Document and Entity Information
Document and Entity Information Document - USD ($) | 12 Months Ended | ||
Jun. 25, 2016 | Aug. 05, 2016 | Dec. 26, 2015 | |
Entity Information [Line Items] | |||
Entity Registrant Name | MAXIM INTEGRATED PRODUCTS INC | ||
Entity Central Index Key | 743,316 | ||
Trading Symbol | MXIM | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 25, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Current Fiscal Year End Date | --06-25 | ||
Entity Current Reporting Status | Yes | ||
Entity Well-known Seasoned Issuer | No | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 283,511,274 | ||
Entity Public Float | $ 6,710,823,712 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 25, 2016 | Jun. 27, 2015 |
Current assets: | ||
Cash and cash equivalents, at carrying value | $ 2,105,229 | $ 1,550,965 |
Short-term investments | 125,439 | 75,154 |
Total cash, cash equivalents and short-term investments | 2,230,668 | 1,626,119 |
Accounts receivable, net of allowances of $13,645 in 2013 and $12,529 in 2012 | 256,531 | 278,844 |
Inventories | 227,929 | 288,474 |
Deferred tax assets | 0 | 77,306 |
Other current assets | 91,920 | 48,660 |
Total current assets | 2,807,048 | 2,319,403 |
Property, plant and equipment, net | 692,551 | 1,090,739 |
Intangible assets, net | 146,540 | 261,652 |
Goodwill | 490,648 | 511,647 |
Other assets | 84,100 | 24,422 |
Assets Held-for-sale, Not Part of Disposal Group, Current | 13,729 | 8,208 |
TOTAL ASSETS | 4,234,616 | 4,216,071 |
Current liabilities: | ||
Accounts payable | 82,535 | 88,322 |
Income taxes payable | 21,153 | 34,779 |
Employee-related Liabilities, Current [Abstract] | 166,698 | 181,360 |
Accrued liabilities | 50,521 | 47,365 |
Deferred income on shipments to distributors | 38,779 | 30,327 |
Short-term Debt | 249,717 | 1,024 |
Total current liabilities | 609,403 | 383,177 |
Long-term debt, excluding current maturities | 990,090 | 987,687 |
Income taxes payable | 480,645 | 410,378 |
Deferred tax liabilities | 756 | 90,588 |
Other liabilities | 45,908 | 54,221 |
Total liabilities | 2,126,802 | 1,926,051 |
Stockholders' equity: | ||
Preferred stock, $0.001 par value, Authorized: 2,000 shares, issued and outstanding: none | 0 | 0 |
Common stock, $0.001 par value, Authorized: 960,000 shares, Issued and outstanding: 287,620 in 2013 and 292,732 in 2012 | 284 | 283 |
Additional paid-in capital | 0 | 27,859 |
Retained earnings | 2,121,749 | 2,279,112 |
Accumulated other comprehensive income (loss), net of tax | (14,219) | (17,234) |
Total stockholders' equity | 2,107,814 | 2,290,020 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 4,234,616 | $ 4,216,071 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) (Parentheticals) - USD ($) shares in Thousands, $ in Thousands | Jun. 25, 2016 | Jun. 27, 2015 |
Allowance for Doubtful Accounts Receivable, Current | $ 32,108 | $ 18,286 |
Preferred Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Preferred Stock, Shares Authorized | 2,000 | 2,000 |
Preferred Stock, Shares Issued | 0 | 0 |
Preferred Stock, Shares Outstanding | 0 | 0 |
Common Stock, Par or Stated Value Per Share | $ 0.001 | $ 0.001 |
Common Stock, Shares Authorized | 960,000 | 960,000 |
Common Stock, Shares, Issued | 283,909 | 284,823 |
Common Stock, Shares, Outstanding | 283,909 | 284,823 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Income Statement [Abstract] | |||
Net revenues | $ 2,194,719 | $ 2,306,864 | $ 2,453,663 |
Cost of goods sold | 950,331 | 1,034,997 | 1,068,898 |
Gross margin | 1,244,388 | 1,271,867 | 1,384,765 |
Operating expenses: | |||
Research and development | 467,161 | 521,772 | 558,168 |
Selling, general and administrative | 288,899 | 308,065 | 324,734 |
Intangible asset amortization | 12,205 | 16,077 | 17,690 |
Impairment of long-lived assets | 160,582 | 67,042 | 11,644 |
Goodwill and Intangible Asset Impairment | 27,602 | 93,010 | 2,580 |
Severance and restructuring expenses | 24,479 | 30,642 | 24,902 |
Business Combination, Acquisition Related Costs | 0 | 0 | 6,983 |
Other operating expenses, net | (50,389) | (2,021) | 15,773 |
Total operating expenses | 930,539 | 1,034,587 | 962,474 |
Operating income (loss) | 313,849 | 237,280 | 422,291 |
Other Nonoperating Income (Expense) | (28,795) | 8,890 | (13,065) |
Income before provision for income taxes | 285,054 | 246,170 | 409,226 |
Provision for income taxes | 57,579 | 40,132 | 54,416 |
Net income | $ 227,475 | $ 206,038 | $ 354,810 |
Earnings per share: | |||
Basic net income per share | $ 0.80 | $ 0.73 | $ 1.25 |
Diluted net income per share | $ 0.79 | $ 0.71 | $ 1.23 |
Shares used in the calculation of earnings per share: | |||
Basic | 285,081 | 283,675 | 283,344 |
Diluted | 289,479 | 288,949 | 289,108 |
Dividends paid per share | $ 1.20 | $ 1.12 | $ 1.04 |
Consolidatd Statements of Compr
Consolidatd Statements of Comprehensive Income Statement - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Net income | $ 227,475 | $ 206,038 | $ 354,810 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 356 | 33 | 77 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | (545) | 64 | 993 |
Other Comprehensive Income (Loss), Foreign Currency Transaction and Translation Adjustment, Net of Tax | 0 | 0 | 391 |
Other Comprehensive Income (Loss), Post Retirement Benefits Unrealized Gain (loss) Arising During Period, Net of Tax , | 3,204 | 369 | (4,535) |
Deferred tax on unrealized exchange gain (loss) on intercompany receivables | 0 | (527) | 1,648 |
Other Comprehensive Income (Loss), Net of Tax | 3,015 | (61) | (1,426) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 230,490 | 205,977 | 353,384 |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | 0 | 0 | 13 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | 202 | (92) | (195) |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | $ (455) | $ (458) | $ 1,274 |
Consolidated Statement of Stock
Consolidated Statement of Stockholders' Equity - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comprehensive Loss [Member] |
Common Stock, Dividends, Per Share, Cash Paid | $ 1.04 | ||||
Balance, shares at Jun. 29, 2013 | 287,620 | ||||
Balance at Jun. 29, 2013 | $ 2,507,998 | $ 288 | $ 0 | $ 2,523,457 | $ (15,747) |
Components of comprehensive income: | |||||
Net income | 354,810 | 0 | 0 | 354,810 | 0 |
Other Comprehensive Income (Loss), Net of Tax | $ (1,426) | $ 0 | 0 | 0 | (1,426) |
Repurchase of common stock, shares | (10,400) | (10,424) | |||
Repurcahse of common stock, value | $ (305,314) | $ (10) | (145,006) | (160,298) | 0 |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 1,992 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (31,384) | $ 2 | (31,386) | 0 | 0 |
Stock options exercised, shares | 3,569 | ||||
Stock options exercised, value | 69,639 | $ 3 | 69,636 | 0 | 0 |
Stock based compensation | 85,324 | 0 | 85,324 | 0 | 0 |
Tax (shortfall) benefit on settlement of equity instruments | (68) | 0 | (68) | 0 | 0 |
Modification of Liability Instruments to Equity | 0 | ||||
Stock Issued During Period, Value, Acquisitions | 1,698 | $ 0 | 1,698 | 0 | 0 |
Common stock shares issued under Employee Stock Purchase Plan | 1,684 | ||||
Common stock value issued under Employee Stock Purchase Plan | 42,809 | $ 2 | 42,807 | 0 | 0 |
Dividends paid | (294,175) | $ 0 | 0 | (294,175) | 0 |
Balance, shares at Jun. 28, 2014 | 284,441 | ||||
Balance at Jun. 28, 2014 | $ 2,429,911 | $ 285 | 23,005 | 2,423,794 | (17,173) |
Common Stock, Dividends, Per Share, Cash Paid | $ 1.12 | ||||
Components of comprehensive income: | |||||
Net income | $ 206,038 | 0 | 0 | 206,038 | 0 |
Other Comprehensive Income (Loss), Net of Tax | $ (61) | $ 0 | 0 | 0 | (61) |
Repurchase of common stock, shares | (6,200) | (6,210) | |||
Repurcahse of common stock, value | $ (195,088) | $ (6) | (162,271) | (32,811) | 0 |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 1,792 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (27,793) | $ 0 | (27,793) | 0 | 0 |
Stock options exercised, shares | 3,169 | ||||
Stock options exercised, value | 58,587 | $ 3 | 58,584 | 0 | 0 |
Stock based compensation | 79,381 | 0 | 79,381 | 0 | 0 |
Tax (shortfall) benefit on settlement of equity instruments | 8,155 | 0 | 8,155 | 0 | 0 |
Modification of Liability Instruments to Equity | 7,848 | $ 0 | 7,848 | 0 | 0 |
Common stock shares issued under Employee Stock Purchase Plan | 1,631 | ||||
Common stock value issued under Employee Stock Purchase Plan | 40,951 | $ 1 | 40,950 | 0 | 0 |
Dividends paid | $ (317,909) | $ 0 | 0 | (317,909) | 0 |
Balance, shares at Jun. 27, 2015 | 284,823 | 284,823 | |||
Balance at Jun. 27, 2015 | $ 2,290,020 | $ 283 | 27,859 | 2,279,112 | (17,234) |
Common Stock, Dividends, Per Share, Cash Paid | $ 1.20 | ||||
Components of comprehensive income: | |||||
Net income | $ 227,475 | 0 | 0 | 227,475 | 0 |
Other Comprehensive Income (Loss), Net of Tax | $ 3,015 | $ 0 | 0 | 0 | 3,015 |
Repurchase of common stock, shares | (6,800) | (6,811) | |||
Repurcahse of common stock, value | $ (237,086) | $ (7) | (194,264) | (42,815) | 0 |
Stock Issued During Period, Shares, Restricted Stock Award, Net of Forfeitures | 1,416 | ||||
Stock Issued During Period, Value, Restricted Stock Award, Net of Forfeitures | (24,084) | $ 2 | (24,086) | 0 | 0 |
Stock options exercised, shares | 3,200 | ||||
Stock options exercised, value | 79,608 | $ 4 | 79,604 | 0 | 0 |
Stock based compensation | 69,539 | 0 | 69,539 | 0 | 0 |
Tax (shortfall) benefit on settlement of equity instruments | 7,375 | $ 0 | 7,375 | 0 | 0 |
Modification of Liability Instruments to Equity | 0 | ||||
Common stock shares issued under Employee Stock Purchase Plan | 1,281 | ||||
Common stock value issued under Employee Stock Purchase Plan | 33,975 | $ 2 | 33,973 | 0 | 0 |
Dividends paid | $ (342,023) | $ 0 | 0 | (342,023) | 0 |
Balance, shares at Jun. 25, 2016 | 283,909 | 283,909 | |||
Balance at Jun. 25, 2016 | $ 2,107,814 | $ 284 | $ 0 | $ 2,121,749 | $ (14,219) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Cash flows from operating activities: | |||
Net income | $ 227,475,000 | $ 206,038,000 | $ 354,810,000 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Stock-based compensation | 69,701,000 | 79,491,000 | 85,452,000 |
Depreciation and amortization | 244,637,000 | 299,396,000 | 244,593,000 |
Deferred taxes | (48,138,000) | (72,507,000) | (32,159,000) |
Research and Development in Process | 27,602,000 | 8,900,000 | 2,580,000 |
Loss (gain) from sale of property, plant and equipment | 2,283,000 | 419,000 | 2,187,000 |
Tax benefit (shortfall) related to stock-based compensation | 7,375,000 | 8,155,000 | (68,000) |
Excess tax benefit related to stock-based compensation | (9,550,000) | (12,549,000) | (14,192,000) |
Impairment of Long-Lived Assets to be Disposed of | 160,153,000 | 67,010,000 | 11,644,000 |
Impairment of Goodwill and Intangible Assets | 0 | 84,110,000 | 0 |
Gain (Loss) on Investments, Excluding Other than Temporary Impairments | 0 | 94,000 | 10,260,000 |
Cash Provided by (Used in) Operating Activities, Discontinued Operations | (58,944,000) | (35,849,000) | 0 |
Changes in assets and liabilities: | |||
Accounts receivable | 22,313,000 | 16,984,000 | 13,340,000 |
Inventories | 44,086,000 | 2,163,000 | 20,672,000 |
Other current assets | 2,943,000 | (8,783,000) | 45,557,000 |
Accounts payable | (3,676,000) | (4,201,000) | (11,255,000) |
Income taxes payable | 56,641,000 | 62,350,000 | 54,492,000 |
Deferred income on shipments to distributors | 8,452,000 | 4,593,000 | (823,000) |
All other accrued liabilities | (31,468,000) | (12,108,000) | (10,983,000) |
Net cash provided by operating activities | 721,885,000 | 693,706,000 | 776,107,000 |
Cash flows from investing activities: | |||
Purchases of property, plant and equipment | (69,369,000) | (75,816,000) | (132,523,000) |
Proceeds from sale of property, plant, and equipment | 85,142,000 | 29,035,000 | 5,293,000 |
Acquisitions | 0 | 0 | (459,256,000) |
Proceeds from Divestiture of Businesses | 105,000,000 | 35,550,000 | 0 |
Purchases of available-for-sale securities | (99,948,000) | (25,142,000) | (49,953,000) |
Payments to Acquire Investments | (10,483,000) | (200,000) | 0 |
Proceeds from sales/maturities of available-for-sale securities | 50,000,000 | 0 | 27,000,000 |
Payments for (Proceeds from) Other Investing Activities | 2,380,000 | 500,000 | 0 |
Net cash used in investing activities | 62,722,000 | (36,073,000) | (609,439,000) |
Cash flows from financing activities | |||
Excess tax benefit from stock-based compensation plans | 9,550,000 | 12,549,000 | 14,192,000 |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | 0 | 0 | (4,705,000) |
Repayment of notes payable | 0 | (437,000) | (4,708,000) |
Proceeds from Issuance of Debt | 250,000,000 | 0 | 497,895,000 |
Payments of Debt Issuance Costs | (283,000) | 0 | (3,431,000) |
Payments of Stock Issuance Costs | (24,084,000) | (27,793,000) | (31,384,000) |
Proceeds from Stock Options Exercised | 79,608,000 | 58,587,000 | 69,639,000 |
Proceeds from Issuance of Shares under Incentive and Share-based Compensation Plans, Including Stock Options | 33,975,000 | 40,951,000 | 42,809,000 |
Repurchase of common stock | (237,086,000) | (195,088,000) | (305,314,000) |
Dividends paid | (342,023,000) | (317,909,000) | (294,175,000) |
Net cash used in financing activities | (230,343,000) | (429,140,000) | (19,182,000) |
Net increase (decrease) in cash and cash equivalents | 554,264,000 | 228,493,000 | 147,486,000 |
Cash and cash equivalents: | |||
Beginning of year | 1,550,965,000 | 1,322,472,000 | 1,174,986,000 |
End of year | 2,105,229,000 | 1,550,965,000 | 1,322,472,000 |
Supplemental disclosures of cash flow information: | |||
Cash (refunded) paid, net during the year for income taxes | 43,898,000 | 40,500,000 | (6,455,000) |
Cash paid for interest | 29,381,000 | 29,410,000 | 22,861,000 |
Noncash financing and investing activities: | |||
Accounts payable related to property, plant and equipment purchases | 2,810,000 | 4,921,000 | 14,474,000 |
Modification of Liability Instruments to Equity | 0 | 7,848,000 | 0 |
Noncash or Part Noncash Divestiture, Amount of Consideration Received | $ 40,000,000 | $ 0 | $ 0 |
Nature of Operations
Nature of Operations | 12 Months Ended |
Jun. 25, 2016 | |
Nature of Operations [Abstract] | |
Nature of Operations [Text Block] | NATURE OF OPERATIONS Maxim Integrated Products, Inc. (āMaxim Integratedā, the āCompany,ā āwe,ā āusā or āourā), incorporated in Delaware, designs, develops, manufactures, and markets a broad range of linear and mixed-signal integrated circuits, commonly referred to as analog circuits, for a large number of customers in diverse geographical locations. The Company also provides a range of high-frequency process technologies and capabilities for use in custom designs. The analog market is fragmented and characterized by diverse applications and a great number of product variations with varying product life cycles. Maxim Integrated is a global company with manufacturing facilities in the United States, testing facilities in the Philippines and Thailand, and sales and circuit design offices throughout the world. Integrated circuit assembly is performed by foreign assembly subcontractors, located in countries throughout Asia, where wafers are separated into individual integrated circuits and assembled into a variety of packages. The major end-markets the Company's products are sold in are the automotive, communications and data center, computing, consumer and industrial markets. The Company has a 52-to-53-week fiscal year that ends on the last Saturday of June. Accordingly, every fifth or sixth year will be a 53-week fiscal year. Fiscal years 2016 , 2015 , and 2014 were each 52-week fiscal years (ended on June 25, 2016 , June 27, 2015 , and June 28, 2014 , respectively). |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 25, 2016 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies [Text Block] | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Use of Estimates The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates relate to the useful lives and fair value of fixed assets, valuation allowance for deferred tax assets, reserves relating to uncertain tax positions, allowances for doubtful accounts, customer returns and allowances, inventory valuation, reserves relating to litigation matters, assumptions about the fair value of reporting units, accrued liabilities and reserves, assumptions related to the calculation of stock-based compensation and the value of intangibles acquired and goodwill associated with business combinations. The Company bases its estimates and judgments on its historical experience, knowledge of current conditions and its beliefs of what could occur in the future, given available information. Actual results may differ from those estimates, and such differences may be material to the financial statements. Basis of Presentation The consolidated financial statements include the accounts of the Company and all of its majority-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. Cash Equivalents and Short-term Investments The Company considers all highly liquid financial instruments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents consist of demand accounts and money market funds. Short-term investments consist primarily of U.S. treasury debt securities with original maturities beyond three months at the date of purchase. The Company's short-term investments are considered available-for-sale. Such securities are carried at fair market value based on market quotes and other observable inputs. Unrealized gains and losses, net of tax, on securities in this category are reported as equity in the Consolidated Statement of Comprehensive Income. Realized gains and losses on sales of investment securities are determined based on the specific identification method and are included in Interest and other income (expense), net in the Consolidated Statements of Income. Derivative Instruments 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 Euro, South Korean Won, and Japanese Yen expenditures for sales offices and research and development activities undertaken outside of the U.S. The Company is exposed to fluctuations in foreign currency exchange rates for cash flows for expenditures and on orders and accounts receivable from sales in these foreign currencies. The Company has established risk management strategies designed to reduce the impact of volatility of future cash flows caused by changes in the exchange rate for these currencies. These strategies reduce, but do not entirely eliminate, the impact of currency exchange rates movements. Currency forward contracts are used to offset the currency risk of non-U.S. dollar-denominated assets and liabilities. The Company typically enters into currency forward contracts to hedge exposures associated with its expenditures denominated in Euros, Philippine Pesos and South Korean Won. The Company also hedges smaller expense exposures in several other foreign currencies. The Company enters into currency forward contracts to hedge its accounts receivable and backlog denominated in Euro, Japanese Yen and British Pound. Changes in fair value of the underlying assets and liabilities are generally offset by the changes in fair value of the related currency forward contract. The Company uses currency forward contracts to hedge exposure to variability in anticipated non-U.S. dollar denominated cash flows. These contracts are designated as cash flow hedges and recorded on the Consolidated Balance Sheets at their fair market value. The maturities of these instruments are generally less than six months . For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (loss) and reported within the Consolidated Statements of Comprehensive Income. These amounts have been reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For derivative instruments that are not designated as hedging instruments, gains and losses are recognized immediately in āInterest income (expense) and other, netā in the Consolidated Statements of Income. Fair Value of Financial Instruments The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. Inventories Inventories are stated at the lower of (i) standard cost, which approximates actual cost on a first-in-first-out basis, or (ii) market value. The Company's standard cost revision policy is to monitor manufacturing variances and revise standard costs on a quarterly basis. Because of the cyclical nature of the market, inventory levels, obsolescence of technology, and product life cycles, the Company generally writes down inventories to net realizable value based on forecasted product demand. Property, Plant and Equipment Property, plant and equipment are stated at cost. Depreciation is primarily computed on the straight-line method over the estimated useful lives of the assets, which range from 2 to 15 years for machinery and equipment and up to 40 years for buildings and building improvements. Leasehold improvements are amortized over the lesser of their useful lives or the remaining term of the related lease. When assets are retired or otherwise disposed of, the cost and accumulated depreciation or amortization is removed from the accounts and any resulting gain or loss is reflected in the Consolidated Statements of Income in the period recognized. The classification is based mainly on whether the asset is operating or not. The Company evaluates the recoverability of property, plant and equipment in accordance with Accounting Standards Codification (āASCā) No. 360, Accounting for the Property, Plant, and Equipment . (āASC 360ā). The Company performs periodic reviews to determine whether facts and circumstances exist that would indicate that the carrying amounts of property, plant and equipment are not recoverable and exceeds their fair values. If facts and circumstances indicate that the carrying amount of property, plant and equipment might not be fully recoverable, projected undiscounted net cash flows associated with the related asset or group of assets over their estimated remaining useful lives are compared against their respective carrying amounts. In the event that the projected undiscounted cash flows are not sufficient to recover the carrying value of the assets, the assets are written down to their estimated fair values based on their expected discounted future cash flows attributable to those assets. All long-lived assets classified as held for sale are reported at the lower of carrying amount or fair market value, less expected selling costs. Intangible Assets and Goodwill The Company accounts for intangible assets in accordance with ASC No. 350, Intangibles-Goodwill and Other, (āASC 350ā). The Company reviews goodwill and purchased intangible assets with indefinite lives for impairment annually and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable, such as when reductions in demand or significant economic slowdowns in the semiconductor industry are present. Intangible asset reviews are performed when indicators exist that could indicate the carrying value may not be recoverable based on comparisons to undiscounted expected future cash flows. If this comparison indicates that there is impairment, the impaired asset is written down to fair value, which is typically calculated using: (i) quoted market prices or (ii) discounted expected future cash flows utilizing a discount rate consistent with the guidance provided in FASB Concepts Statement No. 7, Using Cash Flow Information and Present Value in Accounting Measurements . Impairment is based on the excess of the carrying amount over the fair value of those assets. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. In accordance with ASC 350, the Company tests goodwill for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis or more frequently if the Company believes indicators of impairment exist. During the fourth quarter of fiscal year 2015, the Company changed its annual goodwill impairment testing date from the first quarter to the fourth quarter of each year. This change ensures the completion of the annual goodwill impairment test prior to the end of the annual reporting period, thereby aligning impairment testing procedures with year-end financial reporting and annual long-range plan and forecasting process. This change did not accelerate, delay, avoid, or cause an impairment charge, nor did this change result in adjustments to previously issued financial statements. The performance of the test involves a two-step process. The first step of the impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. The Company generally determines the fair value of the Company's reporting units using the income approach methodology of valuation that includes the discounted cash flow method as well as the market approach which includes the guideline company method. If the carrying amount of a reporting unit exceeds the reporting unit's fair value, the Company performs the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit's goodwill with the carrying value of that goodwill. 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 Companyās specifications. The general warranty policy provides for the repair or replacement of defective products or a credit to the customerās account. In addition, the Company may consider its relationship with the customer when reviewing product claims. In limited circumstances and for strategic customers in certain unique industries and applications, the Company's 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 customerās account should the product not meet the Companyās specifications and losses and/or damages results from the defective 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 the Company's 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. The short-term and long-term portions of the product warranty liability are included within the balance sheet captions Accrued expenses and Other liabilities, respectively, in the accompanying Consolidated Balance Sheets. Retirement Benefits The Company provides medical benefits to certain former and current employees pursuant to certain retirement agreements. The Company also provides retirement benefits to Philippines employees and to certain other employees in other countries. These benefits to individuals are accounted for pursuant to a documented plan under ASC No. 715, Compensation- Retirement Benefits (āASC 715ā) . Unrecognized actuarial gains and losses and prior service cost are amortized on straight-line basis over the remaining estimated service period of participants. The measurement date for the plan is fiscal year end. Income Taxes The Company accounts for income taxes using an asset and liability approach as prescribed in ASC 740-10, Income Taxes (āASC 740-10ā). The Company records the amount of taxes payable or refundable for the current and prior years and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company's financial statements or tax returns. A valuation allowance is recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. ASC 740-10 prescribes a recognition threshold and measurement framework for the financial statement reporting and disclosure of an income tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax position is recognized in the financial statements when it is more likely than not, based on the technical merits, that the position will be sustained upon examination, including resolution of any related appeals or litigation processes. A tax position that meets the recognition threshold is then measured to determine the largest amount of the benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes in the Consolidated Statements of Income. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws across multiple tax jurisdictions. Although ASC 740-10 provides clarification on the accounting for uncertainty in income taxes recognized in the financial statements, the recognition threshold and measurement framework will continue to require significant judgment by management. Resolution of these uncertainties in a manner inconsistent with the Company's expectations could have a material impact on the Company's results of operations. Revenue Recognition The Company recognizes revenue for sales to direct customers and sales to certain distributors upon shipment, provided that persuasive evidence of a sales arrangement exists, the price is fixed or determinable, title and risk of loss has transferred, collectability of the resulting receivable is reasonably assured, there are no customer acceptance requirements and the Company does not have any significant post-shipment obligations. Estimated returns for sales to direct customers and certain distributors are based on historical returns rates applied against current period gross revenues. Specific customer returns and allowances are considered within this estimate. Sales to certain distributors are made pursuant to agreements allowing for the possibility of certain sales price rebates or price protection and for non-warranty product return privileges. The non-warranty product return privileges include allowing certain distributors to return a small portion of the Company's products in their inventory based on their previous purchases. Given the uncertainties associated with the levels of non-warranty product returns, sales price rebates and price protection that could be issued to certain distributors, the Company defers recognition of such revenue and related cost of goods sold until receipt of notification from these distributors that product has been sold to their end-customers. Accounts receivable from direct customers and distributors are recognized and inventory is relieved upon shipment as title to inventories generally transfers upon shipment, at which point the Company has a legally enforceable right to collection under normal terms. Accounts receivable related to consigned inventory is recognized when the customer takes title to such inventory from its consigned location, at which point inventory is relieved, title transfers, and the Company has a legally enforceable right to collection under the terms of the Company's agreement with the related customers. The Company estimates potential future returns and sales allowances related to current period product revenue. Management analyzes historical returns, changes in customer demand and acceptance of products when evaluating the adequacy of returns and sales allowances. Estimates made by the Company may differ from actual returns and sales allowances. These differences may materially impact reported revenue and amounts ultimately collected on accounts receivable. Historically, such differences have not been material. At June 25, 2016 , June 27, 2015 , and June 28, 2014 the Company had $31.5 million , $17.4 million , and $16.2 million reserved for returns and allowances against accounts receivable, respectively. During fiscal years 2016 , 2015 and 2014 , the Company recorded $80.0 million , $81.5 million and $75.3 million for estimated returns and allowances against revenues, respectively. These amounts were offset by $65.9 million , $80.2 million and $71.6 million actual returns and allowances given during fiscal years 2016 , 2015 and 2014 , respectively. Related Party Transactions A member of the Company's board of directors is also a member of the board of directors of Flextronics International Ltd. During the fiscal years ended June 25, 2016 , June 27, 2015 , and June 28, 2014 , the Company sold approximately $73.8 million , $60.4 million , and $68.1 million , respectively, in products to Flextronics International Ltd., a contract manufacturer, in the ordinary course of its business. Research and Development Costs Research and development costs are expensed as incurred. Such costs consist primarily of expenditures for labor and benefits, masks, prototype wafers and depreciation. Shipping Costs Shipping costs billed to customers are included in net revenues and the related shipping costs are included in cost of goods sold in the Consolidated Statements of Income. Stock-Based Compensation Stock-based compensation cost is measured at the grant date, based on the fair value of the awards ultimately expected to vest and is recognized as an expense, on a straight-line basis, over the requisite service period. ASC 718 also requires forfeitures to be estimated at the time of grant and revised if necessary in subsequent periods if actual forfeitures or vesting differ from those estimates. Such revisions could have a material effect on the Company's operating results. The Company uses the Black-Scholes valuation model to measure the fair value of its stock options utilizing various inputs with respect to expected holding period, risk-free interest rates, stock price volatility and dividend yield. The assumptions the Company uses in the valuation model are based on subjective future expectations combined with management judgment. If any of the assumptions used in the Black-Scholes model changes, stock-based compensation for future awards may differ materially compared to the awards granted previously. The Company uses the Monte Carlo simulation model to measure the fair value of its market stock units on the date of grant. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis. Restructuring Post-employment benefits accrued for workforce reductions related to restructuring activities in the United States are accounted for under ASC No. 712, Compensation-Nonretirement Postemployment Benefits (āASC 712ā). A liability for post-employment benefits is recorded when payment is probable, the amount is reasonably estimable, and the obligation relates to rights that have vested or accumulated. In accordance with ASC No. 420, Exit or Disposal Cost Obligations , generally costs associated with restructuring activities initiated outside the United States have been recognized when they are incurred. The Company continually evaluates the adequacy of the remaining liabilities under its restructuring initiatives. Although the Company believes that these estimates accurately reflect the costs of its restructuring plans, actual results may differ, thereby requiring the Company to record additional provisions or reverse a portion of such provisions. Foreign Currency Translation and Remeasurement The U.S. dollar is the functional currency for the Company's foreign operations. Using the U.S. dollar as the functional currency, monetary assets and liabilities are remeasured at the year-end exchange rates. Certain non-monetary assets and liabilities are remeasured using historical rates. Consolidated Statements of Income are remeasured at the average exchange rates during the year. Foreign exchange gains and losses as recorded in the Consolidated Statements of Income for all periods presented were not material. Earnings Per Share Basic earnings per share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share incorporate the potentially dilutive incremental shares issuable upon the assumed exercise of stock options, the assumed vesting of outstanding restricted stock units and market stock units, and the assumed issuance of common stock under the stock purchase plan. The number of incremental shares from the assumed issuance of stock options is calculated by applying the treasury stock method. Litigation and Contingencies From time to time, the Company receives notices that its products or manufacturing processes may be infringing the patent or other intellectual property rights of others, notices of stockholder litigation or other lawsuits or claims against the Company. The Company periodically assesses each matter in order to determine if a contingent liability in accordance with ASC 450 should be recorded. In making this determination, management may, depending on the nature of the matter, consult with internal and external legal counsel and technical experts. The Company expenses legal fees associated with consultations and defense of lawsuits as incurred. Based on the information obtained, combined with management's judgment regarding all of the facts and circumstances of each matter, the Company determines whether a contingent loss is probable and whether the amount of such loss can be estimated. Should a loss be probable and estimable, the Company records a contingent loss in accordance with ASC 450. In determining the amount of a contingent loss, the Company takes into consideration advice received from experts in the specific matter, current status of legal proceedings, settlement negotiations which may be ongoing, prior case history and other factors. Should the judgments and estimates made by management be incorrect, the Company may need to record additional contingent losses that could materially adversely impact its results of operations. Alternatively, if the judgments and estimates made by management are incorrect and a particular contingent loss does not occur, the contingent loss recorded would be reversed thereby favorably impacting the Company's results of operations. Pursuant to the Company's charter documents and separate written indemnification agreements, the Company has certain indemnification obligations to its current officers and directors, as well as certain former officers and directors. Pursuant to such obligations, the Company has incurred substantial expenses related to legal fees and expenses to certain former officers of the Company subject to civil charges by the SEC in connection with Maxim Integrated's historical stock option granting practices. The Company has also incurred substantial expenses related to legal fees and expenses advanced to certain current and former officers and directors who were defendants in the civil actions described above. The Company expenses such amounts as incurred. Concentration of Credit Risk Due to the Company's credit evaluation and collection process, bad debt expenses have not been significant. Credit risk with respect to trade receivables is limited because a large number of geographically diverse customers make up the Company's customer base, thus spreading the credit risk. The Company derived approximately 38% of its fiscal year 2016 revenue from sales made through distributors which includes distribution sales to Samsung and catalog distributors. The Company's primary distributor is Avnet Electronics (āAvnetā). Avnet, like the Company's other distributors, is not an end customer, but rather serves as a channel of sale to many end users of the Company's products. Avnet accounted for 19% , 19% and 17% of revenues in fiscal years 2016 , 2015 and 2014 , respectively, and 18% and 18% of accounts receivable in fiscal years 2016 and 2015 , respectively. Sales to Samsung, the Company's largest single end customer (through direct sales and distributors), accounted for approximately 14% , 15% and 20% of net revenues in fiscal years 2016 , 2015 and 2014 , respectively, and 18% and 20% of accounts receivable as of June 25, 2016 and June 27, 2015 . No other customer accounted for more than 10% of the Company's revenues in the fiscal year ended 2016 , 2015 , and 2014 , and no other customer accounted for more than 10% of the Company's accounts receivable in fiscal years 2016 and 2015 . The Company maintains cash, cash equivalents, and short-term investments with various high credit quality financial institutions, limits the amount of credit exposure to any one financial institution or instrument, and is exposed to credit risk in the event of default by these institutions to the extent of amounts recorded at the balance sheet date. To date, the Company has not incurred losses related to these investments. Recently Issued Accounting Pronouncements (i) New Accounting Updates Recently Adopted 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. The Company early adopted this accounting standard update during the fourth quarter of fiscal year 2016, with adjustments reflected on a retrospective basis for all periods presented. All debt issuance costs which were previously recorded as assets within the balance sheet have now been reclassified to be presented as a reduction of the debt liability on the Consolidated Balance Sheets. The adoption resulted in a $2.8 million and $1.2 million decrease in other current assets, a $7.1 million and $11.1 million decrease in other assets and a $9.9 million and $12.3 million decrease in long term debt as of June 25, 2016 and June 27, 2015 , respectively. 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 June 25, 2016, have been classified as noncurrent in the accompanying Consolidated Balance Sheets and the notes thereto. The adoption at the beginning of the second quarter of fiscal year 2016 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) . This standard provides a single set of guidelines for revenue recognition to be used across all industries and requires additional disclosures. 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. The Company is currently evaluating the potential impact of this standard on its financial position and results of operations, as well as its selected transition method. 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 application of this ASU will be by means of a cumulative-effect adjustment to the balance sheet. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) will be applied prospectively to equity investments that exist as of the date of adoption. The Company is evaluating the effects of the adoption of this ASU to its financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which supersedes the lease accounting requirements in Topic 840. ASU 2016-02 requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The guidance also requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entityās leasing activities, including significant judgments and changes in judgments. This guidance is effective beginning in the first quarter of fiscal year 2020 on a modified retrospective approach. The Company is currently evaluating the potential impact of this standard on its financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance is effective beginning in the first quarter of fiscal year 2018 and early adoption is permitted in an interim period with any adjus |
Balance Sheet Components
Balance Sheet Components | 12 Months Ended |
Jun. 25, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components [Text Block] | BALANCE SHEET COMPONENTS Inventories consist of: June 25, June 27, Inventories: (in thousands) Raw materials $ 6,505 $ 12,932 Work-in-process 148,762 199,716 Finished goods 72,662 75,826 $ 227,929 $ 288,474 The reduction of inventory from the period ended June 27, 2015 to June 25, 2016 was primarily driven by the Company's manufacturing transformation during fiscal year 2016 resulting in a higher composition of inventory manufacturing being outsourced to third party foundries, as well as reduction in inventory resulting from the inventory sold in connection with the disposal of the San Antonio facility of $12.3 million . Property, plant and equipment, net, consist of: June 25, June 27, Property, plant and equipment: (in thousands) Land $ 18,952 $ 45,040 Buildings and building improvements 240,507 338,394 Machinery and equipment 1,370,322 1,970,819 1,629,781 2,354,253 Less: accumulated depreciation and amortization (937,230 ) (1,263,514 ) $ 692,551 $ 1,090,739 The Company recorded $177.2 million , $209.0 million and $160.7 million of depreciation expense in fiscal years 2016 , 2015 and 2014 , respectively. Included in depreciation expense was $54.6 million , $51.5 million and $0.0 million of accelerated depreciation expense in fiscal years 2016 , 2015 , and 2014 , respectively, resulting from the change in estimated useful lives of certain long lived assets included in restructuring plans. The reduction of property, plant and equipment from the period ended June 27, 2015 to June 25, 2016 was primarily driven by the selling of the Company's wafer fabrication facilities in San Jose, California and San Antonio, Texas, and the Companyās wafer bump facility in Dallas, Texas during fiscal year 2016. Accrued salary and related expenses consist of: June 25, June 27, Accrued salary and related expenses: (in thousands) Accrued bonus $ 90,638 $ 86,506 Accrued vacation 30,753 36,906 Accrued salaries 14,320 16,572 Accrued severance and post-employment benefits 14,230 25,136 Accrued fringe 4,748 6,007 Other 12,009 10,233 $ 166,698 $ 181,360 |
Fair Value Measurements
Fair Value Measurements | 12 Months Ended |
Jun. 25, 2016 | |
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 Companyās Level 2 assets and liabilities consist of U.S. treasury bills, certificates of deposit 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. Also within Level 2 assets and liabilities are shares of common stock received as consideration for the sale of the Company's wafer manufacturing facility in San Antonio, Texas which have been valued based on quoted prices in the active market for identical assets, adjusted for estimated timing of sale. 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 June 25, 2016 and June 27, 2015 . Assets and liabilities measured at fair value on a recurring basis were as follows: As of June 25, 2016 As of June 27, 2015 Fair Value Fair Value Measurements Using Total Balance Measurements Using Total Balance Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Assets Money market funds (1) $ 1,658,321 $ ā $ ā $ 1,658,321 $ 1,156,239 $ ā $ ā $ 1,156,239 U.S. treasury bills (2) ā 125,439 ā 125,439 ā 75,154 ā 75,154 Foreign currency forward contracts (3) ā 695 ā 695 ā 679 ā 679 Investment in common stock (3) ā 40,000 ā 40,000 ā ā ā ā Certificates of deposit (1) ā 70 ā 70 ā ā ā ā Total Assets $ 1,658,321 $ 166,204 $ ā $ 1,824,525 $ 1,156,239 $ 75,833 $ ā $ 1,232,072 Liabilities Foreign currency forward contracts (4) $ ā $ 1,327 $ ā $ 1,327 $ ā $ 613 $ ā $ 613 Total Liabilities $ ā $ 1,327 $ ā $ 1,327 $ ā $ 613 $ ā $ 613 (1) Included in Cash and cash equivalents in the accompanying Consolidated Balance Sheets. (2) Included in Short-term investments in the accompanying Consolidated Balance Sheets. (3) Included in Other current assets in the accompanying Consolidated Balance Sheets. (4) Included in Accrued expenses in the accompanying 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 fiscal years ended June 25, 2016 and June 27, 2015 : Fair Value Measured and Recorded Using Significant Unobservable Inputs (Level 3) June 25, June 27, Contingent Consideration (in thousands) Beginning balance $ ā $ 3,215 Total gains or losses (realized and unrealized): Included in earnings ā 384 Payments ā (3,599 ) Ending balance $ ā $ ā Changes in unrealized losses (gains) included in earnings related to liabilities still held as of period end $ ā $ ā During the fiscal years ended June 25, 2016 and June 27, 2015 , 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 June 25, 2016 and June 27, 2015 other than impairments of Long-Lived assets. For details, please refer to Note 10: āImpairment of long-lived assetsā. |
Financial Instruments
Financial Instruments | 12 Months Ended |
Jun. 25, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments [Text Block] | FINANCIAL INSTRUMENTS Short-term investments Fair values were as follows: June 25, 2016 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 bills $ 124,950 $ 489 $ ā $ 125,439 $ 75,022 $ 132 $ ā $ 75,154 Total available-for-sale investments $ 124,950 $ 489 $ ā $ 125,439 $ 75,022 $ 132 $ ā $ 75,154 In the fiscal years ended June 25, 2016 and June 27, 2015 , the Company did not recognize any impairment charges on short-term investments. The U.S. treasury bills have maturity dates between September 15, 2016 and July 15, 2018. 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 exclusively 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 (āASCā) No. 815-Derivatives and Hedging (āASC 815ā). As of June 25, 2016 and June 27, 2015 , respectively, the notional amounts of the forward contracts the Company held to purchase international currencies were $68.0 million and $54.2 million , respectively, and the notional amounts of forward contracts the Company held to sell international currencies were $2.6 million and $3.7 million , respectively. Derivatives not designated as hedging instruments As of June 25, 2016 and June 27, 2015 , respectively, the notional amounts of the forward contracts the Company held to purchase international currencies were $25.4 million and $31.1 million , respectively, and the notional amounts of forward contracts the Company held to sell international currencies were $24.6 million and $28.2 million , respectively. The fair values of outstanding foreign currency forward contracts and gain (loss) included in the Consolidated Statements of Income were not material for the fiscal years ended June 25, 2016 and June 27, 2015 . Outstanding debt obligations The following table summarizes the Company's outstanding debt obligations: June 25, 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 Short-term credit agreement 250,000 ā Notes denominated in Euro Term fixed rate notes (2.0%) due on September 30, 2015 ā 1,024 Total outstanding debt 1,250,000 1,001,024 Less: Current portion (included in āCurrent portion of debtā) (249,717 ) (1,024 ) Less: Reduction for unamortized discount and debt issuance costs (10,193 ) (12,313 ) Total long-term debt $ 990,090 $ 987,687 Long-term debt On November 21, 2013, the Company completed a public offering of $500 million aggregate principal amount of the Companyās 2.5% coupon senior unsecured and unsubordinated notes due in November 2018 (ā2018 Notesā), 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 (ā2023 Notesā), 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 debt indentures that govern the 2023 Notes and the 2018 Notes, respectively, include covenants that limit the Company's ability to grant liens on its facilities and to enter into sale and leaseback transactions, which could limit the Company's ability to secure additional debt funding in the future. In circumstances involving a change of control of the Company followed by a downgrade of the rating of the 2023 Notes or the 2018 Notes, the Company would be required to make an offer to repurchase the affected notes at a purchase price equal to 101% of the aggregate principal amount of such notes, plus accrued and unpaid interest. 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 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 $29.4 million , $29.4 million and $24.7 million during the years ended June 25, 2016 , June 27, 2015 , and June 28, 2014 , respectively. The estimated fair value of the Company's long-term debt was approximately $1,027 million as of June 25, 2016 . The estimated fair value of the debt is based primarily on observable market inputs and is a Level 2 measurement. The Company recorded interest expense of $32.7 million , $32.5 million , and $27.0 million during the fiscal years ended June 25, 2016 , June 27, 2015 , and June 28, 2014 , respectively. Credit facilities Revolving 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 June 25, 2016 , the Company had not borrowed any amounts from this credit facility and was in compliance with all debt covenants. Short-term credit agreement On June 23, 2016, a wholly-owned foreign subsidiary of the Company entered into a short-term credit agreement (the āCredit Agreementā) with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (the āLenderā), in order to facilitate the return of capital to the Company. The Credit Agreement provides for, among other things, the Lender making an unsecured term loan in an amount equal to $250.0 million and has a maturity date of June 22, 2017. The net proceeds of this credit agreement was approximately $249.7 million , after deducting paid issuance costs. The interest rate on the note is based on LIBOR plus a margin. The initial interest rate is 1.69% per annum and will be adjusted quarterly. 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 June 25, 2016 , the Company was in compliance with all covenants. Fair value approximates the carrying value, given the short-term nature of the loan. 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 | 12 Months Ended |
Jun. 25, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation [Text Block] | STOCK-BASED COMPENSATION At June 25, 2016 , the Company had one stock incentive plan, the Company's 1996 Stock Incentive Plan (the ā1996 Planā) and one employee stock purchase plan, the 2008 Employee Stock Purchase Plan (the ā2008 ESPPā). The 1996 Plan was adopted by the Board of Directors to provide the grant of incentive stock options, nonstatutory stock options, restricted stock units (āRSUsā), and market stock units (āMSUsā) to employees, directors, and consultants. Pursuant to the 1996 Plan, the exercise price for incentive stock options and non-statutory 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. Options generally 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 typically vest ratably over a two to 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. The number of shares that are released at the end of the performance period can range from zero to a maximum cap depending on the Company's performance. The performance metrics of this program are based on relative performance of the Companyās stock price as compared to the Semiconductor Exchange Traded Fund index, (the āSPDR S&Pā). The following tables show total stock-based compensation expense by type of award, and the resulting tax effect, included in the Consolidated Statements of Income for fiscal years 2016 , 2015 and 2014 : For the Year Ended June 25, Stock Options Restricted Stock Units and Other Awards Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 837 $ 5,697 $ 2,340 $ 8,874 Research and development 3,469 27,784 5,133 36,386 Selling, general and administrative 3,043 19,127 2,271 24,441 Pre-tax stock-based compensation expense $ 7,349 $ 52,608 $ 9,744 $ 69,701 Less: income tax effect 11,314 Net stock-based compensation expense $ 58,387 For the Year Ended June 27, Stock Options Restricted Stock Units and Other Awards Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 1,391 $ 8,226 $ 2,257 $ 11,874 Research and development 4,783 31,899 5,375 42,057 Selling, general and administrative 3,863 19,414 2,283 25,560 Pre-tax stock-based compensation expense $ 10,037 $ 59,539 $ 9,915 $ 79,491 Less: income tax effect 14,131 Net stock-based compensation expense $ 65,360 For the Year Ended June 28, Stock Options Restricted Stock Units and Other Awards Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 1,650 $ 8,466 $ 2,132 $ 12,248 Research and development 8,676 31,548 5,452 45,676 Selling, general and administrative 5,486 19,734 2,308 27,528 Pre-tax stock-based compensation expense $ 15,812 $ 59,748 $ 9,892 $ 85,452 Less: income tax effect 15,245 Net stock-based compensation expense $ 70,207 The expenses included in the Consolidated Statements of Income related to Restricted Stock Units and Other Awards include expenses related to Market Stock Units of $2.8 million , $1.7 million and $1.5 million for fiscal years 2016 , 2015 and 2014 , respectively. Stock Options The fair value of options granted to employees under the1996 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 Companyās 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 quarterās average stock price. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis. The Company did not grant any stock options in fiscal year 2016 . The fair value of options granted to employees in fiscal years 2015 and 2014 has been estimated using the following weighted-average assumptions: Stock Options For the Year Ended (1) June 27, June 28, Expected holding period (in years) 4.8 5.3 Risk-free interest rate 1.6 % 1.4 % Expected stock price volatility 26.7 % 34.6 % Dividend yield 3.2 % 3.2 % (1) Table excludes impact from assumptions used in valuing the Volterra substitute options granted on October 1, 2013 based on an expected holding period of 3.8 years, risk-free interest rate of 1.0% , expected stock price volatility of 27.5% and dividend yield of 3.4% . The weighted-average fair value of stock options granted were $5.56 and $7.36 per share for fiscal years 2015 and 2014 , respectively. The following table summarizes outstanding, exercisable and vested and expected to vest stock options as of June 25, 2016 and their activity during fiscal years 2016 , 2015 and 2014 : Options Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (1) Number of Shares Weighted Average Exercise Price Balance at June 29, 2013 20,081,339 $26.00 Options Granted 3,638,729 27.30 Options Exercised (3,568,775 ) 18.60 Options Cancelled (3,987,649 ) 34.86 Balance at June 28, 2014 16,163,644 25.74 Options Granted 63,584 32.22 Options Exercised (3,168,704 ) 18.39 Options Cancelled (2,885,508 ) 33.62 Balance at June 27, 2015 10,173,016 25.83 Options Granted ā ā Options Exercised (3,242,881 ) 25.05 Options Cancelled (995,056 ) 32.67 Balance at June 25, 2016 5,935,079 25.11 3.0 $ 71,297,014 Exercisable at June 25, 2016 3,251,896 $22.69 2.3 $ 46,799,932 Vested and expected to vest, June 25, 2016 5,794,417 $25.02 3.0 $ 69,869,048 (1) Aggregate intrinsic value represents the difference between the exercise price and the closing price per share of the Company's common stock on June 24, 2016, the last business day preceding the fiscal year end, multiplied by the number of options outstanding, exercisable or vested and expected to vest as of June 25, 2016 . The following table summarizes information about stock options that were outstanding and exercisable at June 25, 2016 : Outstanding Options Options Exercisable Range of Exercise Prices Number Outstanding at June 25, 2016 Weighted Average Remaining Contractual Term (In years) Weighted Average Exercise Price Number Exercisable at June 25, 2016 Weighted Average Exercise Price $12.00 - $20.00 1,068,741 1.2 $17.41 1,021,225 $17.32 $20.01 - $30.00 4,733,577 2.7 $26.63 2,186,711 $25.00 $30.01 - $40.00 132,761 4.0 $32.82 43,960 $32.29 5,935,079 3,251,896 The total intrinsic value of options exercised during fiscal years 2016 , 2015 and 2014 were $39.8 million , $45.6 million and $47.2 million , respectively. As of June 25, 2016 , there was $7.1 million of total unrecognized compensation costs related to 2.7 million unvested stock options expected to be recognized over a weighted average period of approximately 1.2 years. Restricted Stock Units and Other Awards The fair value of Restricted Stock Units (āRSUsā) and other awards under the Companyās 1996 Plan is estimated using the value of the Companyās common stock on the date of grant, reduced by the present value of dividends expected to be paid on the Companyās 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 $29.75 , $27.92 and $26.60 per share for fiscal years 2016 , 2015 and 2014 , respectively. The following table summarizes outstanding and expected to vest RSUs and other awards as of June 25, 2016 and their activity during fiscal years 2016 , 2015 and 2014 : Number of Shares Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (1) Balance at June 29, 2013 7,965,532 Restricted stock units and other awards granted 3,916,111 Restricted stock units and other awards released (2,904,787 ) Restricted stock units and other awards cancelled (1,095,859 ) Balance at June 28, 2014 7,880,997 Restricted stock units and other awards granted 3,178,117 Restricted stock units and other awards released (2,589,639 ) Restricted stock units and other awards cancelled (1,339,490 ) Balance at June 27, 2015 7,129,985 Restricted stock units and other awards granted 2,905,973 Restricted stock units and other awards released (2,049,430 ) Restricted stock units and other awards cancelled (1,365,715 ) Balance at June 25, 2016 6,620,813 2.6 $ 246,061,953 Expected to vest at June 25, 2016 5,588,721 2.5 $ 207,229,781 (1) Aggregate intrinsic value for RSUs and other awards represents the closing price per share of the Company's common stock on June 24, 2016, the last business day preceding the fiscal year end, multiplied by the number of RSUs and other awards outstanding, or expected to vest as of June 25, 2016 . The Company withheld shares totaling $24.1 million in value as a result of employee withholding taxes based on the value of the RSUs on their vesting date for the fiscal year ended June 25, 2016 . The total payments for the employees' tax obligations to the taxing authorities are reflected as financing activities within the Consolidated Statements of Cash Flows. As of June 25, 2016 , there was $131.3 million of unrecognized compensation cost related to 6.6 million unvested RSUs and other awards, which is expected to be recognized over a weighted average period of approximately 2.6 years. Market Stock Units The Company granted Market Stock Units (āMSUsā) 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 Companyās stock price as compared to the Semiconductor Exchange Traded Fund index XSD, (the āSPDR S&Pā). 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 Companyās 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. The following table summarizes the number of MSUs outstanding and expected to vest as of June 25, 2016 and their activity during fiscal years 2016 , 2015 and 2014 : Number of Shares Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (1) Balance at June 29, 2013 (2) 60,000 Market stock units granted 60,000 Market stock units released ā Market stock units cancelled ā Balance at June 28, 2014 (2) 120,000 Market stock units granted 423,044 Market stock units released (42,476 ) Market stock units cancelled (85,728 ) Balance at June 27, 2015 414,840 Market stock units granted 361,684 Market stock units released ā Market stock units cancelled (102,992 ) Balance at June 25, 2016 673,532 2.9 $ 24,974,567 Expected to vest at June 25, 2016 547,546 2.9 $ 20,303,011 (1) Aggregate intrinsic value for MSUs represents the closing price per share of the Companyās common stock on June 24, 2016, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of June 25, 2016 . (2) Reflects shares previously granted to the Companyās Chief Executive Officer only. As of June 25, 2016 , there was $11.9 million of unrecognized compensation cost related to 0.7 million unvested MSUs, which is expected to be recognized over a weighted average period of approximately 2.9 years. At June 25, 2016 , the Company had 28.0 million shares of its common stock available for issuance to employees and other option recipients under the 1996 Plan. Employee Stock Purchase Plan Employees are granted rights to acquire common stock under the Companyās 2008 Employee Stock Purchase Plan (the āESPPā). The Company issued 1.3 million shares of its common stock for total consideration of $34.0 million related to the ESPP plan during the fiscal year ended June 25, 2016 . As of June 25, 2016 , the Company had 6.1 million shares of its common stock reserved and available for future issuance under the ESPP. The fair value of ESPP granted to employees in fiscal years 2016 , 2015 and 2014 has been estimated at the date of grant using the Black-Scholes option valuation model using the following assumptions for the offering periods outstanding: ESPP For the Year Ended June 25, June 27, June 28, Expected holding period (in years) 0.5 0.5 0.5 Risk-free interest rate 0.1% - 0.5% 0.1 % 0.1% - 0.2% Expected stock price volatility 21.8% - 33.1% 20.7% - 26.4% 20.7% - 25.5% Dividend yield 3.3% - 3.6% 3.3% - 3.7% 3.1% - 3.7% As of June 25, 2016 , there was $5.5 million of unrecognized compensation expense related to the ESPP. Other Modifications In September 2006, the Company suspended the issuance of shares to employees upon exercise of stock options, vesting of restricted stock units or pursuant to planned purchases of stock under the Employee Stock Participation Plan until the Company became current with all required SEC filings and its registration statements on Form S-8 were declared effective (āBlackout Periodā). The Company instituted multiple programs in an attempt to compensate employees during this period. In September 2007, the Company decided to cash-settle all options expiring during the Blackout Period (āgoodwill paymentā) based on the price at which 10% of the daily close prices of the Companyās common stock fall above this price for trading days from August 7, 2006 (the date on which the Company initiated a trading blackout on officers and other individuals) through the expiration date of the option. The cash payment is subject to the option holder executing a release of all claims relating to the option. The supplemental goodwill payment modification changed the classification of the associated awards from equity to liability instruments. The modification resulted in a reclassification from additional paid-in capital to accrued salaries and related expenses. In fiscal year 2015, $7.8 million was reclassified from accrued salaries to additional paid-in capital due to the lapse of the statute of limitations of certain option holders to raise claims relating to the expired options. No reclassification occurred in fiscal years 2016 or 2014. |
Earnings Per Share
Earnings Per Share | 12 Months Ended |
Jun. 25, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS PER SHARE Basic earnings (loss) per share are computed using the weighted average number of shares of common shares 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: For the Year Ended June 25, June 27, June 28, (in thousands, except per share data) Numerator for basic earnings (loss) per share and diluted earnings (loss) per share Net income (loss) $ 227,475 $ 206,038 $ 354,810 Denominator for basic earnings (loss) per share 285,081 283,675 283,344 Effect of dilutive securities: Stock options, ESPP, RSUs and MSUs 4,398 5,274 5,764 Denominator for diluted earnings (loss) per share 289,479 288,949 289,108 Earnings (loss) per share: Basic $ 0.80 $ 0.73 $ 1.25 Diluted $ 0.79 $ 0.71 $ 1.23 Approximately 0.5 million , 3.6 million , and 9.4 million stock options were excluded from the calculation of diluted earnings per share for the fiscal years ended 2016 , 2015 and 2014 , respectively. These options were excluded because they were determined to be antidilutive. However, such options could be dilutive in the future and, under those circumstances, would be included in the calculation of diluted earnings per share. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 25, 2016 | |
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. Fiscal Year 2016 The Company performed the annual goodwill impairment analysis during the fourth quarter of fiscal year 2016 and concluded that goodwill was not impaired, as the fair value of each reporting unit exceeded its carrying value. No indicators or instances of impairment were identified during fiscal year 2016 . During the fiscal year ended June 25, 2016 , $20.4 million of goodwill from the Micros and Security reporting unit was included in the sale of the energy metering business to Silergy Corp. Fiscal Year 2015 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 Companyās decision within the quarter ended December 27, 2014 to exit certain consumer market offerings that have competitive dynamics which are no longer consistent with the Companyās 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 unitās carrying value exceeded its estimated fair value and, accordingly, a second phase of the goodwill impairment test (āStep 2ā) was performed. Under Step 2, the fair value of all Sensing Solutionās 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 managementās 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 businessās 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 other indicators or instances of impairment were identified during the fiscal year ended June 27, 2015 . Activity and goodwill balances for the fiscal years ended June 25, 2016 and June 27, 2015 were as follows: Goodwill (in thousands) Balance at June 28, 2014 $ 596,637 Adjustments (866 ) Impairments (84,124 ) Balance at June 27, 2015 511,647 Divestitures (20,999 ) Balance at June 25, 2016 $ 490,648 Intangible Assets The useful lives of amortizing intangible assets are as follows: Asset Life Intellectual property 1-10 years Customer relationships 3-10 years Trade name 1-4 years Patents 5 years Intangible assets consisted of the following: June 25, 2016 June 27, 2015 Original Cost Accumulated Amortization Net Original Cost Accumulated Amortization Net (in thousands) Intellectual property $ 420,285 $ 331,321 $ 88,964 $ 435,962 $ 276,175 $ 159,787 Customer relationships 115,634 92,744 22,890 120,230 82,774 37,456 Trade name 8,500 6,486 2,014 8,500 4,886 3,614 Patent 2,500 1,428 1,072 2,500 907 1,593 Total amortizable purchased intangible assets 546,919 431,979 114,940 567,192 364,742 202,450 IPR&D 31,600 ā 31,600 59,202 ā 59,202 Total purchased intangible assets $ 578,519 $ 431,979 $ 146,540 $ 626,394 $ 364,742 $ 261,652 During the fiscal year ended June 25, 2016 , $20.3 million of purchased intangible assets, net, was included in the sale of the energy metering business line. For details, please refer Note 10: āImpairment of long-lived assetsā. During fiscal years 2016 , 2015 and 2014 , the Company recorded impairment of intangible assets of $27.6 million , $8.9 million and $2.6 million , respectively, related to write-offs of acquired IPR&D resulting from the Companyās decision to abandon previously acquired technologies. Intangible asset reviews are performed when indicators exist that could indicate the carrying value may not be recoverable based on comparisons to undiscounted expected future cash flows. If this comparison indicates that there is impairment, the impaired asset is written down to fair value, which is typically calculated using: (i) quoted market prices or (ii) discounted expected future cash flows utilizing a discount rate. The following table presents the amortization expense of intangible assets and its presentation in the Consolidated Statements of Income: For the Year Ended June 25, June 27, June 28, (in thousands) Cost of goods sold $ 55,031 $ 74,366 $ 64,483 Intangible asset amortization 12,205 16,077 17,690 Total intangible asset amortization expenses $ 67,236 $ 90,443 $ 82,173 The following table represents the estimated future amortization expense of intangible assets as of June 25, 2016 : Fiscal Year Amount (in thousands) 2017 $ 49,090 2018 41,564 2019 13,278 2020 3,358 2021 2,888 Thereafter 4,762 Total intangible assets $ 114,940 |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 25, 2016 | |
Acquisition [Abstract] | |
Acquisitions [Text Block] | ACQUISITIONS Acquisitions completed in fiscal year 2016 None . Acquisitions completed in fiscal year 2015 None . Acquisitions completed in fiscal year 2014 The Company completed two acquisitions during fiscal year 2014. VOLTERRA On October 1, 2013 , the Company completed its acquisition of Volterra, formerly a publicly traded company that develops power management solutions. The primary reason for this acquisition was to expand the Company's available market across a wide range of end markets, including enterprise server, cloud computing, communications and energy. The results of operations of Volterra are included in the Companyās Consolidated Statements of Income, beginning in the second quarter of fiscal year 2014. Acquisition-related costs for the twelve months ended June 28, 2014 were $7.0 million . The total purchase price for Volterra was approximately $615 million and was comprised of: (in thousands) Cash consideration for 100% of outstanding common stock of Volterra at $23 per share $ 593,250 Cash consideration for vested options settlement 21,756 Total preliminary purchase price $ 615,006 The purchase price allocation as of the date of the acquisition is set forth in the table below and reflects various fair value estimates and analysis. These estimates were determined through established and generally accepted valuation techniques, including work performed by third-party valuation specialists. Volterra (in thousands) Net tangible assets 158,710 Amortizable intangible assets 226,900 IPR&D 56,200 Goodwill 174,894 Substitution of stock-based compensation awards (1,698 ) Total purchase price $ 615,006 IPR&D assets relate to future technology, is capitalized until the technology is ready for its intended use and then amortized over the technology useful life. IPR&D costs incurred by the Company subsequent to the acquisition are expensed. Goodwill was primarily attributable to the opportunities from the addition of Volterra's product portfolio which complements the Companyās suite of products, including providing integrated process solutions to customers. The goodwill is not deductible for tax purposes. The amortizable intangible assets are being amortized on a straight-line basis over their estimated useful lives as follows: Volterra acquisition Fair value (in thousands) Weighted average useful life (in years) Intellectual property $ 192,500 4.9 Customer relationships 24,600 9.6 Trade name 6,400 4.0 Backlog 900 0.4 Patents 2,500 4.8 Total amortizable intangible assets $ 226,900 Pro forma results of operations for this acquisition have not been presented because it is not material to the Company's Consolidated Statements of Income. Refer to Note 17: āRestructuring Activitiesā of these Notes to Consolidated Financial Statements for a discussion on Volterra Restructuring Plan. OTHER ACQUISITION The Company acquired another company during the fiscal year ended June 28, 2014, which develops low power high performance analog circuits. The total cash consideration in exchange for 100% of the outstanding shares, for this acquisition was approximately $6.1 million for which the purchase price was largely attributable to the acquired developed intellectual property. Goodwill associated with this acquisition was $0.5 million . Acquisition related costs were not material for this transaction. |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets | 12 Months Ended |
Jun. 25, 2016 | |
Impairment of Long Lived Assets Disclosure [Abstract] | |
Impairment of Long-Lived Assets [Text Block] | IMPAIRMENT OF LONG-LIVED ASSETS Fiscal year 2016: During the fiscal year ended June 25, 2016 , the Company recorded $160.6 million in impairment of long-lived assets in the Company's Consolidated Statements of Income. 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 TowerJazz Texas, Inc. (formerly known as TJ Texas, Inc.), an indirect wholly-owned subsidiary of Tower Semiconductor Ltd. ("TowerJazz"), for the sale of the semiconductor wafer fabrication facility in San Antonio, Texas on November 18, 2015. During the third quarter of fiscal year 2016, the Company completed the sale of this facility for approximately $30.0 million in common shares of TowerJazz, resulting in a loss of $1.6 million included in Other operating income (expenses), net in the Consolidated Statements of Income. In addition, approximately $10.0 million in common shares of TowerJazz was received for the sale of the inventory on hand associated with this facility. 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 included in Other operating income (expenses), net in the Consolidated Statements of Income. During the second quarter of fiscal year 2016, the Company classified the energy metering business, including associated tangible, intangible assets and goodwill, as held for sale but no impairment charge was recorded as the carrying value of the product lines' associated assets approximated or was less than the fair value, less cost to sell. The fair values of the assets were determined after consideration of offers received. During the third quarter of fiscal year 2016, the Company completed the sale of this product line for approximately $105.0 million , resulting in a gain of $58.9 million included in Other operating income (expenses), net in the Consolidated Statements of Income. Fiscal year 2015 impairments: June 27, 2015 , the Company recorded $67.0 million in impairment of long-lived assets in the Company's 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 . For background, please refer to Note 8: āGoodwill & intangible assetsā. The Company reached its conclusion regarding the asset impairment after determining 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 assetās alternative use, the condition of the asset and the current market pricing and demand. The impairment was also related to the write down of used fabrication tools and software of $21.8 million identified by the Company as obsolete. The Company reduced the fabrication tools to their fair value after conducting an evaluation of each assetās alternative use, the condition of the asset and the current market pricing and demand. Fiscal year 2014 impairments: During the fiscal year ended June 28, 2014 , the Company recorded $11.6 million in impairment of long-lived assets in the Company's Consolidated Statements of Income. The impairment includes electronic design automation (āEDAā) software identified as excess primarily due to EDA assets replaced with assets that are more cost efficient. It also includes certain U.S. test operation assets identified as excess and no longer needed. These assets included primarily test manufacturing equipment which was recorded in Property, plant, and equipment, net in the Consolidated Balance Sheet. The Company also impaired fabrication tools and a building classified as held for sale. The fabrication tools were fully impaired while the building was impaired down to fair value less cost to sell. The fair value of the building was determined mainly after consideration of evidence such as broker estimates, building condition, and offers received. |
Segment Information
Segment Information | 12 Months Ended |
Jun. 25, 2016 | |
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. All of the Company's products are designed through a centralized R&D function, are manufactured using centralized manufacturing (internal and external), and sold through a centralized sales force and shared wholesale distributors. The Company currently has one operating segment. In accordance with ASC No. 280, Segment Reporting (āASC 280ā), the Company considers operating segments to be components of the Companyās business for which separate financial information is available that is evaluated regularly by the Companyās 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 customersā 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 from unaffiliated customers by geographic region were as follows: For the Year Ended June 25, June 27, June 28, (in thousands) United States $ 246,969 $ 281,374 $ 320,282 China 837,345 947,231 997,706 Rest of Asia 676,116 665,388 748,320 Europe 377,938 347,275 324,867 Rest of World 56,351 65,596 62,488 $ 2,194,719 $ 2,306,864 $ 2,453,663 Net long-lived assets by geographic region were as follows: Fiscal Year Ended June 25, June 27, (in thousands) United States $ 423,653 $ 783,148 Philippines 141,569 166,405 Rest of World 127,329 141,186 $ 692,551 $ 1,090,739 |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 25, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies [Text Block] | COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is party or subject to various other 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, the Company does 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. Commitments The Company leases certain of its facilities under various operating leases that expire at various dates through June 2036. The lease agreements generally include renewal provisions and require the Company to pay property taxes, insurance, and maintenance costs. Future annual minimum payments for all commitments are as follows: Payment due by period Total Fiscal year 2017 Fiscal year 2018 Fiscal year 2019 Fiscal year 2020 Fiscal year 2021 Thereafter Contractual Obligations (in thousands) Operating lease obligations (1) $ 53,568 $ 8,778 $ 6,827 $ 5,106 $ 4,907 $ 4,409 $ 23,541 Short-term debt obligations (2) 250,000 250,000 ā ā ā ā ā Long-term debt obligations (3) 1,000,000 ā ā 500,000 ā ā 500,000 Interest payments associated with debt obligations (4) 147,388 33,699 29,375 21,736 16,875 16,875 28,828 Capital equipment and inventory related purchase obligations (5) 725,987 100,875 87,760 75,285 74,467 62,958 324,642 Total $ 2,176,943 $ 393,352 $ 123,962 $ 602,127 $ 96,249 $ 84,242 $ 877,011 (1) The Company leases some facilities under non-cancelable operating lease agreements that expire at various dates through 2030 . (2) Short-term debt represents amounts primarily due for the Company's short-term credit agreement. (3) Long-term debt represents amounts primarily due for the Company's long-term notes. (4) Interest payments calculated based on contractual payment requirements under the debt agreements. (5) The Company orders some materials and supplies in advance or with minimum purchase quantities. The Company is obligated to pay for the materials and supplies when received. Additionally, in 2016 the Company entered into a long term supply agreement with the semiconductor foundry TowerJazz to supply finished wafers on existing Maxim processes and products which contains minimum purchase requirements. Purchase orders for the purchase of the majority of the Company's raw materials and other goods and services are not included in the table. The Company's purchase orders generally allow for cancellation without significant penalties. The Company does not have significant agreements for the purchase of raw materials or other goods specifying minimum quantities or set prices that exceed its expected short-term requirements. Rental expense amounted to approximately $10.0 million , $9.0 million , and $10.8 million in fiscal years 2016 , 2015 and 2014 , respectively. 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 changes in the Company's aggregate product warranty liabilities for the fiscal years ended June 25, 2016 and June 27, 2015 were as follows: June 25, June 27, (in thousands) Product warranty liability at beginning of the year $ 13,436 $ 21,296 Accruals 3,518 1,665 Payments (9,300 ) (8,686 ) Changes in estimate 952 (839 ) Product warranty liability at ending of the year $ 8,606 $ 13,436 Current portion 8,606 9,136 Non-current portion $ ā 4,300 |
Comprehensive Income
Comprehensive Income | 12 Months Ended |
Jun. 25, 2016 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income [Text Block] | COMPREHENSIVE INCOME The changes in accumulated other comprehensive loss by component and related tax effects in the fiscal years ended June 25, 2016 and June 27, 2015 were as follows: Unrealized gain (loss) on intercompany receivables Unrealized gain (loss) on post-retirement benefits Cumulative translation adjustment Unrealized gain (loss) on cash flow hedges Unrealized gain (loss) on available-for-sale securities Total (in thousands) June 28, 2014 $ (5,753 ) $ (10,373 ) $ (1,136 ) $ (11 ) $ 100 $ (17,173 ) Other comprehensive income (loss) before reclassifications ā ā ā (6,272 ) 33 (6,239 ) Amounts reclassified out of accumulated other comprehensive income (loss) ā 827 ā 6,428 ā 7,255 Tax effects (527 ) (458 ) ā (92 ) ā (1,077 ) Other comprehensive income (loss) (527 ) 369 ā 64 33 (61 ) June 27, 2015 $ (6,280 ) $ (10,004 ) $ (1,136 ) $ 53 $ 133 $ (17,234 ) Other comprehensive income (loss) before reclassifications ā ā ā (1,197 ) 356 (841 ) Amounts reclassified out of accumulated other comprehensive income (loss) ā 3,659 ā 450 ā 4,109 Tax effects ā (455 ) ā 202 ā (253 ) Other comprehensive income (loss) ā 3,204 ā (545 ) 356 3,015 June 25, 2016 $ (6,280 ) $ (6,800 ) $ (1,136 ) $ (492 ) $ 489 $ (14,219 ) Amounts reclassified out of Unrealized loss on post-retirement benefits were included in Selling, general and administrative in the Consolidated Statements of Income. Amounts reclassified out of Unrealized loss on cash flow hedges were included in Net revenues, Cost of goods sold and Other operating expenses (income), net in the Consolidated Statements of Income. |
Common Stock Repurchases
Common Stock Repurchases | 12 Months Ended |
Jun. 25, 2016 | |
Common Stock Repurchases [Abstract] | |
Treasury Stock [Text Block] | COMMON STOCK REPURCHASES In July 2013, the Board of Directors authorized the Company to repurchase up to $1.0 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 fiscal years 2016 , 2015 and 2014 , the Company repurchased approximately 6.8 million , 6.2 million and 10.4 million shares of its common stock for $237.1 million , $195.1 million and $305.3 million , respectively. As of June 25, 2016 , the Company had a remaining authorization of $329.7 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. |
Interest and Other Income (Expe
Interest and Other Income (Expense) (Notes) | 12 Months Ended |
Jun. 25, 2016 | |
Other Income and Expenses [Abstract] | |
Other Income and Other Expense Disclosure [Text Block] | INTEREST AND OTHER INCOME (EXPENSE) Interest and other income (expense) was as follows: For the Year Ended June 25, June 27, June 28, (in thousands) Interest and other income (expense): Interest income (expense), net $ (29,757 ) $ (31,545 ) $ (26,428 ) Other income (expense), net 962 40,435 13,363 Total $ (28,795 ) $ 8,890 $ (13,065 ) As discussed in Note 5, Interest income (expense), net consists primarily of interest expense associated with long term notes. Interest expense associated with the notes was $29.4 million , $29.4 million and $24.7 million during the years ended June 25, 2016 , June 27, 2015 and June 28, 2014 , respectively. Interest expense associated with debt discounts and issuance fees was $1.9 million , $2.0 million and $1.1 million during the fiscal years ended June 25, 2016 , June 27, 2015 and June 28, 2014 , respectively. During the fiscal year ended June 27, 2015 , Interest income (expense), net included the $35.8 million gain on the sale of the Capacitive Touch Business. The Company completed a sale of its Capacitive Touch business for approximately $39.5 million resulting in a gain of $35.8 million . As a result of the nature of the operations, the Company concluded that the sale would not qualify as a discontinued operation and has recorded the impact of the sale (gain) in Interest and other income (expense), net. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 25, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | INCOME TAXES Pretax income (loss) is as follows: For the Year Ended June 25, June 27, June 28, (in thousands) Domestic pre-tax income (loss) $ (48,985 ) $ 68,289 $ 87,630 Foreign pre-tax income (loss) 334,039 177,881 321,596 Total $ 285,054 $ 246,170 $ 409,226 The provision for income taxes consisted of the following: For the Year Ended June 25, June 27, June 28, (in thousands) Federal Current $ 98,810 $ 108,736 $ 93,012 Deferred (52,240 ) (74,190 ) (42,875 ) State Current 1,808 3,791 2,676 Deferred (2,406 ) (3,269 ) (1,465 ) Foreign Current 10,278 8,294 6,692 Deferred 1,329 (3,230 ) (3,624 ) Total provision for income taxes $ 57,579 $ 40,132 $ 54,416 As of June 25, 2016 , the Company's foreign subsidiaries have accumulated undistributed earnings of approximately $907.5 million that are intended to be indefinitely reinvested outside the U.S. and, accordingly, no provision for U.S. federal and state tax has been made for the distribution of these earnings. At June 25, 2016 the amount of the unrecognized deferred tax liability on the indefinitely reinvested earnings was $290.0 million . A reconciliation of the Company's Federal statutory tax rate to the Company's effective tax rate is as follows: For the Year Ended June 25, June 27, June 28, Federal statutory rate 35.0 % 35.0 % 35.0 % State tax, net of federal benefit (0.6 ) (0.4 ) 0.1 General business credits (2.8 ) (2.8 ) (0.9 ) Effect of foreign operations (21.7 ) (24.6 ) (19.1 ) Stock-based compensation 4.7 5.9 3.9 Fixed assets federal tax basis adjustments ā ā (8.4 ) Interest accrual for unrecognized tax benefits 3.2 2.6 1.1 Non-deductible goodwill 2.5 ā ā Other (0.1 ) 0.6 1.6 Effective tax rate 20.2 % 16.3 % 13.3 % The income tax rate benefit of 8.4% in the fiscal year ended June 28, 2014 for fixed assets federal tax basis adjustments is a one-time benefit for fixed assets tax basis adjustments generated by prior year depreciation expense that did not provide a tax benefit in prior years. Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the Company's deferred tax assets and liabilities are as follows: For the Year Ended June 25, June 27, (in thousands) Deferred tax assets: Distributor related accruals and sales return and allowance accruals $ 23,482 $ 15,966 Accrued compensation 39,979 44,961 Stock-based compensation 15,562 22,639 Net operating loss carryovers 44,962 47,305 Tax credit carryovers 57,101 54,501 Other reserves and accruals not currently deductible for tax purposes 36,516 29,420 Other 11,552 10,968 Total deferred tax assets 229,154 225,760 Deferred tax liabilities: Fixed assets and intangible assets cost recovery, net (82,504 ) (141,070 ) Unremitted earnings of foreign subsidiaries (11,842 ) ā Other (3,695 ) (5,349 ) Total deferred tax liabilities (98,041 ) (146,419 ) Net deferred tax assets /(liabilities) before valuation allowance 131,113 79,341 Valuation allowance (95,060 ) (91,175 ) Net deferred tax assets/(liabilities) $ 36,053 $ (11,834 ) The valuation allowance as of June 25, 2016 and June 27, 2015 primarily relates to certain state and foreign net operating loss carryforwards and certain state tax credit carryforwards. The valuation allowance increased by $3.9 million in fiscal year 2016 . The increase was primarily due to valuation allowances that were established for net operating loss and credit carryforwards generated during the fiscal year 2016 . Approximately $37.3 million of the valuation allowance, as of June 25, 2016 , is attributable to the tax benefits of income tax deductions generated by the exercise of stock options that, when realized, will be recorded as a credit to additional paid-in-capital. As of June 25, 2016 , the Company has $24.2 million of federal net operating loss carryforwards expiring at various dates between fiscal years 2021 and 2033, $81.0 million of state net operating loss carryforwards expiring at various dates through the fiscal year 2033, $126.2 million of foreign net operating losses with no expiration date, $7.0 million of state tax credit carryforwards expiring at various dates between fiscal years 2017 and 2031, and $95.2 million of state tax credit carryforwards with no expiration date. The Company classifies unrecognized tax benefits as (i) a current liability to the extent that payment is anticipated within one year; (ii) a non-current liability to the extent that payment is not anticipated within one year; or (iii) as a reduction to deferred tax assets to the extent that the unrecognized tax benefit relates to deferred tax assets such as operating loss or tax credit carryforwards or to the extent that operating loss or tax credit carryforwards would be able to offset the additional tax liability generated by unrecognized tax benefits. A reconciliation of the change in gross unrecognized tax benefits, excluding interest, penalties and the federal benefit for state unrecognized tax benefits, is as follows: For the Year Ended June 25, June 27, June 28, (in thousands) Balance as of beginning of year $ 427,629 $ 396,765 $ 302,904 Tax positions related to current year: Addition 53,899 55,343 58,035 Tax positions related to prior year: Addition 3,035 214 300 Current year acquisitions ā ā 39,566 Reduction (205 ) (2,433 ) (586 ) Settlements (943 ) (21,458 ) (496 ) Lapses in statutes of limitations (670 ) (802 ) (2,958 ) Balance as of end of year $ 482,745 $ 427,629 $ 396,765 The total amount of gross unrecognized tax benefits as of June 25, 2016 that, if recognized, would affect the effective tax rate and additional paid in capital is $469.5 million and $13.2 million , respectively. Consistent with prior years, the Company reports interest and penalties related to unrecognized tax benefits as a component of income tax expense. The gross amount of interest and penalties recognized in income tax expense during the fiscal years ended June 25, 2016 , June 27, 2015 , and June 28, 2014 was $14.7 million , $6.5 million and $6.6 million , respectively, and the total amount of interest and penalties accrued as of June 25, 2016 , June 27, 2015 , and June 28, 2014 was $49.0 million , $34.4 million , and $27.9 million , respectively. The Company does not expect its unrecognized tax benefits to change significantly within the next 12 months. During the fiscal year ended June 27, 2015 , $21.2 million of unrecognized tax benefits were recognized due the favorable settlement of a Singapore tax issue and $3.6 million of related interest and penalty accruals were reversed. The Companyās federal corporate income tax returns are audited on a recurring basis by the Internal Revenue Service (āIRSā). The IRS has concluded its field examination of the Companyās federal corporate income tax returns for fiscal years 2009 through 2011(āAudit Yearsā) and issued a Notice of Proposed Adjustment (āNOPAā) for transfer pricing issues related to cost sharing and buy-in license payments for the use of intangible property by one of the Companyās international subsidiaries. After the end of the fiscal year 2016 the Company received an IRS Revenue Agentās Report (āRARā) for the Audit Years that includes these proposed transfer pricing adjustments and penalties. The Company disagrees with these adjustments and will file a protest with the Appeals Office of the IRS in fiscal year 2017 to challenge the proposed transfer pricing adjustments and penalties. The Company believes that its reserves for unrecognized tax benefits are sufficient to cover any potential assessments that may result from the final resolution of these transfer pricing issues. A summary of the fiscal tax years that remain subject to examination, as of June 25, 2016 , for the Company's major tax jurisdictions are as follows: United States - Federal 2009 - Forward United States - Various States 2009 - Forward Ireland 2011 - Forward Japan 2010 - Forward Philippines 2013 - Forward Singapore 2012 - Forward United Kingdom 2013 - Forward |
Restructuring Activities (Notes
Restructuring Activities (Notes) | 12 Months Ended |
Jun. 25, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING ACTIVITIES Fiscal year 2016 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 fiscal year ending June 25, 2016 , the Company recorded accelerated depreciation charges of $41.6 million in āCost of goods soldā and $0.4 million in āSeverance and restructuring expensesā in the Consolidated Statements of Income. The sale of the San Jose wafer fabrication facility took place during the second quarter of fiscal year 2016. The cumulative costs recorded in fiscal year 2015 and 2016 to complete this restructuring plan were $100.3 million and no future restructuring costs associated with this plan is expected. Other Plans During the fiscal year ending June 25, 2016 , the Company recorded $24.0 million in āSeverance and restructuring expenses" in the 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 of the Dallas wafer level packaging (āWLPā) manufacturing facilities. Multiple job classifications and locations were impacted by these activities. As the Company plans to close its Dallas, Texas campus, including its WLP manufacturing facility in fiscal year 2017, the Company recorded accelerated depreciation charges of $13.0 million in āCost of goods soldā in the Consolidated Statements of Income during the fiscal year ended June 25, 2016 . Future expected restructuring costs to be incurred with other plans is $4.7 million as of June 25, 2016 . Fiscal year 2015 San Jose Fab Shutdown As part of the San Jose wafer fabrication facility shut down noted above, the Company recorded accelerated depreciation charges of $51.5 million in āCost of goods soldā and $6.7 million in āSeverance and restructuring expensesā in the Consolidated Statements of Income during the fiscal year ending June 27, 2015 . Other Plans During the fiscal year ending June 27, 2015 , the Company recorded $24.5 million in āSeverance and restructuring expenses" included in the Consolidated Statements of Income, primarily related to employee severance costs, associated with a major reorganization of the Company's business units. Multiple job classifications and locations were impacted by this activity. This reorganization was intended to consolidate the Company's R&D and Sales functions to allow for faster investment decisions, improved R&D efficiency, and facilitate stronger collaborations between internal organizations to increase productivity, improve customer satisfaction, and fuel revenue growth. The Company also accrued 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 2014 The Company's management approved and initiated plans to restructure the operations of Volterra. The total cost of the plan was $11.0 million which was recorded in Severance and restructuring expenses in the Company's Consolidated Statements of Income. Also during the fiscal year ended June 28, 2014, the Company recorded $10.8 million in Severance and restructuring expenses in the Company's Consolidated Statements of Income, primarily related to employee severance costs, associated with the reorganization of certain business units. Restructuring Accruals The Company has accruals for severance and restructuring payments within Accrued salary and related expenses in the accompanying Condensed Consolidated Balance Sheets. The following table summarizes changes in the accruals associated with these restructuring activities during the fiscal year ending June 25, 2016 : Balance, June 27, 2015 Fiscal 2016 Balance, June 25, 2016 Charges Cash Payments Change in Estimates (in thousands) Severance - San Jose Fab Shutdown (1) $ 6,725 $ 973 $ (7,166 ) $ (532 ) $ ā Severance - Other plans (1) 11,496 $ 27,478 $ (27,934 ) $ (3,462 ) 7,578 Total $ 18,221 $ 28,451 $ (35,100 ) $ (3,994 ) $ 7,578 (1) Charges and change in estimates are included in Severance and restructuring expenses in the accompanying Condensed Consolidated Statements of Income. 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. For the Years Ended June 25, June 27, June 28, (in thousands, except per share data) Operating income (loss), as reported $ 313,849 $ 237,280 $ 422,291 Operating income (loss), excluding accelerated depreciation expense 368,475 288,774 422,291 Effect of change in estimate $ (54,626 ) $ (51,494 ) $ ā Net income (loss), as reported $ 227,475 $ 206,038 $ 354,810 Net income (loss), excluding accelerated depreciation expense 283,129 259,182 ā Effect of change in estimate $ (55,654 ) $ (53,144 ) $ 354,810 Basic earnings (loss) per share, as reported $ 0.80 $ 0.73 $ 1.25 Diluted earnings (loss) per share, as reported $ 0.79 $ 0.71 $ 1.23 Basic earnings (loss) per share, excluding accelerated depreciation expense $ 0.99 $ 0.91 $ 1.25 Diluted earnings (loss) per share, excluding accelerated depreciation expense $ 0.98 $ 0.90 $ 1.23 Effect of change in estimate - basic earnings (loss) per share $ (0.19 ) $ (0.18 ) $ ā Effect of change in estimate - diluted earnings (loss) per share $ (0.19 ) $ (0.19 ) $ ā |
Benefits
Benefits | 12 Months Ended |
Jun. 25, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Pension and Other Postretirement Benefits Disclosure [Text Block] | BENEFITS Defined contribution plan: U.S. employees are automatically enrolled in the Maxim Integrated 401(k) plan when they meet eligibility requirements, unless they decline participation. Under the terms of the plan Maxim Integrated matches 100% of the employee contributions for the first 3% of employee eligible compensation and an additional 50% match for the next 2% of employee eligible compensation, up to the IRS Annual Compensation Limits. Total defined contribution expense was $13.0 million , $14.7 million and $15.4 million in fiscal years 2016 , 2015 and 2014 , respectively. Non-U.S. Pension Benefits The Company provides defined-benefit pension plans in certain countries. Consistent with the requirements of local law, the Company deposits funds for certain plans with insurance companies, with third-party trustees, or into government-managed accounts, and/or accrues for the unfunded portion of the obligation. Maxim Integrated is enrolled in a retirement plan for employees in the Philippines. This plan is a non-contributory and defined benefit type that provides retirement to employees equal to one month salary for every year of credited service. The benefits are paid in a lump sum amount upon retirement or separation from the Company. Total defined benefit liability was $9.7 million and $11.8 million in fiscal years 2016 and 2015 , respectively. Total accumulated other comprehensive income benefit related to this retirement plan was $1.1 million , $3.7 million and $3.3 million for the fiscal years 2016 , 2015 , and 2014 , respectively. U.S. Employees Medical Expense & Funded Status Reconciliation June 25, Estimated Fiscal Year 2017 Expense June 27, Fiscal Year 2016 Expense (in thousands, except percentages) Accumulated Postretirement Benefit Obligation [APBO]: Retirees and beneficiaries $ (22,641 ) $ (22,414 ) Active participants (3,162 ) (2,850 ) Funded status $ (25,803 ) $ (25,264 ) Actuarial gain (loss) $ ā $ 524 Prior service cost ā ā Amounts Recognized in Accumulated Other Comprehensive Income: Net actuarial loss $ 7,390 $ 8,425 Prior service cost 1,675 2,031 Total $ 9,065 $ 10,456 Net Periodic Postretirement Benefit Cost/(Income): Interest cost 663 994 Amortization: Prior service cost 356 356 Net actuarial loss (1) ā 1,035 Total net periodic postretirement benefit cost $ 1,019 $ 2,385 Employer contributions $ 666 $ 809 Economic Assumptions: Discount rate 3.7% 4.0% Medical trend 7.0%-5.0% 7.5%-5.0% (1) Unrecognized losses are amortized over average remaining service period of active participants of 4.7 years at June 25, 2016 . The following benefit payments are expected to be paid: Non-Pension Benefits (in thousands) 2017 $ 666 2018 685 2019 721 2020 724 2021 781 Thereafter 22,226 $ 25,803 Dallas Semiconductor Split-Dollar Life Insurance As a result of the Company's acquisition of Dallas Semiconductor in 2001, the Company assumed responsibility associated with a split-dollar life insurance policy held by a former Dallas Semiconductor director. The policy is owned by the individual with the Company retaining a limited collateral assignment. The Company had $5.3 million and $5.1 million included in Other Assets as of June 25, 2016 and June 27, 2015 , respectively, associated with the limited collateral assignment to the policy. The Company had a $6.7 million and $6.5 million obligation included in Other Liabilities as of June 25, 2016 and June 27, 2015 , respectively, related to the anticipated continued funding associated with the policy. |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Jun. 25, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) [Text Block] | QUARTERLY FINANCIAL DATA (UNAUDITED) Quarter Ended Fiscal Year 2016 6/25/2016 3/26/2016 12/26/2015 9/26/2015 (in thousands, except percentages and per share data) Net revenues $ 566,126 $ 555,252 $ 510,831 $ 562,510 Cost of goods sold 219,099 236,411 218,662 276,159 Gross margin $ 347,027 $ 318,841 $ 292,169 $ 286,351 Gross margin % 61.3 % 57.4 % 57.2 % 50.9 % Operating income (loss) $ 122,373 $ 177,708 $ 89,533 $ (75,765 ) % of net revenues 21.6 % 32.0 % 17.5 % (13.5 )% Net income (loss) (1) $ 92,339 $ 139,810 $ 67,469 $ (72,143 ) Earnings (loss) per share: Basic $ 0.32 $ 0.49 $ 0.24 $ (0.25 ) Diluted $ 0.32 $ 0.48 $ 0.23 $ (0.25 ) Shares used in the calculation of earnings (loss) per share: Basic 285,354 285,854 285,526 284,588 Diluted 288,544 289,783 290,521 284,588 Dividends declared and paid per share $ 0.30 $ 0.30 $ 0.30 $ 0.30 (1) The fiscal quarter ended September 26, 2015, includes 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 fiscal quarter ended March 26, 2016, includes a gain of $58.9 million associated to the sale of the Company's energy metering business. Quarter Ended Fiscal Year 2015 6/27/2015 3/28/2015 12/27/2014 9/27/2014 (in thousands, except percentages and per share data) Net revenues $ 582,517 $ 577,263 $ 566,809 $ 580,275 Cost of goods sold 278,816 261,995 252,732 241,454 Gross margin $ 303,701 $ 315,268 $ 314,077 $ 338,821 Gross margin % 52.1 % 54.6 % 55.4 % 58.4 % Operating income (loss) $ 94,948 $ 105,450 $ (64,076 ) $ 100,958 % of net revenues 16.3 % 18.3 % (11.3 )% 17.4 % Net income (loss) (1) $ 98,659 $ 79,433 $ (72,034 ) $ 99,980 Earnings (loss) per share: Basic $ 0.35 $ 0.28 $ (0.25 ) $ 0.35 Diluted $ 0.34 $ 0.28 $ (0.25 ) $ 0.35 Shares used in the calculation of earnings (loss) per share: Basic 284,202 283,418 282,992 284,086 Diluted 289,346 288,840 282,992 289,430 Dividends declared and paid per share $ 0.28 $ 0.28 $ 0.28 $ 0.28 (1) The fiscal quarter ended December 27, 2014, includes a goodwill impairment charge of $84.1 million , a Property, plant and equipment, impairment of $45.2 million and an IPR&D impairment of $8.9 million associated with the Sensing Solutions reporting unit. |
Subsequent Event (Notes)
Subsequent Event (Notes) | 12 Months Ended |
Jun. 25, 2016 | |
Subsequent Events [Abstract] | |
Subsequent Events [Text Block] | SUBSEQUENT EVENT During the fourth quarter of fiscal year 2016, the Company entered into agreements for the sale of its micro-electromechanical systems (MEMS) business line. Subsequent to the end of fiscal year 2016, the Company received payments from the buyer totaling approximately $33 million related to this sale. The Company expects to receive the remaining proceeds, close the transaction and record the resulting gain on sale during the first quarter of fiscal year 2017. |
Schedule II - Valuation and All
Schedule II - Valuation and Allowance | 12 Months Ended |
Jun. 25, 2016 | |
Valuation and Qualifying Accounts [Abstract] | |
Schedule of Valuation and Qualifying Accounts Disclosure [Text Block] | VALUATION AND QUALIFYING ACCOUNTS Balance at Beginning of Period Additions (Reductions) Charged (Credited) to Costs and Expenses Deductions (1) Balance at End of Period (in thousands) Allowance for doubtful accounts Year ended June 25, 2016 $ 874 $ (113 ) $ (114 ) $ 647 Year ended June 27, 2015 $ 1,581 $ (283 ) $ (424 ) $ 874 Year ended June 28, 2014 $ 1,227 $ 693 $ (339 ) $ 1,581 Balance at Beginning of Period Additions (Reductions) Charged (Credited) to Costs and Expenses Deductions Balance at End of Period (in thousands) Returns and Allowances Year ended June 25, 2016 $ 17,412 $ 79,956 $ (65,907 ) $ 31,461 Year ended June 27, 2015 $ 16,169 $ 81,476 $ (80,233 ) $ 17,412 Year ended June 28, 2014 $ 12,418 $ 75,346 $ (71,595 ) $ 16,169 (1) Uncollectible accounts written off. |
Summary of Significant Accoun29
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 25, 2016 | |
Accounting Policies [Abstract] | |
Use of Estimates [Policy Text Block] | The preparation of financial statements in conformity with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the reporting period. Such estimates relate to the useful lives and fair value of fixed assets, valuation allowance for deferred tax assets, reserves relating to uncertain tax positions, allowances for doubtful accounts, customer returns and allowances, inventory valuation, reserves relating to litigation matters, assumptions about the fair value of reporting units, accrued liabilities and reserves, assumptions related to the calculation of stock-based compensation and the value of intangibles acquired and goodwill associated with business combinations. The Company bases its estimates and judgments on its historical experience, knowledge of current conditions and its beliefs of what could occur in the future, given available information. Actual results may differ from those estimates, and such differences may be material to the financial statements. |
Basis of Presentation [Policy Text Block] | The consolidated financial statements include the accounts of the Company and all of its majority-owned subsidiaries. Intercompany balances and transactions have been eliminated in consolidation. |
Cash, Cash Equivalents, and Short-term Investments [Text Block] | The Company considers all highly liquid financial instruments purchased with an original maturity of three months or less at the date of purchase to be cash equivalents. Cash and cash equivalents consist of demand accounts and money market funds. Short-term investments consist primarily of U.S. treasury debt securities with original maturities beyond three months at the date of purchase. The Company's short-term investments are considered available-for-sale. Such securities are carried at fair market value based on market quotes and other observable inputs. Unrealized gains and losses, net of tax, on securities in this category are reported as equity in the Consolidated Statement of Comprehensive Income. Realized gains and losses on sales of investment securities are determined based on the specific identification method and are included in Interest and other income (expense), net in the Consolidated Statements of Income. |
Derivative Instruments [Policy Text Block] | 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 Euro, South Korean Won, and Japanese Yen expenditures for sales offices and research and development activities undertaken outside of the U.S. The Company is exposed to fluctuations in foreign currency exchange rates for cash flows for expenditures and on orders and accounts receivable from sales in these foreign currencies. The Company has established risk management strategies designed to reduce the impact of volatility of future cash flows caused by changes in the exchange rate for these currencies. These strategies reduce, but do not entirely eliminate, the impact of currency exchange rates movements. Currency forward contracts are used to offset the currency risk of non-U.S. dollar-denominated assets and liabilities. The Company typically enters into currency forward contracts to hedge exposures associated with its expenditures denominated in Euros, Philippine Pesos and South Korean Won. The Company also hedges smaller expense exposures in several other foreign currencies. The Company enters into currency forward contracts to hedge its accounts receivable and backlog denominated in Euro, Japanese Yen and British Pound. Changes in fair value of the underlying assets and liabilities are generally offset by the changes in fair value of the related currency forward contract. The Company uses currency forward contracts to hedge exposure to variability in anticipated non-U.S. dollar denominated cash flows. These contracts are designated as cash flow hedges and recorded on the Consolidated Balance Sheets at their fair market value. The maturities of these instruments are generally less than six months . For derivative instruments that are designated and qualify as cash flow hedges, the effective portion of the gain or loss on the derivative is reported as a component of accumulated other comprehensive income (loss) and reported within the Consolidated Statements of Comprehensive Income. These amounts have been reclassified into earnings in the same period or periods during which the hedged transaction affects earnings. For derivative instruments that are not designated as hedging instruments, gains and losses are recognized immediately in āInterest income (expense) and other, netā in the Consolidated Statements of Income. |
Fair Value of Financial Instruments [Policy Text Block] | The Company measures certain financial assets and liabilities at fair value based on the exchange price that would be received for an asset or paid to transfer a liability (an exit price) in the principal or most advantageous market for the asset or liability in an orderly transaction between market participants. |
Inventories [Policy Text Block] | Inventories are stated at the lower of (i) standard cost, which approximates actual cost on a first-in-first-out basis, or (ii) market value. The Company's standard cost revision policy is to monitor manufacturing variances and revise standard costs on a quarterly basis. Because of the cyclical nature of the market, inventory levels, obsolescence of technology, and product life cycles, the Company generally writes down inventories to net realizable value based on forecasted product demand |
Property, Plant and Equipment [Policy Text Block] | Property, plant and equipment are stated at cost. Depreciation is primarily computed on the straight-line method over the estimated useful lives of the assets, which range from 2 to 15 years for machinery and equipment and up to 40 years for buildings and building improvements. Leasehold improvements are amortized over the lesser of their useful lives or the remaining term of the related lease. When assets are retired or otherwise disposed of, the cost and accumulated depreciation or amortization is removed from the accounts and any resulting gain or loss is reflected in the Consolidated Statements of Income in the period recognized. The classification is based mainly on whether the asset is operating or not. The Company evaluates the recoverability of property, plant and equipment in accordance with Accounting Standards Codification (āASCā) No. 360, Accounting for the Property, Plant, and Equipment . (āASC 360ā). The Company performs periodic reviews to determine whether facts and circumstances exist that would indicate that the carrying amounts of property, plant and equipment are not recoverable and exceeds their fair values. If facts and circumstances indicate that the carrying amount of property, plant and equipment might not be fully recoverable, projected undiscounted net cash flows associated with the related asset or group of assets over their estimated remaining useful lives are compared against their respective carrying amounts. In the event that the projected undiscounted cash flows are not sufficient to recover the carrying value of the assets, the assets are written down to their estimated fair values based on their expected discounted future cash flows attributable to those assets. All long-lived assets classified as held for sale are reported at the lower of carrying amount or fair market value, less expected selling costs. |
Intangible Assets and Goodwill [Policy Text Block] | The Company accounts for intangible assets in accordance with ASC No. 350, Intangibles-Goodwill and Other, (āASC 350ā). The Company reviews goodwill and purchased intangible assets with indefinite lives for impairment annually and whenever events or changes in circumstances indicate the carrying value of an asset may not be recoverable, such as when reductions in demand or significant economic slowdowns in the semiconductor industry are present. Intangible asset reviews are performed when indicators exist that could indicate the carrying value may not be recoverable based on comparisons to undiscounted expected future cash flows. If this comparison indicates that there is impairment, the impaired asset is written down to fair value, which is typically calculated using: (i) quoted market prices or (ii) discounted expected future cash flows utilizing a discount rate consistent with the guidance provided in FASB Concepts Statement No. 7, Using Cash Flow Information and Present Value in Accounting Measurements . Impairment is based on the excess of the carrying amount over the fair value of those assets. Goodwill represents the excess of the purchase price in a business combination over the fair value of net tangible and intangible assets acquired. In accordance with ASC 350, the Company tests goodwill for impairment at the reporting unit level (operating segment or one level below an operating segment) on an annual basis or more frequently if the Company believes indicators of impairment exist. During the fourth quarter of fiscal year 2015, the Company changed its annual goodwill impairment testing date from the first quarter to the fourth quarter of each year. This change ensures the completion of the annual goodwill impairment test prior to the end of the annual reporting period, thereby aligning impairment testing procedures with year-end financial reporting and annual long-range plan and forecasting process. This change did not accelerate, delay, avoid, or cause an impairment charge, nor did this change result in adjustments to previously issued financial statements. The performance of the test involves a two-step process. The first step of the impairment test involves comparing the fair values of the applicable reporting units with their aggregate carrying values, including goodwill. The Company generally determines the fair value of the Company's reporting units using the income approach methodology of valuation that includes the discounted cash flow method as well as the market approach which includes the guideline company method. If the carrying amount of a reporting unit exceeds the reporting unit's fair value, the Company performs the second step of the goodwill impairment test to determine the amount of impairment loss. The second step of the goodwill impairment test involves comparing the implied fair value of the affected reporting unit's goodwill with the carrying value of that goodwill. |
Product Warranty [Policy Text Block] | 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 Companyās specifications. The general warranty policy provides for the repair or replacement of defective products or a credit to the customerās account. In addition, the Company may consider its relationship with the customer when reviewing product claims. In limited circumstances and for strategic customers in certain unique industries and applications, the Company's 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 customerās account should the product not meet the Companyās specifications and losses and/or damages results from the defective 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 the Company's 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. The short-term and long-term portions of the product warranty liability are included within the balance sheet captions Accrued expenses and Other liabilities, respectively, in the accompanying Consolidated Balance Sheets. |
Retirement Benefits [Policy Text Block] | The Company provides medical benefits to certain former and current employees pursuant to certain retirement agreements. The Company also provides retirement benefits to Philippines employees and to certain other employees in other countries. These benefits to individuals are accounted for pursuant to a documented plan under ASC No. 715, Compensation- Retirement Benefits (āASC 715ā) . Unrecognized actuarial gains and losses and prior service cost are amortized on straight-line basis over the remaining estimated service period of participants. The measurement date for the plan is fiscal year end. |
Income Taxes [Policy Text Block] | The Company accounts for income taxes using an asset and liability approach as prescribed in ASC 740-10, Income Taxes (āASC 740-10ā). The Company records the amount of taxes payable or refundable for the current and prior years and deferred tax assets and liabilities for the future tax consequences of events that have been recognized in the Company's financial statements or tax returns. A valuation allowance is recorded to reduce deferred tax assets when it is more likely than not that a tax benefit will not be realized. ASC 740-10 prescribes a recognition threshold and measurement framework for the financial statement reporting and disclosure of an income tax position taken or expected to be taken on a tax return. Under ASC 740-10, a tax position is recognized in the financial statements when it is more likely than not, based on the technical merits, that the position will be sustained upon examination, including resolution of any related appeals or litigation processes. A tax position that meets the recognition threshold is then measured to determine the largest amount of the benefit that has a greater than 50% likelihood of being realized upon settlement. The Company recognizes interest and penalties related to unrecognized tax benefits as a component of the provision for income taxes in the Consolidated Statements of Income. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of complex tax laws across multiple tax jurisdictions. Although ASC 740-10 provides clarification on the accounting for uncertainty in income taxes recognized in the financial statements, the recognition threshold and measurement framework will continue to require significant judgment by management. Resolution of these uncertainties in a manner inconsistent with the Company's expectations could have a material impact on the Company's results of operations. |
Revenue Recognition [Policy Text Block] | The Company recognizes revenue for sales to direct customers and sales to certain distributors upon shipment, provided that persuasive evidence of a sales arrangement exists, the price is fixed or determinable, title and risk of loss has transferred, collectability of the resulting receivable is reasonably assured, there are no customer acceptance requirements and the Company does not have any significant post-shipment obligations. Estimated returns for sales to direct customers and certain distributors are based on historical returns rates applied against current period gross revenues. Specific customer returns and allowances are considered within this estimate. Sales to certain distributors are made pursuant to agreements allowing for the possibility of certain sales price rebates or price protection and for non-warranty product return privileges. The non-warranty product return privileges include allowing certain distributors to return a small portion of the Company's products in their inventory based on their previous purchases. Given the uncertainties associated with the levels of non-warranty product returns, sales price rebates and price protection that could be issued to certain distributors, the Company defers recognition of such revenue and related cost of goods sold until receipt of notification from these distributors that product has been sold to their end-customers. Accounts receivable from direct customers and distributors are recognized and inventory is relieved upon shipment as title to inventories generally transfers upon shipment, at which point the Company has a legally enforceable right to collection under normal terms. Accounts receivable related to consigned inventory is recognized when the customer takes title to such inventory from its consigned location, at which point inventory is relieved, title transfers, and the Company has a legally enforceable right to collection under the terms of the Company's agreement with the related customers. |
Revenue Recognition, Sales Returns [Policy Text Block] | The Company estimates potential future returns and sales allowances related to current period product revenue. Management analyzes historical returns, changes in customer demand and acceptance of products when evaluating the adequacy of returns and sales allowances. Estimates made by the Company may differ from actual returns and sales allowances. These differences may materially impact reported revenue and amounts ultimately collected on accounts receivable. Historically, such differences have not been material. |
Related Party Transactions [Policy Text Block] | A member of the Company's board of directors is also a member of the board of directors of Flextronics International Ltd. |
Research and Development Costs [Policy Text Block] | Research and development costs are expensed as incurred. Such costs consist primarily of expenditures for labor and benefits, masks, prototype wafers and depreciation. |
Shipping Cost [Policy Text Block] | Shipping costs billed to customers are included in net revenues and the related shipping costs are included in cost of goods sold in the Consolidated Statements of Income. |
Share-based Compensation [Policy Text Block] | Stock-based compensation cost is measured at the grant date, based on the fair value of the awards ultimately expected to vest and is recognized as an expense, on a straight-line basis, over the requisite service period. ASC 718 also requires forfeitures to be estimated at the time of grant and revised if necessary in subsequent periods if actual forfeitures or vesting differ from those estimates. Such revisions could have a material effect on the Company's operating results. The Company uses the Black-Scholes valuation model to measure the fair value of its stock options utilizing various inputs with respect to expected holding period, risk-free interest rates, stock price volatility and dividend yield. The assumptions the Company uses in the valuation model are based on subjective future expectations combined with management judgment. If any of the assumptions used in the Black-Scholes model changes, stock-based compensation for future awards may differ materially compared to the awards granted previously. The Company uses the Monte Carlo simulation model to measure the fair value of its market stock units on the date of grant. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis. |
Restructuring [Policy Text Block] | Post-employment benefits accrued for workforce reductions related to restructuring activities in the United States are accounted for under ASC No. 712, Compensation-Nonretirement Postemployment Benefits (āASC 712ā). A liability for post-employment benefits is recorded when payment is probable, the amount is reasonably estimable, and the obligation relates to rights that have vested or accumulated. In accordance with ASC No. 420, Exit or Disposal Cost Obligations , generally costs associated with restructuring activities initiated outside the United States have been recognized when they are incurred. The Company continually evaluates the adequacy of the remaining liabilities under its restructuring initiatives. Although the Company believes that these estimates accurately reflect the costs of its restructuring plans, actual results may differ, thereby requiring the Company to record additional provisions or reverse a portion of such provisions. |
Foreign Currency Translations and Remeasurement [Policy Text Block] | The U.S. dollar is the functional currency for the Company's foreign operations. Using the U.S. dollar as the functional currency, monetary assets and liabilities are remeasured at the year-end exchange rates. Certain non-monetary assets and liabilities are remeasured using historical rates. Consolidated Statements of Income are remeasured at the average exchange rates during the year. Foreign exchange gains and losses as recorded in the Consolidated Statements of Income for all periods presented were not material. |
Earnings Per Share [Policy Text Block] | Basic earnings per share are computed using the weighted average number of common shares outstanding during the period. Diluted earnings per share incorporate the potentially dilutive incremental shares issuable upon the assumed exercise of stock options, the assumed vesting of outstanding restricted stock units and market stock units, and the assumed issuance of common stock under the stock purchase plan. The number of incremental shares from the assumed issuance of stock options is calculated by applying the treasury stock method. |
Litigation and Contingencies [Policy Text Block] | From time to time, the Company receives notices that its products or manufacturing processes may be infringing the patent or other intellectual property rights of others, notices of stockholder litigation or other lawsuits or claims against the Company. The Company periodically assesses each matter in order to determine if a contingent liability in accordance with ASC 450 should be recorded. In making this determination, management may, depending on the nature of the matter, consult with internal and external legal counsel and technical experts. The Company expenses legal fees associated with consultations and defense of lawsuits as incurred. Based on the information obtained, combined with management's judgment regarding all of the facts and circumstances of each matter, the Company determines whether a contingent loss is probable and whether the amount of such loss can be estimated. Should a loss be probable and estimable, the Company records a contingent loss in accordance with ASC 450. In determining the amount of a contingent loss, the Company takes into consideration advice received from experts in the specific matter, current status of legal proceedings, settlement negotiations which may be ongoing, prior case history and other factors. Should the judgments and estimates made by management be incorrect, the Company may need to record additional contingent losses that could materially adversely impact its results of operations. Alternatively, if the judgments and estimates made by management are incorrect and a particular contingent loss does not occur, the contingent loss recorded would be reversed thereby favorably impacting the Company's results of operations. Pursuant to the Company's charter documents and separate written indemnification agreements, the Company has certain indemnification obligations to its current officers and directors, as well as certain former officers and directors. Pursuant to such obligations, the Company has incurred substantial expenses related to legal fees and expenses to certain former officers of the Company subject to civil charges by the SEC in connection with Maxim Integrated's historical stock option granting practices. The Company has also incurred substantial expenses related to legal fees and expenses advanced to certain current and former officers and directors who were defendants in the civil actions described above. The Company expenses such amounts as incurred. |
Concentration Risk, Credit Risk, Policy [Policy Text Block] | The Company maintains cash, cash equivalents, and short-term investments with various high credit quality financial institutions, limits the amount of credit exposure to any one financial institution or instrument, and is exposed to credit risk in the event of default by these institutions to the extent of amounts recorded at the balance sheet date. To date, the Company has not incurred losses related to these investments. |
New Accounting Pronouncements and Changes in Accounting Principles [Text Block] | Recently Issued Accounting Pronouncements (i) New Accounting Updates Recently Adopted 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. The Company early adopted this accounting standard update during the fourth quarter of fiscal year 2016, with adjustments reflected on a retrospective basis for all periods presented. All debt issuance costs which were previously recorded as assets within the balance sheet have now been reclassified to be presented as a reduction of the debt liability on the Consolidated Balance Sheets. The adoption resulted in a $2.8 million and $1.2 million decrease in other current assets, a $7.1 million and $11.1 million decrease in other assets and a $9.9 million and $12.3 million decrease in long term debt as of June 25, 2016 and June 27, 2015 , respectively. 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 June 25, 2016, have been classified as noncurrent in the accompanying Consolidated Balance Sheets and the notes thereto. The adoption at the beginning of the second quarter of fiscal year 2016 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) . This standard provides a single set of guidelines for revenue recognition to be used across all industries and requires additional disclosures. 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. The Company is currently evaluating the potential impact of this standard on its financial position and results of operations, as well as its selected transition method. 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 application of this ASU will be by means of a cumulative-effect adjustment to the balance sheet. The amendments related to equity securities without readily determinable fair values (including disclosure requirements) will be applied prospectively to equity investments that exist as of the date of adoption. The Company is evaluating the effects of the adoption of this ASU to its financial statements. In February 2016, the FASB issued ASU 2016-02, Leases (Topic 842) , which supersedes the lease accounting requirements in Topic 840. ASU 2016-02 requires a dual approach for lessee accounting under which a lessee would account for leases as finance leases or operating leases. Both finance leases and operating leases will result in the lessee recognizing a right-of use asset and a corresponding lease liability. For finance leases, the lessee would recognize interest expense and amortization of the right-of-use asset, and for operating leases, the lessee would recognize a straight-line total lease expense. The guidance also requires qualitative and specific quantitative disclosures to supplement the amounts recorded in the financial statements so that users can understand more about the nature of an entityās leasing activities, including significant judgments and changes in judgments. This guidance is effective beginning in the first quarter of fiscal year 2020 on a modified retrospective approach. The Company is currently evaluating the potential impact of this standard on its financial statements. In March 2016, the FASB issued ASU 2016-09, Improvements to Employee Share-Based Payment Accounting, which is intended to simplify several aspects of the accounting for share-based payment transactions, including the income tax consequences, classification of awards as either equity or liabilities, and classification on the statement of cash flows. This guidance is effective beginning in the first quarter of fiscal year 2018 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 is currently evaluating the potential impact of this standard on its financial statements and intends to early adopt in the first quarter of fiscal year 2017. |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of: June 25, June 27, Inventories: (in thousands) Raw materials $ 6,505 $ 12,932 Work-in-process 148,762 199,716 Finished goods 72,662 75,826 $ 227,929 $ 288,474 |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment, net, consist of: June 25, June 27, Property, plant and equipment: (in thousands) Land $ 18,952 $ 45,040 Buildings and building improvements 240,507 338,394 Machinery and equipment 1,370,322 1,970,819 1,629,781 2,354,253 Less: accumulated depreciation and amortization (937,230 ) (1,263,514 ) $ 692,551 $ 1,090,739 |
Accounts Payable, Accrued Liabilities, and Other Liabilities Disclosure, Current [Text Block] | Accrued salary and related expenses consist of: June 25, June 27, Accrued salary and related expenses: (in thousands) Accrued bonus $ 90,638 $ 86,506 Accrued vacation 30,753 36,906 Accrued salaries 14,320 16,572 Accrued severance and post-employment benefits 14,230 25,136 Accrued fringe 4,748 6,007 Other 12,009 10,233 $ 166,698 $ 181,360 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Fair Value Disclosures [Abstract] | |
Fair Value, Measurement Inputs, Disclosure [Table Text Block] | Assets and liabilities measured at fair value on a recurring basis were as follows: As of June 25, 2016 As of June 27, 2015 Fair Value Fair Value Measurements Using Total Balance Measurements Using Total Balance Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Assets Money market funds (1) $ 1,658,321 $ ā $ ā $ 1,658,321 $ 1,156,239 $ ā $ ā $ 1,156,239 U.S. treasury bills (2) ā 125,439 ā 125,439 ā 75,154 ā 75,154 Foreign currency forward contracts (3) ā 695 ā 695 ā 679 ā 679 Investment in common stock (3) ā 40,000 ā 40,000 ā ā ā ā Certificates of deposit (1) ā 70 ā 70 ā ā ā ā Total Assets $ 1,658,321 $ 166,204 $ ā $ 1,824,525 $ 1,156,239 $ 75,833 $ ā $ 1,232,072 Liabilities Foreign currency forward contracts (4) $ ā $ 1,327 $ ā $ 1,327 $ ā $ 613 $ ā $ 613 Total Liabilities $ ā $ 1,327 $ ā $ 1,327 $ ā $ 613 $ ā $ 613 (1) Included in Cash and cash equivalents in the accompanying Consolidated Balance Sheets. (2) Included in Short-term investments in the accompanying Consolidated Balance Sheets. (3) Included in Other current assets in the accompanying Consolidated Balance Sheets. (4) Included in Accrued expenses in the accompanying 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 fiscal years ended June 25, 2016 and June 27, 2015 : Fair Value Measured and Recorded Using Significant Unobservable Inputs (Level 3) June 25, June 27, Contingent Consideration (in thousands) Beginning balance $ ā $ 3,215 Total gains or losses (realized and unrealized): Included in earnings ā 384 Payments ā (3,599 ) Ending balance $ ā $ ā Changes in unrealized losses (gains) included in earnings related to liabilities still held as of period end $ ā $ ā |
Financial Instruments (Tables)
Financial Instruments (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Available-for-sale investments [Table Text Block] | Fair values were as follows: June 25, 2016 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 bills $ 124,950 $ 489 $ ā $ 125,439 $ 75,022 $ 132 $ ā $ 75,154 Total available-for-sale investments $ 124,950 $ 489 $ ā $ 125,439 $ 75,022 $ 132 $ ā $ 75,154 |
Schedule of Long-term Debt Instruments [Table Text Block] | The following table summarizes the Company's outstanding debt obligations: June 25, 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 Short-term credit agreement 250,000 ā Notes denominated in Euro Term fixed rate notes (2.0%) due on September 30, 2015 ā 1,024 Total outstanding debt 1,250,000 1,001,024 Less: Current portion (included in āCurrent portion of debtā) (249,717 ) (1,024 ) Less: Reduction for unamortized discount and debt issuance costs (10,193 ) (12,313 ) Total long-term debt $ 990,090 $ 987,687 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | The fair value of ESPP granted to employees in fiscal years 2016 , 2015 and 2014 has been estimated at the date of grant using the Black-Scholes option valuation model using the following assumptions for the offering periods outstanding: ESPP For the Year Ended June 25, June 27, June 28, Expected holding period (in years) 0.5 0.5 0.5 Risk-free interest rate 0.1% - 0.5% 0.1 % 0.1% - 0.2% Expected stock price volatility 21.8% - 33.1% 20.7% - 26.4% 20.7% - 25.5% Dividend yield 3.3% - 3.6% 3.3% - 3.7% 3.1% - 3.7% |
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 Consolidated Statements of Income for fiscal years 2016 , 2015 and 2014 : For the Year Ended June 25, Stock Options Restricted Stock Units and Other Awards Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 837 $ 5,697 $ 2,340 $ 8,874 Research and development 3,469 27,784 5,133 36,386 Selling, general and administrative 3,043 19,127 2,271 24,441 Pre-tax stock-based compensation expense $ 7,349 $ 52,608 $ 9,744 $ 69,701 Less: income tax effect 11,314 Net stock-based compensation expense $ 58,387 For the Year Ended June 27, Stock Options Restricted Stock Units and Other Awards Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 1,391 $ 8,226 $ 2,257 $ 11,874 Research and development 4,783 31,899 5,375 42,057 Selling, general and administrative 3,863 19,414 2,283 25,560 Pre-tax stock-based compensation expense $ 10,037 $ 59,539 $ 9,915 $ 79,491 Less: income tax effect 14,131 Net stock-based compensation expense $ 65,360 For the Year Ended June 28, Stock Options Restricted Stock Units and Other Awards Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 1,650 $ 8,466 $ 2,132 $ 12,248 Research and development 8,676 31,548 5,452 45,676 Selling, general and administrative 5,486 19,734 2,308 27,528 Pre-tax stock-based compensation expense $ 15,812 $ 59,748 $ 9,892 $ 85,452 Less: income tax effect 15,245 Net stock-based compensation expense $ 70,207 |
Schedule of Share-based Payment Award, Stock Options, Valuation Assumptions [Table Text Block] | The fair value of options granted to employees in fiscal years 2015 and 2014 has been estimated using the following weighted-average assumptions: Stock Options For the Year Ended (1) June 27, June 28, Expected holding period (in years) 4.8 5.3 Risk-free interest rate 1.6 % 1.4 % Expected stock price volatility 26.7 % 34.6 % Dividend yield 3.2 % 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 June 25, 2016 and their activity during fiscal years 2016 , 2015 and 2014 : Options Weighted Average Remaining Contractual Term (In Years) Aggregate Intrinsic Value (1) Number of Shares Weighted Average Exercise Price Balance at June 29, 2013 20,081,339 $26.00 Options Granted 3,638,729 27.30 Options Exercised (3,568,775 ) 18.60 Options Cancelled (3,987,649 ) 34.86 Balance at June 28, 2014 16,163,644 25.74 Options Granted 63,584 32.22 Options Exercised (3,168,704 ) 18.39 Options Cancelled (2,885,508 ) 33.62 Balance at June 27, 2015 10,173,016 25.83 Options Granted ā ā Options Exercised (3,242,881 ) 25.05 Options Cancelled (995,056 ) 32.67 Balance at June 25, 2016 5,935,079 25.11 3.0 $ 71,297,014 Exercisable at June 25, 2016 3,251,896 $22.69 2.3 $ 46,799,932 Vested and expected to vest, June 25, 2016 5,794,417 $25.02 3.0 $ 69,869,048 (1) Aggregate intrinsic value represents the difference between the exercise price and the closing price per share of the Company's common stock on June 24, 2016, the last business day preceding the fiscal year end, multiplied by the number of options outstanding, exercisable or vested and expected to vest as of June 25, 2016 . |
Schedule of Share-based Compensation, Shares Authorized under Stock Option Plans, by Exercise Price Range [Table Text Block] | The following table summarizes information about stock options that were outstanding and exercisable at June 25, 2016 : Outstanding Options Options Exercisable Range of Exercise Prices Number Outstanding at June 25, 2016 Weighted Average Remaining Contractual Term (In years) Weighted Average Exercise Price Number Exercisable at June 25, 2016 Weighted Average Exercise Price $12.00 - $20.00 1,068,741 1.2 $17.41 1,021,225 $17.32 $20.01 - $30.00 4,733,577 2.7 $26.63 2,186,711 $25.00 $30.01 - $40.00 132,761 4.0 $32.82 43,960 $32.29 5,935,079 3,251,896 |
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 outstanding and expected to vest RSUs and other awards as of June 25, 2016 and their activity during fiscal years 2016 , 2015 and 2014 : Number of Shares Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (1) Balance at June 29, 2013 7,965,532 Restricted stock units and other awards granted 3,916,111 Restricted stock units and other awards released (2,904,787 ) Restricted stock units and other awards cancelled (1,095,859 ) Balance at June 28, 2014 7,880,997 Restricted stock units and other awards granted 3,178,117 Restricted stock units and other awards released (2,589,639 ) Restricted stock units and other awards cancelled (1,339,490 ) Balance at June 27, 2015 7,129,985 Restricted stock units and other awards granted 2,905,973 Restricted stock units and other awards released (2,049,430 ) Restricted stock units and other awards cancelled (1,365,715 ) Balance at June 25, 2016 6,620,813 2.6 $ 246,061,953 Expected to vest at June 25, 2016 5,588,721 2.5 $ 207,229,781 (1) Aggregate intrinsic value for RSUs and other awards represents the closing price per share of the Company's common stock on June 24, 2016, the last business day preceding the fiscal year end, multiplied by the number of RSUs and other awards outstanding, or expected to vest as of June 25, 2016 . |
Schedule of Share-Based Compensation Arrangement by Share-Based Payment Award, Market Stock Units Vested and Expected to Vest [Table Text Block] | The following table summarizes the number of MSUs outstanding and expected to vest as of June 25, 2016 and their activity during fiscal years 2016 , 2015 and 2014 : Number of Shares Weighted Average Remaining Contractual Term (In years) Aggregate Intrinsic Value (1) Balance at June 29, 2013 (2) 60,000 Market stock units granted 60,000 Market stock units released ā Market stock units cancelled ā Balance at June 28, 2014 (2) 120,000 Market stock units granted 423,044 Market stock units released (42,476 ) Market stock units cancelled (85,728 ) Balance at June 27, 2015 414,840 Market stock units granted 361,684 Market stock units released ā Market stock units cancelled (102,992 ) Balance at June 25, 2016 673,532 2.9 $ 24,974,567 Expected to vest at June 25, 2016 547,546 2.9 $ 20,303,011 (1) Aggregate intrinsic value for MSUs represents the closing price per share of the Companyās common stock on June 24, 2016, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of June 25, 2016 . (2) Reflects shares previously granted to the Companyās Chief Executive Officer only. |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
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: For the Year Ended June 25, June 27, June 28, (in thousands, except per share data) Numerator for basic earnings (loss) per share and diluted earnings (loss) per share Net income (loss) $ 227,475 $ 206,038 $ 354,810 Denominator for basic earnings (loss) per share 285,081 283,675 283,344 Effect of dilutive securities: Stock options, ESPP, RSUs and MSUs 4,398 5,274 5,764 Denominator for diluted earnings (loss) per share 289,479 288,949 289,108 Earnings (loss) per share: Basic $ 0.80 $ 0.73 $ 1.25 Diluted $ 0.79 $ 0.71 $ 1.23 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of goodwill [Table Text Block] | Activity and goodwill balances for the fiscal years ended June 25, 2016 and June 27, 2015 were as follows: Goodwill (in thousands) Balance at June 28, 2014 $ 596,637 Adjustments (866 ) Impairments (84,124 ) Balance at June 27, 2015 511,647 Divestitures (20,999 ) Balance at June 25, 2016 $ 490,648 |
Useful lives of definite lived intangible assets [Table Text Block] | The useful lives of amortizing intangible assets are as follows: Asset Life Intellectual property 1-10 years Customer relationships 3-10 years Trade name 1-4 years Patents 5 years |
Schedule of intangible assets [Table Text Block] | Intangible assets consisted of the following: June 25, 2016 June 27, 2015 Original Cost Accumulated Amortization Net Original Cost Accumulated Amortization Net (in thousands) Intellectual property $ 420,285 $ 331,321 $ 88,964 $ 435,962 $ 276,175 $ 159,787 Customer relationships 115,634 92,744 22,890 120,230 82,774 37,456 Trade name 8,500 6,486 2,014 8,500 4,886 3,614 Patent 2,500 1,428 1,072 2,500 907 1,593 Total amortizable purchased intangible assets 546,919 431,979 114,940 567,192 364,742 202,450 IPR&D 31,600 ā 31,600 59,202 ā 59,202 Total purchased intangible assets $ 578,519 $ 431,979 $ 146,540 $ 626,394 $ 364,742 $ 261,652 |
Allocated amortization expense of intangible assets [Table Text Block] | The following table presents the amortization expense of intangible assets and its presentation in the Consolidated Statements of Income: For the Year Ended June 25, June 27, June 28, (in thousands) Cost of goods sold $ 55,031 $ 74,366 $ 64,483 Intangible asset amortization 12,205 16,077 17,690 Total intangible asset amortization expenses $ 67,236 $ 90,443 $ 82,173 |
Estimated future amortization expense of intangible assets [Table Text Block] | The following table represents the estimated future amortization expense of intangible assets as of June 25, 2016 : Fiscal Year Amount (in thousands) 2017 $ 49,090 2018 41,564 2019 13,278 2020 3,358 2021 2,888 Thereafter 4,762 Total intangible assets $ 114,940 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Acquisition [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The total purchase price for Volterra was approximately $615 million and was comprised of: (in thousands) Cash consideration for 100% of outstanding common stock of Volterra at $23 per share $ 593,250 Cash consideration for vested options settlement 21,756 Total preliminary purchase price $ 615,006 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed [Table Text Block] | The purchase price allocation as of the date of the acquisition is set forth in the table below and reflects various fair value estimates and analysis. These estimates were determined through established and generally accepted valuation techniques, including work performed by third-party valuation specialists. Volterra (in thousands) Net tangible assets 158,710 Amortizable intangible assets 226,900 IPR&D 56,200 Goodwill 174,894 Substitution of stock-based compensation awards (1,698 ) Total purchase price $ 615,006 |
Schedule of Finite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The amortizable intangible assets are being amortized on a straight-line basis over their estimated useful lives as follows: Volterra acquisition Fair value (in thousands) Weighted average useful life (in years) Intellectual property $ 192,500 4.9 Customer relationships 24,600 9.6 Trade name 6,400 4.0 Backlog 900 0.4 Patents 2,500 4.8 Total amortizable intangible assets $ 226,900 |
Segment Information (Tables)
Segment Information (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Segment Reporting [Abstract] | |
Schedule of Revenue from External Customers by Geographical Areas [Table Text Block] | Net revenues from unaffiliated customers by geographic region were as follows: For the Year Ended June 25, June 27, June 28, (in thousands) United States $ 246,969 $ 281,374 $ 320,282 China 837,345 947,231 997,706 Rest of Asia 676,116 665,388 748,320 Europe 377,938 347,275 324,867 Rest of World 56,351 65,596 62,488 $ 2,194,719 $ 2,306,864 $ 2,453,663 |
Schedule of Long Lived Assets by Geographical Areas [Table Text Block] | Net long-lived assets by geographic region were as follows: Fiscal Year Ended June 25, June 27, (in thousands) United States $ 423,653 $ 783,148 Philippines 141,569 166,405 Rest of World 127,329 141,186 $ 692,551 $ 1,090,739 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Commitments and Contingencies Disclosure [Abstract] | |
Future Annual Minimum Payments Related to Commitments [Table Text Block] | Future annual minimum payments for all commitments are as follows: Payment due by period Total Fiscal year 2017 Fiscal year 2018 Fiscal year 2019 Fiscal year 2020 Fiscal year 2021 Thereafter Contractual Obligations (in thousands) Operating lease obligations (1) $ 53,568 $ 8,778 $ 6,827 $ 5,106 $ 4,907 $ 4,409 $ 23,541 Short-term debt obligations (2) 250,000 250,000 ā ā ā ā ā Long-term debt obligations (3) 1,000,000 ā ā 500,000 ā ā 500,000 Interest payments associated with debt obligations (4) 147,388 33,699 29,375 21,736 16,875 16,875 28,828 Capital equipment and inventory related purchase obligations (5) 725,987 100,875 87,760 75,285 74,467 62,958 324,642 Total $ 2,176,943 $ 393,352 $ 123,962 $ 602,127 $ 96,249 $ 84,242 $ 877,011 (1) The Company leases some facilities under non-cancelable operating lease agreements that expire at various dates through 2030 . (2) Short-term debt represents amounts primarily due for the Company's short-term credit agreement. (3) Long-term debt represents amounts primarily due for the Company's long-term notes. (4) Interest payments calculated based on contractual payment requirements under the debt agreements. (5) The Company orders some materials and supplies in advance or with minimum purchase quantities. The Company is obligated to pay for the materials and supplies when received. Additionally, in 2016 the Company entered into a long term supply agreement with the semiconductor foundry TowerJazz to supply finished wafers on existing Maxim processes and products which contains minimum purchase requirements. |
Schedule of Product Warranty Liability [Table Text Block] | The changes in the Company's aggregate product warranty liabilities for the fiscal years ended June 25, 2016 and June 27, 2015 were as follows: June 25, June 27, (in thousands) Product warranty liability at beginning of the year $ 13,436 $ 21,296 Accruals 3,518 1,665 Payments (9,300 ) (8,686 ) Changes in estimate 952 (839 ) Product warranty liability at ending of the year $ 8,606 $ 13,436 Current portion 8,606 9,136 Non-current portion $ ā 4,300 |
Comprehensive Income (Tables)
Comprehensive Income (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
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 fiscal years ended June 25, 2016 and June 27, 2015 were as follows: Unrealized gain (loss) on intercompany receivables Unrealized gain (loss) on post-retirement benefits Cumulative translation adjustment Unrealized gain (loss) on cash flow hedges Unrealized gain (loss) on available-for-sale securities Total (in thousands) June 28, 2014 $ (5,753 ) $ (10,373 ) $ (1,136 ) $ (11 ) $ 100 $ (17,173 ) Other comprehensive income (loss) before reclassifications ā ā ā (6,272 ) 33 (6,239 ) Amounts reclassified out of accumulated other comprehensive income (loss) ā 827 ā 6,428 ā 7,255 Tax effects (527 ) (458 ) ā (92 ) ā (1,077 ) Other comprehensive income (loss) (527 ) 369 ā 64 33 (61 ) June 27, 2015 $ (6,280 ) $ (10,004 ) $ (1,136 ) $ 53 $ 133 $ (17,234 ) Other comprehensive income (loss) before reclassifications ā ā ā (1,197 ) 356 (841 ) Amounts reclassified out of accumulated other comprehensive income (loss) ā 3,659 ā 450 ā 4,109 Tax effects ā (455 ) ā 202 ā (253 ) Other comprehensive income (loss) ā 3,204 ā (545 ) 356 3,015 June 25, 2016 $ (6,280 ) $ (6,800 ) $ (1,136 ) $ (492 ) $ 489 $ (14,219 ) |
Interest and Other Income (Ex40
Interest and Other Income (Expense) (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Other Income and Expenses [Abstract] | |
Schedule of Other Nonoperating Income (Expense) [Table Text Block] | Interest and other income (expense) was as follows: For the Year Ended June 25, June 27, June 28, (in thousands) Interest and other income (expense): Interest income (expense), net $ (29,757 ) $ (31,545 ) $ (26,428 ) Other income (expense), net 962 40,435 13,363 Total $ (28,795 ) $ 8,890 $ (13,065 ) |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Income Tax Disclosure [Abstract] | |
Schedule of Income before Income Tax, Domestic and Foreign [Table Text Block] | Pretax income (loss) is as follows: For the Year Ended June 25, June 27, June 28, (in thousands) Domestic pre-tax income (loss) $ (48,985 ) $ 68,289 $ 87,630 Foreign pre-tax income (loss) 334,039 177,881 321,596 Total $ 285,054 $ 246,170 $ 409,226 |
Schedule of Components of Income Tax Expense (Benefit) [Table Text Block] | The provision for income taxes consisted of the following: For the Year Ended June 25, June 27, June 28, (in thousands) Federal Current $ 98,810 $ 108,736 $ 93,012 Deferred (52,240 ) (74,190 ) (42,875 ) State Current 1,808 3,791 2,676 Deferred (2,406 ) (3,269 ) (1,465 ) Foreign Current 10,278 8,294 6,692 Deferred 1,329 (3,230 ) (3,624 ) Total provision for income taxes $ 57,579 $ 40,132 $ 54,416 |
Schedule of Effective Income Tax Rate Reconciliation [Table Text Block] | A reconciliation of the Company's Federal statutory tax rate to the Company's effective tax rate is as follows: For the Year Ended June 25, June 27, June 28, Federal statutory rate 35.0 % 35.0 % 35.0 % State tax, net of federal benefit (0.6 ) (0.4 ) 0.1 General business credits (2.8 ) (2.8 ) (0.9 ) Effect of foreign operations (21.7 ) (24.6 ) (19.1 ) Stock-based compensation 4.7 5.9 3.9 Fixed assets federal tax basis adjustments ā ā (8.4 ) Interest accrual for unrecognized tax benefits 3.2 2.6 1.1 Non-deductible goodwill 2.5 ā ā Other (0.1 ) 0.6 1.6 Effective tax rate 20.2 % 16.3 % 13.3 % |
Schedule of Deferred Tax Assets and Liabilities [Table Text Block] | Deferred income taxes reflect the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. The components of the Company's deferred tax assets and liabilities are as follows: For the Year Ended June 25, June 27, (in thousands) Deferred tax assets: Distributor related accruals and sales return and allowance accruals $ 23,482 $ 15,966 Accrued compensation 39,979 44,961 Stock-based compensation 15,562 22,639 Net operating loss carryovers 44,962 47,305 Tax credit carryovers 57,101 54,501 Other reserves and accruals not currently deductible for tax purposes 36,516 29,420 Other 11,552 10,968 Total deferred tax assets 229,154 225,760 Deferred tax liabilities: Fixed assets and intangible assets cost recovery, net (82,504 ) (141,070 ) Unremitted earnings of foreign subsidiaries (11,842 ) ā Other (3,695 ) (5,349 ) Total deferred tax liabilities (98,041 ) (146,419 ) Net deferred tax assets /(liabilities) before valuation allowance 131,113 79,341 Valuation allowance (95,060 ) (91,175 ) Net deferred tax assets/(liabilities) $ 36,053 $ (11,834 ) |
Summary of Income Tax Contingencies [Table Text Block] | A reconciliation of the change in gross unrecognized tax benefits, excluding interest, penalties and the federal benefit for state unrecognized tax benefits, is as follows: For the Year Ended June 25, June 27, June 28, (in thousands) Balance as of beginning of year $ 427,629 $ 396,765 $ 302,904 Tax positions related to current year: Addition 53,899 55,343 58,035 Tax positions related to prior year: Addition 3,035 214 300 Current year acquisitions ā ā 39,566 Reduction (205 ) (2,433 ) (586 ) Settlements (943 ) (21,458 ) (496 ) Lapses in statutes of limitations (670 ) (802 ) (2,958 ) Balance as of end of year $ 482,745 $ 427,629 $ 396,765 |
Summary of Income Tax Examinations [Table Text Block] | A summary of the fiscal tax years that remain subject to examination, as of June 25, 2016 , for the Company's major tax jurisdictions are as follows: United States - Federal 2009 - Forward United States - Various States 2009 - Forward Ireland 2011 - Forward Japan 2010 - Forward Philippines 2013 - Forward Singapore 2012 - Forward United Kingdom 2013 - Forward |
Restructuring Activities (Table
Restructuring Activities (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | The Company has accruals for severance and restructuring payments within Accrued salary and related expenses in the accompanying Condensed Consolidated Balance Sheets. The following table summarizes changes in the accruals associated with these restructuring activities during the fiscal year ending June 25, 2016 : Balance, June 27, 2015 Fiscal 2016 Balance, June 25, 2016 Charges Cash Payments Change in Estimates (in thousands) Severance - San Jose Fab Shutdown (1) $ 6,725 $ 973 $ (7,166 ) $ (532 ) $ ā Severance - Other plans (1) 11,496 $ 27,478 $ (27,934 ) $ (3,462 ) 7,578 Total $ 18,221 $ 28,451 $ (35,100 ) $ (3,994 ) $ 7,578 (1) Charges and change in estimates are included in Severance and restructuring expenses in the accompanying Condensed Consolidated Statements of Income. |
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. For the Years Ended June 25, June 27, June 28, (in thousands, except per share data) Operating income (loss), as reported $ 313,849 $ 237,280 $ 422,291 Operating income (loss), excluding accelerated depreciation expense 368,475 288,774 422,291 Effect of change in estimate $ (54,626 ) $ (51,494 ) $ ā Net income (loss), as reported $ 227,475 $ 206,038 $ 354,810 Net income (loss), excluding accelerated depreciation expense 283,129 259,182 ā Effect of change in estimate $ (55,654 ) $ (53,144 ) $ 354,810 Basic earnings (loss) per share, as reported $ 0.80 $ 0.73 $ 1.25 Diluted earnings (loss) per share, as reported $ 0.79 $ 0.71 $ 1.23 Basic earnings (loss) per share, excluding accelerated depreciation expense $ 0.99 $ 0.91 $ 1.25 Diluted earnings (loss) per share, excluding accelerated depreciation expense $ 0.98 $ 0.90 $ 1.23 Effect of change in estimate - basic earnings (loss) per share $ (0.19 ) $ (0.18 ) $ ā Effect of change in estimate - diluted earnings (loss) per share $ (0.19 ) $ (0.19 ) $ ā |
Benefits (Tables)
Benefits (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Compensation and Retirement Disclosure [Abstract] | |
Schedule of Net Funded Status [Table Text Block] | U.S. Employees Medical Expense & Funded Status Reconciliation June 25, Estimated Fiscal Year 2017 Expense June 27, Fiscal Year 2016 Expense (in thousands, except percentages) Accumulated Postretirement Benefit Obligation [APBO]: Retirees and beneficiaries $ (22,641 ) $ (22,414 ) Active participants (3,162 ) (2,850 ) Funded status $ (25,803 ) $ (25,264 ) Actuarial gain (loss) $ ā $ 524 Prior service cost ā ā Amounts Recognized in Accumulated Other Comprehensive Income: Net actuarial loss $ 7,390 $ 8,425 Prior service cost 1,675 2,031 Total $ 9,065 $ 10,456 Net Periodic Postretirement Benefit Cost/(Income): Interest cost 663 994 Amortization: Prior service cost 356 356 Net actuarial loss (1) ā 1,035 Total net periodic postretirement benefit cost $ 1,019 $ 2,385 Employer contributions $ 666 $ 809 Economic Assumptions: Discount rate 3.7% 4.0% Medical trend 7.0%-5.0% 7.5%-5.0% |
Schedule of Expected Benefit Payments [Table Text Block] | The following benefit payments are expected to be paid: Non-Pension Benefits (in thousands) 2017 $ 666 2018 685 2019 721 2020 724 2021 781 Thereafter 22,226 $ 25,803 |
Quarterly Financial Data (Una44
Quarterly Financial Data (Unaudited) (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Financial Information [Table Text Block] | Quarter Ended Fiscal Year 2016 6/25/2016 3/26/2016 12/26/2015 9/26/2015 (in thousands, except percentages and per share data) Net revenues $ 566,126 $ 555,252 $ 510,831 $ 562,510 Cost of goods sold 219,099 236,411 218,662 276,159 Gross margin $ 347,027 $ 318,841 $ 292,169 $ 286,351 Gross margin % 61.3 % 57.4 % 57.2 % 50.9 % Operating income (loss) $ 122,373 $ 177,708 $ 89,533 $ (75,765 ) % of net revenues 21.6 % 32.0 % 17.5 % (13.5 )% Net income (loss) (1) $ 92,339 $ 139,810 $ 67,469 $ (72,143 ) Earnings (loss) per share: Basic $ 0.32 $ 0.49 $ 0.24 $ (0.25 ) Diluted $ 0.32 $ 0.48 $ 0.23 $ (0.25 ) Shares used in the calculation of earnings (loss) per share: Basic 285,354 285,854 285,526 284,588 Diluted 288,544 289,783 290,521 284,588 Dividends declared and paid per share $ 0.30 $ 0.30 $ 0.30 $ 0.30 (1) The fiscal quarter ended September 26, 2015, includes 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 fiscal quarter ended March 26, 2016, includes a gain of $58.9 million associated to the sale of the Company's energy metering business. Quarter Ended Fiscal Year 2015 6/27/2015 3/28/2015 12/27/2014 9/27/2014 (in thousands, except percentages and per share data) Net revenues $ 582,517 $ 577,263 $ 566,809 $ 580,275 Cost of goods sold 278,816 261,995 252,732 241,454 Gross margin $ 303,701 $ 315,268 $ 314,077 $ 338,821 Gross margin % 52.1 % 54.6 % 55.4 % 58.4 % Operating income (loss) $ 94,948 $ 105,450 $ (64,076 ) $ 100,958 % of net revenues 16.3 % 18.3 % (11.3 )% 17.4 % Net income (loss) (1) $ 98,659 $ 79,433 $ (72,034 ) $ 99,980 Earnings (loss) per share: Basic $ 0.35 $ 0.28 $ (0.25 ) $ 0.35 Diluted $ 0.34 $ 0.28 $ (0.25 ) $ 0.35 Shares used in the calculation of earnings (loss) per share: Basic 284,202 283,418 282,992 284,086 Diluted 289,346 288,840 282,992 289,430 Dividends declared and paid per share $ 0.28 $ 0.28 $ 0.28 $ 0.28 (1) The fiscal quarter ended December 27, 2014, includes a goodwill impairment charge of $84.1 million , a Property, plant and equipment, impairment of $45.2 million and an IPR&D impairment of $8.9 million associated with the Sensing Solutions reporting unit. |
Nature of Operations Details (D
Nature of Operations Details (Details) | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Nature of Operations [Abstract] | |||
Number of weeks in current fiscal year | 364 days | 364 days | 364 days |
Summary of Significant Accoun46
Summary of Significant Accounting Policies Derivative Instsruments (Details) | 12 Months Ended |
Jun. 25, 2016 | |
Accounting Policies [Abstract] | |
Derivative, Remaining Maturity | 6 months |
Summary of Significant Accoun47
Summary of Significant Accounting Policies Property, Plant and Equipment (Details) | 12 Months Ended |
Jun. 25, 2016 | |
Building and Building Improvements [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment minimium useful life (in years) | 40 years |
Minimum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment minimium useful life (in years) | 2 years |
Maximum [Member] | Machinery and Equipment [Member] | |
Property, Plant and Equipment [Line Items] | |
Property, plant and equipment minimium useful life (in years) | 15 years |
Summary of Significant Accoun48
Summary of Significant Accounting Policies Revenue Recognition (Details) - Allowance for Sales Returns [Member] - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Valuation and Qualifying Accounts Disclosure [Line Items] | ||||
Returns and allowances reserve | $ 31,461 | $ 17,412 | $ 16,169 | $ 12,418 |
Estimated returns and allowances against revenues | 79,956 | 81,476 | 75,346 | |
Valuation Allowances and Reserves, Deductions | $ (65,907) | $ (80,233) | $ (71,595) |
Summary of Significant Accoun49
Summary of Significant Accounting Policies Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Related Party Transaction [Line Items] | |||
Revenue from Related Parties | $ 73.8 | $ 60.4 | $ 68.1 |
Summary of Significant Accoun50
Summary of Significant Accounting Policies Concentration of Credit Risk (Details) | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Avnet Electronics [Member] | Net sales revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 19.00% | 19.00% | 17.00% |
Avnet Electronics [Member] | Accounts receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 18.00% | 18.00% | |
Samsung [Member] | Net sales revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 14.00% | 15.00% | 20.00% |
Samsung [Member] | Accounts receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 18.00% | 20.00% | |
No other customer [Member] | Net sales revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 10.00% | 10.00% | 10.00% |
No other customer [Member] | Accounts receivable [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 10.00% | 10.00% | |
Distributors [Member] | Net sales revenue [Member] | |||
Concentration Risk [Line Items] | |||
Concentration risk | 38.00% |
Summary of Significant Accoun51
Summary of Significant Accounting Policies Prospective Adoption of New Accounting Pronouncements (Details) - USD ($) $ in Millions | Jun. 25, 2016 | Dec. 26, 2015 | Jun. 27, 2015 |
Item Effected [Line Items] | |||
Deferred Finance Cost, Decrease in Other Assets | $ 7.1 | $ 11.1 | |
Deferred Finance Cost, Decrease in Other Current Assets | 2.8 | 1.2 | |
Debt Instrument, Decrease in Long Term Debt | $ 9.9 | $ 12.3 | |
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 | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Inventory: | |||
Raw materials | $ 6,505 | $ 12,932 | |
Work-in-process | 148,762 | 199,716 | |
Finished goods | 72,662 | 75,826 | |
Inventory, Net | 227,929 | 288,474 | |
Inventory, Noncurrent | 12,300 | ||
Property and equipment: | |||
Land | 18,952 | 45,040 | |
Buildings and building improvements | 240,507 | 338,394 | |
Machinery and equipment | 1,370,322 | 1,970,819 | |
Property, plant and equipment, gross | 1,629,781 | 2,354,253 | |
Less accumulated depreciation | (937,230) | (1,263,514) | |
Property, plant and equipment, net | 692,551 | 1,090,739 | |
Depreciation expense | 177,200 | 209,000 | $ 160,700 |
Restructuring and Related Cost, Accelerated Depreciation | 54,600 | 51,500 | $ 0 |
Employee-related Liabilities, net | |||
Accrued Bonuses | 90,638 | 86,506 | |
Accrued Vacation | 30,753 | 36,906 | |
Accrued Salaries | 14,320 | 16,572 | |
Other Employee Related Liabilities | 14,230 | 25,136 | |
Accrued Employee Benefits | 4,748 | 6,007 | |
Other Employee Related Liabilities, Current | 12,009 | 10,233 | |
Employee-related Liabilities, Current | $ 166,698 | $ 181,360 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | ||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Available-for-sale securities, fair value disclosure | $ 125,439 | $ 75,154 | ||
Fair Value, Measurements, Nonrecurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | 0 | |||
Fair Value, Measurements, Recurring [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value | 0 | 0 | $ 3,215 | |
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Liability, Gain (Loss) Included in Earnings | 0 | 384 | ||
Business acquisition,cash paid for contingent consideration | 0 | (3,599) | ||
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, Assets and Liabilities Class [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency contract, asset, fair value disclosure | [1] | 70 | ||
Assets, fair value disclosure | 1,824,525 | 1,232,072 | ||
Liabilities, fair value disclosure | 1,327 | 613 | ||
Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value disclosure | [1] | 1,658,321 | 1,156,239 | |
Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Available-for-sale securities, fair value disclosure | [2] | 125,439 | 75,154 | |
Fair Value, Measurements, Recurring [Member] | Foreign Exchange Forward [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency contract, asset, fair value disclosure | [3] | 695 | 679 | |
Foreign currency contract, liability, fair value disclosure | [4] | 1,327 | 613 | |
Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency contract, asset, fair value disclosure | [3] | 40,000 | 0 | |
Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency contract, asset, fair value disclosure | [1] | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Assets and Liabilities Class [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Assets, fair value disclosure | 1,658,321 | 1,156,239 | ||
Liabilities, fair value disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value disclosure | [1] | 1,658,321 | 1,156,239 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Available-for-sale securities, fair value disclosure | [2] | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Exchange Forward [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency contract, asset, fair value disclosure | [3] | 0 | 0 | |
Foreign currency contract, liability, fair value disclosure | [4] | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency contract, asset, fair value disclosure | [3] | 0 | 0 | |
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency contract, asset, fair value disclosure | [1] | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Assets and Liabilities Class [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Assets, fair value disclosure | 166,204 | 75,833 | ||
Liabilities, fair value disclosure | 1,327 | 613 | ||
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value disclosure | [1] | 0 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Available-for-sale securities, fair value disclosure | [2] | 125,439 | 75,154 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Exchange Forward [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency contract, asset, fair value disclosure | [3] | 695 | 679 | |
Foreign currency contract, liability, fair value disclosure | [4] | 1,327 | 613 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency contract, asset, fair value disclosure | [3] | 40,000 | 0 | |
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency contract, asset, fair value disclosure | [1] | 70 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Assets and Liabilities Class [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Assets, fair value disclosure | 0 | 0 | ||
Liabilities, fair value disclosure | 0 | 0 | ||
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Money Market Funds [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Cash and cash equivalents, fair value disclosure | [1] | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | US Treasury Securities [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Available-for-sale securities, fair value disclosure | [2] | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Foreign Exchange Forward [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency contract, asset, fair value disclosure | [3] | 0 | 0 | |
Foreign currency contract, liability, fair value disclosure | [4] | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Common Stock [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency contract, asset, fair value disclosure | [3] | 0 | 0 | |
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | Certificates of Deposit [Member] | ||||
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | ||||
Foreign currency contract, asset, fair value disclosure | [1] | $ 0 | $ 0 | |
[1] | Included in Cash and cash equivalents in the accompanying Consolidated Balance Sheets. | |||
[2] | Included in Short-term investments in the accompanying Consolidated Balance Sheets. | |||
[3] | Included in Other current assets in the accompanying Consolidated Balance Sheets. | |||
[4] | Included in Accrued expenses in the accompanying Consolidated Balance Sheets. |
Financial Instruments, Short-te
Financial Instruments, Short-term Investments (Details) - USD ($) $ in Thousands | Jun. 25, 2016 | Jun. 27, 2015 |
Available-for-sale Securities [Abstract] | ||
Amortized Cost Basis | $ 124,950 | $ 75,022 |
Gross Unrealized Gains | 489 | 132 |
Gross Unrealized Loss | 0 | 0 |
Estimated Fair Value | 125,439 | 75,154 |
US Treasury Securities [Member] | ||
Available-for-sale Securities [Abstract] | ||
Amortized Cost Basis | 124,950 | 75,022 |
Gross Unrealized Gains | 489 | 132 |
Gross Unrealized Loss | 0 | 0 |
Estimated Fair Value | $ 125,439 | $ 75,154 |
Financial Instruments, Balance
Financial Instruments, Balance Sheet Location (Details) - USD ($) $ in Millions | Jun. 25, 2016 | Jun. 27, 2015 |
Forward contracts held to purchase U.S. dollars [Member] | Designated as hedging instruments [Member] | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of total derivatives | $ 68 | $ 54.2 |
Forward contracts held to purchase U.S. dollars [Member] | Not designated as hedging instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of total derivatives | 25.4 | 31.1 |
Forward contracts held to sell U.S. dollars [Member] | Designated as hedging instruments [Member] | Cash Flow Hedging [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of total derivatives | 2.6 | 3.7 |
Forward contracts held to sell U.S. dollars [Member] | Not designated as hedging instruments [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of total derivatives | $ 24.6 | $ 28.2 |
Financial Instruments, Long-ter
Financial Instruments, Long-term Debt (Details) | 12 Months Ended | |||||
Jun. 25, 2016USD ($) | Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($) | Jun. 27, 2014USD ($) | Dec. 28, 2013USD ($) | Mar. 30, 2013USD ($) | |
Debt Instrument [Line Items] | ||||||
Debt, Long-term and Short-term, Combined Amount | $ 1,250,000,000 | $ 1,001,024,000 | ||||
Short-term Debt | (249,717,000) | (1,024,000) | ||||
Short-term Debt, Fair Value | 250,000,000 | 0 | ||||
Long-term Debt, Current Maturities | (1,024,000) | |||||
Debt Issuance Cost | (10,193,000) | (12,313,000) | ||||
Long-term debt, excluding current maturities | $ 990,090,000 | 987,687,000 | ||||
Stated interest rate of the Notes | 1.69% | |||||
Debt Instrument, Redemption Price, Percentage of Principal Amount Redeemed | 101.00% | |||||
Interest expense relating to the Notes | $ 29,400,000 | 29,400,000 | $ 24,700,000 | |||
Amortization of Debt Discount (Premium) | 1,900,000 | 2,000,000 | 1,100,000 | |||
Estimated fair value of long-term debt | 1,027,000,000 | |||||
Interest Expense | 32,700,000 | 32,500,000 | $ 27,000,000 | |||
Fixed Rate Note Due November 2018 at 2 Point 50 Percent [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | 500,000,000 | 500,000,000 | $ 500,000,000 | |||
Net Proceeds From Issuance of Long Term Debt 4 | $ 494,500,000 | |||||
Stated interest rate of the Notes | 2.50% | |||||
Effective interest rate of the Notes | 2.60% | |||||
Fxed Rate Note Due March 2023 at 3 Point 375 Percent [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 500,000,000 | 500,000,000 | $ 500,000,000 | |||
proceeds from issuance of long term debt 3 | $ 490,000,000 | |||||
Effective interest rate of the Notes | 3.50% | |||||
Fixed Rate Note Due March 2023 at 3 Point 375 Percent [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Stated interest rate of the Notes | 3.375% | |||||
Term Fixed Rate Notes Due March 2013 To September 2015 At 2 Point 0 To 2 Point 5 Percent [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Debt Instrument, Interest Rate, Stated Percentage Rate Range, Minimum | 2.00% | |||||
Amortizing Floating Rate Notes (EURIBOR PLUS 1.5%) Due Up To June 2014 [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Long-term Debt | $ 0 | $ 1,024,000 | ||||
Debt Instrument, Basis Spread on Variable Rate | 1.50% | |||||
Debt Instrument, Description of Variable Rate Basis | EURIBOR | |||||
Unsecured Revolving Credit Facility [Member] | ||||||
Debt Instrument [Line Items] | ||||||
Line of Credit Facility, Maximum Borrowing Capacity | $ 350,000,000 | |||||
Debt Instrument, Covenant Requirement, Ratio of Debt to EBITDA | 3 | |||||
Debt Instrument, Convenant Requirement, minimum interest coverage ratio | 3.5 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 69,701 | $ 79,491 | $ 85,452 |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | |||
Less: Income tax effect | 11,314 | 14,131 | 15,245 |
Net stock-based compensation expense | 58,387 | 65,360 | 70,207 |
Cost of goods sold [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 8,874 | 11,874 | 12,248 |
Research and development expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 36,386 | 42,057 | 45,676 |
General and Administrative Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 24,441 | 25,560 | 27,528 |
Employee Stock Option [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 7,349 | 10,037 | 15,812 |
Employee Stock Option [Member] | Cost of goods sold [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 837 | 1,391 | 1,650 |
Employee Stock Option [Member] | Research and development expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 3,469 | 4,783 | 8,676 |
Employee Stock Option [Member] | General and Administrative Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 3,043 | 3,863 | 5,486 |
Restricted stock units [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 52,608 | 59,539 | 59,748 |
Restricted stock units [Member] | Cost of goods sold [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 5,697 | 8,226 | 8,466 |
Restricted stock units [Member] | Research and development expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 27,784 | 31,899 | 31,548 |
Restricted stock units [Member] | General and Administrative Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 19,127 | 19,414 | 19,734 |
ESP Plan [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 9,744 | 9,915 | 9,892 |
ESP Plan [Member] | Cost of goods sold [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 2,340 | 2,257 | 2,132 |
ESP Plan [Member] | Research and development expenses [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 5,133 | 5,375 | 5,452 |
ESP Plan [Member] | General and Administrative Expense [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | 2,271 | 2,283 | 2,308 |
Market Stock Units [Member] | |||
Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Stock-based compensation expense | $ 2,800 | $ 1,700 | $ 1,500 |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Option Plans (Details) | 12 Months Ended | |||
Jun. 25, 2016USD ($)plans$ / sharesshares | Jun. 27, 2015$ / sharesshares | Jun. 28, 2014$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, ending | 5,935,079 | |||
Options exercisable, number of shares | 3,251,896 | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number Of Stock Plans | plans | 1 | |||
Expected holding period (in years) | [1] | 4 years 9 months 18 days | 5 years 3 months 18 days | |
Risk Free Interest Rate | [1] | 1.60% | 1.40% | |
Expected stock price volatility | [1] | 26.70% | 34.60% | |
Dividend yield | [1] | 3.20% | 3.20% | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, beginning | 10,173,016 | 16,163,644 | 20,081,339 | |
Options Granted | 0 | 63,584 | 3,638,729 | |
Options Exercised | (3,242,881) | (3,168,704) | (3,568,775) | |
Options cancelled | (995,056) | (2,885,508) | (3,987,649) | |
Options outstanding, ending | 5,935,079 | 10,173,016 | 16,163,644 | |
Options outstanding, weighted average exercise price, beginning | $ / shares | $ 25.83 | $ 25.74 | $ 26 | |
Options granted, weighted average exercise price | $ / shares | 0 | 32.22 | 27.30 | |
Options exercised, weighted average exercise price | $ / shares | 25.05 | 18.39 | 18.60 | |
Options cancelled, weighted average exercise price | $ / shares | 32.67 | 33.62 | 34.86 | |
Options outstanding, weighted average exercise price, ending | $ / shares | $ 25.11 | 25.83 | 25.74 | |
Options outstanding, weighted average remaining contractual term (in years) | 3 years | |||
Options outstanding, aggregate intrinsic value | $ | [2] | $ 71,297,014 | ||
Options exercisable, number of shares | 3,251,896 | |||
Options exercisable, weighted average exercise price | $ / shares | $ 22.69 | |||
Options exercisable, weighted average remaining contractual term (in years) | 2 years 3 months 18 days | |||
Options exercisable, aggregate intrinsic value | $ | [2] | $ 46,799,932 | ||
Options vested and expected to vest, number of shares | 5,794,417 | |||
Options vested and expected to vest, weighted average exercise price | $ / shares | $ 25.02 | |||
Options vested and expected to vest, weighted average remaining contractual term (in years) | 3 years | |||
Options vested and expected to vest, aggregate intrinsic value | $ | [2] | $ 69,869,048 | ||
Equity Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Options granted, weighted average fair value of stock options | $ / shares | $ 5.56 | $ 7.36 | ||
$12.00 -$20.00 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, ending | 1,068,741 | |||
Options outstanding, weighted average exercise price, ending | $ / shares | $ 17.41 | |||
Options outstanding, weighted average remaining contractual term (in years) | 1 year 2 months 12 days | |||
Options exercisable, number of shares | 1,021,225 | |||
Options exercisable, weighted average exercise price | $ / shares | $ 17.32 | |||
$20.01 - $30.00 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, ending | 4,733,577 | |||
Options outstanding, weighted average exercise price, ending | $ / shares | $ 26.63 | |||
Options outstanding, weighted average remaining contractual term (in years) | 2 years 8 months 12 days | |||
Options exercisable, number of shares | 2,186,711 | |||
Options exercisable, weighted average exercise price | $ / shares | $ 25 | |||
$30.01 - $40.00 [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||||
Options outstanding, ending | 132,761 | |||
Options outstanding, weighted average exercise price, ending | $ / shares | $ 32.82 | |||
Options outstanding, weighted average remaining contractual term (in years) | 4 years | |||
Options exercisable, number of shares | 43,960 | |||
Options exercisable, weighted average exercise price | $ / shares | $ 32.29 | |||
Volterra [Member] | Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Expected holding period (in years) | 3 years 9 months 18 days | |||
Risk Free Interest Rate | 1.00% | |||
Expected stock price volatility | 27.50% | |||
Dividend yield | 3.40% | |||
[1] | Table excludes impact from assumptions used in valuing the Volterra substitute options granted on October 1, 2013 based on an expected holding period of 3.8 years, risk-free interest rate of 1.0%, expected stock price volatility of 27.5% and dividend yield of 3.4%. | |||
[2] | Aggregate intrinsic value represents the difference between the exercise price and the closing price per share of the Company's common stock on June 24, 2016, the last business day preceding the fiscal year end, multiplied by the number of options outstanding, exercisable or vested and expected to vest as of JuneĀ 25, 2016. |
Stock-Based Compensation Outsta
Stock-Based Compensation Outstanding Options (Details) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period [Abstract] | ||||
Options outstanding, number of shares | 5,935,079 | |||
Options exercisable, number of shares | 3,251,896 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Exercises in Period, Intrinsic Value | $ 39.8 | $ 45.6 | $ 47.2 | |
$12.00 -$20.00 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise prices, lower | $ 12 | |||
Range of exercise prices, upper | $ 20 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period [Abstract] | ||||
Options outstanding, number of shares | 1,068,741 | |||
Options outstanding, weighted average remaining contractual term (in years) | 1 year 2 months 12 days | |||
Options outstanding, weighted average exercise price | $ 17.41 | |||
Options exercisable, number of shares | 1,021,225 | |||
Options exercisable, weighted average exercise price | $ 17.32 | |||
$20.01 - $30.00 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise prices, lower | 20.01 | |||
Range of exercise prices, upper | $ 30 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period [Abstract] | ||||
Options outstanding, number of shares | 4,733,577 | |||
Options outstanding, weighted average remaining contractual term (in years) | 2 years 8 months 12 days | |||
Options outstanding, weighted average exercise price | $ 26.63 | |||
Options exercisable, number of shares | 2,186,711 | |||
Options exercisable, weighted average exercise price | $ 25 | |||
$30.01 - $40.00 [Member] | ||||
Share-based Compensation, Shares Authorized under Stock Option Plans, Exercise Price Range [Line Items] | ||||
Range of exercise prices, lower | 30.01 | |||
Range of exercise prices, upper | $ 40 | |||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period [Abstract] | ||||
Options outstanding, number of shares | 132,761 | |||
Options outstanding, weighted average remaining contractual term (in years) | 4 years | |||
Options outstanding, weighted average exercise price | $ 32.82 | |||
Options exercisable, number of shares | 43,960 | |||
Options exercisable, weighted average exercise price | $ 32.29 | |||
Employee Stock Option [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Forfeitures and Expirations in Period [Abstract] | ||||
Options outstanding, number of shares | 5,935,079 | 10,173,016 | 16,163,644 | 20,081,339 |
Options outstanding, weighted average remaining contractual term (in years) | 3 years | |||
Options outstanding, weighted average exercise price | $ 25.11 | $ 25.83 | $ 25.74 | $ 26 |
Options exercisable, number of shares | 3,251,896 | |||
Options exercisable, weighted average exercise price | $ 22.69 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 7.1 | |||
Share Based Compensation Arrangement by Share Based Payment Award, Options, Nonvested, Number | 2,700,000 | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 2 months 12 days |
Stock-Based Compensation Restri
Stock-Based Compensation Restricted Stock Units (Details) - Restricted stock units [Member] - USD ($) | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Grants in Period, Weighted Average Grant Date Fair Value | $ 29.75 | $ 27.92 | $ 26.60 |
Outstanding and expected to vest RSUs [Roll Forward] | |||
Restricted stock units outstanding, beginning | 7,129,985 | 7,880,997 | 7,965,532 |
Restricted stock units granted | 2,905,973 | 3,178,117 | 3,916,111 |
Restricted stock units released | (2,049,430) | (2,589,639) | (2,904,787) |
Restricted stock units cancelled | (1,365,715) | (1,339,490) | (1,095,859) |
Restricted stock units outstanding, ending | 6,620,813 | 7,129,985 | 7,880,997 |
Restricted Stock Units Weighted Average Remaining Contractual Terms (in years) | 2 years 7 months 6 days | ||
Restricted stock units outstanding, aggregate intrinsic value | $ 246,061,953 | ||
Restricted stock units expected to vest, number of shares | 5,588,721 | ||
Share Based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Expected to Vest, Weighted Average Remaining Contractual Term 1 | 2 years 6 months | ||
Restricted stock units expected to vest, aggregate intrinsic value | $ 207,229,781 | ||
Restricted stock unit shares withheld for withholding tax | 24,100,000 | ||
Unrecognized compensation costs related to unvested RSUs | $ 131,300,000 | ||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 7 months 6 days |
Stock-Based Compensation Market
Stock-Based Compensation Market Stock Units (Details) - USD ($) | 12 Months Ended | |||||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | ||||
Market Stock Units [Member] | ||||||
Outstanding and expected to vest MSUs [Roll Forward] | ||||||
Market stock units outstanding, beginning | 414,840 | 120,000 | [1] | 60,000 | [1] | |
Market Stock units Granted | 361,684 | 423,044 | 60,000 | |||
Market stock units released | 0 | (42,476) | 0 | |||
Market stock units cancelled | (102,992) | (85,728) | 0 | |||
Market stock units outstanding, ending | 673,532 | 414,840 | 120,000 | [1] | ||
Market Stock Units Weighted Average Remaining Contractual Terms | 2 years 10 months 24 days | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Intrinsic Value, Amount Per Share | [2] | $ 24,974,567 | ||||
Market stock units expected to vest, number of shares | 547,546 | |||||
Share Based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options, Expected to Vest, Weighted Average Remaining Contractual Term 1 | 2 years 10 months 24 days | |||||
Share Based Compensation Arrangement by Share Based Payment Award, Equity Instruments Other than Options and RSUs, Expected to Vest, Aggregate Intrinsic Value | [2] | $ 20,303,011 | ||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 11,900,000 | |||||
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number | 700,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 2 years 10 months 24 days | |||||
Employee Stock Option [Member] | ||||||
Outstanding and expected to vest MSUs [Roll Forward] | ||||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 7,100,000 | |||||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized, Period for Recognition | 1 year 2 months 12 days | |||||
Common Stock, Capital Shares Reserved for Future Issuance | 28,000,000 | |||||
[1] | Reflects shares previously granted to the Companyās Chief Executive Officer only. | |||||
[2] | Aggregate intrinsic value for MSUs represents the closing price per share of the Companyās common stock on June 24, 2016, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of JuneĀ 25, 2016. |
Stock-Based Compensation Employ
Stock-Based Compensation Employee Stock Purchase Plan (Details) $ in Thousands, shares in Millions | 1 Months Ended | 12 Months Ended | ||
Sep. 30, 2007 | Jun. 25, 2016USD ($)plansshares | Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Consideration for common stock issued | $ 33,975 | $ 40,951 | $ 42,809 | |
Options settlement, percent of daily close price | 10.00% | |||
Reclassification of accrued salaries to additional paid-in capital | $ 7,800 | |||
ESP Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number Of Stock Plans | plans | 1 | |||
Common stock shares issued | shares | 1.3 | |||
Consideration for common stock issued | $ 34,000 | |||
Shares for future issuance | shares | 6.1 | |||
Expected holding period (in years) | 6 months | 6 months | 6 months | |
Risk Free Interest Rate | 0.10% | |||
Employee Service Share-based Compensation, Nonvested Awards, Compensation Cost Not yet Recognized | $ 5,500 | |||
Minimum [Member] | ESP Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk Free Interest Rate | 0.10% | 0.10% | 0.10% | |
Expected stock price volatility | 21.80% | 20.70% | 20.70% | |
Dividend yield | 3.30% | 3.30% | 3.10% | |
Maximum [Member] | ESP Plan [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Risk Free Interest Rate | 0.50% | 0.10% | 0.20% | |
Expected stock price volatility | 33.10% | 26.40% | 25.50% | |
Dividend yield | 3.60% | 3.70% | 3.70% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |||||||||
Numerator for basic earnings per share and diluted earnings per share | |||||||||||||||||||
Net income | $ 92,339 | [1] | $ 139,810 | [1] | $ 67,469 | [1] | $ (72,143) | [1] | $ 98,659 | [2] | $ 79,433 | [2] | $ (72,034) | [2] | $ 99,980 | [2] | $ 227,475 | $ 206,038 | $ 354,810 |
Denominator for basic earnings per share | 285,354 | 285,854 | 285,526 | 284,588 | 284,202 | 283,418 | 282,992 | 284,086 | 285,081 | 283,675 | 283,344 | ||||||||
Effect of dilutive securities | |||||||||||||||||||
Stock options, RSUs, and ESPP | 4,398 | 5,274 | 5,764 | ||||||||||||||||
Denominator for diluted earnings per share | 288,544 | 289,783 | 290,521 | 284,588 | 289,346 | 288,840 | 282,992 | 289,430 | 289,479 | 288,949 | 289,108 | ||||||||
Basic net income per share | $ 0.32 | $ 0.49 | $ 0.24 | $ (0.25) | $ 0.35 | $ 0.28 | $ (0.25) | $ 0.35 | $ 0.80 | $ 0.73 | $ 1.25 | ||||||||
Diluted net income per share | $ 0.32 | $ 0.48 | $ 0.23 | $ (0.25) | $ 0.34 | $ 0.28 | $ (0.25) | $ 0.35 | $ 0.79 | $ 0.71 | $ 1.23 | ||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||||||||||||||||||
Antidilutive securities excluded from computation of earnings per share, amount | 500 | 3,600 | 9,400 | ||||||||||||||||
[1] | The fiscal quarter ended September 26, 2015, includes 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 fiscal quarter ended March 26, 2016, includes a gain of $58.9 million associated to the sale of the Company's energy metering business. | ||||||||||||||||||
[2] | The fiscal quarter ended December 27, 2014, includes a goodwill impairment charge of $84.1 million, a Property, plant and equipment, impairment of $45.2 million and an IPR&D impairment of $8.9 million associated with the Sensing Solutions reporting unit. |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Sep. 26, 2015 | Dec. 27, 2014 | Dec. 27, 2014 | Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Goodwill [Line Items] | ||||||
Impairment of Long-Lived Assets to be Disposed of | $ 157,700 | $ 160,153 | $ 67,010 | $ 11,644 | ||
Impairment of Intangible Assets (Excluding Goodwill) | $ 8,900 | |||||
Goodwill [Roll Forward] | ||||||
Balance | $ 511,647 | $ 596,637 | 511,647 | 596,637 | ||
Goodwill, Adjustments | (866) | |||||
Goodwill, Impairment Loss | $ (84,100) | (84,124) | ||||
Goodwill, Divestitures | (20,999) | |||||
Balance | $ 490,648 | $ 511,647 | $ 596,637 | |||
Sensing Solutions [Member] | ||||||
Goodwill [Line Items] | ||||||
Impairment of Long-Lived Assets to be Disposed of | $ 45,200 |
Goodwill and Intangible Asset65
Goodwill and Intangible Assets, Intangible Assets (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Original Cost | $ 546,919 | $ 567,192 | |
Accumulated Amortization | 431,979 | 364,742 | |
Net | 114,940 | 202,450 | |
IPR&D | 31,600 | 59,202 | |
Gross Intangible Assets | 578,519 | 626,394 | |
Total purchased intangible assets | 146,540 | 261,652 | |
Amortization expense of intangible assets, cost of goods sold | 55,031 | 74,366 | $ 64,483 |
Intangible asset amortization | 12,205 | 16,077 | 17,690 |
Amortization | 67,236 | 90,443 | 82,173 |
Future amortization expense [Abstract] | |||
2,017 | 49,090 | ||
2,018 | 41,564 | ||
2,019 | 13,278 | ||
2,020 | 3,358 | ||
2,021 | 2,888 | ||
Thereafter | 4,762 | ||
Net | 114,940 | 202,450 | |
Research and Development in Process | 27,602 | 8,900 | $ 2,580 |
Intellectual property [Member] | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Original Cost | 420,285 | 435,962 | |
Accumulated Amortization | 331,321 | 276,175 | |
Net | 88,964 | 159,787 | |
Future amortization expense [Abstract] | |||
Net | 88,964 | 159,787 | |
Customer relationships [Member] | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Original Cost | 115,634 | 120,230 | |
Accumulated Amortization | 92,744 | 82,774 | |
Net | 22,890 | 37,456 | |
Future amortization expense [Abstract] | |||
Net | 22,890 | 37,456 | |
Trade Names [Member] | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Original Cost | 8,500 | 8,500 | |
Accumulated Amortization | 6,486 | 4,886 | |
Net | 2,014 | 3,614 | |
Future amortization expense [Abstract] | |||
Net | $ 2,014 | 3,614 | |
Minimum [Member] | Intellectual property [Member] | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Definite lived intangible assets, useful life, minimum | 1 year | ||
Minimum [Member] | Customer relationships [Member] | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Definite lived intangible assets, useful life, minimum | 3 years | ||
Maximum [Member] | Intellectual property [Member] | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Definite lived intangible assets, useful life, minimum | 10 years | ||
Maximum [Member] | Customer relationships [Member] | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Definite lived intangible assets, useful life, minimum | 10 years | ||
In Process Research and Development [Member] | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
IPR&D | $ 31,600 | 59,202 | |
Trade Names [Member] | Minimum [Member] | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Definite lived intangible assets, useful life, minimum | 1 year | ||
Trade Names [Member] | Maximum [Member] | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Definite lived intangible assets, useful life, minimum | 4 years | ||
Patents [Member] | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Definite lived intangible assets, useful life, minimum | 5 years | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Original Cost | $ 2,500 | 2,500 | |
Accumulated Amortization | 1,428 | 907 | |
Net | 1,072 | 1,593 | |
Future amortization expense [Abstract] | |||
Net | 1,072 | $ 1,593 | |
Energy Metering Business [Member] | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Accumulated Amortization | $ 20,300 |
Acquisitions (Details)
Acquisitions (Details) $ / shares in Units, $ in Thousands | 6 Months Ended | 12 Months Ended | |||
Dec. 28, 2013USD ($) | Jun. 25, 2016USD ($)acquisitions | Jun. 27, 2015USD ($)acquisitions | Jun. 28, 2014USD ($)acquisitions | Dec. 27, 2014$ / shares | |
Business Acquisition [Line Items] | |||||
Number of Businesses Acquired | acquisitions | 0 | 0 | 2 | ||
Business Combination, Acquisition Related Costs | $ 0 | $ 0 | $ 6,983 | ||
Goodwill acquired | $ 490,648 | $ 511,647 | 596,637 | ||
Business Acquisition, Percentage of Voting Interests Acquired | 100.00% | 100.00% | |||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Business Acquisition, Share Price | $ / shares | $ 23 | ||||
Volterra [Member] | |||||
Business Acquisition [Line Items] | |||||
Cash paid | $ 593,250 | ||||
Business Acquisition, Cash Paid for Employee's Vested Options | 21,756 | ||||
Business Combination, Consideration Transferred | 615,006 | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net | 158,710 | ||||
Amortizable intangible assets acquired | 226,900 | ||||
In-process research and development acquired | 56,200 | ||||
Goodwill acquired | 174,894 | ||||
Business Combination, Consideration Transferred, Equity Interests Issued and Issuable | (1,698) | ||||
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Net [Abstract] | |||||
Business Acquisition, Purchase Price Allocation, Assets Acquired (Liabilities Assumed), Net | 615,006 | ||||
Volterra [Member] | Intellectual property [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortizable intangible assets acquired | $ 192,500 | ||||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 4 years 10 months 24 days | ||||
Volterra [Member] | Customer relationships [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortizable intangible assets acquired | $ 24,600 | ||||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 9 years 7 months 6 days | ||||
Volterra [Member] | Trade Names [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortizable intangible assets acquired | $ 6,400 | ||||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 4 years | ||||
Volterra [Member] | Backlog [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortizable intangible assets acquired | $ 900 | ||||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 4 months 24 days | ||||
Volterra [Member] | Patents [Member] | |||||
Business Acquisition [Line Items] | |||||
Amortizable intangible assets acquired | $ 2,500 | ||||
Acquired Finite-lived Intangible Asset, Weighted Average Useful Life | 4 years 9 months 18 days | ||||
Other Acquisition [Member] | |||||
Business Acquisition [Line Items] | |||||
Business Combination, Consideration Transferred | $ 6,100 | ||||
Goodwill acquired | $ 500 |
Impairment of Long-Lived Asse67
Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||
Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Dec. 27, 2014 | Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Long Lived Assets Held-for-sale [Line Items] | |||||||
Impairment of Long-Lived Assets to be Disposed of | $ 157,700 | $ 160,153 | $ 67,010 | $ 11,644 | |||
Gain (Loss) on Disposition of Property Plant Equipment | $ (2,283) | (419) | $ (2,187) | ||||
Energy Metering Business [Member] | |||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||
Gain (Loss) on Disposition of Business | $ 58,900 | ||||||
wafter manufacturing fab [Member] | |||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||
Proceeds from Sale of Other Property, Plant, and Equipment | 30,000 | ||||||
Gain (Loss) on Disposition of Property Plant Equipment | 1,600 | ||||||
Inventory on hand [Member] | |||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||
Proceeds from Sale of Other Property, Plant, and Equipment | $ 10,000 | ||||||
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 | ||||||
Other [Member] | |||||||
Long Lived Assets Held-for-sale [Line Items] | |||||||
Impairment of Long-Lived Assets to be Disposed of | $ 21,800 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 25, 2016USD ($)customers | Jun. 25, 2016USD ($) | Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($) | |
Segment Reporting Information [Line Items] | ||||
Number of Reportable Segments | customers | 1 | |||
Revenues | $ 2,194,719 | $ 2,306,864 | $ 2,453,663 | |
Long-Lived Assets | $ 692,551 | 692,551 | 1,090,739 | |
United States [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 246,969 | 281,374 | 320,282 | |
Long-Lived Assets | 423,653 | 423,653 | 783,148 | |
CHINA [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 837,345 | 947,231 | 997,706 | |
Rest of Asia [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 676,116 | 665,388 | 748,320 | |
Europe [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 377,938 | 347,275 | 324,867 | |
Rest of World [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenues | 56,351 | 65,596 | $ 62,488 | |
Long-Lived Assets | 127,329 | 127,329 | 141,186 | |
Philippines [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Long-Lived Assets | $ 141,569 | $ 141,569 | $ 166,405 |
Commitments and Contingencies C
Commitments and Contingencies Commitments (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | ||
Future Minimum Payments for Commitments [Line Items] | ||||
Short-term Debt | $ 249,717 | $ 1,024 | ||
Rental expense | 10,000 | 9,000 | $ 10,800 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||||
Product Warranty Accrual | 8,606 | 13,436 | $ 21,296 | |
Product Warranty Accrual, Warranties Issued | 3,518 | 1,665 | ||
Product Warranty Accrual, Payments | (9,300) | (8,686) | ||
Product Warranty Accrual, Preexisting, Increase (Decrease) | 952 | (839) | ||
Product Warranty Accrual, Current | 8,606 | 9,136 | ||
Product Warranty Accrual, Noncurrent | 0 | $ 4,300 | ||
Future Minimium Payments [Member] | ||||
Future Minimum Payments for Commitments [Line Items] | ||||
Operating lease obligations | [1] | 53,568 | ||
Short-term Debt | [1] | 250,000 | ||
Long-term Debt | [2] | 1,000,000 | ||
Interest payments associated with long-term debt obligations | [3] | 147,388 | ||
Capital equipment and inventory related purchase obligations | [4] | 725,987 | ||
Future minimum payments for all commitments | 2,176,943 | |||
Obligations Due in next twelve months [Member] | ||||
Future Minimum Payments for Commitments [Line Items] | ||||
Operating lease obligations | [1] | 8,778 | ||
Short-term Debt | [1] | 250,000 | ||
Long-term Debt | [2] | 0 | ||
Interest payments associated with long-term debt obligations | [3] | 33,699 | ||
Capital equipment and inventory related purchase obligations | [4] | 100,875 | ||
Future minimum payments for all commitments | 393,352 | |||
Obligations Due in two years [Member] | ||||
Future Minimum Payments for Commitments [Line Items] | ||||
Operating lease obligations | [1] | 6,827 | ||
Short-term Debt | [1] | 0 | ||
Long-term Debt | [2] | 0 | ||
Interest payments associated with long-term debt obligations | [3] | 29,375 | ||
Capital equipment and inventory related purchase obligations | [4] | 87,760 | ||
Future minimum payments for all commitments | 123,962 | |||
Obligations Due in three years [Member] | ||||
Future Minimum Payments for Commitments [Line Items] | ||||
Operating lease obligations | [1] | 5,106 | ||
Short-term Debt | [1] | 0 | ||
Long-term Debt | [2] | 500,000 | ||
Interest payments associated with long-term debt obligations | [3] | 21,736 | ||
Capital equipment and inventory related purchase obligations | [4] | 75,285 | ||
Future minimum payments for all commitments | 602,127 | |||
Obligations Due in four years [Member] | ||||
Future Minimum Payments for Commitments [Line Items] | ||||
Operating lease obligations | [1] | 4,907 | ||
Short-term Debt | [1] | 0 | ||
Long-term Debt | [2] | 0 | ||
Interest payments associated with long-term debt obligations | [3] | 16,875 | ||
Capital equipment and inventory related purchase obligations | [4] | 74,467 | ||
Future minimum payments for all commitments | 96,249 | |||
Obligations Due in five years [Member] | ||||
Future Minimum Payments for Commitments [Line Items] | ||||
Operating lease obligations | [1] | 4,409 | ||
Short-term Debt | [1] | 0 | ||
Long-term Debt | [2] | 0 | ||
Interest payments associated with long-term debt obligations | [3] | 16,875 | ||
Capital equipment and inventory related purchase obligations | [4] | 62,958 | ||
Future minimum payments for all commitments | 84,242 | |||
More than 5 years [Member] | ||||
Future Minimum Payments for Commitments [Line Items] | ||||
Operating lease obligations | [1] | 23,541 | ||
Short-term Debt | [1] | 0 | ||
Long-term Debt | [2] | 500,000 | ||
Interest payments associated with long-term debt obligations | [3] | 28,828 | ||
Capital equipment and inventory related purchase obligations | [4] | 324,642 | ||
Future minimum payments for all commitments | $ 877,011 | |||
[1] | The Company leases some facilities under non-cancelable operating lease agreements that expire at various dates through 2030. | |||
[2] | Long-term debt represents amounts primarily due for the Company's long-term notes. | |||
[3] | Interest payments calculated based on contractual payment requirements under the debt agreements | |||
[4] | The Company orders some materials and supplies in advance or with minimum purchase quantities. The Company is obligated to pay for the materials and supplies when received. Additionally, in 2016 the Company entered into a long term supply agreement with the semiconductor foundry TowerJazz to supply finished wafers on existing Maxim processes and products which contains minimum purchase requirements. |
Comprehensive Income Accumulate
Comprehensive Income Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), net of tax | $ (14,219) | $ (17,234) | $ (17,173) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (841) | (6,239) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 4,109 | 7,255 | |
Other Comprehensive Income (Loss), Tax | (253) | (1,077) | |
Other Comprehensive Income (Loss), Net of Tax | 3,015 | (61) | (1,426) |
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) | (6,280) | (5,753) |
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 | (527) | |
Other Comprehensive Income (Loss), Net of Tax | 0 | (527) | |
Accumulated Defined Benefit Plans Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), net of tax | (6,800) | (10,004) | (10,373) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 3,659 | 827 | |
Other Comprehensive Income (Loss), Tax | (455) | (458) | |
Other Comprehensive Income (Loss), Net of Tax | 3,204 | 369 | |
Accumulated Translation Adjustment [Member] | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Accumulated other comprehensive income (loss), net of tax | (1,136) | (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 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 | (492) | 53 | (11) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | (1,197) | (6,272) | |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 450 | 6,428 | |
Other Comprehensive Income (Loss), Tax | 202 | (92) | |
Other Comprehensive Income (Loss), Net of Tax | (545) | 64 | |
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 | 489 | 133 | $ 100 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 356 | 33 | |
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 | $ 356 | $ 33 |
Common Stock Repurchases (Detai
Common Stock Repurchases (Details) - USD ($) $ in Thousands, shares in Millions | 12 Months Ended | |||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | Jul. 31, 2013 | |
Stock repurchase program, authorized amount | $ 1,000,000 | |||
Shares of common stock repurchased | 6.8 | 6.2 | 10.4 | |
Value of common stock repurchased | $ 237,086 | $ 195,088 | $ 305,314 | |
Stock repurchase program, remaining authorized amount | $ 329,700 |
Interest and Other Income (Ex72
Interest and Other Income (Expense) (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Other Income and Expenses [Abstract] | |||
Interest Income (Expense), Net | $ (29,757) | $ (31,545) | $ (26,428) |
Other Income (Expense), Net | 962 | 40,435 | 13,363 |
Other Nonoperating Income (Expense) | (28,795) | 8,890 | (13,065) |
Interest expense relating to the Notes | 29,400 | 29,400 | 24,700 |
Amortization of Debt Discount (Premium) | $ 1,900 | 2,000 | $ 1,100 |
Net Gain (Loss) on Sale of Business | 35,800 | ||
Proceeds from Divestiture of Businesses | $ 39,500 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Income Tax Contingency [Line Items] | |||
Income (Loss) from Continuing Operations before Income Taxes, Domestic | $ (48,985) | $ 68,289 | $ 87,630 |
Pretax income (loss) from foreign subsidiaries | 334,039 | 177,881 | 321,596 |
Income before provision for income taxes | 285,054 | 246,170 | 409,226 |
Federal | |||
Current | 98,810 | 108,736 | 93,012 |
Deferred | (52,240) | (74,190) | (42,875) |
State | |||
Current | 1,808 | 3,791 | 2,676 |
Deferred | (2,406) | (3,269) | (1,465) |
Foreign | |||
Current | 10,278 | 8,294 | 6,692 |
Deferred | 1,329 | (3,230) | (3,624) |
Total income tax expense (benefit) | 57,579 | $ 40,132 | $ 54,416 |
Indefinitely reinvested earnings from foreign subsidiaries | 907,500 | ||
Unrecognized deferred tax liability on indefinitely reinvested earnings | $ 290,000 |
Income Taxes Effective Income T
Income Taxes Effective Income Tax Rate Reconciliation (Details) | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal statutory rate | 35.00% | 35.00% | 35.00% |
State tax, net of federal benefit | 0.60% | 0.40% | (0.10%) |
General business credits | (2.80%) | (2.80%) | (0.90%) |
Foreign earnings and losses taxed or benefitted at different rates | 21.70% | 24.60% | 19.10% |
Stock-based compensation | 4.70% | 5.90% | 3.90% |
Effective Income Tax Rate Reconciliation, Fixed Assets Tax Basis Adjustments | 0.00% | 0.00% | (8.40%) |
Interest accrual for unrecognized tax benefits | 3.20% | 2.60% | 1.10% |
Effective Income Tax Rate Reconciliation, Non-deductible Goodwill, Percent | 2.50% | 0.00% | 0.00% |
Other | (0.10%) | 0.60% | 1.60% |
Income tax rate | 20.20% | 16.30% | 13.30% |
Income Taxes Deferred Tax Asset
Income Taxes Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Jun. 25, 2016 | Jun. 27, 2015 | |
Deferred tax assets: [Abstract] | ||
Distributor related accruals and sales return and allowance accruals | $ 23,482 | $ 15,966 |
Accrued compensation | 39,979 | 44,961 |
Stock-based compensation | 15,562 | 22,639 |
Net operating loss carryovers | 44,962 | 47,305 |
Tax credit carryovers | 57,101 | 54,501 |
Other reserves and accruals not currently deductible for tax purposes | 36,516 | 29,420 |
Deferred tax assets, other | 11,552 | 10,968 |
Total deferred tax assets | 229,154 | 225,760 |
Deferred tax liabilities: [Abstract] | ||
Fixed assets cost recovery, net | (82,504) | (141,070) |
Deferred Tax Liabilities, Undistributed Foreign Earnings | 11,842 | 0 |
Deferred tax liabilities, other | (3,695) | (5,349) |
Deferred Tax Liabilities, Gross | (98,041) | (146,419) |
Net deferred tax assets/(liabilities) before valuation allowance | 131,113 | 79,341 |
Valuation allowance | (95,060) | (91,175) |
Net deferred tax assets/(liabilities) | 36,053 | $ (11,834) |
Valuation Allowance [Abstract] | ||
Increase (decrease) in valuation allowance | 3,900 | |
Valuation allowance attributable to tax benefits of income tax deductions generated by exercise of stock options | 37,300 | |
Internal Revenue Service (IRS) [Member] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||
Net operating loss carryforwards subject to expiration | 24,200 | |
State and Local Jurisdiction [Member] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||
Net operating loss carryforwards subject to expiration | 81,000 | |
Deferred Tax Assets, Tax Credit Carryforwards [Abstract] | ||
Tax credit carryforwards subject to expiration | 7,000 | |
Tax credit carryforwards with no expiration date | 95,200 | |
Foreign Tax Authority [Member] | ||
Deferred Tax Assets, Operating Loss Carryforwards, Components [Abstract] | ||
Net operating loss carryforwards with no expiration date | $ 126,200 |
Income Taxes Unrecognized Tax B
Income Taxes Unrecognized Tax Benefit (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | |||
Beginning Balance | $ 427,629 | $ 396,765 | $ 302,904 |
Additions related to current year tax positions | 53,899 | 55,343 | 58,035 |
Additions related to prior year tax positions | 3,035 | 214 | 300 |
Unrecognized Tax Benefits, Increase Resulting from Acquisition | 0 | 0 | 39,566 |
Reductions related to prior year tax positions | (205) | (2,433) | (586) |
Unrecognized Tax Benefits, Increase Resulting from Settlements with Taxing Authorities | (943) | (21,458) | (496) |
Lapses in statutes of limitations | (670) | (802) | (2,958) |
Ending Balance | 482,745 | 427,629 | 396,765 |
Unrecognized tax benefits that if recognzied would affect effective tax rate | 469,500 | ||
Unrecognized tax benefits that if recognized would affect paid in capital | 13,200 | ||
Interest and penalties recognized in income tax expense | 14,700 | 6,500 | 6,600 |
Interest and penalties accrued | 49,000 | $ 34,400 | $ 27,900 |
Unrecognized Tax Benefits, Decrease Resulting from Settlements with Taxing Authorities | 21,200 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued, Reversed | $ 3,600 |
Income Taxes Tax Examination (D
Income Taxes Tax Examination (Details) | 12 Months Ended |
Jun. 25, 2016 | |
United States [Member] | Internal Revenue Service (IRS) [Member] | |
Income Tax Examination [Line Items] | |
Income tax years under examination | 2,009 |
United States [Member] | State and Local Jurisdiction [Member] | |
Income Tax Examination [Line Items] | |
Income tax years under examination | 2,009 |
Ireland | Foreign Country [Member] | |
Income Tax Examination [Line Items] | |
Income tax years under examination | 2,011 |
Japan [Member] | Foreign Country [Member] | |
Income Tax Examination [Line Items] | |
Income tax years under examination | 2,010 |
Philippines [Member] | Foreign Country [Member] | |
Income Tax Examination [Line Items] | |
Income tax years under examination | 2,013 |
Singapore | Foreign Country [Member] | |
Income Tax Examination [Line Items] | |
Income tax years under examination | 2,012 |
UNITED KINGDOM | Foreign Country [Member] | |
Income Tax Examination [Line Items] | |
Income tax years under examination | 2,013 |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | $ 7,578 | $ 18,221 | |
Severance and restructuring expenses | 28,451 | ||
Payments for Restructuring | (35,100) | ||
Restructuring Reserve, Accrual Adjustment | (3,994) | ||
Restructuring and Related Cost, Expected Cost | 4,700 | ||
San Jose Fab Shutdown Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 0 | 6,725 | |
Severance and restructuring expenses | 973 | ||
Payments for Restructuring | (7,166) | ||
Restructuring Reserve, Accrual Adjustment | (532) | ||
Restructuring and Related Cost, Cost Incurred to Date | 100,300 | ||
Volterra Restructuring Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and restructuring expenses | $ 11,000 | ||
Business Unit Reorganization [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and restructuring expenses | $ 10,800 | ||
Other Restructuring Plans [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Reserve | 7,578 | 11,496 | |
Severance and restructuring expenses | 27,478 | ||
Payments for Restructuring | (27,934) | ||
Restructuring Reserve, Accrual Adjustment | (3,462) | ||
Employee Severance [Member] | San Jose Fab Shutdown Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 400 | 6,700 | |
Employee Severance [Member] | Other Restructuring Plans [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charge, Charges and Change in Estimates | 24,000 | 24,500 | |
Accelerated Depreciation [Member] | San Jose Fab Shutdown Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | 41,600 | $ 51,500 | |
Dallas Manufacturing Facility Accelerated Depreciation [Member] | Other Restructuring Plans [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Severance and restructuring expenses | $ 13,000 |
Restructuring Activities Change
Restructuring Activities Change in Estimate (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |||||||||
Change in Accounting Estimate [Line Items] | |||||||||||||||||||
Operating income (loss) | $ 122,373 | $ 177,708 | $ 89,533 | $ (75,765) | $ 94,948 | $ 105,450 | $ (64,076) | $ 100,958 | $ 313,849 | $ 237,280 | $ 422,291 | ||||||||
Net income | $ 92,339 | [1] | $ 139,810 | [1] | $ 67,469 | [1] | $ (72,143) | [1] | $ 98,659 | [2] | $ 79,433 | [2] | $ (72,034) | [2] | $ 99,980 | [2] | $ 227,475 | $ 206,038 | $ 354,810 |
Basic net income per share | $ 0.32 | $ 0.49 | $ 0.24 | $ (0.25) | $ 0.35 | $ 0.28 | $ (0.25) | $ 0.35 | $ 0.80 | $ 0.73 | $ 1.25 | ||||||||
Diluted net income per share | $ 0.32 | $ 0.48 | $ 0.23 | $ (0.25) | $ 0.34 | $ 0.28 | $ (0.25) | $ 0.35 | $ 0.79 | $ 0.71 | $ 1.23 | ||||||||
Service Life [Member] | |||||||||||||||||||
Change in Accounting Estimate [Line Items] | |||||||||||||||||||
Operating income (loss) | $ (54,626) | $ (51,494) | $ 0 | ||||||||||||||||
Operating Income (Loss), Excluding Accelerated Depreciation Expense | 368,475 | 288,774 | 422,291 | ||||||||||||||||
Net income | (55,654) | (53,144) | 354,810 | ||||||||||||||||
Net Income (Loss), Excluding Accelerated Depreciation Expense | $ 283,129 | $ 259,182 | $ 0 | ||||||||||||||||
Basic net income per share | $ 0.99 | $ 0.91 | $ 1.25 | ||||||||||||||||
Diluted net income per share | 0.98 | 0.90 | 1.23 | ||||||||||||||||
Decrease in basic earnings per share | (0.19) | (0.18) | 0 | ||||||||||||||||
Decrease in Diluted Earnings Per Share | $ (0.19) | $ (0.19) | $ 0 | ||||||||||||||||
[1] | The fiscal quarter ended September 26, 2015, includes 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 fiscal quarter ended March 26, 2016, includes a gain of $58.9 million associated to the sale of the Company's energy metering business. | ||||||||||||||||||
[2] | The fiscal quarter ended December 27, 2014, includes a goodwill impairment charge of $84.1 million, a Property, plant and equipment, impairment of $45.2 million and an IPR&D impairment of $8.9 million associated with the Sensing Solutions reporting unit. |
Benefits (Details)
Benefits (Details) - USD ($) $ in Thousands | 12 Months Ended | ||||
Jun. 24, 2017 | Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | ||
Accumulated Postretirement Benefit Obligation [APBO]: | |||||
Funded status at end of year | $ (25,803) | $ (25,264) | |||
Actuarial gain (loss) | 0 | 524 | |||
Defined Benefit Plan, Amortization of Net Prior Service Cost (Credit) | 0 | 0 | |||
Amounts Recognized in Accumulated Other Comprehensive Income: | |||||
Net actuarial loss | 7,390 | 8,425 | |||
Pension and Other Postretirement Benefit Plans, Accumulated Other Comprehensive Income (Loss), Net Prior Service Cost (Credit), before Tax | 1,675 | 2,031 | |||
Amounts recognized in Accumulated Other Comprehensive Income | $ 9,065 | $ 10,456 | |||
Economic Assumptions: | |||||
Benefit obligation, discount rate | 3.70% | 4.00% | |||
Medical trend | |||||
Description of direction and pattern of change for assumed medical trend rate | 7.0%-5.0% | 7.5%-5.0% | |||
Defined Benefit Plan, Assumptions Used Calculating Unrecognized Gain Loss Amortization, Average Remaining Life Expectancy | 4 years 8 months 12 days | ||||
Estimated future benefit payments | |||||
Obligations included in Other Liabilities | $ 9,700 | $ 11,800 | |||
Foreign Pension Plan [Member] | |||||
Estimated future benefit payments | |||||
Defined Benefit Plan, Amounts Recognized in Other Comprehensive Income (Loss), Net Actuarial Gain (Loss), before Tax | 1,100 | 3,700 | $ 3,300 | ||
Retirees and Beneficiaries [Member] | |||||
Accumulated Postretirement Benefit Obligation [APBO]: | |||||
Retirees and beneficiaries | (22,641) | (22,414) | |||
Active Participants [Member] | |||||
Accumulated Postretirement Benefit Obligation [APBO]: | |||||
Retirees and beneficiaries | (3,162) | (2,850) | |||
Non-Pension Benefits [Member] | |||||
Estimated future benefit payments | |||||
2,017 | 666 | ||||
2,018 | 685 | ||||
2,019 | 721 | ||||
2,020 | 724 | ||||
2,021 | 781 | ||||
Thereafter | 22,226 | ||||
Total | 25,803 | ||||
Defined Benefit Postretirement Life Insurance [Member] | |||||
Estimated future benefit payments | |||||
Assets for plan benefits included in Other Assets | 5,300 | 5,100 | |||
Obligations included in Other Liabilities | 6,700 | 6,500 | |||
Scenario, Forecast [Member] | |||||
Net Periodic Postretirement Benefit Cost/(Income): | |||||
Interest cost | $ 663 | ||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 356 | ||||
Amortization of net actuarial loss | [1] | 0 | |||
Total net periodic postretirement benefit cost | 1,019 | ||||
Estimated employer contributions in next fiscal year | $ 666 | ||||
Scenario, Actual [Member] | |||||
Net Periodic Postretirement Benefit Cost/(Income): | |||||
Interest cost | 994 | ||||
Defined Benefit Plan, Amortization of Prior Service Cost (Credit) | 356 | ||||
Amortization of net actuarial loss | [1] | 1,035 | |||
Total net periodic postretirement benefit cost | 2,385 | ||||
Employer contributions, current period | $ 809 | ||||
United States Pension Plan of US Entity [Member] | |||||
Defined Contribution Plan Disclosure [Line Items] | |||||
Employer matching percentage of employee contributions up to 3% of employee eligible compensation | 100.00% | ||||
Maximum percentage of employee eligible compensation with 100% matching contributions by employer | 3.00% | ||||
Employer matching percentage of additional employee contributions up to 5% of employee eligible compensation | 50.00% | ||||
Maximum percentage of employee eligible compensation with 50% matching contributions by employer | 2.00% | ||||
Defined contribution expense | $ 13,000 | $ 14,700 | $ 15,400 | ||
[1] | Unrecognized losses are amortized over average remaining service period of active participants of 4.7 years at JuneĀ 25, 2016. |
Quarterly Financial Data (Una81
Quarterly Financial Data (Unaudited) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||||||||||||
Jun. 25, 2016 | Mar. 26, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 27, 2015 | Mar. 28, 2015 | Dec. 27, 2014 | Sep. 27, 2014 | Dec. 27, 2014 | Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |||||||||
Impairment of Long-Lived Assets to be Disposed of | $ 157,700 | $ 160,153 | $ 67,010 | $ 11,644 | ||||||||||||||||
Quarterly Financial Data [Abstract] | ||||||||||||||||||||
Net revenues | $ 566,126 | $ 555,252 | $ 510,831 | 562,510 | $ 582,517 | $ 577,263 | $ 566,809 | $ 580,275 | 2,194,719 | 2,306,864 | 2,453,663 | |||||||||
Cost of goods sold | 219,099 | 236,411 | 218,662 | 276,159 | 278,816 | 261,995 | 252,732 | 241,454 | 950,331 | 1,034,997 | 1,068,898 | |||||||||
Gross margin | $ 347,027 | $ 318,841 | $ 292,169 | $ 286,351 | $ 303,701 | $ 315,268 | $ 314,077 | $ 338,821 | 1,244,388 | 1,271,867 | 1,384,765 | |||||||||
Gross margin % | 61.30% | 57.40% | 57.20% | 50.90% | 52.10% | 54.60% | 55.40% | 58.40% | ||||||||||||
Operating income (loss) | $ 122,373 | $ 177,708 | $ 89,533 | $ (75,765) | $ 94,948 | $ 105,450 | $ (64,076) | $ 100,958 | 313,849 | 237,280 | 422,291 | |||||||||
% of net revenues | 21.60% | 32.00% | 17.50% | (13.50%) | 16.30% | 18.30% | (11.30%) | 17.40% | ||||||||||||
Net income | $ 92,339 | [1] | $ 139,810 | [1] | $ 67,469 | [1] | $ (72,143) | [1] | $ 98,659 | [2] | $ 79,433 | [2] | $ (72,034) | [2] | $ 99,980 | [2] | $ 227,475 | $ 206,038 | $ 354,810 | |
Earnings (loss) per share: | ||||||||||||||||||||
Basic net income per share | $ 0.32 | $ 0.49 | $ 0.24 | $ (0.25) | $ 0.35 | $ 0.28 | $ (0.25) | $ 0.35 | $ 0.80 | $ 0.73 | $ 1.25 | |||||||||
Diluted net income per share | $ 0.32 | $ 0.48 | $ 0.23 | $ (0.25) | $ 0.34 | $ 0.28 | $ (0.25) | $ 0.35 | $ 0.79 | $ 0.71 | $ 1.23 | |||||||||
Shares used in the calculation of earnings (loss) per share: | ||||||||||||||||||||
Basic | 285,354 | 285,854 | 285,526 | 284,588 | 284,202 | 283,418 | 282,992 | 284,086 | 285,081 | 283,675 | 283,344 | |||||||||
Diluted | 288,544 | 289,783 | 290,521 | 284,588 | 289,346 | 288,840 | 282,992 | 289,430 | 289,479 | 288,949 | 289,108 | |||||||||
Common Stock, Dividends, Per Share, Cash Paid | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.30 | $ 0.28 | $ 0.28 | $ 0.28 | $ 0.28 | $ 1.20 | $ 1.12 | $ 1.04 | |||||||||
Goodwill, Impairment Loss | $ 84,100 | $ 84,124 | ||||||||||||||||||
Impairment of Intangible Assets (Excluding Goodwill) | $ 8,900 | |||||||||||||||||||
[1] | The fiscal quarter ended September 26, 2015, includes 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 fiscal quarter ended March 26, 2016, includes a gain of $58.9 million associated to the sale of the Company's energy metering business. | |||||||||||||||||||
[2] | The fiscal quarter ended December 27, 2014, includes a goodwill impairment charge of $84.1 million, a Property, plant and equipment, impairment of $45.2 million and an IPR&D impairment of $8.9 million associated with the Sensing Solutions reporting unit. |
Subsequent Event (Details)
Subsequent Event (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Subsequent Event [Line Items] | ||||
Proceeds from Divestiture of Businesses | $ 33,000 | $ 105,000 | $ 35,550 | $ 0 |
Schedule II - Valuation and A83
Schedule II - Valuation and Allowance (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | ||
Allowance for Doubtful Accounts, Current [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Valuation Allowances and Reserves, Balance at Beginning of Period | $ 874 | $ 1,581 | $ 1,227 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | (113) | (283) | 693 | |
Valuation Allowances and Reserves, Deductions | [1] | (114) | (424) | (339) |
Valuation Allowances and Reserves, Balance at End of Period | 647 | 874 | 1,581 | |
Allowance for Sales Returns [Member] | ||||
Movement in Valuation Allowances and Reserves [Roll Forward] | ||||
Valuation Allowances and Reserves, Balance at Beginning of Period | 17,412 | 16,169 | 12,418 | |
Valuation Allowances and Reserves, Charged to Cost and Expense | 79,956 | 81,476 | 75,346 | |
Valuation Allowances and Reserves, Deductions | (65,907) | (80,233) | (71,595) | |
Valuation Allowances and Reserves, Balance at End of Period | $ 31,461 | $ 17,412 | $ 16,169 | |
[1] | Uncollectible accounts written off. |
Related Party Transactions (Det
Related Party Transactions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Related Party Transactions [Abstract] | |||
Revenue from Related Parties | $ 73.8 | $ 60.4 | $ 68.1 |