Document and Entity Information
Document and Entity Information Document - shares | 3 Months Ended | |
Sep. 24, 2016 | Oct. 14, 2016 | |
DEI [Abstract] | ||
Entity Registrant Name | MAXIM INTEGRATED PRODUCTS INC | |
Entity Central Index Key | 743,316 | |
Trading Symbol | MXIM | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Sep. 24, 2016 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Current Fiscal Year End Date | --06-24 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 283,278,391 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 24, 2016 | Jun. 25, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 2,092,073 | $ 2,105,229 |
Short-term Investments | 175,441 | 125,439 |
Total cash, cash equivalents and short-term investments | 2,267,514 | 2,230,668 |
Accounts receivable, net | 253,518 | 256,531 |
Inventories | 223,484 | 227,929 |
Other assets current | 89,398 | 91,920 |
Total current assets | 2,833,914 | 2,807,048 |
Property, plant and equipment, net | 678,447 | 692,551 |
Intangible assets, net | 131,496 | 146,540 |
Goodwill | 491,015 | 490,648 |
Other assets noncurrent | 54,890 | 84,100 |
Assets Held-for-sale, Not Part of Disposal Group, Current | 2,854 | 13,729 |
TOTAL ASSETS | 4,192,616 | 4,234,616 |
Current liabilities: | ||
Accounts payable | 83,589 | 82,535 |
Income taxes payable | 3,138 | 21,153 |
Accrued salary and related expenses | 111,126 | 166,698 |
Accrued expenses | 48,572 | 50,521 |
Deferred income on shipments to distributors | 35,754 | 38,779 |
Short-term Debt | 249,788 | 249,717 |
Total current liabilities | 531,967 | 609,403 |
Long term debt | 990,685 | 990,090 |
Income taxes payable | 497,360 | 480,645 |
Other liabilities | 37,368 | 46,664 |
Total liabilities | 2,057,380 | 2,126,802 |
Commitments and contingencies (Note 11) | ||
Stockholders' equity: | ||
Common stock and capital in excess of par value | 284 | 284 |
Retained earnings | 2,141,326 | 2,121,749 |
Accumulated other comprehensive loss | (6,374) | (14,219) |
Total stockholders' equity | 2,135,236 | 2,107,814 |
TOTAL LIABILITIES & STOCKHOLDERS' EQUITY | $ 4,192,616 | $ 4,234,616 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets Parenthetical - USD ($) $ in Thousands | Sep. 24, 2016 | Jun. 25, 2016 |
Statement of Financial Position [Abstract] | ||
Allowance for Doubtful Accounts Receivable, Current | $ 28,945 | $ 32,108 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Income Statement [Abstract] | ||
Net revenues | $ 561,396 | $ 562,510 |
Cost of goods sold | 215,664 | 276,159 |
Gross margin | 345,732 | 286,351 |
Operating expenses: | ||
Research and development | 112,746 | 121,392 |
Selling, general and administrative | 70,852 | 71,995 |
Amortization of Intangible Assets | 2,443 | 3,591 |
Impairment of Long-Lived Assets to be Disposed of | 6,134 | 157,697 |
Severance and Restructuring Charges | 9,965 | 7,126 |
Other Operating Income (Expense), Net | (28,481) | 315 |
Total operating expenses | 173,659 | 362,116 |
Operating income | 172,073 | (75,765) |
Interest and other expense, net | (6,870) | (6,402) |
Income before provision for income taxes | 165,203 | (82,167) |
Provision for income taxes | 27,589 | (10,024) |
Net income | $ 137,614 | $ (72,143) |
Earnings per share: | ||
Basic (per share) | $ 0.49 | $ (0.25) |
Diluted (per share) | $ 0.48 | $ (0.25) |
Shares used in the calculation of earnings per share: | ||
Basic (in shares) | 283,633 | 284,588 |
Diluted (in shares) | 288,574 | 284,588 |
Dividends paid per share | $ 0.33 | $ 0.30 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Statements of Income and Comprehensive Income [Abstract] | ||
Net income | $ 137,614 | $ (72,143) |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Net of Tax | 2,612 | 76 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Net of Tax | 386 | (614) |
Unrealized gains (losses) on post-retirement benefits, net of tax benefit (expense) | 4,847 | 172 |
Other Comprehensive Income (Loss), Net of Tax | 7,845 | (366) |
Comprehensive Income (Loss), Net of Tax, Attributable to Parent | 145,459 | (72,509) |
Other Comprehensive Income (Loss), Unrealized Holding Gain (Loss) on Securities Arising During Period, Tax | (1,633) | 0 |
Other Comprehensive Income (Loss), Unrealized Gain (Loss) on Derivatives Arising During Period, Tax | (122) | 192 |
Other Comprehensive (Income) Loss, Pension and Other Postretirement Benefit Plans, Tax | $ (2,805) | $ (80) |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Cash flows from operating activities: | ||
Net income | $ 137,614 | $ (72,143) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Stock-based compensation | 17,120 | 16,963 |
Depreciation and amortization | 43,485 | 102,053 |
Deferred taxes | 14,895 | (53,111) |
Loss on sale of property, plant and equipment | 652 | (1,346) |
Gain (Loss) on Disposition of Business | (26,620) | 0 |
Tax benefit (shortfall) related to stock-based compensation plans | 0 | 1,193 |
Impairment of Long-Lived Assets to be Disposed of | 6,134 | 157,697 |
Excess tax benefit related to stock-based compensation | 0 | (2,249) |
Changes in assets and liabilities: | ||
Accounts receivable | 3,013 | (3,627) |
Inventories | 2,517 | (2,167) |
Other current assets and income tax refund receivable | (12,099) | 4,796 |
Accounts payable | (858) | (9,776) |
Income taxes payable | 110 | 34,127 |
Deferred income on shipments to distributors | (3,025) | 4,764 |
Increase (Decrease) in Employee Related Liabilities | (55,572) | (60,718) |
All other accrued liabilities | (3,964) | 883 |
Net cash provided by operating activities | 123,402 | 117,339 |
Cash flows from investing activities: | ||
Purchase of property, plant and equipment | (14,310) | (15,821) |
Proceeds from sale of property, plant, and equipment | 205 | 606 |
Proceeds from sale of available-for-sale securities | 24,540 | 0 |
Proceeds from maturity of available-for-sale securities | 25,000 | 0 |
Proceeds from Divestiture of Businesses | 42,199 | 0 |
Payments to Acquire Available-for-sale Securities | (75,224) | (25,055) |
Payments to Acquire Investments | (2,337) | (1,000) |
Net cash used in investing activities | 73 | (41,270) |
Cash flows from financing activities: | ||
Excess tax benefit related to stock-based compensation | 0 | 2,249 |
Net issuance of restricted stock units | (5,206) | (4,822) |
Proceeds from stock options exercised | 19,911 | 8,970 |
Repurchase of common stock | (57,709) | (39,697) |
Dividends paid | (93,627) | (85,387) |
Net cash used in financing activities | (136,631) | (118,687) |
Net decrease in cash and cash equivalents | (13,156) | (42,618) |
Cash and cash equivalents: | ||
Beginning of period | 2,105,229 | 1,550,965 |
End of period | 2,092,073 | 1,508,347 |
Supplemental disclosures of cash flow information: | ||
Cash paid (refunded), net during the period for income taxes | 33,760 | 7,021 |
Cash paid for interest | 8,438 | 8,438 |
Noncash investing and financing activities: | ||
Accounts payable related to property, plant, and equipment purchases | 4,722 | 7,127 |
Proceeds from Sale of Other Property, Plant, and Equipment | $ 25,922 | $ 0 |
Basis of Presentation
Basis of Presentation | 3 Months Ended |
Sep. 24, 2016 | |
Basis of Presentation [Abstract] | |
Basis of Presentation [Text Block] | BASIS OF PRESENTATION The accompanying unaudited condensed consolidated financial statements of Maxim Integrated Products, Inc. and all of its majority-owned subsidiaries (collectively, the “Company” or “Maxim Integrated”) included herein have been prepared by the Company pursuant to the rules and regulations of the Securities and Exchange Commission (the “SEC”). Certain information and footnote disclosures normally included in consolidated financial statements prepared in accordance with generally accepted accounting principles of the United States of America (“GAAP”) have been condensed or omitted pursuant to applicable rules and regulations. In the opinion of management, all adjustments of a normal recurring nature which were considered necessary for fair presentation have been included. The year-end condensed consolidated balance sheet data were derived from audited consolidated financial statements but do not include all disclosures required by GAAP. The results of operations for the three months ended September 24, 2016 are not necessarily indicative of the results to be expected for the entire year. These condensed consolidated financial statements should be read in conjunction with the consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the fiscal year ended June 25, 2016 . The Company has a 52-to-53-week fiscal year that ends on the last Saturday in June. Accordingly, every fifth or sixth fiscal year will be a 53-week fiscal year. Fiscal year 2016 was a 52-week fiscal year and fiscal year 2017 will also be a 52-week fiscal year. |
Recently Issued Accounting Pron
Recently Issued Accounting Pronouncements | 3 Months Ended |
Sep. 24, 2016 | |
New Accounting Pronouncements and Changes in Accounting Principles [Abstract] | |
Recently Issued Accounting Pronouncements [Text Block] | RECENTLY ISSUED ACCOUNTING PRONOUNCEMENTS (i) New Accounting Updates Recently Adopted In 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. The Company early adopted ASU 2016-09 at the beginning of the first quarter of fiscal year 2017. As a result of the adoption, in the first quarter of fiscal year 2017 the Company recorded a $1.4 million cumulative-effect adjustment to retained earnings for the recognition of excess tax benefits generated by the settlement of share-based awards in prior periods and a discrete income tax benefit of $3.3 million to the income tax provision for excess tax benefits generated by the settlement, in the first quarter of fiscal year 2017, of share-based awards. The adoption also resulted in an increase in cash flow from operating activities and a decrease in cash flow from financing activities of $3.3 million in the first quarter of fiscal year 2017. The adoption was on a prospective basis and therefore had no impact on prior periods. (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 2018, 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 entity’s 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. |
Balance Sheet Components
Balance Sheet Components | 3 Months Ended |
Sep. 24, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Balance Sheet Components [Text Block] | BALANCE SHEET COMPONENTS Inventories consist of: September 24, June 25, Inventories: (in thousands) Raw materials $ 7,164 $ 6,505 Work-in-process 143,872 148,762 Finished goods 72,448 72,662 $ 223,484 $ 227,929 Property, plant and equipment, net consists of: September 24, June 25, Property, plant and equipment, net: (in thousands) Land $ 18,952 $ 18,952 Buildings and building improvements 245,836 240,507 Machinery and equipment 1,370,245 1,370,322 1,635,033 1,629,781 Less: accumulated depreciation (956,586 ) (937,230 ) $ 678,447 $ 692,551 Accrued salary and related expenses consist of: September 24, June 25, Accrued salary and related expenses: (in thousands) Accrued vacation $ 30,040 $ 30,753 Accrued bonus 29,303 90,638 Accrued severance and post-employment benefits 14,397 14,230 Accrued salaries 12,085 14,320 Other 25,301 16,757 $ 111,126 $ 166,698 |
Fair Value Measurements
Fair Value Measurements | 3 Months Ended |
Sep. 24, 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 Company’s 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 September 24, 2016 and June 25, 2016 . Assets and liabilities measured at fair value on a recurring basis were as follows: As of September 24, 2016 As of June 25, 2016 Fair Value Measurements Using Total Balance Fair Value Measurements Using Total Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Assets Money market funds (1) $ 1,626,233 $ — $ — $ 1,626,233 $ 1,658,321 $ — $ — $ 1,658,321 U.S. treasury bills (2) — 175,441 — 175,441 — 125,439 — 125,439 Foreign currency forward contracts (3) — 450 — 450 — 695 — 695 Investment in common stock (3) — 25,922 — 25,922 — 40,000 — 40,000 Certificates of deposit (1) — 70 — 70 — 70 — 70 Total Assets $ 1,626,233 $ 201,883 $ — $ 1,828,116 $ 1,658,321 $ 166,204 $ — $ 1,824,525 Liabilities Foreign currency forward contracts (4) $ — $ 555 $ — $ 555 $ — $ 1,327 $ — $ 1,327 Total Liabilities $ — $ 555 $ — $ 555 $ — $ 1,327 $ — $ 1,327 (1) Included in Cash and cash equivalents in the accompanying Condensed Consolidated Balance Sheets. (2) Included in Short-term investments in the accompanying Condensed Consolidated Balance Sheets. (3) Included in Other current assets in the accompanying Condensed Consolidated Balance Sheets. (4) Included in Accrued expenses in the accompanying Condensed Consolidated Balance Sheets. During the three months ended September 24, 2016 and June 25, 2016 , 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 September 24, 2016 and June 25, 2016 other than impairments of Long-Lived assets. For details, please refer to Note 14: “Impairment of long-lived assets”. |
Financial Instruments
Financial Instruments | 3 Months Ended |
Sep. 24, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Financial Instruments [Text Block] | FINANCIAL INSTRUMENTS Short-term investments Fair values were as follows: September 24, 2016 June 25, 2016 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 $ 175,157 $ 284 $ — $ 175,441 $ 124,950 $ 489 $ — $ 125,439 Total available-for-sale investments $ 175,157 $ 284 $ — $ 175,441 $ 124,950 $ 489 $ — $ 125,439 In the three months ended September 24, 2016 and the year ended June 25, 2016 , the Company did not recognize any impairment charges on short-term investments. The U.S. Treasury bills have maturity dates between December 15, 2017 and December 15, 2018. Securities received as consideration for sale of assets During the third quarter of fiscal 2016, the Company received approximately $40.0 million in common shares of Tower Semiconductor Ltd. as consideration for the sale of the Company's semiconductor wafer manufacturing facility in San Antonio, Texas. During the three months ended September 24, 2016 , the Company sold some of these common shares for gross proceeds of approximately $24.5 million . The remaining common shares were valued at approximately $25.9 million as of September 24, 2016 , with the increase in value of $5.4 million treated as an unrealized gain. The Company is required to return to Tower Semiconductor the first $6.0 million in gain realized upon the sale of such shares. 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 and South Korean Won expenditures for sales offices and research and development activities undertaken outside of the U.S. The Company has established a program that primarily utilizes foreign currency forward contracts to offset the risks associated with the effects of certain foreign currency exposures. The Company does not use these foreign currency forward contracts for trading purposes. Derivatives designated as cash flow hedging instruments The Company designates certain forward contracts as hedging instruments pursuant to Accounting Standards Codification (“ASC”) No. 815-Derivatives and Hedging (“ASC 815”). As of September 24, 2016 and June 25, 2016 , the notional amounts of the forward contracts the Company held to purchase international currencies were $55.4 million and $68.0 million , respectively, and the notional amounts of forward contracts the Company held to sell international currencies were $2.3 million and $2.6 million , respectively. Derivatives not designated as hedging instruments As of September 24, 2016 and June 25, 2016 , the notional amounts of the forward contracts the Company held to purchase international currencies were $25.8 million and $25.4 million , respectively, and the notional amounts of forward contracts the Company held to sell international currencies were $17.0 million and $24.6 million , respectively. The fair values of our outstanding foreign currency forward contracts and gain (loss) included in the Condensed Consolidated Statement of Income were not material for the three months ended September 24, 2016 and the year ended June 25, 2016 . Long-term debt The following table summarizes the Company’s long-term debt: September 24, June 25, (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 250,000 250,000 Total 1,250,000 1,250,000 Less: Current portion (249,788 ) (249,717 ) Less: Reduction for unamortized discount and debt issuance costs (9,527 ) (10,193 ) Total long-term debt $ 990,685 $ 990,090 On November 21, 2013, the Company completed a public offering of $500 million aggregate principal amount of the Company’s 2.5% coupon senior unsecured and unsubordinated notes due in November 2018 (“2018 Notes”), with an effective interest rate of 2.6% . Interest on the 2018 Notes is payable semi-annually in arrears on May 15 and November 15 of each year, commencing on May 15, 2014. The net proceeds of this offering were approximately $494.5 million , after issuing at a discount and deducting paid expenses. On March 18, 2013, the Company completed a public offering of $500 million aggregate principal amount of the Company’s 3.375% senior unsecured and unsubordinated notes due in March 2023 (“2023 Notes”), with an effective interest rate of 3.5% . Interest on the 2023 Notes is payable semi-annually in arrears on March 15 and September 15 of each year. The net proceeds of this offering were approximately $490.0 million , after issuing at a discount and deducting paid expenses. The 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 Condensed Consolidated Statements of Income over the life of the notes. The interest expense is recorded in Interest and other income (expense), net in the Condensed Consolidated Statements of Income. Amortized discount and expenses, as well as interest expense associated with the notes was $9.1 million and $7.3 million during the three months ended September 24, 2016 and September 26, 2015 , respectively. The estimated fair value of the Company’s long-term debt was approximately $1,028 million as of September 24, 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 $9.8 million and $8.2 million during the three months ended September 24, 2016 , and September 26, 2015 , respectively. Credit Facility 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 September 24, 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 “Credit Agreement”) with The Bank of Tokyo-Mitsubishi UFJ, Ltd. (the “Lender”), 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 with a maturity date of June 22, 2017. The net proceeds of this credit agreement were 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 September 24, 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 | 3 Months Ended |
Sep. 24, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation [Text Block] | STOCK-BASED COMPENSATION At September 24, 2016 , the Company had one stock incentive plan, the Company's 1996 Stock Incentive Plan (the “1996 Plan”) and one employee stock purchase plan, the 2008 Employee Stock Purchase Plan (the “2008 ESPP”). The 1996 Plan was adopted by the Board of Directors to provide the grant of incentive stock options, non-statutory stock options, restricted stock units (“RSUs”), and market stock units (“MSUs”) 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 Company’s stock price as compared to the Semiconductor Exchange Traded Fund index XSD (the “SPDR S&P”). The following tables show total stock-based compensation expense by type of award, and the resulting tax effect, included in the Condensed Consolidated Statements of Income for the three months ended September 24, 2016 and September 26, 2015 , respectively: Three Months Ended September 24, 2016 September 26, 2015 Stock Options Restricted Stock Units Employee Stock Purchase Plan Total Stock Options Restricted Stock Units Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 180 $ 1,583 $ 484 $ 2,247 $ 335 $ 1,988 $ 559 $ 2,882 Research and development 222 6,696 1,218 8,136 870 5,874 1,297 8,041 Selling, general and administrative 642 5,476 619 6,737 818 4,626 596 6,040 Pre-tax stock-based compensation expense $ 1,044 $ 13,755 $ 2,321 $ 17,120 $ 2,023 $ 12,488 $ 2,452 $ 16,963 Less: income tax effect 3,067 2,762 Net stock-based compensation expense $ 14,053 $ 14,201 The expenses included in the Condensed Consolidated Statements of Income related to RSUs include expenses related to MSUs of $0.6 million and $0.5 million for the three months ended September 24, 2016 and September 26, 2015 , respectively. Stock Options The fair value of options granted to employees under the 1996 Plan is estimated on the date of grant using the Black-Scholes option valuation model. Expected volatilities are based on the historical volatilities from the Company’s traded common stock over a period equal to the expected term. The Company is utilizing the simplified method to estimate expected holding periods. The risk-free interest rate is based on the U.S. Treasury yield. The Company determines the dividend yield by dividing the annualized dividends per share by the prior quarter’s average stock price. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis. There were no stock options granted in the three months ended September 24, 2016 and three months ended September 26, 2015 . The following table summarizes outstanding, exercisable and vested and expected to vest stock options as of September 24, 2016 and their activity for the three months ended September 24, 2016 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (1) Balance at June 25, 2016 5,935,079 $ 25.11 Options Granted — — Options Exercised (866,330 ) 22.97 Options Cancelled (200,203 ) 27.28 Balance at September 24, 2016 4,868,546 $ 25.39 2.9 $ 66,785,971 Exercisable, September 24, 2016 2,807,904 $ 23.32 2.2 $ 44,005,199 Vested and expected to vest, September 24, 2016 4,803,830 $ 25.32 2.9 $ 65,649,805 (1) Aggregate intrinsic value represents the difference between the exercise price and the closing price per share of the Company’s common stock on September 23, 2016, the last business day preceding the fiscal quarter-end, multiplied by the number of options outstanding, exercisable or vested and expected to vest as of September 24, 2016. As of September 24, 2016 , there was $4.9 million of total unrecognized stock compensation cost related to 2.1 million unvested stock options, which is expected to be recognized over a weighted average period of approximately 1.1 years. Restricted Stock Units and Other Awards The fair value of RSUs and other awards under the Company’s 1996 Plan is estimated using the value of the Company’s common stock on the date of grant, reduced by the present value of dividends expected to be paid on the Company’s common stock prior to vesting. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis. The weighted-average fair value of RSUs and other awards granted was $35.97 and $28.28 per share for the three months ended September 24, 2016 and September 26, 2015 , respectively. The following table summarizes the outstanding and expected to vest RSUs and other awards as of September 24, 2016 and their activity during the three months ended September 24, 2016 : Number of Shares Weighted Average Aggregate Intrinsic Value (1) Balance at June 25, 2016 6,620,813 Restricted stock units and other awards granted 1,663,313 Restricted stock units and other awards released (406,051 ) Restricted stock units and other awards cancelled (387,698 ) Balance at September 24, 2016 7,490,377 3.0 $ 292,456,777 Outstanding and expected to vest, September 24, 2016 6,139,955 2.9 $ 239,396,837 (1) Aggregate intrinsic value for RSUs and other awards represents the closing price per share of the Company’s common stock on September 23, 2016, the last business day preceding the fiscal quarter-end, multiplied by the number of RSUs outstanding or expected to vest as of September 24, 2016. The Company withheld shares totaling $5.2 million in value as a result of employee withholding taxes based on the value of the RSUs on their vesting date for the three months ended September 24, 2016 . The total payments for the employees’ tax obligations to the taxing authorities are reflected as financing activities within the Condensed Consolidated Statements of Cash Flows. As of September 24, 2016 , there was $169.0 million of unrecognized compensation expense related to 7.5 million unvested RSUs and other awards, which is expected to be recognized over a weighted average period of approximately 3.0 years. Market Stock Units The Company granted MSUs to senior members of management in September 2015 and September 2016. The grant of MSUs was in lieu of granting stock options. MSUs are valued based on the relative performance of the Company’s stock price as compared to the Semiconductor Exchange Traded Fund index XSD (the “SPDR S&P”). The fair value of MSUs is estimated using a Monte Carlo simulation model on the date of grant. The Company also estimates forfeitures at the time of grant and makes revisions to forfeitures on a quarterly basis. Compensation expense is recognized based on the initial valuation and is not subsequently adjusted as a result of the Company’s performance relative to that of the XSD index. Vesting for MSUs is contingent upon both service and market conditions, and has a four-year vesting cliff period. The weighted-average fair value of MSUs granted was $37.29 and $29.64 per share for the three months ended September 24, 2016 and September 26, 2015 , respectively. The following table summarizes the number of MSUs outstanding and expected to vest as of September 24, 2016 and their activity during the three months ended September 24, 2016 : Number of Shares Weighted Average Aggregate Intrinsic Value (1) Balance at June 25, 2016 673,532 Market stock units granted 308,432 Market stock units released — Market stock units cancelled (66,696 ) Balance at September 24, 2016 915,268 3.3 $ 35,686,299 Outstanding and expected to vest, September 24, 2016 738,080 3.3 $ 28,777,728 (1) Aggregate intrinsic value for MSUs represents the closing price per share of the Company’s common stock on September 23, 2016, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of September 24, 2016. As of September 24, 2016 , there was $21.3 million of unrecognized compensation expense related to 0.9 million unvested MSUs, which is expected to be recognized over a weighted average period of approximately 3.3 years. Employee Stock Purchase Plan Employees are granted rights to acquire common stock under the 2008 ESPP. The fair value of ESPP rights granted to employees 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 Three Months Ended September 24, September 26, Expected holding period (in years) 0.5 0.5 Risk-free interest rate 0.5% 0.1% Expected stock price volatility 27.2% - 28.2% 21.8% - 23.8% Dividend yield 3.5% - 3.6% 3.3% - 3.5% As of September 24, 2016 and September 26, 2015 , there was $3.1 million and $3.1 million , respectively, of unrecognized compensation expense related to the 2008 ESPP. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 24, 2016 | |
Earnings Per Share [Abstract] | |
Earnings Per Share [Text Block] | EARNINGS (LOSS) PER SHARE Basic earnings (loss) per share are computed using the weighted average number of shares of common stock outstanding during the period. For purposes of computing basic earnings (loss) per share, the weighted average number of outstanding shares of common stock excludes unvested RSUs and 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, MSUs and assumed issuance of common stock under the 2008 ESPP using the treasury stock method. The following table sets forth the computation of basic and diluted earnings (loss) per share: Three Months Ended September 24, September 26, (in thousands, except per share data) Numerator for basic earnings (loss) per share and diluted earnings (loss) per share Net income (loss) $ 137,614 $ (72,143 ) Denominator for basic earnings (loss) per share 283,633 284,588 Effect of dilutive securities: Stock options, ESPP, RSUs, and MSUs 4,941 — Denominator for diluted earnings (loss) per share 288,574 284,588 Earnings (loss) per share Basic $ 0.49 $ (0.25 ) Diluted $ 0.48 $ (0.25 ) The Company had a net loss for the three months ended September 26, 2015 , accordingly all incremental shares totaling 5.7 million shares were determined to be anti-dilutive. For the three months ended September 24, 2016 , no securities were determined to be anti-dilutive and therefore none were excluded from the calculation of diluted earnings per share. |
Segment Information
Segment Information | 3 Months Ended |
Sep. 24, 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, manufactured using centralized manufacturing (internal and external), and sold through a centralized sales force and shared wholesale distributors. one operating segment. In accordance with ASC No. 280, Segment Reporting (“ASC 280”), the Company considers operating segments to be components of the Company’s business for which separate financial information is available that is evaluated regularly by the Company’s Chief Operating Decision Maker in deciding how to allocate resources and in assessing performance. The Chief Operating Decision Maker for the Company was assessed and determined to be the CEO. The CEO reviews financial information presented on a consolidated basis for purposes of allocating resources and evaluating financial performance. Accordingly, the Company has determined that it has a single operating and reportable segment. Enterprise-wide information is provided in accordance with ASC 280. Geographical revenue information is based on customers’ ship-to location. Long-lived assets consist of property, plant and equipment. Property, plant and equipment information is based on the physical location of the assets at the end of each fiscal year. Net revenues from unaffiliated customers by geographic region were as follows: Three Months Ended September 24, September 26, (in thousands) United States $ 70,151 $ 62,060 China 213,510 224,237 Rest of Asia 174,368 169,934 Europe 89,638 91,903 Rest of World 13,729 14,376 $ 561,396 $ 562,510 Net long-lived assets by geographic region were as follows: September 24, June 25, (in thousands) United States $ 417,460 $ 423,653 Philippines 139,897 141,569 Rest of World 121,090 127,329 $ 678,447 $ 692,551 |
Comprehensive Income Loss
Comprehensive Income Loss | 3 Months Ended |
Sep. 24, 2016 | |
Statement of Comprehensive Income [Abstract] | |
Comprehensive Income [Text Block] | COMPREHENSIVE INCOME (LOSS) The changes in accumulated other comprehensive loss by component and related tax effects in the three months ended September 24, 2016 and September 26, 2015 were as follows: (in thousands) Unrealized Gains and Losses on Intercompany Receivables Unrealized Gains and Losses on Post-Retirement Benefits Cumulative Translation Adjustment Unrealized Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-For-Sale Securities Total June 25, 2016 $ (6,280 ) $ (6,800 ) $ (1,136 ) $ (492 ) $ 489 $ (14,219 ) Other comprehensive income (loss) before reclassifications — — — 448 4,245 4,693 Amounts reclassified out of accumulated other comprehensive loss (income) — 7,652 — 60 — 7,712 Tax effects — (2,805 ) — (122 ) (1,633 ) (4,560 ) Other comprehensive income (loss) — 4,847 — 386 2,612 7,845 September 24, 2016 $ (6,280 ) $ (1,953 ) $ (1,136 ) $ (106 ) $ 3,101 $ (6,374 ) (in thousands) Unrealized Gains and Losses on Intercompany Receivables Unrealized Gains and Losses on Post-Retirement Benefits Cumulative Translation Adjustment Unrealized Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-For-Sale Securities Total June 27, 2015 $ (6,280 ) $ (10,004 ) $ (1,136 ) $ 53 $ 133 $ (17,234 ) Other comprehensive income (loss) before reclassifications — — — (382 ) 76 (306 ) Amounts reclassified out of accumulated other comprehensive loss (income) — 252 — (424 ) — (172 ) Tax effects — (80 ) — 192 — 112 Other comprehensive income (loss) — 172 — (614 ) 76 (366 ) September 26, 2015 $ (6,280 ) $ (9,832 ) $ (1,136 ) $ (561 ) $ 209 $ (17,600 ) |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 24, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes [Text Block] | INCOME TAXES In the three months ended September 24, 2016 and September 26, 2015 , the Company recorded an income tax provision (benefit) of $27.6 million and $(10.0) million , respectively. The Company’s effective tax rate for the three months ended September 24, 2016 and September 26, 2015 was 16.7% and 12.2% , respectively. The Company’s federal statutory tax rate is 35% . The Company’s effective tax rate for the three months ended September 24, 2016 was lower than the statutory rate primarily due to earnings of foreign subsidiaries, generated primarily by the Company's international operations managed in Ireland, that were taxed at lower rates and a $3.3 million discrete benefit for excess tax benefits generated by the settlement of share-based awards, partially offset by share-based compensation for which no tax benefit is expected. The Company's effective tax rate for the three months ended September 26, 2015 was lower than the statutory rate primarily due to earnings of foreign subsidiaries, generated primarily by our international operations managed in Ireland, that were taxed at lower tax rates, partially offset by share-based compensation for which no tax benefit is expected. The Company’s federal corporate income tax returns are audited on a recurring basis by the Internal Revenue Service (“IRS”). The IRS has concluded its field examination of the Company’s federal corporate income tax returns for fiscal years 2009 through 2011 (“Audit Years”) and issued a IRS Revenue Agent’s Report (“RAR”) in July 2016 that includes proposed adjustments for transfer pricing issues related to cost sharing and buy-in license payments for the use of intangible property by one of the Company’s international subsidiaries. The Company disagrees with the proposed transfer pricing adjustments and related penalties and in September 2016 filed a protest to challenge the proposed adjustments and request a conference with the Appeals Office of the IRS. 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. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 24, 2016 | |
Product Warranties Disclosures [Abstract] | |
Commitments and Contingencies [Text Block] | COMMITMENTS AND CONTINGENCIES Legal Proceedings The Company is party or subject to various legal proceedings and claims, either asserted or unasserted, which arise in the ordinary course of business, including proceedings and claims that relate to intellectual property matters. While the outcome of these matters cannot be predicted with certainty, 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. Indemnification The Company indemnifies certain customers, distributors, suppliers and subcontractors for attorney fees, 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 three months ended September 24, 2016 and September 26, 2015 were as follows: Three Months Ended September 24, September 26, Product warranty liability (in thousands) Beginning balance 8,606 $ 13,436 Accruals for warranties 1,018 913 Payments (130 ) — Changes in estimate 111 (20 ) Ending balance $ 9,605 $ 14,329 Less: Current portion 9,605 10,029 Non-current portion $ — $ 4,300 |
Common Stock Repurchases
Common Stock Repurchases | 3 Months Ended |
Sep. 24, 2016 | |
Common Stock Repurchases [Abstract] | |
Common Stock Repurchases [Text Block] | COMMON STOCK REPURCHASES In July 2013, the Board of Directors authorized the Company to repurchase up to $1 billion of the Company’s common stock from time to time at the discretion of the Company’s management. This stock repurchase authorization has no expiration date. All prior authorizations by the Company’s Board of Directors for the repurchase of common stock were superseded by this authorization. During the three months ended September 24, 2016 , the Company repurchased approximately 1.5 million shares of its common stock for $57.7 million . As of September 24, 2016 , the Company had remaining authorization of $272.0 million for future share repurchases. The number of shares to be repurchased and the timing of such repurchases will be based on several factors, including the price of the Company’s common stock and general market and business conditions. |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 3 Months Ended |
Sep. 24, 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 2017 No indicators or instances of impairment were identified in the three months ended September 24, 2016 . 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. Intangible Assets The useful lives of amortizable 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: September 24, June 25, Original Cost Accumulated Amortization Net Original Cost Accumulated Amortization Net (in thousands) Intellectual property $ 451,885 $ 343,922 $ 107,963 $ 420,285 $ 331,321 $ 88,964 Customer relationships 115,634 94,657 20,977 115,634 92,744 22,890 Trade name 8,500 6,886 1,614 8,500 6,486 2,014 Patents 2,500 1,558 942 2,500 1,428 1,072 Total amortizable purchased intangible assets 578,519 447,023 131,496 546,919 431,979 114,940 IPR&D — — — 31,600 — 31,600 Total purchased intangible assets $ 578,519 $ 447,023 $ 131,496 $ 578,519 $ 431,979 $ 146,540 During the three months ended September 24, 2016 , $31.6 million of IPR&D was completed and reclassified to amortizable Intellectual Property. The following table presents the amortization expense of intangible assets and its presentation in the Condensed Consolidated Statements of Income: Three Months Ended September 24, September 26, (in thousands) Cost of goods sold $ 12,602 $ 16,638 Intangible asset amortization 2,443 3,591 Total intangible asset amortization expenses $ 15,045 $ 20,229 The following table represents the estimated future amortization expense of intangible assets as of September 24, 2016 : Fiscal Year Amount (in thousands) Remaining nine months of 2017 $ 40,629 2018 48,146 2019 19,861 2020 9,942 2021 8,154 2022 2,563 Thereafter 2,201 Total intangible assets $ 131,496 |
Impairment of Long-Lived Assets
Impairment of Long-Lived Assets (Notes) | 3 Months Ended |
Sep. 24, 2016 | |
Property, Plant and Equipment Assets Held-for-sale Disclosure [Abstract] | |
Property, Plant and Equipment Disclosure [Text Block] | IMPAIRMENT OF LONG-LIVED ASSETS Fiscal year 2017: During the three months ended September 24, 2016 , the Company recorded $6.1 million in impairment of long-lived assets in the Company's Condensed Consolidated Statements of Income primarily associated with certain investments in privately held companies. The Company reached its conclusion regarding the asset impairment after the determination was made that due to factors during the three months ended September 24, 2016 , the financial condition of the privately held companies indicated an other than temporary impairment. During the second quarter of fiscal year 2016, the Company classified the micro-electromechanical systems (MEMS) business line, including associated tangible 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 quoted market prices of similar equipment and offers received. During the first quarter of fiscal year 2017, the Company completed the sale of this business line for approximately $42.2 million , resulting in a gain of $26.6 million , included in Other operating income (expenses), net in the Condensed Consolidated Statements of Income. 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 Condensed 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 Condensed 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 Condensed Consolidated Statements of Income. |
Restructuring Activities (Notes
Restructuring Activities (Notes) | 3 Months Ended |
Sep. 24, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | RESTRUCTURING ACTIVITIES Fiscal year 2017: During the three months ended September 24, 2016 , the Company recorded $10.0 million in “Severance and restructuring expenses” in the Condensed Consolidated Statements of Income related to various restructuring plans designed to reduce costs. These charges were associated with continued reorganization of certain business units and functions and the planned closure of the Dallas wafer level packaging (“WLP”) manufacturing facilities. Multiple job classifications and locations were impacted by these activities. As the Company plans to close its Dallas, Texas campus, including its WLP manufacturing facility in fiscal year 2017, the Company recorded accelerated depreciation charges of $1.6 million during the three months ended September 24, 2016 . As of September 24, 2016 , the Company expects to incur future restructuring costs of $2.7 million related to these restructuring plans. 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 was 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 “Cost of goods sold” and $0.4 million in “Severance and restructuring expenses” 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 “Severance 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 (“WLP”) 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 during the fiscal year ending June 25, 2016 . 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 three months ended September 24, 2016 : Balance, June 25, 2016 Three Months Ended September 24, 2016 Balance, September 24, 2016 Charges Cash Payments Change in Estimates (in thousands) Severance - All plans (1) $ 7,578 $ 10,105 $ (10,100 ) $ (140 ) $ 7,443 (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 (loss) per share as presented in the table below. Three Months Ended September 24, September 26, (in thousands, except per share data) Operating income (loss), as reported $ 172,073 $ (75,765 ) Operating income (loss), excluding accelerated depreciation expense 173,634 (32,134 ) Effect of change in estimate $ (1,561 ) $ (43,631 ) Net income (loss), as reported $ 137,614 $ (72,143 ) Net income (loss), excluding accelerated depreciation expense 139,081 (35,415 ) Effect of change in estimate $ (1,467 ) $ (36,728 ) Basic earnings (loss) per share, as reported $ 0.49 $ (0.25 ) Diluted earnings (loss) per share, as reported $ 0.48 $ (0.25 ) Basic earnings (loss) per share, excluding accelerated depreciation expense $ 0.49 $ (0.12 ) Diluted earnings (loss) per share, excluding accelerated depreciation expense $ 0.48 $ (0.12 ) Effect of change in estimate - basic earnings (loss) per share $ — $ (0.13 ) Effect of change in estimate - diluted earnings (loss) per share $ — $ (0.13 ) |
Balance Sheet Components (Table
Balance Sheet Components (Tables) | 3 Months Ended |
Sep. 24, 2016 | |
Balance Sheet Related Disclosures [Abstract] | |
Schedule of Inventory, Current [Table Text Block] | Inventories consist of: September 24, June 25, Inventories: (in thousands) Raw materials $ 7,164 $ 6,505 Work-in-process 143,872 148,762 Finished goods 72,448 72,662 $ 223,484 $ 227,929 |
Property, Plant and Equipment [Table Text Block] | Property, plant and equipment, net consists of: September 24, June 25, Property, plant and equipment, net: (in thousands) Land $ 18,952 $ 18,952 Buildings and building improvements 245,836 240,507 Machinery and equipment 1,370,245 1,370,322 1,635,033 1,629,781 Less: accumulated depreciation (956,586 ) (937,230 ) $ 678,447 $ 692,551 |
Schedule of Accounts Payable and Accrued Liabilities [Table Text Block] | Accrued salary and related expenses consist of: September 24, June 25, Accrued salary and related expenses: (in thousands) Accrued vacation $ 30,040 $ 30,753 Accrued bonus 29,303 90,638 Accrued severance and post-employment benefits 14,397 14,230 Accrued salaries 12,085 14,320 Other 25,301 16,757 $ 111,126 $ 166,698 |
Fair Value Measurements (Tables
Fair Value Measurements (Tables) | 3 Months Ended |
Sep. 24, 2016 | |
Fair Value Disclosures [Abstract] | |
Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis [Table Text Block] | Assets and liabilities measured at fair value on a recurring basis were as follows: As of September 24, 2016 As of June 25, 2016 Fair Value Measurements Using Total Balance Fair Value Measurements Using Total Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 (in thousands) Assets Money market funds (1) $ 1,626,233 $ — $ — $ 1,626,233 $ 1,658,321 $ — $ — $ 1,658,321 U.S. treasury bills (2) — 175,441 — 175,441 — 125,439 — 125,439 Foreign currency forward contracts (3) — 450 — 450 — 695 — 695 Investment in common stock (3) — 25,922 — 25,922 — 40,000 — 40,000 Certificates of deposit (1) — 70 — 70 — 70 — 70 Total Assets $ 1,626,233 $ 201,883 $ — $ 1,828,116 $ 1,658,321 $ 166,204 $ — $ 1,824,525 Liabilities Foreign currency forward contracts (4) $ — $ 555 $ — $ 555 $ — $ 1,327 $ — $ 1,327 Total Liabilities $ — $ 555 $ — $ 555 $ — $ 1,327 $ — $ 1,327 (1) Included in Cash and cash equivalents in the accompanying Condensed Consolidated Balance Sheets. (2) Included in Short-term investments in the accompanying Condensed Consolidated Balance Sheets. (3) Included in Other current assets in the accompanying Condensed Consolidated Balance Sheets. (4) Included in Accrued expenses in the accompanying Condensed Consolidated Balance Sheets. |
Financial Instruments (Tables)
Financial Instruments (Tables) | 3 Months Ended |
Sep. 24, 2016 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Available-for-sale investments [Table Text Block] | Fair values were as follows: September 24, 2016 June 25, 2016 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 $ 175,157 $ 284 $ — $ 175,441 $ 124,950 $ 489 $ — $ 125,439 Total available-for-sale investments $ 175,157 $ 284 $ — $ 175,441 $ 124,950 $ 489 $ — $ 125,439 |
Schedule of long-term debt [Table Text Block] | The following table summarizes the Company’s long-term debt: September 24, June 25, (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 250,000 250,000 Total 1,250,000 1,250,000 Less: Current portion (249,788 ) (249,717 ) Less: Reduction for unamortized discount and debt issuance costs (9,527 ) (10,193 ) Total long-term debt $ 990,685 $ 990,090 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Sep. 24, 2016 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Schedule of Employee Service Share-based Compensation, Allocation of Recognized Period Costs [Table Text Block] | The following tables show total stock-based compensation expense by type of award, and the resulting tax effect, included in the Condensed Consolidated Statements of Income for the three months ended September 24, 2016 and September 26, 2015 , respectively: Three Months Ended September 24, 2016 September 26, 2015 Stock Options Restricted Stock Units Employee Stock Purchase Plan Total Stock Options Restricted Stock Units Employee Stock Purchase Plan Total (in thousands) Cost of goods sold $ 180 $ 1,583 $ 484 $ 2,247 $ 335 $ 1,988 $ 559 $ 2,882 Research and development 222 6,696 1,218 8,136 870 5,874 1,297 8,041 Selling, general and administrative 642 5,476 619 6,737 818 4,626 596 6,040 Pre-tax stock-based compensation expense $ 1,044 $ 13,755 $ 2,321 $ 17,120 $ 2,023 $ 12,488 $ 2,452 $ 16,963 Less: income tax effect 3,067 2,762 Net stock-based compensation expense $ 14,053 $ 14,201 |
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 September 24, 2016 and their activity for the three months ended September 24, 2016 : Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term (in Years) Aggregate Intrinsic Value (1) Balance at June 25, 2016 5,935,079 $ 25.11 Options Granted — — Options Exercised (866,330 ) 22.97 Options Cancelled (200,203 ) 27.28 Balance at September 24, 2016 4,868,546 $ 25.39 2.9 $ 66,785,971 Exercisable, September 24, 2016 2,807,904 $ 23.32 2.2 $ 44,005,199 Vested and expected to vest, September 24, 2016 4,803,830 $ 25.32 2.9 $ 65,649,805 (1) Aggregate intrinsic value represents the difference between the exercise price and the closing price per share of the Company’s common stock on September 23, 2016, the last business day preceding the fiscal quarter-end, multiplied by the number of options outstanding, exercisable or vested and expected to vest as of September 24, 2016. |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Restricted Stock Units, Vested and Expected to Vest [Table Text Block] | The following table summarizes the outstanding and expected to vest RSUs and other awards as of September 24, 2016 and their activity during the three months ended September 24, 2016 : Number of Shares Weighted Average Aggregate Intrinsic Value (1) Balance at June 25, 2016 6,620,813 Restricted stock units and other awards granted 1,663,313 Restricted stock units and other awards released (406,051 ) Restricted stock units and other awards cancelled (387,698 ) Balance at September 24, 2016 7,490,377 3.0 $ 292,456,777 Outstanding and expected to vest, September 24, 2016 6,139,955 2.9 $ 239,396,837 (1) Aggregate intrinsic value for RSUs and other awards represents the closing price per share of the Company’s common stock on September 23, 2016, the last business day preceding the fiscal quarter-end, multiplied by the number of RSUs outstanding or expected to vest as of September 24, 2016. |
Schedule of Share-based Compensation Arrangement by Share-based Payment Award, Performance-Based Units, Vested and Expected to Vest [Table Text Block] | The following table summarizes the number of MSUs outstanding and expected to vest as of September 24, 2016 and their activity during the three months ended September 24, 2016 : Number of Shares Weighted Average Aggregate Intrinsic Value (1) Balance at June 25, 2016 673,532 Market stock units granted 308,432 Market stock units released — Market stock units cancelled (66,696 ) Balance at September 24, 2016 915,268 3.3 $ 35,686,299 Outstanding and expected to vest, September 24, 2016 738,080 3.3 $ 28,777,728 (1) Aggregate intrinsic value for MSUs represents the closing price per share of the Company’s common stock on September 23, 2016, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of September 24, 2016. |
Schedule of Share-based Payment Award, Employee Stock Purchase Plan, Valuation Assumptions [Table Text Block] | The fair value of ESPP rights granted to employees 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 Three Months Ended September 24, September 26, Expected holding period (in years) 0.5 0.5 Risk-free interest rate 0.5% 0.1% Expected stock price volatility 27.2% - 28.2% 21.8% - 23.8% Dividend yield 3.5% - 3.6% 3.3% - 3.5% |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 24, 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: Three Months Ended September 24, September 26, (in thousands, except per share data) Numerator for basic earnings (loss) per share and diluted earnings (loss) per share Net income (loss) $ 137,614 $ (72,143 ) Denominator for basic earnings (loss) per share 283,633 284,588 Effect of dilutive securities: Stock options, ESPP, RSUs, and MSUs 4,941 — Denominator for diluted earnings (loss) per share 288,574 284,588 Earnings (loss) per share Basic $ 0.49 $ (0.25 ) Diluted $ 0.48 $ (0.25 ) |
Segment Information (Tables)
Segment Information (Tables) | 3 Months Ended |
Sep. 24, 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: Three Months Ended September 24, September 26, (in thousands) United States $ 70,151 $ 62,060 China 213,510 224,237 Rest of Asia 174,368 169,934 Europe 89,638 91,903 Rest of World 13,729 14,376 $ 561,396 $ 562,510 |
Schedule of Long Lived Assets by Geographical Areas [Table Text Block] | Net long-lived assets by geographic region were as follows: September 24, June 25, (in thousands) United States $ 417,460 $ 423,653 Philippines 139,897 141,569 Rest of World 121,090 127,329 $ 678,447 $ 692,551 |
Comprehensive Income Loss (Tabl
Comprehensive Income Loss (Tables) | 3 Months Ended |
Sep. 24, 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 three months ended September 24, 2016 and September 26, 2015 were as follows: (in thousands) Unrealized Gains and Losses on Intercompany Receivables Unrealized Gains and Losses on Post-Retirement Benefits Cumulative Translation Adjustment Unrealized Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-For-Sale Securities Total June 25, 2016 $ (6,280 ) $ (6,800 ) $ (1,136 ) $ (492 ) $ 489 $ (14,219 ) Other comprehensive income (loss) before reclassifications — — — 448 4,245 4,693 Amounts reclassified out of accumulated other comprehensive loss (income) — 7,652 — 60 — 7,712 Tax effects — (2,805 ) — (122 ) (1,633 ) (4,560 ) Other comprehensive income (loss) — 4,847 — 386 2,612 7,845 September 24, 2016 $ (6,280 ) $ (1,953 ) $ (1,136 ) $ (106 ) $ 3,101 $ (6,374 ) (in thousands) Unrealized Gains and Losses on Intercompany Receivables Unrealized Gains and Losses on Post-Retirement Benefits Cumulative Translation Adjustment Unrealized Gains and Losses on Cash Flow Hedges Unrealized Gains and Losses on Available-For-Sale Securities Total June 27, 2015 $ (6,280 ) $ (10,004 ) $ (1,136 ) $ 53 $ 133 $ (17,234 ) Other comprehensive income (loss) before reclassifications — — — (382 ) 76 (306 ) Amounts reclassified out of accumulated other comprehensive loss (income) — 252 — (424 ) — (172 ) Tax effects — (80 ) — 192 — 112 Other comprehensive income (loss) — 172 — (614 ) 76 (366 ) September 26, 2015 $ (6,280 ) $ (9,832 ) $ (1,136 ) $ (561 ) $ 209 $ (17,600 ) |
Commitments and Contingencies
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 24, 2016 | |
Product Warranties Disclosures [Abstract] | |
Schedule of Product Warranty Liability [Table Text Block] | The changes in the Company’s aggregate product warranty liabilities for the three months ended September 24, 2016 and September 26, 2015 were as follows: Three Months Ended September 24, September 26, Product warranty liability (in thousands) Beginning balance 8,606 $ 13,436 Accruals for warranties 1,018 913 Payments (130 ) — Changes in estimate 111 (20 ) Ending balance $ 9,605 $ 14,329 Less: Current portion 9,605 10,029 Non-current portion $ — $ 4,300 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 3 Months Ended |
Sep. 24, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Useful lives of definite lived intangible assets [Table Text Block] | The useful lives of amortizable intangible assets are as follows: Asset Life Intellectual property 1-10 years Customer relationships 3-10 years Trade name 1-4 years Patents 5 years |
Schedule of intangible assets [Table Text Block] | Intangible assets consisted of the following: September 24, June 25, Original Cost Accumulated Amortization Net Original Cost Accumulated Amortization Net (in thousands) Intellectual property $ 451,885 $ 343,922 $ 107,963 $ 420,285 $ 331,321 $ 88,964 Customer relationships 115,634 94,657 20,977 115,634 92,744 22,890 Trade name 8,500 6,886 1,614 8,500 6,486 2,014 Patents 2,500 1,558 942 2,500 1,428 1,072 Total amortizable purchased intangible assets 578,519 447,023 131,496 546,919 431,979 114,940 IPR&D — — — 31,600 — 31,600 Total purchased intangible assets $ 578,519 $ 447,023 $ 131,496 $ 578,519 $ 431,979 $ 146,540 |
Schedule of amortization expense allocation of intangible assets [Table Text Block] | The following table presents the amortization expense of intangible assets and its presentation in the Condensed Consolidated Statements of Income: Three Months Ended September 24, September 26, (in thousands) Cost of goods sold $ 12,602 $ 16,638 Intangible asset amortization 2,443 3,591 Total intangible asset amortization expenses $ 15,045 $ 20,229 |
Estimated future amortization expense of intangible assets [Table Text Block] | The following table represents the estimated future amortization expense of intangible assets as of September 24, 2016 : Fiscal Year Amount (in thousands) Remaining nine months of 2017 $ 40,629 2018 48,146 2019 19,861 2020 9,942 2021 8,154 2022 2,563 Thereafter 2,201 Total intangible assets $ 131,496 |
Restructuring Activities (Table
Restructuring Activities (Tables) | 3 Months Ended |
Sep. 24, 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 three months ended September 24, 2016 : Balance, June 25, 2016 Three Months Ended September 24, 2016 Balance, September 24, 2016 Charges Cash Payments Change in Estimates (in thousands) Severance - All plans (1) $ 7,578 $ 10,105 $ (10,100 ) $ (140 ) $ 7,443 (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 (loss) per share as presented in the table below. Three Months Ended September 24, September 26, (in thousands, except per share data) Operating income (loss), as reported $ 172,073 $ (75,765 ) Operating income (loss), excluding accelerated depreciation expense 173,634 (32,134 ) Effect of change in estimate $ (1,561 ) $ (43,631 ) Net income (loss), as reported $ 137,614 $ (72,143 ) Net income (loss), excluding accelerated depreciation expense 139,081 (35,415 ) Effect of change in estimate $ (1,467 ) $ (36,728 ) Basic earnings (loss) per share, as reported $ 0.49 $ (0.25 ) Diluted earnings (loss) per share, as reported $ 0.48 $ (0.25 ) Basic earnings (loss) per share, excluding accelerated depreciation expense $ 0.49 $ (0.12 ) Diluted earnings (loss) per share, excluding accelerated depreciation expense $ 0.48 $ (0.12 ) Effect of change in estimate - basic earnings (loss) per share $ — $ (0.13 ) Effect of change in estimate - diluted earnings (loss) per share $ — $ (0.13 ) |
Recently Issued Accounting Pr32
Recently Issued Accounting Pronouncements (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Discrete income tax benefit generated by the settlement of share-based awards | $ 3,300 | |
Cash flow from operating activities operating activities | 123,402 | $ 117,339 |
Cash flow from financing activities | (136,631) | $ (118,687) |
ASU 2016-09 [Member] | Effect of Early Adoption of New Accounting Pronouncement [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Discrete income tax benefit generated by the settlement of share-based awards | 3,300 | |
Cash flow from operating activities operating activities | 3,300 | |
Cash flow from financing activities | (3,300) | |
Retained Earnings [Member] | ASU 2016-09 [Member] | Effect of Early Adoption of New Accounting Pronouncement [Member] | ||
New Accounting Pronouncement, Early Adoption [Line Items] | ||
Cumulative-effect adjustment | $ 1,400 |
Balance Sheet Components (Detai
Balance Sheet Components (Details) - USD ($) $ in Thousands | Sep. 24, 2016 | Jun. 25, 2016 |
Inventories: | ||
Raw materials | $ 7,164 | $ 6,505 |
Work-in-process | 143,872 | 148,762 |
Finished goods | 72,448 | 72,662 |
Inventory, net | 223,484 | 227,929 |
Property, plant and equipment: | ||
Land | 18,952 | 18,952 |
Buildings and building improvements | 245,836 | 240,507 |
Machinery and equipment | 1,370,245 | 1,370,322 |
Property, plant and equipment, gross | 1,635,033 | 1,629,781 |
Less: accumulated depreciation and amortization | (956,586) | (937,230) |
Property, plant and equipment, net | 678,447 | 692,551 |
Employee-related Liabilities, Current [Abstract] | ||
Accrued Vacation | 30,040 | 30,753 |
Accrued Bonuses | 29,303 | 90,638 |
Accrued severance and post-employment benefits | 14,397 | 14,230 |
Accrued Salaries | 12,085 | 14,320 |
Other | 25,301 | 16,757 |
Accrued salary and related expenses | $ 111,126 | $ 166,698 |
Fair Value Measurements (Detail
Fair Value Measurements (Details) - USD ($) $ in Thousands | 3 Months Ended | ||||
Sep. 24, 2016 | Jun. 25, 2016 | Sep. 26, 2015 | Jun. 27, 2015 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | $ 2,092,073 | $ 2,105,229 | $ 1,508,347 | $ 1,550,965 | |
Available-for-sale Securities | 175,441 | 125,439 | |||
Fair Value, Measurements, Nonrecurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Fair Value, Assets and Liabilities Measured on Nonrecurring Basis | 0 | ||||
Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | 70 | ||||
Total Assets | 1,828,116 | 1,824,525 | |||
Total Liabilities | 555 | 1,327 | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Assets | 1,626,233 | 1,658,321 | |||
Total Liabilities | 0 | 0 | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Assets | 201,883 | 166,204 | |||
Total Liabilities | 555 | 1,327 | |||
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Total Assets | 0 | 0 | |||
Total Liabilities | 0 | 0 | |||
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 1,626,233 | 1,658,321 | ||
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 1,626,233 | 1,658,321 | ||
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 0 | 0 | ||
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Cash and cash equivalents | [1] | 0 | 0 | ||
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | [2] | 175,441 | 125,439 | ||
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | [2] | 0 | 0 | ||
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | [2] | 175,441 | 125,439 | ||
US Treasury Securities [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Available-for-sale Securities | [2] | 0 | 0 | ||
Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | [3] | 450 | 695 | ||
Foreign currency forward contracts | [4] | 555 | 1,327 | ||
Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | [3] | 0 | 0 | ||
Foreign currency forward contracts | [4] | 0 | 0 | ||
Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | [3] | 450 | 695 | ||
Foreign currency forward contracts | [4] | 555 | 1,327 | ||
Foreign Exchange Forward [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | [3] | 0 | 0 | ||
Foreign currency forward contracts | [4] | 0 | 0 | ||
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | 25,922 | 40,000 | |||
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | 0 | 0 | |||
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | 25,922 | 40,000 | |||
Common Stock [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | 0 | 0 | |||
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | 70 | ||||
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | 0 | 0 | |||
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | 70 | 70 | |||
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | |||||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | |||||
Foreign currency forward contracts | $ 0 | $ 0 | |||
[1] | Included in Cash and cash equivalents in the accompanying Condensed Consolidated Balance Sheets. | ||||
[2] | Included in Short-term investments in the accompanying Condensed Consolidated Balance Sheets. | ||||
[3] | Included in Other current assets in the accompanying Condensed Consolidated Balance Sheets. | ||||
[4] | Included in Accrued expenses in the accompanying Condensed Consolidated Balance Sheets. |
Financial Instruments, Short-te
Financial Instruments, Short-term Investments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Sep. 24, 2016 | Jun. 27, 2015 | Jun. 25, 2016 | |
Available-for-sale Securities [Abstract] | |||
Amortized Cost | $ 175,157,000 | $ 124,950,000 | |
Gross Unrealized Gain | 284,000 | 489,000 | |
Gross Unrealized Loss | 0 | 0 | |
Estimated Fair Value | 175,441,000 | 125,439,000 | |
US Treasury Bills [Member] | |||
Available-for-sale Securities [Abstract] | |||
Amortized Cost | 175,157,000 | 124,950,000 | |
Gross Unrealized Gain | 284,000 | 489,000 | |
Gross Unrealized Loss | 0 | 0 | |
Estimated Fair Value | 175,441,000 | $ 125,439,000 | |
Short-Term Investment [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Impairment charges | $ 0 | $ 0 |
Financial Instruments Financial
Financial Instruments Financial Instruments, Securities Received as Consideration (Details) - USD ($) $ in Thousands | 3 Months Ended | |||
Sep. 24, 2016 | Sep. 26, 2015 | Jun. 25, 2016 | Mar. 26, 2016 | |
Investment [Line Items] | ||||
Shares received as consideration | $ 175,157 | $ 124,950 | ||
Proceeds from sale of shares | 24,540 | $ 0 | ||
Estimated Fair Value | 175,441 | 125,439 | ||
Gross Unrealized Gain | 284 | $ 489 | ||
Common Stock [Member] | ||||
Investment [Line Items] | ||||
Shares received as consideration | $ 40,000 | |||
Proceeds from sale of shares | 24,500 | |||
Estimated Fair Value | 25,900 | |||
Gross Unrealized Gain | 5,400 | |||
Gain realized upon sale of shares, payable | $ 6,000 |
Financial Instruments, Balance
Financial Instruments, Balance Sheet Location (Details) - USD ($) $ in Millions | Sep. 24, 2016 | Jun. 25, 2016 |
Derivatives designated as hedging instruments [Member] | Cash Flow Hedging [Member] | Forward contracts held to purchase U.S. dollars [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivatives | $ 55.4 | $ 68 |
Derivatives designated as hedging instruments [Member] | Cash Flow Hedging [Member] | Forward contracts held to sell U.S. dollars [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivatives | 2.3 | 2.6 |
Derivatives not designated as hedging instruments [Member] | Forward contracts held to purchase U.S. dollars [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivatives | 25.8 | 25.4 |
Derivatives not designated as hedging instruments [Member] | Forward contracts held to sell U.S. dollars [Member] | ||
Derivatives, Fair Value [Line Items] | ||
Notional amount of derivatives | $ 17 | $ 24.6 |
Financial Instruments, Long-ter
Financial Instruments, Long-term Debt (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||
Sep. 24, 2016 | Sep. 26, 2015 | Jun. 25, 2016 | Dec. 28, 2013 | Mar. 30, 2013 | |
Debt Instrument [Line Items] | |||||
Long-term debt | $ 1,250,000,000 | $ 1,250,000,000 | |||
Short-term Debt, Fair Value | 250,000,000 | 250,000,000 | |||
Long-term debt, current portion | (249,788,000) | (249,717,000) | |||
Debt Issuance Cost | (9,527,000) | $ (10,193,000) | |||
Long-term debt, excluding current portion | 990,685,000 | $ 990,090,000 | |||
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 | 9,100,000 | 7,300,000 | |||
Estimated fair value of long-term debt | 1,028,000,000 | ||||
Interest Expense | 9,800,000 | $ 8,200,000 | |||
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 | ||
Stated interest rate of the notes | 2.50% | 2.50% | |||
Effective interest rate of the Notes | 2.60% | ||||
Net Proceeds From Issuance of Long Term Debt 4 | $ 494,500,000 | ||||
Fixed 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 | ||
Stated interest rate of the notes | 3.375% | 3.375% | |||
Effective interest rate of the Notes | 3.50% | ||||
Net Proceeds From Issuance of Long Term Debt 4 | $ 490,000,000 |
Financial Instruments Financi39
Financial Instruments Financial Instruments, Credit Facility (Details) | 3 Months Ended | 12 Months Ended |
Sep. 24, 2016USD ($) | Jun. 25, 2016USD ($) | |
Debt Instrument [Line Items] | ||
Short-term Debt, Fair Value | $ 250,000,000 | $ 250,000,000 |
Short-term Debt | 249,788,000 | $ 249,717,000 |
Stated interest rate of the notes | 1.69% | |
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 | 3 |
Debt Instrument, Convenant Requirement, minimum interest coverage ratio | 3.5 | 3.5 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | $ 17,120 | $ 16,963 |
Less: Income tax effect | 3,067 | 2,762 |
Net stock-based compensation expense | 14,053 | 14,201 |
Cost of Sales [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 2,247 | 2,882 |
Research and Development Expense [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 8,136 | 8,041 |
General and Administrative Expense [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 6,737 | 6,040 |
Stock options [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 1,044 | 2,023 |
Stock options [Member] | Cost of Sales [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 180 | 335 |
Stock options [Member] | Research and Development Expense [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 222 | 870 |
Stock options [Member] | General and Administrative Expense [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 642 | 818 |
Restricted stock units [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 13,755 | 12,488 |
Restricted stock units [Member] | Cost of Sales [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 1,583 | 1,988 |
Restricted stock units [Member] | Research and Development Expense [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 6,696 | 5,874 |
Restricted stock units [Member] | General and Administrative Expense [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 5,476 | 4,626 |
ESP Plan [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 2,321 | 2,452 |
ESP Plan [Member] | Cost of Sales [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 484 | 559 |
ESP Plan [Member] | Research and Development Expense [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 1,218 | 1,297 |
ESP Plan [Member] | General and Administrative Expense [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | 619 | 596 |
Market stock units [Member] | ||
Share-based Compensation, Allocation and Classification in Financial Statements [Abstract] | ||
Allocated Share-based Compensation Expense | $ 600 | $ 500 |
Stock-Based Compensation, Fair
Stock-Based Compensation, Fair Value of Options (Details) | 3 Months Ended |
Sep. 24, 2016$ / shares | |
Stock options [Member] | |
Weighted-average Assumptions Used for Fair Value of Award Granted [Abstract] | |
Options granted, weighted average fair value of stock options (per share) | $ 0 |
Stock-Based Compensation, Stock
Stock-Based Compensation, Stock Option Plans (Details) - Stock options [Member] | 3 Months Ended | |
Sep. 24, 2016USD ($)$ / sharesshares | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | ||
Options outstanding, beginning | 5,935,079 | |
Options Granted | 0 | |
Options Exercised | (866,330) | |
Options Cancelled | (200,203) | |
Options outstanding, ending | 4,868,546 | |
Options exercisable, number of shares | 2,807,904 | |
Options vested and expected to vest, number of shares | 4,803,830 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding, Weighted Average Exercise Price [Abstract] | ||
Options outstanding, weighted average exercise price, beginning (per share) | $ / shares | $ 25.11 | |
Options granted, weighted average exercise price (per share) | $ / shares | 0 | |
Options exercised, weighted average exercise price (per share) | $ / shares | 22.97 | |
Options cancelled, weighted average exercise price (per share) | $ / shares | 27.28 | |
Options outstanding, weighted average exercise price, ending (per share) | $ / shares | 25.39 | |
Options exercisable, weighted average exercise price (per share) | $ / shares | 23.32 | |
Options vested and expected to vest, weighted average exercise price (per share) | $ / shares | $ 25.32 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Additional Disclosures [Abstract] | ||
Options outstanding, weighted average remaining contractual term (in years) | 2 years 10 months 24 days | |
Options exercisable, weighted average remaining contractual term (in years) | 2 years 2 months 12 days | |
Options vested and expected to vest, weighted average remaining contractual term (in years) | 2 years 10 months 24 days | |
Options outstanding, aggregate intrinsic value | $ | $ 66,785,971 | [1] |
Options exercisable, aggregate intrinsic value | $ | 44,005,199 | [1] |
Options vested and expected to vest, aggregate intrinsic value | $ | 65,649,805 | [1] |
Unrecognized compensation costs related to unvested units | $ | $ 4,900,000 | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 2,100,000 | |
Weighted average period of recognition for unrecognized compensation costs (in years) | 1 year 1 month 6 days | |
[1] | (1)Aggregate intrinsic value represents the difference between the exercise price and the closing price per share of the Company’s common stock on September 23, 2016, the last business day preceding the fiscal quarter-end, multiplied by the number of options outstanding, exercisable or vested and expected to vest as of September 24, 2016. |
Stock-Based Compensation, Restr
Stock-Based Compensation, Restricted Stock Units (Details) - Restricted stock units [Member] - USD ($) | 3 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Weighted average grant date fair value (per share) | $ 35.97 | $ 28.28 | |
Outstanding and expected to vest RSUs [Roll Forward] | |||
Outstanding, beginning | 6,620,813 | ||
Granted | 1,663,313 | ||
Released | (406,051) | ||
Cancelled | (387,698) | ||
Outstanding, ending | 7,490,377 | ||
Expected to vest, number of shares | 6,139,955 | ||
Outstanding, weighted average remaining contractual term (in years) | 3 years | ||
Restricted stock units vested and expected to vest, weighted average remaining contractual term 1 | 2 years 10 months 24 days | ||
Outstanding, aggregate intrinsic value | [1] | $ 292,456,777 | |
Restricted stock units expected to vest, aggregate intrinsic value | [1] | 239,396,837 | |
Value of restricted stock unit shares withheld for withholding tax | 5,200,000 | ||
Unrecognized compensation costs related to unvested units | $ 169,000,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 7,500,000 | ||
Weighted average period of recognition for unrecognized compensation costs (in years) | 3 years | ||
[1] | (1)Aggregate intrinsic value for RSUs and other awards represents the closing price per share of the Company’s common stock on September 23, 2016, the last business day preceding the fiscal quarter-end, multiplied by the number of RSUs outstanding or expected to vest as of September 24, 2016. |
Stock-Based Compensation Stock
Stock-Based Compensation Stock Based Compensation, Market Stock Units (Details) - Market Stock Units [Member] - USD ($) | 3 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | ||
Outstanding and expected to vest MSUs [Roll Forward] | |||
Weighted average grant date fair value (per share) | $ 37.29 | $ 29.64 | |
Outstanding, beginning | 673,532 | ||
Granted | 308,432 | ||
Released | 0 | ||
Cancelled | (66,696) | ||
Outstanding, ending | 915,268 | ||
Expected to vest, number of shares | 738,080 | ||
Outstanding, weighted average remaining contractual term (in years) | 3 years 3 months 18 days | ||
Outstanding and expected to Vest, weighted average remaining contractual term 3 | 3 years 3 months 18 days | ||
Outstanding, aggregate intrinsic value | [1] | $ 35,686,299 | |
Outstanding and expected to vest, aggregate intrinsic value | [1] | 28,777,728 | |
Unrecognized compensation costs related to unvested units | $ 21,300,000 | ||
Share-based Compensation Arrangement by Share-based Payment Award, Options, Nonvested, Number of Shares | 900,000 | ||
Weighted average period of recognition for unrecognized compensation costs (in years) | 3 years 3 months 18 days | ||
[1] | (1)Aggregate intrinsic value for MSUs represents the closing price per share of the Company’s common stock on September 23, 2016, the last business day preceding the fiscal quarter-end, multiplied by the number of MSUs outstanding or expected to vest as of September 24, 2016. |
Stock-Based Compensation, Emplo
Stock-Based Compensation, Employee Stock Purchase Plan (Details) - ESP Plan [Member] - USD ($) $ in Millions | 3 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Term | 6 months | 6 months |
Unrecognized compensation costs related to unvested units | $ 3.1 | $ 3.1 |
Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | 0.50% | 0.10% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 27.20% | 21.80% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 3.50% | 3.30% |
Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Risk-free interest rate | ||
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Volatility Rate | 28.20% | 23.80% |
Share-based Compensation Arrangement by Share-based Payment Award, Fair Value Assumptions, Expected Dividend Rate | 3.60% | 3.50% |
Earnings Per Share (Details)
Earnings Per Share (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Numerator for basic earnings per share and diluted earnings per share | ||
Net income | $ 137,614 | $ (72,143) |
Denominator for basic earnings per share | 283,633 | 284,588 |
Effect of dilutive securities | ||
Stock options, ESPP and RSUs | 4,941 | 0 |
Denominator for diluted earnings per share | 288,574 | 284,588 |
Earnings per share, Basic (per share) | $ 0.49 | $ (0.25) |
Earnings per share, Diluted (per share) | $ 0.48 | $ (0.25) |
Antidilutive securities excluded from computation of earnings per share | 0 | 5,700 |
Segment Information (Details)
Segment Information (Details) $ in Thousands | 3 Months Ended | ||
Sep. 24, 2016USD ($) | Jun. 25, 2016USD ($)customers | Sep. 26, 2015USD ($) | |
Segment Reporting Information [Line Items] | |||
Number of Reportable Segments | customers | 1 | ||
Revenues | $ 561,396 | $ 562,510 | |
Long-lived assets | 678,447 | $ 692,551 | |
United States [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 70,151 | 62,060 | |
Long-lived assets | 417,460 | 423,653 | |
China [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 213,510 | 224,237 | |
Rest of Asia [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 174,368 | 169,934 | |
Europe [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 89,638 | 91,903 | |
Philippines [Member] | |||
Segment Reporting Information [Line Items] | |||
Long-lived assets | 139,897 | 141,569 | |
Rest of World [Member] | |||
Segment Reporting Information [Line Items] | |||
Revenues | 13,729 | $ 14,376 | |
Long-lived assets | $ 121,090 | $ 127,329 |
Comprehensive Income Loss Accum
Comprehensive Income Loss Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ (14,219) | $ (17,234) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 4,693 | (306) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 7,712 | (172) |
Other Comprehensive Income (Loss), Tax | (4,560) | 112 |
Other Comprehensive Income (Loss), Net of Tax | 7,845 | (366) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (6,374) | (17,600) |
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) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 |
Other Comprehensive Income (Loss), Tax | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (6,280) | (6,280) |
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) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 7,652 | 252 |
Other Comprehensive Income (Loss), Tax | (2,805) | (80) |
Other Comprehensive Income (Loss), Net of Tax | 4,847 | 172 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,953) | (9,832) |
Accumulated Translation Adjustment [Member] | ||
Accumulated Other Comprehensive Income (Loss) [Line Items] | ||
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,136) | (1,136) |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 0 | 0 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 |
Other Comprehensive Income (Loss), Tax | 0 | 0 |
Other Comprehensive Income (Loss), Net of Tax | 0 | 0 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (1,136) | (1,136) |
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 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 448 | (382) |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 60 | (424) |
Other Comprehensive Income (Loss), Tax | (122) | 192 |
Other Comprehensive Income (Loss), Net of Tax | 386 | (614) |
Accumulated Other Comprehensive Income (Loss), Net of Tax | (106) | (561) |
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 |
Other Comprehensive Income (Loss), before Reclassifications, before Tax | 4,245 | 76 |
Reclassification from Accumulated Other Comprehensive Income, Current Period, before Tax | 0 | 0 |
Other Comprehensive Income (Loss), Tax | (1,633) | 0 |
Other Comprehensive Income (Loss), Net of Tax | 2,612 | 76 |
Accumulated Other Comprehensive Income (Loss), Net of Tax | $ 3,101 | $ 209 |
Income Taxes (Details)
Income Taxes (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Income Tax Disclosure [Abstract] | ||
Provision for income taxes | $ 27,589 | $ (10,024) |
Effective Income Tax Rate Reconciliation, Percent | 16.70% | 12.20% |
Effective Income Tax Rate Reconciliation, at Federal Statutory Income Tax Rate, Percent | 35.00% | |
Discrete income tax benefit generated by the settlement of share-based awards | $ 3,300 |
Commitments and Contingencies (
Commitments and Contingencies (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | ||
Product Warranty Accrual | $ 8,606 | $ 13,436 |
Product Warranty Accrual, Warranties Issued | 1,018 | 913 |
Product Warranty Accrual, Payments | (130) | 0 |
Product Warranty Accrual, Preexisting, Increase (Decrease) | 111 | (20) |
Product Warranty Accrual | 9,605 | 14,329 |
Product Warranty Accrual, Current | 9,605 | 10,029 |
Product Warranty Accrual, Noncurrent | $ 0 | $ 4,300 |
Common Stock Repurchases (Detai
Common Stock Repurchases (Details) - USD ($) shares in Millions, $ in Millions | 3 Months Ended | |
Sep. 24, 2016 | Jul. 31, 2013 | |
Common Stock Repurchases [Abstract] | ||
Stock repurchase program, authorized amount | $ 1,000 | |
Shares of common stock repurchased | 1.5 | |
Value of common stock repurchased | $ 57.7 | |
Stock repurchase program, remaining authorized amount | $ 272 |
Goodwill and Intangible Assets,
Goodwill and Intangible Assets, Goodwill (Details) $ in Thousands | 3 Months Ended |
Sep. 24, 2016USD ($) | |
Goodwill [Line Items] | |
Goodwill, Written off Related to Sale of Business Unit | $ 20,400 |
Goodwill and Intangible Asset53
Goodwill and Intangible Assets Useful Lives of Amortizable Intangible Assets (Details) | 3 Months Ended |
Sep. 24, 2016 | |
Intellectual property [Member] | Minimum [Member] | |
Amortizable intangible assets, useful life, minimum (in years) | 1 year |
Intellectual property [Member] | Maximum [Member] | |
Amortizable intangible assets, useful life, minimum (in years) | 10 years |
Customer relationships [Member] | Minimum [Member] | |
Amortizable intangible assets, useful life, minimum (in years) | 3 years |
Customer relationships [Member] | Maximum [Member] | |
Amortizable intangible assets, useful life, minimum (in years) | 10 years |
Tradename [Member] | Minimum [Member] | |
Amortizable intangible assets, useful life, minimum (in years) | 1 year |
Tradename [Member] | Maximum [Member] | |
Amortizable intangible assets, useful life, minimum (in years) | 4 years |
Patents [Member] | |
Amortizable intangible assets, useful life, minimum (in years) | 5 years |
Goodwill and Intangible Asset54
Goodwill and Intangible Assets, Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Sep. 24, 2016 | Sep. 26, 2015 | Jun. 25, 2016 | |
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Original Cost | $ 578,519 | $ 546,919 | |
Accumulated Amortization | 447,023 | 431,979 | |
Net | 131,496 | 114,940 | |
Intangible Assets, Gross | 578,519 | 578,519 | |
Total purchased intangible assets | 131,496 | 146,540 | |
Cost of goods sold, amortization | 12,602 | $ 16,638 | |
Amortization of Intangible Assets | 2,443 | 3,591 | |
Intangible Asset Amortization Expense | 15,045 | $ 20,229 | |
Future amortization expense [Abstract] | |||
Remaining three months of 2017 | 40,629 | ||
2,018 | 48,146 | ||
2,019 | 19,861 | ||
2,020 | 9,942 | ||
2,021 | 8,154 | ||
2,022 | 2,563 | ||
Thereafter | 2,201 | ||
Net | 131,496 | 114,940 | |
Intellectual property [Member] | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Original Cost | 451,885 | 420,285 | |
Accumulated Amortization | 343,922 | 331,321 | |
Net | 107,963 | 88,964 | |
Future amortization expense [Abstract] | |||
Net | 107,963 | 88,964 | |
Customer relationships [Member] | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Original Cost | 115,634 | 115,634 | |
Accumulated Amortization | 94,657 | 92,744 | |
Net | 20,977 | 22,890 | |
Future amortization expense [Abstract] | |||
Net | 20,977 | 22,890 | |
Tradename [Member] | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Original Cost | 8,500 | 8,500 | |
Accumulated Amortization | 6,886 | 6,486 | |
Net | 1,614 | 2,014 | |
Future amortization expense [Abstract] | |||
Net | $ 1,614 | 2,014 | |
Patents [Member] | |||
Finite and Indefinite Lived Intangible Assets [Line Items] | |||
Amortizable intangible assets, useful life, minimum (in years) | 5 years | ||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
Original Cost | $ 2,500 | 2,500 | |
Accumulated Amortization | 1,558 | 1,428 | |
Net | 942 | 1,072 | |
Future amortization expense [Abstract] | |||
Net | 942 | 1,072 | |
In Process Research and Development [Member] | |||
Intangible Assets, Net (Excluding Goodwill) [Abstract] | |||
IPR&D | $ 0 | $ 31,600 |
Impairment of Long-Lived Asse55
Impairment of Long-Lived Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Sep. 24, 2016 | Dec. 26, 2015 | Sep. 26, 2015 | Jun. 25, 2016 | |
Long Lived Assets Held-for-sale [Line Items] | ||||
Asset Impairment Charges | $ 6,100 | $ 160,582 | ||
Impairment of Long-Lived Assets to be Disposed of | 6,134 | $ 157,697 | ||
Proceeds from Sale of Other Property, Plant, and Equipment | 25,922 | 0 | ||
Gain (Loss) on Disposition of Property Plant Equipment | (652) | 1,346 | ||
Gain (Loss) on Disposition of Business | 26,620 | $ 0 | ||
MEMS [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Proceeds from Sale of Other Property, Plant, and Equipment | 42,200 | |||
Gain (Loss) on Disposition of Property Plant Equipment | 26,600 | |||
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 | |||
Energy Metering Business [Member] | ||||
Long Lived Assets Held-for-sale [Line Items] | ||||
Gain (Loss) on Disposition of Business | $ 58,900 |
Restructuring Activities (Detai
Restructuring Activities (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Sep. 24, 2016 | Jun. 25, 2016 | ||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Expected Cost | $ 2,700 | ||
San Jose Fab Shutdown Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring and Related Cost, Cost Incurred to Date | $ 100,300 | ||
Other Restructuring Plans [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Restructuring Reserve | 7,578 | ||
Severance and restructuring expenses | 10,105 | ||
Payments for Restructuring | (10,100) | ||
Restructuring Reserve, Accrual Adjustment | (140) | ||
Restructuring Reserve | 7,443 | [1] | 7,578 |
WLP Accelerated Depreciation [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Severance and restructuring expenses | 1,600 | ||
WLP Accelerated Depreciation [Member] | Other Restructuring Plans [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Severance and restructuring expenses | 13,000 | ||
Accelerated Depreciation [Member] | San Jose Fab Shutdown Plan [Member] | |||
Restructuring Reserve [Roll Forward] | |||
Severance and restructuring expenses | 41,600 | ||
Employee Severance [Member] | San Jose Fab Shutdown Plan [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charge, Charges and Change in Estimates | 400 | ||
Employee Severance [Member] | Other Restructuring Plans [Member] | |||
Restructuring Cost and Reserve [Line Items] | |||
Restructuring Charge, Charges and Change in Estimates | $ 10,000 | $ 24,000 | |
[1] | Charges and change in estimates are included in Severance and restructuring expenses in the accompanying Condensed Consolidated Statements of Income. |
Restructuring Activities Change
Restructuring Activities Change in Estimate (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Sep. 24, 2016 | Sep. 26, 2015 | |
Change in Accounting Estimate [Line Items] | ||
Operating Income (Loss) | $ 172,073 | $ (75,765) |
Net income | $ 137,614 | $ (72,143) |
Basic (per share) | $ 0.49 | $ (0.25) |
Diluted (per share) | $ 0.48 | $ (0.25) |
Service Life [Member] | ||
Change in Accounting Estimate [Line Items] | ||
Operating Income (Loss) | $ (1,561) | $ (43,631) |
Operating Income (Loss), Excluding Accelerated Depreciation Expense | 173,634 | (32,134) |
Net income | (1,467) | (36,728) |
Net Income (Loss), Excluding Accelerated Depreciation Expense | $ 139,081 | $ (35,415) |
Basic (per share) | $ 0.49 | $ (0.12) |
Diluted (per share) | 0.48 | (0.12) |
Decrease in basic earnings per share | 0 | (0.13) |
Decrease in Diluted Earnings Per Share | $ 0 | $ (0.13) |