Document_and_Entity_Informatio
Document and Entity Information | 6 Months Ended | |
Dec. 28, 2014 | Jan. 14, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CREE INC | |
Entity Central Index Key | 895419 | |
Current Fiscal Year End Date | -22 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | 28-Dec-14 | |
Document Fiscal Year Focus | 2015 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | FALSE | |
Entity Common Stock, Shares Outstanding | 111,630,099 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated_Balance_Sheets
Consolidated Balance Sheets (USD $) | Dec. 28, 2014 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Current assets: | ||
Cash and cash equivalents | $199,960 | $286,824 |
Short-term investments | 629,965 | 875,642 |
Total cash, cash equivalents and short-term investments | 829,925 | 1,162,466 |
Accounts receivable, net | 218,960 | 225,160 |
Inventories | 332,548 | 284,780 |
Deferred income taxes | 30,150 | 29,414 |
Prepaid expenses and other current assets | 76,312 | 72,071 |
Total current assets | 1,487,895 | 1,773,891 |
Property and equipment, net | 652,852 | 605,713 |
Goodwill | 616,345 | 616,345 |
Intangible assets, net | 327,725 | 336,423 |
Other long-term investments | 79,089 | 0 |
Other assets | 11,527 | 11,997 |
Total assets | 3,175,433 | 3,344,369 |
Current liabilities: | ||
Accounts payable, trade | 158,600 | 202,294 |
Accrued salaries and wages | 48,028 | 50,527 |
Income taxes payable | 528 | 14,848 |
Other current liabilities | 37,788 | 38,986 |
Total current liabilities | 244,944 | 306,655 |
Long-term liabilities: | ||
Long-term debt | 150,000 | 0 |
Deferred income taxes | 14,277 | 12,173 |
Other long-term liabilities | 26,668 | 35,395 |
Total long-term liabilities | 190,945 | 47,568 |
Commitments and contingencies (Note 11) | ||
Shareholders' equity: | ||
Preferred stock, par value $0.01; 3,000 shares authorized at December 28, 2014 and June 29, 2014; none issued and outstanding | 0 | 0 |
Common stock, par value $0.00125; 200,000 shares authorized at December 28, 2014 and June 29, 2014; 111,626 and 120,114 shares issued and outstanding at December 28, 2014 and June 29, 2014, respectively | 138 | 149 |
Additional paid-in-capital | 2,239,689 | 2,190,011 |
Accumulated other comprehensive income, net of taxes | 8,192 | 11,405 |
Retained earnings | 491,525 | 788,581 |
Total shareholders’ equity | 2,739,544 | 2,990,146 |
Total liabilities and shareholders’ equity | $3,175,433 | $3,344,369 |
Consolidated_Balance_Sheets_Co
Consolidated Balance Sheets Consolidation Balance Sheets (Parenthetical) (USD $) | Dec. 28, 2014 | Jun. 29, 2014 |
In Thousands, except Per Share data, unless otherwise specified | ||
Statement of Financial Position [Abstract] | ||
Preferred stock, par value | $0.01 | $0.01 |
Preferred stock, shares authorized | 3,000 | 3,000 |
Preferred stock, shares issued | 0 | 0 |
Preferred stock, shares outstanding | 0 | 0 |
Common stock, par value | $0.00 | $0.00 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 111,626 | 120,114 |
Common stock, shares outstanding | 111,626 | 120,114 |
Consolidated_Statements_of_Inc
Consolidated Statements of Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 |
Income Statement [Abstract] | ||||
Revenue, net | $413,157 | $415,086 | $840,829 | $806,092 |
Cost of revenue, net | 276,378 | 259,308 | 568,230 | 499,557 |
Gross profit | 136,779 | 155,778 | 272,599 | 306,535 |
Operating expenses: | ||||
Research and development | 46,989 | 44,436 | 93,714 | 86,179 |
Sales, general and administrative | 72,375 | 67,943 | 142,067 | 132,221 |
Amortization or impairment of acquisition-related intangibles | 6,495 | 7,256 | 12,994 | 14,543 |
Loss on disposal or impairment of long-lived assets | 735 | 760 | 2,182 | 1,417 |
Total operating expenses | 126,594 | 120,395 | 250,957 | 234,360 |
Operating income | 10,185 | 35,383 | 21,642 | 72,175 |
Non-operating income, net | 1,728 | 3,403 | 4,632 | 6,221 |
Income before income taxes | 11,913 | 38,786 | 26,274 | 78,396 |
Income tax (benefit) expense | -238 | 3,105 | 2,993 | 12,218 |
Net income | $12,151 | $35,681 | $23,281 | $66,178 |
Earnings per share: | ||||
Basic | $0.11 | $0.30 | $0.20 | $0.55 |
Diluted | $0.10 | $0.29 | $0.20 | $0.54 |
Weighted average shares used in per share calculation: | ||||
Basic | 115,264 | 120,932 | 117,435 | 120,248 |
Diluted | 115,845 | 123,204 | 118,599 | 122,821 |
Consolidated_Statements_of_Com
Consolidated Statements of Comprehensive Income (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $12,151 | $35,681 | $23,281 | $66,178 |
Currency translation (loss) gain | -735 | -125 | -1,902 | 135 |
Net unrealized (loss) gain on available-for-sale securities, net of tax benefit (expense) of $489, ($283), $827 and ($1,065), respectively | -800 | 447 | -1,311 | 1,710 |
Other comprehensive (loss) income | -1,535 | 322 | -3,213 | 1,845 |
Comprehensive income | $10,616 | $36,003 | $20,068 | $68,023 |
Consolidated_Statements_of_Com1
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (Parenthetical) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 |
Statement of Comprehensive Income [Abstract] | ||||
Tax benefit (expense) on net unrealized (loss) gain on available-for-sale securities | $489 | ($283) | $827 | ($1,065) |
Consolidated_Statements_of_Cas
Consolidated Statements of Cash Flows (USD $) | 6 Months Ended | |
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 |
Cash flows from operating activities: | ||
Net income | $23,281 | $66,178 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 87,143 | 79,611 |
Stock-based compensation | 33,196 | 30,250 |
Excess tax benefit from stock-based payment arrangements | -1,651 | -14,853 |
Loss on disposal or impairment of long-lived assets | 2,182 | 1,417 |
Amortization of premium/discount on investments | 3,537 | 5,043 |
Gain on equity method investment | -679 | 0 |
Foreign exchange loss on equity method investment | 2,156 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 5,571 | -21,029 |
Inventories | -47,702 | -36,632 |
Prepaid expenses and other assets | -5,457 | -6,148 |
Accounts payable, trade | -44,784 | 40,501 |
Accrued salaries and wages and other liabilities | -28,741 | 23,649 |
Net cash provided by operating activities | 28,052 | 167,987 |
Cash flows from investing activities: | ||
Purchases of property and equipment | -113,375 | -83,450 |
Purchases of short-term investments | -195,892 | -346,799 |
Proceeds from maturities of short-term investments | 240,463 | 251,020 |
Proceeds from sale of property and equipment | 60 | 94 |
Proceeds from sale of short-term investments | 192,153 | 12,295 |
Purchases of patent and licensing rights | -9,604 | -10,046 |
Purchase of other long-term investments | -80,566 | 0 |
Net cash provided by (used in) investing activities | 33,239 | -176,886 |
Cash flows from financing activities: | ||
Proceeds from long-term debt borrowings | 265,000 | 0 |
Payments on long-term debt borrowings | -115,000 | 0 |
Net proceeds from issuance of common stock | 21,089 | 73,079 |
Excess tax benefit from stock-based payment arrangements | 1,651 | 14,853 |
Repurchases of common stock | -320,349 | -107 |
Net cash (used in) provided by financing activities | -147,609 | 87,825 |
Effects of foreign exchange changes on cash and cash equivalents | -546 | 393 |
Net (decrease) increase in cash and cash equivalents | -86,864 | 79,319 |
Cash and cash equivalents: | ||
Beginning of period | 286,824 | 190,069 |
End of period | $199,960 | $269,388 |
Basis_of_Presentation
Basis of Presentation | 6 Months Ended | |
Dec. 28, 2014 | ||
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Basis of Presentation | Basis of Presentation and New Accounting Standards | |
Overview | ||
Cree, Inc. (the Company) is a leading innovator of lighting-class light emitting diode (LED) products, lighting products and semiconductor products for power and radio-frequency (RF) applications. The Company's products are targeted for applications such as indoor and outdoor lighting, video displays, transportation, electronic signs and signals, power supplies, inverters and wireless systems. | ||
The Company's LED products consist of LED components, LED chips and silicon carbide (SiC) materials. The Company's success in selling LED products depends upon its ability to offer innovative products and to enable its customers to develop and market LED-based products that successfully compete against other LED-based products and drive LED adoption against traditional lighting products. | ||
The Company's lighting products primarily consist of LED lighting systems and bulbs. The Company designs, manufactures and sells lighting fixtures and lamps for the commercial, industrial and consumer markets. | ||
In addition, the Company develops, manufactures and sells power and RF devices. The Company's power products are made from SiC and provide increased efficiency, faster switching speeds and reduced system size and weight over comparable silicon-based power devices. The Company's RF devices are made from gallium nitride (GaN) and provide improved efficiency, bandwidth and frequency of operation as compared to silicon or gallium arsenide (GaAs). | ||
The majority of the Company's products are manufactured at its production facilities located in North Carolina, Wisconsin and China. The Company also uses contract manufacturers for certain aspects of product fabrication, assembly and packaging. The Company operates research and development facilities in North Carolina, California, Wisconsin, India and China (including Hong Kong). | ||
Cree, Inc. is a North Carolina corporation established in 1987 and is headquartered in Durham, North Carolina. | ||
The Company's three reportable segments are: | ||
• | LED Products | |
• | Lighting Products | |
• | Power and RF Products | |
For financial results by reportable segment, please refer to Note 12, "Reportable Segments." | ||
Basis of Presentation | ||
The consolidated balance sheet at December 28, 2014, the consolidated statements of income for the three and six months ended December 28, 2014 and December 29, 2013, the consolidated statements of comprehensive income for the three and six months ended December 28, 2014 and December 29, 2013, and the consolidated statements of cash flows for the six months ended December 28, 2014 and December 29, 2013 (collectively, the consolidated financial statements) have been prepared by the Company and have not been audited. In the opinion of management, all normal and recurring adjustments necessary to present fairly the consolidated financial position, results of operations and cash flows at December 28, 2014, and for all periods presented, have been made. All intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 29, 2014 has been derived from the audited financial statements as of that date. | ||
These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 29, 2014 (fiscal 2014). The results of operations for the three and six months ended December 28, 2014 are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 28, 2015 (fiscal 2015). | ||
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities. Actual amounts could differ materially from those estimates. | ||
Certain fiscal 2014 amounts in the accompanying consolidated financial statements have been reclassified to conform to the fiscal 2015 presentation. These reclassifications had no effect on previously reported consolidated net income or shareholders’ equity. | ||
New Accounting Standards | ||
Revenue from Contracts with Customers | ||
In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09: Revenue from Contracts with Customers (Topic 606). The ASU establishes a principles-based approach for accounting for revenue arising from contracts with customers and supersedes existing revenue recognition guidance. The ASU provides that an entity should apply a five-step approach for recognizing revenue, including (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. Also, the entity must provide various disclosures concerning the nature, amount and timing of revenue and cash flows arising from contracts with customers. The effective date will be the first quarter of the Company's fiscal year ending June 24, 2018, using one of two retrospective application methods. The Company is currently analyzing the impact of this new accounting guidance. |
Financial_Statement_Details
Financial Statement Details | 6 Months Ended | ||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||
Financial Statement Details [Abstract] | |||||||||||||||||||
Financial Statement Details | Financial Statement Details | ||||||||||||||||||
Accounts Receivable, net | |||||||||||||||||||
The following table summarizes the components of accounts receivable, net (in thousands): | |||||||||||||||||||
December 28, 2014 | June 29, 2014 | ||||||||||||||||||
Billed trade receivables | $256,350 | $255,374 | |||||||||||||||||
Unbilled contract receivables | 2,131 | 1,557 | |||||||||||||||||
258,481 | 256,931 | ||||||||||||||||||
Allowance for sales returns, discounts and other incentives | (35,869 | ) | (29,010 | ) | |||||||||||||||
Allowance for bad debts | (3,652 | ) | (2,761 | ) | |||||||||||||||
Accounts receivable, net | $218,960 | $225,160 | |||||||||||||||||
Inventories | |||||||||||||||||||
The following table summarizes the components of inventories (in thousands): | |||||||||||||||||||
December 28, 2014 | June 29, 2014 | ||||||||||||||||||
Raw material | $98,177 | $95,594 | |||||||||||||||||
Work-in-progress | 114,378 | 92,889 | |||||||||||||||||
Finished goods | 119,993 | 96,297 | |||||||||||||||||
Inventories | $332,548 | $284,780 | |||||||||||||||||
Other Current Liabilities | |||||||||||||||||||
The following table summarizes the components of other current liabilities (in thousands): | |||||||||||||||||||
December 28, 2014 | June 29, 2014 | ||||||||||||||||||
Accrued taxes | $18,148 | $19,835 | |||||||||||||||||
Accrued professional fees | 6,281 | 5,373 | |||||||||||||||||
Accrued warranty | 6,945 | 5,842 | |||||||||||||||||
Accrued other | 6,414 | 7,936 | |||||||||||||||||
Other current liabilities | $37,788 | $38,986 | |||||||||||||||||
Accumulated Other Comprehensive Income, net of taxes | |||||||||||||||||||
The following table summarizes the components of accumulated other comprehensive income, net of taxes (in thousands): | |||||||||||||||||||
December 28, 2014 | June 29, 2014 | ||||||||||||||||||
Currency translation gain | $6,647 | $8,549 | |||||||||||||||||
Net unrealized gain on available-for-sale securities | 1,545 | 2,856 | |||||||||||||||||
Accumulated other comprehensive income, net of taxes | $8,192 | $11,405 | |||||||||||||||||
Non-Operating Income, net | |||||||||||||||||||
The following table summarizes the components of non-operating income, net (in thousands): | |||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
December 28, 2014 | December 29, 2013 | December 28, 2014 | December 29, 2013 | ||||||||||||||||
Foreign currency (loss) gain, net | ($2,365 | ) | $213 | ($2,596 | ) | $477 | |||||||||||||
Gain on sale of investments, net | 774 | — | 776 | 10 | |||||||||||||||
Gain on equity method investment | 679 | — | 679 | — | |||||||||||||||
Interest income, net | 2,586 | 2,806 | 5,618 | 5,147 | |||||||||||||||
Other, net | 54 | 384 | 155 | 587 | |||||||||||||||
Non-operating income, net | $1,728 | $3,403 | $4,632 | $6,221 | |||||||||||||||
Reclassifications Out of Accumulated Other Comprehensive Income, net of taxes | |||||||||||||||||||
The following table summarizes the amounts reclassified out of accumulated other comprehensive income, net of taxes (in thousands): | |||||||||||||||||||
Accumulated Other Comprehensive Income Component | Amount Reclassified Out of Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
December 28, 2014 | December 29, 2013 | December 28, 2014 | December 29, 2013 | ||||||||||||||||
Net unrealized gain on available-for-sale securities, net of taxes | $774 | $— | $776 | $10 | Non-operating income, net | ||||||||||||||
774 | — | 776 | 10 | Income before income taxes | |||||||||||||||
(15 | ) | — | 88 | 2 | Income tax (benefit) expense | ||||||||||||||
$789 | $— | $688 | $8 | Net income | |||||||||||||||
Investments
Investments | 6 Months Ended | ||||||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Investments | Investments | ||||||||||||||||||||||||
Investments consisted primarily of municipal bonds, corporate bonds, U.S. agency securities, non-U.S. certificates of deposit and non-U.S. government securities. All short-term investments are classified as available-for-sale. Other long-term investments consist of the Company's approximately 13% common stock ownership interest in Lextar Electronics Corporation, which was completed in December 2014. This investment is accounted for under the equity method utilizing the fair value option. | |||||||||||||||||||||||||
The following tables summarize short-term investments (in thousands): | |||||||||||||||||||||||||
December 28, 2014 | |||||||||||||||||||||||||
Amortized | Gross Unrealized | Gross | Estimated Fair | ||||||||||||||||||||||
Cost | Gains | Unrealized | Value | ||||||||||||||||||||||
Losses | |||||||||||||||||||||||||
Municipal bonds | $183,806 | $1,504 | ($154 | ) | $185,156 | ||||||||||||||||||||
Corporate bonds | 160,346 | 1,537 | (377 | ) | 161,506 | ||||||||||||||||||||
U.S. agency securities | — | — | — | — | |||||||||||||||||||||
Non-U.S. certificates of deposit | 283,303 | — | — | 283,303 | |||||||||||||||||||||
Non-U.S. government securities | — | — | — | — | |||||||||||||||||||||
Total short-term investments | $627,455 | $3,041 | ($531 | ) | $629,965 | ||||||||||||||||||||
June 29, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Municipal bonds | $291,869 | $2,323 | ($12 | ) | $294,180 | ||||||||||||||||||||
Corporate bonds | 200,177 | 2,283 | (114 | ) | 202,346 | ||||||||||||||||||||
U.S. agency securities | 18,994 | 141 | — | 19,135 | |||||||||||||||||||||
Non-U.S. certificates of deposit | 352,928 | — | — | 352,928 | |||||||||||||||||||||
Non-U.S. government securities | 7,025 | 28 | — | 7,053 | |||||||||||||||||||||
Total short-term investments | $870,993 | $4,775 | ($126 | ) | $875,642 | ||||||||||||||||||||
The following tables present the gross unrealized losses and estimated fair value of the Company's short-term investments, aggregated by investment type and the length of time that individual securities have been in a continuous unrealized loss position (in thousands, except numbers of securities): | |||||||||||||||||||||||||
December 28, 2014 | |||||||||||||||||||||||||
Less than 12 Months | Greater than 12 Months | Total | |||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||
Municipal bonds | $35,417 | ($154 | ) | $— | $— | $35,417 | ($154 | ) | |||||||||||||||||
Corporate bonds | 58,229 | (341 | ) | 2,212 | (36 | ) | 60,441 | (377 | ) | ||||||||||||||||
Total | $93,646 | ($495 | ) | $2,212 | ($36 | ) | $95,858 | ($531 | ) | ||||||||||||||||
Number of securities with an unrealized loss | 47 | 1 | 48 | ||||||||||||||||||||||
June 29, 2014 | |||||||||||||||||||||||||
Less than 12 Months | Greater than 12 Months | Total | |||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||
Municipal bonds | $7,906 | ($8 | ) | $1,520 | ($4 | ) | $9,426 | ($12 | ) | ||||||||||||||||
Corporate bonds | 15,696 | (31 | ) | 13,049 | (83 | ) | 28,745 | (114 | ) | ||||||||||||||||
Total | $23,602 | ($39 | ) | $14,569 | ($87 | ) | $38,171 | ($126 | ) | ||||||||||||||||
Number of securities with an unrealized loss | 13 | 7 | 20 | ||||||||||||||||||||||
The Company utilizes specific identification in computing realized gains and losses on the sale of investments. Realized gains and losses from the sale of investments are included in Non-operating income, net in the Consolidated Statements of Income and unrealized gains and losses are included as a separate component of equity, net of tax, unless the loss is determined to be other-than-temporary. | |||||||||||||||||||||||||
The Company evaluates its investments for possible impairment or a decline in fair value below cost basis that is deemed to be other-than-temporary on a periodic basis. It considers such factors as the length of time and extent to which the fair value has been below the cost basis, the financial condition of the investee, and its ability and intent to hold the investment for a period of time that may be sufficient for an anticipated full recovery in market value. Accordingly, the Company considered declines in its investments to be temporary in nature, and did not consider its securities to be impaired as of December 28, 2014 and June 29, 2014. | |||||||||||||||||||||||||
The contractual maturities of short-term investments as of December 28, 2014 were as follows (in thousands): | |||||||||||||||||||||||||
Within One | After One, | After Five, | After Ten | Total | |||||||||||||||||||||
Year | Within Five | Within Ten | Years | ||||||||||||||||||||||
Years | Years | ||||||||||||||||||||||||
Municipal bonds | $23,593 | $127,148 | $34,415 | $— | $185,156 | ||||||||||||||||||||
Corporate bonds | 22,435 | 106,525 | 32,546 | — | 161,506 | ||||||||||||||||||||
Non-U.S. certificates of deposit | 283,303 | — | — | — | 283,303 | ||||||||||||||||||||
Total short-term investments | $329,331 | $233,673 | $66,961 | $— | $629,965 | ||||||||||||||||||||
Fair_Value_of_Financial_Instru
Fair Value of Financial Instruments | 6 Months Ended | |||||||||||||||||||||||||||||||
Dec. 28, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Fair Value of Financial Instruments | Fair Value of Financial Instruments | |||||||||||||||||||||||||||||||
Under U.S. GAAP, fair value is defined as the price that would be received to sell an asset or paid to transfer a liability (i.e., the exit price) in an orderly transaction between market participants at the measurement date. In determining fair value, the Company uses various valuation approaches, including quoted market prices and discounted cash flows. U.S. GAAP also establishes a hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are obtained from independent sources and can be validated by a third party, whereas unobservable inputs reflect assumptions regarding what a third party would use in pricing an asset or liability. The fair value hierarchy is categorized into three levels based on the reliability of inputs as follows: | ||||||||||||||||||||||||||||||||
• | Level 1 - Valuations based on quoted prices in active markets for identical instruments that the Company is able to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these products does not entail a significant degree of judgment. | |||||||||||||||||||||||||||||||
• | Level 2 - Valuations based on quoted prices in active markets for instruments that are similar, or quoted prices in markets that are not active for identical or similar instruments, and model-derived valuations in which all significant inputs and significant value drivers are observable in active markets. | |||||||||||||||||||||||||||||||
• | Level 3 - Valuations based on inputs that are unobservable and significant to the overall fair value measurement. | |||||||||||||||||||||||||||||||
The financial assets for which the Company performs recurring fair value remeasurements are cash equivalents, short-term investments and long-term investments. As of December 28, 2014, financial assets utilizing Level 1 inputs included money market funds, and financial assets utilizing Level 2 inputs included municipal bonds, corporate bonds, U.S. agency securities, non-U.S. certificates of deposit, non-U.S. government securities and common stock of non-U.S. corporations. Level 2 assets are valued using a third-party pricing service's consensus price, which is a weighted average price based on multiple sources. These sources determine prices utilizing market income models which factor in, where applicable, transactions of similar assets in active markets, transactions of identical assets in infrequent markets, interest rates, bond or credit default swap spreads and volatility. The Company did not have any financial assets requiring the use of Level 3 inputs as of December 28, 2014. There were no transfers between Level 1 and Level 2 during the six months ended December 28, 2014. | ||||||||||||||||||||||||||||||||
The following table sets forth financial instruments carried at fair value within the U.S. GAAP hierarchy (in thousands): | ||||||||||||||||||||||||||||||||
December 28, 2014 | June 29, 2014 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||||||||
Non-U.S. certificates of deposit | $— | $156 | $— | $156 | $— | $— | $— | $— | ||||||||||||||||||||||||
Money market funds | 4,455 | — | — | 4,455 | 40,031 | — | — | 40,031 | ||||||||||||||||||||||||
Total cash equivalents | 4,455 | 156 | — | 4,611 | 40,031 | — | — | 40,031 | ||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||
Municipal bonds | — | 185,156 | — | 185,156 | — | 294,180 | — | 294,180 | ||||||||||||||||||||||||
Corporate bonds | — | 161,506 | — | 161,506 | — | 202,346 | — | 202,346 | ||||||||||||||||||||||||
U.S. agency securities | — | — | — | — | — | 19,135 | — | 19,135 | ||||||||||||||||||||||||
Non-U.S. certificates of deposit | — | 283,303 | — | 283,303 | — | 352,928 | — | 352,928 | ||||||||||||||||||||||||
Non-U.S. government securities | — | — | — | — | — | 7,053 | — | 7,053 | ||||||||||||||||||||||||
Total short-term investments | — | 629,965 | — | 629,965 | — | 875,642 | — | 875,642 | ||||||||||||||||||||||||
Other long-term investments: | ||||||||||||||||||||||||||||||||
Common stock of non-U.S. corporations | — | 79,089 | — | 79,089 | — | — | — | — | ||||||||||||||||||||||||
Total other long-term investments | — | 79,089 | — | 79,089 | — | — | — | — | ||||||||||||||||||||||||
Total assets | $4,455 | $709,210 | $— | $713,665 | $40,031 | $875,642 | $— | $915,673 | ||||||||||||||||||||||||
Intangible_Assets
Intangible Assets | 6 Months Ended | |||||||||||||||||||||||
Dec. 28, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Intangible Assets | Intangible Assets | |||||||||||||||||||||||
The following table presents the components of intangible assets, net (in thousands): | ||||||||||||||||||||||||
December 28, 2014 | June 29, 2014 | |||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||
Customer relationships | $137,440 | ($69,659 | ) | $67,781 | $137,440 | ($66,970 | ) | $70,470 | ||||||||||||||||
Developed technology | 162,760 | (82,242 | ) | 80,518 | 162,760 | (72,921 | ) | 89,839 | ||||||||||||||||
Non-compete agreements | 10,244 | (6,977 | ) | 3,267 | 10,244 | (5,997 | ) | 4,247 | ||||||||||||||||
Trade names, finite-lived | 520 | (520 | ) | — | 520 | (516 | ) | 4 | ||||||||||||||||
Patent and licensing rights | 143,342 | (46,863 | ) | 96,479 | 134,607 | (42,424 | ) | 92,183 | ||||||||||||||||
Total intangible assets with finite lives | 454,306 | (206,261 | ) | 248,045 | 445,571 | (188,828 | ) | 256,743 | ||||||||||||||||
Trade names, indefinite-lived | 79,680 | 79,680 | 79,680 | 79,680 | ||||||||||||||||||||
Total intangible assets | $533,986 | ($206,261 | ) | $327,725 | $525,251 | ($188,828 | ) | $336,423 | ||||||||||||||||
For the three and six months ended December 28, 2014, total amortization of finite-lived intangible assets was $9.0 million and $17.9 million, respectively. For the three and six months ended December 29, 2013, total amortization of finite-lived intangible assets was $9.4 million and $18.8 million, respectively. | ||||||||||||||||||||||||
Total future amortization expense of finite-lived intangible assets is estimated to be as follows (in thousands): | ||||||||||||||||||||||||
Fiscal Year Ending | ||||||||||||||||||||||||
June 28, 2015 (remainder of fiscal 2015) | $17,562 | |||||||||||||||||||||||
June 26, 2016 | 34,921 | |||||||||||||||||||||||
June 25, 2017 | 32,910 | |||||||||||||||||||||||
June 24, 2018 | 31,718 | |||||||||||||||||||||||
June 30, 2019 | 19,150 | |||||||||||||||||||||||
Thereafter | 111,784 | |||||||||||||||||||||||
Total future amortization expense | $248,045 | |||||||||||||||||||||||
Longterm_Debt
Long-term Debt | 6 Months Ended |
Dec. 28, 2014 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term Debt | Long-term Debt |
As of December 28, 2014, the Company had a $150 million unsecured revolving line of credit under which the Company could borrow, repay and reborrow loans from time to time prior to its scheduled maturity date of August 12, 2017. This line of credit was repaid on January 9, 2015 when the Company entered into a new $500 million credit agreement with Wells Fargo Bank, National Association (Wells Fargo Bank) and a syndication of financial institutions. See Note 13, “Subsequent Event” for a description of the new credit agreement. | |
The Company classifies balances outstanding under its line of credit as Long-term debt in the Consolidated Balance Sheets. At December 28, 2014, the Company had $150 million outstanding under the line of credit and nothing available for borrowing. The average interest rate was 0.86% for the three and six months ended December 28, 2014. The average commitment fee percentage was 0.08% for the three and six months ended December 28, 2014. The Company was in compliance with all covenants in the line of credit at December 28, 2014. |
Shareholders_Equity
Shareholders' Equity | 6 Months Ended |
Dec. 28, 2014 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity |
As of December 28, 2014, pursuant to an approval by the Board of Directors to an increase in the amount of the stock repurchase program, the Company is authorized to repurchase shares of its common stock having an aggregate purchase price not exceeding $550 million for all purchases from June 30, 2014 through the expiration of the program on June 28, 2015. During the six months ended December 28, 2014, the Company repurchased 9.3 million shares of common stock for $320.3 million under the stock repurchase program. |
Earnings_Per_Share
Earnings Per Share | 6 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Earnings Per Share | Earnings Per Share | |||||||||||||||
The following table presents the computation of basic earnings per share (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 28, | December 29, | December 28, | December 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income | $12,151 | $35,681 | $23,281 | $66,178 | ||||||||||||
Weighted average common shares | 115,264 | 120,932 | 117,435 | 120,248 | ||||||||||||
Basic earnings per share | $0.11 | $0.30 | $0.20 | $0.55 | ||||||||||||
The following computation reconciles the differences between the basic and diluted earnings per share presentations (in thousands, except per share amounts): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 28, | December 29, | December 28, | December 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income | $12,151 | $35,681 | $23,281 | $66,178 | ||||||||||||
Weighted average common shares - basic | 115,264 | 120,932 | 117,435 | 120,248 | ||||||||||||
Dilutive effect of stock options, nonvested shares and Employee Stock Purchase Plan purchase rights | 581 | 2,272 | 1,164 | 2,573 | ||||||||||||
Weighted average common shares - diluted | 115,845 | 123,204 | 118,599 | 122,821 | ||||||||||||
Diluted earnings per share | $0.10 | $0.29 | $0.20 | $0.54 | ||||||||||||
Potential common shares that would have the effect of increasing diluted earnings per share are considered to be anti-dilutive and as such, these shares are not included in calculating diluted earnings per share. For the three and six months ended December 28, 2014, there were 8.6 million and 6.5 million, respectively, of potential common shares not included in the calculation of diluted earnings per share because their effect was anti-dilutive. For the three and six months ended December 29, 2013, there were 3.1 million and 2.1 million, respectively, of potential common shares not included in the calculation of diluted earnings per share because their effect was anti-dilutive. |
StockBased_Compensation
Stock-Based Compensation | 6 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||||
Stock-Based Compensation | Stock-Based Compensation | |||||||||||||||
Overview of Employee Stock-Based Compensation Plans | ||||||||||||||||
The Company currently has one equity-based compensation plan, the 2013 Long-Term Incentive Compensation Plan (2013 LTIP), from which stock-based compensation awards can be granted to employees and directors. The 2013 LTIP provides for awards in the form of incentive stock options, non-qualified stock options, stock appreciation rights, restricted stock, restricted stock units, performance shares, performance units and other awards. The Company has other equity-based compensation plans that have been terminated so that no future grants can be made under those plans, but under which options, restricted stock and restricted stock units are currently outstanding. | ||||||||||||||||
Prior to fiscal 2013, the Company’s stock-based awards had been service-based only. Beginning in fiscal 2013, the Company began issuing grants of awards that also contain performance-based conditions. Performance-based conditions are generally tied to future financial and/or operating performance of the Company. The compensation expense with respect to performance-based grants is recognized if the Company believes it is probable that the performance condition will be achieved. The Company reassesses the probability of the achievement of the performance condition at each reporting period, and adjusts the compensation expense for subsequent changes in the estimate or actual outcome. As with non-performance based awards, compensation expense is recognized over the vesting period. The vesting period runs from the date of grant to the expected date that the performance objective is likely to be achieved. | ||||||||||||||||
The Company also has an Employee Stock Purchase Plan (ESPP) that provides employees with the opportunity to purchase common stock at a discount. The ESPP limits employee contributions to 15% of each employee’s compensation (as defined in the plan) and originally allowed employees to purchase shares at a 15% discount to the fair market value of common stock on the purchase date two times per year. The ESPP was amended in the second quarter of fiscal 2012 to increase the six-month participation period to a twelve-month participation period, divided into two equal six-month purchase periods, and to provide for a look-back feature. At the end of each six-month period in April and October, employees participating in the plan purchase the Company’s common stock through the ESPP at a 15% discount to the fair market value of the common stock on the first day of the twelve-month participation period or the purchase date, whichever is lower. The plan amendment also provides for an automatic reset feature to start participants on a new twelve-month participation period if the fair market value of common stock declines during the first six-month purchase period. | ||||||||||||||||
Stock Option Awards | ||||||||||||||||
The following table summarizes option activity as of December 28, 2014 and changes during the six months then ended (numbers of shares in thousands): | ||||||||||||||||
Number of Shares | Weighted Average Exercise Price | |||||||||||||||
Outstanding at June 29, 2014 | 8,922 | $41.85 | ||||||||||||||
Granted | 3,294 | $44.93 | ||||||||||||||
Exercised | (477 | ) | $29.15 | |||||||||||||
Forfeited or expired | (362 | ) | $47.99 | |||||||||||||
Outstanding at December 28, 2014 | 11,377 | $43.08 | ||||||||||||||
Restricted Stock Awards and Units | ||||||||||||||||
A summary of nonvested restricted stock awards (RSAs) and restricted stock unit awards (RSUs) outstanding as of December 28, 2014, and changes during the six months then ended is as follows (numbers of awards and units in thousands): | ||||||||||||||||
Number of | Weighted Average | |||||||||||||||
RSAs/RSUs | Grant-Date Fair Value | |||||||||||||||
Nonvested at June 29, 2014 | 860 | $46.81 | ||||||||||||||
Granted | 433 | $44.94 | ||||||||||||||
Vested | (347 | ) | $46.15 | |||||||||||||
Forfeited | (38 | ) | $48.62 | |||||||||||||
Nonvested at December 28, 2014 | 908 | $46.09 | ||||||||||||||
Stock-Based Compensation Valuation and Expense | ||||||||||||||||
The Company accounts for its employee stock-based compensation plans using the fair value method. The fair value method requires the Company to estimate the grant-date fair value of its stock-based awards and amortize this fair value to compensation expense over the requisite service period or vesting term. | ||||||||||||||||
The Company uses the Black-Scholes option-pricing model to estimate the fair value of the Company’s stock option and ESPP awards. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, the risk-free interest rate and expected dividends. Due to the inherent limitations of option-valuation models, future events that are unpredictable and the estimation process utilized in determining the valuation of the stock-based awards, the ultimate value realized by award holders may vary significantly from the amounts expensed in the Company’s financial statements. | ||||||||||||||||
For RSAs and RSUs, the grant-date fair value is based upon the market price of the Company’s common stock on the date of the grant. This fair value is then amortized to compensation expense over the requisite service period or vesting term. | ||||||||||||||||
Stock-based compensation expense is recognized net of estimated forfeitures such that expense is recognized only for those stock-based awards that are expected to vest. A forfeiture rate is estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. | ||||||||||||||||
Total stock-based compensation expense was as follows (in thousands): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 28, | December 29, | December 28, | December 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income Statement Classification: | ||||||||||||||||
Cost of revenue, net | $3,448 | $2,849 | $6,353 | $5,228 | ||||||||||||
Research and development | 4,112 | 3,829 | 8,583 | 7,541 | ||||||||||||
Sales, general and administrative | 8,876 | 8,994 | 18,260 | 17,481 | ||||||||||||
Total stock-based compensation expense | $16,436 | $15,672 | $33,196 | $30,250 | ||||||||||||
Income_Taxes
Income Taxes | 6 Months Ended |
Dec. 28, 2014 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes |
The variation between the Company's effective income tax rate and the U.S. statutory rate of 35% is due to a percentage of the Company's projected income for the full year being derived from international locations with lower tax rates than the U.S. and the impact of tax credits available in the current year. A change in the mix of pretax income of the Company's various tax jurisdictions can have a material impact on the Company's periodic effective tax rate. The research and development credit, which had previously expired on December 31, 2013, was reinstated as part of the Tax Increase Prevention Act of 2014, enacted on December 19, 2014. This legislation retroactively reinstated and extended the credit from the previous expiration date through December 31, 2014. The Company recognized a $1.9 million benefit for this credit in the three months ended December 28, 2014. | |
U.S. GAAP requires a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is cumulatively more than 50% likely to be realized upon ultimate settlement. | |
As of June 29, 2014, the Company's liability for unrecognized tax benefits was $18.4 million. During the six months ended December 28, 2014, there was a $0.2 million decrease to the amount of unrecognized tax benefits following statute expirations. As a result, the total liability for unrecognized tax benefits as of December 28, 2014 was $18.2 million. If any portion of this $18.2 million is recognized, the Company will then include that portion in the computation of its effective tax rate. Although the ultimate timing of the resolution and/or closure of audits is highly uncertain, the Company believes it is reasonably possible that an immaterial amount of gross unrecognized tax benefits will change in the next 12 months. | |
The Company files U.S. federal, U.S. state and foreign tax returns. For U.S. federal purposes, the Company is generally no longer subject to tax examinations for fiscal years prior to 2012. For U.S. state tax returns, the Company is generally no longer subject to tax examinations for fiscal years prior to 2010. For foreign purposes, the Company is generally no longer subject to tax examinations for tax periods 2004 and prior. Certain carryforward tax attributes generated in prior years remain subject to examination and adjustment. During the second quarter of fiscal 2015, the Company settled its examination with the French Tax Administration for the fiscal year ended June 26, 2011 (fiscal 2011) through the fiscal year ended June 29, 2014 (fiscal 2014), resulting in no additional tax expense. |
Commitments_and_Contingencies
Commitments and Contingencies | 6 Months Ended | |||
Dec. 28, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Commitments and Contingencies | Commitments and Contingencies | |||
Warranties | ||||
The following table summarizes the changes in the Company's product warranty liabilities (in thousands): | ||||
Balance at June 29, 2014 | $6,822 | |||
Warranties accrued in current period | 4,086 | |||
Expenditures | (3,086 | ) | ||
Balance at December 28, 2014 | $7,822 | |||
Product warranties are estimated and recognized at the time the Company recognizes revenue. The warranty periods range from 90 days to 10 years. The Company accrues warranty liabilities at the time of sale, based on historical and projected incident rates and expected future warranty costs. The warranty reserves, which are primarily related to Lighting Products, are evaluated on a quarterly basis based on various factors including historical warranty claims, assumptions about the frequency of warranty claims, and assumptions about the frequency of product failures derived from quality testing, field monitoring and the Company's reliability estimates. As of December 28, 2014, $0.9 million of the Company's product warranty liabilities were classified as long-term. | ||||
Litigation | ||||
The Company is currently a party to various legal proceedings. While management presently believes that the ultimate outcome of such proceedings, individually and in the aggregate, will not materially harm the Company’s financial position, cash flows, or overall trends in results of operations, legal proceedings are subject to inherent uncertainties, and unfavorable rulings could occur. An unfavorable ruling could include money damages or, in matters for which injunctive relief or other conduct remedies may be sought, an injunction prohibiting the Company from selling one or more products at all or in particular ways. Were unfavorable final outcomes to occur, there exists the possibility of a material adverse impact on the Company’s business, results of operation, financial position and overall trends. The outcomes in these matters are not reasonably estimable. |
Reportable_Segments
Reportable Segments | 6 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Reportable Segments | Reportable Segments | |||||||||||||||
The Company's operating and reportable segments are: | ||||||||||||||||
• | LED Products | |||||||||||||||
• | Lighting Products | |||||||||||||||
• | Power and RF Products | |||||||||||||||
Reportable Segments Description | ||||||||||||||||
The Company's LED Products segment includes LED chips, LED components and SiC materials. The Company's Lighting Products segment primarily consists of LED lighting systems and bulbs. The Company's Power and RF Products segment includes power devices and RF devices. | ||||||||||||||||
Financial Results by Reportable Segment | ||||||||||||||||
The table below reflects the results of the Company's reportable segments as reviewed by the Chief Operating Decision Maker (CODM) for the three and six months ended December 28, 2014 and December 29, 2013. The Company's CODM is the Chief Executive Officer. The Company used the same accounting policies to derive the segment results reported below as those used in the Company's consolidated financial statements. | ||||||||||||||||
The Company's CODM does not review inter-segment transactions when evaluating segment performance and allocating resources to each segment, and inter-segment transactions are not included in the segment revenue presented in the table below. As such, total segment revenue in the table below is equal to the Company's consolidated revenue. | ||||||||||||||||
The Company's CODM reviews gross profit as the lowest and only level of segment profit. As such, all items below gross profit in the Consolidated Statements of Income must be included to reconcile the consolidated gross profit presented in the table below to the Company's consolidated income before income taxes. | ||||||||||||||||
In order to determine gross profit for each reportable segment, the Company allocates direct costs and indirect costs to each segment's cost of revenue. The Company allocates indirect costs, such as employee benefits for manufacturing employees, shared facilities services, information technology, purchasing, and customer service, when the costs are identifiable and beneficial to the reportable segment. The Company allocates these indirect costs based on a reasonable measure of utilization that considers the specific facts and circumstances of the costs being allocated. | ||||||||||||||||
Unallocated costs in the table below consisted primarily of manufacturing employees’ stock-based compensation, profit sharing and quarterly or annual incentive compensation and matching contributions under the Company’s 401(k) plan. These costs were not allocated to the reportable segments’ gross profit because the Company’s CODM does not review them regularly when evaluating segment performance and allocating resources. | ||||||||||||||||
Revenue, gross profit and gross margin for each of the Company's segments were as follows (in thousands, except percentages): | ||||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 28, | December 29, | December 28, | December 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
LED Products revenue | $151,877 | $215,022 | $325,467 | $433,045 | ||||||||||||
Lighting Products revenue | 230,168 | 173,656 | 453,254 | 321,574 | ||||||||||||
Power and RF Products revenue | 31,112 | 26,408 | 62,108 | 51,473 | ||||||||||||
Total revenue | $413,157 | $415,086 | $840,829 | $806,092 | ||||||||||||
Gross Profit and Gross Margin: | ||||||||||||||||
LED Products gross profit | $59,424 | $97,644 | $127,048 | $199,297 | ||||||||||||
LED Products gross margin | 39.1 | % | 45.4 | % | 39 | % | 46 | % | ||||||||
Lighting Products gross profit | 64,701 | 48,426 | 120,293 | 88,244 | ||||||||||||
Lighting Products gross margin | 28.1 | % | 27.9 | % | 26.5 | % | 27.4 | % | ||||||||
Power and RF Products gross profit | 17,260 | 15,321 | 35,117 | 28,777 | ||||||||||||
Power and RF Products gross margin | 55.5 | % | 58 | % | 56.5 | % | 55.9 | % | ||||||||
Total segment gross profit | 141,385 | 161,391 | 282,458 | 316,318 | ||||||||||||
Unallocated costs | (4,606 | ) | (5,613 | ) | (9,859 | ) | (9,783 | ) | ||||||||
Consolidated gross profit | $136,779 | $155,778 | $272,599 | $306,535 | ||||||||||||
Consolidated gross margin | 33.1 | % | 37.5 | % | 32.4 | % | 38 | % | ||||||||
Assets by Reportable Segment | ||||||||||||||||
Inventories are the only assets reviewed by the Company's CODM when evaluating segment performance and allocating resources to the segments. The CODM reviews all of the Company's assets other than inventories on a consolidated basis. | ||||||||||||||||
Unallocated inventories in the table below were not allocated to the reportable segments because the Company’s CODM does not review them when evaluating performance and allocating resources to each segment. Unallocated inventories consisted primarily of manufacturing employees’ stock-based compensation, profit sharing and quarterly or annual incentive compensation and matching contributions under the Company’s 401(k) plan. | ||||||||||||||||
Inventories for each of the Company's segments are as follows (in thousands): | ||||||||||||||||
December 28, | June 29, | |||||||||||||||
2014 | 2014 | |||||||||||||||
LED Products | $ | 135,456 | $ | 123,249 | ||||||||||||
Lighting Products | 181,848 | 148,757 | ||||||||||||||
Power and RF Products | 10,190 | 8,019 | ||||||||||||||
Total segment inventories | 327,494 | 280,025 | ||||||||||||||
Unallocated inventories | 5,054 | 4,755 | ||||||||||||||
Consolidated inventories | $ | 332,548 | $ | 284,780 | ||||||||||||
Subsequent_Event_Subsequent_Ev
Subsequent Event Subsequent Event | 6 Months Ended |
Dec. 28, 2014 | |
Subsequent Events [Abstract] | |
Subsequent Event | Subsequent Event |
Credit Agreement with Wells Fargo Bank | |
On January 9, 2015, the Company entered into a new credit agreement (New Credit Agreement) with Wells Fargo Bank as administrative agent and lender, E-conolight LLC, a domestic subsidiary of the Company, as guarantor, and the other lenders party thereto. | |
The New Credit Agreement provides for a $500 million revolving line of credit, under which the Company may borrow, repay and reborrow loans from time to time prior to its scheduled maturity date of January 9, 2020 (Maturity Date). The obligations of the Company under the New Credit Agreement are collateralized by 65% of the equity interests of the first-tier foreign subsidiaries of the Company. Proceeds of the initial loans made under the New Credit Agreement were used to repay amounts outstanding under the Company’s previous credit agreement with Wells Fargo Bank, and proceeds of any additional loans may be used for working capital, capital expenditures, acquisitions and other general corporate purposes. The Company may prepay the loans under the New Credit Agreement in whole or in part at any time without premium or penalty, subject to customary breakage costs. The Company’s existing and future material domestic subsidiaries are required to guarantee its obligations under the New Credit Agreement. | |
The loans bear interest, at the Company’s option, at either a London Interbank Offered Rate (LIBOR) rate for a period of one, two, three or six months as elected by the Company (or twelve months if elected by the Company and agreed by all relevant lenders) and as determined in accordance with the New Credit Agreement, plus a spread of 0.80% to 1.50% (depending on a ratio of funded debt to Earnings Before Interest Taxes Depreciation and Amortization (EBITDA) as determined in accordance with the New Credit Agreement), or at a base rate equal to the prime rate announced by the administrative agent from time to time (or, if higher either the Federal Funds Rate plus 0.50% or the one month LIBOR rate plus 1.0%), plus a spread of 0.0% to 0.50% (depending on a ratio of funded debt to EBITDA as determined in accordance with the New Credit Agreement). Principal, together with all accrued and unpaid interest, is due and payable on the Maturity Date. The default rate under the New Credit Agreement is an additional 2.0% per annum over the otherwise applicable rate. | |
The Company is also obligated to pay a quarterly fee, payable in arrears, based on the daily unused amount of the line of credit at a rate of 0.09% to 0.20%, with such rate determined based on the ratio described above. | |
The New Credit Agreement contains customary affirmative and negative covenants, including the required compliance with financial covenants described below, as well as customary events of default. The New Credit Agreement requires the Company to maintain a ratio of consolidated funded indebtedness to EBITDA equal to or less than 3.00 to 1.00, and a ratio of consolidated EBITDA to interest expense greater than or equal to 3.00 to 1.00, in each case determined in accordance with the New Credit Agreement. |
Basis_of_Presentation_Policies
Basis of Presentation (Policies) | 6 Months Ended |
Dec. 28, 2014 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation |
The consolidated balance sheet at December 28, 2014, the consolidated statements of income for the three and six months ended December 28, 2014 and December 29, 2013, the consolidated statements of comprehensive income for the three and six months ended December 28, 2014 and December 29, 2013, and the consolidated statements of cash flows for the six months ended December 28, 2014 and December 29, 2013 (collectively, the consolidated financial statements) have been prepared by the Company and have not been audited. In the opinion of management, all normal and recurring adjustments necessary to present fairly the consolidated financial position, results of operations and cash flows at December 28, 2014, and for all periods presented, have been made. All intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 29, 2014 has been derived from the audited financial statements as of that date. | |
These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 29, 2014 (fiscal 2014). The results of operations for the three and six months ended December 28, 2014 are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 28, 2015 (fiscal 2015). | |
The preparation of consolidated financial statements in conformity with U.S. GAAP requires management to make estimates and assumptions that affect the reported amounts of assets, liabilities, revenue and expenses, and the disclosure of contingent assets and liabilities. Actual amounts could differ materially from those estimates. | |
Certain fiscal 2014 amounts in the accompanying consolidated financial statements have been reclassified to conform to the fiscal 2015 presentation. These reclassifications had no effect on previously reported consolidated net income or shareholders’ equity. | |
New Accounting Standards | New Accounting Standards |
Revenue from Contracts with Customers | |
In May 2014, the FASB issued Accounting Standards Update (ASU) No. 2014-09: Revenue from Contracts with Customers (Topic 606). The ASU establishes a principles-based approach for accounting for revenue arising from contracts with customers and supersedes existing revenue recognition guidance. The ASU provides that an entity should apply a five-step approach for recognizing revenue, including (1) identify the contract with a customer; (2) identify the performance obligations in the contract; (3) determine the transaction price; (4) allocate the transaction price to the performance obligations in the contract; and (5) recognize revenue when, or as, the entity satisfies a performance obligation. Also, the entity must provide various disclosures concerning the nature, amount and timing of revenue and cash flows arising from contracts with customers. The effective date will be the first quarter of the Company's fiscal year ending June 24, 2018, using one of two retrospective application methods. The Company is currently analyzing the impact of this new accounting guidance. | |
Stock-Based Compensation Valuation and Expense | Stock-Based Compensation Valuation and Expense |
The Company accounts for its employee stock-based compensation plans using the fair value method. The fair value method requires the Company to estimate the grant-date fair value of its stock-based awards and amortize this fair value to compensation expense over the requisite service period or vesting term. | |
The Company uses the Black-Scholes option-pricing model to estimate the fair value of the Company’s stock option and ESPP awards. The determination of the fair value of stock-based payment awards on the date of grant using an option-pricing model is affected by the Company’s stock price as well as assumptions regarding a number of complex and subjective variables. These variables include the expected stock price volatility over the term of the awards, actual and projected employee stock option exercise behaviors, the risk-free interest rate and expected dividends. Due to the inherent limitations of option-valuation models, future events that are unpredictable and the estimation process utilized in determining the valuation of the stock-based awards, the ultimate value realized by award holders may vary significantly from the amounts expensed in the Company’s financial statements. | |
For RSAs and RSUs, the grant-date fair value is based upon the market price of the Company’s common stock on the date of the grant. This fair value is then amortized to compensation expense over the requisite service period or vesting term. | |
Stock-based compensation expense is recognized net of estimated forfeitures such that expense is recognized only for those stock-based awards that are expected to vest. A forfeiture rate is estimated at the time of grant and revised, if necessary, in subsequent periods if actual forfeitures differ from initial estimates. | |
Financial Results by Reportable Segment | Financial Results by Reportable Segment |
The table below reflects the results of the Company's reportable segments as reviewed by the Chief Operating Decision Maker (CODM) for the three and six months ended December 28, 2014 and December 29, 2013. The Company's CODM is the Chief Executive Officer. The Company used the same accounting policies to derive the segment results reported below as those used in the Company's consolidated financial statements. | |
The Company's CODM does not review inter-segment transactions when evaluating segment performance and allocating resources to each segment, and inter-segment transactions are not included in the segment revenue presented in the table below. As such, total segment revenue in the table below is equal to the Company's consolidated revenue. | |
The Company's CODM reviews gross profit as the lowest and only level of segment profit. As such, all items below gross profit in the Consolidated Statements of Income must be included to reconcile the consolidated gross profit presented in the table below to the Company's consolidated income before income taxes. | |
In order to determine gross profit for each reportable segment, the Company allocates direct costs and indirect costs to each segment's cost of revenue. The Company allocates indirect costs, such as employee benefits for manufacturing employees, shared facilities services, information technology, purchasing, and customer service, when the costs are identifiable and beneficial to the reportable segment. The Company allocates these indirect costs based on a reasonable measure of utilization that considers the specific facts and circumstances of the costs being allocated. | |
Unallocated costs in the table below consisted primarily of manufacturing employees’ stock-based compensation, profit sharing and quarterly or annual incentive compensation and matching contributions under the Company’s 401(k) plan. These costs were not allocated to the reportable segments’ gross profit because the Company’s CODM does not review them regularly when evaluating segment performance and allocating resources. |
Financial_Statement_Details_Ta
Financial Statement Details (Tables) | 6 Months Ended | ||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||
Financial Statement Details [Abstract] | |||||||||||||||||||
Summary of the Components of Accounts Receivable, Net | The following table summarizes the components of accounts receivable, net (in thousands): | ||||||||||||||||||
December 28, 2014 | June 29, 2014 | ||||||||||||||||||
Billed trade receivables | $256,350 | $255,374 | |||||||||||||||||
Unbilled contract receivables | 2,131 | 1,557 | |||||||||||||||||
258,481 | 256,931 | ||||||||||||||||||
Allowance for sales returns, discounts and other incentives | (35,869 | ) | (29,010 | ) | |||||||||||||||
Allowance for bad debts | (3,652 | ) | (2,761 | ) | |||||||||||||||
Accounts receivable, net | $218,960 | $225,160 | |||||||||||||||||
Summary of the Components of Inventories | The following table summarizes the components of inventories (in thousands): | ||||||||||||||||||
December 28, 2014 | June 29, 2014 | ||||||||||||||||||
Raw material | $98,177 | $95,594 | |||||||||||||||||
Work-in-progress | 114,378 | 92,889 | |||||||||||||||||
Finished goods | 119,993 | 96,297 | |||||||||||||||||
Inventories | $332,548 | $284,780 | |||||||||||||||||
Summary of the Components of Other Current Liabilities | The following table summarizes the components of other current liabilities (in thousands): | ||||||||||||||||||
December 28, 2014 | June 29, 2014 | ||||||||||||||||||
Accrued taxes | $18,148 | $19,835 | |||||||||||||||||
Accrued professional fees | 6,281 | 5,373 | |||||||||||||||||
Accrued warranty | 6,945 | 5,842 | |||||||||||||||||
Accrued other | 6,414 | 7,936 | |||||||||||||||||
Other current liabilities | $37,788 | $38,986 | |||||||||||||||||
Summary of the Components of Accumulated Other Comprehensive Income, Net of Taxes | The following table summarizes the components of accumulated other comprehensive income, net of taxes (in thousands): | ||||||||||||||||||
December 28, 2014 | June 29, 2014 | ||||||||||||||||||
Currency translation gain | $6,647 | $8,549 | |||||||||||||||||
Net unrealized gain on available-for-sale securities | 1,545 | 2,856 | |||||||||||||||||
Accumulated other comprehensive income, net of taxes | $8,192 | $11,405 | |||||||||||||||||
Summary of the Components of Non-operating Income, Net | The following table summarizes the components of non-operating income, net (in thousands): | ||||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
December 28, 2014 | December 29, 2013 | December 28, 2014 | December 29, 2013 | ||||||||||||||||
Foreign currency (loss) gain, net | ($2,365 | ) | $213 | ($2,596 | ) | $477 | |||||||||||||
Gain on sale of investments, net | 774 | — | 776 | 10 | |||||||||||||||
Gain on equity method investment | 679 | — | 679 | — | |||||||||||||||
Interest income, net | 2,586 | 2,806 | 5,618 | 5,147 | |||||||||||||||
Other, net | 54 | 384 | 155 | 587 | |||||||||||||||
Non-operating income, net | $1,728 | $3,403 | $4,632 | $6,221 | |||||||||||||||
Summary of the Amounts Reclassified Out of Accumulated Other Comprehensive Income | The following table summarizes the amounts reclassified out of accumulated other comprehensive income, net of taxes (in thousands): | ||||||||||||||||||
Accumulated Other Comprehensive Income Component | Amount Reclassified Out of Accumulated Other Comprehensive Income | Affected Line Item in the Consolidated Statements of Income | |||||||||||||||||
Three Months Ended | Six Months Ended | ||||||||||||||||||
December 28, 2014 | December 29, 2013 | December 28, 2014 | December 29, 2013 | ||||||||||||||||
Net unrealized gain on available-for-sale securities, net of taxes | $774 | $— | $776 | $10 | Non-operating income, net | ||||||||||||||
774 | — | 776 | 10 | Income before income taxes | |||||||||||||||
(15 | ) | — | 88 | 2 | Income tax (benefit) expense | ||||||||||||||
$789 | $— | $688 | $8 | Net income | |||||||||||||||
Investments_Tables
Investments (Tables) | 6 Months Ended | ||||||||||||||||||||||||
Dec. 28, 2014 | |||||||||||||||||||||||||
Investments, Debt and Equity Securities [Abstract] | |||||||||||||||||||||||||
Summary of Short-term Investments by Type | The following tables summarize short-term investments (in thousands): | ||||||||||||||||||||||||
December 28, 2014 | |||||||||||||||||||||||||
Amortized | Gross Unrealized | Gross | Estimated Fair | ||||||||||||||||||||||
Cost | Gains | Unrealized | Value | ||||||||||||||||||||||
Losses | |||||||||||||||||||||||||
Municipal bonds | $183,806 | $1,504 | ($154 | ) | $185,156 | ||||||||||||||||||||
Corporate bonds | 160,346 | 1,537 | (377 | ) | 161,506 | ||||||||||||||||||||
U.S. agency securities | — | — | — | — | |||||||||||||||||||||
Non-U.S. certificates of deposit | 283,303 | — | — | 283,303 | |||||||||||||||||||||
Non-U.S. government securities | — | — | — | — | |||||||||||||||||||||
Total short-term investments | $627,455 | $3,041 | ($531 | ) | $629,965 | ||||||||||||||||||||
June 29, 2014 | |||||||||||||||||||||||||
Amortized | Gross | Gross | Estimated Fair | ||||||||||||||||||||||
Cost | Unrealized | Unrealized | Value | ||||||||||||||||||||||
Gains | Losses | ||||||||||||||||||||||||
Municipal bonds | $291,869 | $2,323 | ($12 | ) | $294,180 | ||||||||||||||||||||
Corporate bonds | 200,177 | 2,283 | (114 | ) | 202,346 | ||||||||||||||||||||
U.S. agency securities | 18,994 | 141 | — | 19,135 | |||||||||||||||||||||
Non-U.S. certificates of deposit | 352,928 | — | — | 352,928 | |||||||||||||||||||||
Non-U.S. government securities | 7,025 | 28 | — | 7,053 | |||||||||||||||||||||
Total short-term investments | $870,993 | $4,775 | ($126 | ) | $875,642 | ||||||||||||||||||||
Summary of Gross Unrealized Losses and Estimated Fair Value of Short-term Investments, Aggregated by Investment Type and Length of Time | The following tables present the gross unrealized losses and estimated fair value of the Company's short-term investments, aggregated by investment type and the length of time that individual securities have been in a continuous unrealized loss position (in thousands, except numbers of securities): | ||||||||||||||||||||||||
December 28, 2014 | |||||||||||||||||||||||||
Less than 12 Months | Greater than 12 Months | Total | |||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||
Municipal bonds | $35,417 | ($154 | ) | $— | $— | $35,417 | ($154 | ) | |||||||||||||||||
Corporate bonds | 58,229 | (341 | ) | 2,212 | (36 | ) | 60,441 | (377 | ) | ||||||||||||||||
Total | $93,646 | ($495 | ) | $2,212 | ($36 | ) | $95,858 | ($531 | ) | ||||||||||||||||
Number of securities with an unrealized loss | 47 | 1 | 48 | ||||||||||||||||||||||
June 29, 2014 | |||||||||||||||||||||||||
Less than 12 Months | Greater than 12 Months | Total | |||||||||||||||||||||||
Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | Fair Value | Unrealized Loss | ||||||||||||||||||||
Municipal bonds | $7,906 | ($8 | ) | $1,520 | ($4 | ) | $9,426 | ($12 | ) | ||||||||||||||||
Corporate bonds | 15,696 | (31 | ) | 13,049 | (83 | ) | 28,745 | (114 | ) | ||||||||||||||||
Total | $23,602 | ($39 | ) | $14,569 | ($87 | ) | $38,171 | ($126 | ) | ||||||||||||||||
Number of securities with an unrealized loss | 13 | 7 | 20 | ||||||||||||||||||||||
Contractual Maturities of Short-term Investments by Type | The contractual maturities of short-term investments as of December 28, 2014 were as follows (in thousands): | ||||||||||||||||||||||||
Within One | After One, | After Five, | After Ten | Total | |||||||||||||||||||||
Year | Within Five | Within Ten | Years | ||||||||||||||||||||||
Years | Years | ||||||||||||||||||||||||
Municipal bonds | $23,593 | $127,148 | $34,415 | $— | $185,156 | ||||||||||||||||||||
Corporate bonds | 22,435 | 106,525 | 32,546 | — | 161,506 | ||||||||||||||||||||
Non-U.S. certificates of deposit | 283,303 | — | — | — | 283,303 | ||||||||||||||||||||
Total short-term investments | $329,331 | $233,673 | $66,961 | $— | $629,965 | ||||||||||||||||||||
Fair_Value_of_Financial_Instru1
Fair Value of Financial Instruments (Tables) | 6 Months Ended | |||||||||||||||||||||||||||||||
Dec. 28, 2014 | ||||||||||||||||||||||||||||||||
Fair Value Disclosures [Abstract] | ||||||||||||||||||||||||||||||||
Financial Instruments Carried at Fair Value | The following table sets forth financial instruments carried at fair value within the U.S. GAAP hierarchy (in thousands): | |||||||||||||||||||||||||||||||
December 28, 2014 | June 29, 2014 | |||||||||||||||||||||||||||||||
Level 1 | Level 2 | Level 3 | Total | Level 1 | Level 2 | Level 3 | Total | |||||||||||||||||||||||||
Assets: | ||||||||||||||||||||||||||||||||
Cash equivalents: | ||||||||||||||||||||||||||||||||
Non-U.S. certificates of deposit | $— | $156 | $— | $156 | $— | $— | $— | $— | ||||||||||||||||||||||||
Money market funds | 4,455 | — | — | 4,455 | 40,031 | — | — | 40,031 | ||||||||||||||||||||||||
Total cash equivalents | 4,455 | 156 | — | 4,611 | 40,031 | — | — | 40,031 | ||||||||||||||||||||||||
Short-term investments: | ||||||||||||||||||||||||||||||||
Municipal bonds | — | 185,156 | — | 185,156 | — | 294,180 | — | 294,180 | ||||||||||||||||||||||||
Corporate bonds | — | 161,506 | — | 161,506 | — | 202,346 | — | 202,346 | ||||||||||||||||||||||||
U.S. agency securities | — | — | — | — | — | 19,135 | — | 19,135 | ||||||||||||||||||||||||
Non-U.S. certificates of deposit | — | 283,303 | — | 283,303 | — | 352,928 | — | 352,928 | ||||||||||||||||||||||||
Non-U.S. government securities | — | — | — | — | — | 7,053 | — | 7,053 | ||||||||||||||||||||||||
Total short-term investments | — | 629,965 | — | 629,965 | — | 875,642 | — | 875,642 | ||||||||||||||||||||||||
Other long-term investments: | ||||||||||||||||||||||||||||||||
Common stock of non-U.S. corporations | — | 79,089 | — | 79,089 | — | — | — | — | ||||||||||||||||||||||||
Total other long-term investments | — | 79,089 | — | 79,089 | — | — | — | — | ||||||||||||||||||||||||
Total assets | $4,455 | $709,210 | $— | $713,665 | $40,031 | $875,642 | $— | $915,673 | ||||||||||||||||||||||||
Intangible_Assets_Tables
Intangible Assets (Tables) | 6 Months Ended | |||||||||||||||||||||||
Dec. 28, 2014 | ||||||||||||||||||||||||
Goodwill and Intangible Assets Disclosure [Abstract] | ||||||||||||||||||||||||
Components of intangible assets, net | The following table presents the components of intangible assets, net (in thousands): | |||||||||||||||||||||||
December 28, 2014 | June 29, 2014 | |||||||||||||||||||||||
Gross | Accumulated Amortization | Net | Gross | Accumulated Amortization | Net | |||||||||||||||||||
Intangible assets with finite lives: | ||||||||||||||||||||||||
Customer relationships | $137,440 | ($69,659 | ) | $67,781 | $137,440 | ($66,970 | ) | $70,470 | ||||||||||||||||
Developed technology | 162,760 | (82,242 | ) | 80,518 | 162,760 | (72,921 | ) | 89,839 | ||||||||||||||||
Non-compete agreements | 10,244 | (6,977 | ) | 3,267 | 10,244 | (5,997 | ) | 4,247 | ||||||||||||||||
Trade names, finite-lived | 520 | (520 | ) | — | 520 | (516 | ) | 4 | ||||||||||||||||
Patent and licensing rights | 143,342 | (46,863 | ) | 96,479 | 134,607 | (42,424 | ) | 92,183 | ||||||||||||||||
Total intangible assets with finite lives | 454,306 | (206,261 | ) | 248,045 | 445,571 | (188,828 | ) | 256,743 | ||||||||||||||||
Trade names, indefinite-lived | 79,680 | 79,680 | 79,680 | 79,680 | ||||||||||||||||||||
Total intangible assets | $533,986 | ($206,261 | ) | $327,725 | $525,251 | ($188,828 | ) | $336,423 | ||||||||||||||||
Schedule of future amortization expense of finite-lived intangible assets | Total future amortization expense of finite-lived intangible assets is estimated to be as follows (in thousands): | |||||||||||||||||||||||
Fiscal Year Ending | ||||||||||||||||||||||||
June 28, 2015 (remainder of fiscal 2015) | $17,562 | |||||||||||||||||||||||
June 26, 2016 | 34,921 | |||||||||||||||||||||||
June 25, 2017 | 32,910 | |||||||||||||||||||||||
June 24, 2018 | 31,718 | |||||||||||||||||||||||
June 30, 2019 | 19,150 | |||||||||||||||||||||||
Thereafter | 111,784 | |||||||||||||||||||||||
Total future amortization expense | $248,045 | |||||||||||||||||||||||
Earnings_Per_Share_Tables
Earnings Per Share (Tables) | 6 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Earnings Per Share [Abstract] | ||||||||||||||||
Basic Earnings Per Share Computation | The following table presents the computation of basic earnings per share (in thousands, except per share amounts): | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 28, | December 29, | December 28, | December 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income | $12,151 | $35,681 | $23,281 | $66,178 | ||||||||||||
Weighted average common shares | 115,264 | 120,932 | 117,435 | 120,248 | ||||||||||||
Basic earnings per share | $0.11 | $0.30 | $0.20 | $0.55 | ||||||||||||
Diluted Earnings Per Share Computation | The following computation reconciles the differences between the basic and diluted earnings per share presentations (in thousands, except per share amounts): | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 28, | December 29, | December 28, | December 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Net income | $12,151 | $35,681 | $23,281 | $66,178 | ||||||||||||
Weighted average common shares - basic | 115,264 | 120,932 | 117,435 | 120,248 | ||||||||||||
Dilutive effect of stock options, nonvested shares and Employee Stock Purchase Plan purchase rights | 581 | 2,272 | 1,164 | 2,573 | ||||||||||||
Weighted average common shares - diluted | 115,845 | 123,204 | 118,599 | 122,821 | ||||||||||||
Diluted earnings per share | $0.10 | $0.29 | $0.20 | $0.54 | ||||||||||||
StockBased_Compensation_Tables
Stock-Based Compensation (Tables) | 6 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Share-based Compensation [Abstract] | ||||||||||||||||
Summary of Outstanding Option Awards | The following table summarizes option activity as of December 28, 2014 and changes during the six months then ended (numbers of shares in thousands): | |||||||||||||||
Number of Shares | Weighted Average Exercise Price | |||||||||||||||
Outstanding at June 29, 2014 | 8,922 | $41.85 | ||||||||||||||
Granted | 3,294 | $44.93 | ||||||||||||||
Exercised | (477 | ) | $29.15 | |||||||||||||
Forfeited or expired | (362 | ) | $47.99 | |||||||||||||
Outstanding at December 28, 2014 | 11,377 | $43.08 | ||||||||||||||
Summary of Nonvested Shares of Restricted Stock Awards and Restricted Stock Unit Awards Outstanding | A summary of nonvested restricted stock awards (RSAs) and restricted stock unit awards (RSUs) outstanding as of December 28, 2014, and changes during the six months then ended is as follows (numbers of awards and units in thousands): | |||||||||||||||
Number of | Weighted Average | |||||||||||||||
RSAs/RSUs | Grant-Date Fair Value | |||||||||||||||
Nonvested at June 29, 2014 | 860 | $46.81 | ||||||||||||||
Granted | 433 | $44.94 | ||||||||||||||
Vested | (347 | ) | $46.15 | |||||||||||||
Forfeited | (38 | ) | $48.62 | |||||||||||||
Nonvested at December 28, 2014 | 908 | $46.09 | ||||||||||||||
Summary of Total Stock-Based Compensation Expense | Total stock-based compensation expense was as follows (in thousands): | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 28, | December 29, | December 28, | December 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Income Statement Classification: | ||||||||||||||||
Cost of revenue, net | $3,448 | $2,849 | $6,353 | $5,228 | ||||||||||||
Research and development | 4,112 | 3,829 | 8,583 | 7,541 | ||||||||||||
Sales, general and administrative | 8,876 | 8,994 | 18,260 | 17,481 | ||||||||||||
Total stock-based compensation expense | $16,436 | $15,672 | $33,196 | $30,250 | ||||||||||||
Commitments_and_Contingencies_
Commitments and Contingencies (Tables) | 6 Months Ended | |||
Dec. 28, 2014 | ||||
Commitments and Contingencies Disclosure [Abstract] | ||||
Summary of changes in product warranty liabilities | The following table summarizes the changes in the Company's product warranty liabilities (in thousands): | |||
Balance at June 29, 2014 | $6,822 | |||
Warranties accrued in current period | 4,086 | |||
Expenditures | (3,086 | ) | ||
Balance at December 28, 2014 | $7,822 | |||
Reportable_Segments_Tables
Reportable Segments (Tables) | 6 Months Ended | |||||||||||||||
Dec. 28, 2014 | ||||||||||||||||
Segment Reporting [Abstract] | ||||||||||||||||
Revenues, Gross Profit, Gross Margin, and Inventories by Segment | Revenue, gross profit and gross margin for each of the Company's segments were as follows (in thousands, except percentages): | |||||||||||||||
Three Months Ended | Six Months Ended | |||||||||||||||
December 28, | December 29, | December 28, | December 29, | |||||||||||||
2014 | 2013 | 2014 | 2013 | |||||||||||||
Revenue: | ||||||||||||||||
LED Products revenue | $151,877 | $215,022 | $325,467 | $433,045 | ||||||||||||
Lighting Products revenue | 230,168 | 173,656 | 453,254 | 321,574 | ||||||||||||
Power and RF Products revenue | 31,112 | 26,408 | 62,108 | 51,473 | ||||||||||||
Total revenue | $413,157 | $415,086 | $840,829 | $806,092 | ||||||||||||
Gross Profit and Gross Margin: | ||||||||||||||||
LED Products gross profit | $59,424 | $97,644 | $127,048 | $199,297 | ||||||||||||
LED Products gross margin | 39.1 | % | 45.4 | % | 39 | % | 46 | % | ||||||||
Lighting Products gross profit | 64,701 | 48,426 | 120,293 | 88,244 | ||||||||||||
Lighting Products gross margin | 28.1 | % | 27.9 | % | 26.5 | % | 27.4 | % | ||||||||
Power and RF Products gross profit | 17,260 | 15,321 | 35,117 | 28,777 | ||||||||||||
Power and RF Products gross margin | 55.5 | % | 58 | % | 56.5 | % | 55.9 | % | ||||||||
Total segment gross profit | 141,385 | 161,391 | 282,458 | 316,318 | ||||||||||||
Unallocated costs | (4,606 | ) | (5,613 | ) | (9,859 | ) | (9,783 | ) | ||||||||
Consolidated gross profit | $136,779 | $155,778 | $272,599 | $306,535 | ||||||||||||
Consolidated gross margin | 33.1 | % | 37.5 | % | 32.4 | % | 38 | % | ||||||||
Inventories for each of the Company's segments are as follows (in thousands): | ||||||||||||||||
December 28, | June 29, | |||||||||||||||
2014 | 2014 | |||||||||||||||
LED Products | $ | 135,456 | $ | 123,249 | ||||||||||||
Lighting Products | 181,848 | 148,757 | ||||||||||||||
Power and RF Products | 10,190 | 8,019 | ||||||||||||||
Total segment inventories | 327,494 | 280,025 | ||||||||||||||
Unallocated inventories | 5,054 | 4,755 | ||||||||||||||
Consolidated inventories | $ | 332,548 | $ | 284,780 | ||||||||||||
Basis_of_Presentation_Narrativ
Basis of Presentation Narrative (Details) | 3 Months Ended |
Dec. 28, 2014 | |
reportable_segments | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | 3 |
Financial_Statement_Details_Su
Financial Statement Details (Summary of the Components of Accounts Receivable, Net) (Details) (USD $) | Dec. 28, 2014 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Accounts Receivable, Net, Current [Abstract] | ||
Accounts receivable, gross | $258,481 | $256,931 |
Allowance for bad debts | -3,652 | -2,761 |
Accounts receivable, net | 218,960 | 225,160 |
Allowance for sales returns, discounts and other incentives [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Allowance for sales returns, discounts and other incentives | -35,869 | -29,010 |
Billed trade receivables [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Accounts receivable, gross | 256,350 | 255,374 |
Unbilled contract receivables [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Accounts receivable, gross | $2,131 | $1,557 |
Financial_Statement_Details_Su1
Financial Statement Details (Summary of the Components of Inventories) (Details) (USD $) | Dec. 28, 2014 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Inventory, Net [Abstract] | ||
Raw material | $98,177 | $95,594 |
Work-in-progress | 114,378 | 92,889 |
Finished goods | 119,993 | 96,297 |
Inventories | $332,548 | $284,780 |
Financial_Statement_Details_Su2
Financial Statement Details (Summary of the Components of Other Current Liabilities) (Details) (USD $) | Dec. 28, 2014 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Accrued Liabilities, Current [Abstract] | ||
Accrued taxes | $18,148 | $19,835 |
Accrued professional fees | 6,281 | 5,373 |
Accrued warranty | 6,945 | 5,842 |
Accrued other | 6,414 | 7,936 |
Other current liabilities | $37,788 | $38,986 |
Financial_Statement_Details_Su3
Financial Statement Details (Summary of the Components of Accumulated Other Comprehensive Income, Net of Taxes) (Details) (USD $) | Dec. 28, 2014 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Financial Statement Details [Abstract] | ||
Currency translation gain | $6,647 | $8,549 |
Net unrealized gain on available-for-sale securities | 1,545 | 2,856 |
Accumulated other comprehensive income, net of taxes | $8,192 | $11,405 |
Financial_Statement_Details_Su4
Financial Statement Details (Summary of the Components of Non-operating Income, Net) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 |
Other Income and Expenses [Abstract] | ||||
Foreign currency (loss) gain, net | ($2,365) | $213 | ($2,596) | $477 |
Gain on sale of investments, net | 774 | 0 | 776 | 10 |
Gain on equity method investment | 679 | 0 | 679 | 0 |
Interest income, net | 2,586 | 2,806 | 5,618 | 5,147 |
Other, net | 54 | 384 | 155 | 587 |
Non-operating income, net | $1,728 | $3,403 | $4,632 | $6,221 |
Financial_Statement_Details_Su5
Financial Statement Details (Summary of the Amounts Reclassified Out of Accumulated Other Comprehensive Income) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 |
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Non-operating income, net | $1,728 | $3,403 | $4,632 | $6,221 |
Income before income taxes | 11,913 | 38,786 | 26,274 | 78,396 |
Income tax (benefit) expense | -238 | 3,105 | 2,993 | 12,218 |
Net income | 12,151 | 35,681 | 23,281 | 66,178 |
Reclassification out of Accumulated Other Comprehensive Income [Member] | Accumulated Net Unrealized Investment Gain (Loss) [Member] | ||||
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Non-operating income, net | 774 | 0 | 776 | 10 |
Income before income taxes | 774 | 0 | 776 | 10 |
Income tax (benefit) expense | -15 | 0 | 88 | 2 |
Net income | $789 | $0 | $688 | $8 |
Investments_Investments_Narrat
Investments Investments (Narrative) (Details) | Dec. 28, 2014 |
Investments, Debt and Equity Securities [Abstract] | |
Equity Method Investment, Ownership Percentage | 13.00% |
Investments_Summary_of_Shortte
Investments (Summary of Short-term Investments by Type) (Details) (USD $) | Dec. 28, 2014 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $627,455 | $870,993 |
Gross Unrealized Gains | 3,041 | 4,775 |
Gross Unrealized Losses | -531 | -126 |
Estimated Fair Value | 629,965 | 875,642 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 183,806 | 291,869 |
Gross Unrealized Gains | 1,504 | 2,323 |
Gross Unrealized Losses | -154 | -12 |
Estimated Fair Value | 185,156 | 294,180 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 160,346 | 200,177 |
Gross Unrealized Gains | 1,537 | 2,283 |
Gross Unrealized Losses | -377 | -114 |
Estimated Fair Value | 161,506 | 202,346 |
U.S. Agency Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 18,994 |
Gross Unrealized Gains | 0 | 141 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 0 | 19,135 |
Non-U.S. Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 283,303 | 352,928 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 283,303 | 352,928 |
Non-U.S. Government Securities [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 0 | 7,025 |
Gross Unrealized Gains | 0 | 28 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $0 | $7,053 |
Investments_Summary_of_Gross_U
Investments (Summary of Gross Unrealized Losses and Estimated Fair Value of Short-term Investments, Aggregated by Investment Type and Length of Time) (Details) (USD $) | Dec. 28, 2014 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | $93,646 | $23,602 |
Unrealized Loss, Less than 12 Months | -495 | -39 |
Fair Value, Greater than 12 Months | 2,212 | 14,569 |
Unrealized Loss, Greater than 12 Months | -36 | -87 |
Fair Value, Total | 95,858 | 38,171 |
Unrealized Loss, Total | -531 | -126 |
Number of Securities with an Unrealized Loss, Less than 12 Months | 47 | 13 |
Number of Securities with an Unrealized Loss, Greater than 12 Months | 1 | 7 |
Number of Securities with an Unrealized Loss, Total | 48 | 20 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | 35,417 | 7,906 |
Unrealized Loss, Less than 12 Months | -154 | -8 |
Fair Value, Greater than 12 Months | 0 | 1,520 |
Unrealized Loss, Greater than 12 Months | 0 | -4 |
Fair Value, Total | 35,417 | 9,426 |
Unrealized Loss, Total | -154 | -12 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | 58,229 | 15,696 |
Unrealized Loss, Less than 12 Months | -341 | -31 |
Fair Value, Greater than 12 Months | 2,212 | 13,049 |
Unrealized Loss, Greater than 12 Months | -36 | -83 |
Fair Value, Total | 60,441 | 28,745 |
Unrealized Loss, Total | ($377) | ($114) |
Investments_Contractual_Maturi
Investments (Contractual Maturities of Short-term Investments by Type) (Details) (USD $) | Dec. 28, 2014 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | $329,331 | |
After One, Within Five Years | 233,673 | |
After Five, Within Ten Years | 66,961 | |
After Ten Years | 0 | |
Total | 629,965 | 875,642 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | 23,593 | |
After One, Within Five Years | 127,148 | |
After Five, Within Ten Years | 34,415 | |
After Ten Years | 0 | |
Total | 185,156 | |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | 22,435 | |
After One, Within Five Years | 106,525 | |
After Five, Within Ten Years | 32,546 | |
After Ten Years | 0 | |
Total | 161,506 | |
Non-U.S. Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | 283,303 | |
After One, Within Five Years | 0 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | $283,303 |
Fair_Value_of_Financial_Instru2
Fair Value of Financial Instruments (Financial Instruments Carried at Fair Value) (Details) (USD $) | Dec. 28, 2014 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Fair value transfers level 1 to level 2 | $0 | |
Fair value transfers, level 2 to level 1 | 0 | |
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 629,965 | 875,642 |
Other long-term investments | 79,089 | 0 |
Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 4,611 | 40,031 |
Short-term investments | 629,965 | 875,642 |
Other long-term investments | 79,089 | 0 |
Total assets | 713,665 | 915,673 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 4,455 | 40,031 |
Short-term investments | 0 | 0 |
Other long-term investments | 0 | 0 |
Total assets | 4,455 | 40,031 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 156 | 0 |
Short-term investments | 629,965 | 875,642 |
Other long-term investments | 79,089 | 0 |
Total assets | 709,210 | 875,642 |
Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 0 | 0 |
Short-term investments | 0 | 0 |
Other long-term investments | 0 | 0 |
Total assets | 0 | 0 |
Municipal Bonds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 185,156 | 294,180 |
Municipal Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 185,156 | 294,180 |
Municipal Bonds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 0 |
Municipal Bonds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 185,156 | 294,180 |
Municipal Bonds [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 0 |
Corporate Bonds [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 161,506 | 202,346 |
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 161,506 | 202,346 |
Corporate Bonds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 0 |
Corporate Bonds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 161,506 | 202,346 |
Corporate Bonds [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 0 |
U.S. Agency Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 19,135 |
U.S. Agency Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 19,135 |
U.S. Agency Securities [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 0 |
U.S. Agency Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 19,135 |
U.S. Agency Securities [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 0 |
Non-U.S. Certificates of Deposit [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 283,303 | 352,928 |
Non-U.S. Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 283,303 | 352,928 |
Non-U.S. Certificates of Deposit [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 0 |
Non-U.S. Certificates of Deposit [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 283,303 | 352,928 |
Non-U.S. Certificates of Deposit [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 0 |
Non-U.S. Government Securities [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 7,053 |
Non-U.S. Government Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 7,053 |
Non-U.S. Government Securities [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 0 |
Non-U.S. Government Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 7,053 |
Non-U.S. Government Securities [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 0 |
Common stock of non-U.S. corporations [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other long-term investments | 79,089 | 0 |
Common stock of non-U.S. corporations [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other long-term investments | 0 | 0 |
Common stock of non-U.S. corporations [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other long-term investments | 79,089 | 0 |
Common stock of non-U.S. corporations [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Other long-term investments | 0 | 0 |
Non-U.S. Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 156 | 0 |
Non-U.S. Certificates of Deposit [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 0 | 0 |
Non-U.S. Certificates of Deposit [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 156 | 0 |
Non-U.S. Certificates of Deposit [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 0 | 0 |
Money Market Funds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 4,455 | 40,031 |
Money Market Funds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 4,455 | 40,031 |
Money Market Funds [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 0 | 0 |
Money Market Funds [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | $0 | $0 |
Intangible_Assets_Components_o
Intangible Assets (Components of intangible assets, net) (Details) (USD $) | Dec. 28, 2014 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $454,306 | $445,571 |
Finite-lived intangible assets, accumulated amortization | -206,261 | -188,828 |
Finite-lived intangible assets, net | 248,045 | 256,743 |
Trade names, indefinite-lived | 79,680 | 79,680 |
Intangible Assets, Gross (Excluding Goodwill) | 533,986 | 525,251 |
Intangible assets, net | 327,725 | 336,423 |
Customer Relationships [Member] | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 137,440 | 137,440 |
Finite-lived intangible assets, accumulated amortization | -69,659 | -66,970 |
Finite-lived intangible assets, net | 67,781 | 70,470 |
Developed Technology [Member] | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 162,760 | 162,760 |
Finite-lived intangible assets, accumulated amortization | -82,242 | -72,921 |
Finite-lived intangible assets, net | 80,518 | 89,839 |
Non-compete Agreements [Member] | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 10,244 | 10,244 |
Finite-lived intangible assets, accumulated amortization | -6,977 | -5,997 |
Finite-lived intangible assets, net | 3,267 | 4,247 |
Trade Names, finite-lived [Member] | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 520 | 520 |
Finite-lived intangible assets, accumulated amortization | -520 | -516 |
Finite-lived intangible assets, net | 0 | 4 |
Patent and Licensing Rights [Member] | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 143,342 | 134,607 |
Finite-lived intangible assets, accumulated amortization | -46,863 | -42,424 |
Finite-lived intangible assets, net | $96,479 | $92,183 |
Intangible_Assets_Intangible_A
Intangible Assets Intangible Assets (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Amortization of Intangible Assets | $9 | $9.40 | $17.90 | $18.80 |
Intangible_Assets_Intangible_A1
Intangible Assets Intangible Assets (Schedule of future amortization expense of finite-lived intangible assets) (Details) (USD $) | Dec. 28, 2014 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Goodwill and Intangible Assets Disclosure [Abstract] | ||
June 28, 2015 (remainder of fiscal 2015) | $17,562 | |
26-Jun-16 | 34,921 | |
25-Jun-17 | 32,910 | |
24-Jun-18 | 31,718 | |
30-Jun-19 | 19,150 | |
Thereafter | 111,784 | |
Finite-lived intangible assets, net | $248,045 | $256,743 |
Longterm_Debt_Details
Long-term Debt (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
Dec. 28, 2014 | Dec. 28, 2014 | Jun. 29, 2014 | Jan. 09, 2015 | |
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $150,000,000 | $150,000,000 | ||
Long-term debt | 150,000,000 | 150,000,000 | 0 | |
Line of Credit Facility, Remaining Borrowing Capacity | 0 | 0 | ||
Long-term Debt, Average Interest Rate | 0.86% | 0.86% | ||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.08% | 0.08% | ||
New Credit Agreement [Member] | ||||
Line of Credit Facility [Line Items] | ||||
Line of Credit Facility, Maximum Borrowing Capacity | $500,000,000 |
Shareholders_Equity_Narrative_
Shareholders' Equity (Narrative) (Details) (June 28, 2015 Expiration [Member], Common Stock [Member], USD $) | 6 Months Ended |
In Millions, unless otherwise specified | Dec. 28, 2014 |
June 28, 2015 Expiration [Member] | Common Stock [Member] | |
Class of Stock [Line Items] | |
Stock Repurchase Program, Authorized Amount | $550 |
Repurchased share number | 9.3 |
Repurchased share value | $320.30 |
Earnings_Per_Share_Basic_Earni
Earnings Per Share (Basic Earnings Per Share Computation) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 |
Earnings Per Share, Basic [Abstract] | ||||
Net income | $12,151 | $35,681 | $23,281 | $66,178 |
Weighted average common shares - basic | 115,264 | 120,932 | 117,435 | 120,248 |
Basic earnings per share | $0.11 | $0.30 | $0.20 | $0.55 |
Earnings_Per_Share_Diluted_Ear
Earnings Per Share (Diluted Earnings Per Share Computation) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 |
Earnings Per Share, Diluted [Abstract] | ||||
Net income | $12,151 | $35,681 | $23,281 | $66,178 |
Weighted average common shares - basic | 115,264 | 120,932 | 117,435 | 120,248 |
Dilutive effect of stock options, nonvested shares and Employee Stock Purchase Plan purchase rights | 581 | 2,272 | 1,164 | 2,573 |
Weighted average common shares - diluted | 115,845 | 123,204 | 118,599 | 122,821 |
Diluted earnings per share | $0.10 | $0.29 | $0.20 | $0.54 |
Earnings_Per_Share_Narrative_D
Earnings Per Share (Narrative) (Details) (Common Stock [Member]) | 3 Months Ended | 6 Months Ended | ||
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 |
Common Stock [Member] | ||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||
Anti-dilutive potential common shares excluded from diluted earnings per share calculation | 8.6 | 3.1 | 6.5 | 2.1 |
StockBased_Compensation_Narrat
Stock-Based Compensation (Narrative) (Details) | 6 Months Ended |
Dec. 28, 2014 | |
plans | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Number of equity-based compensation plans | 1 |
Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Maximum contribution of employee's compensation, percentage | 15.00% |
Number of opportunities to purchase common stock at discount, per year | 2 |
Employee Stock Purchase Plan Prior to Second Quarter Fiscal 2012 Amendment [Member] | Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee stock plan purchase discount at purchase date | 15.00% |
Employee Stock Purchase Plan After Second Quarter Fiscal 2012 Amendment [Member] | Employee Stock Purchase Plan [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Employee stock plan purchase discount at beginning of participation period or purchase date | 15.00% |
StockBased_Compensation_Summar
Stock-Based Compensation (Summary of Outstanding Option Awards) (Details) (Stock Option [Member], USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 |
Stock Option [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding number of shares at beginning of period | 8,922 |
Granted, number of shares | 3,294 |
Exercised, number of shares | -477 |
Forfeited or expired, number of shares | -362 |
Outstanding number of shares at end of period | 11,377 |
Outstanding weighted-average exercise price at beginning of period | $41.85 |
Granted, weighted-average exercise price | $44.93 |
Exercised, weighted-average exercise price | $29.15 |
Forfeited or expired, weighted-average exercise price | $47.99 |
Outstanding weighted-average exercised price at end of period | $43.08 |
StockBased_Compensation_Summar1
Stock-Based Compensation (Summary of Nonvested Shares of Restricted Stock and Stock Unit Awards Outstanding) (Details) (Restricted Stock Awards And Restricted Stock Units [Member], USD $) | 6 Months Ended |
In Thousands, except Per Share data, unless otherwise specified | Dec. 28, 2014 |
Restricted Stock Awards And Restricted Stock Units [Member] | |
Share-based Compensation Arrangement by Share-based Payment Award, Equity Instruments Other than Options, Nonvested, Number of Shares [Roll Forward] | |
Nonvested, Number of RSAs/RSUs at beginning of period | 860 |
Granted, Number of RSAs/RSUs | 433 |
Vested, number of RSAs/RSUs | -347 |
Forfeited, number of RSAs/RSUs | -38 |
Nonvested, Number of RSAs/RSUs at end of period | 908 |
Nonvested, weighted-average grant-date fair value at beginning of period | $46.81 |
Granted, weighted-average grant-date fair value | $44.94 |
Vested, weighted-average grant-date fair value | $46.15 |
Forfeited, weighted-average grant-date fair value | $48.62 |
Nonvested, weighted-average grant-date fair value at end of period | $46.09 |
StockBased_Compensation_Total_
Stock-Based Compensation (Total Stock-Based Compensation Expense) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $16,436 | $15,672 | $33,196 | $30,250 |
Cost of revenue, net [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 3,448 | 2,849 | 6,353 | 5,228 |
Research and development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 4,112 | 3,829 | 8,583 | 7,541 |
Selling, general and administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $8,876 | $8,994 | $18,260 | $17,481 |
Income_Taxes_Narrative_Details
Income Taxes (Narrative) (Details) (USD $) | 3 Months Ended | 6 Months Ended | |
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 28, 2014 | Jun. 29, 2014 |
Income Tax Disclosure [Abstract] | |||
U.S. statutory tax rate | 35.00% | ||
Income Tax Benefit, Research and Development, Amount | $1.90 | ||
Unrecognized tax benefits balance | 18.2 | 18.2 | 18.4 |
Unrecognized Tax Benefits, Period Increase (Decrease) | 0.2 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $18.20 | $18.20 |
Commitments_and_Contingencies_1
Commitments and Contingencies (Warranties) (Details) (USD $) | 6 Months Ended |
Dec. 28, 2014 | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |
Warranty accrual, beginning balance | $6,822,000 |
Warranties accrued in current period | 4,086,000 |
Expenditures | -3,086,000 |
Warranty accrual, ending balance | 7,822,000 |
Product Warranty Liability, Long-Term | $900,000 |
Minimum [Member] | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |
Product Warranty, Range Period | 90 days |
Maximum [Member] | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |
Product Warranty, Range Period | 10 years |
Reportable_Segments_Revenues_G
Reportable Segments (Revenues, Gross Profit and Gross Margin, by Segment) (Details) (USD $) | 3 Months Ended | 6 Months Ended | ||
In Thousands, unless otherwise specified | Dec. 28, 2014 | Dec. 29, 2013 | Dec. 28, 2014 | Dec. 29, 2013 |
Segment Reporting Information [Line Items] | ||||
Revenue, net | $413,157 | $415,086 | $840,829 | $806,092 |
Gross profit | 136,779 | 155,778 | 272,599 | 306,535 |
Gross Margin | 33.10% | 37.50% | 32.40% | 38.00% |
LED Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 151,877 | 215,022 | 325,467 | 433,045 |
Gross profit | 59,424 | 97,644 | 127,048 | 199,297 |
Gross Margin | 39.10% | 45.40% | 39.00% | 46.00% |
Lighting Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 230,168 | 173,656 | 453,254 | 321,574 |
Gross profit | 64,701 | 48,426 | 120,293 | 88,244 |
Gross Margin | 28.10% | 27.90% | 26.50% | 27.40% |
Power and RF Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | 31,112 | 26,408 | 62,108 | 51,473 |
Gross profit | 17,260 | 15,321 | 35,117 | 28,777 |
Gross Margin | 55.50% | 58.00% | 56.50% | 55.90% |
Total segment gross profit [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | 141,385 | 161,391 | 282,458 | 316,318 |
Unallocated Costs [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | ($4,606) | ($5,613) | ($9,859) | ($9,783) |
Reportable_Segments_Schedule_o
Reportable Segments Schedule of Inventory by Reportable Segment (Details) (USD $) | Dec. 28, 2014 | Jun. 29, 2014 |
In Thousands, unless otherwise specified | ||
Segment Reporting Information [Line Items] | ||
Inventories | $332,548 | $284,780 |
LED Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | 135,456 | 123,249 |
Lighting Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | 181,848 | 148,757 |
Power and RF Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | 10,190 | 8,019 |
Total segment inventories [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | 327,494 | 280,025 |
Unallocated inventories [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | $5,054 | $4,755 |
Subsequent_Event_Subsequent_Ev1
Subsequent Event Subsequent Event (Details) (USD $) | 3 Months Ended | 6 Months Ended | 0 Months Ended |
In Millions, unless otherwise specified | Dec. 28, 2014 | Dec. 28, 2014 | Jan. 09, 2015 |
Subsequent Event [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $150 | $150 | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.08% | 0.08% | |
New Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $500 | ||
Percent of equity interests in first-tier foreign subsidiaries used as collateral | 65.00% | ||
Default interest rate spread | 2.00% | ||
Numerator of ratio of consolidated funding indebtedness to EBITDA | 3 | ||
Denominator of ratio of consolidated funding indebtedness to EBITDA | 1 | ||
Numerator of ratio of consolidated EBITDA to interest expense | 3 | ||
Denominator of ratio of consolidated EBITDA to interest expense | 1 | ||
Minimum [Member] | New Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.09% | ||
Maximum [Member] | New Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.20% | ||
Federal Funds Effective Swap Rate [Member] | New Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Incremental basis points in base rate calculation | 0.50% | ||
Base Rate [Member] | Minimum [Member] | New Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.00% | ||
Base Rate [Member] | Maximum [Member] | New Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.50% | ||
London Interbank Offered Rate (LIBOR) [Member] | New Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Incremental basis points in base rate calculation | 1.00% | ||
London Interbank Offered Rate (LIBOR) [Member] | Minimum [Member] | New Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 0.80% | ||
London Interbank Offered Rate (LIBOR) [Member] | Maximum [Member] | New Credit Agreement [Member] | |||
Subsequent Event [Line Items] | |||
Debt Instrument, Basis Spread on Variable Rate | 1.50% |