Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Jun. 25, 2016 | Aug. 16, 2016 | Dec. 24, 2015 | |
Document And Entity Information [Abstract] | |||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Jun. 25, 2016 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Entity Registrant Name | SYNAPTICS INCORPORATED | ||
Trading Symbol | SYNA | ||
Entity Central Index Key | 817,720 | ||
Current Fiscal Year End Date | --06-25 | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Current Reporting Status | Yes | ||
Entity Voluntary Filers | No | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Common Stock, Shares Outstanding | 34,811,465 | ||
Entity Public Float | $ 2,620,455,219 |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Millions | Jun. 25, 2016 | Jun. 27, 2015 |
Current Assets: | ||
Cash and cash equivalents | $ 352.2 | $ 399.9 |
Accounts receivable, net of allowances of $3.7 and $2.9 at June 2016 and 2015, respectively | 252.6 | 324.6 |
Inventories | 146.4 | 140.2 |
Prepaid expenses and other current assets | 28.9 | 51.3 |
Total current assets | 780.1 | 916 |
Property and equipment, net | 112.7 | 123.4 |
Goodwill | 206.8 | 206.8 |
Acquired intangibles, net | 160.3 | 235.4 |
Non-current other assets | 40.3 | 37.8 |
Total assets | 1,300.2 | 1,519.4 |
Current Liabilities: | ||
Accounts payable | 172.8 | 188.5 |
Accrued compensation | 39.9 | 35.9 |
Income taxes payable | 11.5 | 34.7 |
Acquisition-related liabilities | 25.5 | 102.2 |
Other accrued liabilities | 82.3 | 74.1 |
Current portion of long-term debt | 18.8 | 11.3 |
Total current liabilities | 350.8 | 446.7 |
Long-term debt, net of issuance costs | 216.7 | 231.1 |
Acquisition-related liabilities | 6.2 | |
Deferred tax liabilities | 9 | 33.9 |
Other long-term liabilities | 12.5 | 14.6 |
Total liabilities | 595.2 | 726.3 |
Commitments and contingencies | ||
Stockholders' Equity: | ||
Preferred stock: $0.001 par value; 10,000,000 shares authorized; no shares issued and outstanding | ||
Common stock: $0.001 par value; 120,000,000 shares authorized, 59,532,148 and 58,249,107 shares issued, and 35,212,141 and 37,529,608 shares outstanding, at June 2016 and 2015, respectively | 0.1 | 0.1 |
Additional paid-in capital | 928.6 | 843.8 |
Treasury stock: 24,320,007 and 20,719,499 common shares at June 2016 and 2015, respectively, at cost | (892.3) | (651.7) |
Accumulated other comprehensive income | 3.3 | 7.8 |
Retained earnings | 665.3 | 593.1 |
Total stockholders' equity | 705 | 793.1 |
Liabilities and stockholders' equity | $ 1,300.2 | $ 1,519.4 |
Consolidated Balance Sheets (Pa
Consolidated Balance Sheets (Parenthetical) - USD ($) $ in Millions | Jun. 25, 2016 | Jun. 27, 2015 |
Statement Of Financial Position [Abstract] | ||
Allowance for doubtful accounts receivable | $ 3.7 | $ 2.9 |
Preferred stock, par value | $ 0.001 | $ 0.001 |
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $ 0.001 | $ 0.001 |
Common stock, shares authorized | 120,000,000 | 120,000,000 |
Common stock, shares issued | 59,532,148 | 58,249,107 |
Common stock, shares outstanding | 35,212,141 | 37,529,608 |
Common treasury shares | 24,320,007 | 20,719,499 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Income Statement [Abstract] | |||
Net revenue | $ 1,666.9 | $ 1,703 | $ 947.5 |
Cost of revenue | 1,085.4 | 1,124.3 | 511.4 |
Gross margin | 581.5 | 578.7 | 436.1 |
Operating expenses: | |||
Research and development | 311.2 | 293.2 | 192.7 |
Selling, general, and administrative | 161.7 | 127.9 | 100 |
Acquired intangibles amortization | 18.6 | 14.2 | 1 |
Impairment of acquired intangibles | 6.7 | ||
Change in contingent consideration | (0.5) | (18.8) | 69.9 |
Restructuring costs | 8.6 | ||
Total operating expenses | 506.3 | 416.5 | 363.6 |
Operating income | 75.2 | 162.2 | 72.5 |
Interest and other income | 3.1 | 1.6 | 2 |
Interest expense | (4.8) | (3.8) | |
Impairment recovery on investments, net | 2.1 | 0.2 | |
Income before provision for income taxes | 75.6 | 160.2 | 74.5 |
Provision for income taxes | 3.4 | 49.8 | 27.8 |
Net income | $ 72.2 | $ 110.4 | $ 46.7 |
Net income per share: | |||
Basic | $ 1.97 | $ 2.99 | $ 1.34 |
Diluted | $ 1.91 | $ 2.84 | $ 1.26 |
Shares used in computing net income per share: | |||
Basic | 36.6 | 36.9 | 34.8 |
Diluted | 37.9 | 38.9 | 37.1 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Statement Of Income And Comprehensive Income [Abstract] | |||
Net income | $ 72.2 | $ 110.4 | $ 46.7 |
Other comprehensive income: | |||
Change in unrealized net gain on investments | (2.7) | 0.8 | 2.8 |
Reclassification from accumulated other comprehensive income to interest income for accretion of non-current investments | (1.8) | (1.5) | (1.1) |
Net current-period other comprehensive income | (4.5) | (0.7) | 1.7 |
Comprehensive income | $ 67.7 | $ 109.7 | $ 48.4 |
Consolidated Statements of Stoc
Consolidated Statements of Stockholders Equity - USD ($) $ in Millions | Total | Common Stock [Member] | Additional Paid-in Capital [Member] | Treasury Stock [Member] | Accumulated Other Comprehensive Income [Member] | Retained Earnings [Member] |
Balance, value at Jun. 29, 2013 | $ 521.9 | $ 0.1 | $ 539.2 | $ (460.2) | $ 6.8 | $ 436 |
Balance, shares at Jun. 29, 2013 | 50,673,758 | |||||
Net income | 46.7 | 46.7 | ||||
Other comprehensive income | 1.7 | 1.7 | ||||
Issuance of common stock for share- based award compensation plans | 80.7 | 80.7 | ||||
Issuance of common stock for share-based award compensation plans, shares | 3,534,142 | |||||
Issuance of common stock for acquisition | 75.8 | 75.8 | ||||
Issuance of common stock for acquisition, shares | 1,671,904 | |||||
Issuance of common stock for conversion of notes payable, shares | 31,709 | |||||
Payroll taxes for deferred stock units | (8.9) | (8.9) | ||||
Purchases of treasury stock | (70.2) | (70.2) | ||||
Tax benefit associated with share-based awards | 20.6 | 20.6 | ||||
Share-based compensation | 32.9 | 32.9 | ||||
Balance, value at Jun. 28, 2014 | 701.2 | $ 0.1 | 740.3 | (530.4) | 8.5 | 482.7 |
Balance, shares at Jun. 28, 2014 | 55,911,513 | |||||
Net income | 110.4 | 110.4 | ||||
Other comprehensive income | (0.7) | (0.7) | ||||
Issuance of common stock for share- based award compensation plans | 49.1 | 49.1 | ||||
Issuance of common stock for share-based award compensation plans, shares | 2,093,631 | |||||
Issuance of common stock for acquisition | 21.5 | 21.5 | ||||
Issuance of common stock for acquisition, shares | 243,963 | |||||
Payroll taxes for deferred stock units | (16) | (16) | ||||
Purchases of treasury stock | (121.3) | (121.3) | ||||
Tax benefit associated with share-based awards | 4.8 | 4.8 | ||||
Share-based compensation | 44.1 | 44.1 | ||||
Balance, value at Jun. 27, 2015 | 793.1 | $ 0.1 | 843.8 | (651.7) | 7.8 | 593.1 |
Balance, shares at Jun. 27, 2015 | 58,249,107 | |||||
Net income | 72.2 | 72.2 | ||||
Other comprehensive income | (4.5) | (4.5) | ||||
Issuance of common stock for share- based award compensation plans | 32.4 | 32.4 | ||||
Issuance of common stock for share-based award compensation plans, shares | 1,283,041 | |||||
Payroll taxes for deferred stock units | (15.6) | (15.6) | ||||
Purchases of treasury stock | (240.6) | (240.6) | ||||
Tax benefit associated with share-based awards | 11.2 | 11.2 | ||||
Share-based compensation | 56.8 | 56.8 | ||||
Balance, value at Jun. 25, 2016 | $ 705 | $ 0.1 | $ 928.6 | $ (892.3) | $ 3.3 | $ 665.3 |
Balance, shares at Jun. 25, 2016 | 59,532,148 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Cash flows from operating activities | |||
Net income | $ 72.2 | $ 110.4 | $ 46.7 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Share-based compensation costs | 56.8 | 44.1 | 32.9 |
Depreciation and amortization | 31.2 | 24.8 | 14.2 |
Acquired intangibles amortization | 73 | 87.6 | 7.4 |
Accretion and remeasurement of contingent consideration liability | (0.5) | (18.8) | 69.9 |
Deferred taxes | (21.1) | (25.2) | 12.3 |
Impairment of property and equipment | 3 | 1 | |
Impairment of acquired intangibles | 6.7 | ||
Non-cash interest | (1.8) | (1.5) | (1.1) |
Amortization of debt issuance costs | 1 | 0.8 | |
Impairment recovery on investments, net | (2.1) | (0.2) | |
Foreign currency remeasurement (gain)/loss | 8.2 | (8) | |
Changes in operating assets and liabilities, net of acquisitions: | |||
Accounts receivable, net | 72 | 0.7 | (42.8) |
Inventories | (6.2) | (51.5) | (30.2) |
Prepaid expenses and other current assets | 5.8 | 13.5 | (5.7) |
Other assets | 5.6 | 10.1 | (18.8) |
Accounts payable | (15.3) | 30.2 | 13.2 |
Accrued compensation | 3.3 | 2.1 | 5.6 |
Acquisition related liabilities | (18.2) | (1.9) | |
Income taxes payable | (26.1) | (7.1) | 2.9 |
Other accrued liabilities | 9.1 | (7) | 25.1 |
Net cash provided by operating activities | 256.6 | 204.1 | 131.6 |
Cash flows from investing activities | |||
Proceeds from sales of investments | 6.6 | 4.9 | |
Acquisition of businesses, net of cash acquired | (294.3) | (19.6) | |
Purchases of property and equipment | (28.6) | (51.9) | (38.7) |
Purchase of intangible assets | (4.6) | ||
Net cash used in investing activities | (26.6) | (341.3) | (58.3) |
Cash flows from financing activities | |||
Payment of acquisition-related liabilities | (60.9) | (72.2) | |
Payment of debt | (7.6) | (3.8) | (2.3) |
Purchases of treasury stock | (240.6) | (121.3) | (70.2) |
Proceeds from issuance of shares | 32.4 | 49.1 | 80.7 |
Proceeds from issuance of long-term debt | 245.4 | ||
Payment of debt issuance costs | (0.3) | (0.4) | |
Excess tax benefit from share-based compensation | 11.5 | 12.8 | 19.3 |
Payroll taxes for deferred stock and market stock units | (15.6) | (16) | (8.9) |
Net cash provided by/(used in) financing activities | (281.1) | 93.6 | 18.6 |
Effect of exchange rate changes on cash and cash equivalents | 3.4 | (3.7) | |
Net increase/(decrease) in cash and cash equivalents | (47.7) | (47.3) | 91.9 |
Cash and cash equivalents at beginning of period | 399.9 | 447.2 | 355.3 |
Cash and cash equivalents at end of period | 352.2 | 399.9 | 447.2 |
Supplemental disclosures of cash flow information | |||
Cash paid for interest | 5 | 3.1 | |
Cash paid for taxes | 46.9 | 86.1 | 15.6 |
Cash refund on taxes | 18 | 3.4 | |
Non-cash investing and financing activities: | |||
Property and equipment received but unpaid | $ 3.1 | 8.2 | 3.3 |
Common stock issued pursuant to acquisition | 70.3 | ||
Contingent consideration liability pursuant to acquisition | 37.5 | ||
Common stock issued in settlement of contingent consideration liability | $ 21.5 | 5.5 | |
Common stock issued upon conversion of notes payable | $ 1.8 |
Organization and Summary of Sig
Organization and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 25, 2016 | |
Accounting Policies [Abstract] | |
Organization and Summary of Significant Accounting Policies | 1. Organization and Summary of Significant Accounting Policies Organization and Basis of Presentation We are a leading worldwide developer and supplier of custom-designed human interface semiconductor product solutions that enable people to interact more easily and intuitively with a wide variety of mobile computing, communications, entertainment, and other electronic devices. We currently generate revenue from the markets for smartphones, tablets, personal computer, or PC, products, primarily notebook computers; and other select electronic devices, including devices in automobiles. Every solution we deliver either contains or consists of our touch- or fingerprint-based semiconductor solutions, which includes our capacitive sensing ASIC, customer-specific firmware, and software, or a driver-based semiconductor solution which includes our capacitive sensing ASIC. Our original equipment manufacturer, or OEM, customers include many of the world’s largest OEMs for smartphones and most of the largest PC OEMs. The consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and include our financial statements and those of our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. Our fiscal year is the 52- or 53-week period ending on the last Saturday in June. The fiscal years presented in this report were 52-week periods ended June 25, 2016, June 27, 2015 and June 28, 2014. For simplicity, the accompanying consolidated financial statements have been shown as fiscal year periods and as of the end of our fiscal year ending in June. Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to revenue, allowance for doubtful accounts, cost of revenue, inventories, loss on purchase commitments, product warranty, accrued liabilities, share-based compensation costs, provision for income taxes, deferred income tax asset valuation allowances, uncertain tax positions, goodwill, intangible assets, investments, contingent consideration liability and loss contingencies. We base our estimates on historical experience, applicable laws and regulations, and various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. Cash Equivalents and Investments Cash equivalents consist of highly liquid investments with original maturities of three months or less. Our non-current investments, which are included in non-current other assets in the consolidated balance sheets, consist of ARS investments and are reported at fair value, with unrealized gains and losses excluded from earnings and shown separately as a component of accumulated other comprehensive income within stockholders’ equity. We charge other-than-temporary declines in the fair value of a debt security to earnings if the decline is due to a credit loss or if we intend to or need to sell at a loss, resulting in the establishment of a new cost basis in the debt security. We charge other-than-temporary declines in the fair value of a debt security to other comprehensive income if the decline is due to a noncredit loss. We charge other-than-temporary declines in the fair value of an equity security to earnings. We include interest earned and accretion on securities in interest income. We determine realized gains and losses on the sale of securities using the specific identification method. Our cash equivalents and investments classified as available-for-sale securities as of the end of fiscal 2016 and 2015 were as follows (in millions): 2016 Gross Amortized Unrealized Fair Cost Gains Value Reported as cash equivalents: Money market funds $ 319.1 $ — $ 319.1 Reported as non-current assets: Auction rate securities 5.3 3.3 8.6 Total available-for-sale securities $ 324.4 $ 3.3 $ 327.7 2015 Gross Amortized Unrealized Fair Cost Gains Value Reported as cash equivalents: Money market funds $ 376.3 $ — $ 376.3 Reported as current assets: Auction rate securities 0.6 — 0.6 Reported as non-current assets: Auction rate securities 7.3 7.9 15.2 Total available-for-sale securities $ 384.2 $ 7.9 $ 392.1 Fair Value We measure certain financial assets and liabilities at fair value. When we measure fair value on either a recurring or nonrecurring basis, inputs used in valuation techniques are assigned a hierarchical level as follows: · Level 1 inputs are observable inputs that reflect quoted prices for identical assets or liabilities in active markets. · Level 2 inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. · Level 3 inputs are unobservable inputs reflecting our assumptions, which are incorporated into valuation techniques and models used to determine fair value. The assumptions are consistent with market participant assumptions that are reasonably available. Financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the end of fiscal 2016 and 2015 were as follows (in millions): 2016 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Money market $ 319.1 $ — $ — $ 376.3 $ — $ — Auction rate securities — — 8.6 — — 15.8 Total available-for-sale securities $ 319.1 $ — $ 8.6 $ 376.3 $ — $ 15.8 Liabilities: Contingent consideration liabilities recorded for business combination $ — $ — $ — $ — $ — $ 44.2 Foreign currency contract liabilities $ — $ — $ — $ — $ 1.3 $ — The valuation of our auction rate securities is discussed in Note 3. We utilized Level 2 inputs to value the foreign currency forward contracts. Specifically, we utilized quoted prices for similar assets and liabilities in markets that are not active. Key inputs for valuing the foreign currency forward contracts include spot rates and yield curves for the respective currencies. The foreign currency contracts were included in other accrued liabilities as of June 30, 2015, and there were no foreign currency contracts outstanding as of June 30, 2016. In connection with the acquisition of Validity Sensors, Inc., or Validity, we entered into a contingent consideration arrangement. As of June 30, 2016, the balance represents a contractual liability which is no longer subject to valuation as the carrying amount approximates the fair value. The balance represents amounts we have not paid and have retained, subject to resolution of the Amkor Technology legal dispute (see legal proceedings under Note 8). We have classified the contingent consideration liabilities recorded for business acquisitions as a Level 3 liability, of which zero and $0.5 million is included in the non-current portion of acquisition-related liabilities as of the end of fiscal 2016 and 2015, respectively, and zero and $43.7 million has been included in current acquisition-related liabilities as of the end of fiscal 2016 and 2015, respectively. These fair value measurements are based on significant inputs not observable in the market. Changes in fair value of our Level 3 financial assets for fiscal 2016 and 2015 were as follows (in millions): 2016 2015 Beginning balance $ 15.8 $ 19.8 Net unrealized gain/(loss) (2.7 ) 0.9 Impairment recovery on redeemed investments 2.1 — Redemptions (6.6 ) (4.9 ) Ending balance $ 8.6 $ 15.8 Changes in fair value of our Level 3 financial liabilities for fiscal 2016 and 2015 were as follows (in millions): 2016 2015 Beginning balance $ 44.2 $ 110.1 Cash settlement of contingent consideration liability (18.2 ) (25.6 ) Issuance of common stock in settlement of liability — (21.5 ) Accretion and remeasurement (0.5 ) (18.8 ) Transfer out (25.5 ) — Ending balance $ — $ 44.2 There were no transfers in or out of our Level 1 or 2 assets or liabilities during fiscal 2016 or 2015. During fiscal 2016 we transferred $25.5 million of contingent consideration liability out of our Level 3 liabilities, as the underlying contingencies were resolved and it became a contractual liability as of the end of fiscal 2016. The carrying value of $25.5 million approximates fair value, and has been included in current acquisition-related liabilities as of the end of fiscal 2016. The fair values of our accounts receivable and accounts payable approximate their carrying values because of the short-term nature of those instruments. Intangible assets, property and equipment, and goodwill are measured at fair value on a non-recurring basis if impairment is indicated. The interest rate on our bank debt is variable, which is subject to change from time to time to reflect a market interest rate; accordingly, the carrying value of our bank debt approximates fair value. Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, investments, and accounts receivable. Our investment policy, which is predicated on capital preservation and liquidity, limits investments to U.S. government treasuries and agency issues, taxable securities, and municipal issued securities with a minimum rating of A1 (Moody’s) or P1 (Standard and Poor’s) or equivalent. Included within our investment portfolio are investments in ARS investments, which met our investment guidelines at the time of our investment. Our ARS investments are currently not liquid as a result of continued auction failures. We sell our products to contract manufacturers that provide manufacturing services for OEMs, and to some OEMs directly. We extend credit based on an evaluation of a customer’s financial condition, and we generally do not require collateral. The following customers accounted for more than 10% of our accounts receivable balance as of the end of fiscal 2016 and 2015: 2016 2015 Customer A 14% 13% Customer B 13% 13% Customer C 12% 20% Customer D 11% * Customer E 10% 13% * Less than 10% Other Concentrations Our products include certain components that are currently single sourced. We believe other vendors would be able to provide similar components, however, the qualification of such vendors may require extra lead time. In order to mitigate any adverse impacts from a disruption of supply, we strive to maintain an adequate supply of critical single-sourced components. Revenue Recognition We recognize revenue from product sales when there is persuasive evidence that an arrangement exists, delivery has occurred and title has transferred, the price is fixed or determinable, and collection is reasonably assured. We accrue for estimated sales returns, incentives and other allowances at the time we recognize revenue. Our products contain embedded firmware and software, which together with, or consisting of, our ASIC chip, deliver the essential functionality of our products and, as such, software revenue recognition guidance is not applicable. Our sales to distributors are made under agreements that generally do not provide for price adjustments after purchase and provide for only limited return rights under product warranty. Revenue on these sales is recognized in the same manner as sales to our non-distributor customers. When sales rebates and price allowances are applicable they are estimated and recorded in the period the related revenue is recognized. Advertising Costs Advertising costs, if any, are expensed when incurred. Allowance for Doubtful Accounts We maintain allowances for doubtful accounts for estimated losses resulting from the inability of customers to meet their financial obligations. On an ongoing basis, we evaluate the collectability of accounts receivable based on a combination of factors. In circumstances in which we are aware of a specific customer’s potential inability to meet its financial obligation, we record a specific reserve of the bad debt against amounts due. In addition, we make judgments and estimates on the collectability of accounts receivable based on our historical bad debt experience, customers’ creditworthiness, current economic trends, recent changes in customers’ payment trends, and deterioration in customers’ operating results or financial position. If circumstances change adversely, additional bad debt allowances may be required. For all periods presented, credit losses on our accounts receivable have been insignificant, and we believe that an adequate allowance for doubtful accounts has been provided. Cost of Revenue Our cost of revenue includes the cost of products shipped to our customers, which primarily includes the cost of products built to our specifications by our contract manufacturers, the cost of silicon wafers supplied by independent semiconductor wafer manufacturers, and the related assembly, package, and test costs of our products. Also included in our cost of revenue are personnel and related costs, including share-based compensation, for quality assurance and manufacturing support personnel; logistics costs; depreciation of equipment supporting manufacturing; acquired intangibles amortization; inventory write-downs and losses on purchase obligations; and warranty costs. Inventories Inventories are stated at the lower of cost (first-in, first-out method) or market (estimated net realizable value) as of the end of fiscal 2016 and 2015 and consisted of the following (in millions): 2016 2015 Raw materials $ 59.2 $ 75.5 Finished goods 87.2 64.7 $ 146.4 $ 140.2 We record a write-down, if necessary, to reduce the carrying value of inventory to its net realizable value. The effect of these write-downs is to establish a new cost basis in the related inventory, which we do not subsequently write up. We also record a liability and charge to cost of revenue for estimated losses on inventory we are obligated to purchase from our contract manufacturers when such losses become probable from customer delays, order cancellations, or other factors. Property and Equipment We state property and equipment at cost less accumulated depreciation and amortization. We compute depreciation using the straight-line method over the estimated useful lives of the assets. We amortize leasehold improvements over the shorter of the lease term or the useful life of the asset. Foreign Currency The U.S. dollar is our functional and reporting currency. We remeasure our monetary assets and liabilities not denominated in the functional currency into U.S. dollar equivalents at the rate of exchange in effect on the balance sheet date. We measure and record non-monetary balance sheet accounts at the historical rate in effect at the date of transaction. We remeasure foreign currency expenses at the weighted average exchange rate in the month that the transaction occurred. These foreign currency transactions and remeasurement gains and losses, resulted in a net loss of $5.8 million in fiscal 2016, a net gain of $14.7 million in 2015, and were immaterial in fiscal 2014. Gains and losses resulting from foreign currency transactions are included in selling, general, and administrative expenses in the consolidated statements of income. We also enter into foreign currency contracts to manage exposure related to certain foreign currency obligations. The foreign currency contracts are not designated as hedging instruments and, accordingly, are not subject to hedge accounting. In fiscal year 2015, we entered into foreign currency forward contracts to purchase Japanese yen, using U.S. dollars. As of June 30, 2016, we had no outstanding foreign currency forward contracts. In fiscal 2016, we recognized net realized gains of $4.8 million and in fiscal 2015, we recognized net unrealized losses of $1.3 million on the foreign currency forward contracts, which are recorded in selling, general, and administrative expenses in the condensed consolidated statements of income. Goodwill Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired. Changes in our goodwill balance for fiscal 2016 and 2015 were as follows (in millions): 2016 2015 Beginning balance $ 206.8 $ 61.0 Acquisition activity - 153.4 Post acquisition adjustments - (7.6 ) Ending balance $ 206.8 $ 206.8 We have allocated our goodwill to a single company-wide reporting unit. We perform a qualitative assessment of the goodwill in the fourth quarter of each fiscal year. In assessing the qualitative factors, we considered the impact of key factors including change in industry and competitive environment, market capitalization, stock price, gross margin and cash flow from operating activities. We concluded that the fair value of the single company-wide reporting unit exceeded its carrying amount. As such, it was not necessary to perform the two-step quantitative goodwill impairment test. The first step requires comparing the fair value of our one reporting unit to its net book value, including goodwill. The second step of the process is only performed if a potential impairment exists, and it involves determining the difference between the fair value of the reporting unit's net assets other than goodwill to the fair value of the reporting unit and if the difference is less than the net book value of goodwill, an impairment exists and is recorded. No goodwill impairment was recognized for fiscal 2016, 2015, and 2014. Impairment of Long-Lived Assets We evaluate long-lived assets, such as property and equipment and intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. We measure recoverability of assets to be held and used by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. We review the carrying value of indefinite-lived intangible assets for impairment at least annually during the last quarter of our fiscal year, or more frequently if we believe indicators of impairment exist. If the carrying amount of the asset exceeds its estimated undiscounted future cash flows, we recognize an impairment charge in an amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the consolidated balance sheets and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the consolidated balance sheets. During fiscal 2016, we recorded a $6.7 million impairment charge for an acquired intangible asset related to ThinTouch developed technology, which we determined is probable not to be recoverable, based on revenue forecasts. This intangible asset has been written down to zero. Other Accrued Liabilities As of the end of fiscal 2016 and 2015, other accrued liabilities consisted of the following (in millions): 2016 2015 Customer obligations $ 34.8 $ 36.9 Inventory obligations 24.0 17.2 Warranty 3.5 2.8 Other 20.0 17.2 $ 82.3 $ 74.1 Segment Information We operate in one segment: the development, marketing, and sale of intuitive human interface solutions for electronic devices and products. The chief operating decision maker is the chief executive officer who evaluates financial performance and allocates resources using financial information reported on a company-wide basis. Share-Based Compensation We utilize the Black-Scholes option pricing model to estimate the grant date fair value of stock options granted to employees, which requires the input of highly subjective assumptions, including expected volatility and expected life. Historical and implied volatilities were used in estimating the fair value of our stock option awards. The expected life for our options was previously estimated based on historical trends since our initial public offering. In fiscal 2011, we began to grant options with a contractual life of seven years rather than 10 years, and we began using the simplified method to establish the expected life as we did not have any history of options with seven-year lives. In fiscal 2013, we began to grant options that vest over a three-year period rather than a four-year period and in fiscal 2016, we began to grant some options that vest over a four-year period. We continue to use the simplified method to establish the expected life as we have limited history of options which vest over a three year period. Changes in these inputs and assumptions can materially affect the measure of estimated fair value of our share-based compensation. Further, we estimate forfeitures for share-based awards that are not expected to vest. We charge estimated fair value less estimated forfeitures to earnings on a straight-line basis over the vesting period of the entire underlying award, which is generally three to four years for our stock option and deferred stock unit, or DSU, awards, three years for our market stock unit, or MSU, awards, and up to two years for our employee stock purchase plan. Income Taxes We account for income taxes under the asset and liability method. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize the effect of a change in tax rates in income on deferred tax assets and liabilities in the period that includes the enactment date. We establish valuation allowances when necessary to reduce deferred tax assets to the amounts that are more likely than not to be realized. We consider the operating earnings of our foreign subsidiaries to be indefinitely invested outside the United States. Accordingly, no provision has been made for the U.S. federal, state, or foreign taxes that may result from future remittances of undistributed earnings of our foreign subsidiaries. We use a two-step approach to recognizing and measuring uncertain tax positions. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement with a taxing authority. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of highly complex tax laws. Resolution of these uncertainties in a manner inconsistent with our expectations could have a material impact on our consolidated financial position, results of operations, and cash flows. We believe we have adequately provided for reasonably foreseeable outcomes in connection with the resolution of income tax uncertainties. However, our results have in the past, and could in the future, include favorable and unfavorable adjustments to our estimated tax liabilities in the period a determination of such estimated tax liability is made or resolved, upon the filing of an amended return, upon a change in facts, circumstances, or interpretation, or upon the expiration of a statute of limitation. Accordingly, our effective tax rate could fluctuate materially from period to period. In November 2015, the Financial Accounting Standards Board, or FASB, issued an accounting standards update, or ASU, which eliminates the current requirement to present deferred tax liabilities and assets as current and non-current in a classified balance sheet. We early adopted the ASU, effective for our disclosures at the end of fiscal 2016, on a prospective basis. Adoption of this ASU resulted in a reclassification of our net current deferred tax assets and liabilities to net non-current deferred tax assets and liabilities in our consolidated balance sheet as of the end of fiscal 2016. No prior periods were retrospectively adjusted. Research and Development Research and development costs are expensed as incurred. Recently Issued Accounting Pronouncements Not Yet Effective In May 2014, the Financial Accounting Standards Board, or FASB, issued an accounting standards update, or ASU, on Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue it expects to be entitled to for the transfer of promised goods or services to customers. The new standard will replace most existing revenue recognition guidance in U.S. GAAP when the new standard becomes effective. In March 2016, the FASB issued an ASU on Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net). This ASU amends the principal-versus-agent implementation guidance and illustrations in the Board’s new revenue standard. The FASB issued the ASU in response to concerns identified by stakeholders, including those related to (1) determining the appropriate unit of account under the revenue standard’s principal-versus-agent guidance, and (2) applying the indicators of whether an entity is a principal or an agent in accordance with the revenue standard’s control principle. In April 2016, the FASB issued an ASU for revenue from contracts with customers identifying performance obligations and licensing. The ASU provides further guidance in identifying performance obligations and determining the appropriate accounting for licensing arrangements. The new standard is effective for us in our fiscal year 2019, with early adoption permitted in the first quarter of fiscal 2018. We are evaluating the effect this new standard will have on our consolidated financial statements and related disclosures. The new standard permits the use of either the retrospective or cumulative effect transition method. We have not yet selected a transition method or determined the effect of the standard on our ongoing financial reporting. In March 2016, the FASB issued an ASU for stock compensation. This update simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The ASU will be effective for us beginning in the first quarter of fiscal 2018, with early adoption permitted. We are evaluating the timing of our adoption of this ASU as well as the effects of adoption of this ASU on our financial statements. In February 2016, the FASB issued an ASU on leases. This update requires organizations that lease assets with lease terms of more than 12 months to recognize assets and liabilities for the rights and obligations created by those leases on their balance sheets. It also requires new qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard will be effective for us beginning in the first quarter of our fiscal year 2020, with early adoption permitted. We are evaluating the effects of adoption of this ASU on our financial statements. In January 2016, the FASB issued an ASU on 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 us beginning in our first quarter of fiscal 2019, with early adoption permitted. We are evaluating the effects of the adoption of this ASU on our financial statements. In July 2015, the FASB issued an ASU that requires an entity to measure inventory at the lower of cost and net realizable value when the FIFO or average cost method is used. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance will become effective for us in our first quarter of fiscal 2018, with early adoption permitted. We are evaluating the effects of the adoption of this ASU on our financial statements. |
Net Income Per Share
Net Income Per Share | 12 Months Ended |
Jun. 25, 2016 | |
Earnings Per Share [Abstract] | |
Net Income Per Share | 2. Net Income Per Share The computation of basic and diluted net income per share for fiscal 2016, 2015, and 2014 was as follows (in millions, except per share amounts): 2016 2015 2014 Numerator: Net income $ 72.2 $ 110.4 $ 46.7 Denominator: Shares, basic 36.6 36.9 34.8 Effect of dilutive share-based awards 1.3 2.0 2.3 Shares, diluted 37.9 38.9 37.1 Net income per share: Basic $ 1.97 $ 2.99 $ 1.34 Diluted $ 1.91 $ 2.84 $ 1.26 Diluted net income per share does not include the effect of potential common shares related to certain share-based awards for fiscal 2016, 2015, and 2014 as follows (in millions): 2016 2015 2014 Share-based awards 0.7 0.3 0.2 These share-based awards were not included in the computation of diluted net income per share because the proceeds received, if any, from such share-based awards combined with the average unamortized compensation costs adjusted for the hypothetical tax benefit or deficiency creditable or chargeable, respectively, to additional paid-in capital, were greater than the average market price of our common stock, and therefore, their effect would have been antidilutive. Our basic net income per share amounts for each period presented have been computed using the weighted average number of shares of common stock outstanding. Our diluted net income per share amounts for each period presented include the weighted average effect of potentially dilutive shares. We used the “treasury stock” method to determine the dilutive effect of our stock options, deferred stock units, or DSUs, and market stock units, or MSUs. |
Auction Rate Securities
Auction Rate Securities | 12 Months Ended |
Jun. 25, 2016 | |
Text Block [Abstract] | |
Auction Rate Securities | 3. Auction Rate Securities Our ARS investments, which are included in non-current other assets, have failed to settle in auctions beginning in 2007. These investments are not liquid, and in the event we need to access these funds, we will not be able to do so without a loss of principal, unless redeemed by the issuers or a future auction on these investments is successful. During 2016, 2015 and 2014, $6.6 million, $4.9 million and zero, respectively, of our ARS investments were redeemed. As there are currently no active markets for our various failed ARS investments, we have estimated the fair value of these investments using a trinomial discounted cash flow analysis. The analysis considered, among others, the following factors: · the collateral underlying the security investments; · the creditworthiness of the counterparty; · the timing of expected future cash flows; · the probability of a successful auction in a future period; · the underlying structure of each investment; · the present value of future principal and interest payments discounted at rates considered to reflect current market conditions; · a consideration of the probabilities of default, passing a future auction, or redemption at par for each period; and · estimates of the recovery rates in the event of default for each investment. When possible, our failed ARS investments were compared to other observable market data or securities with similar characteristics. Our estimate of the fair value of our ARS investments fluctuates from period to period depending on future market conditions. We have ARS investments with a fair value of $7.1 million that mature in fiscal 2018 and $1.5 million that have no maturity date. All of our ARS investments are below investment grade and have a total par value of $12.5 million. The various types of ARS investments we held as of the end of fiscal 2016, including the original cost basis, other-than-temporary impairment included in retained earnings, new cost basis, unrealized gain/(loss), and fair value consisted of the following (in millions): Original Cost Basis Other-than- temporary Impairment in Retained Earnings New Cost Basis Unrealized Gain Fair Value Credit linked notes $ 7.5 $ (2.2 ) (1) $ 5.3 $ 1.8 $ 7.1 Preferred stock 5.0 (5.0 ) — 1.5 1.5 Total ARS Investments $ 12.5 $ (7.2 ) $ 5.3 $ 3.3 $ 8.6 (1) Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $4.4 million on non-current other assets. Accretion is reclassified from accumulated other comprehensive income and recorded in the consolidated statements of income as interest income. The various types of ARS investments we held as of the end of fiscal 2015, including the original cost basis, other-than-temporary impairment included in retained earnings, new cost basis, unrealized gain/(loss), and fair value consisted of the following (in millions): Original Cost Basis Other-than- temporary Impairment in Retained Earnings New Cost Basis Unrealized Gain Fair Value Credit linked notes $ 13.5 $ (6.1 ) (1) $ 7.4 $ 5.0 $ 12.4 Preferred stock 5.0 (5.0 ) — 2.8 2.8 Municipals 0.6 (0.1 ) 0.5 0.1 0.6 Total ARS Investments $ 19.1 $ (11.2 ) $ 7.9 $ 7.9 $ 15.8 (1) Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $2.7 million on non-current other assets. Accretion is reclassified from accumulated other comprehensive income and recorded in the consolidated statements of income as interest income. We have accounted for our ARS investments as non-current as we are not able to reasonably determine when the ARS markets will recover or be restructured. Based on our ability to access our cash and cash equivalents, our expected operating cash flows, and our other sources of cash, we do not intend to sell our ARS investments and it is not more likely than not that we will be required to sell our ARS investments before the recovery of the amortized cost basis. |
Property and Equipment
Property and Equipment | 12 Months Ended |
Jun. 25, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | 4. Property and Equipment Property and equipment as of the end of fiscal 2016 and 2015 consisted of the following (in millions): Life 2016 2015 Land — $ 13.3 $ 13.3 Building and building improvements 35 years 44.5 44.3 Computer equipment 3 - 5 years 25.3 23.5 Manufacturing equipment 1 65.8 61.0 Furniture, fixtures, and leasehold improvements 3 years to 10 years 21.1 22.7 Capitalized software 3 years to 7 years 30.0 26.0 200.0 190.8 Accumulated depreciation and amortization (87.3 ) (67.4 ) Property and equipment, net $ 112.7 $ 123.4 In fiscal 2016 and 2015, there was $10.9 million and $6.6 million property and equipment retired which was fully depreciated, respectively. |
Acquisitions
Acquisitions | 12 Months Ended |
Jun. 25, 2016 | |
Business Combinations [Abstract] | |
Acquisitions | 5. Acquisitions Validity On November 7, 2013, or the Acquisition Date, we acquired 100% of the outstanding common and preferred shares and voting interest of a privately held company, Validity Sensors, Inc., or Validity. We accounted for this acquisition using the purchase method for business combinations. The results of Validity’s operations have been included in our consolidated financial statements since the Acquisition Date. The Acquisition Date fair value of the consideration transferred totaled $127.8 million, which consisted of the following (in millions): Cash $ 20.0 Shares issued 70.3 Contingent consideration 37.5 Total identifiable assets acquired 127.8 In connection with the acquisition, we issued 1,577,559 shares of our common stock to the former Validity stockholders valued at $70.3 million based on the closing price of our common stock of $44.55 on the Acquisition Date. As of June 30, 2016, the remaining liability for contingent consideration of $25.5 million represents amounts we have not paid and have retained, subject to resolution of the Amkor Technology legal dispute (see Legal proceedings Renesas SP Drivers On June 11, 2014, we entered into a stock purchase agreement to acquire all of the outstanding stock of Renesas SP Drivers, Inc., or RSP, a leading provider of small- and medium-sized display driver integrated circuits for smartphones and tablets, or the RSP Acquisition. Effective as of October 1, 2014, or the Closing Date, we completed the RSP Acquisition by acquiring 100% of the outstanding capital stock of RSP for an initial purchase price of approximately ¥50.6 billion (or approximately $463 million), with Japanese yen converted into U.S. dollars at the Closing Date conversion rate of 109.4 Japanese yen to one U.S. dollar. The purchase price at the Closing Date was paid entirely in cash, with ¥7.25 billion (or approximately $66 million) held back until the date that is 18 months after the Closing Date to address any post-closing adjustments or claims, or the Indemnification Holdback, and ¥5.25 billion (or approximately $48 million) held back in respect of a potential post-closing working capital, cash balance, indebtedness and transaction expenses adjustments, or the Working Capital Holdback. Subsequent to the Closing Date, we determined that $4.8 million of additional purchase consideration was due to the sellers pursuant to the requirements of the Working Capital Holdback and have adjusted the purchase price to $468 million. The Working Capital Holdback as adjusted for additional purchase consideration was settled in the three months ended March 31, 2015, for a total of ¥5.78 billion (or $48.6 million). The majority of the Indemnification Holdback was settled in fiscal 2016. We have retained approximately ¥648 million (approximately $6.2 million) subject to resolution of the IIX legal dispute (see Legal proceedings |
Acquired Intangibles
Acquired Intangibles | 12 Months Ended |
Jun. 25, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Acquired Intangibles | 6. Acquired Intangibles The following table summarizes the life, the gross carrying value of our acquired intangible assets, and the related accumulated amortization as of the end of fiscal 2016 and 2015 (in millions): Weighted Average Life in Years 2016 2015 Display driver technology 5.3 $ 164.0 $ 164.0 Fingerprint authentication technology 3.6 75.6 75.6 ThinTouch technology - 8.9 Customer relationships 2.8 48.4 48.4 Licensed technology and other 5.0 1.3 1.3 Backlog - 10.3 Patents 7.7 4.8 0.1 Supplier arrangement 1.8 22.0 22.0 Acquired intangibles, gross 4.2 316.1 330.6 Accumulated amortization (155.8 ) (95.2 ) Acquired intangibles, net $ 160.3 $ 235.4 In fiscal 2016 there was $10.3 million of backlog retired which was fully depreciated. Amortization expense is calculated using the straight-line method over the estimated useful lives of the acquired intangibles. The total amortization expense for the acquired intangible assets was $73.0 million in fiscal 2016 and $87.6 million in fiscal 2015. This amortization expense was included in our consolidated statements of income as acquired intangibles amortization and cost of revenue. The following table presents expected annual aggregate amortization expense in future fiscal years (in millions): 2017 $ 59.3 2018 48.6 2019 34.2 2020 10.6 2021 3.5 Thereafter 4.1 Future amortization $ 160.3 |
Debt
Debt | 12 Months Ended |
Jun. 25, 2016 | |
Debt Disclosure [Abstract] | |
Debt | 7. Debt We have a credit agreement, or the Credit Agreement, in place with the lenders party thereto, or the Lenders, and Wells Fargo Bank, National Association, or the Administrative Agent, as administrative agent for the Lenders. The Credit Agreement provides for, among other things, (i) a revolving credit facility of up to $250 million, which includes a $20 million sublimit for letters of credit and a $20 million sublimit for swingline loans, and (ii) a term loan facility in an amount of $150 million. Under the terms of the Credit Agreement, we may, subject to the satisfaction of certain conditions, request increases in the revolving credit facility commitments and additional term loan commitments in an aggregate principal amount of up to $100 million to the extent existing or new lenders agree to provide such increased or additional commitments, as applicable. We borrowed $150 million under the term loan facility and $100 million under the revolving credit facility to finance a portion of the RSP Acquisition purchase price. Debt issuance costs were approximately $5.0 million, which are being amortized over 60 months. Our obligations under the Credit Agreement are guaranteed by the material domestic subsidiaries of our company, subject to certain exceptions (such material subsidiaries, together with our company, collectively, the Credit Parties). The obligations of the Credit Parties under the Credit Agreement and the other loan documents delivered in connection therewith are secured by a first priority security interest in substantially all of the existing and future personal property of the Credit Parties, including, without limitation, 65% of the voting capital stock of certain of the Credit Parties’ direct foreign subsidiaries, subject to certain exceptions. In October 2015, we entered into a Commitment Increase Agreement and First Amendment to Credit Agreement, or the First Amendment, with the Administrative Agent and each of the Lenders, which amends the Credit Agreement. Pursuant to the First Amendment, we obtained a $100 million increase to the aggregate revolving credit commitment thereunder, for total aggregate revolving credit commitments of $250 million. The First Amendment also amends the Credit Agreement by (i) reducing commitment fee rates set forth in the definition of Applicable Margin; (ii) providing that we may, from time to time, request incremental increases from the Lenders in the aggregate revolving and term commitments by an amount not exceeding $100 million, such increases to be in addition to the increase provided by the First Amendment; and (iii) making certain other administrative changes, all as set forth in the First Amendment. The revolving credit facility and term loans bear interest at our election of a Base Rate plus an Applicable Margin or LIBOR plus an Applicable Margin. Swingline loans bear interest at a Base Rate plus an Applicable Margin. The Base Rate is a floating rate that is the greater of the Prime Rate, the Federal Funds Rate plus 50 basis points, or LIBOR plus 100 basis points. The Applicable Margin is based on a sliding scale which ranges from zero to 100 basis points for Base Rate loans and 100 basis points to 200 basis points for LIBOR loans. During fiscal 2016, the interest rates on our borrowings ranged from approximately 1.48% to 1.95%. The term loan facility requires repayment over five years with nineteen quarterly principal payments which began in the three months ending March 31, 2015. Each of the first four quarterly principal payments were $1.9 million, each of the following quarterly principal payments are $3.8 million, with the final principal payment of $90.0 million due on September 30, 2019. The revolving credit facility requires payment in full at the end of five years on September 30, 2019. We are also required to pay a commitment fee for any unused portion of the revolving credit facility, which ranges from 0.25% to 0.45% per annum. Interest on the term loan facility and revolving credit facility is payable quarterly. As of June 30, 2016, the outstanding balance of the debt owed under the Credit Agreement was $238.8 million. Borrowings under the Credit Agreement will continue to bear interest at a variable interest rate based on LIBOR or a Base Rate, in each case plus the Applicable Margin. The Applicable Margin is based on our consolidated total leverage ratio pursuant to a pricing grid set forth in the Credit Agreement. Under the Credit Agreement, there are restrictive operating covenants, including three financial covenants which limit the consolidated total leverage ratio, or leverage ratio, the consolidated interest coverage ratio, or interest coverage ratio, and places a restriction on the amount of capital expenditures that may be made in any fiscal year. The leverage ratio is the ratio of debt as of the measurement date to earnings before interest, taxes, depreciation and amortization, or EBITDA, for the four consecutive quarters ending with the quarter of measurement. The leverage ratio must not exceed 2.50 to 1.0 during the first two years of the agreement, and 2.0 to 1.0 during the last three years of the agreement. The interest coverage ratio is EBITDA to interest expense for the four consecutive quarters ending with the quarter of measurement. The interest coverage ratio must not be less than 3.50 to 1.0 during the term of the Credit Agreement. We have been in compliance with the restrictive operating covenants in all periods the debt has been outstanding. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 25, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | 8. Commitments and Contingencies Leases We maintain office facilities in various locations under operating leases with expiration dates from fiscal 2017 to fiscal 2022, some of which have renewal options of one to five years. Our leased office facilities are located in Armenia, China, Denmark, Hong Kong, India, Japan, Korea, Switzerland, Taiwan, the United States, and Vietnam. We recognized rent expense on a straight-line basis of $9.2 million, $7.9 million, and $4.7 million for fiscal 2016, 2015, and 2014, respectively. The aggregate minimum rental commitments in future fiscal years for non-cancelable operating leases with initial or remaining terms in excess of one year were as follows (in millions): Operating Lease Fiscal Year Payments 2017 $ 7.5 2018 3.4 2019 1.4 2020 0.5 2021 0.4 Thereafter 0.1 Total minimum operating lease payments $ 13.3 Contingencies We have in the past, and may in the future receive notices from third parties that claim our products infringe their intellectual property rights. We cannot be certain that our technologies and products do not and will not infringe issued patents or other proprietary rights of third parties. Any infringement claims, with or without merit, could result in significant litigation costs and diversion of management and financial resources, including the payment of damages, which could have a material adverse effect on our business, financial condition, and results of operations. Indemnifications In connection with certain agreements, we are obligated to indemnify the counterparty against third party claims alleging infringement of certain intellectual property rights by us. We have also entered into indemnification agreements with our officers and directors. Maximum potential future payments cannot be estimated because these agreements do not have a maximum stated liability. However, historical costs related to these indemnification provisions have not been significant. We have not recorded any liability in our consolidated financial statements for such indemnification obligations. Legal Proceedings In October 2015, Amkor Technology, or Amkor, filed a complaint against us alleging infringement of intellectual property rights and various other claims. In November 2015, we filed an indemnification claim against the former stockholders and option holders of Validity to secure our rights under the Agreement and Plan of Reorganization between us and Validity. Pursuant to the Agreement, we can offset costs, damages and settlements against the contingent consideration earnout balance for certain of the claims brought by Amkor. Accordingly, we have withheld and reserved the remaining contingent consideration earnout balance of $25.5 million and have classified the reserve balance as a current acquisition-related liability in our consolidated balance sheet. In September 2015, IIX Inc., or IIX, filed a complaint against us demanding payment of certain fees and costs plus interest allegedly due to IIX under a memorandum of understanding, or MOU, entered into between IIX and RSP, as well as litigation costs. In September 2015, we tendered a claim for indemnification from Renesas Electronics Corporation, or Renesas, on the basis that the IIX claim arises from a breach of Renesas’ obligations under the Stock Purchase Agreement that we executed with Renesas, among others, in June 2014. Accordingly, we have retained ¥648 million (approximately $6.2 million) of the indemnification holdback liability and have classified the reserve balance as a non-current acquisition-related liability, as final settlement of the IIX complaint is not expected to occur within the next twelve months. |
Stockholders' Equity
Stockholders' Equity | 12 Months Ended |
Jun. 25, 2016 | |
Equity [Abstract] | |
Stockholders' Equity | 9. Stockholders’ Equity Preferred Stock We are authorized, subject to limitations imposed by Delaware law, to issue up to a total of 10,000,000 shares of preferred stock in one or more series without stockholder approval. Our Board of Directors has the power to establish from time to time the number of shares to be included in each series and to fix the rights, preferences, and privileges of the shares of each wholly unissued series and any of its qualifications, limitations, or restrictions. Our Board of Directors can also increase or decrease the number of shares of a series, but not below the number of shares of that series then outstanding, without any further vote or action by the stockholders. Our Board of Directors may authorize the issuance of preferred stock with voting or conversion rights that could harm the voting power or other rights of the holders of our common stock. The issuance of preferred stock, while providing flexibility in connection with possible acquisitions and other corporate purposes, could, among other things, have the effect of delaying, deferring, or preventing a change in control of our company and might harm the market price of our common stock and the voting power and other rights of the holders of our common stock. As of the end of fiscal 2016, there were no shares of preferred stock outstanding. Shares Reserved for Future Issuance Shares of common stock reserved for future issuance as of the end of fiscal 2016 were as follows: Stock options outstanding 2,711,542 Deferred stock units outstanding 1,005,981 Market stock units outstanding 146,150 Awards available for grant under all share-based compensation plans 1,458,301 Reserved for future issuance 5,321,974 Treasury Stock Our cumulative authorization for our common stock repurchase program is $1.05 billion, as of the end of fiscal 2016, expiring in October 2017. The program authorizes us to repurchase our common stock in the open market or in privately negotiated transactions depending upon market conditions and other factors. The number of shares repurchased and the timing of repurchases is based on the level of our cash balances, general business and market conditions, and other factors, including alternative investment opportunities. Common stock repurchased under this program is held as treasury stock. As of the end of fiscal 2016, we had $157.7 million remaining under our common stock repurchase program. |
Share-Based Compensation
Share-Based Compensation | 12 Months Ended |
Jun. 25, 2016 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Share-Based Compensation | 10. Share-Based Compensation The purpose of our various share-based compensation plans is to attract, motivate, retain, and reward high-quality employees, directors, and consultants by enabling such persons to acquire or increase their proprietary interest in our common stock in order to strengthen the mutuality of interests between such persons and our stockholders and to provide such persons with annual and long-term performance incentives to focus their best efforts on the creation of stockholder value. Consequently, we determine whether to grant share-based compensatory awards subsequent to the initial award for our employees and consultants primarily on individual performance. Our share-based compensation plans with outstanding awards consist of our Amended and Restated 2001 Incentive Compensation Plan, or our 2001 Plan; our Amended and Restated 2010 Incentive Compensation Plan, or our 2010 Plan; and our 2010 Employee Stock Purchase Plan, or our 2010 ESPP. Share-based compensation awards available for grant or issuance for each plan as of the beginning of the fiscal year, including changes in the balance of awards available for grant for fiscal 2016, were as follows: Awards 2010 Available 2001 2010 Employee Under All Incentive Incentive Stock Share-Based Compensation Compensation Purchase Award Plans Plan Plan Plan Balance at June 2015 2,560,131 — 2,302,512 257,619 Additional shares authorized 375,296 — — 375,296 Stock options granted (440,362 ) — (440,362 ) — Deferred stock units granted (704,225 ) — (704,225 ) — Market stock units granted (77,700 ) — (77,700 ) — Market stock units performance adjustment (39,273 ) — (39,273 ) — Purchases under employee stock purchase plan (302,781 ) — — (302,781 ) Forfeited 87,315 100 87,215 — Plan shares expired (100 ) (100 ) — — Balance at June 2016 1,458,301 — 1,128,167 330,134 Our 2001 Plan, which expired in March 2011, was replaced by our 2010 Plan. Option awards that are currently outstanding under our 2001 Plan will remain outstanding until exercised, delivered, forfeited, or cancelled under the terms of their respective grant agreements. Share-based compensation and the related tax benefit recognized in our consolidated statements of income for fiscal 2016, 2015, and 2014 were as follows (in millions): 2016 2015 2014 Cost of revenue $ 1.8 $ 1.4 $ 1.1 Research and development 30.6 24.5 18.5 Selling, general, and administrative 24.4 18.2 13.3 Total $ 56.8 $ 44.1 $ 32.9 Income tax benefit on share-based compensation $ 14.7 $ 12.5 $ 10.6 We recognize a tax benefit upon expensing certain share-based awards associated with our share-based compensation plans, including nonqualified stock options, DSUs, and MSUs, but we cannot recognize a tax benefit concurrent with the recognition of share-based compensation expenses associated with incentive stock options and employee stock purchase plan shares (qualified stock awards). For qualified stock awards we recognize a tax benefit only in the period when disqualifying dispositions of the underlying stock occur, which historically has been up to several years after vesting and in a period when our stock price substantially increases. We determine excess tax benefit using the long-haul method in which we compare the actual tax benefit associated with the tax deduction from share-based award activity to the hypothetical tax benefit based on the grant date fair values of the corresponding share-based awards. Tax benefit associated with excess tax deduction creditable to additional paid-in capital is not recognized until the deduction reduces taxes payable. Historically, we have issued new shares in connection with our share-based compensation plans, however, treasury shares were also available for issuance as of the end of fiscal 2016. Any additional shares repurchased under our common stock repurchase program would be available for issuance under our share-based compensation plans. Stock Options Our share-based compensation plans with outstanding stock option awards include our 2001 Plan and our 2010 Plan. Under our 2010 Plan, we may grant incentive stock options or nonqualified stock options to purchase shares of our common stock at not less than 100% of the fair market value, or FMV, on the date of grant. Options granted under our 2010 Plan generally vest over three to four years from the vesting commencement date and expire seven years after the date of grant if not exercised. Certain stock option activity for fiscal 2016 and balances as of the end of fiscal 2016 were as follows: Stock Weighted Option Average Intrinsic Awards Exercise Value Outstanding Price (In millions) Balance at June 2015 2,870,425 $ 38.50 Granted 440,362 79.05 Exercised (570,156 ) 29.22 Forfeited (29,089 ) 70.18 Balance at June 2016 2,711,542 49.69 $ 39.9 Exercisable at June 2016 1,994,854 36.29 $ 39.7 The aggregate intrinsic value was determined using the closing price of our common stock on the last trading day of fiscal 2016, or June 24, 2016, of $52.22 and excludes the impact of options that were not in-the-money. Approximately 59% of the stock option awards outstanding were vested and in-the-money as of the end of fiscal 2016. At the end of fiscal 2016, we estimated that we have 2.6 million fully vested options and options expected to vest with an aggregate intrinsic value of $39.9 million, having a weighted average exercise price of $45.96 and a weighted average remaining contractual term of 3.82 years. The weighted average remaining contractual term for the options exercisable is approximately 3.14 years. Cash received and the aggregate intrinsic value of stock options exercised for fiscal 2016, 2015, and 2014 were as follows (in millions): 2016 2015 2014 Cash received $ 16.6 $ 36.2 $ 71.7 Aggregate intrinsic value $ 29.7 $ 69.9 $ 79.3 The fair value of each award granted under our share-based compensation plans for fiscal 2016, 2015, and 2014 was estimated at the date of grant using the Black-Scholes option pricing model, assuming no expected dividends and the following range of assumptions: 2016 2015 2014 Expected volatility 40.4% - 38.7% - 40.1% - Expected life in years 3.8 3.8 3.8 Risk-free interest rate 1.22% - 1.72% 1.18% - 1.80% 1.31% - 1.74% Fair value per award $ 28.30 $ 27.19 $ 18.72 The unrecognized share-based compensation costs for stock options granted under our various plans were approximately $18.7 million as of the end of fiscal 2016, to be recognized over a weighted average period of approximately 1.93 years. Deferred Stock Units Our 2010 Plan provides for the grant of DSU awards to our employees, consultants, and directors. A DSU is a promise to deliver shares of our common stock at a future date in accordance with the terms of the DSU grant agreement. We began granting DSUs in January 2006. DSUs granted under our 2010 Plan generally vest ratably over three to four years from the vesting commencement date. Delivery of shares under the plan takes place on the quarterly vesting dates. At the delivery date, we withhold shares to cover statutory minimum tax withholding by delivering a net quantity of shares. Until delivery of shares, the grantee has no rights as a stockholder. An election to defer delivery of the underlying shares for unvested DSUs can be made by the grantee provided the deferral election is made at least one year before vesting and the deferral period is at least five years from the scheduled delivery date. DSU activity, including DSUs granted, delivered, and forfeited in fiscal 2016, and the balance and aggregate intrinsic value of DSUs as of the end of fiscal 2016 were as follows: Aggregate Weighted Intrinsic Average DSU Awards Value Grant Date Outstanding (in millions) Fair Value Balance at June 30, 2015 860,376 $ 58.94 Granted 704,225 83.49 Delivered (500,394 ) 53.53 Forfeited (58,226 ) 73.82 Balance at June 30, 2016 1,005,981 $ 52.5 77.93 Of the shares delivered, 138,955 shares valued at $10.8 million were withheld to meet statutory minimum tax withholding requirements. The aggregate intrinsic value was determined using the closing price of our common stock on the last trading day of fiscal 2016, or June 24, 2016, of $52.22. The unrecognized share-based compensation cost for DSUs granted under our 2010 Plan was approximately $68.5 million as of the end of fiscal 2016, which will be recognized over a weighted average period of approximately 2.04 years. The aggregate market value of DSUs delivered in fiscal 2016, 2015, and 2014 was $26.7 million, $23.8 million, and $26.3 million, respectively. Market Stock Units Our 2010 Plan provides for the grant of Market Stock Unit, or MSU awards, to our employees, consultants, and directors. An MSU is a promise to deliver shares of our common stock at a future date based on the achievement of market-based performance requirements in accordance with the terms of the MSU grant agreement. We have granted MSUs to our executive officers, which are designed to vest in three tranches with the target quantity for each tranche equal to one-third of the total MSU grant. The first tranche vests based on a one-year performance period; the second tranche vests based on a two-year performance period; and the third tranche vests based on a three-year performance period. Performance is measured based on the achievement of a specified level of total stockholder return, or TSR, relative to the TSR of the Philadelphia Semiconductor Index, or SOX Index. The potential payout ranges from 0% to 200% of the grant target quantity and is adjusted on a two-to-one ratio based on our TSR performance relative to the SOX Index using the following formula: (100% + ([Synaptics TSR—SOX Index TSR] x 2)) Beginning with the MSU grants in fiscal 2015, the payout for tranche one and two will not exceed 100% and the payout for tranche three will be calculated based on the total target quantity for the entire grant multiplied by the payout factor, which will then be reduced by tranche one and tranche two stock issuances. Delivery of shares earned, if any, will take place on the dates provided in the applicable MSU grant agreement, assuming the grantee is still an employee, consultant, or director of our company at the end of the applicable performance period. On the delivery date, we withhold shares to cover statutory minimum tax withholding requirements and deliver a net quantity of shares to the employee, consultant, or director after such withholding. Until delivery of shares, the grantee has no rights as a stockholder with respect to any shares underlying the MSU award. MSU activity, including MSUs granted, delivered, and forfeited in fiscal 2016, and the balance and aggregate intrinsic value of MSUs as of the end of fiscal 2016 were as follows: Aggregate Weighted Intrinsic Average MSU Awards Value Grant Date Outstanding (in millions) Fair Value Balance at June 30, 2015 132,376 $ 58.95 Granted 77,700 126.74 Performance adjustment 39,273 — Delivered (103,199 ) 53.13 Balance at June 30, 2016 146,150 $ 7.6 97.54 As a result of the Synaptics TSR exceeding the SOX Index TSR by 110 percentage points, we delivered 200% of the targeted shares underlying the November 2012 MSU grants, or 17,466 additional shares. Of the shares delivered, 18,860 shares valued at $1.7 million were withheld to meet statutory minimum tax withholding requirements. As a result of the Synaptics TSR exceeding the SOX Index TSR by 53 percentage points, we delivered 200% of the targeted shares underlying the November 2013 MSU grants, or 24,455 additional shares. Of the shares delivered, 25,739 shares valued at $2.3 million were withheld to meet statutory minimum tax withholding requirements. As a result of the Synaptics TSR underperforming the SOX Index TSR by 6 percentage points, we delivered 88% of the targeted shares underlying the October 2014 MSU grants, or 2,648 less shares. Of the shares delivered, 9,935 shares valued at $0.9 million were withheld to meet statutory minimum tax withholding requirements. The aggregate intrinsic value assumes a 100% payout factor and was determined using the closing price of our common stock on the last trading day of fiscal 2016, or June 24, 2016, of $52.22. The fair value of each MSU granted from our plans for fiscal 2016, 2015, and 2014 was estimated at the date of grant using the Monte Carlo simulation model, assuming no expected dividends and the following assumptions: 2016 2015 2014 Expected volatility of company 45.57 % 43.65 % 38.79 % Expected volatility of SOX index 19.65 % 20.60 % 24.95 % Correlation coefficient 0.42 0.43 0.53 Expected life in years 2.94 2.93 2.92 Risk-free interest rate 0.92 % 0.79 % 0.57 % Fair value per award $ 126.74 $ 66.48 $ 60.62 We amortize the compensation expense over the three-year performance and service period. The unrecognized share-based compensation cost of our outstanding MSUs was approximately $9.9 million as of the end of fiscal 2016, which will be recognized over a weighted average period of approximately 1.0 years. Of the shares delivered, 54,534 shares valued at $4.8 million were withheld to meet statutory minimum tax withholding requirements. Employee Stock Purchase Plan Our 2010 ESPP became effective on January 1, 2011. The 2010 ESPP allows employees to designate up to 15% of their base compensation, subject to legal restrictions and limitations, to purchase shares of common stock at 85% of the lesser of the FMV at the beginning of the offering period or the exercise date. The offering period extends for up to two years and includes four exercise dates occurring at six-month intervals. Under the terms of our 2010 ESPP, if the FMV at an exercise date is less than the FMV at the beginning of the offering period, the current offering period will terminate and a new two-year offering period will commence. Shares purchased, weighted average purchase price, cash received, and the aggregate intrinsic value for employee stock purchase plan purchases in fiscal 2016, 2015, and 2014 were as follows (in millions, except shares purchased and weighted average purchase price): 2016 2015 2014 Shares purchased 302,781 367,646 409,084 Weighted average purchase price $ 52.42 $ 35.11 $ 22.07 Cash received $ 15.8 $ 12.9 $ 9.0 Aggregate intrinsic value $ 7.0 $ 13.7 $ 12.8 The fair value of each award granted under our 2010 ESPP for fiscal 2016, 2015, and 2014 was estimated using the Black-Scholes option pricing model, assuming no expected dividends and the following range of assumptions: 2016 2015 2014 Expected volatility 37.4% - 40.6% 36.8% - 47.9% 43.8% - 49.3% Expected life in years 0.5 - 1.0 0.5 - 2.0 0.5 - 1.0 Risk-free interest rate 0.33% - 0.54% 0.07% - 0.54% 0.05% - 0.13% Fair value per award $ 24.52 $ 21.23 $ 15.04 The expected volatility is based on either implied volatility for the expected lives of 0.5 years or a weighting of implied and historical volatility for expected lives greater than 0.5 years; the expected life is the period starting at the enrollment date until each purchase date remaining in the offering period at the date of enrollment in the plan; and the risk free interest rate is based on U.S. Treasury yields or yield curve in effect for each expected life. Unrecognized share-based compensation costs for awards granted under our 2010 ESPP at the end of fiscal 2016 were approximately $0.8 million that will be amortized over the next 4 months. |
Employee Benefit Plans
Employee Benefit Plans | 12 Months Ended |
Jun. 25, 2016 | |
Compensation And Retirement Disclosure [Abstract] | |
Employee Benefit Plans | 11. Employee Benefit Plans 401(k) Plan We have a 401(k) Retirement Savings Plan for full-time employees in the United States. Under the plan, eligible employees may contribute a portion of their net compensation up to the annual limit of $18,000, or $24,000 for employees who are 50 years or older. In fiscal 2016, we provided matching funds of 25% of our employees’ contributions, excluding catch-up contributions. The employer matching funds vest 25% over four years and are fully vested at the end of the fourth year. We made matching contributions of $2.5 million, $2.3 million, and $1.6 million in fiscal 2016, 2015, and 2014, respectively. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 25, 2016 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 12. Income Taxes Income before provision for income taxes for fiscal 2016, 2015, and 2014 consisted of the following (in millions): 2016 2015 2014 United States $ 12.3 $ 13.4 $ 76.7 Foreign 63.3 146.8 (2.2 ) Income before provision for income taxes $ 75.6 $ 160.2 $ 74.5 The provision for income taxes for fiscal 2016, 2015, and 2014 consisted of the following (in millions): 2016 2015 2014 Current tax expense/(benefit) Federal $ 12.1 $ 12.0 $ (3.3 ) Foreign 12.4 63.0 12.3 24.5 75.0 9.0 Deferred tax expense/(benefit) Federal (7.5 ) (3.7 ) 18.7 Foreign (13.6 ) (21.5 ) 0.1 (21.1 ) (25.2 ) 18.8 Provision for income taxes $ 3.4 $ 49.8 $ 27.8 The provision for income taxes differs from the federal statutory rate for fiscal 2016, 2015, and 2014 as follows (in millions): 2016 2015 2014 Provision at U.S. federal statutory rate $ 26.6 $ 56.1 $ 26.1 Qualified stock options 5.1 2.7 0.9 Business credits (10.3 ) (4.7 ) (2.8 ) Foreign tax differential (22.4 ) (4.3 ) (19.6 ) Non-deductible portion of contingent consideration 0.9 (4.7 ) 21.2 Change in valuation allowance (1.4 ) (0.5 ) (0.3 ) Nondeductible amortization 4.4 2.7 0.9 Other differences 0.5 2.5 1.4 Provision for income taxes $ 3.4 $ 49.8 $ 27.8 Net deferred tax assets as of the end of fiscal 2016 and 2015 consisted of the following (in millions): 2016 2015 Current deferred tax assets $ — $ 17.6 Non-current deferred tax assets 14.7 0.9 Non-current deferred tax liabilities (9.0 ) (33.9 ) Net deferred tax assets/(liabilities) $ 5.7 $ (15.4 ) Current deferred tax assets, non-current deferred tax assets, and non-current deferred tax liabilities are included in prepaid expenses and other current assets, other assets, and other liabilities, respectively, in the accompanying consolidated balance sheets. Significant components of our deferred tax assets (liabilities) as of the end of fiscal 2016 and 2015 consisted of the following (in millions): 2016 2015 Deferred tax assets: Investment writedowns $ 2.5 $ 5.8 Inventory writedowns 6.5 6.8 Property and equipment 0.8 1.3 Accrued compensation 2.5 3.3 Deferred compensation 1.7 2.8 Share-based compensation 12.6 8.8 Business credit carryforward 16.2 10.7 Net operating loss carryforward 2.5 5.7 Other accruals 2.4 4.3 47.7 49.5 Valuation allowance (14.1 ) (14.5 ) 33.6 35.0 Deferred tax liabilities: Acquisition intangibles (22.9 ) (43.7 ) Interest (5.0 ) (6.7 ) (27.9 ) (50.4 ) Net deferred tax assets/(liabilities) $ 5.7 $ (15.4 ) Realization of deferred tax assets depends on our generating sufficient U.S. and certain foreign taxable income in future years to obtain a benefit from the utilization of those deferred tax assets on our tax returns. Accordingly, the amount of deferred tax assets considered realizable may increase or decrease when we reevaluate the underlying basis for our estimates of future U.S. and foreign taxable income. As of the end of fiscal 2016, a valuation allowance of $14.1 million is maintained to reduce deferred tax assets to levels that we believe are more likely than not to be realized through future taxable income. The net change in the valuation allowance during fiscal 2016 was a decrease of $0.4 million. Undistributed earnings of our foreign subsidiaries were approximately $680.9 million as of the end of fiscal 2016 and are considered to be indefinitely reinvested overseas; accordingly, no U.S. income taxes have been provided for these earnings. The potential deferred tax liability associated with undistributed earnings of our foreign subsidiaries was approximately $182.1 million as of the end of fiscal 2016. As of the end of fiscal 2016, we had federal and California net operating loss carryforwards of approximately $7.1 million and $33.2 million, respectively. The federal net operating loss carryforwards, which begin to expire in fiscal 2022 if not utilized, were acquired and are subject to limitations on their utilization. The California net operating loss will begin to expire in fiscal 2020, if not utilized. All of the California net operating loss carryforwards were attributable to share-based award deductions and any benefit of these net operating losses will be recorded directly to additional paid-in capital when realized. Under current tax law, net operating loss and tax credit carryforwards available to offset future income or income taxes may be limited by statute or upon the occurrence of certain events, including significant changes in ownership. We had $31.4 million and $26.0 million of federal and state research tax credit carryforwards, respectively, as of the end of fiscal 2016. The benefit of $31.0 million of these credits will be recorded directly to additional paid-in capital when realized. The federal research tax credit carryforward will begin to expire in 2032 and the state research tax credit can be carried forward indefinitely. We also had $1.6 million of federal alternative minimum tax credit carryforward available to offset future federal tax liabilities with no expiration, which will be recorded directly to additional paid-in capital when realized. The total liability for gross unrecognized tax benefits related to uncertain tax positions, included in other liabilities in our consolidated balance sheets, increased by $1.8 million from $11.6 million in fiscal 2015 to $13.4 million in fiscal 2016. Of this amount, $9.2 million will reduce the effective tax rate on income from continuing operations, if recognized. A reconciliation of the beginning and ending balance of gross unrecognized tax benefits for fiscal 2016, 2015, and 2014 consisted of the following (in millions): 2016 2015 2014 Beginning balance $ 11.6 $ 10.2 $ 8.2 Increase in unrecognized tax benefits related to current year tax positions 1.6 2.3 1.1 Increase in unrecognized tax benefits related to prior year tax positions 1.1 0.3 1.7 Decrease due to statute expiration (0.9 ) (1.2 ) (0.8 ) Ending Balance $ 13.4 $ 11.6 $ 10.2 Accrued interest and penalties increased by $0.3 million, increased by $0.2 million, and decreased by less than $0.1 million representing income tax expense or benefit, in fiscal 2016, 2015, and 2014, respectively. Accrued interest and penalties was $1.4 million and $1.1 million as of June 30, 2016 and 2015, respectively. Our policy is to classify interest and penalties, if any, as components of income tax expense. On March 31, 2016, Japan’s parliament approved legislation to reduce corporate combined income tax rates by 2.58 percentage points to 33.06%, which will be further reduced to 30.86% over the next two years. We have accounted for the impact of the tax rate change of $0.7 million in the fourth quarter of our fiscal 2016. The Protecting Americans from Tax Hikes Act of 2015, or the PATH Act, which made the federal research tax credit permanent, was enacted on December 17, 2015. The PATH Act retroactively extended federal research credit from January 1, 2015. During fiscal 2016, we recognized tax benefit totaling $4.5 million from the federal research tax credit related to fiscal 2015. It is reasonably possible that the amount of liability for unrecognized tax benefits may change within the next 12 months; an estimate of the range of possible changes could result from a decrease of $0.8 million to an increase of $1.9 million. In July 2015, the U.S. Tax Court issued an opinion in Altera Corp. v. Commissioner In September 2015, we were notified by the National Tax Agency of Japan that our open tax years would be subject to audit. In April 2016, this audit was concluded with adjustments that are not material to our consolidated financial statements. We have recorded the impact of this audit in the fourth quarter of fiscal 2016. Our major tax jurisdictions are the United States, Hong Kong SAR, and Japan. From fiscal 2009 onward, we remain subject to examination by one or more of these jurisdictions. In November 2015, the Financial Accounting Standards Board, or FASB, issued an accounting standards update, or ASU, which eliminates the current requirement to present deferred tax liabilities and assets as current and noncurrent in a classified balance sheet. We early adopted the ASU, effective June 30, 2016, on a prospective basis. Adoption of this ASU resulted in a reclassification of our net current deferred tax assets and liabilities to net non-current deferred tax assets and liabilities in our consolidated balance sheet as of June 30, 2016. No prior periods were retrospectively adjusted. |
Segment, Customers, and Geograp
Segment, Customers, and Geographic Information | 12 Months Ended |
Jun. 25, 2016 | |
Segment Reporting [Abstract] | |
Segment, Customers, and Geographic Information | 13. Segment, Customers, and Geographic Information We operate in one segment: the development, marketing, and sale of semiconductor products used in electronic devices and products. We generate our revenue from two broad product categories: the mobile product market and the personal computing, or PC, product market. Net revenue within geographic areas based on our customers’ locations for fiscal 2016, 2015, and 2014, consisted of the following (in millions): 2016 2015 2014 Japan $ 651.0 $ 698.5 $ 45.0 China 518.7 504.2 449.4 United States 249.1 223.0 93.8 South Korea 182.5 142.1 233.9 Taiwan 61.1 127.2 118.8 Other 4.5 8.0 6.6 $ 1,666.9 $ 1,703.0 $ 947.5 Net revenue from external customers for each group of similar products for fiscal 2016, 2015, and 2014 consisted of the following (in millions): 2016 2015 2014 Mobile product applications $ 1,459.5 $ 1,442.1 $ 689.8 PC product applications 207.4 260.9 257.7 $ 1,666.9 $ 1,703.0 $ 947.5 Long-lived assets within geographic areas as of the end of fiscal 2016 and 2015 consisted of the following (in millions): 2016 2015 United States $ 174.8 $ 200.7 Asia/Pacific 305.0 364.9 $ 479.8 $ 565.6 Our goodwill of $206.8 million has been allocated to a company-wide reporting unit. Major customers’ revenue as a percentage of total net revenue for fiscal 2016, 2015, and 2014 were as follows: 2016 2015 2014 Customer A 21% 18% 28% Customer B 20% 16% * Customer C 15% 11% * Customer D * 11% * * Less than 10% |
Restructuring Activities
Restructuring Activities | 12 Months Ended |
Jun. 25, 2016 | |
Restructuring And Related Activities [Abstract] | |
Restructuring Activities | 14. Restructuring Activities In June 2016, our management approved, committed to and initiated plans to restructure and further improve efficiencies in our operational activities to align the Company’s cost structure consistent with its revenue levels. Restructuring costs related to the June 2016 restructuring activities were recorded to the restructuring costs line item within our consolidated statements of income, which included $6.7 million in the fourth quarter of fiscal 2016. These costs primarily related to severance costs for a reduction in headcount. The total estimated charges are $10.5 million to $11.5 million for severance costs and $3.0 million to $4.0 million for lease cancellation and related charges. The remainder of restructuring charges are expected to be recognized in fiscal 2017 for severance and related costs as well as space consolidation actions. The restructuring liability was $6.7 million as of the end of fiscal 2016. There were no payments made pursuant to the liability as of the end of fiscal 2016. In the first quarter of fiscal 2016, we recorded $1.9 million of restructuring costs in our consolidated statements of income. The costs included severance costs related to restructuring of the operations related to our acquisition of RSP. These activities were concluded in fiscal 2016. |
Organization and Summary of S22
Organization and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 25, 2016 | |
Accounting Policies [Abstract] | |
Organization and Basis of Presentation | Organization and Basis of Presentation We are a leading worldwide developer and supplier of custom-designed human interface semiconductor product solutions that enable people to interact more easily and intuitively with a wide variety of mobile computing, communications, entertainment, and other electronic devices. We currently generate revenue from the markets for smartphones, tablets, personal computer, or PC, products, primarily notebook computers; and other select electronic devices, including devices in automobiles. Every solution we deliver either contains or consists of our touch- or fingerprint-based semiconductor solutions, which includes our capacitive sensing ASIC, customer-specific firmware, and software, or a driver-based semiconductor solution which includes our capacitive sensing ASIC. Our original equipment manufacturer, or OEM, customers include many of the world’s largest OEMs for smartphones and most of the largest PC OEMs. The consolidated financial statements are presented in accordance with U.S. generally accepted accounting principles, or U.S. GAAP, and include our financial statements and those of our wholly owned subsidiaries. All significant intercompany balances and transactions have been eliminated upon consolidation. Our fiscal year is the 52- or 53-week period ending on the last Saturday in June. The fiscal years presented in this report were 52-week periods ended June 25, 2016, June 27, 2015 and June 28, 2014. For simplicity, the accompanying consolidated financial statements have been shown as fiscal year periods and as of the end of our fiscal year ending in June. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with U.S. GAAP requires us to make estimates and judgments that affect the reported amounts of assets, liabilities, revenue, expenses, and related disclosure of contingent assets and liabilities. On an ongoing basis, we evaluate our estimates, including those related to revenue, allowance for doubtful accounts, cost of revenue, inventories, loss on purchase commitments, product warranty, accrued liabilities, share-based compensation costs, provision for income taxes, deferred income tax asset valuation allowances, uncertain tax positions, goodwill, intangible assets, investments, contingent consideration liability and loss contingencies. We base our estimates on historical experience, applicable laws and regulations, and various other assumptions that we believe to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying value of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates under different assumptions or conditions. |
Cash Equivalents and Investments | Cash Equivalents and Investments Cash equivalents consist of highly liquid investments with original maturities of three months or less. Our non-current investments, which are included in non-current other assets in the consolidated balance sheets, consist of ARS investments and are reported at fair value, with unrealized gains and losses excluded from earnings and shown separately as a component of accumulated other comprehensive income within stockholders’ equity. We charge other-than-temporary declines in the fair value of a debt security to earnings if the decline is due to a credit loss or if we intend to or need to sell at a loss, resulting in the establishment of a new cost basis in the debt security. We charge other-than-temporary declines in the fair value of a debt security to other comprehensive income if the decline is due to a noncredit loss. We charge other-than-temporary declines in the fair value of an equity security to earnings. We include interest earned and accretion on securities in interest income. We determine realized gains and losses on the sale of securities using the specific identification method. Our cash equivalents and investments classified as available-for-sale securities as of the end of fiscal 2016 and 2015 were as follows (in millions): 2016 Gross Amortized Unrealized Fair Cost Gains Value Reported as cash equivalents: Money market funds $ 319.1 $ — $ 319.1 Reported as non-current assets: Auction rate securities 5.3 3.3 8.6 Total available-for-sale securities $ 324.4 $ 3.3 $ 327.7 2015 Gross Amortized Unrealized Fair Cost Gains Value Reported as cash equivalents: Money market funds $ 376.3 $ — $ 376.3 Reported as current assets: Auction rate securities 0.6 — 0.6 Reported as non-current assets: Auction rate securities 7.3 7.9 15.2 Total available-for-sale securities $ 384.2 $ 7.9 $ 392.1 |
Fair Value | Fair Value We measure certain financial assets and liabilities at fair value. When we measure fair value on either a recurring or nonrecurring basis, inputs used in valuation techniques are assigned a hierarchical level as follows: · Level 1 inputs are observable inputs that reflect quoted prices for identical assets or liabilities in active markets. · Level 2 inputs reflect quoted prices for identical assets or liabilities in markets that are not active; quoted prices for similar assets or liabilities in active markets; inputs other than quoted prices that are observable for the assets or liabilities; or inputs that are derived principally from or corroborated by observable market data by correlation or other means. · Level 3 inputs are unobservable inputs reflecting our assumptions, which are incorporated into valuation techniques and models used to determine fair value. The assumptions are consistent with market participant assumptions that are reasonably available. Financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the end of fiscal 2016 and 2015 were as follows (in millions): 2016 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Money market $ 319.1 $ — $ — $ 376.3 $ — $ — Auction rate securities — — 8.6 — — 15.8 Total available-for-sale securities $ 319.1 $ — $ 8.6 $ 376.3 $ — $ 15.8 Liabilities: Contingent consideration liabilities recorded for business combination $ — $ — $ — $ — $ — $ 44.2 Foreign currency contract liabilities $ — $ — $ — $ — $ 1.3 $ — The valuation of our auction rate securities is discussed in Note 3. We utilized Level 2 inputs to value the foreign currency forward contracts. Specifically, we utilized quoted prices for similar assets and liabilities in markets that are not active. Key inputs for valuing the foreign currency forward contracts include spot rates and yield curves for the respective currencies. The foreign currency contracts were included in other accrued liabilities as of June 30, 2015, and there were no foreign currency contracts outstanding as of June 30, 2016. In connection with the acquisition of Validity Sensors, Inc., or Validity, we entered into a contingent consideration arrangement. As of June 30, 2016, the balance represents a contractual liability which is no longer subject to valuation as the carrying amount approximates the fair value. The balance represents amounts we have not paid and have retained, subject to resolution of the Amkor Technology legal dispute (see legal proceedings under Note 8). We have classified the contingent consideration liabilities recorded for business acquisitions as a Level 3 liability, of which zero and $0.5 million is included in the non-current portion of acquisition-related liabilities as of the end of fiscal 2016 and 2015, respectively, and zero and $43.7 million has been included in current acquisition-related liabilities as of the end of fiscal 2016 and 2015, respectively. These fair value measurements are based on significant inputs not observable in the market. Changes in fair value of our Level 3 financial assets for fiscal 2016 and 2015 were as follows (in millions): 2016 2015 Beginning balance $ 15.8 $ 19.8 Net unrealized gain/(loss) (2.7 ) 0.9 Impairment recovery on redeemed investments 2.1 — Redemptions (6.6 ) (4.9 ) Ending balance $ 8.6 $ 15.8 Changes in fair value of our Level 3 financial liabilities for fiscal 2016 and 2015 were as follows (in millions): 2016 2015 Beginning balance $ 44.2 $ 110.1 Cash settlement of contingent consideration liability (18.2 ) (25.6 ) Issuance of common stock in settlement of liability — (21.5 ) Accretion and remeasurement (0.5 ) (18.8 ) Transfer out (25.5 ) — Ending balance $ — $ 44.2 There were no transfers in or out of our Level 1 or 2 assets or liabilities during fiscal 2016 or 2015. During fiscal 2016 we transferred $25.5 million of contingent consideration liability out of our Level 3 liabilities, as the underlying contingencies were resolved and it became a contractual liability as of the end of fiscal 2016. The carrying value of $25.5 million approximates fair value, and has been included in current acquisition-related liabilities as of the end of fiscal 2016. The fair values of our accounts receivable and accounts payable approximate their carrying values because of the short-term nature of those instruments. Intangible assets, property and equipment, and goodwill are measured at fair value on a non-recurring basis if impairment is indicated. The interest rate on our bank debt is variable, which is subject to change from time to time to reflect a market interest rate; accordingly, the carrying value of our bank debt approximates fair value. |
Concentration of Credit Risk | Concentration of Credit Risk Financial instruments that potentially subject us to concentrations of credit risk consist primarily of cash equivalents, investments, and accounts receivable. Our investment policy, which is predicated on capital preservation and liquidity, limits investments to U.S. government treasuries and agency issues, taxable securities, and municipal issued securities with a minimum rating of A1 (Moody’s) or P1 (Standard and Poor’s) or equivalent. Included within our investment portfolio are investments in ARS investments, which met our investment guidelines at the time of our investment. Our ARS investments are currently not liquid as a result of continued auction failures. We sell our products to contract manufacturers that provide manufacturing services for OEMs, and to some OEMs directly. We extend credit based on an evaluation of a customer’s financial condition, and we generally do not require collateral. The following customers accounted for more than 10% of our accounts receivable balance as of the end of fiscal 2016 and 2015: 2016 2015 Customer A 14% 13% Customer B 13% 13% Customer C 12% 20% Customer D 11% * Customer E 10% 13% * Less than 10% |
Other Concentrations | Other Concentrations Our products include certain components that are currently single sourced. We believe other vendors would be able to provide similar components, however, the qualification of such vendors may require extra lead time. In order to mitigate any adverse impacts from a disruption of supply, we strive to maintain an adequate supply of critical single-sourced components. |
Revenue Recognition | Revenue Recognition We recognize revenue from product sales when there is persuasive evidence that an arrangement exists, delivery has occurred and title has transferred, the price is fixed or determinable, and collection is reasonably assured. We accrue for estimated sales returns, incentives and other allowances at the time we recognize revenue. Our products contain embedded firmware and software, which together with, or consisting of, our ASIC chip, deliver the essential functionality of our products and, as such, software revenue recognition guidance is not applicable. Our sales to distributors are made under agreements that generally do not provide for price adjustments after purchase and provide for only limited return rights under product warranty. Revenue on these sales is recognized in the same manner as sales to our non-distributor customers. When sales rebates and price allowances are applicable they are estimated and recorded in the period the related revenue is recognized. |
Advertising Costs | Advertising Costs Advertising costs, if any, are expensed when incurred. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts We maintain allowances for doubtful accounts for estimated losses resulting from the inability of customers to meet their financial obligations. On an ongoing basis, we evaluate the collectability of accounts receivable based on a combination of factors. In circumstances in which we are aware of a specific customer’s potential inability to meet its financial obligation, we record a specific reserve of the bad debt against amounts due. In addition, we make judgments and estimates on the collectability of accounts receivable based on our historical bad debt experience, customers’ creditworthiness, current economic trends, recent changes in customers’ payment trends, and deterioration in customers’ operating results or financial position. If circumstances change adversely, additional bad debt allowances may be required. For all periods presented, credit losses on our accounts receivable have been insignificant, and we believe that an adequate allowance for doubtful accounts has been provided. |
Cost of Revenue | Cost of Revenue Our cost of revenue includes the cost of products shipped to our customers, which primarily includes the cost of products built to our specifications by our contract manufacturers, the cost of silicon wafers supplied by independent semiconductor wafer manufacturers, and the related assembly, package, and test costs of our products. Also included in our cost of revenue are personnel and related costs, including share-based compensation, for quality assurance and manufacturing support personnel; logistics costs; depreciation of equipment supporting manufacturing; acquired intangibles amortization; inventory write-downs and losses on purchase obligations; and warranty costs. |
Inventories | Inventories Inventories are stated at the lower of cost (first-in, first-out method) or market (estimated net realizable value) as of the end of fiscal 2016 and 2015 and consisted of the following (in millions): 2016 2015 Raw materials $ 59.2 $ 75.5 Finished goods 87.2 64.7 $ 146.4 $ 140.2 We record a write-down, if necessary, to reduce the carrying value of inventory to its net realizable value. The effect of these write-downs is to establish a new cost basis in the related inventory, which we do not subsequently write up. We also record a liability and charge to cost of revenue for estimated losses on inventory we are obligated to purchase from our contract manufacturers when such losses become probable from customer delays, order cancellations, or other factors. |
Property and Equipment | Property and Equipment We state property and equipment at cost less accumulated depreciation and amortization. We compute depreciation using the straight-line method over the estimated useful lives of the assets. We amortize leasehold improvements over the shorter of the lease term or the useful life of the asset. |
Foreign Currency | Foreign Currency The U.S. dollar is our functional and reporting currency. We remeasure our monetary assets and liabilities not denominated in the functional currency into U.S. dollar equivalents at the rate of exchange in effect on the balance sheet date. We measure and record non-monetary balance sheet accounts at the historical rate in effect at the date of transaction. We remeasure foreign currency expenses at the weighted average exchange rate in the month that the transaction occurred. These foreign currency transactions and remeasurement gains and losses, resulted in a net loss of $5.8 million in fiscal 2016, a net gain of $14.7 million in 2015, and were immaterial in fiscal 2014. Gains and losses resulting from foreign currency transactions are included in selling, general, and administrative expenses in the consolidated statements of income. We also enter into foreign currency contracts to manage exposure related to certain foreign currency obligations. The foreign currency contracts are not designated as hedging instruments and, accordingly, are not subject to hedge accounting. In fiscal year 2015, we entered into foreign currency forward contracts to purchase Japanese yen, using U.S. dollars. As of June 30, 2016, we had no outstanding foreign currency forward contracts. In fiscal 2016, we recognized net realized gains of $4.8 million and in fiscal 2015, we recognized net unrealized losses of $1.3 million on the foreign currency forward contracts, which are recorded in selling, general, and administrative expenses in the condensed consolidated statements of income. |
Goodwill | Goodwill Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired. Changes in our goodwill balance for fiscal 2016 and 2015 were as follows (in millions): 2016 2015 Beginning balance $ 206.8 $ 61.0 Acquisition activity - 153.4 Post acquisition adjustments - (7.6 ) Ending balance $ 206.8 $ 206.8 We have allocated our goodwill to a single company-wide reporting unit. We perform a qualitative assessment of the goodwill in the fourth quarter of each fiscal year. In assessing the qualitative factors, we considered the impact of key factors including change in industry and competitive environment, market capitalization, stock price, gross margin and cash flow from operating activities. We concluded that the fair value of the single company-wide reporting unit exceeded its carrying amount. As such, it was not necessary to perform the two-step quantitative goodwill impairment test. The first step requires comparing the fair value of our one reporting unit to its net book value, including goodwill. The second step of the process is only performed if a potential impairment exists, and it involves determining the difference between the fair value of the reporting unit's net assets other than goodwill to the fair value of the reporting unit and if the difference is less than the net book value of goodwill, an impairment exists and is recorded. No goodwill impairment was recognized for fiscal 2016, 2015, and 2014. |
Impairment of Long-Lived Assets | Impairment of Long-Lived Assets We evaluate long-lived assets, such as property and equipment and intangible assets subject to amortization, for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. We measure recoverability of assets to be held and used by a comparison of the carrying amount of an asset to estimated undiscounted future cash flows expected to be generated by the asset. We review the carrying value of indefinite-lived intangible assets for impairment at least annually during the last quarter of our fiscal year, or more frequently if we believe indicators of impairment exist. If the carrying amount of the asset exceeds its estimated undiscounted future cash flows, we recognize an impairment charge in an amount by which the carrying amount of the asset exceeds the fair value of the asset. Assets to be disposed of would be separately presented in the consolidated balance sheets and reported at the lower of the carrying amount or fair value less costs to sell, and would no longer be depreciated. The assets and liabilities of a disposed group classified as held for sale would be presented separately in the appropriate asset and liability sections of the consolidated balance sheets. During fiscal 2016, we recorded a $6.7 million impairment charge for an acquired intangible asset related to ThinTouch developed technology, which we determined is probable not to be recoverable, based on revenue forecasts. This intangible asset has been written down to zero. |
Other Accrued Liabilities | Other Accrued Liabilities As of the end of fiscal 2016 and 2015, other accrued liabilities consisted of the following (in millions): 2016 2015 Customer obligations $ 34.8 $ 36.9 Inventory obligations 24.0 17.2 Warranty 3.5 2.8 Other 20.0 17.2 $ 82.3 $ 74.1 |
Segment Information | Segment Information We operate in one segment: the development, marketing, and sale of intuitive human interface solutions for electronic devices and products. The chief operating decision maker is the chief executive officer who evaluates financial performance and allocates resources using financial information reported on a company-wide basis. |
Share-Based Compensation | Share-Based Compensation We utilize the Black-Scholes option pricing model to estimate the grant date fair value of stock options granted to employees, which requires the input of highly subjective assumptions, including expected volatility and expected life. Historical and implied volatilities were used in estimating the fair value of our stock option awards. The expected life for our options was previously estimated based on historical trends since our initial public offering. In fiscal 2011, we began to grant options with a contractual life of seven years rather than 10 years, and we began using the simplified method to establish the expected life as we did not have any history of options with seven-year lives. In fiscal 2013, we began to grant options that vest over a three-year period rather than a four-year period and in fiscal 2016, we began to grant some options that vest over a four-year period. We continue to use the simplified method to establish the expected life as we have limited history of options which vest over a three year period. Changes in these inputs and assumptions can materially affect the measure of estimated fair value of our share-based compensation. Further, we estimate forfeitures for share-based awards that are not expected to vest. We charge estimated fair value less estimated forfeitures to earnings on a straight-line basis over the vesting period of the entire underlying award, which is generally three to four years for our stock option and deferred stock unit, or DSU, awards, three years for our market stock unit, or MSU, awards, and up to two years for our employee stock purchase plan. |
Income Taxes | Income Taxes We account for income taxes under the asset and liability method. We recognize deferred tax assets and liabilities for the future tax consequences attributable to differences between the financial statement carrying amounts of existing assets and liabilities and their respective tax bases, and operating loss and tax credit carryforwards. We measure deferred tax assets and liabilities using enacted tax rates expected to apply to taxable income in the years in which those temporary differences are expected to be recovered or settled. We recognize the effect of a change in tax rates in income on deferred tax assets and liabilities in the period that includes the enactment date. We establish valuation allowances when necessary to reduce deferred tax assets to the amounts that are more likely than not to be realized. We consider the operating earnings of our foreign subsidiaries to be indefinitely invested outside the United States. Accordingly, no provision has been made for the U.S. federal, state, or foreign taxes that may result from future remittances of undistributed earnings of our foreign subsidiaries. We use a two-step approach to recognizing and measuring uncertain tax positions. The first step is to determine whether it is more-likely-than-not that a tax position will be sustained upon examination, including resolution of any related appeals or litigation processes. The second step is to measure the tax benefit as the largest amount that is more than 50% likely of being realized upon ultimate settlement with a taxing authority. The calculation of tax liabilities involves significant judgment in estimating the impact of uncertainties in the application of highly complex tax laws. Resolution of these uncertainties in a manner inconsistent with our expectations could have a material impact on our consolidated financial position, results of operations, and cash flows. We believe we have adequately provided for reasonably foreseeable outcomes in connection with the resolution of income tax uncertainties. However, our results have in the past, and could in the future, include favorable and unfavorable adjustments to our estimated tax liabilities in the period a determination of such estimated tax liability is made or resolved, upon the filing of an amended return, upon a change in facts, circumstances, or interpretation, or upon the expiration of a statute of limitation. Accordingly, our effective tax rate could fluctuate materially from period to period. In November 2015, the Financial Accounting Standards Board, or FASB, issued an accounting standards update, or ASU, which eliminates the current requirement to present deferred tax liabilities and assets as current and non-current in a classified balance sheet. We early adopted the ASU, effective for our disclosures at the end of fiscal 2016, on a prospective basis. Adoption of this ASU resulted in a reclassification of our net current deferred tax assets and liabilities to net non-current deferred tax assets and liabilities in our consolidated balance sheet as of the end of fiscal 2016. No prior periods were retrospectively adjusted. |
Research and Development | Research and Development Research and development costs are expensed as incurred. |
Recently Issued Accounting Pronouncements Not Yet Effective | Recently Issued Accounting Pronouncements Not Yet Effective In May 2014, the Financial Accounting Standards Board, or FASB, issued an accounting standards update, or ASU, on Revenue from Contracts with Customers, which requires an entity to recognize the amount of revenue it expects to be entitled to for the transfer of promised goods or services to customers. The new standard will replace most existing revenue recognition guidance in U.S. GAAP when the new standard becomes effective. In March 2016, the FASB issued an ASU on Revenue from Contracts with Customers: Principal versus Agent Considerations (Reporting Revenue Gross versus Net). This ASU amends the principal-versus-agent implementation guidance and illustrations in the Board’s new revenue standard. The FASB issued the ASU in response to concerns identified by stakeholders, including those related to (1) determining the appropriate unit of account under the revenue standard’s principal-versus-agent guidance, and (2) applying the indicators of whether an entity is a principal or an agent in accordance with the revenue standard’s control principle. In April 2016, the FASB issued an ASU for revenue from contracts with customers identifying performance obligations and licensing. The ASU provides further guidance in identifying performance obligations and determining the appropriate accounting for licensing arrangements. The new standard is effective for us in our fiscal year 2019, with early adoption permitted in the first quarter of fiscal 2018. We are evaluating the effect this new standard will have on our consolidated financial statements and related disclosures. The new standard permits the use of either the retrospective or cumulative effect transition method. We have not yet selected a transition method or determined the effect of the standard on our ongoing financial reporting. In March 2016, the FASB issued an ASU for stock compensation. This update simplifies several aspects of the accounting for employee share-based payment transactions including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. The ASU will be effective for us beginning in the first quarter of fiscal 2018, with early adoption permitted. We are evaluating the timing of our adoption of this ASU as well as the effects of adoption of this ASU on our financial statements. In February 2016, the FASB issued an ASU on leases. This update requires organizations that lease assets with lease terms of more than 12 months to recognize assets and liabilities for the rights and obligations created by those leases on their balance sheets. It also requires new qualitative and quantitative disclosures to help investors and other financial statement users better understand the amount, timing, and uncertainty of cash flows arising from leases. The new standard will be effective for us beginning in the first quarter of our fiscal year 2020, with early adoption permitted. We are evaluating the effects of adoption of this ASU on our financial statements. In January 2016, the FASB issued an ASU on 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 us beginning in our first quarter of fiscal 2019, with early adoption permitted. We are evaluating the effects of the adoption of this ASU on our financial statements. In July 2015, the FASB issued an ASU that requires an entity to measure inventory at the lower of cost and net realizable value when the FIFO or average cost method is used. Net realizable value is the estimated selling price in the ordinary course of business, less reasonably predictable costs of completion, disposal, and transportation. The guidance will become effective for us in our first quarter of fiscal 2018, with early adoption permitted. We are evaluating the effects of the adoption of this ASU on our financial statements. |
Organization and Summary of S23
Organization and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Accounting Policies [Abstract] | |
Investments in Available-for-Sale Securities and Cash Equivalents | Our cash equivalents and investments classified as available-for-sale securities as of the end of fiscal 2016 and 2015 were as follows (in millions): 2016 Gross Amortized Unrealized Fair Cost Gains Value Reported as cash equivalents: Money market funds $ 319.1 $ — $ 319.1 Reported as non-current assets: Auction rate securities 5.3 3.3 8.6 Total available-for-sale securities $ 324.4 $ 3.3 $ 327.7 2015 Gross Amortized Unrealized Fair Cost Gains Value Reported as cash equivalents: Money market funds $ 376.3 $ — $ 376.3 Reported as current assets: Auction rate securities 0.6 — 0.6 Reported as non-current assets: Auction rate securities 7.3 7.9 15.2 Total available-for-sale securities $ 384.2 $ 7.9 $ 392.1 |
Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis | Financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the end of fiscal 2016 and 2015 were as follows (in millions): 2016 2015 Level 1 Level 2 Level 3 Level 1 Level 2 Level 3 Assets: Money market $ 319.1 $ — $ — $ 376.3 $ — $ — Auction rate securities — — 8.6 — — 15.8 Total available-for-sale securities $ 319.1 $ — $ 8.6 $ 376.3 $ — $ 15.8 Liabilities: Contingent consideration liabilities recorded for business combination $ — $ — $ — $ — $ — $ 44.2 Foreign currency contract liabilities $ — $ — $ — $ — $ 1.3 $ — |
Changes in Fair Value of Level 3 Financial Assets | Changes in fair value of our Level 3 financial assets for fiscal 2016 and 2015 were as follows (in millions): 2016 2015 Beginning balance $ 15.8 $ 19.8 Net unrealized gain/(loss) (2.7 ) 0.9 Impairment recovery on redeemed investments 2.1 — Redemptions (6.6 ) (4.9 ) Ending balance $ 8.6 $ 15.8 |
Changes in Fair Value of Contingent Consideration | Changes in fair value of our Level 3 financial liabilities for fiscal 2016 and 2015 were as follows (in millions): 2016 2015 Beginning balance $ 44.2 $ 110.1 Cash settlement of contingent consideration liability (18.2 ) (25.6 ) Issuance of common stock in settlement of liability — (21.5 ) Accretion and remeasurement (0.5 ) (18.8 ) Transfer out (25.5 ) — Ending balance $ — $ 44.2 |
Accounts Receivable Balance Percentage of Different Customers | The following customers accounted for more than 10% of our accounts receivable balance as of the end of fiscal 2016 and 2015: 2016 2015 Customer A 14% 13% Customer B 13% 13% Customer C 12% 20% Customer D 11% * Customer E 10% 13% * Less than 10% |
Inventories | Inventories are stated at the lower of cost (first-in, first-out method) or market (estimated net realizable value) as of the end of fiscal 2016 and 2015 and consisted of the following (in millions): 2016 2015 Raw materials $ 59.2 $ 75.5 Finished goods 87.2 64.7 $ 146.4 $ 140.2 |
Schedule of Goodwill | Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired. Changes in our goodwill balance for fiscal 2016 and 2015 were as follows (in millions): 2016 2015 Beginning balance $ 206.8 $ 61.0 Acquisition activity - 153.4 Post acquisition adjustments - (7.6 ) Ending balance $ 206.8 $ 206.8 |
Other Accrued Liabilities | As of the end of fiscal 2016 and 2015, other accrued liabilities consisted of the following (in millions): 2016 2015 Customer obligations $ 34.8 $ 36.9 Inventory obligations 24.0 17.2 Warranty 3.5 2.8 Other 20.0 17.2 $ 82.3 $ 74.1 |
Net Income Per Share (Tables)
Net Income Per Share (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Earnings Per Share [Abstract] | |
Computation of Basic and Diluted Net Income Per Share | The computation of basic and diluted net income per share for fiscal 2016, 2015, and 2014 was as follows (in millions, except per share amounts): 2016 2015 2014 Numerator: Net income $ 72.2 $ 110.4 $ 46.7 Denominator: Shares, basic 36.6 36.9 34.8 Effect of dilutive share-based awards 1.3 2.0 2.3 Shares, diluted 37.9 38.9 37.1 Net income per share: Basic $ 1.97 $ 2.99 $ 1.34 Diluted $ 1.91 $ 2.84 $ 1.26 |
Share-Based Awards, not Included in Calculation of Diluted Net Income Per Share | Diluted net income per share does not include the effect of potential common shares related to certain share-based awards for fiscal 2016, 2015, and 2014 as follows (in millions): 2016 2015 2014 Share-based awards 0.7 0.3 0.2 |
Auction Rate Securities (Tables
Auction Rate Securities (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Text Block [Abstract] | |
ARS Investments | The various types of ARS investments we held as of the end of fiscal 2016, including the original cost basis, other-than-temporary impairment included in retained earnings, new cost basis, unrealized gain/(loss), and fair value consisted of the following (in millions): Original Cost Basis Other-than- temporary Impairment in Retained Earnings New Cost Basis Unrealized Gain Fair Value Credit linked notes $ 7.5 $ (2.2 ) (1) $ 5.3 $ 1.8 $ 7.1 Preferred stock 5.0 (5.0 ) — 1.5 1.5 Total ARS Investments $ 12.5 $ (7.2 ) $ 5.3 $ 3.3 $ 8.6 (1) Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $4.4 million on non-current other assets. Accretion is reclassified from accumulated other comprehensive income and recorded in the consolidated statements of income as interest income. The various types of ARS investments we held as of the end of fiscal 2015, including the original cost basis, other-than-temporary impairment included in retained earnings, new cost basis, unrealized gain/(loss), and fair value consisted of the following (in millions): Original Cost Basis Other-than- temporary Impairment in Retained Earnings New Cost Basis Unrealized Gain Fair Value Credit linked notes $ 13.5 $ (6.1 ) (1) $ 7.4 $ 5.0 $ 12.4 Preferred stock 5.0 (5.0 ) — 2.8 2.8 Municipals 0.6 (0.1 ) 0.5 0.1 0.6 Total ARS Investments $ 19.1 $ (11.2 ) $ 7.9 $ 7.9 $ 15.8 (1) Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $2.7 million on non-current other assets. Accretion is reclassified from accumulated other comprehensive income and recorded in the consolidated statements of income as interest income. |
Property and Equipment (Tables)
Property and Equipment (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Property Plant And Equipment [Abstract] | |
Property and Equipment | Property and equipment as of the end of fiscal 2016 and 2015 consisted of the following (in millions): Life 2016 2015 Land — $ 13.3 $ 13.3 Building and building improvements 35 years 44.5 44.3 Computer equipment 3 - 5 years 25.3 23.5 Manufacturing equipment 1 65.8 61.0 Furniture, fixtures, and leasehold improvements 3 years to 10 years 21.1 22.7 Capitalized software 3 years to 7 years 30.0 26.0 200.0 190.8 Accumulated depreciation and amortization (87.3 ) (67.4 ) Property and equipment, net $ 112.7 $ 123.4 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Business Combinations [Abstract] | |
Schedule of Fair Value of Consideration Transferred | The Acquisition Date fair value of the consideration transferred totaled $127.8 million, which consisted of the following (in millions): Cash $ 20.0 Shares issued 70.3 Contingent consideration 37.5 Total identifiable assets acquired 127.8 |
Acquired Intangibles (Tables)
Acquired Intangibles (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |
Summary of Life, Gross Carrying Value and Related Accumulated Amortization of Acquired Intangible Assets | The following table summarizes the life, the gross carrying value of our acquired intangible assets, and the related accumulated amortization as of the end of fiscal 2016 and 2015 (in millions): Weighted Average Life in Years 2016 2015 Display driver technology 5.3 $ 164.0 $ 164.0 Fingerprint authentication technology 3.6 75.6 75.6 ThinTouch technology - 8.9 Customer relationships 2.8 48.4 48.4 Licensed technology and other 5.0 1.3 1.3 Backlog - 10.3 Patents 7.7 4.8 0.1 Supplier arrangement 1.8 22.0 22.0 Acquired intangibles, gross 4.2 316.1 330.6 Accumulated amortization (155.8 ) (95.2 ) Acquired intangibles, net $ 160.3 $ 235.4 |
Schedule of Expected Annual Aggregate Amortization Expense | The following table presents expected annual aggregate amortization expense in future fiscal years (in millions): 2017 $ 59.3 2018 48.6 2019 34.2 2020 10.6 2021 3.5 Thereafter 4.1 Future amortization $ 160.3 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Commitments And Contingencies Disclosure [Abstract] | |
Aggregate Minimum Rental Commitments for Non-cancelable Operating Leases | The aggregate minimum rental commitments in future fiscal years for non-cancelable operating leases with initial or remaining terms in excess of one year were as follows (in millions): Operating Lease Fiscal Year Payments 2017 $ 7.5 2018 3.4 2019 1.4 2020 0.5 2021 0.4 Thereafter 0.1 Total minimum operating lease payments $ 13.3 |
Stockholders' Equity (Tables)
Stockholders' Equity (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Equity [Abstract] | |
Shares Reserved for Future Issuance | Shares of common stock reserved for future issuance as of the end of fiscal 2016 were as follows: Stock options outstanding 2,711,542 Deferred stock units outstanding 1,005,981 Market stock units outstanding 146,150 Awards available for grant under all share-based compensation plans 1,458,301 Reserved for future issuance 5,321,974 |
Share-Based Compensation (Table
Share-Based Compensation (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Share-Based Compensation Awards Available for Grant or Issuance | Share-based compensation awards available for grant or issuance for each plan as of the beginning of the fiscal year, including changes in the balance of awards available for grant for fiscal 2016, were as follows: Awards 2010 Available 2001 2010 Employee Under All Incentive Incentive Stock Share-Based Compensation Compensation Purchase Award Plans Plan Plan Plan Balance at June 2015 2,560,131 — 2,302,512 257,619 Additional shares authorized 375,296 — — 375,296 Stock options granted (440,362 ) — (440,362 ) — Deferred stock units granted (704,225 ) — (704,225 ) — Market stock units granted (77,700 ) — (77,700 ) — Market stock units performance adjustment (39,273 ) — (39,273 ) — Purchases under employee stock purchase plan (302,781 ) — — (302,781 ) Forfeited 87,315 100 87,215 — Plan shares expired (100 ) (100 ) — — Balance at June 2016 1,458,301 — 1,128,167 330,134 |
Share-Based Compensation and Related Tax Benefit Recognized in Consolidated Statements of Income | Share-based compensation and the related tax benefit recognized in our consolidated statements of income for fiscal 2016, 2015, and 2014 were as follows (in millions): 2016 2015 2014 Cost of revenue $ 1.8 $ 1.4 $ 1.1 Research and development 30.6 24.5 18.5 Selling, general, and administrative 24.4 18.2 13.3 Total $ 56.8 $ 44.1 $ 32.9 Income tax benefit on share-based compensation $ 14.7 $ 12.5 $ 10.6 |
Balance of Outstanding and Exercisable Stock Options | Certain stock option activity for fiscal 2016 and balances as of the end of fiscal 2016 were as follows: Stock Weighted Option Average Intrinsic Awards Exercise Value Outstanding Price (In millions) Balance at June 2015 2,870,425 $ 38.50 Granted 440,362 79.05 Exercised (570,156 ) 29.22 Forfeited (29,089 ) 70.18 Balance at June 2016 2,711,542 49.69 $ 39.9 Exercisable at June 2016 1,994,854 36.29 $ 39.7 |
Cash Received and Aggregate Intrinsic Value of Stock Options Exercised | Cash received and the aggregate intrinsic value of stock options exercised for fiscal 2016, 2015, and 2014 were as follows (in millions): 2016 2015 2014 Cash received $ 16.6 $ 36.2 $ 71.7 Aggregate intrinsic value $ 29.7 $ 69.9 $ 79.3 |
Shares Purchased, Weighted Average Purchase Price, Cash Received, and Aggregate Intrinsic Value for ESPP | Shares purchased, weighted average purchase price, cash received, and the aggregate intrinsic value for employee stock purchase plan purchases in fiscal 2016, 2015, and 2014 were as follows (in millions, except shares purchased and weighted average purchase price): 2016 2015 2014 Shares purchased 302,781 367,646 409,084 Weighted average purchase price $ 52.42 $ 35.11 $ 22.07 Cash received $ 15.8 $ 12.9 $ 9.0 Aggregate intrinsic value $ 7.0 $ 13.7 $ 12.8 |
Fair Value of Each Award Granted under ESPP | The fair value of each award granted under our 2010 ESPP for fiscal 2016, 2015, and 2014 was estimated using the Black-Scholes option pricing model, assuming no expected dividends and the following range of assumptions: 2016 2015 2014 Expected volatility 37.4% - 40.6% 36.8% - 47.9% 43.8% - 49.3% Expected life in years 0.5 - 1.0 0.5 - 2.0 0.5 - 1.0 Risk-free interest rate 0.33% - 0.54% 0.07% - 0.54% 0.05% - 0.13% Fair value per award $ 24.52 $ 21.23 $ 15.04 |
Market stock units outstanding [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance and Aggregate Intrinsic Value of Stock Units | MSU activity, including MSUs granted, delivered, and forfeited in fiscal 2016, and the balance and aggregate intrinsic value of MSUs as of the end of fiscal 2016 were as follows: Aggregate Weighted Intrinsic Average MSU Awards Value Grant Date Outstanding (in millions) Fair Value Balance at June 30, 2015 132,376 $ 58.95 Granted 77,700 126.74 Performance adjustment 39,273 — Delivered (103,199 ) 53.13 Balance at June 30, 2016 146,150 $ 7.6 97.54 |
Deferred stock units outstanding [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance and Aggregate Intrinsic Value of Stock Units | DSU activity, including DSUs granted, delivered, and forfeited in fiscal 2016, and the balance and aggregate intrinsic value of DSUs as of the end of fiscal 2016 were as follows: Aggregate Weighted Intrinsic Average DSU Awards Value Grant Date Outstanding (in millions) Fair Value Balance at June 30, 2015 860,376 $ 58.94 Granted 704,225 83.49 Delivered (500,394 ) 53.53 Forfeited (58,226 ) 73.82 Balance at June 30, 2016 1,005,981 $ 52.5 77.93 |
Stock Option Plans [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair Value of Each Award Granted | The fair value of each award granted under our share-based compensation plans for fiscal 2016, 2015, and 2014 was estimated at the date of grant using the Black-Scholes option pricing model, assuming no expected dividends and the following range of assumptions: 2016 2015 2014 Expected volatility 40.4% - 38.7% - 40.1% - Expected life in years 3.8 3.8 3.8 Risk-free interest rate 1.22% - 1.72% 1.18% - 1.80% 1.31% - 1.74% Fair value per award $ 28.30 $ 27.19 $ 18.72 |
Incentive Compensation Plans [member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Fair Value of Each Award Granted | The fair value of each MSU granted from our plans for fiscal 2016, 2015, and 2014 was estimated at the date of grant using the Monte Carlo simulation model, assuming no expected dividends and the following assumptions: 2016 2015 2014 Expected volatility of company 45.57 % 43.65 % 38.79 % Expected volatility of SOX index 19.65 % 20.60 % 24.95 % Correlation coefficient 0.42 0.43 0.53 Expected life in years 2.94 2.93 2.92 Risk-free interest rate 0.92 % 0.79 % 0.57 % Fair value per award $ 126.74 $ 66.48 $ 60.62 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Income Tax Disclosure [Abstract] | |
Tabular Disclosure of Income Before Income Tax Between Domestic and Foreign Jurisdictions | Income before provision for income taxes for fiscal 2016, 2015, and 2014 consisted of the following (in millions): 2016 2015 2014 United States $ 12.3 $ 13.4 $ 76.7 Foreign 63.3 146.8 (2.2 ) Income before provision for income taxes $ 75.6 $ 160.2 $ 74.5 |
Provision for Income Taxes | The provision for income taxes for fiscal 2016, 2015, and 2014 consisted of the following (in millions): 2016 2015 2014 Current tax expense/(benefit) Federal $ 12.1 $ 12.0 $ (3.3 ) Foreign 12.4 63.0 12.3 24.5 75.0 9.0 Deferred tax expense/(benefit) Federal (7.5 ) (3.7 ) 18.7 Foreign (13.6 ) (21.5 ) 0.1 (21.1 ) (25.2 ) 18.8 Provision for income taxes $ 3.4 $ 49.8 $ 27.8 |
Provision for Income Taxes Differs from Federal Statutory Rate | The provision for income taxes differs from the federal statutory rate for fiscal 2016, 2015, and 2014 as follows (in millions): 2016 2015 2014 Provision at U.S. federal statutory rate $ 26.6 $ 56.1 $ 26.1 Qualified stock options 5.1 2.7 0.9 Business credits (10.3 ) (4.7 ) (2.8 ) Foreign tax differential (22.4 ) (4.3 ) (19.6 ) Non-deductible portion of contingent consideration 0.9 (4.7 ) 21.2 Change in valuation allowance (1.4 ) (0.5 ) (0.3 ) Nondeductible amortization 4.4 2.7 0.9 Other differences 0.5 2.5 1.4 Provision for income taxes $ 3.4 $ 49.8 $ 27.8 |
Net Deferred Tax Assets (Liabilities) | Net deferred tax assets as of the end of fiscal 2016 and 2015 consisted of the following (in millions): 2016 2015 Current deferred tax assets $ — $ 17.6 Non-current deferred tax assets 14.7 0.9 Non-current deferred tax liabilities (9.0 ) (33.9 ) Net deferred tax assets/(liabilities) $ 5.7 $ (15.4 ) |
Significant Components of Deferred Tax Assets (Liabilities) | Significant components of our deferred tax assets (liabilities) as of the end of fiscal 2016 and 2015 consisted of the following (in millions): 2016 2015 Deferred tax assets: Investment writedowns $ 2.5 $ 5.8 Inventory writedowns 6.5 6.8 Property and equipment 0.8 1.3 Accrued compensation 2.5 3.3 Deferred compensation 1.7 2.8 Share-based compensation 12.6 8.8 Business credit carryforward 16.2 10.7 Net operating loss carryforward 2.5 5.7 Other accruals 2.4 4.3 47.7 49.5 Valuation allowance (14.1 ) (14.5 ) 33.6 35.0 Deferred tax liabilities: Acquisition intangibles (22.9 ) (43.7 ) Interest (5.0 ) (6.7 ) (27.9 ) (50.4 ) Net deferred tax assets/(liabilities) $ 5.7 $ (15.4 ) |
Reconciliation of Gross Unrecognized Tax Benefits | A reconciliation of the beginning and ending balance of gross unrecognized tax benefits for fiscal 2016, 2015, and 2014 consisted of the following (in millions): 2016 2015 2014 Beginning balance $ 11.6 $ 10.2 $ 8.2 Increase in unrecognized tax benefits related to current year tax positions 1.6 2.3 1.1 Increase in unrecognized tax benefits related to prior year tax positions 1.1 0.3 1.7 Decrease due to statute expiration (0.9 ) (1.2 ) (0.8 ) Ending Balance $ 13.4 $ 11.6 $ 10.2 |
Segment, Customers, and Geogr33
Segment, Customers, and Geographic Information (Tables) | 12 Months Ended |
Jun. 25, 2016 | |
Net Revenue within Geographic Areas Based on Customers' Locations | Net revenue within geographic areas based on our customers’ locations for fiscal 2016, 2015, and 2014, consisted of the following (in millions): 2016 2015 2014 Japan $ 651.0 $ 698.5 $ 45.0 China 518.7 504.2 449.4 United States 249.1 223.0 93.8 South Korea 182.5 142.1 233.9 Taiwan 61.1 127.2 118.8 Other 4.5 8.0 6.6 $ 1,666.9 $ 1,703.0 $ 947.5 |
Net Revenue from External Customers | Net revenue from external customers for each group of similar products for fiscal 2016, 2015, and 2014 consisted of the following (in millions): 2016 2015 2014 Mobile product applications $ 1,459.5 $ 1,442.1 $ 689.8 PC product applications 207.4 260.9 257.7 $ 1,666.9 $ 1,703.0 $ 947.5 |
Long-Lived Assets within Geographic Areas | Long-lived assets within geographic areas as of the end of fiscal 2016 and 2015 consisted of the following (in millions): 2016 2015 United States $ 174.8 $ 200.7 Asia/Pacific 305.0 364.9 $ 479.8 $ 565.6 |
Sales Revenue, Net [Member] | |
Major Customers' as Percentage of Net Revenue | Major customers’ revenue as a percentage of total net revenue for fiscal 2016, 2015, and 2014 were as follows: 2016 2015 2014 Customer A 21% 18% 28% Customer B 20% 16% * Customer C 15% 11% * Customer D * 11% * * Less than 10% |
Organization and Summary of S34
Organization and Summary of Significant Accounting Policies - Investments in Available-for-Sale Securities and Cash Equivalents (Detail) - USD ($) $ in Millions | Jun. 25, 2016 | Jun. 27, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 324.4 | $ 384.2 |
Gross Unrealized Gains | 3.3 | 7.9 |
Fair Value | 327.7 | 392.1 |
Money Market [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 319.1 | 376.3 |
Fair Value | 319.1 | 376.3 |
Auction Rate Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5.3 | 7.9 |
Fair Value | 8.6 | 15.8 |
Current Assets [Member] | Auction Rate Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0.6 | |
Fair Value | 0.6 | |
Non-Current Assets [Member] | Auction Rate Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 5.3 | 7.3 |
Gross Unrealized Gains | 3.3 | 7.9 |
Fair Value | $ 8.6 | $ 15.2 |
Organization and Summary of S35
Organization and Summary of Significant Accounting Policies - Financial Assets and Liabilities Measured at Fair Value on Recurring Basis (Detail) - USD ($) $ in Millions | Jun. 25, 2016 | Jun. 27, 2015 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | $ 327.7 | $ 392.1 |
Fair Value, Measurements, Recurring [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 319.1 | 376.3 |
Fair Value, Measurements, Recurring [Member] | Level 2 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Foreign currency contract liabilities | 1.3 | |
Fair Value, Measurements, Recurring [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 8.6 | 15.8 |
Fair Value, Measurements, Recurring [Member] | Money Market [Member] | Level 1 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | 319.1 | 376.3 |
Fair Value, Measurements, Recurring [Member] | Auction Rate Securities [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total available-for-sale securities | $ 8.6 | 15.8 |
Fair Value, Measurements, Recurring [Member] | Contingent Consideration Liability Recorded for Business Combination [Member] | Level 3 [Member] | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Contingent consideration liabilities recorded for business combination | $ 44.2 |
Organization and Summary of S36
Organization and Summary of Significant Accounting Policies - Additional Information (Detail) ¥ in Millions | 12 Months Ended | |||||||
Jun. 25, 2016USD ($)Segment | Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($) | Jun. 29, 2013 | Jun. 25, 2011 | Jun. 30, 2016USD ($) | Mar. 31, 2015USD ($) | Mar. 31, 2015JPY (¥) | |
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Contingent consideration liability recorded for business acquisition | $ 48,600,000 | ¥ 5,780 | ||||||
Transfer amount of assets or liabilities of level one | $ 0 | $ 0 | ||||||
Transfer amount of assets or liabilities of level two | 0 | 0 | ||||||
Transfer amount of assets or liabilities of level three | 0 | 0 | ||||||
Contingent consideration liability out of level 3 liabilities | 25,500,000 | |||||||
Acquisition-related liabilities | 25,500,000 | 102,200,000 | ||||||
Goodwill impairment | 0 | 0 | $ 0 | |||||
Impairment of acquired intangibles | $ 6,700,000 | |||||||
Number of operating segments | Segment | 1 | |||||||
Contractual life of grant option | 7 years | |||||||
Contractual life of Grant option | 10 years | |||||||
Earlier Options vesting period | 4 years | 3 years | ||||||
Earlier Options vesting period | 4 years | |||||||
Market stock units outstanding [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Earlier Options vesting period | 3 years | |||||||
Minimum [Member] | Deferred stock units outstanding [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Earlier Options vesting period | 3 years | |||||||
Minimum [Member] | Stock option outstanding[Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Earlier Options vesting period | 3 years | |||||||
Maximum [Member] | Deferred stock units outstanding [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Earlier Options vesting period | 4 years | |||||||
Maximum [Member] | Stock option outstanding[Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Earlier Options vesting period | 4 years | |||||||
Maximum [Member] | Employee stock purchase plan [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Earlier Options vesting period | 2 years | |||||||
Thin Touch Developed Technology [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Impairment of acquired intangibles | $ 6,700,000 | |||||||
Intangible assets | 0 | |||||||
Renesas SP Drivers, Inc. [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Net gain (loss) on foreign currency transactions | 5,800,000 | 14,700,000 | ||||||
Level 3 [Member] | Other Noncurrent Liabilities [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Contingent consideration liability recorded for business acquisition | 0 | 500,000 | ||||||
Level 3 [Member] | Other Current Liabilities [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Contingent consideration liability recorded for business acquisition | 0 | 43,700,000 | ||||||
Subsequent Event [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Foreign currency forward contracts outstanding amount | $ 0 | |||||||
Forward Contracts [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Net gain (loss) on foreign currency transactions | $ 4,800,000 | $ (1,300,000) | ||||||
Forward Contracts [Member] | Subsequent Event [Member] | ||||||||
Organization Consolidation And Presentation Of Financial Statements [Line Items] | ||||||||
Foreign currency forward contracts outstanding amount | $ 0 |
Organization and Summary of S37
Organization and Summary of Significant Accounting Policies - Changes in Fair Value of Level 3 Financial Assets (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 25, 2016 | Jun. 27, 2015 | |
Fair Value Disclosures [Abstract] | ||
Beginning balance | $ 15.8 | $ 19.8 |
Net unrealized gain/(loss) | (2.7) | 0.9 |
Impairment recovery on redeemed investments | 2.1 | |
Redemptions | (6.6) | (4.9) |
Ending balance | $ 8.6 | $ 15.8 |
Organization and Summary of S38
Organization and Summary of Significant Accounting Policies - Changes in Fair Value of Level 3 Contingent Consideration Liability (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 25, 2016 | Jun. 27, 2015 | |
Fair Value Disclosures [Abstract] | ||
Beginning balance | $ 44.2 | $ 110.1 |
Cash settlement of contingent consideration liability | (18.2) | (25.6) |
Issuance of common stock in settlement of liability | (21.5) | |
Accretion and remeasurement | (0.5) | (18.8) |
Transfer out | $ (25.5) | |
Ending balance | $ 44.2 |
Organization and Summary of S39
Organization and Summary of Significant Accounting Policies - Accounts Receivable Balance Percentage of Different Customers (Detail) - Credit Concentration Risk [Member] - Accounts Receivable [Member] | 12 Months Ended | |
Jun. 25, 2016 | Jun. 27, 2015 | |
Customer A [Member] | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable major customer percentage | 14.00% | 13.00% |
Customer B [Member] | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable major customer percentage | 13.00% | 13.00% |
Customer C [Member] | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable major customer percentage | 12.00% | 20.00% |
Customer D [Member] | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable major customer percentage | 11.00% | |
Customer E [Member] | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable major customer percentage | 10.00% | 13.00% |
Organization and Summary of S40
Organization and Summary of Significant Accounting Policies - Accounts Receivable Balance Percentage of Different Customers (Parenthetical) (Detail) - Customer B [Member] - Credit Concentration Risk [Member] - Accounts Receivable [Member] | 12 Months Ended | |
Jun. 25, 2016 | Jun. 27, 2015 | |
Revenue, Major Customer [Line Items] | ||
Accounts receivable major customer percentage | 13.00% | 13.00% |
Maximum [Member] | ||
Revenue, Major Customer [Line Items] | ||
Accounts receivable major customer percentage | 10.00% |
Organization and Summary of S41
Organization and Summary of Significant Accounting Policies - Inventories (Detail) - USD ($) $ in Millions | Jun. 25, 2016 | Jun. 27, 2015 |
Inventory Disclosure [Abstract] | ||
Raw materials | $ 59.2 | $ 75.5 |
Finished goods | 87.2 | 64.7 |
Total Inventories | $ 146.4 | $ 140.2 |
Organization and Summary of S42
Organization and Summary of Significant Accounting Policies - Schedule of Goodwill (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 25, 2016 | Jun. 27, 2015 | |
Goodwill And Intangible Assets Disclosure [Abstract] | ||
Beginning balance | $ 206.8 | $ 61 |
Acquisition activity | 0 | 153.4 |
Post acquisition adjustments | 0 | (7.6) |
Ending balance | $ 206.8 | $ 206.8 |
Organization and Summary of S43
Organization and Summary of Significant Accounting Policies - Other Accrued Liabilities (Detail) - USD ($) $ in Millions | Jun. 25, 2016 | Jun. 27, 2015 |
Payables And Accruals [Abstract] | ||
Customer obligations | $ 34.8 | $ 36.9 |
Inventory obligations | 24 | 17.2 |
Warranty | 3.5 | 2.8 |
Other | 20 | 17.2 |
Other accrued liabilities | $ 82.3 | $ 74.1 |
Net Income Per Share - Computat
Net Income Per Share - Computation of Basic and Diluted Net Income Per Share (Detail) - USD ($) $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Numerator: | |||
Net income | $ 72.2 | $ 110.4 | $ 46.7 |
Denominator: | |||
Shares, basic | 36.6 | 36.9 | 34.8 |
Effect of dilutive share-based awards | 1.3 | 2 | 2.3 |
Shares, diluted | 37.9 | 38.9 | 37.1 |
Net income per share: | |||
Basic | $ 1.97 | $ 2.99 | $ 1.34 |
Diluted | $ 1.91 | $ 2.84 | $ 1.26 |
Net Income Per Share - Share-Ba
Net Income Per Share - Share-Based Awards, not Included in Calculation of Diluted Net Income Per Share (Detail) - shares shares in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Share-Based Awards [Member] | |||
Antidilutive Securities Excluded From Computation Of Earnings Per Share [Line Items] | |||
Share-based awards | 0.7 | 0.3 | 0.2 |
Auction Rate Securities - Addit
Auction Rate Securities - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Schedule of Available-for-sale Securities [Line Items] | |||
Maturity period one | 2,018 | ||
Auction rate securities with fair value having no stated maturity | $ 1.5 | ||
Auction Rate Securities Investments [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
ARS investments redeemed at par value | 6.6 | $ 4.9 | $ 0 |
Auction Rate Securities with fair value maturing in 2018 | 7.1 | ||
Original Cost Basis | 12.5 | $ 19.1 | |
Auction Rate Securities Investments [Member] | Below Investment Grade [Member] | |||
Schedule of Available-for-sale Securities [Line Items] | |||
Original Cost Basis | $ 12.5 |
Auction Rate Securities - ARS I
Auction Rate Securities - ARS Investments (Detail) - USD ($) $ in Millions | Jun. 25, 2016 | Jun. 27, 2015 | ||
Schedule of Available-for-sale Securities [Line Items] | ||||
Amortized Cost | $ 324.4 | $ 384.2 | ||
Fair Value | 327.7 | 392.1 | ||
Auction Rate Securities Investments [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Original Cost Basis | 12.5 | 19.1 | ||
Other-than- temporary Impairment in Retained Earnings | (7.2) | (11.2) | ||
Amortized Cost | 5.3 | 7.9 | ||
Unrealized Gain | 3.3 | 7.9 | ||
Fair Value | 8.6 | 15.8 | ||
Auction Rate Securities Investments [Member] | Credit Linked Notes [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Original Cost Basis | 7.5 | 13.5 | ||
Other-than- temporary Impairment in Retained Earnings | (2.2) | [1] | (6.1) | [2] |
Amortized Cost | 5.3 | 7.4 | ||
Unrealized Gain | 1.8 | 5 | ||
Fair Value | 7.1 | 12.4 | ||
Auction Rate Securities Investments [Member] | Preferred Stock [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Original Cost Basis | 5 | 5 | ||
Other-than- temporary Impairment in Retained Earnings | (5) | (5) | ||
Unrealized Gain | 1.5 | 2.8 | ||
Fair Value | $ 1.5 | 2.8 | ||
Auction Rate Securities Investments [Member] | Municipals [Member] | ||||
Schedule of Available-for-sale Securities [Line Items] | ||||
Original Cost Basis | 0.6 | |||
Other-than- temporary Impairment in Retained Earnings | (0.1) | |||
Amortized Cost | 0.5 | |||
Unrealized Gain | 0.1 | |||
Fair Value | $ 0.6 | |||
[1] | Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $4.4 million on non-current other assets. Accretion is reclassified from accumulated other comprehensive income and recorded in the consolidated statements of income as interest income. | |||
[2] | Other-than-temporary impairment in retained earnings is partially offset by cumulative accretion of $2.7 million on non-current other assets. Accretion is reclassified from accumulated other comprehensive income and recorded in the consolidated statements of income as interest income. |
Auction Rate Securities - ARS48
Auction Rate Securities - ARS Investments (Parenthetical) (Detail) - USD ($) $ in Millions | Jun. 25, 2016 | Jun. 27, 2015 |
Investments Debt And Equity Securities [Abstract] | ||
Investment securities accretion | $ 4.4 | $ 2.7 |
Property and Equipment - Proper
Property and Equipment - Property and Equipment (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 25, 2016 | Jun. 27, 2015 | |
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 200 | $ 190.8 |
Accumulated depreciation and amortization | (87.3) | (67.4) |
Property and equipment, net | 112.7 | 123.4 |
Land [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | 13.3 | 13.3 |
Building and Building Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 44.5 | 44.3 |
Estimated useful lives | 35 years | |
Computer Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 25.3 | 23.5 |
Computer Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Computer Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Manufacturing Equipment [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 65.8 | 61 |
Manufacturing Equipment [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives | 1 year | |
Manufacturing Equipment [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives | 5 years | |
Furniture, Fixtures and Leasehold Improvements [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 21.1 | 22.7 |
Furniture, Fixtures and Leasehold Improvements [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Furniture, Fixtures and Leasehold Improvements [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives | 10 years | |
Capitalized Software [Member] | ||
Property Plant And Equipment [Line Items] | ||
Property and equipment, gross | $ 30 | $ 26 |
Capitalized Software [Member] | Minimum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives | 3 years | |
Capitalized Software [Member] | Maximum [Member] | ||
Property Plant And Equipment [Line Items] | ||
Estimated useful lives | 7 years |
Property and Equipment - Additi
Property and Equipment - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 25, 2016 | Jun. 27, 2015 | |
Property Plant And Equipment Useful Life And Values [Abstract] | ||
Retirement of fully depreciated property | $ 10.9 | $ 6.6 |
Acquisitions - Additional Infor
Acquisitions - Additional Information (Detail) $ / shares in Units, ¥ in Millions, $ in Millions | Oct. 01, 2014USD ($)¥ / $ | Oct. 01, 2014JPY (¥)¥ / $ | Nov. 07, 2013USD ($)$ / sharesshares | Jun. 25, 2016USD ($) | Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($) | Jun. 30, 2016USD ($) | Jun. 25, 2016JPY (¥) | Sep. 30, 2015USD ($) | Sep. 30, 2015JPY (¥) | Mar. 31, 2015USD ($) | Mar. 31, 2015JPY (¥) |
Business Acquisition [Line Items] | ||||||||||||
Shares issued to former Validity shareholders, Value | $ 21.5 | $ 75.8 | ||||||||||
Additional purchase consideration settled | $ 48.6 | ¥ 5,780 | ||||||||||
Validity Sensors, Inc [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired outstanding common and preferred shares and voting interest | 100.00% | |||||||||||
Fair value of the consideration transferred totaled | $ 127.8 | |||||||||||
Shares issued to former Validity shareholders, Shares | shares | 1,577,559 | |||||||||||
Shares issued to former Validity shareholders, Value | $ 70.3 | |||||||||||
Closing price of common stock | $ / shares | $ 44.55 | |||||||||||
Initial purchase price of acquisition | $ 20 | |||||||||||
Validity Sensors, Inc [Member] | Subsequent Event [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquisition-related liabilities | $ 25.5 | |||||||||||
Renesas SP Drivers, Inc. [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Acquired outstanding common and preferred shares and voting interest | 100.00% | 100.00% | ||||||||||
Fair value of the consideration transferred totaled | $ 468 | |||||||||||
Acquisition closing effective date | Oct. 1, 2014 | |||||||||||
Initial purchase price of acquisition | $ 463 | ¥ 50,600 | ||||||||||
Foreign currency exchange rate (Japanese yen to U.S. dollar) | ¥ / $ | 109.4 | 109.4 | ||||||||||
Indemnification hold back | $ 66 | ¥ 7,250 | ||||||||||
Working capital hold back | 48 | ¥ 5,250 | ||||||||||
Additional purchase price consideration | $ 4.8 | |||||||||||
Inventory purchase obligation settled | $ 115 | |||||||||||
IIX Inc [Member] | ||||||||||||
Business Acquisition [Line Items] | ||||||||||||
Indemnification Holdback Liability Non-current | $ 6.2 | ¥ 648 | $ 6.2 | ¥ 648 |
Acquisitions - Summary of Fair
Acquisitions - Summary of Fair Value of Consideration (Detail) - USD ($) $ in Millions | Nov. 07, 2013 | Jun. 27, 2015 | Jun. 28, 2014 |
Business Acquisition [Line Items] | |||
Shares issued | $ 21.5 | $ 75.8 | |
Validity Sensors, Inc [Member] | |||
Business Acquisition [Line Items] | |||
Cash | $ 20 | ||
Shares issued | 70.3 | ||
Contingent consideration | 37.5 | ||
Total identifiable assets acquired | $ 127.8 |
Acquired Intangibles - Summary
Acquired Intangibles - Summary of Life, Gross Carrying Value of Acquired Intangible Assets, and Related Accumulated Amortization (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 26, 2015 | |
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangibles, gross | $ 316.1 | $ 330.6 | |
Accumulated amortization | (155.8) | (95.2) | |
Acquired intangibles, net | $ 160.3 | $ 235.4 | 235.4 |
Weighted Average Life in Years | 4 years 2 months 12 days | ||
Display Driver Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangibles, gross | $ 164 | 164 | |
Weighted Average Life in Years | 5 years 3 months 18 days | ||
Fingerprint Authentication Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangibles, gross | $ 75.6 | 75.6 | |
Weighted Average Life in Years | 3 years 7 months 6 days | ||
Thin Touch Technology [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangibles, gross | 8.9 | ||
Customer Relationships [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangibles, gross | $ 48.4 | 48.4 | |
Weighted Average Life in Years | 2 years 9 months 18 days | ||
Licensed Technology and Other [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangibles, gross | $ 1.3 | 1.3 | |
Weighted Average Life in Years | 5 years | ||
Backlog [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangibles, gross | 10.3 | ||
Patents [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangibles, gross | $ 4.8 | 0.1 | |
Weighted Average Life in Years | 7 years 8 months 12 days | ||
Supplier Arrangement [Member] | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquired intangibles, gross | $ 22 | $ 22 | |
Weighted Average Life in Years | 1 year 9 months 18 days |
Acquired Intangibles - Addition
Acquired Intangibles - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
Disposal group including discontinued operation, intangible assets | $ 10.3 | ||
Acquired intangibles amortization | $ 73 | $ 87.6 | $ 7.4 |
Acquired Intangibles - Schedule
Acquired Intangibles - Schedule of Expected Annual Aggregate Amortization Expense (Detail) - USD ($) $ in Millions | Jun. 25, 2016 | Jun. 27, 2015 | Jun. 26, 2015 |
Goodwill And Intangible Assets Disclosure [Abstract] | |||
2,017 | $ 59.3 | ||
2,018 | 48.6 | ||
2,019 | 34.2 | ||
2,020 | 10.6 | ||
2,021 | 3.5 | ||
Thereafter | 4.1 | ||
Acquired intangibles, net | $ 160.3 | $ 235.4 | $ 235.4 |
Debt - Additional Information (
Debt - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 30, 2016 | Oct. 31, 2015 | |
Debt Instrument [Line Items] | ||||
Debt issuance cost | $ 300,000 | $ 400,000 | ||
Percentage of voting capital stock | 65.00% | |||
Description of periodic payments | The term loan facility requires repayment over five years with nineteen quarterly principal payments which began in the three months ending March 31, 2015. | |||
Quarterly payment beginning period | Mar. 31, 2015 | |||
Final principal payment | $ 90,000,000 | |||
First Four Quarters [Member] | ||||
Debt Instrument [Line Items] | ||||
Quarterly principal payment | 1,900,000 | |||
Next Fourteen Quarters [Member] | ||||
Debt Instrument [Line Items] | ||||
Quarterly principal payment | 3,800,000 | |||
Subsequent Event [Member] | ||||
Debt Instrument [Line Items] | ||||
Amount borrowed under revolving credit facility | $ 238,800,000 | |||
Credit Agreement [Member] | Revolving Credit Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility amount | 250,000,000 | $ 250,000,000 | ||
Amount borrowed under revolving credit facility | 100,000,000 | |||
Additional borrowing capacity | 100,000,000 | |||
Credit Agreement [Member] | Revolving Credit and Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Increase in Line of credit facility | 100,000,000 | $ 100,000,000 | ||
Debt issuance cost | $ 5,000,000 | |||
Debt amortization period | 60 months | |||
Description of Base Rate | The revolving credit facility and term loans bear interest at our election of a Base Rate plus an Applicable Margin or LIBOR plus an Applicable Margin. Swingline loans bear interest at a Base Rate plus an Applicable Margin. The Base Rate is a floating rate that is the greater of the Prime Rate, the Federal Funds Rate plus 50 basis points, or LIBOR plus 100 basis points. The Applicable Margin is based on a sliding scale which ranges from zero to 100 basis points for Base Rate loans and 100 basis points to 200 basis points for LIBOR loans. | |||
Maturity period | Sep. 30, 2019 | |||
Operating covenant description | Under the Credit Agreement, there are restrictive operating covenants, including three financial covenants which limit the consolidated total leverage ratio, or leverage ratio, the consolidated interest coverage ratio, or interest coverage ratio, and places a restriction on the amount of capital expenditures that may be made in any fiscal year. The leverage ratio is the ratio of debt as of the measurement date to earnings before interest, taxes, depreciation and amortization, or EBITDA, for the four consecutive quarters ending with the quarter of measurement. The leverage ratio must not exceed 2.50 to 1.0 during the first two years of the agreement, and 2.0 to 1.0 during the last three years of the agreement. The interest coverage ratio is EBITDA to interest expense for the four consecutive quarters ending with the quarter of measurement. The interest coverage ratio must not be less than 3.50 to 1.0 during the term of the Credit Agreement. | |||
Credit Agreement [Member] | Revolving Credit and Term Loan Facility [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rates on borrowings | 1.48% | |||
Commitment fee percentage of unused portion | 0.25% | |||
Credit Agreement [Member] | Revolving Credit and Term Loan Facility [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Interest rates on borrowings | 1.95% | |||
Commitment fee percentage of unused portion | 0.45% | |||
Credit Agreement [Member] | Revolving Credit and Term Loan Facility [Member] | Federal Funds Effective Swap Rate [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.50% | |||
Credit Agreement [Member] | Revolving Credit and Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Credit Agreement [Member] | Revolving Credit and Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Credit Agreement [Member] | Revolving Credit and Term Loan Facility [Member] | London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Credit Agreement [Member] | Revolving Credit and Term Loan Facility [Member] | Base Rate [Member] | Minimum [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 0.00% | |||
Credit Agreement [Member] | Revolving Credit and Term Loan Facility [Member] | Base Rate [Member] | Maximum [Member] | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 1.00% | |||
Credit Agreement [Member] | Letter of Credit [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility amount | $ 20,000,000 | |||
Credit Agreement [Member] | Term Loan Facility [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility amount | 150,000,000 | |||
Amount borrowed under revolving credit facility | 150,000,000 | |||
Bridge Loan [Member] | Credit Agreement [Member] | ||||
Debt Instrument [Line Items] | ||||
Line of credit facility amount | $ 20,000,000 |
Commitments and Contingencies -
Commitments and Contingencies - Additional Information (Detail) ¥ in Millions, $ in Millions | 12 Months Ended | |||||
Jun. 25, 2016USD ($) | Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($) | Jun. 25, 2016JPY (¥) | Sep. 30, 2015USD ($) | Sep. 30, 2015JPY (¥) | |
Commitments Contingencies And Litigation [Line Items] | ||||||
Period of expiration dates of operating leases for office facilities | 2016 to 2022 | |||||
Total rent expense, recognized on a straight-line basis | $ 9.2 | $ 7.9 | $ 4.7 | |||
Contingent consideration liabilities recorded for business combinations | 25.5 | $ 102.2 | ||||
IIX Inc [Member] | ||||||
Commitments Contingencies And Litigation [Line Items] | ||||||
Indemnification Holdback Liability Non-current | $ 6.2 | ¥ 648 | $ 6.2 | ¥ 648 | ||
Minimum [Member] | ||||||
Commitments Contingencies And Litigation [Line Items] | ||||||
Duration of renewal options of facilities under operating leases | 1 year | |||||
Maximum [Member] | ||||||
Commitments Contingencies And Litigation [Line Items] | ||||||
Duration of renewal options of facilities under operating leases | 5 years |
Commitments and Contingencies58
Commitments and Contingencies - Aggregate Minimum Rental Commitments for Non-Cancelable Operating Leases (Detail) $ in Millions | Jun. 25, 2016USD ($) |
Commitments And Contingencies Disclosure [Abstract] | |
2,017 | $ 7.5 |
2,018 | 3.4 |
2,019 | 1.4 |
2,020 | 0.5 |
2,021 | 0.4 |
Thereafter | 0.1 |
Total minimum operating lease payments | $ 13.3 |
Stockholders' Equity - Addition
Stockholders' Equity - Additional Information (Detail) - USD ($) | 12 Months Ended | |
Jun. 25, 2016 | Jun. 27, 2015 | |
Equity [Abstract] | ||
Preferred stock, shares authorized | 10,000,000 | 10,000,000 |
Preferred stock, shares outstanding | 0 | 0 |
Stock repurchase program authorized amount | $ 1,050,000,000 | |
Common stock repurchase program expiry date | Oct. 31, 2017 | |
Stock repurchase program remaining authorized amount | $ 157,700,000 |
Stockholders' Equity - Shares R
Stockholders' Equity - Shares Reserved for Future Issuance (Detail) - shares | Jun. 25, 2016 | Jun. 27, 2015 |
Class of Stock [Line Items] | ||
Awards available for grant under all share-based compensation plans | 1,458,301 | 2,560,131 |
Reserved for future issuance | 5,321,974 | |
Stock option outstanding[Member] | ||
Class of Stock [Line Items] | ||
Awards available for grant under all share-based compensation plans | 2,711,542 | |
Deferred stock units outstanding [Member] | ||
Class of Stock [Line Items] | ||
Awards available for grant under all share-based compensation plans | 1,005,981 | |
Market stock units outstanding [Member] | ||
Class of Stock [Line Items] | ||
Awards available for grant under all share-based compensation plans | 146,150 |
Share-Based Compensation - Shar
Share-Based Compensation - Share-Based Compensation Awards Available for Grant or Issuance (Detail) | 12 Months Ended |
Jun. 25, 2016shares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance beginning | 2,560,131 |
Additional shares authorized | 375,296 |
Stock options granted | (440,362) |
Deferred stock units granted | (704,225) |
Market stock units granted | (77,700) |
Market stock units performance adjustment | (39,273) |
Purchases under employee stock purchase plan | (302,781) |
Forfeited | 87,315 |
Plan shares expired | (100) |
Balance ending | 1,458,301 |
2010 Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance beginning | 257,619 |
Additional shares authorized | 375,296 |
Purchases under employee stock purchase plan | (302,781) |
Balance ending | 330,134 |
2001 [Member] | Incentive Compensation Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Forfeited | 100 |
Plan shares expired | (100) |
2010 [Member] | Incentive Compensation Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Balance beginning | 2,302,512 |
Stock options granted | (440,362) |
Deferred stock units granted | (704,225) |
Market stock units granted | (77,700) |
Market stock units performance adjustment | (39,273) |
Forfeited | 87,215 |
Balance ending | 1,128,167 |
Share-Based Compensation - Sh62
Share-Based Compensation - Share-Based Compensation and Related Tax Benefit Recognized in Consolidated Statements of Income (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total | $ 56.8 | $ 44.1 | $ 32.9 |
Income tax benefit on share-based compensation | 14.7 | 12.5 | 10.6 |
Cost of Revenue [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total | 1.8 | 1.4 | 1.1 |
Research and Development [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total | 30.6 | 24.5 | 18.5 |
Selling, General, and Administrative [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | |||
Total | $ 24.4 | $ 18.2 | $ 13.3 |
Share-Based Compensation - Addi
Share-Based Compensation - Additional Information (Detail) - Stock option outstanding[Member] $ / shares in Units, shares in Millions, $ in Millions | 12 Months Ended |
Jun. 25, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of fair market value for which exercise price is designated on incentive and nonqualified stock option grants | 100.00% |
Options granted under the 2010 Plan | vest over three to four years from the vesting commencement date and expire seven years after the date of grant if not exercised. |
Closing price of common stock used to calculate Aggregate intrinsic value of stock option outstanding | $ / shares | $ 52.22 |
Percentage of stock option awards outstanding were vested | 59.00% |
Number of options vested and expected to vest | shares | 2.6 |
Aggregate intrinsic value of fully vested options and options expected to vest | $ | $ 39.9 |
Weighted average exercise price of fully vested options and options expected to vest | $ / shares | $ 45.96 |
Weighted average remaining contractual term of fully vested options and options expected to vest | 3 years 9 months 26 days |
Weighted average remaining contractual term for exercisable options | 3 years 1 month 21 days |
Unrecognized share-based compensation costs for stock options granted | $ | $ 18.7 |
Unrecognized share-based compensation, period for recognition | 1 year 11 months 5 days |
Share Based Compensation - Bala
Share Based Compensation - Balance of Outstanding and Exercisable Stock Options (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Jun. 25, 2016USD ($)$ / sharesshares | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |
Stock Option Awards Outstanding, Balance at June 30, 2015 | shares | 2,870,425 |
Stock Option Awards Outstanding, Granted | shares | 440,362 |
Stock Option Awards Outstanding, Exercised | shares | (570,156) |
Stock Option Awards Outstanding, Forfeited | shares | (29,089) |
Stock Option Awards Outstanding, Balance at June 30, 2016 | shares | 2,711,542 |
Stock Option Awards Outstanding, Exercisable at June 30, 2016 | shares | 1,994,854 |
Weighted Average Exercise Price, Balance at June 30, 2015 | $ / shares | $ 38.50 |
Weighted Average Exercise Price, Granted | $ / shares | 79.05 |
Weighted Average Exercise Price, Exercised | $ / shares | 29.22 |
Weighted Average Exercise Price, Forfeited | $ / shares | 70.18 |
Weighted Average Exercise Price, Balance at June 30, 2016 | $ / shares | 49.69 |
Weighted Average Exercise Price, Exercisable at June 30, 2016 | $ / shares | $ 36.29 |
Aggregate Intrinsic Value of Stock Option Awards, Balance at June 30, 2016 | $ | $ 39.9 |
Aggregate Intrinsic Value of Stock Option Awards, Exercisable at June 30, 2016 | $ | $ 39.7 |
Share-Based Compensation - Cash
Share-Based Compensation - Cash Received and Aggregate Intrinsic Value of Stock Options Exercised (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Disclosure Of Compensation Related Costs Sharebased Payments [Abstract] | |||
Cash received | $ 16.6 | $ 36.2 | $ 71.7 |
Aggregate intrinsic value | $ 29.7 | $ 69.9 | $ 79.3 |
Share-Based Compensation - Fair
Share-Based Compensation - Fair Value of Each Award Granted Under Stock Option Plans (Detail) - $ / shares | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Stock option outstanding[Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value per award | $ 28.30 | $ 27.19 | $ 18.72 |
Market stock units outstanding [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 45.57% | 43.65% | 38.79% |
Expected life in years | 2 years 11 months 9 days | 2 years 11 months 5 days | 2 years 11 months 1 day |
Risk-free interest rate | 0.92% | 0.79% | 0.57% |
Fair value per award | $ 126.74 | $ 66.48 | $ 60.62 |
Correlation coefficient | 42.00% | 43.00% | 53.00% |
Market stock units outstanding [Member] | SOX Index [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 19.65% | 20.60% | 24.95% |
Minimum [Member] | Stock option outstanding[Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 40.40% | 38.70% | 40.10% |
Expected life in years | 3 years 9 months 18 days | 3 years 9 months 18 days | 3 years 9 months 18 days |
Risk-free interest rate | 1.22% | 1.18% | 1.31% |
Maximum [Member] | Stock option outstanding[Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 44.20% | 44.00% | 44.50% |
Expected life in years | 4 years 7 months 6 days | 4 years 3 months 18 days | 4 years 3 months 18 days |
Risk-free interest rate | 1.72% | 1.80% | 1.74% |
Share-Based Compensation - Bala
Share-Based Compensation - Balance and Aggregate Intrinsic Value of Stock Units (Detail) $ / shares in Units, $ in Millions | 12 Months Ended |
Jun. 25, 2016USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Unit Awards, Granted | 77,700 |
Stock unit awards, performance adjustment | 39,273 |
Deferred stock units outstanding [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Unit Awards Outstanding, Balance at June 30, 2015 | 860,376 |
Stock Unit Awards, Granted | 704,225 |
Stock Unit Awards, Delivered | (500,394) |
Stock Unit Awards, Forfeited | (58,226) |
Stock Unit Awards Outstanding, Balance at June 30, 2016 | 1,005,981 |
Aggregate Intrinsic Value, Balance at June 30, 2016 | $ | $ 52.5 |
Weighted Average Grant Date Fair Value, Balance at June 30, 2015 | $ / shares | $ 58.94 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 83.49 |
Weighted Average Grant Date Fair Value, Delivered | $ / shares | 53.53 |
Weighted Average Grant Date Fair Value, Forfeited | $ / shares | 73.82 |
Weighted Average Grant Date Fair Value, Balance at June 30, 2016 | $ / shares | $ 77.93 |
Market stock units outstanding [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Stock Unit Awards Outstanding, Balance at June 30, 2015 | 132,376 |
Stock Unit Awards, Granted | 77,700 |
Stock unit awards, performance adjustment | 39,273 |
Stock Unit Awards, Delivered | (103,199) |
Stock Unit Awards Outstanding, Balance at June 30, 2016 | 146,150 |
Aggregate Intrinsic Value, Balance at June 30, 2016 | $ | $ 7.6 |
Weighted Average Grant Date Fair Value, Balance at June 30, 2015 | $ / shares | $ 58.95 |
Weighted Average Grant Date Fair Value, Granted | $ / shares | 126.74 |
Weighted Average Grant Date Fair Value, Delivered | $ / shares | 53.13 |
Weighted Average Grant Date Fair Value, Balance at June 30, 2016 | $ / shares | $ 97.54 |
Share-Based Compensation - Defe
Share-Based Compensation - Deferred Stock Units - Additional Information (Detail) - Deferred stock units outstanding [Member] - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares withheld to meet statutory minimum tax withholding requirements | 138,955 | ||
Shares valued withheld to meet statutory minimum tax withholding requirements | $ 10.8 | ||
Closing price of common stock used to calculate Aggregate intrinsic value of stock option outstanding | $ 52.22 | ||
Unrecognized share-based compensation cost for DSUs granted | $ 68.5 | ||
Unrecognized share-based compensation, period for recognition | 2 years 15 days | ||
Aggregate market value of DSUs | $ 26.7 | $ 23.8 | $ 26.3 |
Share-Based Compensation - Mark
Share-Based Compensation - Market Stock Units - Additional Information (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | |
Jun. 25, 2016 | Jun. 29, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period of the underlying awards | 4 years | 3 years |
Stock unit awards, performance adjustment | 39,273 | |
Market stock units outstanding [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period of the underlying awards | 3 years | |
Potential payout adjustment ratio | 2.00% | |
Stock unit awards, performance adjustment | 39,273 | |
Shares withheld to meet statutory minimum tax withholding requirements | 54,534 | |
Shares valued withheld to meet statutory minimum tax withholding requirements | $ 4.8 | |
Unrecognized share-based compensation cost | $ 9.9 | |
Unrecognized share-based compensation, period for recognition | 1 year | |
Market stock units outstanding [Member] | Fiscal 2013 MSU Grants [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
SOX Index TSR percentage points | 110.00% | |
Percentage of targeted shares, MSU grants | 200.00% | |
Stock unit awards, performance adjustment | 17,466 | |
Shares withheld to meet statutory minimum tax withholding requirements | 18,860 | |
Shares valued withheld to meet statutory minimum tax withholding requirements | $ 1.7 | |
Market stock units outstanding [Member] | Fiscal 2014 MSU Grants [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
SOX Index TSR percentage points | 53.00% | |
Percentage of targeted shares, MSU grants | 200.00% | |
Stock unit awards, performance adjustment | 24,455 | |
Shares withheld to meet statutory minimum tax withholding requirements | 25,739 | |
Shares valued withheld to meet statutory minimum tax withholding requirements | $ 2.3 | |
Market stock units outstanding [Member] | October 2014 MSU Grants [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of targeted shares, MSU grants | 88.00% | |
Stock unit awards, performance adjustment | 2,648 | |
Shares withheld to meet statutory minimum tax withholding requirements | 9,935 | |
Shares valued withheld to meet statutory minimum tax withholding requirements | $ 0.9 | |
SOX Index TSR percentage points | 6.00% | |
Market stock units outstanding [Member] | Minimum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Potential payout range | 0.00% | |
Market stock units outstanding [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Potential payout range | 200.00% | |
Market stock units outstanding [Member] | Share-based Compensation Award, Tranche One [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period of the underlying awards | 1 year | |
Market stock units outstanding [Member] | Share-based Compensation Award, Tranche One [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Potential payout range | 100.00% | |
Market stock units outstanding [Member] | Share-based Compensation Award, Tranche Two [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period of the underlying awards | 2 years | |
Market stock units outstanding [Member] | Share-based Compensation Award, Tranche Two [Member] | Maximum [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Potential payout range | 100.00% | |
Market stock units outstanding [Member] | Share-based Compensation Award, Tranche Three [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period of the underlying awards | 3 years | |
Market stock units outstanding [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Potential payout range | 100.00% | |
Closing price of common stock used to calculate Aggregate intrinsic value of stock option outstanding | $ 52.22 |
Share-Based Compensation - Empl
Share-Based Compensation - Employee Stock Purchase Plan - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 25, 2016 | Jun. 29, 2013 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Stock purchases under Employee Stock Purchase Plan as a percentage of employee compensation, maximum, subject to legal restrictions and limitations | 15.00% | |
Employee common stock purchases through payroll deductions under Employee Stock Purchase Plan, price as a percentage of fair market value | 85.00% | |
Offering period extends under Employee Stock Purchase Plan | up to two years | |
Vesting period of the underlying awards | 4 years | 3 years |
Employee Stock Purchase Plan [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Vesting period of the underlying awards | 2 years | |
Expected lives of the implied volatility | 6 months | |
Historical volatility for expected lives | 6 months | |
Unrecognized share-based compensation costs for stock options granted | $ 0.8 | |
Period over which share-based compensation is amortized duration | 4 months |
Share-Based Compensation - Sh71
Share-Based Compensation - Shares Purchased, Weighted Average Purchase Price, Cash Received, and Aggregate Intrinsic Value for ESPP (Detail) - USD ($) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares purchased | 302,781 | ||
Aggregate intrinsic value | $ 39.9 | ||
Employee Stock Purchase Plan [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares purchased | 302,781 | 367,646 | 409,084 |
Weighted average purchase price | $ 52.42 | $ 35.11 | $ 22.07 |
Cash received | $ 15.8 | $ 12.9 | $ 9 |
Aggregate intrinsic value | $ 7 | $ 13.7 | $ 12.8 |
Share-Based Compensation - Fa72
Share-Based Compensation - Fair Value of Each Award Granted Under ESPP (Detail) - Employee Stock Purchase Plan [Member] - $ / shares | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life in years | 6 months | ||
Fair value per award | $ 24.52 | $ 21.23 | $ 15.04 |
Minimum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 37.40% | 36.80% | 43.80% |
Expected life in years | 6 months | 6 months | 6 months |
Risk-free interest rate | 0.33% | 0.07% | 0.05% |
Maximum [Member] | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected volatility | 40.60% | 47.90% | 49.30% |
Expected life in years | 1 year | 2 years | 1 year |
Risk-free interest rate | 0.54% | 0.54% | 0.13% |
Employee Benefit Plans - Additi
Employee Benefit Plans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Compensation And Retirement Disclosure [Abstract] | |||
Annual limit of employees contribution to defined contribution plan | $ 18,000 | ||
Annual limit of contribution for 50 years or older employees | $ 24,000 | ||
Percentage of maximum employer matching contribution to defined contribution plans | 25.00% | ||
Employer matching fund vested period | 4 years | ||
Employer matching funds vest percentage | 25.00% | ||
Contributions by employer matching contributions | $ 2,500,000 | $ 2,300,000 | $ 1,600,000 |
Income Taxes - Tabular Disclosu
Income Taxes - Tabular Disclosure of Income Before Income Tax Between Domestic and Foreign Jurisdictions (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Income Loss From Operations Before Provision Benefit For Income Taxes [Line Items] | |||
Income before provision for income taxes | $ 75.6 | $ 160.2 | $ 74.5 |
United States [Member] | |||
Income Loss From Operations Before Provision Benefit For Income Taxes [Line Items] | |||
Income before provision for income taxes | 12.3 | 13.4 | 76.7 |
Foreign [Member] | |||
Income Loss From Operations Before Provision Benefit For Income Taxes [Line Items] | |||
Income before provision for income taxes | $ 63.3 | $ 146.8 | $ (2.2) |
Income Taxes - Provision for In
Income Taxes - Provision for Income Taxes (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Current tax expense/(benefit) | |||
Federal | $ 12.1 | $ 12 | $ (3.3) |
Foreign | 12.4 | 63 | 12.3 |
Current Income Tax Expense (Benefit), Total | 24.5 | 75 | 9 |
Deferred tax expense/(benefit) | |||
Federal | (7.5) | (3.7) | 18.7 |
Foreign | (13.6) | (21.5) | 0.1 |
Deferred Income Tax Expense (Benefit), Total | (21.1) | (25.2) | 18.8 |
Provision for income taxes | $ 3.4 | $ 49.8 | $ 27.8 |
Income Taxes - Provision for 76
Income Taxes - Provision for Income Taxes Differs from Federal Statutory Rate (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Income Tax Disclosure [Abstract] | |||
Provision at U.S. federal statutory rate | $ 26.6 | $ 56.1 | $ 26.1 |
Qualified stock options | 5.1 | 2.7 | 0.9 |
Business credits | (10.3) | (4.7) | (2.8) |
Foreign tax differential | (22.4) | (4.3) | (19.6) |
Non-deductible portion of contingent consideration | 0.9 | (4.7) | 21.2 |
Change in valuation allowance | (1.4) | (0.5) | (0.3) |
Nondeductible amortization | 4.4 | 2.7 | 0.9 |
Other differences | 0.5 | 2.5 | 1.4 |
Provision for income taxes | $ 3.4 | $ 49.8 | $ 27.8 |
Income Taxes - Net Deferred Tax
Income Taxes - Net Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Millions | Jun. 25, 2016 | Jun. 27, 2015 |
Income Tax Disclosure [Abstract] | ||
Current deferred tax assets | $ 17.6 | |
Non-current deferred tax assets | $ 14.7 | 0.9 |
Non-current deferred tax liabilities | (9) | (33.9) |
Net deferred tax assets | $ 5.7 | |
Net deferred tax (liabilities) | $ (15.4) |
Income Taxes - Significant Comp
Income Taxes - Significant Components of Deferred Tax Assets (Liabilities) (Detail) - USD ($) $ in Millions | Jun. 25, 2016 | Jun. 27, 2015 |
Deferred tax assets: | ||
Investment writedowns | $ 2.5 | $ 5.8 |
Inventory writedowns | 6.5 | 6.8 |
Property and equipment | 0.8 | 1.3 |
Accrued compensation | 2.5 | 3.3 |
Deferred compensation | 1.7 | 2.8 |
Share-based compensation | 12.6 | 8.8 |
Business credit carryforward | 16.2 | 10.7 |
Net operating loss carryforward | 2.5 | 5.7 |
Other accruals | 2.4 | 4.3 |
Deferred Tax Assets, Gross | 47.7 | 49.5 |
Valuation allowance | (14.1) | (14.5) |
Deferred Tax Assets, Net | 33.6 | 35 |
Deferred tax liabilities: | ||
Acquisition intangibles | (22.9) | (43.7) |
Interest | (5) | (6.7) |
Deferred tax liabilities, Total | (27.9) | (50.4) |
Net deferred tax assets | $ 5.7 | |
Net deferred tax (liabilities) | $ (15.4) |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) - USD ($) | 1 Months Ended | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2016 | Jun. 25, 2016 | Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | Jun. 29, 2013 | |
Income Tax Disclosure [Line Items] | ||||||
Valuation allowance | $ 14,100,000 | $ 14,100,000 | $ 14,500,000 | |||
Net decrease in valuation allowance | (400,000) | |||||
Undistributed earnings of foreign subsidiaries | 680,900,000 | 680,900,000 | ||||
Deferred tax liability associated with undistributed earnings of foreign subsidiaries | 182,100,000 | 182,100,000 | ||||
Tax credit carryforward, amount to be recorded to additional paid in capital when realized | 31,000,000 | 31,000,000 | ||||
Federal alternative minimum tax credit carryforward | 1,600,000 | 1,600,000 | ||||
Gross unrecognized tax benefits | 13,400,000 | 13,400,000 | 11,600,000 | $ 10,200,000 | $ 8,200,000 | |
Gross unrecognized tax benefits increased during the year | 1,800,000 | |||||
Unrecognized tax benefit, reduction of effective tax rate if recognized | 9,200,000 | 9,200,000 | ||||
Increase in interest and penalties accrued related to unrecognized tax benefits | 300,000 | 200,000 | ||||
Decrease in interest and penalties accrued related to unrecognized tax benefits | $ 100,000 | |||||
Interest and penalties accrued related to unrecognized tax benefits | 1,400,000 | 1,400,000 | $ 1,100,000 | |||
Prior year federal research and development credits recognized in current year | 4,500,000 | |||||
Estimated decrease in unrecognized tax benefit in next 12 months | 800,000 | 800,000 | ||||
Estimated increase in unrecognized tax benefit in next 12 months | 1,900,000 | 1,900,000 | ||||
Japan [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Reduction of corporate combined income tax | 2.58% | |||||
Effective tax rate | 33.06% | |||||
Expected effective tax rate percentage | 30.86% | |||||
Amount of impact due to tax rate change | 700,000 | |||||
Federal [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net operating loss carryforwards | 7,100,000 | $ 7,100,000 | ||||
Net operating loss, beginning of expiration period | 2,022 | |||||
Tax credit carryforward, amount | 31,400,000 | $ 31,400,000 | ||||
State and Local Jurisdiction [Member] | ||||||
Income Tax Disclosure [Line Items] | ||||||
Net operating loss carryforwards | 33,200,000 | $ 33,200,000 | ||||
Net operating loss, beginning of expiration period | 2,020 | |||||
Tax credit carryforward, amount | $ 26,000,000 | $ 26,000,000 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Income Tax Disclosure [Abstract] | |||
Beginning balance | $ 11.6 | $ 10.2 | $ 8.2 |
Increase in unrecognized tax benefits related to current year tax positions | 1.6 | 2.3 | 1.1 |
Increase in unrecognized tax benefits related to prior year tax positions | 1.1 | 0.3 | 1.7 |
Decrease due to statute expiration | (0.9) | (1.2) | (0.8) |
Ending Balance | $ 13.4 | $ 11.6 | $ 10.2 |
Segment, Customers, and Geogr81
Segment, Customers, and Geographic Information - Additional Information (Detail) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016USD ($)SegmentProduct | Jun. 27, 2015USD ($) | Jun. 28, 2014USD ($) | |
Segment Reporting [Abstract] | |||
Number of operating segments | Segment | 1 | ||
Number of product | Product | 2 | ||
Goodwill | $ | $ 206.8 | $ 206.8 | $ 61 |
Segment, Customers, and Geogr82
Segment, Customers, and Geographic Information - Net Revenue within Geographic Areas Based on Customers' Locations (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | $ 1,666.9 | $ 1,703 | $ 947.5 |
Japan [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 651 | 698.5 | 45 |
China [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 518.7 | 504.2 | 449.4 |
United States [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 249.1 | 223 | 93.8 |
South Korea [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 182.5 | 142.1 | 233.9 |
Taiwan [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | 61.1 | 127.2 | 118.8 |
Other [Member] | |||
Revenues from External Customers and Long-Lived Assets [Line Items] | |||
Net revenue | $ 4.5 | $ 8 | $ 6.6 |
Segment, Customers, and Geogr83
Segment, Customers, and Geographic Information - Net Revenue from External Customers (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Revenue from External Customer [Line Items] | |||
Net revenue | $ 1,666.9 | $ 1,703 | $ 947.5 |
Mobile Product Applications [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenue | 1,459.5 | 1,442.1 | 689.8 |
PC Product Applications [Member] | |||
Revenue from External Customer [Line Items] | |||
Net revenue | $ 207.4 | $ 260.9 | $ 257.7 |
Segment, Customers, and Geogr84
Segment, Customers, and Geographic Information - Long-Lived Assets within Geographic Areas (Detail) - USD ($) $ in Millions | Jun. 25, 2016 | Jun. 27, 2015 |
Long Lived Assets By Geographical Areas [Line Items] | ||
Long-lived assets | $ 479.8 | $ 565.6 |
United States [Member] | ||
Long Lived Assets By Geographical Areas [Line Items] | ||
Long-lived assets | 174.8 | 200.7 |
Asia/Pacific [Member] | ||
Long Lived Assets By Geographical Areas [Line Items] | ||
Long-lived assets | $ 305 | $ 364.9 |
Segment, Customers, and Geogr85
Segment, Customers, and Geographic Information - Major Customers' as Percentage of Net Revenue (Detail) - Sales Revenue, Net [Member] - Customer Concentration Risk [Member] | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Customer A [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 21.00% | 18.00% | 28.00% |
Customer B [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 20.00% | 16.00% | |
Customer C [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 15.00% | 11.00% | |
Customer D [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 11.00% |
Segment, Customers, and Geogr86
Segment, Customers, and Geographic Information - Major Customers' as Percentage of Net Revenue (Parenthetical) (Detail) | 12 Months Ended | ||
Jun. 25, 2016 | Jun. 27, 2015 | Jun. 28, 2014 | |
Maximum [Member] | Sales Revenue, Net [Member] | Customer Concentration Risk [Member] | |||
Revenue, Major Customer [Line Items] | |||
Concentration Risk, Percentage | 10.00% | 10.00% | 10.00% |
Restructuring Activities - Addi
Restructuring Activities - Additional Information (Detail) - USD ($) | 3 Months Ended | 12 Months Ended | |
Jun. 25, 2016 | Sep. 30, 2015 | Jun. 25, 2016 | |
Restructuring Cost And Reserve [Line Items] | |||
Restructuring costs | $ 6,700,000 | $ 1,900,000 | $ 8,600,000 |
Restructuring liability | $ 6,700,000 | 6,700,000 | |
Payments made for liability | 0 | ||
Minimum [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance costs | 10,500,000 | ||
Lease cancellation and related charges | 3,000,000 | ||
Maximum [Member] | |||
Restructuring Cost And Reserve [Line Items] | |||
Severance costs | 11,500,000 | ||
Lease cancellation and related charges | $ 4,000,000 |