Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Dec. 27, 2015 | Jan. 13, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CREE INC | |
Entity Central Index Key | 895,419 | |
Current Fiscal Year End Date | --06-26 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Dec. 27, 2015 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 100,931,165 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Current assets: | ||
Cash and cash equivalents | $ 90,586 | $ 139,710 |
Short-term investments | 526,567 | 573,481 |
Total cash, cash equivalents and short-term investments | 617,153 | 713,191 |
Accounts receivable, net | 183,053 | 186,157 |
Income tax receivable | 8,926 | 0 |
Inventories | 280,810 | 280,576 |
Deferred income taxes | 0 | 39,190 |
Prepaid expenses | 23,763 | 29,932 |
Other current assets | 55,829 | 54,851 |
Assets held for sale | 5,640 | 4,353 |
Total current assets | 1,175,174 | 1,308,250 |
Property and equipment, net | 623,349 | 635,072 |
Goodwill | 618,828 | 616,345 |
Intangible assets, net | 323,666 | 317,154 |
Other long-term investments | 41,873 | 57,595 |
Deferred income taxes | 27,607 | 8,893 |
Other assets | 10,161 | 11,091 |
Total assets | 2,820,658 | 2,954,400 |
Current liabilities: | ||
Accounts payable, trade | 139,678 | 163,128 |
Accrued salaries and wages | 52,952 | 45,415 |
Income taxes payable | 0 | 2,035 |
Other current liabilities | 43,009 | 44,208 |
Total current liabilities | 235,639 | 254,786 |
Long-term liabilities: | ||
Long-term debt | 205,000 | 200,000 |
Deferred income taxes | 1,255 | 12,174 |
Other long-term liabilities | 18,241 | 21,084 |
Total long-term liabilities | $ 224,496 | $ 233,258 |
Commitments and contingencies (Note 12) | ||
Shareholders' equity: | ||
Preferred stock, par value $0.01; 3,000 shares authorized at December 27, 2015 and June 28, 2015; none issued and outstanding | $ 0 | $ 0 |
Common stock, par value $0.00125; 200,000 shares authorized at December 27, 2015 and June 28, 2015; 100,929 and 105,507 shares issued and outstanding at December 27, 2015 and June 28, 2015, respectively | 125 | 131 |
Additional paid-in-capital | 2,321,310 | 2,285,554 |
Accumulated other comprehensive income, net of taxes | 5,621 | 5,798 |
Retained earnings | 33,467 | 174,873 |
Total shareholders’ equity | 2,360,523 | 2,466,356 |
Total liabilities and shareholders’ equity | $ 2,820,658 | $ 2,954,400 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidation Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
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 | $ 0.00125 | $ 0.00125 |
Common stock, shares authorized | 200,000 | 200,000 |
Common stock, shares issued | 100,929 | 105,507 |
Common stock, shares outstanding | 100,929 | 105,507 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Income Statement [Abstract] | ||||
Revenue, net | $ 435,806 | $ 413,157 | $ 861,295 | $ 840,829 |
Cost of revenue, net | 300,655 | 276,378 | 594,396 | 568,230 |
Gross profit | 135,151 | 136,779 | 266,899 | 272,599 |
Operating expenses: | ||||
Research and development | 41,952 | 46,989 | 85,492 | 93,714 |
Sales, general and administrative | 74,691 | 72,375 | 149,954 | 142,067 |
Amortization or impairment of acquisition-related intangibles | 7,062 | 6,495 | 14,124 | 12,994 |
Loss on disposal or impairment of long-lived assets | 2,014 | 735 | 16,587 | 2,182 |
Total operating expenses | 125,719 | 126,594 | 266,157 | 250,957 |
Operating income | 9,432 | 10,185 | 742 | 21,642 |
Non-operating income (loss), net | 8,015 | 1,728 | (14,791) | 4,632 |
Income (loss) before income taxes | 17,447 | 11,913 | (14,049) | 26,274 |
Income tax expense (benefit) | 3,489 | (238) | (4,384) | 2,993 |
Net income (loss) | $ 13,958 | $ 12,151 | $ (9,665) | $ 23,281 |
Earnings (loss) per share: | ||||
Basic | $ 0.14 | $ 0.11 | $ (0.09) | $ 0.20 |
Diluted | $ 0.14 | $ 0.10 | $ (0.09) | $ 0.20 |
Weighted average shares used in per share calculation: | ||||
Basic | 102,391 | 115,264 | 102,932 | 117,435 |
Diluted | 102,521 | 115,845 | 102,932 | 118,599 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income (loss) | $ 13,958 | $ 12,151 | $ (9,665) | $ 23,281 |
Currency translation loss | (430) | (735) | (789) | (1,902) |
Net unrealized (loss) gain on available-for-sale securities, net of tax benefit (expense) of $113, $489, ($376) and $827, respectively | (180) | (800) | 612 | (1,311) |
Other comprehensive loss | (610) | (1,535) | (177) | (3,213) |
Comprehensive income (loss) | $ 13,348 | $ 10,616 | $ (9,842) | $ 20,068 |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Statement of Comprehensive Income [Abstract] | ||||
Tax benefit (expense) on net unrealized (loss) gain on available-for-sale securities | $ 113 | $ 489 | $ (376) | $ 827 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 27, 2015 | Dec. 28, 2014 | |
Cash flows from operating activities: | ||
Net income (loss) | $ (9,665) | $ 23,281 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 81,380 | 87,143 |
Stock-based compensation | 29,462 | 33,196 |
Excess tax benefit from stock-based payment arrangements | (12) | (1,651) |
Loss on disposal or impairment of long-lived assets | 16,587 | 2,182 |
Amortization of premium/discount on investments | 2,747 | 3,537 |
Loss (gain) on equity method investment | 12,922 | (679) |
Foreign exchange loss on equity method investment | 2,800 | 2,156 |
Deferred income taxes | 180 | 0 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | 3,885 | 5,571 |
Inventories | (514) | (47,702) |
Prepaid expenses and other assets | 11,426 | (5,457) |
Accounts payable, trade | (8,434) | (44,784) |
Accrued salaries and wages and other liabilities | (18,968) | (28,741) |
Net cash provided by operating activities | 123,796 | 28,052 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (81,804) | (113,375) |
Purchases of patent and licensing rights | (7,628) | (9,604) |
Proceeds from sale of property and equipment | 2,376 | 60 |
Purchases of short-term investments | (169,197) | (195,892) |
Proceeds from maturities of short-term investments | 194,406 | 240,463 |
Proceeds from sale of short-term investments | 19,352 | 192,153 |
Purchase of other long-term investments | 0 | 80,566 |
Purchase of acquired business, net of cash acquired | (12,513) | 0 |
Net cash (used in) provided by investing activities | (55,008) | 33,239 |
Cash flows from financing activities: | ||
Proceeds from long-term debt borrowings | 368,000 | 265,000 |
Payments on long-term debt borrowings | (363,000) | (115,000) |
Net proceeds from issuance of common stock | 9,939 | 21,089 |
Excess tax benefit from stock-based payment arrangements | 12 | 1,651 |
Repurchases of common stock | (131,749) | (320,349) |
Net cash used in financing activities | (116,798) | (147,609) |
Effects of foreign exchange changes on cash and cash equivalents | (1,114) | (546) |
Net decrease in cash and cash equivalents | (49,124) | (86,864) |
Cash and cash equivalents: | ||
Beginning of period | 139,710 | 286,824 |
End of period | 90,586 | 199,960 |
Accrued property and equipment | $ 7,681 | $ 20,204 |
Basis of Presentation and New A
Basis of Presentation and New Accounting Standards | 6 Months Ended |
Dec. 27, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation and New Accounting Standards | 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 wide bandgap 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 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. 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. In addition, the Company develops, manufactures and sells power and RF devices based on wide bandgap semiconductor materials such as SiC and gallium nitride (GaN). As previously announced, the Company has filed a confidential registration statement for an initial public offering to take this business public under the name Wolfspeed, Inc. 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 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 products and 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: • Lighting Products • LED Products • Power and RF Products For financial results by reportable segment, please refer to Note 13, "Reportable Segments." Basis of Presentation The consolidated balance sheet at December 27, 2015 , the consolidated statements of income (loss) for the three and six months ended December 27, 2015 and December 28, 2014 , the consolidated statements of comprehensive income (loss) for the three and six months ended December 27, 2015 and December 28, 2014 , and the consolidated statements of cash flows for the six months ended December 27, 2015 and December 28, 2014 (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 fairly state the consolidated financial position, results of operations and cash flows at December 27, 2015 , and for all periods presented, have been made. All intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 28, 2015 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 28, 2015 (fiscal 2015 ). The results of operations for the three and six months ended December 27, 2015 are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 26, 2016 (fiscal 2016 ). 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 2015 amounts in the accompanying consolidated financial statements have been reclassified to conform to the fiscal 2016 presentation. These reclassifications had no effect on previously reported consolidated net income or shareholders’ equity. Recently Issued Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (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 30, 2019, using one of two retrospective application methods. The Company is currently analyzing the impact of this new accounting guidance. Income Taxes In November 2015, the FASB issued ASU No. 2015-17: Income Taxes (Topic 740). The ASU requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU simplifies the current guidance, which requires entities to separately present deferred tax assets and deferred tax liabilities as current or noncurrent in a classified balance sheet. The ASU is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early application of the ASU is permitted as of the beginning of an interim or annual reporting period and may be applied either prospectively or retrospectively to all periods presented. The Company has adopted the provisions of this ASU prospectively for the interim period ended December 27, 2015 and therefore, prior periods were not retrospectively adjusted. The Company’s adoption of the new accounting guidance did not have a significant impact on its consolidated financial statements. |
Acquisition
Acquisition | 6 Months Ended |
Dec. 27, 2015 | |
Business Combinations [Abstract] | |
Business Combination Disclosure [Text Block] | Acquisition On July 8, 2015, the Company closed on the acquisition of Arkansas Power Electronics International, Inc. (APEI), a global leader in power modules and power electronics applications, pursuant to a merger agreement with APEI and certain shareholders of APEI, whereby the Company acquired all of the outstanding share capital of APEI in exchange for a base purchase price of $13.8 million , subject to certain adjustments. In addition, if certain goals are achieved over the next two years, additional cash payments totaling up to $4.6 million may be made to the former APEI shareholders. In connection with this acquisition, APEI became a wholly owned subsidiary of the Company, renamed Cree Fayetteville, Inc. (Cree Fayetteville). Cree Fayetteville will not be considered a significant subsidiary of the Company and its results from operations will be reported as part of the Company's Power and RF Products segment. The total estimated purchase price for this acquisition is as follows (in thousands): Cash consideration paid to shareholders $13,797 Post-closing adjustments 181 Contingent consideration 4,625 Total purchase price $18,603 The purchase price for this acquisition has been allocated to the assets acquired and liabilities assumed based on their estimated fair values as follows (in thousands): Tangible assets: Cash and cash equivalents $1,284 Accounts receivable 1,006 Inventories 143 Property and equipment 935 Other assets 270 Total tangible assets 3,638 Intangible assets: Patents 40 Customer relationships 4,500 Developed technology 11,403 In-process research and development 7,565 Non-compete agreements 231 Goodwill 2,483 Total intangible assets 26,222 Liabilities assumed: Accounts payable 55 Accrued expenses and liabilities 1,911 Other long-term liabilities 9,291 Total liabilities assumed 11,257 Net assets acquired $18,603 The identifiable intangible assets acquired as a result of the acquisition will be amortized over their respective estimated useful lives as follows (in thousands, except for years): Asset Amount Estimated Life in Years Patents $40 20 Customer relationships 4,500 4 Developed technology 11,403 10 In-process research and development 1 7,565 - Non-compete agreements 231 3 Total identifiable intangible assets $23,739 (1) In-process research and development (IPR&D) is initially classified as indefinite-lived assets and tested for impairment at least annually or when indications of potential impairment exist. When an IPR&D project is complete, it is reclassified as an amortizable intangible asset and amortized over its estimated useful life. Goodwill largely consists of expansion of product offerings of power modules and power electronics applications, manufacturing and other synergies of the combined companies, and the value of the assembled workforce. The assets, liabilities, and operating results of APEI have been included in the Company's consolidated financial statements from the date of acquisition and are not significant to the Company as a whole. |
Financial Statement Details
Financial Statement Details | 6 Months Ended |
Dec. 27, 2015 | |
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 27, 2015 June 28, 2015 Billed trade receivables $232,652 $246,969 Unbilled contract receivables 2,530 2,223 235,182 249,192 Allowance for sales returns, discounts and other incentives (46,574 ) (58,094 ) Allowance for bad debts (5,555 ) (4,941 ) Accounts receivable, net $183,053 $186,157 Inventories The following table summarizes the components of inventories (in thousands): December 27, 2015 June 28, 2015 Raw material $81,596 $86,331 Work-in-progress 95,347 93,424 Finished goods 103,867 100,821 Inventories $280,810 $280,576 Other Current Liabilities The following table summarizes the components of other current liabilities (in thousands): December 27, 2015 June 28, 2015 Accrued taxes $16,063 $13,935 Accrued professional fees 6,863 10,180 Accrued warranty 12,073 13,006 Accrued other 8,010 7,087 Other current liabilities $43,009 $44,208 Accumulated Other Comprehensive Income, net of taxes The following table summarizes the components of accumulated other comprehensive income, net of taxes (in thousands): December 27, 2015 June 28, 2015 Currency translation gain $4,197 $4,986 Net unrealized gain on available-for-sale securities 1,424 812 Accumulated other comprehensive income, net of taxes $5,621 $5,798 Non-Operating Income (Loss), net The following table summarizes the components of non-operating income (loss), net (in thousands): Three Months Ended Six Months Ended December 27, 2015 December 28, 2014 December 27, 2015 December 28, 2014 Foreign currency loss, net ($385 ) ($2,365 ) ($4,679 ) ($2,596 ) Gain on sale of investments, net 14 774 16 776 Gain (loss) on equity method investment 7,026 679 (12,922 ) 679 Interest income, net 1,220 2,586 2,517 5,618 Other, net 140 54 277 155 Non-operating income (loss), net $8,015 $1,728 ($14,791 ) $4,632 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 (Loss) Three Months Ended Six Months Ended December 27, 2015 December 28, 2014 December 27, 2015 December 28, 2014 Net unrealized gain on available-for-sale securities, net of taxes $14 $774 $16 $776 Non-operating income (loss), net 14 774 16 776 Income (loss) before income taxes 3 (15 ) 5 88 Income tax expense (benefit) $11 $789 $11 $688 Net income (loss) |
Investments
Investments | 6 Months Ended |
Dec. 27, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments consist of municipal bonds, corporate bonds and certificates of deposit. All short-term investments are classified as available-for-sale. Other long-term investments consist of the Company's ownership interest in Lextar Electronics Corporation. The following tables summarize short-term investments (in thousands): December 27, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Municipal bonds $192,388 $1,877 ($134 ) $194,131 Corporate bonds 162,889 1,026 (460 ) 163,455 U.S. certificates of deposit 500 — — 500 Non-U.S. certificates of deposit 168,481 — — 168,481 Total short-term investments $524,258 $2,903 ($594 ) $526,567 June 28, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Municipal bonds $194,123 $988 ($341 ) $194,770 Corporate bonds 152,831 832 (158 ) 153,505 U.S. certificates of deposit — — — — Non-U.S. certificates of deposit 225,206 — — 225,206 Total short-term investments $572,160 $1,820 ($499 ) $573,481 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 27, 2015 Less than 12 Months Greater than 12 Months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $48,678 ($134 ) $— $— $48,678 ($134 ) Corporate bonds 81,388 (440 ) 1,768 (20 ) 83,156 (460 ) Total $130,066 ($574 ) $1,768 ($20 ) $131,834 ($594 ) Number of securities with an unrealized loss 72 1 73 June 28, 2015 Less than 12 Months Greater than 12 Months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $53,204 ($341 ) $— $— $53,204 ($341 ) Corporate bonds 46,636 (143 ) 1,812 (15 ) 48,448 (158 ) Total $99,840 ($484 ) $1,812 ($15 ) $101,652 ($499 ) Number of securities with an unrealized loss 54 1 55 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 (loss), net in the Consolidated Statements of Income (Loss) 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 27, 2015 and June 28, 2015 . The contractual maturities of short-term investments as of December 27, 2015 were as follows (in thousands): Within One Year After One, Within Five Years After Five, Within Ten Years After Ten Years Total Municipal bonds $17,190 $143,765 $33,176 $— $194,131 Corporate bonds 33,343 95,596 34,516 — 163,455 U.S. certificates of deposit — 500 — — 500 Non-U.S. certificates of deposit 168,481 — — — 168,481 Total short-term investments $219,014 $239,861 $67,692 $— $526,567 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Dec. 27, 2015 | |
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 27, 2015 , financial assets utilizing Level 1 inputs included money market funds, and financial assets utilizing Level 2 inputs included municipal bonds, corporate bonds, certificates of deposit, and common stock of non-U.S. corporations. Level 2 assets are valued based on quoted prices in active markets for instruments that are similar or 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 27, 2015 . There were no transfers between Level 1 and Level 2 during the six months ended December 27, 2015 . The following table sets forth financial instruments carried at fair value within the U.S. GAAP hierarchy (in thousands): December 27, 2015 June 28, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents: U.S. agency securities $— $100 $— $100 $— $— $— $— Non-U.S. certificates of deposit — 130 — 130 — 157 — 157 Money market funds 2,495 — — 2,495 16,457 — — 16,457 Total cash equivalents 2,495 230 — 2,725 16,457 157 — 16,614 Short-term investments: Municipal bonds — 194,131 — 194,131 — 194,770 — 194,770 Corporate bonds — 163,455 — 163,455 — 153,505 — 153,505 U.S. certificates of deposit — 500 — 500 — — — — Non-U.S. certificates of deposit — 168,481 — 168,481 — 225,206 — 225,206 Total short-term investments — 526,567 — 526,567 — 573,481 — 573,481 Other long-term investments: Common stock of non-U.S. corporations — 41,873 — 41,873 — 57,595 — 57,595 Total other long-term investments — 41,873 — 41,873 — 57,595 — 57,595 Total assets $2,495 $568,670 $— $571,165 $16,457 $631,233 $— $647,690 |
Intangible Assets
Intangible Assets | 6 Months Ended |
Dec. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Intangible Assets | Intangible Assets Intangible Assets, net The following table presents the components of intangible assets, net (in thousands): December 27, 2015 June 28, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets with finite lives: Customer relationships $141,420 ($75,278 ) $66,142 $136,920 ($72,063 ) $64,857 Developed technology 174,163 (101,453 ) 72,710 162,760 (91,562 ) 71,198 Non-compete agreements 10,475 (8,976 ) 1,499 10,244 (7,958 ) 2,286 Trade names, finite-lived 520 (520 ) — 520 (520 ) — Patent and licensing rights 150,469 (54,399 ) 96,070 150,038 (50,905 ) 99,133 Total intangible assets with finite lives 477,047 (240,626 ) 236,421 460,482 (223,008 ) 237,474 In-process research and development 7,565 7,565 — — Trade names, indefinite-lived 79,680 79,680 79,680 79,680 Total intangible assets $564,292 ($240,626 ) $323,666 $540,162 ($223,008 ) $317,154 For the three and six months ended December 27, 2015 , total amortization of finite-lived intangible assets was $9.7 million and $19.4 million , respectively. 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. Total future amortization expense of finite-lived intangible assets is estimated to be as follows (in thousands): Fiscal Year Ending June 26, 2016 (remainder of fiscal 2016) $18,964 June 25, 2017 35,984 June 24, 2018 34,763 June 30, 2019 22,045 June 28, 2020 16,908 Thereafter 107,757 Total future amortization expense $236,421 Goodwill Goodwill assigned to the Power and RF Products reporting unit increased by $2.5 million during the six months ended December 27, 2015 due to the acquisition of APEI, as discussed in Note 2, "Acquisition." |
Long-term Debt
Long-term Debt | 6 Months Ended |
Dec. 27, 2015 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term Debt | Long-term Debt As of December 27, 2015 , the Company had a $500 million secured revolving line of credit under which the Company can borrow, repay and reborrow loans from time to time prior to its scheduled maturity date of January 9, 2020. The Company classifies balances outstanding under its line of credit as long-term debt in the consolidated balance sheets. At December 27, 2015 , the Company had $205 million outstanding under the line of credit and $295 million available for borrowing. For the three and six months ended December 27, 2015 , the average interest rate was 0.99% . For the three and six months ended December 27, 2015 the average commitment fee percentage was 0.09% . The Company was in compliance with all covenants in the line of credit at December 27, 2015 . |
Shareholders' Equity
Shareholders' Equity | 6 Months Ended |
Dec. 27, 2015 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity As of December 27, 2015 , pursuant to an approval by the Board of Directors, the Company is authorized to repurchase shares of its common stock having an aggregate purchase price not exceeding $500 million for all purchases from June 29, 2015 through the expiration of the program on June 26, 2016 . During the six months ended December 27, 2015 , the Company repurchased 5.2 million shares of common stock for $131.7 million under the stock repurchase program. |
Earnings Per Share
Earnings Per Share | 6 Months Ended |
Dec. 27, 2015 | |
Earnings Per Share [Abstract] | |
Earnings Per Share | Earnings (Loss) Per Share The following table presents the computation of basic earnings (loss) per share (in thousands, except per share amounts): Three Months Ended Six Months Ended December 27, December 28, December 27, December 28, Net income (loss) $13,958 $12,151 ($9,665 ) $23,281 Weighted average common shares 102,391 115,264 102,932 117,435 Basic earnings (loss) per share $0.14 $0.11 ($0.09 ) $0.20 The following computation reconciles the differences between the basic and diluted earnings (loss) per share presentations (in thousands, except per share amounts): Three Months Ended Six Months Ended December 27, December 28, December 27, December 28, Net income (loss) $13,958 $12,151 ($9,665 ) $23,281 Weighted average common shares - basic 102,391 115,264 102,932 117,435 Dilutive effect of stock options, nonvested shares and Employee Stock Purchase Plan purchase rights 130 581 — 1,164 Weighted average common shares - diluted 102,521 115,845 102,932 118,599 Diluted earnings (loss) per share $0.14 $0.10 ($0.09 ) $0.20 Potential common shares that would have the effect of increasing diluted earnings per share or decreasing diluted loss 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 27, 2015 , there were 12.2 million and 11.5 million , respectively, of potential common shares not included in the calculation of diluted earnings (loss) per share because their effect was anti-dilutive. 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 (loss) per share because their effect was anti-dilutive. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Dec. 27, 2015 | |
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 stock options, restricted stock and restricted stock units are currently outstanding. The Company’s stock-based awards can be either service-based or performance-based. 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 allows 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 provides for a twelve-month participation period, divided into two equal six-month purchase periods, and also provides for a look-back feature. At the end of each six-month period in April and October, participants 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 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 stock option awards outstanding as of December 27, 2015 and changes during the six months then ended (numbers of shares in thousands): Number of Shares Weighted Average Exercise Price Outstanding at June 28, 2015 10,714 $43.10 Granted 1,863 $26.01 Exercised (129 ) $22.71 Forfeited or expired (711 ) $44.19 Outstanding at December 27, 2015 11,737 $40.55 Restricted Stock Awards and Units A summary of nonvested restricted stock awards (RSAs) and restricted stock unit awards (RSUs) outstanding as of December 27, 2015 , and changes during the six months then ended is as follows (numbers of awards and units in thousands): Number of RSAs/RSUs Weighted Average Grant-Date Fair Value Nonvested at June 28, 2015 926 $45.47 Granted 1,160 $26.05 Vested (339 ) $44.98 Forfeited (116 ) $43.60 Nonvested at December 27, 2015 1,631 $31.89 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 27, December 28, December 27, December 28, Income Statement Classification: Cost of revenue, net $3,120 $3,448 $6,148 $6,353 Research and development 3,328 4,112 6,860 8,583 Sales, general and administrative 7,942 8,876 16,454 18,260 Total stock-based compensation expense $14,390 $16,436 $29,462 $33,196 |
Income Taxes
Income Taxes | 6 Months Ended |
Dec. 27, 2015 | |
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 in 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, 2014, was reinstated as part of the Protecting Americans from Tax Hikes Act of 2015, enacted on December 18, 2015. This legislation retroactively reinstated and permanently extended the research and development credit. The Company recognized a $1.8 million benefit for this credit in the three months ended December 27, 2015, which was primarily a catch-up benefit for second half of fiscal 2015 and the first quarter of fiscal 2016. 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 28, 2015 , the Company's liability for unrecognized tax benefits was $17.8 million . During the six months ended December 27, 2015 , the Company recognized a $0.6 million increase to the liability for unrecognized tax benefits due to uncertainty regarding intercompany transactions recently challenged by the Italian tax authority. As a result, the total liability for unrecognized tax benefits as of December 27, 2015 was $18.4 million . If any portion of this $18.4 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 $0.2 million of gross unrecognized tax benefits will change in the next 12 months as a result of statute requirements. 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 2011. For foreign purposes, the Company is generally no longer subject to tax examinations for tax periods 2005 and prior. Certain carryforward tax attributes generated in prior years remain subject to examination, adjustment and recapture. The Company is currently under audit by the Italian Revenue Agency for the fiscal year ended June 30, 2013. |
Commitments and Contingencies
Commitments and Contingencies | 6 Months Ended |
Dec. 27, 2015 | |
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 28, 2015 $13,968 Warranties accrued in current period 5,888 Recall costs accrued in current period 579 Expenditures (7,412 ) Balance at December 27, 2015 $13,023 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 Company accrues estimated costs related to product recalls based on a formal campaign soliciting repair or return of that product when they are deemed probable and reasonably estimable. The warranty reserves, which are primarily related to Lighting Products, are evaluated quarterly 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 27, 2015 , $0.9 million of the Company's product warranty liabilities were classified as long-term. In June 2015, the Company issued a voluntary recall of its linear LED T8 replacement lamps due to the hazard of overheating and melting. The Company expects the majority of the costs of the recall to be recoverable from insurance proceeds resulting in an immaterial impact to the Company’s financial results. 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. 27, 2015 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments The Company's operating and reportable segments are: • Lighting Products • LED Products • Power and RF Products Reportable Segments Description The Company's Lighting Products segment primarily consists of LED lighting systems and bulbs. The Company's LED Products segment includes LED chips, LED components and SiC materials. 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 27, 2015 and December 28, 2014 . 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 (Loss) must be included to reconcile the consolidated gross profit presented in the table below to the Company's consolidated income (loss) 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, expenses for profit sharing and quarterly or annual incentive plans 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 27, December 28, December 27, December 28, Revenue: Lighting Products revenue $254,970 $230,168 $503,001 $453,254 LED Products revenue 153,362 151,877 301,570 325,467 Power and RF Products revenue 27,474 31,112 56,724 62,108 Total revenue $435,806 $413,157 $861,295 $840,829 Gross Profit and Gross Margin: Lighting Products gross profit $72,642 $64,701 $141,723 $120,293 Lighting Products gross margin 28.5 % 28.1 % 28.2 % 26.5 % LED Products gross profit 53,242 59,424 105,901 127,048 LED Products gross margin 34.7 % 39.1 % 35.1 % 39.0 % Power and RF Products gross profit 14,346 17,260 28,669 35,117 Power and RF Products gross margin 52.2 % 55.5 % 50.5 % 56.5 % Total segment gross profit 140,230 141,385 276,293 282,458 Unallocated costs (5,079 ) (4,606 ) (9,394 ) (9,859 ) Consolidated gross profit $135,151 $136,779 $266,899 $272,599 Consolidated gross margin 31.0 % 33.1 % 31.0 % 32.4 % 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 were as follows (in thousands): December 27, June 28, Lighting Products $148,872 $150,755 LED Products 110,349 114,203 Power and RF Products 16,601 11,536 Total segment inventories 275,822 276,494 Unallocated inventories 4,988 4,082 Consolidated inventories $280,810 $280,576 |
Costs Associated with LED Busin
Costs Associated with LED Business Restructuring | 6 Months Ended |
Dec. 27, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Activities Disclosure [Text Block] | Costs Associated with LED Business Restructuring In June 2015, the Company’s Board of Directors approved a plan to restructure the LED Products business. The restructuring reduced excess capacity and overhead in order to improve the cost structure moving forward. The primary components of the restructuring include the planned sale or abandonment of certain manufacturing equipment, facility consolidation and the elimination of certain positions. The following table summarizes the actual and planned charges incurred through December 27, 2015 (in thousands): Capacity and Overhead Cost Reductions Estimated charges Amounts incurred during the three months ended December 27, 2015 Amounts incurred during the six months ended December 27, 2015 Cumulative amounts incurred through December 27, 2015 Affected Line Item in the Consolidated Statements of Income (Loss) Loss on disposal or impairment of long-lived assets $57,651 $1,641 $15,519 $57,651 Loss on disposal or impairment of long-lived assets Severance expense 2,283 (36 ) 264 2,283 Sales, general and administrative expenses Lease termination and facility consolidation costs 4,762 1,198 2,933 4,762 Sales, general and administrative expenses Increase in channel inventory reserves 26,479 — — 26,479 Revenue, net Increase in inventory reserves 11,091 — — 11,091 Cost of revenue, net Total restructuring charges $102,266 $2,803 $18,716 $102,266 The following table presents the changes in the severance liability under the LED Products restructuring plan (in thousands): Severance liability at June 28, 2015 $2,019 Severance expense 264 Severance payments (2,283 ) Severance liability at December 27, 2015 $— |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Dec. 27, 2015 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated balance sheet at December 27, 2015 , the consolidated statements of income (loss) for the three and six months ended December 27, 2015 and December 28, 2014 , the consolidated statements of comprehensive income (loss) for the three and six months ended December 27, 2015 and December 28, 2014 , and the consolidated statements of cash flows for the six months ended December 27, 2015 and December 28, 2014 (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 fairly state the consolidated financial position, results of operations and cash flows at December 27, 2015 , and for all periods presented, have been made. All intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 28, 2015 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 28, 2015 (fiscal 2015 ). The results of operations for the three and six months ended December 27, 2015 are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 26, 2016 (fiscal 2016 ). 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 2015 amounts in the accompanying consolidated financial statements have been reclassified to conform to the fiscal 2016 presentation. These reclassifications had no effect on previously reported consolidated net income or shareholders’ equity. |
New Accounting Standards | Recently Issued Accounting Pronouncements Revenue from Contracts with Customers In May 2014, the Financial Accounting Standards Board (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 30, 2019, using one of two retrospective application methods. The Company is currently analyzing the impact of this new accounting guidance. Income Taxes In November 2015, the FASB issued ASU No. 2015-17: Income Taxes (Topic 740). The ASU requires entities to present deferred tax assets and deferred tax liabilities as noncurrent in a classified balance sheet. The ASU simplifies the current guidance, which requires entities to separately present deferred tax assets and deferred tax liabilities as current or noncurrent in a classified balance sheet. The ASU is effective for financial statements issued for annual periods beginning after December 15, 2016, and interim periods within those annual periods. Early application of the ASU is permitted as of the beginning of an interim or annual reporting period and may be applied either prospectively or retrospectively to all periods presented. The Company has adopted the provisions of this ASU prospectively for the interim period ended December 27, 2015 and therefore, prior periods were not retrospectively adjusted. The Company’s adoption of the new accounting guidance did not have a significant impact on its consolidated financial statements. |
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 27, 2015 and December 28, 2014 . 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 (Loss) must be included to reconcile the consolidated gross profit presented in the table below to the Company's consolidated income (loss) 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, expenses for profit sharing and quarterly or annual incentive plans 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. |
Acquisition (Tables)
Acquisition (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The total estimated purchase price for this acquisition is as follows (in thousands): Cash consideration paid to shareholders $13,797 Post-closing adjustments 181 Contingent consideration 4,625 Total purchase price $18,603 |
Purchase Price Allocation [Table Text Block] | The purchase price for this acquisition has been allocated to the assets acquired and liabilities assumed based on their estimated fair values as follows (in thousands): Tangible assets: Cash and cash equivalents $1,284 Accounts receivable 1,006 Inventories 143 Property and equipment 935 Other assets 270 Total tangible assets 3,638 Intangible assets: Patents 40 Customer relationships 4,500 Developed technology 11,403 In-process research and development 7,565 Non-compete agreements 231 Goodwill 2,483 Total intangible assets 26,222 Liabilities assumed: Accounts payable 55 Accrued expenses and liabilities 1,911 Other long-term liabilities 9,291 Total liabilities assumed 11,257 Net assets acquired $18,603 |
Finite-Lived and Indefinite-Lived Intangible Assets Acquired as Part of Business Combination [Table Text Block] | The identifiable intangible assets acquired as a result of the acquisition will be amortized over their respective estimated useful lives as follows (in thousands, except for years): Asset Amount Estimated Life in Years Patents $40 20 Customer relationships 4,500 4 Developed technology 11,403 10 In-process research and development 1 7,565 - Non-compete agreements 231 3 Total identifiable intangible assets $23,739 (1) In-process research and development (IPR&D) is initially classified as indefinite-lived assets and tested for impairment at least annually or when indications of potential impairment exist. When an IPR&D project is complete, it is reclassified as an amortizable intangible asset and amortized over its estimated useful life. |
Financial Statement Details (Ta
Financial Statement Details (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
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 27, 2015 June 28, 2015 Billed trade receivables $232,652 $246,969 Unbilled contract receivables 2,530 2,223 235,182 249,192 Allowance for sales returns, discounts and other incentives (46,574 ) (58,094 ) Allowance for bad debts (5,555 ) (4,941 ) Accounts receivable, net $183,053 $186,157 |
Summary of the Components of Inventories | The following table summarizes the components of inventories (in thousands): December 27, 2015 June 28, 2015 Raw material $81,596 $86,331 Work-in-progress 95,347 93,424 Finished goods 103,867 100,821 Inventories $280,810 $280,576 |
Summary of the Components of Other Current Liabilities | The following table summarizes the components of other current liabilities (in thousands): December 27, 2015 June 28, 2015 Accrued taxes $16,063 $13,935 Accrued professional fees 6,863 10,180 Accrued warranty 12,073 13,006 Accrued other 8,010 7,087 Other current liabilities $43,009 $44,208 |
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 27, 2015 June 28, 2015 Currency translation gain $4,197 $4,986 Net unrealized gain on available-for-sale securities 1,424 812 Accumulated other comprehensive income, net of taxes $5,621 $5,798 |
Summary of the Components of Non-operating Income, Net | The following table summarizes the components of non-operating income (loss), net (in thousands): Three Months Ended Six Months Ended December 27, 2015 December 28, 2014 December 27, 2015 December 28, 2014 Foreign currency loss, net ($385 ) ($2,365 ) ($4,679 ) ($2,596 ) Gain on sale of investments, net 14 774 16 776 Gain (loss) on equity method investment 7,026 679 (12,922 ) 679 Interest income, net 1,220 2,586 2,517 5,618 Other, net 140 54 277 155 Non-operating income (loss), net $8,015 $1,728 ($14,791 ) $4,632 |
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 (Loss) Three Months Ended Six Months Ended December 27, 2015 December 28, 2014 December 27, 2015 December 28, 2014 Net unrealized gain on available-for-sale securities, net of taxes $14 $774 $16 $776 Non-operating income (loss), net 14 774 16 776 Income (loss) before income taxes 3 (15 ) 5 88 Income tax expense (benefit) $11 $789 $11 $688 Net income (loss) |
Investments (Tables)
Investments (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Short-term Investments by Type | The following tables summarize short-term investments (in thousands): December 27, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Municipal bonds $192,388 $1,877 ($134 ) $194,131 Corporate bonds 162,889 1,026 (460 ) 163,455 U.S. certificates of deposit 500 — — 500 Non-U.S. certificates of deposit 168,481 — — 168,481 Total short-term investments $524,258 $2,903 ($594 ) $526,567 June 28, 2015 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Municipal bonds $194,123 $988 ($341 ) $194,770 Corporate bonds 152,831 832 (158 ) 153,505 U.S. certificates of deposit — — — — Non-U.S. certificates of deposit 225,206 — — 225,206 Total short-term investments $572,160 $1,820 ($499 ) $573,481 |
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 27, 2015 Less than 12 Months Greater than 12 Months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $48,678 ($134 ) $— $— $48,678 ($134 ) Corporate bonds 81,388 (440 ) 1,768 (20 ) 83,156 (460 ) Total $130,066 ($574 ) $1,768 ($20 ) $131,834 ($594 ) Number of securities with an unrealized loss 72 1 73 June 28, 2015 Less than 12 Months Greater than 12 Months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $53,204 ($341 ) $— $— $53,204 ($341 ) Corporate bonds 46,636 (143 ) 1,812 (15 ) 48,448 (158 ) Total $99,840 ($484 ) $1,812 ($15 ) $101,652 ($499 ) Number of securities with an unrealized loss 54 1 55 |
Contractual Maturities of Short-term Investments by Type | The contractual maturities of short-term investments as of December 27, 2015 were as follows (in thousands): Within One Year After One, Within Five Years After Five, Within Ten Years After Ten Years Total Municipal bonds $17,190 $143,765 $33,176 $— $194,131 Corporate bonds 33,343 95,596 34,516 — 163,455 U.S. certificates of deposit — 500 — — 500 Non-U.S. certificates of deposit 168,481 — — — 168,481 Total short-term investments $219,014 $239,861 $67,692 $— $526,567 |
Fair Value of Financial Instr26
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
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 27, 2015 June 28, 2015 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents: U.S. agency securities $— $100 $— $100 $— $— $— $— Non-U.S. certificates of deposit — 130 — 130 — 157 — 157 Money market funds 2,495 — — 2,495 16,457 — — 16,457 Total cash equivalents 2,495 230 — 2,725 16,457 157 — 16,614 Short-term investments: Municipal bonds — 194,131 — 194,131 — 194,770 — 194,770 Corporate bonds — 163,455 — 163,455 — 153,505 — 153,505 U.S. certificates of deposit — 500 — 500 — — — — Non-U.S. certificates of deposit — 168,481 — 168,481 — 225,206 — 225,206 Total short-term investments — 526,567 — 526,567 — 573,481 — 573,481 Other long-term investments: Common stock of non-U.S. corporations — 41,873 — 41,873 — 57,595 — 57,595 Total other long-term investments — 41,873 — 41,873 — 57,595 — 57,595 Total assets $2,495 $568,670 $— $571,165 $16,457 $631,233 $— $647,690 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of intangible assets, net | The following table presents the components of intangible assets, net (in thousands): December 27, 2015 June 28, 2015 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets with finite lives: Customer relationships $141,420 ($75,278 ) $66,142 $136,920 ($72,063 ) $64,857 Developed technology 174,163 (101,453 ) 72,710 162,760 (91,562 ) 71,198 Non-compete agreements 10,475 (8,976 ) 1,499 10,244 (7,958 ) 2,286 Trade names, finite-lived 520 (520 ) — 520 (520 ) — Patent and licensing rights 150,469 (54,399 ) 96,070 150,038 (50,905 ) 99,133 Total intangible assets with finite lives 477,047 (240,626 ) 236,421 460,482 (223,008 ) 237,474 In-process research and development 7,565 7,565 — — Trade names, indefinite-lived 79,680 79,680 79,680 79,680 Total intangible assets $564,292 ($240,626 ) $323,666 $540,162 ($223,008 ) $317,154 |
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 26, 2016 (remainder of fiscal 2016) $18,964 June 25, 2017 35,984 June 24, 2018 34,763 June 30, 2019 22,045 June 28, 2020 16,908 Thereafter 107,757 Total future amortization expense $236,421 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Earnings Per Share [Abstract] | |
Basic Earnings Per Share Computation | The following table presents the computation of basic earnings (loss) per share (in thousands, except per share amounts): Three Months Ended Six Months Ended December 27, December 28, December 27, December 28, Net income (loss) $13,958 $12,151 ($9,665 ) $23,281 Weighted average common shares 102,391 115,264 102,932 117,435 Basic earnings (loss) per share $0.14 $0.11 ($0.09 ) $0.20 |
Diluted Earnings Per Share Computation | The following computation reconciles the differences between the basic and diluted earnings (loss) per share presentations (in thousands, except per share amounts): Three Months Ended Six Months Ended December 27, December 28, December 27, December 28, Net income (loss) $13,958 $12,151 ($9,665 ) $23,281 Weighted average common shares - basic 102,391 115,264 102,932 117,435 Dilutive effect of stock options, nonvested shares and Employee Stock Purchase Plan purchase rights 130 581 — 1,164 Weighted average common shares - diluted 102,521 115,845 102,932 118,599 Diluted earnings (loss) per share $0.14 $0.10 ($0.09 ) $0.20 |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Share-based Compensation [Abstract] | |
Summary of Outstanding Option Awards | The following table summarizes stock option awards outstanding as of December 27, 2015 and changes during the six months then ended (numbers of shares in thousands): Number of Shares Weighted Average Exercise Price Outstanding at June 28, 2015 10,714 $43.10 Granted 1,863 $26.01 Exercised (129 ) $22.71 Forfeited or expired (711 ) $44.19 Outstanding at December 27, 2015 11,737 $40.55 |
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 27, 2015 , and changes during the six months then ended is as follows (numbers of awards and units in thousands): Number of RSAs/RSUs Weighted Average Grant-Date Fair Value Nonvested at June 28, 2015 926 $45.47 Granted 1,160 $26.05 Vested (339 ) $44.98 Forfeited (116 ) $43.60 Nonvested at December 27, 2015 1,631 $31.89 |
Summary of Total Stock-Based Compensation Expense | Total stock-based compensation expense was as follows (in thousands): Three Months Ended Six Months Ended December 27, December 28, December 27, December 28, Income Statement Classification: Cost of revenue, net $3,120 $3,448 $6,148 $6,353 Research and development 3,328 4,112 6,860 8,583 Sales, general and administrative 7,942 8,876 16,454 18,260 Total stock-based compensation expense $14,390 $16,436 $29,462 $33,196 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
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 28, 2015 $13,968 Warranties accrued in current period 5,888 Recall costs accrued in current period 579 Expenditures (7,412 ) Balance at December 27, 2015 $13,023 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
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 27, December 28, December 27, December 28, Revenue: Lighting Products revenue $254,970 $230,168 $503,001 $453,254 LED Products revenue 153,362 151,877 301,570 325,467 Power and RF Products revenue 27,474 31,112 56,724 62,108 Total revenue $435,806 $413,157 $861,295 $840,829 Gross Profit and Gross Margin: Lighting Products gross profit $72,642 $64,701 $141,723 $120,293 Lighting Products gross margin 28.5 % 28.1 % 28.2 % 26.5 % LED Products gross profit 53,242 59,424 105,901 127,048 LED Products gross margin 34.7 % 39.1 % 35.1 % 39.0 % Power and RF Products gross profit 14,346 17,260 28,669 35,117 Power and RF Products gross margin 52.2 % 55.5 % 50.5 % 56.5 % Total segment gross profit 140,230 141,385 276,293 282,458 Unallocated costs (5,079 ) (4,606 ) (9,394 ) (9,859 ) Consolidated gross profit $135,151 $136,779 $266,899 $272,599 Consolidated gross margin 31.0 % 33.1 % 31.0 % 32.4 % Inventories for each of the Company's segments were as follows (in thousands): December 27, June 28, Lighting Products $148,872 $150,755 LED Products 110,349 114,203 Power and RF Products 16,601 11,536 Total segment inventories 275,822 276,494 Unallocated inventories 4,988 4,082 Consolidated inventories $280,810 $280,576 |
Costs Associated with LED Bus32
Costs Associated with LED Business Restructuring Costs Associated with LED Business Restructuring (Tables) | 6 Months Ended |
Dec. 27, 2015 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | The following table summarizes the actual and planned charges incurred through December 27, 2015 (in thousands): Capacity and Overhead Cost Reductions Estimated charges Amounts incurred during the three months ended December 27, 2015 Amounts incurred during the six months ended December 27, 2015 Cumulative amounts incurred through December 27, 2015 Affected Line Item in the Consolidated Statements of Income (Loss) Loss on disposal or impairment of long-lived assets $57,651 $1,641 $15,519 $57,651 Loss on disposal or impairment of long-lived assets Severance expense 2,283 (36 ) 264 2,283 Sales, general and administrative expenses Lease termination and facility consolidation costs 4,762 1,198 2,933 4,762 Sales, general and administrative expenses Increase in channel inventory reserves 26,479 — — 26,479 Revenue, net Increase in inventory reserves 11,091 — — 11,091 Cost of revenue, net Total restructuring charges $102,266 $2,803 $18,716 $102,266 |
Severance Liability [Table Text Block] | The following table presents the changes in the severance liability under the LED Products restructuring plan (in thousands): Severance liability at June 28, 2015 $2,019 Severance expense 264 Severance payments (2,283 ) Severance liability at December 27, 2015 $— |
Basis of Presentation and New33
Basis of Presentation and New Accounting Standards Narrative (Details) | 3 Months Ended |
Dec. 27, 2015reportable_segments | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | 3 |
Acquisition Acquisition (Detail
Acquisition Acquisition (Details) $ in Thousands | 6 Months Ended |
Dec. 27, 2015USD ($) | |
Purchase Price Allocation [Line Items] | |
Cash consideration paid to shareholders | $ 13,797 |
Post-closing adjustments | 181 |
Contingent consideration | 4,625 |
Total purchase price | 18,603 |
Cash and cash equivalents | 1,284 |
Accounts receivable | 1,006 |
Inventories | 143 |
Property and equipment | 935 |
Other assets | 270 |
Accounts payable | 55 |
Accrued expenses and liabilities | 1,911 |
Other long-term liabilities | 9,291 |
Net assets acquired | 18,603 |
Patents | |
Purchase Price Allocation [Line Items] | |
Finite-lived intangible assets | $ 40 |
Estimated Life in Years | 20 years |
Customer relationships | |
Purchase Price Allocation [Line Items] | |
Finite-lived intangible assets | $ 4,500 |
Estimated Life in Years | 4 years |
Developed technology | |
Purchase Price Allocation [Line Items] | |
Finite-lived intangible assets | $ 11,403 |
Estimated Life in Years | 10 years |
In-process research and development | |
Purchase Price Allocation [Line Items] | |
In-process research and development | $ 7,565 |
Non-compete agreements | |
Purchase Price Allocation [Line Items] | |
Finite-lived intangible assets | $ 231 |
Estimated Life in Years | 3 years |
Total identifiable intangible assets | |
Purchase Price Allocation [Line Items] | |
Total assets assumed | $ 23,739 |
Total tangible assets | |
Purchase Price Allocation [Line Items] | |
Total assets assumed | 3,638 |
Goodwill | |
Purchase Price Allocation [Line Items] | |
Goodwill | 2,483 |
Total intangible assets | |
Purchase Price Allocation [Line Items] | |
Total assets assumed | 26,222 |
Total liabilities assumed | |
Purchase Price Allocation [Line Items] | |
Total liabilities assumed | $ 11,257 |
Financial Statement Details (Su
Financial Statement Details (Summary of the Components of Accounts Receivable, Net) (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Accounts Receivable, Net, Current [Abstract] | ||
Accounts receivable, gross | $ 235,182 | $ 249,192 |
Allowance for bad debts | (5,555) | (4,941) |
Accounts receivable, net | 183,053 | 186,157 |
Allowance for sales returns, discounts and other incentives [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Allowance for sales returns, discounts and other incentives | (46,574) | (58,094) |
Billed trade receivables [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Accounts receivable, gross | 232,652 | 246,969 |
Unbilled contract receivables [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Accounts receivable, gross | $ 2,530 | $ 2,223 |
Financial Statement Details (36
Financial Statement Details (Summary of the Components of Inventories) (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Inventory, Net [Abstract] | ||
Raw material | $ 81,596 | $ 86,331 |
Work-in-progress | 95,347 | 93,424 |
Finished goods | 103,867 | 100,821 |
Inventories | $ 280,810 | $ 280,576 |
Financial Statement Details (37
Financial Statement Details (Summary of the Components of Other Current Liabilities) (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Accrued Liabilities, Current [Abstract] | ||
Accrued taxes | $ 16,063 | $ 13,935 |
Accrued professional fees | 6,863 | 10,180 |
Accrued warranty | 12,073 | 13,006 |
Accrued other | 8,010 | 7,087 |
Other current liabilities | $ 43,009 | $ 44,208 |
Financial Statement Details (38
Financial Statement Details (Summary of the Components of Accumulated Other Comprehensive Income, Net of Taxes) (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Financial Statement Details [Abstract] | ||
Currency translation gain | $ 4,197 | $ 4,986 |
Net unrealized gain on available-for-sale securities | 1,424 | 812 |
Accumulated other comprehensive income, net of taxes | $ 5,621 | $ 5,798 |
Financial Statement Details (39
Financial Statement Details (Summary of the Components of Non-operating Income, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Other Income and Expenses [Abstract] | ||||
Foreign currency loss, net | $ (385) | $ (2,365) | $ (4,679) | $ (2,596) |
Gain on sale of investments, net | 14 | 774 | 16 | 776 |
Gain (loss) on equity method investment | 7,026 | 679 | (12,922) | 679 |
Interest income, net | 1,220 | 2,586 | 2,517 | 5,618 |
Other, net | 140 | 54 | 277 | 155 |
Non-operating income (loss), net | $ 8,015 | $ 1,728 | $ (14,791) | $ 4,632 |
Financial Statement Details (40
Financial Statement Details (Summary of the Amounts Reclassified Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||||
Non-operating income (loss), net | $ 8,015 | $ 1,728 | $ (14,791) | $ 4,632 |
Income (loss) before income taxes | 17,447 | 11,913 | (14,049) | 26,274 |
Income tax expense (benefit) | 3,489 | (238) | (4,384) | 2,993 |
Net income (loss) | 13,958 | 12,151 | (9,665) | 23,281 |
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 (loss), net | 14 | 774 | 16 | 776 |
Income (loss) before income taxes | 14 | 774 | 16 | 776 |
Income tax expense (benefit) | 3 | (15) | 5 | 88 |
Net income (loss) | $ 11 | $ 789 | $ 11 | $ 688 |
Investments (Summary of Short-t
Investments (Summary of Short-term Investments by Type) (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | $ 524,258 | $ 572,160 |
Gross Unrealized Gains | 2,903 | 1,820 |
Gross Unrealized Losses | (594) | (499) |
Estimated Fair Value | 526,567 | 573,481 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 192,388 | 194,123 |
Gross Unrealized Gains | 1,877 | 988 |
Gross Unrealized Losses | (134) | (341) |
Estimated Fair Value | 194,131 | 194,770 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 162,889 | 152,831 |
Gross Unrealized Gains | 1,026 | 832 |
Gross Unrealized Losses | (460) | (158) |
Estimated Fair Value | 163,455 | 153,505 |
U.S. | Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 500 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 500 | 0 |
Non-US [Member] | Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 168,481 | 225,206 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 168,481 | $ 225,206 |
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) $ in Thousands | Dec. 27, 2015USD ($) | Jun. 28, 2015USD ($) |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | $ 130,066 | $ 99,840 |
Unrealized Loss, Less than 12 Months | (574) | (484) |
Fair Value, Greater than 12 Months | 1,768 | 1,812 |
Unrealized Loss, Greater than 12 Months | (20) | (15) |
Fair Value, Total | 131,834 | 101,652 |
Unrealized Loss, Total | $ (594) | $ (499) |
Number of Securities with an Unrealized Loss, Less than 12 Months | 72 | 54 |
Number of Securities with an Unrealized Loss, Greater than 12 Months | 1 | 1 |
Number of Securities with an Unrealized Loss, Total | 73 | 55 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | $ 48,678 | $ 53,204 |
Unrealized Loss, Less than 12 Months | (134) | (341) |
Fair Value, Greater than 12 Months | 0 | 0 |
Unrealized Loss, Greater than 12 Months | 0 | 0 |
Fair Value, Total | 48,678 | 53,204 |
Unrealized Loss, Total | (134) | (341) |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | 81,388 | 46,636 |
Unrealized Loss, Less than 12 Months | (440) | (143) |
Fair Value, Greater than 12 Months | 1,768 | 1,812 |
Unrealized Loss, Greater than 12 Months | (20) | (15) |
Fair Value, Total | 83,156 | 48,448 |
Unrealized Loss, Total | $ (460) | $ (158) |
Investments (Contractual Maturi
Investments (Contractual Maturities of Short-term Investments by Type) (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | $ 219,014 | |
After One, Within Five Years | 239,861 | |
After Five, Within Ten Years | 67,692 | |
After Ten Years | 0 | |
Total | 526,567 | $ 573,481 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | 17,190 | |
After One, Within Five Years | 143,765 | |
After Five, Within Ten Years | 33,176 | |
After Ten Years | 0 | |
Total | 194,131 | |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | 33,343 | |
After One, Within Five Years | 95,596 | |
After Five, Within Ten Years | 34,516 | |
After Ten Years | 0 | |
Total | 163,455 | |
U.S. | Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | 0 | |
After One, Within Five Years | 500 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 500 | |
Non-US [Member] | Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | 168,481 | |
After One, Within Five Years | 0 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | $ 168,481 |
Fair Value of Financial Instr44
Fair Value of Financial Instruments (Financial Instruments Carried at Fair Value) (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
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 | 526,567 | $ 573,481 |
Other long-term investments | 41,873 | 57,595 |
Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 2,725 | 16,614 |
Short-term investments | 526,567 | 573,481 |
Other long-term investments | 41,873 | 57,595 |
Total assets | 571,165 | 647,690 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 2,495 | 16,457 |
Short-term investments | 0 | 0 |
Other long-term investments | 0 | 0 |
Total assets | 2,495 | 16,457 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 230 | 157 |
Short-term investments | 526,567 | 573,481 |
Other long-term investments | 41,873 | 57,595 |
Total assets | 568,670 | 631,233 |
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 | 194,131 | 194,770 |
Municipal Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 194,131 | 194,770 |
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 | 194,131 | 194,770 |
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 | 163,455 | 153,505 |
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 163,455 | 153,505 |
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 | 163,455 | 153,505 |
Corporate Bonds [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 | 41,873 | 57,595 |
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 | 41,873 | 57,595 |
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 |
US Government Agencies Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 100 | 0 |
US Government Agencies Debt Securities [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 0 | 0 |
US Government Agencies Debt Securities [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 100 | 0 |
US Government Agencies Debt Securities [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 0 | 0 |
Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 130 | 157 |
Certificates of Deposit [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 0 | 0 |
Certificates of Deposit [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 130 | 157 |
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 | 2,495 | 16,457 |
Money Market Funds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 2,495 | 16,457 |
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 |
U.S. | Certificates of Deposit [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 500 | 0 |
U.S. | Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 500 | 0 |
U.S. | Certificates of Deposit [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 0 |
U.S. | Certificates of Deposit [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 500 | 0 |
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-US [Member] | Certificates of Deposit [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 168,481 | 225,206 |
Non-US [Member] | Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 168,481 | 225,206 |
Non-US [Member] | Certificates of Deposit [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 0 | 0 |
Non-US [Member] | Certificates of Deposit [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 168,481 | 225,206 |
Non-US [Member] | Certificates of Deposit [Member] | Level 3 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | $ 0 | $ 0 |
Intangible Assets (Components o
Intangible Assets (Components of intangible assets, net) (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 477,047 | $ 460,482 |
Finite-lived intangible assets, accumulated amortization | (240,626) | (223,008) |
Finite-lived intangible assets, net | 236,421 | 237,474 |
Trade names, indefinite-lived | 79,680 | 79,680 |
Intangible Assets, Gross (Excluding Goodwill) | 564,292 | 540,162 |
Intangible assets, net | 323,666 | 317,154 |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 141,420 | 136,920 |
Finite-lived intangible assets, accumulated amortization | (75,278) | (72,063) |
Finite-lived intangible assets, net | 66,142 | 64,857 |
Developed Technology [Member] | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 174,163 | 162,760 |
Finite-lived intangible assets, accumulated amortization | (101,453) | (91,562) |
Finite-lived intangible assets, net | 72,710 | 71,198 |
Non-compete Agreements [Member] | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 10,475 | 10,244 |
Finite-lived intangible assets, accumulated amortization | (8,976) | (7,958) |
Finite-lived intangible assets, net | 1,499 | 2,286 |
Trade Names [Member] | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 520 | 520 |
Finite-lived intangible assets, accumulated amortization | (520) | (520) |
Finite-lived intangible assets, net | 0 | 0 |
Patent and Licensing Rights [Member] | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 150,469 | 150,038 |
Finite-lived intangible assets, accumulated amortization | (54,399) | (50,905) |
Finite-lived intangible assets, net | 96,070 | 99,133 |
In-process research and development | ||
Intangible Assets [Line Items] | ||
In-process research and development | $ 7,565 | $ 0 |
Intangible Assets Intangible As
Intangible Assets Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||||
Goodwill, Acquired During Period | $ 2.5 | |||
Amortization of Intangible Assets | $ 9.7 | $ 9 | $ 19.4 | $ 17.9 |
Intangible Assets Intangible 47
Intangible Assets Intangible Assets (Schedule of future amortization expense of finite-lived intangible assets) (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
June 26, 2016 (remainder of fiscal 2016) | $ 18,964 | |
June 25, 2017 | 35,984 | |
June 24, 2018 | 34,763 | |
June 30, 2019 | 22,045 | |
June 28, 2020 | 16,908 | |
Thereafter | 107,757 | |
Finite-lived intangible assets, net | $ 236,421 | $ 237,474 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Dec. 27, 2015 | Dec. 27, 2015 | Jun. 28, 2015 | |
Long-term Debt, Unclassified [Abstract] | |||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | $ 500,000 | |
Long-term debt | 205,000 | 205,000 | $ 200,000 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 295,000 | $ 295,000 | |
Long-term Debt, Average Interest Rate | 0.99% | 0.99% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.09% | 0.09% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - Common Stock [Member] shares in Millions, $ in Millions | 6 Months Ended |
Dec. 27, 2015USD ($)shares | |
Class of Stock [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 500 |
Repurchased share number | shares | 5.2 |
Repurchased share value | $ 131.7 |
Earnings Per Share (Basic Earni
Earnings Per Share (Basic Earnings Per Share Computation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Earnings Per Share, Basic [Abstract] | ||||
Net income (loss) | $ 13,958 | $ 12,151 | $ (9,665) | $ 23,281 |
Weighted average common shares - basic | 102,391 | 115,264 | 102,932 | 117,435 |
Basic earnings (loss) per share | $ 0.14 | $ 0.11 | $ (0.09) | $ 0.20 |
Earnings Per Share (Diluted Ear
Earnings Per Share (Diluted Earnings Per Share Computation) (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Earnings Per Share, Diluted [Abstract] | ||||
Net income (loss) | $ 13,958 | $ 12,151 | $ (9,665) | $ 23,281 |
Weighted average common shares - basic | 102,391 | 115,264 | 102,932 | 117,435 |
Dilutive effect of stock options, nonvested shares and Employee Stock Purchase Plan purchase rights | 130 | 581 | 0 | 1,164 |
Weighted average common shares - diluted | 102,521 | 115,845 | 102,932 | 118,599 |
Diluted earnings (loss) per share | $ 0.14 | $ 0.10 | $ (0.09) | $ 0.20 |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
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 | 12.2 | 8.6 | 11.5 | 6.5 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) | 6 Months Ended |
Dec. 27, 2015plans | |
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% |
Stock-Based Compensation (Summa
Stock-Based Compensation (Summary of Outstanding Option Awards) (Details) - Stock Option [Member] shares in Thousands | 6 Months Ended |
Dec. 27, 2015$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding number of shares at beginning of period | shares | 10,714 |
Granted, number of shares | shares | 1,863 |
Exercised, number of shares | shares | (129) |
Forfeited or expired, number of shares | shares | (711) |
Outstanding number of shares at end of period | shares | 11,737 |
Outstanding weighted-average exercise price at beginning of period | $ / shares | $ 43.10 |
Granted, weighted-average exercise price | $ / shares | 26.01 |
Exercised, weighted-average exercise price | $ / shares | 22.71 |
Forfeited or expired, weighted-average exercise price | $ / shares | 44.19 |
Outstanding weighted-average exercised price at end of period | $ / shares | $ 40.55 |
Stock-Based Compensation (Sum55
Stock-Based Compensation (Summary of Nonvested Shares of Restricted Stock and Stock Unit Awards Outstanding) (Details) - Restricted Stock Awards And Restricted Stock Units [Member] shares in Thousands | 6 Months Ended |
Dec. 27, 2015$ / sharesshares | |
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 | shares | 926 |
Granted, Number of RSAs/RSUs | shares | 1,160 |
Vested, number of RSAs/RSUs | shares | (339) |
Forfeited, number of RSAs/RSUs | shares | (116) |
Nonvested, Number of RSAs/RSUs at end of period | shares | 1,631 |
Nonvested, weighted-average grant-date fair value at beginning of period | $ / shares | $ 45.47 |
Granted, weighted-average grant-date fair value | $ / shares | 26.05 |
Vested, weighted-average grant-date fair value | $ / shares | 44.98 |
Forfeited, weighted-average grant-date fair value | $ / shares | 43.60 |
Nonvested, weighted-average grant-date fair value at end of period | $ / shares | $ 31.89 |
Stock-Based Compensation (Total
Stock-Based Compensation (Total Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 14,390 | $ 16,436 | $ 29,462 | $ 33,196 |
Cost of revenue, net [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 3,120 | 3,448 | 6,148 | 6,353 |
Research and development [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | 3,328 | 4,112 | 6,860 | 8,583 |
Selling, general and administrative [Member] | ||||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||||
Total stock-based compensation expense | $ 7,942 | $ 8,876 | $ 16,454 | $ 18,260 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | 6 Months Ended | |
Dec. 27, 2015 | Dec. 27, 2015 | Jun. 28, 2015 | |
Income Tax Disclosure [Abstract] | |||
U.S. statutory tax rate | 35.00% | ||
Income Tax Benefit, Research and Development, Amount | $ 1.8 | ||
Unrecognized tax benefits balance | 18.4 | $ 18.4 | $ 17.8 |
Unrecognized Tax Benefits, Period Increase (Decrease) | 0.6 | ||
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | 18.4 | 18.4 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | $ 0.2 | $ 0.2 |
Commitments and Contingencies58
Commitments and Contingencies (Warranties) (Details) $ in Thousands | 6 Months Ended |
Dec. 27, 2015USD ($) | |
Movement in Standard and Extended Product Warranty, Increase (Decrease) [Roll Forward] | |
Warranty accrual, beginning balance | $ 13,968 |
Warranties accrued in current period | 5,888 |
Recall costs accrued in current period | 579 |
Expenditures | (7,412) |
Warranty accrual, ending balance | 13,023 |
Product Warranty Liability, Long-Term | $ 900 |
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,
Reportable Segments (Revenues, Gross Profit and Gross Margin, by Segment) (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Dec. 27, 2015 | Dec. 28, 2014 | Dec. 27, 2015 | Dec. 28, 2014 | |
Segment Reporting Information [Line Items] | ||||
Revenue, net | $ 435,806 | $ 413,157 | $ 861,295 | $ 840,829 |
Gross profit | $ 135,151 | $ 136,779 | $ 266,899 | $ 272,599 |
Gross margin | 31.00% | 33.10% | 31.00% | 32.40% |
Lighting Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | $ 254,970 | $ 230,168 | $ 503,001 | $ 453,254 |
Gross profit | $ 72,642 | $ 64,701 | $ 141,723 | $ 120,293 |
Gross margin | 28.50% | 28.10% | 28.20% | 26.50% |
LED Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | $ 153,362 | $ 151,877 | $ 301,570 | $ 325,467 |
Gross profit | $ 53,242 | $ 59,424 | $ 105,901 | $ 127,048 |
Gross margin | 34.70% | 39.10% | 35.10% | 39.00% |
Power and RF Products [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Revenue, net | $ 27,474 | $ 31,112 | $ 56,724 | $ 62,108 |
Gross profit | $ 14,346 | $ 17,260 | $ 28,669 | $ 35,117 |
Gross margin | 52.20% | 55.50% | 50.50% | 56.50% |
Total segment gross profit [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | $ 140,230 | $ 141,385 | $ 276,293 | $ 282,458 |
Unallocated Costs [Member] | ||||
Segment Reporting Information [Line Items] | ||||
Gross profit | $ (5,079) | $ (4,606) | $ (9,394) | $ (9,859) |
Reportable Segments Schedule of
Reportable Segments Schedule of Inventory by Reportable Segment (Details) - USD ($) $ in Thousands | Dec. 27, 2015 | Jun. 28, 2015 |
Segment Reporting Information [Line Items] | ||
Inventories | $ 280,810 | $ 280,576 |
Lighting Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | 148,872 | 150,755 |
LED Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | 110,349 | 114,203 |
Power and RF Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | 16,601 | 11,536 |
Total segment inventories [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | 275,822 | 276,494 |
Unallocated inventories [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | $ 4,988 | $ 4,082 |
Costs Associated with LED Bus61
Costs Associated with LED Business Restructuring Costs Associated with LED Business Restructuring (Details) $ in Thousands | 3 Months Ended | 6 Months Ended |
Dec. 27, 2015USD ($) | Dec. 27, 2015USD ($) | |
Restructuring Cost and Reserve [Line Items] | ||
Estimated charges | $ 102,266 | $ 102,266 |
Restructuring and related cost, incurred cost | 2,803 | 18,716 |
Cumulative amounts incurred through December 27, 2015 | 102,266 | 102,266 |
Loss on disposal or impairment of long-lived assets | Loss on disposal or impairment of long-lived assets | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated charges | 57,651 | 57,651 |
Restructuring and related cost, incurred cost | 1,641 | 15,519 |
Cumulative amounts incurred through December 27, 2015 | 57,651 | 57,651 |
Severance expense | Sales, general and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated charges | 2,283 | 2,283 |
Restructuring and related cost, incurred cost | (36) | 264 |
Cumulative amounts incurred through December 27, 2015 | 2,283 | 2,283 |
Lease termination and facility consolidation costs | Sales, general and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated charges | 4,762 | 4,762 |
Restructuring and related cost, incurred cost | 1,198 | 2,933 |
Cumulative amounts incurred through December 27, 2015 | 4,762 | 4,762 |
Increase in channel inventory reserves | Revenue, net | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated charges | 26,479 | 26,479 |
Restructuring and related cost, incurred cost | 0 | 0 |
Cumulative amounts incurred through December 27, 2015 | 26,479 | 26,479 |
Increase in inventory reserves | Cost of revenue, net | ||
Restructuring Cost and Reserve [Line Items] | ||
Estimated charges | 11,091 | 11,091 |
Restructuring and related cost, incurred cost | 0 | 0 |
Cumulative amounts incurred through December 27, 2015 | $ 11,091 | $ 11,091 |
Costs Associated with LED Bus62
Costs Associated with LED Business Restructuring Schedule of Severance Liability (Details) - Employee Severance [Member] - USD ($) $ in Thousands | 6 Months Ended | |
Dec. 27, 2015 | Jun. 28, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Severance liability | $ 0 | $ 2,019 |
Severance expense | 264 | |
Severance payments | $ (2,283) |