU No. 2014-08, Reporting Discontinued Operations and Disclosures of Disposals of Components of an Entity . ASU No. 2014-08 redefines discontinued operations as disposals representing a strategic shift in operations and having a major effect on the organization’s operations and financial results. The Company early adopted this accounting standard update in the fourth quarter of fiscal year 2015. In November 2015, the FASB issued ASU No. 2015-17, Balance Sheet Classification of Deferred Taxes , which eliminates the current requirement to present deferred tax assets and liabilities as current and noncurrent in a classified balance sheet. Instead, entities will be required to classify all deferred tax assets and liabilities as noncurrent. The Company early adopted this accounting standard update, on a prospective basis, at the beginning of the second quarter of fiscal year 2016. All deferred tax assets and liabilities as of December 26, 2015 , have been classified as noncurrent in the accompanying Condensed Consolidated Balance Sheets and the notes thereto. The adoption at the beginning of the quarter resulted in a $50.6 million decrease in current deferred tax assets, a $40.7 million increase in other assets and a $9.9 million decrease to non-current deferred tax liabilities. No prior periods were retrospectively adjusted. (ii) Recent Accounting Updates Not Yet Effective In May 2014, the FASB issued ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606) . ASU No. 2014-09 uses a five-step model to determine revenue recognition in contracts with customers. The Company is currently evaluating the potential impact of this standard on its financial statements. ASU No. 2014-09 is effective for the Company in the first quarter of fiscal year 2019 using either of two methods: (i) retrospective to each prior reporting period presented with the option to elect certain practical expedients as defined within ASU No. 2014-09; or (ii) retrospective with the cumulative effect of initially applying ASU No. 2014-09 recognized at the date of initial application and providing certain additional disclosures as defined per ASU No. 2014-09. Early adoption in the first quarter of fiscal year 2018 is permitted. In April 2015, the FASB issued ASU No. 2015-03, Interest - Imputation of Interest . ASU No. 2015-03 changes the presentation of debt issuance costs in financial statements. Under the new guidance, an entity presents such costs in the balance sheet as a direct deduction from the related debt liability rather than as an asset. Amortization of the costs is reported as interest expense. This guidance is effective beginning in the first quarter of fiscal year 2017 and early adoption is permitted in an interim period with any adjustments reflected as of the beginning of the fiscal year that includes that interim period. The company does not believe the guidance will result in a material impact to its consolidated financial statements. In July 2015, the FASB issued ASU No. 2015-11, Inventory (Topic 330): Simplifying the Measurement of Inventory , which changes the measurement principle for inventory from the lower of cost or market to the lower of cost and net realizable value. ASU No. 2015-11 defines net realizable value as estimated selling prices in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The new guidance must be applied on a prospective basis and is effective for the Company in the first quarter of fiscal year 2017, with early adoption permitted. The Company does not believe the implementation of this standard will result in a material impact to its consolidated financial statements. In January 2016, the FASB issued ASU 2016-01, Recognition and Measurement of Financial Assets and Financial Liabilities , which provides guidance for the recognition, measurement, presentation, and disclosure of financial assets and liabilities. This ASU will be effective for the Company beginning in the first quarter of fiscal year 2019. The Company is evaluating the effects of the adoption of this ASU to its financial statements. |
Balance Sheet Components
Balance Sheet Components | 6 Months Ended |
Dec. 26, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components [Text Block] | BALANCE SHEET COMPONENTS Accounts receivable, net consists of: December 26, June 27, Accounts Receivable: (in thousands) Accounts receivable $ 247,468 $ 297,130 Returns and allowances (16,288 ) (18,286 ) $ 231,180 $ 278,844 Inventories consist of: December 26, June 27, Inventories: (in thousands) Raw materials $ 12,611 $ 12,932 Work-in-process 178,650 199,716 Finished goods 83,480 75,826 $ 274,741 $ 288,474 Property, plant and equipment, net consists of: December 26, June 27, Property, plant and equipment: (in thousands) Land $ 24,631 $ 45,040 Buildings and building improvements 275,823 338,394 Machinery and equipment 1,431,786 1,970,819 1,732,240 2,354,253 Less: accumulated depreciation and amortization (961,692 ) (1,263,514 ) $ 770,548 $ 1,090,739 Other assets consist of: December 26, June 27, Other assets: (in thousands) Licenses 9,002 8,665 Deferred taxes 23,120 1,447 Other 31,983 25,445 $ 64,105 $ 35,557 Assets held for sale consist of: As of December 26, 2015 , assets held for sale primarily consist of land, building and equipment for the Company's wafer manufacturing facility in San Antonio, classified as held for sale during the first quarter of fiscal 2016. In addition, assets held for sale consist of goodwill, intangible assets and equipment of certain business units classified as held for sale during the second quarter of fiscal 2016. As of June 27, 2015, assets held for sale consisted of land and buildings related to the Company's manufacturing facility in Batangas, the Philippines. This facility was sold in the second quarter of fiscal 2016. December 26, June 27, Assets held for sale: (in thousands) Property, plant and equipment, less accumulated depreciation $ 41,402 $ 8,208 Goodwill 20,999 — Identifiable intangible assets, less accumulated amortization 20,273 — $ 82,674 $ 8,208 Accrued salary and related expenses consist of: December 26, June 27, Accrued salary and related expenses: (in thousands) Accrued vacation $ 35,033 $ 36,906 Accrued bonus 41,691 86,506 Accrued severance and post-employment benefits 19,933 25,136 Accrued salaries 15,511 16,572 Accrued fringe 6,106 6,007 Other 10,934 10,233 129,208 $ 181,360 Accrued expenses consist of: December 26, June 27, Accrued expenses: (in thousands) Accrued self-insurance $ 9,040 $ 10,882 Accrued contract settlement 10,691 10,691 Accrued interest 6,660 6,660 Other 20,912 20,156 $ 47,303 $ 48,389 |
Fair Value Measurements
Fair Value Measurements | 6 Months Ended |
Dec. 26, 2015 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurements [Text Block] | FAIR VALUE MEASUREMENTS The FASB established a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. This hierarchy requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value. Three levels of inputs that may be used to measure fair value are as follows: Level 1 - Quoted (unadjusted) prices in active markets for identical assets or liabilities. The Company’s Level 1 assets consist of money market funds. Level 2 - Observable inputs other than quoted prices included in Level 1, such as quoted prices for similar assets or liabilities in active markets, quoted prices for identical or similar assets or liabilities in markets that are not active, or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the asset or liability. The Company’s Level 2 assets and liabilities consist of U.S. treasury bills and foreign currency forward contracts that are valued using quoted market prices or are determined using a yield curve model based on current market rates. As a result, the Company has classified these investments as Level 2 in the fair value hierarchy. Level 3 - Unobservable inputs to the valuation methodology that are significant to the measurement of the fair value of the assets or liabilities. The Company did not hold any Level 3 assets or liabilities as of December 26, 2015 and June 27, 2015. Assets and liabilities measured at fair value on a recurring basis were as follows: As of December 26, 2015 As of June 27, 2015 Fair Value Measurements Using Total Balance Fair Value Measurements Using Total Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Assets Money market funds (1) $ 1,230,289 $ — $ — $ 1,230,289 $ 1,156,239 $ — $ — $ 1,156,239 U.S. treasury bills (2) — 124,955 — 124,955 — 75,154 — 75,154 Foreign currency forward contracts (3) — 226 — 226 — 679 — 679 Total Assets $ 1,230,289 $ 125,181 $ — $ 1,355,470 $ 1,156,239 $ 75,833 $ — $ 1,232,072 Liabilities Foreign currency forward contracts (4) $ — $ 674 $ — $ 674 $ — $ 613 $ — $ 613 Total Liabilities $ — $ 674 $ — $ 674 $ — $ 613 $ — $ 613 (1) Included in Cash and cash equivalents in the accompanying Condensed Consolidated Balance Sheets. (2) Included in Short-term investments in the accompanying Condensed Consolidated Balance Sheets. (3) Included in Other current assets in the accompanying Condensed Consolidated Balance Sheets. (4) Included in Accrued expenses in the accompanying Condensed Consolidated Balance Sheets. The tables below present reconciliations for liabilities measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended December 26, 2015 and December 27, 2014 : Fair Value Measured and Recorded Using Significant Unobservable Inputs (Level 3) December 26, December 27, Contingent Consideration (in thousands) Beginning balance $ — $ 3,215 Total gains or losses (realized and unrealized): Included in earnings — 384 Payments — (3,599 ) Ending balance $ — $ — Changes in unrealized losses (gains) included in earnings related to liabilities still held as of period end $ — $ — During the six months ended December 26, 2015 and December 27, 2014 , there were no transfers in or out of Level 3 from other levels in the fair value hierarchy. There were no assets or liabilities measured at fair value on a non-recurring basis as of December 26, 2015 and June 27, 2015 other than impairments of Long-Lived assets. For details, please refer to Note 14: “Impairment of long-lived assets”. |
Financial Instruments
Financial Instruments | 6 Months Ended |
Dec. 26, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments [Text Block] | FINANCIAL INSTRUMENTS Short-term investments Fair values were as follows: December 26, 2015 June 27, 2015 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value (in thousands) Available-for-sale investments U.S. Treasury notes $ 125,105 $ — $ 150 $ 124,955 $ 75,022 $ 132 $ — $ 75,154 Total available-for-sale investments $ 125,105 $ — $ 150 $ 124,955 $ 75,022 $ 132 $ — $ 75,154 In the six months ended December 26, 2015 and the year ended June 27, 2015 , the Company did not recognize any impairment charges on short-term investments. The U.S. Treasury notes have maturity dates between May 15, 2016 and December 15, 2017. Derivative instruments and hedging activities The Company incurs expenditures denominated in non-U.S. currencies, primarily the Philippine Peso and the Thai Baht associated with the Company's manufacturing activities in the Philippines and Thailand, respectively, and European Union Euro, South Korean Won, and Japanese Yen expenditures for sales offices and research and development activities undertaken outside of the U.S. The Company has established a program that primarily utilizes foreign currency forward contracts to offset the risks associated with the effects of certain foreign currency exposures. The Company does not use these foreign currency forward contracts for trading purposes. Derivatives designated as cash flow hedging instruments The Company designates certain forward contracts as hedging instruments pursuant to Accounting Standards Codification (“ASC”) No. 815-Derivatives and Hedging (“ASC 815”). As of December 26, 2015 and June 27, 2015 , the notional amounts of the forward contracts the Company held to purchase international currencies were $44.0 million and $54.2 million , respectively, and the notional amounts of forward contracts the Company held to sell international currencies were $2.7 million and $3.7 million , respectively. Derivatives not designated as hedging instruments As of December 26, 2015 and June 27, 2015 , the notional amounts of the forward contracts the Company held to purchase international currencies were $23.8 million and $31.1 million , respectively, and the notional amounts of forward contracts the Company held to sell international currencies were $24.1 million and $28.2 million , respectively. The fair values of our outstanding foreign currency forward contracts and amounts included in the Condensed Consolidated Statement of Income were not material for the six months ended December 26, 2015 and the year ended June 27, 2015 . Long-term debt The following table summarizes the Company’s long-term debt: December 26, June 27, (in thousands) 2.5% fixed rate notes due November 2018 $ 500,000 $ 500,000 3.375% fixed rate notes due March 2023 500,000 500,000 Notes denominated in Euro Term fixed rate notes (2.0%) due on September 30, 2015 — 1,024 Total 1,000,000 1,001,024 Less: Current portion (included in “Accrued expenses”) — (1,024 ) Total long-term debt $ 1,000,000 $ 1,000,000 On November 21, 2013, the Company completed a public offering of $500 million aggregate principal amount of the Company’s 2.5% coupon senior unsecured and unsubordinated notes due in November 2018 (“2018 Notes”), with an effective interest rate of 2.6% . Interest on the 2018 Notes is payable semi-annually in arrears on May 15 and November 15 of each year, commencing on May 15, 2014. The net proceeds of this offering were approximately $494.5 million , after issuing at a discount and deducting paid expenses. On March 18, 2013, the Company completed a public offering of $500 million aggregate principal amount of the Company’s 3.375% senior unsecured and unsubordinated notes due in March 2023 (“2023 Notes”), with an effective interest rate of 3.5% . Interest on the 2023 Notes is payable semi-annually in arrears on March 15 and September 15 of each year. The net proceeds of this offering were approximately $490.0 million , after issuing at a discount and deducting paid expenses. The Company accounts for all the notes above based on their amortized cost. The discount and expenses are being amortized to Interest and other income (expense), net in the Condensed Consolidated Statements of Income over the life of the notes. The interest expense is recorded in Interest and other income (expense), net in the Condensed Consolidated Statements of Income. Amortized discount and expenses, as well as interest expense associated with the notes was $8.2 million and $8.0 million during the three months ended December 26, 2015 and December 27, 2014 , respectively. The estimated fair value of the Company’s debt was approximately $995 million as of December 26, 2015 . The estimated fair value of the debt is based primarily on observable market inputs and is a Level 2 measurement. Credit Facility The Company has access to a $350 million senior unsecured revolving credit facility with certain institutional lenders that expires on June 27, 2019. The facility fee is at a rate per annum that varies based on the Company’s index debt rating and any advances under the credit agreement will accrue interest at a base rate plus a margin based on the Company’s index debt rating. The credit agreement requires the Company to comply with certain covenants, including a requirement that the Company maintain a ratio of debt to EBITDA (earnings before interest, taxes, depreciation, and amortization) of not more than 3 to 1 and a minimum interest coverage ratio (EBITDA divided by interest expense) greater than 3.5 to 1 . As of December 26, 2015 , the Company had not borrowed any amounts from this credit facility and was in compliance with all debt covenants. Other Financial Instruments For the balance of the Company’s financial instruments, cash equivalents, accounts receivable, accounts payable and other accrued liabilities, the carrying amounts approximate fair value due to their short maturities. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Dec. 26, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation [Text Block] | STOCK-BASED COMPENSATION At December 26, 2015 , the Company had one stock incentive plan, the Company's Amended and Restated 1996 Stock Incentive Plan (the “1996 Plan”) and one employee stock purchase plan, the 2008 Employee Stock Purchase Plan (the “2008 ESP Plan”). The 1996 Plan was adopted by the Board of Directors to provide the grant of stock options, restricted stock units (“RSUs”), and restricted stock and performance shares, including market stock units (“MSUs”) to employees, directors, and consultants. Pursuant to the 1996 Plan, the exercise price for all stock options is determined to be the fair market value of the underlying shares on the date of grant. Options typically vest ratably over a four-year period measured from the date of grant. Stock options expire no later than ten years after the date of grant, subject to earlier termination upon an optionee's cessation of employment or service. RSUs granted to employees typically vest ratably over a four-year period and are converted into shares of the Company's common stock upon vesting, subject to the employee's continued service to the Company over that period. MSUs granted to employees have a four-year measurement period and are converted into shares of the Company's common stock at the end of the measurement period and upon vesting, subject to the employee's continued service to the Company over that period. The number of shares that are released at the end of the performance period can range from zero to a maximum cap of two hundred percent (200%) of target depending on the Company's performance in comparison to the Semiconductor Exchange Traded Fund index, (the “XSD”). The performance metrics of this program are based on relative performance of the Company’s stock price as compared to the XSD during the measurement period. The following tables show total stock-based compensation expense by type of award, and the resulting tax effect, included in the Condensed Consolidated Statements of Income for the three and six months ended December 26, 2015 and December 27, 2014 , respectively: Three Months Ended December 26, 2015 December 27, 2014 Stock Options Restricted Stock Units Employee Stock Purchase Plan Total Stock Options Restricted Stock Units Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 279 $ 1,970 $ 621 $ 2,870 $ 362 $ 2,076 $ 550 $ 2,988 Research and development 843 7,210 1,085 9,138 1,587 8,415 1,219 11,221 Selling, general and administrative 802 5,138 471 6,411 1,029 5,038 500 6,567 Pre-tax stock-based compensation expense $ 1,924 $ 14,318 $ 2,177 $ 18,419 $ 2,978 $ 15,529 $ 2,269 $ 20,776 Less: income tax effect 3,295 3,365 Net stock-based compensation expense $ 15,124 $ 17,411 Six Months Ended December 26, 2015 December 27, 2014 Stock Options Restricted Stock Units Employee Stock Purchase Plan Total Stock Options Restricted Stock Units Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 614 3,958 1,180 $ 5,752 $ 701 $ 4,050 $ 1,074 $ 5,825 Research and development 1,713 13,084 2,382 17,179 3,734 17,247 2,562 23,543 Selling, general and administrative 1,620 9,764 1,067 12,451 2,458 10,262 1,108 13,828 Pre-tax stock-based compensation expense $ 3,947 $ 26,806 $ 4,629 $ 35,382 $ 6,893 $ 31,559 $ 4,744 $ 43,196 Less: income tax effect 6,057 6,637 Net stock-based compensation expense $ 29,325 $ 36,559 The expenses included in the Condensed Consolidated Statements of Income related to RSUs include expenses related to MSUs of $0.8 million and $0.6 million for the three months ended December 26, 2015 and December 27, 2014 , respectively and $1.3 million and $0.9 million for the six months ended December 26, 2015 and December 27, 2014 , respectively. Stock Options The fair value of options granted to employees under the 1996 Plan is estimated on the date of grant using the Black-Scholes option valuation model. Expected volatilities are based on the historical volatilities from the Company’s traded common stock over a period equal to the expected term. The Company is utilizing the simplified method to estimate expected holding periods. The risk-free interest rate is based on the U.S. Treasury yield. The Company determines the dividend yield by dividing the annualized dividends per share by the prior quarter’s average stock price. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis. The fair value of options granted to employees has been estimated using the following weighted-average assumptions: Stock Options Three Months Ended Six Months Ended December 26, December 27, December 26, December 27, Expected holding period (in years) 0.0 5.0 0.0 4.8 Risk-free interest rate — % 1.7 % — % 1.6 % Expected stock price volatility — % 26.8 % — % 26.7 % Dividend yield — % 3.5 % — % 3.2 % There were no stock options granted in the three and six months ended December 26, 2015 . The weighted-average fair value of stock options granted was $4.79 and $5.56 per share for the three and six months ended December 27, 2014 , respectively. The following table summarizes outstanding, exercisable and vested and expected to vest stock options as of December 26, 2015 and their activity for the six months ended December 26, 2015 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (1) Balance at June 27, 2015 10,173,016 $ 25.83 Options Granted — — Options Exercised (2,198,354 ) 26.25 Options Cancelled (689,633 ) 33.47 Balance at December 26, 2015 7,285,029 $ 24.98 3.3 $ 98,360,731 Exercisable, December 26, 2015 3,547,516 $ 21.89 2.2 $ 58,325,173 Vested and expected to vest, December 26, 2015 7,092,264 $ 24.86 3.2 $ 95,523,711 (1) Aggregate intrinsic value represents the difference between the exercise price and the closing price per share of the Company’s common stock on December 24, 2015, the last business day preceding the fiscal quarter-end, multiplied by the number of options outstanding, exercisable or vested and expected to vest as of December 26, 2015. As of December 26, 2015 , there was $11.5 million of total unrecognized stock compensation cost related to 3.7 million unvested stock options, which is expected to be recognized over a weighted average period of approximately 2.2 years. Restricted Stock Units and Other Awards The fair value of RSUs and other awards under the Company’s 1996 Plan is estimated using the value of the Company’s common stock on the date of grant, reduced by the present value of dividends expected to be paid on the Company’s common stock prior to vesting. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis. The weighted-average fair value of RSUs and other awards granted was $36.14 and $27.24 per share for the three months ended December 26, 2015 and December 27, 2014 , respectively. The weighted-average fair value of RSUs and other awards granted was $28.70 and $27.18 per share for the six months ended December 26, 2015 and December 27, 2014 , respectively. The following table summarizes the outstanding and expected to vest RSUs and other awards as of December 26, 2015 and their activity during the six months ended December 26, 2015 : Number of Shares Weighted Average Aggregate Intrinsic Value (1) Balance at June 27, 2015 7,129,985 Restricted stock units and other awards granted 2,303,680 Restricted stock units and other awards released (1,005,291 ) Restricted stock units and other awards cancelled (754,853 ) Balance at December 26, 2015 7,673,521 2.9 $ 293,743,258 Outstanding and expected to vest, December 26, 2015 6,546,450 2.8 $ 248,084,773 (1) Aggregate intrinsic value for RSUs and other awards represents the closing price per share of the Company’s common stock on December 24, 2015, the last business day preceding the fiscal quarter-end, multiplied by the number of RSUs outstanding or expected to vest as of December 26, 2015. The Company withheld shares totaling $7.7 million and $12.5 million in value as a result of employee withholding taxes based on the value of the RSUs on their vesting date for the three and six months ended December 26, 2015 , respectively. The total payments for the employees’ tax obligations to the taxing authorities are reflected as financing activities within the Condensed Consolidated Statements of Cash Flows. As of December 26, 2015 , there was $152.9 million of unrecognized compensation expense related to 7.7 million unvested RSUs and other awards, which is expected to be recognized over a weighted average period of approximately 2.9 years. Market Stock Units The Company granted MSUs to senior members of management in September 2014 and September 2015. The grant of MSUs was in lieu of granting stock options. MSUs are valued based on the relative performance of the Company’s stock price as compared to the XSD. The fair value of MSUs is estimated using a Monte Carlo simulation model on the date of grant. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis. Compensation expense is recognized based on the initial valuation and is not subsequently adjusted as a result of the Company’s performance relative to that of the XSD index. Vesting for MSUs is contingent upon both service and market conditions, which is over a four-year period. There were no MSUs granted for the three months ended December 26, 2015 and December 27, 2014 . The weighted-average fair value of MSUs granted was $29.64 and $15.64 per share for the six months ended December 26, 2015 and December 27, 2014 , respectively. The following table summarizes the number of MSUs outstanding and expected to vest as of December 26, 2015 and their activity during the six months ended December 26, 2015 : Number of Shares Weighted Average Aggregate Intrinsic Value (1) Balance at June 27, 2015 414,840 Market stock units granted 361,684 Market stock units released — Market stock units cancelled (76,560 ) Balance at December 26, 2015 699,964 3.4 $ 26,829,620 Outstanding and expected to vest, December 26, 2015 566,843 3.4 $ 21,727,097 (1) Aggregate intrinsic value for MSUs represents the closing price per share of the Company’s common stock on December 24, 2015, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of December 26, 2015. As of December 26, 2015 , there was $13.9 million of unrecognized compensation expense related to 0.7 million unvested MSUs, which is expected to be recognized over a weighted average period of approximately 3.4 years. Employee Stock Purchase Plan Employees are granted rights to acquire common stock under the Company’s 2008 Employee Stock Purchase Plan (the “ESPP”). The fair value of ESPP granted to employees has been estimated at the date of grant using the Black-Scholes option valuation model and the following weighted-average assumptions: ESPP Three Months Ended Six Months Ended December 26, December 27, December 26, December 27, Expected holding period (in years) 0.5 0.5 0.5 0.5 Risk-free interest rate 0.4 % 0.1 % 0.4 % 0.1 % Expected stock price volatility 33.1 % 26.4 % 33.1 % 26.4 % Dividend yield 3.6 % 3.5 % 3.6 % 3.5 % As of December 26, 2015 and December 27, 2014 , there was $7.5 million and $7.7 million , respectively, of unrecognized compensation expense related to the ESPP. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Dec. 26, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share are computed using the weighted average number of shares of common stock outstanding during the period. For purposes of computing basic earnings (loss) per share, the weighted average number of outstanding shares of common stock excludes unvested RSUs, including MSUs. Diluted earnings (loss) per share incorporates the incremental shares issuable upon the assumed exercise of stock options, assumed release of unvested RSUs, Performance Shares, including MSUs and assumed issuance of common stock under the employee stock purchase plans using the treasury stock method. The following table sets forth the computation of basic and diluted earnings (loss) per share: Three Months Ended Six Months Ended December 26, December 27, December 26, December 27, (in thousands, except per share data) Numerator for basic earnings (loss) per share and diluted earnings (loss) per share Net income (loss) $ 67,469 $ (72,034 ) $ (4,674 ) $ 27,946 Denominator for basic earnings (loss) per share 285,526 282,992 285,057 283,539 Effect of dilutive securities: Stock options, ESPP, RSUs, and MSUs 4,995 — — 5,337 Denominator for diluted earnings (loss) per share 290,521 282,992 285,057 288,876 Earnings (loss) per share Basic $ 0.24 $ (0.25 ) $ (0.02 ) $ 0.10 Diluted $ 0.23 $ (0.25 ) $ (0.02 ) $ 0.10 The Company had a net loss for the three months ended December 27, 2014 , accordingly all incremental shares totaling 5.8 million shares were determined to be anti-dilutive. The Company had a net loss for the six months ended December 26, 2015 , accordingly all incremental shares totaling 5.6 million shares were determined to be anti-dilutive. Approximately 0.1 million stock options were excluded from the calculation of diluted earnings per share for the three months ended December 26, 2015 . Approximately 5.9 million stock options were excluded from the calculation of diluted earnings per share for the six months ended December 27, 2014 . These options were excluded because they were determined to be anti-dilutive. However, such options could be dilutive in the future and, under those circumstances, would be included in the calculation of diluted earnings per share. |
Segment Information
Segment Information | 6 Months Ended |
Dec. 26, 2015 | |
Segment Reporting [Abstract] | |
Segment Information [Text Block] | SEGMENT INFORMATION The Company designs, develops, manufactures and markets a broad range of linear and mixed signal integrated circuits. The Company currently has one operating segment. In accordance with ASC No. 280, Segment Reporting (“ASC 280”), the Company considers operating segments to be components of the Company’s business for which separate financial information is available that is evaluated regularly by the Company’s Chief Operating Decision Maker in deciding how to allocate resources and in assessing performance. The Chief Operating Decision Maker for the Company was assessed and determined to be the CEO. The CEO reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has a single operating and reportable segment. Enterprise-wide information is provided in accordance with ASC 280. Geographical revenue information is based on customers’ ship-to location. Long-lived assets consist of property, plant and equipment. Property, plant and equipment information is based on the physical location of the assets at the end of each fiscal year. Net revenues by geographic region was as follows: Three Months Ended Six Months Ended December 26, December 27, December 26, December 27, (in thousands) United States $ 61,633 $ 70,336 $ 123,693 $ 144,931 China 197,420 242,303 421,657 482,320 Rest of Asia 153,203 155,388 323,137 320,820 Europe 85,951 80,992 177,854 164,957 Rest of World 12,624 17,790 27,000 34,056 $ 510,831 $ 566,809 $ 1,073,341 $ 1,147,084 Net long-lived assets by geographic region were as follows: December 26, June 27, (in thousands) United States $ 455,051 $ 783,148 Philippines 181,140 166,405 Thailand 52,175 56,776 Rest of World 82,182 84,410 $ 770,548 $ 1,090,739 |
Comprehensive Income Loss
Comprehensive Income Loss | 6 Months Ended |
Dec. 26, 2015 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income [Text Block] | COMPREHENSIVE INCOME (LOSS) The changes in accumulated other comprehensive loss by component and related tax effects in the six months ended December 26, 2015 and December 27, 2014 were as follows: (in thousands) Unrealized Gains and Losses on Intercompany Receivables Unrealized Gains and Losses on Post-Retirement Benefits Cumulative Translation Adjustment Unrealized Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-For-Sale Securities Total June 27, 2015 $ (6,280 ) $ (10,004 ) $ (1,136 ) $ 53 $ 133 $ (17,234 ) Other comprehensive income (loss) before reclassifications — — — (941 ) (283 ) (1,224 ) Amounts reclassified out of accumulated other comprehensive loss (income) — 505 — 415 — 920 Tax effects — (161 ) — 170 — 9 Other comprehensive income (loss) — 344 — (356 ) (283 ) (295 ) December 26, 2015 $ (6,280 ) $ (9,660 ) $ (1,136 ) $ (303 ) $ (150 ) $ (17,529 ) (in thousands) Unrealized Gains and Losses on Intercompany Receivables Unrealized Gains and Losses on Post-Retirement Benefits Cumulative Translation Adjustment Unrealized Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-For-Sale Securities Total June 28, 2014 $ (5,753 ) $ (10,373 ) $ (1,136 ) $ (11 ) $ 100 $ (17,173 ) Other comprehensive income (loss) before reclassifications (116 ) — — (1,917 ) (108 ) (2,141 ) Amounts reclassified out of accumulated other comprehensive loss (income) — 719 — 433 — 1,152 Tax effects (516 ) (242 ) — 381 — (377 ) Other comprehensive income (loss) (632 ) 477 — (1,103 ) (108 ) (1,366 ) December 27, 2014 $ (6,385 ) $ (9,896 ) $ (1,136 ) $ (1,114 ) $ (8 ) $ (18,539 ) |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 26, 2015 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | INCOME TAXES In the three and six months ended December 26, 2015 , the Company recorded an income tax provision (benefit) of $12.5 million and $2.4 million , respectively compared to $0.4 million and $(5.1) million in the three and six months ended December 27, 2014 , respectively. The Company’s effective tax rate for the three and six months ended December 26, 2015 was 15.6% and (109.9)% , respectively, compared to (0.5)% and (22.5)% for the three and six months ended December 27, 2014 , respectively. The Company’s federal statutory tax rate is 35% . The Company’s effective tax rate for the three months ended December 26, 2015 was lower than the statutory rate primarily because earnings of foreign subsidiaries, generated primarily by the Company's international operations managed in Ireland, were taxed at lower rates and a $2.5 million discrete benefit for fiscal year 2015 research tax credits that were generated by the extension, retroactive to January 1, 2015, of the federal research tax credit by legislation that was signed into law on December 18, 2015, partially offset by stock-based compensation for which no tax benefit is expected. The Company’s effective tax rate for the six months ended December 26, 2015 was higher than the statutory tax rate primarily because of $3.8 million of discrete interest accruals for unrecognized tax benefits and a $1.0 million discrete charge for prior year unrecognized tax benefits, partially offset by a $2.5 million discrete benefit for fiscal year 2015 research tax credits that were generated by the extension, retroactive to January 1, 2015, of the federal research tax credit by legislation that was signed into law on December 18, 2015. The Company's effective tax rate for the three months ended December 27, 2014 was higher than the statutory rate primarily because of a $84.1 million discrete goodwill impairment charge that generated no tax benefit and stock-based compensation for which no tax benefit is expected, partially offset by earnings of foreign subsidiaries, generated primarily by the Company's international operations managed in Ireland, taxed at lower tax rates and a $2.9 million discrete benefit for fiscal year 2014 research tax credits that were generated by the extension, retroactive to January 1, 2014, of the federal research tax credit by legislation that was signed into law on December 19, 2014. The Company’s effective tax rate for the six months ended December 27, 2014 was lower than the statutory tax rate primarily because earnings of foreign subsidiaries, generated primarily by the Company's international operations managed in Ireland, were taxed at lower rates, a $2.9 million discrete benefit for fiscal year 2014 research tax credits that were generated by the extension, retroactive to January 1, 2014, of the federal research tax credit by legislation that was signed into law on December 19, 2014 and a $24.8 million discrete benefit for the favorable settlement of a Singapore tax issue in the first quarter of fiscal year 2015, partially offset by an $84.1 million discrete goodwill impairment charge that generated no tax benefit and stock-based compensation for which no tax benefit is expected. The Company’s federal corporate income tax returns are audited on a recurring basis by the IRS. In fiscal year 2012 the U.S. Internal Revenue Service commenced an audit of the Company’s federal corporate income tax returns for fiscal years 2009 through 2011, which is still ongoing. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 26, 2015 | |
Product Warranties Disclosures [Abstract] | |
Commitments and Contingencies [Text Block] | COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is a party or subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business, including proceedings and claims that relate to intellectual-property matters. While the outcome of these matters cannot be predicted with certainty, we do not believe that the outcome of any of these matters, individually or in the aggregate, will result in losses that are materially in excess of amounts already recognized or reserved, if any. Indemnification The Company indemnifies certain customers, distributors, suppliers and subcontractors for attorney fees and damages and costs awarded against such parties in certain circumstances in which the Company’s products are alleged to infringe third party intellectual property rights, including patents, registered trademarks or copyrights. The terms of the Company’s indemnification obligations are generally perpetual from the effective date of the agreement. In certain cases, there are limits on and exceptions to the Company’s potential liability for indemnification relating to intellectual property infringement claims. Pursuant to the Company’s charter documents and separate written indemnification agreements, the Company has certain indemnification obligations to its current officers, employees and directors, as well as certain former officers and directors. Product Warranty The Company generally warrants its products for one year from the date of shipment against defects in materials, workmanship and material non-conformance to the Company’s specifications. The general warranty policy provides for the repair or replacement of defective products or a credit to the customer’s account. In addition, the Company may consider its relationship with the customer when reviewing product warranty claims. In limited circumstances and for strategic customers in certain unique industries and applications, our product warranty may extend for up to five years, and may also include financial responsibility, such as the payment of monetary compensation to reimburse a customer for its financial losses above and beyond repairing or replacing the product or crediting the customer’s account should the product not meet the Company’s specifications and losses and /or damages resulting from the product. Accruals are based on specifically identified claims and on the estimated, undiscounted cost of incurred-but-not-reported claims. If there is a material increase in the rate of customer claims compared with our historical experience or if the Company’s estimates of probable losses relating to specifically identified warranty exposures require revision, the Company may record a charge against future cost of sales. Product warranty liability is included within the balance sheet captions “Accrued expenses” and “Other liabilities” in the accompanying Condensed Consolidated Balance Sheets. The changes in the Company’s aggregate product warranty liabilities for the six months ended December 26, 2015 and December 27, 2014 were as follows: Six Months Ended December 26, December 27, Product warranty liability (in thousands) Beginning balance $ 14,329 $ 21,296 Accruals for warranties 2,247 1,168 Payments (5,909 ) (7,113 ) Changes in estimate 873 1,380 Ending balance $ 11,540 $ 16,731 Less: Current portion 7,240 8,131 Non-current portion $ 4,300 $ 8,600 |
Common Stock Repurchases
Common Stock Repurchases | 6 Months Ended |
Dec. 26, 2015 | |
Common Stock Repurchases [Abstract] | |
Common Stock Repurchases [Text Block] | COMMON STOCK REPURCHASES In July 2013, the Board of Directors authorized the Company to repurchase up to $1 billion of the Company’s common stock from time to time at the discretion of the Company’s management. This stock repurchase authorization has no expiration date. All prior authorizations by the Company’s Board of Directors for the repurchase of common stock were superseded by this authorization. During the six months ended December 26, 2015 , the Company repurchased approximately 1.8 million shares of its common stock for $62.8 million . As of December 26, 2015 , the Company had remaining authorization of $503.9 million for future share repurchases. The number of shares to be repurchased and the timing of such repurchases will be based on several factors, including the price of the Company’s common stock and general market and business conditions. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 6 Months Ended |
Dec. 26, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets [Text Block] | GOODWILL AND INTANGIBLE ASSETS Goodwill The Company monitors the recoverability of goodwill recorded in connection with acquisitions, by reporting unit, annually, or more often if events or changes in circumstances indicate that the carrying amount may not be recoverable. The Company performed the annual goodwill impairment analysis during the fourth quarter of fiscal year 2015 and concluded that goodwill was not impaired, as the fair value of each reporting unit exceeded its carrying value. During the quarter ended December 27, 2014, goodwill for the Sensing Solutions reporting unit was determined to be impaired and the Company recorded a charge of $84.1 million . The Sensing Solutions reporting unit develops integrated circuits which are primarily sold in the consumer and automotive end customer markets. The impairment was the result of the Company’s decision within the quarter ended December 27, 2014 to exit certain market offerings that have competitive dynamics which are no longer consistent with the Company’s business objectives. The Company determined that sufficient indicators of potential impairment existed to require an interim goodwill impairment analysis for the Sensing Solutions reporting unit. The reporting unit’s carrying value exceeded its estimated fair value and, accordingly, a second phase of the goodwill impairment test (“Step 2”) was performed. Under Step 2, the fair value of all Sensing Solution’s assets and liabilities were estimated, including tangible assets and intangible assets (including existing and in-process technology) for the purpose of deriving an estimate of the implied fair value of goodwill. The implied fair value of the goodwill was then compared to the carrying value of the goodwill to determine the amount of the impairment. The Company estimated the fair value of the Sensing Solutions reporting unit using a weighting of fair values derived equally from the income and market approach. Under the income approach, the Company calculates the fair value of a reporting unit based on the present value of estimated future cash flows. Cash flow projections are based on management’s estimates of revenue growth rates and operating margins, taking into consideration industry and market conditions. The discount rate used is based on the weighted-average cost of capital adjusted for the relevant risk associated with business-specific characteristics and the uncertainty related to the business’s ability to execute on the projected cash flows. The market approach estimates fair value based on market multiples of revenue and earnings derived from comparable publicly-traded companies with similar operating and investment characteristics as the reporting unit. Prior to completing the goodwill impairment test, the Company tested the recoverability of the Sensing Solutions long-lived assets (other than goodwill) and concluded that existing Property, plant and equipment, net was impaired by $45.2 million and IPR&D was impaired by $8.9 million . No indicators or instances of impairment were identified in the six months ended December 26, 2015 . During the three months ended December 26, 2015 , $21.0 million of goodwill was reclassified as held for sale. For details, please refer to Note 3: "Balance sheet components" and Note 14: “Impairment of long-lived assets”. Intangible Assets The useful lives of amortizable intangible assets are as follows: Asset Life Intellectual property 1-10 years Customer relationships 4-10 years Trade name 3-4 years Patents 5 years Intangible assets consisted of the following: December 26, June 27, Original Cost Accumulated Amortization Net Original Cost Accumulated Amortization Net (in thousands) Intellectual property $ 347,262 $ 234,639 $ 112,623 $ 435,962 $ 276,175 $ 159,787 Customer relationships 96,830 69,925 26,905 120,230 82,774 37,456 Trade name 8,500 5,686 2,814 8,500 4,886 3,614 Patents 2,500 1,167 1,333 2,500 907 1,593 Total amortizable purchased intangible assets 455,092 311,417 143,675 567,192 364,742 202,450 IPR&D 59,202 — 59,202 59,202 — 59,202 Total purchased intangible assets $ 514,294 $ 311,417 $ 202,877 $ 626,394 $ 364,742 $ 261,652 During the three months ended December 26, 2015 , $20.3 million of purchased intangible assets, net, was reclassified as held for sale. For details, please refer to Note 3: "Balance sheet components" and Note 14: “Impairment of long-lived assets”. The following table presents the amortization expense of intangible assets and its presentation in the Condensed Consolidated Statements of Income: Three Months Ended Six Months Ended December 26, December 27, December 26, December 27, (in thousands) Cost of goods sold $ 14,734 $ 18,750 $ 31,372 $ 37,500 Intangible asset amortization 3,538 4,155 7,129 8,482 Total intangible asset amortization expenses $ 18,272 $ 22,905 $ 38,501 $ 45,982 The following table represents the estimated future amortization expense of intangible assets as of December 26, 2015 : Fiscal Year Amount (in thousands) Remaining six months of 2016 $ 28,734 2017 49,091 2018 41,563 2019 13,278 2020 3,358 2021 2,888 Thereafter 4,763 Total intangible assets $ 143,675 |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets (Notes) | 6 Months Ended |
Dec. 26, 2015 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | IMPAIRMENT OF LONG-LIVED ASSETS Fiscal year 2016: During the first quarter of fiscal year 2016, the Company recorded a $157.7 million impairment of long-lived assets associated with the Company's wafer manufacturing facility in San Antonio, Texas which was classified as held for sale and written down to fair value, less cost to sell. The Company reached its conclusion regarding the asset impairment after conducting an evaluation of assets' fair values. The fair value of the land, buildings and equipment was determined after consideration of expected discounted future cash flows attributable to the assets and outside appraisals. The Company signed an agreement with TJ Texas, Inc., a wholly-owned subsidiary of Tower Semiconductor Ltd., for the sale of the semiconductor wafer fabrication facility in San Antonio, Texas on November 18, 2015. In addition, the San Jose wafer fabrication facility was classified as held for sale during the first quarter of fiscal year 2016, but no impairment charge was recorded as the carrying value of the associated assets approximated the fair value, less cost to sell. The fair value of the land, buildings and equipment was determined after consideration of outside appraisals, quoted market prices of similar equipment and offers received. The Company completed the sale of this facility in the second quarter of fiscal year 2016 for approximately $39.0 million resulting in a gain of $3.8 million . During the second quarter of fiscal year 2016, the Company classified certain business units, including associated tangible, intangible assets and goodwill, as held for sale but no impairment charge was recorded as the carrying value of each of the business units' associated assets approximates or is less than the fair value, less cost to sell. The fair values of the assets were determined after consideration of offers received. The Company plans on completing these sales during fiscal year 2016. Fiscal year 2015: During the three and six months ended December 27, 2014 , the Company recorded $50.7 million and $61.0 million , respectively, in impairment of long-lived assets in the Company’s Condensed Consolidated Statements of Income. The impairment was primarily related to the write down of equipment relating to the Sensing Solutions reporting unit of $45.2 million . The Company reached its conclusion regarding the asset impairment after concluding that the undiscounted cash flows fell below the net book value of the net assets of the Sensing Solutions reporting unit (the asset group). As a result, the Company reduced the assets to their fair value after conducting an evaluation of each asset’s alternative use, the condition of the asset and the current market pricing and demand. The impairment was also related to used fabrication tools identified by the Company as obsolete in the three months ended December 27, 2014 due to the transition to newer technologies. The Company reached its conclusion regarding the asset impairment after conducting an evaluation of alternative use, the condition of the assets and current market demand. |
Restructuring Activities (Notes
Restructuring Activities (Notes) | 6 Months Ended |
Dec. 26, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING ACTIVITIES Fiscal year 2016: Summary of Restructuring Plans The Company has accruals for severance and restructuring payments as well as expected losses relating to lease terminations. The Company’s restructuring activities in the six months ended December 26, 2015 were as follows: Balance, June 27, 2015 Six Months Ended December 26, 2015 Balance, December 26, 2015 As of December 26, 2015 Charges Cash Payments Change in Estimates Costs Incurred to Date (4) Expected Costs to be Incurred (in thousands) San Jose Fab Shutdown Severance (1) $ 6,725 $ 973 $ (5,104 ) $ (553 ) $ 2,041 $ 7,145 $ — Accelerated depreciation (2) — 41,600 — — 41,600 93,094 — Total San Jose Fab Shutdown 6,725 42,573 (5,104 ) (553 ) 43,641 100,239 — Other Plans Severance (1) 11,496 15,940 (16,110 ) 586 11,912 46,225 467 Dallas manufacturing facility accelerated depreciation (2) $ — $ 4,064 $ — $ — $ 4,064 $ 4,064 $ 12,191 Lease termination losses and other (3) 3,754 1,743 (253 ) (1,225 ) 4,019 8,876 — Total other plans 15,250 21,747 (16,363 ) (639 ) 19,995 59,165 12,658 Total restructuring plans $ 21,975 $ 64,320 $ (21,467 ) $ (1,192 ) $ 63,636 $ 159,404 $ 12,658 In Balance Sheets: Accrued salary and related expenses $ 18,221 $ 13,953 Accrued expenses $ 2,004 $ 2,410 Other liabilities $ 1,750 $ 1,609 (1) Charges and change in estimates are included in Severance and restructuring expenses in the accompanying Condensed Consolidated Statements of Income. (2) Charges and change in estimates are included in Cost of goods sold in the accompanying Condensed Consolidated Statements of Income. (3) Charges and change in estimates are included in Severance and restructuring expenses and Other operating expenses (income), net in the accompanying Condensed Consolidated Statements of Income. (4) Costs incurred to date presents the cumulative costs recorded in fiscal year 2015 and 2016 for the above named restructuring activities. San Jose Fab Shutdown In October 2014, the Company initiated a plan to shut down its San Jose wafer fabrication facility. The Company reached the decision that it was not economically feasible to maintain this facility, which is used primarily for fab process development and low volume manufacturing, as the Company intended to utilize other resources to complete such activities in the future. This plan included cash charges related to employee severance and non-cash charges related to accelerated depreciation. This plan has been completed, and the shutdown took place in the second quarter of fiscal year 2016. During the three and six months ended December 26, 2015 , the Company recorded accelerated depreciation charges of $0 and $41.6 million , respectively, in “Cost of goods sold” and $0 and $0.4 million , respectively, in “Severance and restructuring expenses” in the Condensed Consolidated Statements of Income. The sale of the San Jose wafer fabrication facility took place during the second quarter of fiscal year 2016. Other Plans During the three and six months ended December 26, 2015 , the Company recorded $10.7 million and $17.0 million , respectively, in “Severance and restructuring expenses” in the Condensed Consolidated Statements of Income related to various restructuring plans designed to reduce costs. These charges were associated with continued reorganization of certain business units and functions and the planned closure the Dallas wafer level packaging (“WLP”) manufacturing facilities. Multiple job classifications and locations were impacted by these activities. As the Company plans to close its WLP manufacturing facility in Dallas, Texas in fiscal year 2017, the Company recorded accelerated depreciation charges of $2.0 million and $4.1 million during the three and six months ended December 26, 2015 , respectively. The Company also accrues for expected losses relating to lease terminations as a result of plans to consolidate office space. The need for consolidation resulted from acquisition and relocation activities. Fiscal year 2015: Severance and restructuring expenses were $13.6 million and $15.0 million for the three and six months ended December 27, 2014. Change in estimate: Due to the above mentioned restructuring activities, the Company recorded accelerated depreciation resulting from the change in estimated useful lives of certain long lived assets included in restructuring plans. In all periods that accelerated depreciation expense was recorded, this resulted in additional expense and therefore impacted operating income (loss), net income (loss) and earnings per share as presented in the table below. Three Months Ended Six Months Ended December 26, December 27, December 26, December 27 (in thousands, except per share data) Operating income (loss), as reported $ 89,533 $ (64,076 ) $ 13,768 $ 36,882 Operating income (loss), excluding accelerated depreciation expense 91,565 (55,181 ) 59,432 45,777 Effect of change in estimate $ (2,032 ) $ (8,895 ) $ (45,664 ) $ (8,895 ) Net income (loss), as reported $ 67,469 $ (72,034 ) $ (4,674 ) $ 27,946 Net income (loss), excluding accelerated depreciation expense 73,119 (62,278 ) 37,705 37,702 Effect of change in estimate $ (5,650 ) $ (9,756 ) $ (42,379 ) $ (9,756 ) Basic earnings (loss) per share, as reported $ 0.24 $ (0.25 ) $ (0.02 ) $ 0.10 Diluted earnings (loss) per share, as reported $ 0.23 $ (0.25 ) $ (0.02 ) $ 0.10 Basic earnings (loss) per share, excluding accelerated depreciation expense $ 0.26 $ (0.22 ) $ 0.13 $ 0.13 Diluted earnings (loss) per share, excluding accelerated depreciation expense $ 0.25 $ (0.22 ) $ 0.13 $ 0.13 Effect of change in estimate - basic earnings (loss) per share $ (0.02 ) $ (0.03 ) $ (0.15 ) $ (0.03 ) Effect of change in estimate - diluted earnings (loss) per share $ (0.02 ) $ (0.03 ) $ (0.15 ) $ (0.03 ) |
Subsequent Event (Notes)
Subsequent Event (Notes) | 6 Months Ended |
Dec. 26, 2015 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENT On December 30, 2015, the Company entered into an agreement to sell its energy metering business to Silergy Corporation, an analog semiconductor company with operations in the U.S. and Asia, for approximately $105.0 million . The Company expects to close the transaction during the third quarter of fiscal 2016 subject to the satisfaction of customary closing conditions. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block] | Accounts receivable, net consists of: December 26, June 27, Accounts Receivable: (in thousands) Accounts receivable $ 247,468 $ 297,130 Returns and allowances (16,288 ) (18,286 ) $ 231,180 $ 278,844 |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of: December 26, June 27, Inventories: (in thousands) Raw materials $ 12,611 $ 12,932 Work-in-process 178,650 199,716 Finished goods 83,480 75,826 $ 274,741 $ 288,474 |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment, net consists of: December 26, June 27, Property, plant and equipment: (in thousands) Land $ 24,631 $ 45,040 Buildings and building improvements 275,823 338,394 Machinery and equipment 1,431,786 1,970,819 1,732,240 2,354,253 Less: accumulated depreciation and amortization (961,692 ) (1,263,514 ) $ 770,548 $ 1,090,739 |
Schedule of Other Assets [Table Text Block] | Other assets consist of: December 26, June 27, Other assets: (in thousands) Licenses 9,002 8,665 Deferred taxes 23,120 1,447 Other 31,983 25,445 $ 64,105 $ 35,557 |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | As of December 26, 2015 , assets held for sale primarily consist of land, building and equipment for the Company's wafer manufacturing facility in San Antonio, classified as held for sale during the first quarter of fiscal 2016. In addition, assets held for sale consist of goodwill, intangible assets and equipment of certain business units classified as held for sale during the second quarter of fiscal 2016. As of June 27, 2015, assets held for sale consisted of land and buildings related to the Company's manufacturing facility in Batangas, the Philippines. This facility was sold in the second quarter of fiscal 2016. December 26, June 27, Assets held for sale: (in thousands) Property, plant and equipment, less accumulated depreciation $ 41,402 $ 8,208 Goodwill 20,999 — Identifiable intangible assets, less accumulated amortization 20,273 — $ 82,674 $ 8,208 |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accrued salary and related expenses consist of: December 26, June 27, Accrued salary and related expenses: (in thousands) Accrued vacation $ 35,033 $ 36,906 Accrued bonus 41,691 86,506 Accrued severance and post-employment benefits 19,933 25,136 Accrued salaries 15,511 16,572 Accrued fringe 6,106 6,007 Other 10,934 10,233 129,208 $ 181,360 |
Schedule of Accrued Liabilities [Table Text Block] | Accrued expenses consist of: December 26, June 27, Accrued expenses: (in thousands) Accrued self-insurance $ 9,040 $ 10,882 Accrued contract settlement 10,691 10,691 Accrued interest 6,660 6,660 Other 20,912 20,156 $ 47,303 $ 48,389 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Assets and liabilities measured at fair value on a recurring basis were as follows: As of December 26, 2015 As of June 27, 2015 Fair Value Measurements Using Total Balance Fair Value Measurements Using Total Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Assets Money market funds (1) $ 1,230,289 $ — $ — $ 1,230,289 $ 1,156,239 $ — $ — $ 1,156,239 U.S. treasury bills (2) — 124,955 — 124,955 — 75,154 — 75,154 Foreign currency forward contracts (3) — 226 — 226 — 679 — 679 Total Assets $ 1,230,289 $ 125,181 $ — $ 1,355,470 $ 1,156,239 $ 75,833 $ — $ 1,232,072 Liabilities Foreign currency forward contracts (4) $ — $ 674 $ — $ 674 $ — $ 613 $ — $ 613 Total Liabilities $ — $ 674 $ — $ 674 $ — $ 613 $ — $ 613 (1) Included in Cash and cash equivalents in the accompanying Condensed Consolidated Balance Sheets. (2) Included in Short-term investments in the accompanying Condensed Consolidated Balance Sheets. (3) Included in Other current assets in the accompanying Condensed Consolidated Balance Sheets. (4) Included in Accrued expenses in the accompanying Condensed Consolidated Balance Sheets. |
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Table Text Block] | The tables below present reconciliations for liabilities measured and recorded at fair value on a recurring basis using significant unobservable inputs (Level 3) for the six months ended December 26, 2015 and December 27, 2014 : Fair Value Measured and Recorded Using Significant Unobservable Inputs (Level 3) December 26, December 27, Contingent Consideration (in thousands) Beginning balance $ — $ 3,215 Total gains or losses (realized and unrealized): Included in earnings — 384 Payments — (3,599 ) Ending balance $ — $ — Changes in unrealized losses (gains) included in earnings related to liabilities still held as of period end $ — $ — |
Financial Instruments (Tables)
Financial Instruments (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Available-for-sale investments [Table Text Block] | Fair values were as follows: December 26, 2015 June 27, 2015 Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value Amortized Cost Gross Unrealized Gain Gross Unrealized Loss Estimated Fair Value (in thousands) Available-for-sale investments U.S. Treasury notes $ 125,105 $ — $ 150 $ 124,955 $ 75,022 $ 132 $ — $ 75,154 Total available-for-sale investments $ 125,105 $ — $ 150 $ 124,955 $ 75,022 $ 132 $ — $ 75,154 |
Schedule of long-term debt [Table Text Block] | The following table summarizes the Company’s long-term debt: December 26, June 27, (in thousands) 2.5% fixed rate notes due November 2018 $ 500,000 $ 500,000 3.375% fixed rate notes due March 2023 500,000 500,000 Notes denominated in Euro Term fixed rate notes (2.0%) due on September 30, 2015 — 1,024 Total 1,000,000 1,001,024 Less: Current portion (included in “Accrued expenses”) — (1,024 ) Total long-term debt $ 1,000,000 $ 1,000,000 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The following tables show total stock-based compensation expense by type of award, and the resulting tax effect, included in the Condensed Consolidated Statements of Income for the three and six months ended December 26, 2015 and December 27, 2014 , respectively: Three Months Ended December 26, 2015 December 27, 2014 Stock Options Restricted Stock Units Employee Stock Purchase Plan Total Stock Options Restricted Stock Units Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 279 $ 1,970 $ 621 $ 2,870 $ 362 $ 2,076 $ 550 $ 2,988 Research and development 843 7,210 1,085 9,138 1,587 8,415 1,219 11,221 Selling, general and administrative 802 5,138 471 6,411 1,029 5,038 500 6,567 Pre-tax stock-based compensation expense $ 1,924 $ 14,318 $ 2,177 $ 18,419 $ 2,978 $ 15,529 $ 2,269 $ 20,776 Less: income tax effect 3,295 3,365 Net stock-based compensation expense $ 15,124 $ 17,411 Six Months Ended December 26, 2015 December 27, 2014 Stock Options Restricted Stock Units Employee Stock Purchase Plan Total Stock Options Restricted Stock Units Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 614 3,958 1,180 $ 5,752 $ 701 $ 4,050 $ 1,074 $ 5,825 Research and development 1,713 13,084 2,382 17,179 3,734 17,247 2,562 23,543 Selling, general and administrative 1,620 9,764 1,067 12,451 2,458 10,262 1,108 13,828 Pre-tax stock-based compensation expense $ 3,947 $ 26,806 $ 4,629 $ 35,382 $ 6,893 $ 31,559 $ 4,744 $ 43,196 Less: income tax effect 6,057 6,637 Net stock-based compensation expense $ 29,325 $ 36,559 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of options granted to employees has been estimated using the following weighted-average assumptions: Stock Options Three Months Ended Six Months Ended December 26, December 27, December 26, December 27, Expected holding period (in years) 0.0 5.0 0.0 4.8 Risk-free interest rate — % 1.7 % — % 1.6 % Expected stock price volatility — % 26.8 % — % 26.7 % Dividend yield — % 3.5 % — % 3.2 % |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Options, Vested and Expected to Vest, Outstanding [Table Text Block] | The following table summarizes outstanding, exercisable and vested and expected to vest stock options as of December 26, 2015 and their activity for the six months ended December 26, 2015 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (1) Balance at June 27, 2015 10,173,016 $ 25.83 Options Granted — — Options Exercised (2,198,354 ) 26.25 Options Cancelled (689,633 ) 33.47 Balance at December 26, 2015 7,285,029 $ 24.98 3.3 $ 98,360,731 Exercisable, December 26, 2015 3,547,516 $ 21.89 2.2 $ 58,325,173 Vested and expected to vest, December 26, 2015 7,092,264 $ 24.86 3.2 $ 95,523,711 (1) Aggregate intrinsic value represents the difference between the exercise price and the closing price per share of the Company’s common stock on December 24, 2015, the last business day preceding the fiscal quarter-end, multiplied by the number of options outstanding, exercisable or vested and expected to vest as of December 26, 2015. |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest [Table Text Block] | The following table summarizes the outstanding and expected to vest RSUs and other awards as of December 26, 2015 and their activity during the six months ended December 26, 2015 : Number of Shares Weighted Average Aggregate Intrinsic Value (1) Balance at June 27, 2015 7,129,985 Restricted stock units and other awards granted 2,303,680 Restricted stock units and other awards released (1,005,291 ) Restricted stock units and other awards cancelled (754,853 ) Balance at December 26, 2015 7,673,521 2.9 $ 293,743,258 Outstanding and expected to vest, December 26, 2015 6,546,450 2.8 $ 248,084,773 (1) Aggregate intrinsic value for RSUs and other awards represents the closing price per share of the Company’s common stock on December 24, 2015, the last business day preceding the fiscal quarter-end, multiplied by the number of RSUs outstanding or expected to vest as of December 26, 2015. |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest [Table Text Block] | The following table summarizes the number of MSUs outstanding and expected to vest as of December 26, 2015 and their activity during the six months ended December 26, 2015 : Number of Shares Weighted Average Aggregate Intrinsic Value (1) Balance at June 27, 2015 414,840 Market stock units granted 361,684 Market stock units released — Market stock units cancelled (76,560 ) Balance at December 26, 2015 699,964 3.4 $ 26,829,620 Outstanding and expected to vest, December 26, 2015 566,843 3.4 $ 21,727,097 (1) Aggregate intrinsic value for MSUs represents the closing price per share of the Company’s common stock on December 24, 2015, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of December 26, 2015. |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | The fair value of ESPP granted to employees has been estimated at the date of grant using the Black-Scholes option valuation model and the following weighted-average assumptions: ESPP Three Months Ended Six Months Ended December 26, December 27, December 26, December 27, Expected holding period (in years) 0.5 0.5 0.5 0.5 Risk-free interest rate 0.4 % 0.1 % 0.4 % 0.1 % Expected stock price volatility 33.1 % 26.4 % 33.1 % 26.4 % Dividend yield 3.6 % 3.5 % 3.6 % 3.5 % |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted [Table Text Block] | The following table sets forth the computation of basic and diluted earnings (loss) per share: Three Months Ended Six Months Ended December 26, December 27, December 26, December 27, (in thousands, except per share data) Numerator for basic earnings (loss) per share and diluted earnings (loss) per share Net income (loss) $ 67,469 $ (72,034 ) $ (4,674 ) $ 27,946 Denominator for basic earnings (loss) per share 285,526 282,992 285,057 283,539 Effect of dilutive securities: Stock options, ESPP, RSUs, and MSUs 4,995 — — 5,337 Denominator for diluted earnings (loss) per share 290,521 282,992 285,057 288,876 Earnings (loss) per share Basic $ 0.24 $ (0.25 ) $ (0.02 ) $ 0.10 Diluted $ 0.23 $ (0.25 ) $ (0.02 ) $ 0.10 |
Segment Information (Tables)
Segment Information (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers by Geographical Areas [Table Text Block] | Net revenues by geographic region was as follows: Three Months Ended Six Months Ended December 26, December 27, December 26, December 27, (in thousands) United States $ 61,633 $ 70,336 $ 123,693 $ 144,931 China 197,420 242,303 421,657 482,320 Rest of Asia 153,203 155,388 323,137 320,820 Europe 85,951 80,992 177,854 164,957 Rest of World 12,624 17,790 27,000 34,056 $ 510,831 $ 566,809 $ 1,073,341 $ 1,147,084 |
Schedule of Long Lived Assets by Geographical Areas [Table Text Block] | Net long-lived assets by geographic region were as follows: December 26, June 27, (in thousands) United States $ 455,051 $ 783,148 Philippines 181,140 166,405 Thailand 52,175 56,776 Rest of World 82,182 84,410 $ 770,548 $ 1,090,739 |
Comprehensive Income Loss (Tabl
Comprehensive Income Loss (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Statement of Comprehensive Income [Abstract] | |
Schedule of Accumulated Other Comprehensive Income (Loss) [Table Text Block] | The changes in accumulated other comprehensive loss by component and related tax effects in the six months ended December 26, 2015 and December 27, 2014 were as follows: (in thousands) Unrealized Gains and Losses on Intercompany Receivables Unrealized Gains and Losses on Post-Retirement Benefits Cumulative Translation Adjustment Unrealized Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-For-Sale Securities Total June 27, 2015 $ (6,280 ) $ (10,004 ) $ (1,136 ) $ 53 $ 133 $ (17,234 ) Other comprehensive income (loss) before reclassifications — — — (941 ) (283 ) (1,224 ) Amounts reclassified out of accumulated other comprehensive loss (income) — 505 — 415 — 920 Tax effects — (161 ) — 170 — 9 Other comprehensive income (loss) — 344 — (356 ) (283 ) (295 ) December 26, 2015 $ (6,280 ) $ (9,660 ) $ (1,136 ) $ (303 ) $ (150 ) $ (17,529 ) (in thousands) Unrealized Gains and Losses on Intercompany Receivables Unrealized Gains and Losses on Post-Retirement Benefits Cumulative Translation Adjustment Unrealized Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-For-Sale Securities Total June 28, 2014 $ (5,753 ) $ (10,373 ) $ (1,136 ) $ (11 ) $ 100 $ (17,173 ) Other comprehensive income (loss) before reclassifications (116 ) — — (1,917 ) (108 ) (2,141 ) Amounts reclassified out of accumulated other comprehensive loss (income) — 719 — 433 — 1,152 Tax effects (516 ) (242 ) — 381 — (377 ) Other comprehensive income (loss) (632 ) 477 — (1,103 ) (108 ) (1,366 ) December 27, 2014 $ (6,385 ) $ (9,896 ) $ (1,136 ) $ (1,114 ) $ (8 ) $ (18,539 ) |
Commitments and Contingencies
Commitments and Contingencies (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | The changes in the Company’s aggregate product warranty liabilities for the six months ended December 26, 2015 and December 27, 2014 were as follows: Six Months Ended December 26, December 27, Product warranty liability (in thousands) Beginning balance $ 14,329 $ 21,296 Accruals for warranties 2,247 1,168 Payments (5,909 ) (7,113 ) Changes in estimate 873 1,380 Ending balance $ 11,540 $ 16,731 Less: Current portion 7,240 8,131 Non-current portion $ 4,300 $ 8,600 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Useful lives of definite lived intangible assets [Table Text Block] | The useful lives of amortizable intangible assets are as follows: Asset Life Intellectual property 1-10 years Customer relationships 4-10 years Trade name 3-4 years Patents 5 years |
Schedule of intangible assets [Table Text Block] | Intangible assets consisted of the following: December 26, June 27, Original Cost Accumulated Amortization Net Original Cost Accumulated Amortization Net (in thousands) Intellectual property $ 347,262 $ 234,639 $ 112,623 $ 435,962 $ 276,175 $ 159,787 Customer relationships 96,830 69,925 26,905 120,230 82,774 37,456 Trade name 8,500 5,686 2,814 8,500 4,886 3,614 Patents 2,500 1,167 1,333 2,500 907 1,593 Total amortizable purchased intangible assets 455,092 311,417 143,675 567,192 364,742 202,450 IPR&D 59,202 — 59,202 59,202 — 59,202 Total purchased intangible assets $ 514,294 $ 311,417 $ 202,877 $ 626,394 $ 364,742 $ 261,652 |
Schedule of amortization expense allocation of intangible assets [Table Text Block] | The following table presents the amortization expense of intangible assets and its presentation in the Condensed Consolidated Statements of Income: Three Months Ended Six Months Ended December 26, December 27, December 26, December 27, (in thousands) Cost of goods sold $ 14,734 $ 18,750 $ 31,372 $ 37,500 Intangible asset amortization 3,538 4,155 7,129 8,482 Total intangible asset amortization expenses $ 18,272 $ 22,905 $ 38,501 $ 45,982 |
Estimated future amortization expense of intangible assets [Table Text Block] | The following table represents the estimated future amortization expense of intangible assets as of December 26, 2015 : Fiscal Year Amount (in thousands) Remaining six months of 2016 $ 28,734 2017 49,091 2018 41,563 2019 13,278 2020 3,358 2021 2,888 Thereafter 4,763 Total intangible assets $ 143,675 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 6 Months Ended |
Dec. 26, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | The Company’s restructuring activities in the six months ended December 26, 2015 were as follows: Balance, June 27, 2015 Six Months Ended December 26, 2015 Balance, December 26, 2015 As of December 26, 2015 Charges Cash Payments Change in Estimates Costs Incurred to Date (4) Expected Costs to be Incurred (in thousands) San Jose Fab Shutdown Severance (1) $ 6,725 $ 973 $ (5,104 ) $ (553 ) $ 2,041 $ 7,145 $ — Accelerated depreciation (2) — 41,600 — — 41,600 93,094 — Total San Jose Fab Shutdown 6,725 42,573 (5,104 ) (553 ) 43,641 100,239 — Other Plans Severance (1) 11,496 15,940 (16,110 ) 586 11,912 46,225 467 Dallas manufacturing facility accelerated depreciation (2) $ — $ 4,064 $ — $ — $ 4,064 $ 4,064 $ 12,191 Lease termination losses and other (3) 3,754 1,743 (253 ) (1,225 ) 4,019 8,876 — Total other plans 15,250 21,747 (16,363 ) (639 ) 19,995 59,165 12,658 Total restructuring plans $ 21,975 $ 64,320 $ (21,467 ) $ (1,192 ) $ 63,636 $ 159,404 $ 12,658 In Balance Sheets: Accrued salary and related expenses $ 18,221 $ 13,953 Accrued expenses $ 2,004 $ 2,410 Other liabilities $ 1,750 $ 1,609 (1) Charges and change in estimates are included in Severance and restructuring expenses in the accompanying Condensed Consolidated Statements of Income. (2) Charges and change in estimates are included in Cost of goods sold in the accompanying Condensed Consolidated Statements of Income. (3) Charges and change in estimates are included in Severance and restructuring expenses and Other operating expenses (income), net in the accompanying Condensed Consolidated Statements of Income. (4) Costs incurred to date presents the cumulative costs recorded in fiscal year 2015 and 2016 for the above named restructuring activities. |
Schedule of Change in Accounting Estimate [Table Text Block] | Due to the above mentioned restructuring activities, the Company recorded accelerated depreciation resulting from the change in estimated useful lives of certain long lived assets included in restructuring plans. In all periods that accelerated depreciation expense was recorded, this resulted in additional expense and therefore impacted operating income (loss), net income (loss) and earnings per share as presented in the table below. Three Months Ended Six Months Ended December 26, December 27, December 26, December 27 (in thousands, except per share data) Operating income (loss), as reported $ 89,533 $ (64,076 ) $ 13,768 $ 36,882 Operating income (loss), excluding accelerated depreciation expense 91,565 (55,181 ) 59,432 45,777 Effect of change in estimate $ (2,032 ) $ (8,895 ) $ (45,664 ) $ (8,895 ) Net income (loss), as reported $ 67,469 $ (72,034 ) $ (4,674 ) $ 27,946 Net income (loss), excluding accelerated depreciation expense 73,119 (62,278 ) 37,705 37,702 Effect of change in estimate $ (5,650 ) $ (9,756 ) $ (42,379 ) $ (9,756 ) Basic earnings (loss) per share, as reported $ 0.24 $ (0.25 ) $ (0.02 ) $ 0.10 Diluted earnings (loss) per share, as reported $ 0.23 $ (0.25 ) $ (0.02 ) $ 0.10 Basic earnings (loss) per share, excluding accelerated depreciation expense $ 0.26 $ (0.22 ) $ 0.13 $ 0.13 Diluted earnings (loss) per share, excluding accelerated depreciation expense $ 0.25 $ (0.22 ) $ 0.13 $ 0.13 Effect of change in estimate - basic earnings (loss) per share $ (0.02 ) $ (0.03 ) $ (0.15 ) $ (0.03 ) Effect of change in estimate - diluted earnings (loss) per share $ (0.02 ) $ (0.03 ) $ (0.15 ) $ (0.03 ) |
Recently Issued Accounting Pr32
Recently Issued Accounting Pronouncements (Details) $ in Millions | Dec. 26, 2015USD ($) |
New Accounting Pronouncement, Early Adoption [Line Items] | |
Change in Defer Tax Assets, Current | $ 50.6 |
Increase Decrease in Other Assets, Non-Current | 40.7 |
Increase Decrease to Deferred Tax Liabilities, Non-current | $ 9.9 |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) $ in Thousands | Dec. 26, 2015 | Jun. 27, 2015 |
Accounts Receivables: | ||
Accounts receivable | $ 247,468 | $ 297,130 |
Returns and allowances | (16,288) | (18,286) |
Accounts receivable, net | 231,180 | 278,844 |
Inventories: | ||
Raw materials | 12,611 | 12,932 |
Work-in-process | 178,650 | 199,716 |
Finished goods | 83,480 | 75,826 |
Inventory, net | 274,741 | 288,474 |
Property, plant and equipment: | ||
Land | 24,631 | 45,040 |
Buildings and building improvements | 275,823 | 338,394 |
Machinery and equipment | 1,431,786 | 1,970,819 |
Property, plant and equipment, gross | 1,732,240 | 2,354,253 |
Less: accumulated depreciation and amortization | (961,692) | (1,263,514) |
Property, plant and equipment, net | 770,548 | 1,090,739 |
Other Assets, Noncurrent [Abstract] | ||
Licenses, current | 9,002 | 8,665 |
Defer Tax Assets, Non-current | 23,120 | 1,447 |
Other Assets, Other | 31,983 | 25,445 |
Other assets noncurrent | 64,105 | 35,557 |
Assets Held-for-sale, Not Part of Disposal Group, Current [Abstract] | ||
Assets Held for Sale, Not Part of Disposal Group, Property, Plant and Equipment, Net | 41,402 | 8,208 |
Assets Held For Sale, Not Part of Disposal Group, Goodwill | 20,999 | 0 |
Assets Held for Sale, not part of Disposal Group, Intangible Assets Net | 20,273 | 0 |
Assets Held-for-sale, Not Part of Disposal Group, Current | 82,674 | 8,208 |
Employee-related Liabilities, Current [Abstract] | ||
Accrued Vacation | 35,033 | 36,906 |
Accrued Bonuses | 41,691 | 86,506 |
Accrued severance and post-employment benefits | 19,933 | 25,136 |
Accrued Salaries | 15,511 | 16,572 |
Accrued fringe | 6,106 | 6,007 |
Other | 10,934 | 10,233 |
Accrued salary and related expenses | 129,208 | 181,360 |
Accounts Payable and Accrued Liabilities, Current [Abstract] | ||
Self Insurance Reserve, Current | 9,040 | 10,882 |
Accrued Contract Settlement | 10,691 | 10,691 |
Accrued Interest | 6,660 | 6,660 |
Other Accrued Liabilities, Current | 20,912 | 20,156 |
Accrued Liabilities, Current | $ 47,303 | $ 48,389 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Dec. 26, 2015 | Dec. 27, 2014 | Jun. 27, 2015 | Jun. 28, 2014 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | $ 1,648,518 | $ 1,305,870 | $ 1,550,965 | $ 1,322,472 | |
Available-for-sale Securities | 124,955 | 75,154 | |||
Fair Value, Measurements, Nonrecurring [Member] | |||||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | 0 | ||||
Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Assets | 1,355,470 | 1,232,072 | |||
Total Liabilities | 674 | 613 | |||
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 0 | 0 | 3,215 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Sales | 0 | 384 | |||
Business acquisition,cash paid for contingent consideration | 0 | (3,599) | |||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 0 | 0 | $ 3,215 | |
Fair Value, Assets Measured on Recurring Basis, Change in Unrealized Gain (Loss) Included in Other Income | 0 | $ 0 | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Assets | 1,230,289 | 1,156,239 | |||
Total Liabilities | 0 | 0 | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Assets | 125,181 | 75,833 | |||
Total Liabilities | 674 | 613 | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Assets | 0 | 0 | |||
Total Liabilities | 0 | 0 | |||
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 1,230,289 | 1,156,239 | ||
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 1,230,289 | 1,156,239 | ||
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 0 | 0 | ||
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 0 | 0 | ||
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | [2] | 124,955 | 75,154 | ||
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | [2] | 0 | 0 | ||
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | [2] | 124,955 | 75,154 | ||
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | [2] | 0 | 0 | ||
Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | [3] | 226 | 679 | ||
Foreign currency forward contracts | [4] | 674 | 613 | ||
Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | [3] | 0 | 0 | ||
Foreign currency forward contracts | [4] | 0 | 0 | ||
Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | [3] | 226 | 679 | ||
Foreign currency forward contracts | [4] | 674 | 613 | ||
Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | [3] | 0 | 0 | ||
Foreign currency forward contracts | [4] | $ 0 | $ 0 | ||
[1] | Included in Cash and cash equivalents in the accompanying Condensed Consolidated Balance Sheets. | ||||
[2] | Included in Short-term investments in the accompanying Condensed Consolidated Balance Sheets. | ||||
[3] | Included in Other current assets in the accompanying Condensed Consolidated Balance Sheets. | ||||
[4] | Included in Accrued expenses in the accompanying Condensed Consolidated Balance Sheets. |
Financial Instruments, Short-te
Financial Instruments, Short-term Investments (Details) - USD ($) | 6 Months Ended | 12 Months Ended |
Dec. 26, 2015 | Jun. 27, 2015 | |
Available-for-sale Securities [Abstract] | ||
Amortized Cost | $ 125,105,000 | $ 75,022,000 |
Gross Unrealized Gain | 0 | 132,000 |
Gross Unrealized Loss | 150,000 | 0 |
Available-for-sale Securities | 124,955,000 | 75,154,000 |
Short-Term Investment [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Other than Temporary Impairment Losses, Investments, Available-for-sale Securities | 0 | 0 |
US Treasury Securities [Member] | ||
Available-for-sale Securities [Abstract] | ||
Amortized Cost | 125,105,000 | 75,022,000 |
Gross Unrealized Gain | 0 | 132,000 |
Gross Unrealized Loss | 150,000 | 0 |
Available-for-sale Securities | $ 124,955,000 | $ 75,154,000 |
Financial Instruments, Balance
Financial Instruments, Balance Sheet Location (Details) - USD ($) $ in Millions | Dec. 26, 2015 | Jun. 27, 2015 |
Derivatives designated as hedging instruments [Member] | Cash Flow Hedging [Member] | Forward contracts held to purchase U.S. dollars [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivatives | $ 44 | $ 54.2 |
Derivatives designated as hedging instruments [Member] | Cash Flow Hedging [Member] | Forward contracts held to sell U.S. dollars [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivatives | 2.7 | 3.7 |
Derivatives not designated as hedging instruments [Member] | Forward contracts held to purchase U.S. dollars [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivatives | 23.8 | 31.1 |
Derivatives not designated as hedging instruments [Member] | Forward contracts held to sell U.S. dollars [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivatives | $ 24.1 | $ 28.2 |
Financial Instruments, Long-ter
Financial Instruments, Long-term Debt (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Dec. 26, 2015USD ($) | Dec. 27, 2014USD ($) | Dec. 26, 2015USD ($) | Jun. 27, 2015USD ($) | Jun. 27, 2014USD ($) | Dec. 28, 2013USD ($) | Mar. 30, 2013USD ($) | |
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 1,000,000 | $ 1,000,000 | $ 1,001,024 | ||||
Long-term debt, current portion | 0 | 0 | (1,024) | ||||
Long-term debt, excluding current portion | 1,000,000 | 1,000,000 | 1,000,000 | ||||
Interest expense relating to the Notes | 8,200 | $ 8,000 | |||||
Estimated fair value of long-term debt | 995,000 | 995,000 | |||||
Fixed Rate Note Due November 2018 at 2 Point 50 Percent [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 500,000 | $ 500,000 | 500,000 | $ 500,000 | |||
Stated interest rate of the notes | 2.50% | 2.50% | 2.50% | ||||
Effective interest rate of the Notes | 2.60% | ||||||
Net Proceeds From Issuance of Long Term Debt 4 | $ 494,500 | ||||||
Fixed Rate Note Due March 2023 at 3 Point 375 Percent [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 500,000 | $ 500,000 | 500,000 | $ 500,000 | |||
Stated interest rate of the notes | 3.375% | 3.375% | 3.375% | ||||
Effective interest rate of the Notes | 3.50% | ||||||
Net Proceeds From Issuance of Long Term Debt 4 | $ 490,000 | ||||||
Term fixed rate notes (2.0%) due up to September 30, 2015 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Long-term debt | $ 0 | $ 0 | $ 1,024 | ||||
Minimum stated interest rate of notes | 2.00% | ||||||
Unsecured Revolving Credit Facility [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Debt Instrument, Convenant Requirement, minimum interest coverage ratio | 3.5 | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 350,000 | ||||||
Debt Instrument, Covenant Requirement, Ratio of Debt to EBITDA | 3 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | $ 18,419 | $ 20,776 | $ 35,382 | $ 43,196 |
Less: Income tax effect | 3,295 | 3,365 | 6,057 | 6,637 |
Net stock-based compensation expense | 15,124 | 17,411 | 29,325 | 36,559 |
Cost of Sales [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 2,870 | 2,988 | 5,752 | 5,825 |
Research and Development Expense [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 9,138 | 11,221 | 17,179 | 23,543 |
General and Administrative Expense [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 6,411 | 6,567 | 12,451 | 13,828 |
Stock options [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 1,924 | 2,978 | 3,947 | 6,893 |
Stock options [Member] | Cost of Sales [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 279 | 362 | 614 | 701 |
Stock options [Member] | Research and Development Expense [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 843 | 1,587 | 1,713 | 3,734 |
Stock options [Member] | General and Administrative Expense [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 802 | 1,029 | 1,620 | 2,458 |
Restricted stock units [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 14,318 | 15,529 | 26,806 | 31,559 |
Restricted stock units [Member] | Cost of Sales [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 1,970 | 2,076 | 3,958 | 4,050 |
Restricted stock units [Member] | Research and Development Expense [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 7,210 | 8,415 | 13,084 | 17,247 |
Restricted stock units [Member] | General and Administrative Expense [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 5,138 | 5,038 | 9,764 | 10,262 |
ESP Plan [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 2,177 | 2,269 | 4,629 | 4,744 |
ESP Plan [Member] | Cost of Sales [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 621 | 550 | 1,180 | 1,074 |
ESP Plan [Member] | Research and Development Expense [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 1,085 | 1,219 | 2,382 | 2,562 |
ESP Plan [Member] | General and Administrative Expense [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | 471 | 500 | 1,067 | 1,108 |
Market stock units [Member] | ||||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||||
Allocated Share-based Compensation Expense | $ 800 | $ 600 | $ 1,300 | $ 900 |
Stock-Based Compensation, Fair
Stock-Based Compensation, Fair Value of Options (Details) - Stock options [Member] - $ / shares | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Weighted-average Assumptions Used for Fair Value of Award Granted [Abstract] | ||||
Expected holding period (in years) | 0 days | 5 years | 0 days | 4 years 9 months 18 days |
Risk-free interest rate | 0.00% | 1.70% | 0.00% | 1.60% |
Expected stock price volatility | 0.00% | 26.80% | 0.00% | 26.70% |
Dividend yield | 0.00% | 3.50% | 0.00% | 3.20% |
Options granted, weighted average fair value of stock options (per share) | $ 0 | $ 4.79 | $ 5.56 |
Stock-Based Compensation, Stock
Stock-Based Compensation, Stock Option Plans (Details) - Stock options [Member] | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015USD ($)$ / sharesshares | Dec. 26, 2015USD ($)$ / sharesshares | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, beginning | 10,173,016 | |||
Options Granted | 0 | |||
Options Exercised | (2,198,354) | |||
Options Cancelled | (689,633) | |||
Options outstanding, ending | 7,285,029 | 7,285,029 | ||
Options outstanding, weighted average exercise price, beginning (per share) | $ / shares | $ 25.83 | |||
Options granted, weighted average exercise price (per share) | $ / shares | 0 | |||
Options exercised, weighted average exercise price (per share) | $ / shares | 26.25 | |||
Options cancelled, weighted average exercise price (per share) | $ / shares | 33.47 | |||
Options outstanding, weighted average exercise price, ending (per share) | $ / shares | $ 24.98 | $ 24.98 | ||
Options outstanding, weighted average remaining contractual term (in years) | 3 years 3 months 18 days | |||
Options outstanding, aggregate intrinsic value | $ | $ 98,360,731 | [1] | $ 98,360,731 | [1] |
Options exercisable, number of shares | 3,547,516 | 3,547,516 | ||
Options exercisable, weighted average exercise price (per share) | $ / shares | $ 21.89 | $ 21.89 | ||
Options exercisable, weighted average remaining contractual term (in years) | 2 years 2 months 12 days | |||
Options exercisable, aggregate intrinsic value | $ | $ 58,325,173 | [1] | $ 58,325,173 | [1] |
Options vested and expected to vest, number of shares | 7,092,264 | 7,092,264 | ||
Options vested and expected to vest, weighted average exercise price (per share) | $ / shares | $ 24.86 | $ 24.86 | ||
Options vested and expected to vest, weighted average remaining contractual term (in years) | 3 years 2 months 12 days | |||
Options vested and expected to vest, aggregate intrinsic value | $ | $ 95,523,711 | [1] | $ 95,523,711 | [1] |
Unrecognized compensation costs related to unvested units | $ | $ 11,500,000 | $ 11,500,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 3,700,000 | 3,700,000 | ||
Weighted average period of recognition for unrecognized compensation costs (in years) | 2 years 2 months 12 days | |||
[1] | (1)Aggregate intrinsic value represents the difference between the exercise price and the closing price per share of the Company’s common stock on December 24, 2015, the last business day preceding the fiscal quarter-end, multiplied by the number of options outstanding, exercisable or vested and expected to vest as of December 26, 2015. |
Stock-Based Compensation, Restr
Stock-Based Compensation, Restricted Stock Units (Details) - Restricted stock units [Member] - USD ($) | 3 Months Ended | 6 Months Ended | |||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Weighted average grant date fair value (per share) | $ 36.14 | $ 27.24 | $ 28.70 | $ 27.18 | |
Outstanding and expected to vest RSUs [Roll Forward] | |||||
Outstanding, beginning | 7,129,985 | ||||
Granted | 2,303,680 | ||||
Released | (1,005,291) | ||||
Cancelled | (754,853) | ||||
Outstanding, ending | 7,673,521 | 7,673,521 | |||
Outstanding, weighted average remaining contractual term (in years) | 2 years 10 months 24 days | ||||
Outstanding, aggregate intrinsic value | [1] | $ 293,743,258 | $ 293,743,258 | ||
Expected to vest, number of shares | 6,546,450 | 6,546,450 | |||
Restricted stock units vested and expected to vest, weighted average remaining contractual term 1 | 2 years 9 months 18 days | ||||
Restricted stock units expected to vest, aggregate intrinsic value | [1] | $ 248,084,773 | $ 248,084,773 | ||
Value of restricted stock unit shares withheld for withholding tax | 7,700,000 | 12,500,000 | |||
Unrecognized compensation costs related to unvested units | $ 152,900,000 | $ 152,900,000 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 7,700,000 | 7,700,000 | |||
Weighted average period of recognition for unrecognized compensation costs (in years) | 2 years 10 months 24 days | ||||
[1] | (1)Aggregate intrinsic value for RSUs and other awards represents the closing price per share of the Company’s common stock on December 24, 2015, the last business day preceding the fiscal quarter-end, multiplied by the number of RSUs outstanding or expected to vest as of December 26, 2015. |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Based Compensation, Market Stock Units (Details) - Market Stock Units [Member] - USD ($) | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 26, 2015 | Dec. 27, 2014 | ||
Outstanding and expected to vest MSUs [Roll Forward] | ||||
Weighted average grant date fair value (per share) | $ 29.64 | $ 15.64 | ||
Outstanding, beginning | 414,840 | |||
Granted | 361,684 | |||
Released | 0 | |||
Cancelled | (76,560) | |||
Outstanding, ending | 699,964 | 699,964 | ||
Outstanding, weighted average remaining contractual term (in years) | 3 years 4 months 24 days | |||
Outstanding, aggregate intrinsic value | [1] | $ 26,829,620 | $ 26,829,620 | |
Expected to vest, number of shares | 566,843 | 566,843 | ||
Outstanding and expected to Vest, weighted average remaining contractual term 3 | 3 years 4 months 24 days | |||
Outstanding and expected to vest, aggregate intrinsic value | [1] | $ 21,727,097 | $ 21,727,097 | |
Unrecognized compensation costs related to unvested units | $ 13,900,000 | $ 13,900,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 700,000 | 700,000 | ||
Weighted average period of recognition for unrecognized compensation costs (in years) | 3 years 4 months 24 days | |||
[1] | (1)Aggregate intrinsic value for MSUs represents the closing price per share of the Company’s common stock on December 24, 2015, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of December 26, 2015. |
Stock-Based Compensation, Emplo
Stock-Based Compensation, Employee Stock Purchase Plan (Details) - ESP Plan [Member] - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 months | 6 months | 6 months | 6 months |
Risk-free interest rate | 0.40% | 0.10% | 0.40% | 0.10% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 33.10% | 26.40% | 33.10% | 26.40% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 3.60% | 3.50% | 3.60% | 3.50% |
Unrecognized compensation costs related to unvested units | $ 7.5 | $ 7.7 | $ 7.5 | $ 7.7 |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Numerator for basic earnings per share and diluted earnings per share | ||||
Net income | $ 67,469 | $ (72,034) | $ (4,674) | $ 27,946 |
Denominator for basic earnings per share | 285,526 | 282,992 | 285,057 | 283,539 |
Effect of dilutive securities | ||||
Stock options, ESPP and RSUs | 4,995 | 0 | 0 | 5,337 |
Denominator for diluted earnings per share | 290,521 | 282,992 | 285,057 | 288,876 |
Earnings per share, Basic (per share) | $ 0.24 | $ (0.25) | $ (0.02) | $ 0.10 |
Earnings per share, Diluted (per share) | $ 0.23 | $ (0.25) | $ (0.02) | $ 0.10 |
Antidilutive securities excluded from computation of earnings per share | 100 | 5,800 | 5,600 | 5,900 |
Segment Information (Details)
Segment Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Jun. 27, 2015 | |
Segment Reporting Information [Line Items] | |||||
Revenues | $ 510,831 | $ 566,809 | $ 1,073,341 | $ 1,147,084 | |
Long-lived assets | 770,548 | 770,548 | $ 1,090,739 | ||
United States [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 61,633 | 70,336 | 123,693 | 144,931 | |
Long-lived assets | 455,051 | 455,051 | 783,148 | ||
China [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 197,420 | 242,303 | 421,657 | 482,320 | |
Rest of Asia [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 153,203 | 155,388 | 323,137 | 320,820 | |
Europe [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 85,951 | 80,992 | 177,854 | 164,957 | |
Philippines [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Long-lived assets | 181,140 | 181,140 | 166,405 | ||
THAILAND | |||||
Segment Reporting Information [Line Items] | |||||
Long-lived assets | 52,175 | 52,175 | 56,776 | ||
Rest of World [Member] | |||||
Segment Reporting Information [Line Items] | |||||
Revenues | 12,624 | $ 17,790 | 27,000 | $ 34,056 | |
Long-lived assets | $ 82,182 | $ 82,182 | $ 84,410 |
Comprehensive Income Loss Accum
Comprehensive Income Loss Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (17,234) | $ (17,173) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (1,224) | (2,141) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 920 | 1,152 | ||
Other Comprehensive Income (Loss), Tax | 9 | (377) | ||
Other Comprehensive Income (Loss), Net of Tax | $ 71 | $ 535 | (295) | (1,366) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (17,529) | (18,539) | (17,529) | (18,539) |
Unrealized Holding Gains (Losses) on Intercompany Receivables [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (6,280) | (5,753) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | (116) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Tax | 0 | (516) | ||
Other Comprehensive Income (Loss), Net of Tax | 0 | (632) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (6,280) | (6,385) | (6,280) | (6,385) |
Accumulated Defined Benefit Plans Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (10,004) | (10,373) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 505 | 719 | ||
Other Comprehensive Income (Loss), Tax | (161) | (242) | ||
Other Comprehensive Income (Loss), Net of Tax | 344 | 477 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (9,660) | (9,896) | (9,660) | (9,896) |
Accumulated Translation Adjustment [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,136) | (1,136) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,136) | (1,136) | (1,136) | (1,136) |
Accumulated Net Gain (Loss) from Designated or Qualifying Cash Flow Hedges [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 53 | (11) | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (941) | (1,917) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 415 | 433 | ||
Other Comprehensive Income (Loss), Tax | 170 | 381 | ||
Other Comprehensive Income (Loss), Net of Tax | (356) | (1,103) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (303) | (1,114) | (303) | (1,114) |
Unrealized Holding Gains (losses) on Available-for-sale Investments [Member] | ||||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||||
Accumulated Other Comprehensive Income (Loss), Net of Tax | 133 | 100 | ||
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (283) | (108) | ||
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Tax | 0 | 0 | ||
Other Comprehensive Income (Loss), Net of Tax | (283) | (108) | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (150) | $ (8) | $ (150) | $ (8) |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Income Tax Disclosure [Abstract] | ||||
Provision for income taxes | $ 12,471 | $ 359 | $ 2,447 | $ (5,140) |
Effective Income Tax Rate Reconciliation, Percent | 15.60% | (0.50%) | (109.90%) | (22.50%) |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |||
Goodwill, Impairment Loss | $ 84,110 | $ 84,100 | $ 84,100 | |
Effective Income Tax Rate Reconciliation, Tax Credit, Research, Amount | 2,500 | 2,900 | $ 2,500 | 2,900 |
Unrecognized Tax Benefits, Interest on Income Taxes Accrued | $ 3,800 | 3,800 | ||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | $ 1,000 | |||
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 24,800 | $ 24,800 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 26, 2015 | Dec. 27, 2014 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Product Warranty Accrual | $ 14,329 | $ 21,296 |
Product Warranty Accrual, Warranties Issued | 2,247 | 1,168 |
Product Warranty Accrual, Payments | (5,909) | (7,113) |
Product Warranty Accrual, Preexisting, Increase (Decrease) | 873 | 1,380 |
Product Warranty Accrual | 11,540 | 16,731 |
Product Warranty Accrual, Current | 7,240 | 8,131 |
Product Warranty Accrual, Noncurrent | $ 4,300 | $ 8,600 |
Common Stock Repurchases (Detai
Common Stock Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 6 Months Ended | |
Dec. 26, 2015 | Jul. 31, 2013 | |
Common Stock Repurchases [Abstract] | ||
Stock repurchase program, authorized amount | $ 1,000 | |
Shares of common stock repurchased | 1.8 | |
Value of common stock repurchased | $ 62.8 | |
Stock repurchase program, remaining authorized amount | $ 503.9 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 26, 2015 | Sep. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Jun. 27, 2015 | |
Goodwill [Line Items] | ||||||
Goodwill, Impairment Loss | $ (84,110) | $ (84,100) | $ (84,100) | |||
Impairment of Long-Lived Assets to be Disposed of | 1,950 | $ 157,700 | $ 50,745 | $ 159,647 | $ 60,971 | |
Assets Held For Sale, Not Part of Disposal Group, Goodwill | 20,999 | $ 20,999 | $ 0 | |||
Sensing Solutions [Member] | ||||||
Goodwill [Line Items] | ||||||
Impairment of Long-Lived Assets to be Disposed of | 45,200 | |||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 8,900 |
Goodwill and Intangible Asset51
Goodwill and Intangible Assets Useful Lives of Amortizable Intangible Assets (Details) | 6 Months Ended |
Dec. 26, 2015 | |
Intellectual property [Member] | Minimum [Member] | |
Amortizable intangible assets, useful life, minimum (in years) | 1 year |
Intellectual property [Member] | Maximum [Member] | |
Amortizable intangible assets, useful life, minimum (in years) | 10 years |
Customer relationships [Member] | Minimum [Member] | |
Amortizable intangible assets, useful life, minimum (in years) | 4 years |
Customer relationships [Member] | Maximum [Member] | |
Amortizable intangible assets, useful life, minimum (in years) | 10 years |
Tradename [Member] | Minimum [Member] | |
Amortizable intangible assets, useful life, minimum (in years) | 3 years |
Tradename [Member] | Maximum [Member] | |
Amortizable intangible assets, useful life, minimum (in years) | 4 years |
Patents [Member] | |
Amortizable intangible assets, useful life, minimum (in years) | 5 years |
Goodwill and Intangible Asset52
Goodwill and Intangible Assets, Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Jun. 27, 2015 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
Original Cost | $ 455,092 | $ 455,092 | $ 567,192 | ||
Accumulated Amortization | 311,417 | 311,417 | 364,742 | ||
Net | 143,675 | 143,675 | 202,450 | ||
Intangible Assets, Gross | 514,294 | 514,294 | 626,394 | ||
Total purchased intangible assets | 202,877 | 202,877 | 261,652 | ||
Assets Held for Sale, not part of Disposal Group, Intangible Assets Net | 20,273 | 20,273 | 0 | ||
Cost of goods sold, amortization | 14,734 | $ 18,750 | 31,372 | $ 37,500 | |
Amortization of Intangible Assets | 3,538 | 4,155 | 7,129 | 8,482 | |
Intangible Asset Amortization Expense | 18,272 | $ 22,905 | 38,501 | $ 45,982 | |
Future amortization expense [Abstract] | |||||
Remaining six months of 2016 | 28,734 | 28,734 | |||
2,017 | 49,091 | 49,091 | |||
2,018 | 41,563 | 41,563 | |||
2,019 | 13,278 | 13,278 | |||
2,020 | 3,358 | 3,358 | |||
2,021 | 2,888 | 2,888 | |||
Thereafter | 4,763 | 4,763 | |||
Net | 143,675 | 143,675 | 202,450 | ||
Intellectual property [Member] | |||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
Original Cost | 347,262 | 347,262 | 435,962 | ||
Accumulated Amortization | 234,639 | 234,639 | 276,175 | ||
Net | 112,623 | 112,623 | 159,787 | ||
Future amortization expense [Abstract] | |||||
Net | 112,623 | 112,623 | 159,787 | ||
Customer relationships [Member] | |||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
Original Cost | 96,830 | 96,830 | 120,230 | ||
Accumulated Amortization | 69,925 | 69,925 | 82,774 | ||
Net | 26,905 | 26,905 | 37,456 | ||
Future amortization expense [Abstract] | |||||
Net | 26,905 | 26,905 | 37,456 | ||
Tradename [Member] | |||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
Original Cost | 8,500 | 8,500 | 8,500 | ||
Accumulated Amortization | 5,686 | 5,686 | 4,886 | ||
Net | 2,814 | 2,814 | 3,614 | ||
Future amortization expense [Abstract] | |||||
Net | 2,814 | $ 2,814 | 3,614 | ||
Patents [Member] | |||||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||||
Amortizable intangible assets, useful life, minimum (in years) | 5 years | ||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
Original Cost | 2,500 | $ 2,500 | 2,500 | ||
Accumulated Amortization | 1,167 | 1,167 | 907 | ||
Net | 1,333 | 1,333 | 1,593 | ||
Future amortization expense [Abstract] | |||||
Net | 1,333 | 1,333 | 1,593 | ||
In Process Research and Development [Member] | |||||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||||
IPR&D | $ 59,202 | $ 59,202 | $ 59,202 |
Impairment of Long-Lived Asse53
Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Dec. 26, 2015 | Sep. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Long Lived Assets Held-for-sale [Line Items] | |||||
Impairment of Long-Lived Assets to be Disposed of | $ 1,950 | $ 157,700 | $ 50,745 | $ 159,647 | $ 60,971 |
Gain (Loss) on Disposition of Property Plant Equipment | $ 5,863 | $ (2,088) | |||
San Jose Wafer Fab [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Proceeds from Sale of Other Property, Plant, and Equipment | 39,000 | ||||
Gain (Loss) on Disposition of Property Plant Equipment | $ 3,800 | ||||
Sensing Solutions [Member] | |||||
Long Lived Assets Held-for-sale [Line Items] | |||||
Impairment of Long-Lived Assets to be Disposed of | $ 45,200 |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | Jun. 27, 2015 | ||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Reserve | $ 21,975 | |||||
Severance and restructuring expenses | 64,320 | |||||
Payments for Restructuring | (21,467) | |||||
Restructuring Reserve, Accrual Adjustment | (1,192) | |||||
Restructuring Reserve | $ 63,636 | 63,636 | ||||
Restructuring and Related Cost, Cost Incurred to Date | [1] | 159,404 | 159,404 | |||
Restructuring and Related Cost, Expected Cost | 12,658 | 12,658 | ||||
Employee-related Liabilities | 13,953 | 13,953 | $ 18,221 | |||
Accrued Liabilities | 2,410 | 2,410 | 2,004 | |||
Restructuring Reserve, Noncurrent | 1,609 | 1,609 | $ 1,750 | |||
Severance and Restructuring Charges | 10,652 | $ 13,635 | 17,778 | $ 15,020 | ||
San Jose Fab Shutdown Plan [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Reserve | 6,725 | |||||
Severance and restructuring expenses | 42,573 | |||||
Payments for Restructuring | (5,104) | |||||
Restructuring Reserve, Accrual Adjustment | (553) | |||||
Restructuring Reserve | 43,641 | 43,641 | ||||
Restructuring and Related Cost, Cost Incurred to Date | [1] | 100,239 | 100,239 | |||
Restructuring and Related Cost, Expected Cost | 0 | 0 | ||||
Other Restructuring Plans [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Reserve | 15,250 | |||||
Severance and restructuring expenses | 21,747 | |||||
Payments for Restructuring | (16,363) | |||||
Restructuring Reserve, Accrual Adjustment | (639) | |||||
Restructuring Reserve | 19,995 | 19,995 | ||||
Restructuring and Related Cost, Cost Incurred to Date | [1] | 59,165 | 59,165 | |||
Restructuring and Related Cost, Expected Cost | 12,658 | 12,658 | ||||
Employee Severance [Member] | San Jose Fab Shutdown Plan [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Reserve | [2] | 6,725 | ||||
Severance and restructuring expenses | [2] | 973 | ||||
Payments for Restructuring | [2] | (5,104) | ||||
Restructuring Reserve, Accrual Adjustment | [2] | (553) | ||||
Restructuring Reserve | [2] | 2,041 | 2,041 | |||
Restructuring and Related Cost, Cost Incurred to Date | [1],[2] | 7,145 | 7,145 | |||
Restructuring and Related Cost, Expected Cost | [2] | 0 | 0 | |||
Restructuring Charge, Charges and Change in Estimates | [2] | 0 | 400 | |||
Employee Severance [Member] | Other Restructuring Plans [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Reserve | [2] | 11,496 | ||||
Severance and restructuring expenses | [2] | 15,940 | ||||
Payments for Restructuring | [2] | (16,110) | ||||
Restructuring Reserve, Accrual Adjustment | [2] | 586 | ||||
Restructuring Reserve | [2] | 11,912 | 11,912 | |||
Restructuring and Related Cost, Cost Incurred to Date | [1],[2] | 46,225 | 46,225 | |||
Restructuring and Related Cost, Expected Cost | [2] | 467 | 467 | |||
Restructuring Charge, Charges and Change in Estimates | [2] | 10,700 | 17,000 | |||
WLP Accelerated Depreciation [Member] | Other Restructuring Plans [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Reserve | [3] | 0 | ||||
Severance and restructuring expenses | [3] | 2,000 | 4,064 | |||
Payments for Restructuring | [3] | 0 | ||||
Restructuring Reserve, Accrual Adjustment | [3] | 0 | ||||
Restructuring Reserve | [3] | 4,064 | 4,064 | |||
Restructuring and Related Cost, Cost Incurred to Date | [1],[3] | 4,064 | 4,064 | |||
Restructuring and Related Cost, Expected Cost | [3] | 12,191 | 12,191 | |||
Accelerated Depreciation [Member] | San Jose Fab Shutdown Plan [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Reserve | [3] | 0 | ||||
Severance and restructuring expenses | [3] | 0 | 41,600 | |||
Payments for Restructuring | [3] | 0 | ||||
Restructuring Reserve, Accrual Adjustment | [3] | 0 | ||||
Restructuring Reserve | [3] | 41,600 | 41,600 | |||
Restructuring and Related Cost, Cost Incurred to Date | [1],[3] | 93,094 | 93,094 | |||
Restructuring and Related Cost, Expected Cost | [3] | 0 | 0 | |||
Lease Termination Losses [Member] | Other Restructuring Plans [Member] | ||||||
Restructuring Reserve [Roll Forward] | ||||||
Restructuring Reserve | [4] | 3,754 | ||||
Severance and restructuring expenses | [4] | 1,743 | ||||
Payments for Restructuring | [4] | (253) | ||||
Restructuring Reserve, Accrual Adjustment | [4] | (1,225) | ||||
Restructuring Reserve | [4] | 4,019 | 4,019 | |||
Restructuring and Related Cost, Cost Incurred to Date | [1],[4] | 8,876 | 8,876 | |||
Restructuring and Related Cost, Expected Cost | [4] | $ 0 | $ 0 | |||
[1] | Costs incurred to date presents the cumulative costs recorded in fiscal year 2015 and 2016 for the above named restructuring activities. | |||||
[2] | Charges and change in estimates are included in Severance and restructuring expenses in the accompanying Condensed Consolidated Statements of Income. | |||||
[3] | Charges and change in estimates are included in Cost of goods sold in the accompanying Condensed Consolidated Statements of Income. | |||||
[4] | Charges and change in estimates are included in Severance and restructuring expenses and Other operating expenses (income), net in the accompanying Condensed Consolidated Statements of Income. |
Restructuring Activities Change
Restructuring Activities Change in Estimate (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 26, 2015 | Dec. 27, 2014 | Dec. 26, 2015 | Dec. 27, 2014 | |
Change in Accounting Estimate [Line Items] | ||||
Operating Income (Loss) | $ 89,533 | $ (64,076) | $ 13,768 | $ 36,882 |
Net income | $ 67,469 | $ (72,034) | $ (4,674) | $ 27,946 |
Basic (per share) | $ 0.24 | $ (0.25) | $ (0.02) | $ 0.10 |
Diluted (per share) | $ 0.23 | $ (0.25) | $ (0.02) | $ 0.10 |
Service Life [Member] | ||||
Change in Accounting Estimate [Line Items] | ||||
Operating Income (Loss) | $ (2,032) | $ (8,895) | $ (45,664) | $ (8,895) |
Operating Income (Loss), Excluding Accelerated Depreciation Expense | 91,565 | (55,181) | 59,432 | 45,777 |
Net income | (5,650) | (9,756) | (42,379) | (9,756) |
Net Income (Loss), Excluding Accelerated Depreciation Expense | $ 73,119 | $ (62,278) | $ 37,705 | $ 37,702 |
Basic (per share) | $ 0.26 | $ (0.22) | $ 0.13 | $ 0.13 |
Diluted (per share) | 0.25 | (0.22) | 0.13 | 0.13 |
Decrease in basic earnings per share | (0.02) | (0.03) | (0.15) | (0.03) |
Decrease in Diluted Earnings Per Share | $ (0.02) | $ (0.03) | $ (0.15) | $ (0.03) |
Subsequent Event (Details)
Subsequent Event (Details) $ in Millions | 6 Months Ended |
Dec. 26, 2015USD ($) | |
Subsequent Event [Line Items] | |
Proceeds from Divestiture of Businesses | $ 105 |