Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Sep. 25, 2016 | Oct. 14, 2016 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | CREE INC | |
Entity Central Index Key | 895,419 | |
Current Fiscal Year End Date | --06-25 | |
Entity Filer Category | Large Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Sep. 25, 2016 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 99,704,078 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes |
Consolidated Balance Sheets
Consolidated Balance Sheets - USD ($) $ in Thousands | Sep. 25, 2016 | Jun. 26, 2016 |
Current assets: | ||
Cash and cash equivalents | $ 127,841 | $ 166,154 |
Short-term investments | 461,207 | 439,151 |
Total cash, cash equivalents and short-term investments | 589,048 | 605,305 |
Accounts receivable, net | 146,067 | 138,772 |
Income tax receivable | 9,855 | 6,304 |
Inventories | 291,533 | 281,671 |
Prepaid expenses | 23,344 | 25,728 |
Other current assets | 41,584 | 44,501 |
Disposal Group, Including Discontinued Operation, Assets, Current | 421,094 | 54,426 |
Total current assets | 1,522,525 | 1,156,707 |
Property and equipment, net | 373,211 | 387,167 |
Goodwill | 518,059 | 518,059 |
Intangible assets, net | 252,568 | 259,400 |
Other long-term investments | 39,049 | 40,179 |
Deferred income taxes | 38,708 | 38,564 |
Disposal Group, Including Discontinued Operation, Other Assets, Noncurrent | 0 | 356,735 |
Other assets | 8,635 | 9,249 |
Total assets | 2,752,755 | 2,766,060 |
Current liabilities: | ||
Accounts payable, trade | 114,302 | 122,808 |
Accrued salaries and wages | 36,250 | 40,128 |
Other Liabilities, Current | 41,940 | 45,101 |
Disposal Group, Including Discontinued Operation, Liabilities, Current | 18,383 | 14,962 |
Total current liabilities | 210,875 | 222,999 |
Long-term liabilities: | ||
Long-term debt | 187,000 | 160,000 |
Deferred income taxes | 945 | 943 |
Other long-term liabilities | 11,676 | 12,444 |
Long-term liabilities held for sale | 0 | 1,850 |
Total long-term liabilities | 199,621 | 175,237 |
Commitments and contingencies (Note 13) | ||
Shareholders' equity: | ||
Preferred stock, par value $0.01; 3,000 shares authorized at September 25, 2016 and June 26, 2016; none issued and outstanding | 0 | 0 |
Common stock, par value $0.00125; 200,000 shares authorized at September 25, 2016 and June 26, 2016; 99,689 and 100,829 shares issued and outstanding at September 25, 2016 and June 26, 2016, respectively | 124 | 125 |
Additional paid-in-capital | 2,369,408 | 2,359,584 |
Accumulated other comprehensive income, net of taxes | 8,437 | 8,728 |
Accumulated deficit | (35,710) | (613) |
Total shareholders’ equity | 2,342,259 | 2,367,824 |
Total liabilities and shareholders’ equity | $ 2,752,755 | $ 2,766,060 |
Consolidated Balance Sheets Con
Consolidated Balance Sheets Consolidation Balance Sheets (Parenthetical) - $ / shares shares in Thousands | Sep. 25, 2016 | Jun. 26, 2016 |
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 | 99,689 | 100,829 |
Common stock, shares outstanding | 99,689 | 100,829 |
Consolidated Statements of Inco
Consolidated Statements of Income - USD ($) shares in Thousands, $ in Thousands | 3 Months Ended | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Income Statement [Abstract] | ||
Revenue, net | $ 321,329 | $ 381,549 |
Cost of revenue, net | 234,988 | 274,357 |
Gross profit | 86,341 | 107,192 |
Operating expenses: | ||
Research and development | 28,531 | 32,731 |
Sales, general and administrative | 61,371 | 70,172 |
Amortization or impairment of acquisition-related intangibles | 6,266 | 6,469 |
Loss on disposal or impairment of long-lived assets | 316 | 9,565 |
Total operating expenses | 96,484 | 118,937 |
Operating loss | (10,143) | (11,745) |
Non-operating expense | (158) | (22,803) |
Loss from continuing operations before income taxes | (10,301) | (34,548) |
Income tax benefit | (7,443) | (8,812) |
Loss from continuing operations | (2,858) | (25,736) |
Income from discontinued operations, net of tax | 3,424 | 1,247 |
Net income (loss) | $ 566 | $ (24,489) |
Earnings (loss) per share-basic | ||
Continuing operations, basic | $ (0.03) | $ (0.25) |
Discontinued operations, basic | 0.03 | 0.01 |
Basic | 0 | (0.24) |
Continuing operations, diluted | (0.03) | (0.25) |
Discontinued operations, diluted | 0.03 | 0.01 |
Diluted | $ 0 | $ (0.24) |
Weighted average shares used in per share calculation: | ||
Basic | 100,559 | 103,473 |
Diluted | 100,559 | 103,473 |
Consolidated Statements of Comp
Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Net income (loss) | $ 566 | $ (24,489) |
Currency translation gain (loss) | 29 | (359) |
Net unrealized (loss) gain on available-for-sale securities, net of tax benefit (expense) of $199 and ($490), respectively | (320) | 792 |
Other comprehensive (loss) income | (291) | 433 |
Comprehensive income (loss) | $ 275 | $ (24,056) |
Consolidated Statements of Com6
Consolidated Statements of Comprehensive Income Consolidated Statements of Comprehensive Income (Parenthetical) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Statement of Comprehensive Income [Abstract] | ||
Tax (expense) benefit on net unrealized gain (loss) on available-for-sale securities | $ 199 | $ (490) |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Cash flows from operating activities: | ||
Net income (loss) | $ 566 | $ (24,489) |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 35,939 | 41,360 |
Stock-based compensation | 14,650 | 15,074 |
Excess tax benefit from stock-based payment arrangements | (12) | (3) |
Loss on disposal or impairment of long-lived assets | 325 | 14,573 |
Amortization of premium/discount on investments | 1,382 | 1,361 |
Loss on equity investment | 2,487 | 19,948 |
Foreign exchange loss on equity investment | (1,373) | 3,036 |
Deferred income taxes | 54 | 979 |
Changes in operating assets and liabilities: | ||
Accounts receivable, net | (9,227) | (6,406) |
Inventories | (10,808) | (8,428) |
Prepaid expenses and other assets | (1,922) | (772) |
Accounts payable, trade | (2,111) | (459) |
Accrued salaries and wages and other liabilities | (11,852) | (8,940) |
Net cash provided by operating activities | 18,098 | 46,834 |
Cash flows from investing activities: | ||
Purchases of property and equipment | (19,337) | (49,883) |
Purchases of patent and licensing rights | (2,252) | (4,314) |
Proceeds from sale of property and equipment | 165 | 3 |
Purchases of short-term investments | (106,749) | (121,628) |
Proceeds from maturities of short-term investments | 77,645 | 137,121 |
Proceeds from sale of short-term investments | 5,148 | 8,643 |
Purchase of acquired business, net of cash acquired | (2,775) | (12,513) |
Net cash used in investing activities | (48,155) | (42,571) |
Cash flows from financing activities: | ||
Proceeds from long-term debt borrowings | 110,000 | 195,000 |
Payments on long-term debt borrowings | (83,000) | (188,000) |
Net proceeds from issuance of common stock | 406 | 2,801 |
Excess tax benefit from stock-based payment arrangements | 12 | 3 |
Repurchases of common stock | (35,663) | (69,604) |
Net cash used in financing activities | (8,245) | (59,800) |
Effects of foreign exchange changes on cash and cash equivalents | (11) | (804) |
Net decrease in cash and cash equivalents | (38,313) | (56,341) |
Cash and cash equivalents: | ||
Beginning of period | 166,154 | 139,710 |
End of period | 127,841 | 83,369 |
Accrued property and equipment | $ 3,103 | $ 17,672 |
Basis of Presentation and New A
Basis of Presentation and New Accounting Standards | 3 Months Ended |
Sep. 25, 2016 | |
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 and LED chips. The Company's LED products enable its customers to develop and market LED-based products for lighting, video screens and other industrial applications. In addition, the Company develops, manufactures and sells silicon carbide (SiC) materials, power devices and RF devices based on wide bandgap semiconductor materials such as SiC and gallium nitride (GaN). The Company's SiC materials products are sold to customers developing power and RF products as well as gemstones. These SiC materials products had previously been included within the LED Products segment. 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). Collectively, the Company refers to these product lines as the Wolfspeed business. As discussed more fully below in Note 2, “Discontinued Operations,” on July 13, 2016, the Company executed a definitive agreement to sell its Wolfspeed business to Infineon Technologies AG (Infineon). As a result, the Company has classified the results of the Wolfspeed business as discontinued operations in its consolidated statements of income (loss) for all periods presented. Additionally, the related assets and liabilities associated with the discontinued operations are classified as held for sale in the consolidated balance sheets. Unless otherwise noted, discussion within these notes to the consolidated financial statements relates to the Company's continuing operations. 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, Italy 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 two reportable segments are: • Lighting Products • LED Products For financial results by reportable segment, please refer to Note 14, "Reportable Segments." Basis of Presentation The consolidated balance sheet at September 25, 2016 , the consolidated statements of income (loss) for the three months ended September 25, 2016 and September 27, 2015 , the consolidated statements of comprehensive income (loss) for the three months ended September 25, 2016 and September 27, 2015 , and the consolidated statements of cash flows for the three months ended September 25, 2016 and September 27, 2015 (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, comprehensive income and cash flows at September 25, 2016 , and for all periods presented, have been made. All intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 26, 2016 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 26, 2016 (fiscal 2016 ). The results of operations for the three months ended September 25, 2016 are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 25, 2017 (fiscal 2017 ). 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 2016 amounts in the accompanying consolidated financial statements have been reclassified to conform to the fiscal 2017 presentation. These reclassifications had no effect on previously reported consolidated net income or shareholders’ equity. Revision of Prior Period Financial Statements During the third quarter of fiscal 2016, the Company identified errors in its previously reported financial statements in which amortization expense was understated as certain patents were being amortized over a life longer than the life of the underlying patent right. The Company assessed the materiality of these errors on prior periods’ financial statements in accordance with the United States Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 99, Materiality, codified in the Accounting Standards Codification (ASC) 250, Presentation of Financial Statements, and concluded that they were not material individually or in the aggregate to any prior annual or interim periods. However, through the second quarter of fiscal 2016 the aggregate amount of the prior period errors of $6.8 million before income taxes would have been material to the Company's interim Consolidated Statements of Income (Loss) for the third quarter of fiscal 2016. Consequently, in accordance with ASC 250, the Company corrected these errors, and other immaterial errors, for all prior periods presented by revising the consolidated financial statements and other financial information included herein. Periods not presented herein will be revised, as applicable in future filings. The following table summarizes the effects of the revision on the consolidated statements of income (loss) (in thousands): Three Months Ended September 27, 2015 As Reported Revision Adjustments As Revised Cost of revenue, net $273,256 $1,101 $274,357 Gross profit 108,293 (1,101 ) 107,192 Operating loss (10,644 ) (1,101 ) (11,745 ) Loss from continuing operations before income taxes (33,447 ) (1,101 ) (34,548 ) Income tax benefit (8,528 ) (284 ) (8,812 ) Loss from continuing operations (24,919 ) (817 ) (25,736 ) Income (loss) from discontinued operations, net of tax 1,296 (49 ) 1,247 Net income (loss) ($23,623 ) ($866 ) ($24,489 ) (Loss) earnings per share-basic Continuing operations ($0.24 ) ($0.01 ) ($0.25 ) Discontinued operations 0.01 — 0.01 (Loss) earnings per share-basic ($0.23 ) ($0.01 ) ($0.24 ) (Loss) earnings per share-diluted Continuing operations ($0.24 ) ($0.01 ) ($0.25 ) Discontinued operations 0.01 — 0.01 (Loss) earnings per share-diluted ($0.23 ) ($0.01 ) ($0.24 ) The revision had no net impact on the Company’s net cash provided by operating activities. 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 FASB has subsequently issued multiple ASUs which amend and clarify the guidance in 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. Leases In February 2016, the FASB issued ASU No. 2016-02: Leases (Topic 842). The ASU requires that a lessee recognize in its statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. For income statement purposes, leases are still required to be classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. The effective date will be the first quarter of the Company's fiscal year ending June 28, 2020, using a modified retrospective approach. The Company is currently analyzing the impact of this new pronouncement. Stock Compensation In March 2016, the FASB issued ASU No. 2016-09: Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU simplifies the current stock compensation guidance for tax consequences. The ASU requires an entity to recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in its income statement. The ASU also eliminates the requirement to defer recognition of an excess tax benefit until the benefit is realized through a reduction to taxes payable. For cash flows statement purposes, excess tax benefits should be classified as an operating activity and cash payments made to taxing authorities on the employee’s behalf for withheld shares should be classified as financing activity. The ASU is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently analyzing the impact of this new pronouncement. |
Acquisition
Acquisition | 3 Months Ended |
Sep. 25, 2016 | |
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 subsequent two years, additional cash payments totaling up to $4.6 million may be made to the former APEI shareholders. Payments totaling $2.8 million were made to the former APEI shareholders in July 2016 based on achievement of the first year goals. The Company expects that the second year goals will also be achieved. In connection with this acquisition, APEI became a wholly owned subsidiary of the Company, renamed Cree Fayetteville, Inc. (Cree Fayetteville). Cree Fayetteville is not considered a significant subsidiary of the Company and its results from operations were reported as part of the Company's Power and RF Products segment prior to the classification of the Wolfspeed business as discontinued operations and is discussed more fully in Note 2, "Discontinued Operations." The total purchase price for this acquisition was 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 Prior to the classification of the Wolfspeed business as discontinued operations, the identifiable intangible assets acquired as a result of the acquisition were being 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 7 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. The IPR&D was completed in January 2016. 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. |
Discontinued Operations
Discontinued Operations | 3 Months Ended |
Sep. 25, 2016 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Disposal Groups, Including Discontinued Operations, Disclosure [Text Block] | Note 2 – Discontinued Operations On July 13, 2016, the Company executed an Asset Purchase Agreement (the APA) with Infineon. The transaction, which was approved by both the Company’s Board of Directors and Infineon’s Supervisory Board, is expected to close by the end of calendar year 2016, subject to customary closing conditions and governmental approvals. Pursuant to the APA, the Company will sell to Infineon, and Infineon will (i) purchase from the Company (a) the assets comprising the Company’s Power and RF Products segment, including manufacturing facilities and equipment, inventory, intellectual property rights, contracts, real estate, and the outstanding equity interests of Cree Fayetteville, Inc, one of the Company’s wholly-owned subsidiaries, and (b) certain related portions of the Company’s SiC materials and gemstones business previously included within the LED Products segment and (ii) assume certain liabilities related to the Wolfspeed business. The Company will retain certain liabilities associated with the Wolfspeed business arising prior to the closing of the transaction. Infineon is expected to hire most of the Company’s approximately 564 Wolfspeed employees either at the closing of the transaction or following a transition period. The purchase price for the Wolfspeed business will be $850 million in cash, which is subject to certain adjustments. In connection with the transaction, the Company and Infineon will also enter into certain ancillary and related agreements, including (i) an intellectual property assignment and license agreement, which will assign to Infineon certain intellectual property owned by the Company and license to Infineon certain additional intellectual property owned by the Company, (ii) a transition services agreement, which is designed to ensure a smooth transition of the Wolfspeed business to Infineon, and (iii) a wafer supply agreement, pursuant to which the Company will supply Infineon with silicon carbide wafers and silicon carbide boules for a transitional period of time. The APA contains customary representations, warranties and covenants, including covenants to cooperate in seeking regulatory approvals, as well as the Company’s agreement to not compete with the Wolfspeed business for five years following the closing of the transaction and to indemnify Infineon for certain damages that Infineon may suffer following the closing of the transaction. Infineon's obligation to purchase the Wolfspeed business is subject to the satisfaction or waiver of a number of conditions set forth in the APA, including regulatory approval under the Hart-Scott-Rodino Antitrust Improvements Act of 1976 and certain similar non-U.S. regulations, the approval of the Committee on Foreign Investment in the United States and other customary closing conditions. The APA provides for customary termination rights of the parties and also provides that in the event the APA is terminated for certain specified regulatory-related circumstances, Infineon may be required to pay the Company a termination fee ranging from $12.5 million to $42.5 million. The Company has classified the results of the Wolfspeed business as discontinued operations in the Company’s consolidated statements of income (loss) for all periods presented. The Company ceased recording depreciation and amortization of long-lived assets of the Wolfspeed business upon classification as discontinued operations in July 2016. Additionally, the related assets and liabilities associated with the discontinued operations are classified as held for sale in the consolidated balance sheets. The assets and liabilities held for sale as of September 25, 2016 are classified as current in the consolidated balance sheet as the Company expects the transaction to close within one year. The following table presents the financial results of the Wolfspeed business as income from discontinued operations, net of income taxes in the Company's consolidated statements of income (loss) (in thousands): Three Months Ended September 25, 2016 September 27, 2015 Revenue, net $49,902 $43,939 Cost of revenue, net 26,314 20,548 Gross profit 23,588 23,391 Total operating expenses 18,654 21,514 Income from discontinued operations before income taxes 4,934 1,877 Income tax expense 1,510 630 Income from discontinued operations, net of income taxes $3,424 $1,247 The following table presents the assets and liabilities related to the Wolfspeed business held for sale (in thousands): September 25, 2016 June 26, 2016 Assets Held For Sale Accounts receivable, net $28,794 $26,839 Prepaid and other Current Assets 1,491 1,369 Inventories 19,005 21,871 Property and equipment, net 224,773 214,934 Intangible assets, net 44,352 43,409 Goodwill 100,769 100,769 Total Assets Held for Sale* $419,184 $409,191 Liabilities Held for Sale Accounts payable $12,470 $9,477 Accrued salaries and wages 3,740 4,514 Other accrued liabilities 2,173 971 Other long term liabilities — 1,850 Total Liabilities Held for Sale* $18,383 $16,812 *Amounts in the June 26th, 2016 column are classified as current and long-term in the consolidated balance sheet. The following table presents the cash flow of the Wolfspeed business (in thousands): Three Months Ended September 25, 2016 September 27, 2015 Net cash provided by discontinued operating activities $9,138 $12,868 Net cash used in discontinued investing activities $12,507 $53,049 |
Financial Statement Details
Financial Statement Details | 3 Months Ended |
Sep. 25, 2016 | |
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): September 25, 2016 June 26, 2016 Billed trade receivables $194,218 $188,672 Unbilled contract receivables 192 59 194,410 188,731 Allowance for sales returns, discounts and other incentives (42,802 ) (44,543 ) Allowance for bad debts (5,541 ) (5,416 ) Accounts receivable, net $146,067 $138,772 Inventories The following table summarizes the components of inventories (in thousands): September 25, 2016 June 26, 2016 Raw material $74,159 $79,957 Work-in-progress 87,552 84,459 Finished goods 129,822 117,255 Inventories $291,533 $281,671 Other Current Liabilities The following table summarizes the components of other current liabilities (in thousands): September 25, 2016 June 26, 2016 Accrued taxes $11,887 $12,023 Accrued professional fees 6,411 7,959 Accrued warranty 18,495 20,102 Accrued other 5,147 5,017 Other current liabilities $41,940 $45,101 Accumulated Other Comprehensive Income, net of taxes The following table summarizes the components of accumulated other comprehensive income, net of taxes (in thousands): September 25, 2016 June 26, 2016 Currency translation gain $4,653 $4,624 Net unrealized gain on available-for-sale securities 3,784 4,104 Accumulated other comprehensive income, net of taxes $8,437 $8,728 Non-Operating Expense, net The following table summarizes the components of non-operating expense, net (in thousands): Three Months Ended September 25, 2016 September 27, 2015 Foreign currency gain (loss), net $1,361 ($4,294 ) Gain on sale of investments, net 12 2 Loss on equity investment (2,487 ) (19,948 ) Interest income, net 887 1,297 Other, net 69 140 Non-operating expense, net ($158 ) ($22,803 ) 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 September 25, 2016 September 27, 2015 Net unrealized gain on available-for-sale securities, net of taxes $12 $2 Non-operating expense 12 2 Loss from continuing operations before income taxes 9 1 Income tax benefit $3 $1 Loss from continuing operations |
Investments
Investments | 3 Months Ended |
Sep. 25, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | Investments Investments consist of municipal bonds, corporate bonds, commercial paper 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): September 25, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Municipal bonds $183,585 $2,775 ($50 ) $186,310 Corporate bonds 165,897 3,347 (43 ) 169,201 Non-U.S. certificates of deposit 93,103 — — 93,103 U.S. certificates of deposit 8,791 — — 8,791 Commercial paper $3,802 $— $— 3,802 Total short-term investments $455,178 $6,122 ($93 ) $461,207 June 26, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Municipal bonds $186,893 $3,562 ($15 ) $190,440 Corporate bonds 165,766 3,074 (73 ) 168,767 Non-U.S. certificates of deposit 73,127 — — 73,127 U.S. certificates of deposit 3,500 — — 3,500 Commercial paper 3,317 — — 3,317 Total short-term investments $432,603 $6,636 ($88 ) $439,151 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): September 25, 2016 Less than 12 Months Greater than 12 Months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $17,003 ($41 ) $1,620 ($9 ) $18,623 ($50 ) Corporate bonds 12,632 (30 ) 2,487 (13 ) 15,119 (43 ) Total $29,635 ($71 ) $4,107 ($22 ) $33,742 ($93 ) Number of securities with an unrealized loss 30 3 33 June 26, 2016 Less than 12 Months Greater than 12 Months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $2,936 ($9 ) $3,535 ($6 ) $6,471 ($15 ) Corporate bonds 27,578 (73 ) — — 27,578 (73 ) Total $30,514 ($82 ) $3,535 ($6 ) $34,049 ($88 ) Number of securities with an unrealized loss 22 3 25 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 expense 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 September 25, 2016 and June 26, 2016 . The contractual maturities of short-term investments as of September 25, 2016 were as follows (in thousands): Within One Year After One, Within Five Years After Five, Within Ten Years After Ten Years Total Municipal bonds $43,513 $110,598 $32,199 $— $186,310 Corporate bonds 22,617 108,207 38,377 — 169,201 Non-U.S. certificates of deposit 93,103 — — — 93,103 U.S. certificates of deposit 5,791 3,000 — — 8,791 Commercial paper $3,802 $— $— $— 3,802 Total short-term investments $168,826 $221,805 $70,576 $— $461,207 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Sep. 25, 2016 | |
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 September 25, 2016 , 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 September 25, 2016 . There were no transfers between Level 1 and Level 2 during the three months ended September 25, 2016 . The following table sets forth financial instruments carried at fair value within the U.S. GAAP hierarchy (in thousands): September 25, 2016 June 26, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents: U.S. agency securities $— $— $— $— $— $— $— $— Non-U.S. certificates of deposit — 137 — 137 — 137 — 137 Money market funds 1,360 — — 1,360 576 — — 576 Total cash equivalents 1,360 137 — 1,497 576 137 — 713 Short-term investments: Municipal bonds — 186,310 — 186,310 — 190,440 — 190,440 Corporate bonds — 169,201 — 169,201 — 168,767 — 168,767 U.S. certificates of deposit — 8,791 — 8,791 — 3,500 — 3,500 Commercial paper — 3,802 — 3,802 — 3,317 — 3,317 Non-U.S. certificates of deposit — 93,103 — 93,103 — 73,127 — 73,127 Total short-term investments — 461,207 — 461,207 — 439,151 — 439,151 Other long-term investments: Common stock of non-U.S. corporations — 39,049 — 39,049 — 40,179 — 40,179 Total other long-term investments — 39,049 — 39,049 — 40,179 — 40,179 Total assets $1,360 $500,393 $— $501,753 $576 $479,467 $— $480,043 |
Intangible Assets
Intangible Assets | 3 Months Ended |
Sep. 25, 2016 | |
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): September 25, 2016 June 26, 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets with finite lives: Customer relationships $136,920 ($78,591 ) $58,329 $136,920 ($77,313 ) $59,607 Developed technology 162,760 (114,864 ) 47,896 162,760 (110,204 ) 52,556 Non-compete agreements 10,244 (10,244 ) — 10,244 (9,917 ) 327 Trade names, finite-lived 520 (520 ) — 520 (520 ) — Patent and licensing rights 106,273 (39,610 ) 66,663 105,035 (37,805 ) 67,230 Total intangible assets with finite lives 416,717 (243,829 ) 172,888 415,479 (235,759 ) 179,720 Trade names, indefinite-lived 79,680 — 79,680 79,680 — 79,680 Total intangible assets $496,397 ($243,829 ) $252,568 $495,159 ($235,759 ) $259,400 For the three months ended September 25, 2016 , total amortization of finite-lived intangible assets was $9.4 million . For the three months ended September 27, 2015 , total amortization of finite-lived intangible assets was $9.2 million . Total future amortization expense of finite-lived intangible assets is estimated to be as follows (in thousands): Fiscal Year Ending June 25, 2017 (remainder of fiscal 2017) $24,096 June 24, 2018 31,319 June 30, 2019 18,683 June 28, 2020 14,680 June 27, 2021 13,430 Thereafter 70,680 Total future amortization expense $172,888 |
Long-term Debt
Long-term Debt | 3 Months Ended |
Sep. 25, 2016 | |
Long-term Debt, Unclassified [Abstract] | |
Long-term Debt | Long-term Debt As of September 25, 2016 , 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 September 25, 2016 , the Company had $187 million outstanding under the line of credit and $313 million available for borrowing. For the three months ended September 25, 2016 , the average interest rate was 1.41% . For the three months ended September 25, 2016 the average commitment fee percentage was 0.09% . The Company was in compliance with all covenants in the line of credit at September 25, 2016 . |
Shareholders' Equity
Shareholders' Equity | 3 Months Ended |
Sep. 25, 2016 | |
Stockholders' Equity Note [Abstract] | |
Shareholders' Equity | Shareholders’ Equity As of September 25, 2016 , 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 $300 million for all purchases from August 24, 2016 through the expiration of the program on June 25, 2017 . During the three months ended September 25, 2016 , the Company repurchased 1.5 million shares of common stock for $35.7 million under the stock repurchase program. |
Earnings Per Share
Earnings Per Share | 3 Months Ended |
Sep. 25, 2016 | |
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 September 25, September 27, Loss from continuing operations ($2,858 ) ($25,736 ) Income from discontinued operations, net of tax 3,424 1,247 Net income (loss) $566 ($24,489 ) Weighted average common shares 100,559 103,473 Basic loss per share from continuing operations ($0.03 ) ($0.25 ) Basic earnings per share from discontinued operations 0.03 0.01 Earnings (loss) per share-basic $— ($0.24 ) 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 September 25, September 27, Loss from continuing operations ($2,858 ) ($25,736 ) Income from discontinued operations, net of tax 3,424 1,247 Net income (loss) $566 ($24,489 ) Weighted average common shares - basic 100,559 103,473 Dilutive effect of stock options, nonvested shares and Employee Stock Purchase Plan purchase rights — — Weighted average common shares - diluted 100,559 103,473 Diluted earnings (loss) per share from continuing operations ($0.03 ) ($0.25 ) Diluted earnings (loss) per share from discontinued operations 0.03 0.01 Earnings (loss) per share-diluted $— ($0.24 ) 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 months ended September 25, 2016 , there were 11.4 million of potential common shares not included in the calculation of diluted earnings (loss) per share because their effect was anti-dilutive. For the three months ended September 27, 2015 , there were 7.7 million 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 | 3 Months Ended |
Sep. 25, 2016 | |
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 September 25, 2016 and changes during the three months then ended (numbers of shares in thousands): Number of Shares Weighted Average Exercise Price Outstanding at June 26, 2016 11,247 $40.42 Granted 1,651 $24.42 Exercised (16 ) $25.90 Forfeited or expired (666 ) $37.53 Outstanding at September 25, 2016 12,216 $38.43 Restricted Stock Awards and Units A summary of nonvested restricted stock awards (RSAs) and restricted stock unit awards (RSUs) outstanding as of September 25, 2016 , and changes during the three 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 26, 2016 1,631 $31.66 Granted 1,091 $24.40 Vested (536 ) $34.38 Forfeited (18 ) $27.43 Nonvested at September 25, 2016 2,168 $27.37 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 September 25, September 27, Income Statement Classification: Cost of revenue, net $2,779 $2,622 Research and development 2,606 2,631 Sales, general and administrative 7,635 7,712 Income from discontinued operations, net of tax 1,630 2,109 Total stock-based compensation expense $14,650 $15,074 |
Income Taxes
Income Taxes | 3 Months Ended |
Sep. 25, 2016 | |
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 the impact of the Company’s pre-tax income or loss relative to favorable tax rate impacts associated predominantly with the Company’s: (i) projected income for the full year derived from international locations with lower tax rates than the U.S. and (ii) projected tax credits generated. Tax credits and other deductions have the impact of increasing the tax rate above the statutory rate of 35% in periods in which the Company reports pre-tax losses as they provide a benefit that is recoverable in future periods. 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 26, 2016 , the Company's liability for unrecognized tax benefits was $17.7 million . During the three months ended September 25, 2016 , the Company did not record any material movement in its unrecognized tax benefits. As a result, the total liability for unrecognized tax benefits as of September 25, 2016 was $17.7 million . If any portion of this $17.7 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 $4.3 million of gross unrecognized tax benefits will change in the next 12 months as a result of audit closures and 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 2013. For U.S. state tax returns, the Company is generally no longer subject to tax examinations for fiscal years prior to 2012. For foreign purposes, the Company is generally no longer subject to tax examinations for tax periods 2006 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. During the fourth quarter of fiscal 2016, the Company concluded it is likely that sufficient future taxable income needed to fully utilize net operating loss carryovers in Luxembourg will not be generated due to additional losses on the Company’s equity investment held there. The Company recorded a $9.5 million valuation allowance against the related deferred tax asset, representing the $32.4 million net operating loss carryover net of tax. During the three months ended September 25, 2016, the Company recorded an additional $0.3 million valuation allowance against the loss carryover deferred tax asset as a result of the $1.1 million year-to-date loss on the equity investment held in Luxembourg. |
Commitments and Contingencies
Commitments and Contingencies | 3 Months Ended |
Sep. 25, 2016 | |
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 26, 2016 $21,426 Warranties accrued in current period 5,520 Recall costs accrued in current period — Expenditures (7,093 ) Balance at September 25, 2016 $19,853 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 September 25, 2016 , $1.4 million of the Company's product warranty liabilities were classified as long-term. The Company has voluntarily recalled 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 | 3 Months Ended |
Sep. 25, 2016 | |
Segment Reporting [Abstract] | |
Reportable Segments | Reportable Segments The Company's operating and reportable segments are: • Lighting Products • LED Products As discussed more fully in Note 2, “Discontinued Operations,” on July 13, 2016, the Company executed a definitive agreement to sell the Wolfspeed business to Infineon. As a result, the Company has classified the results of the Wolfspeed business as discontinued operations in its consolidated statements of income (loss) for all periods presented. For comparative purposes, the prior segment results have been revised to conform to the current segment presentation. 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 and LED components. 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 months ended September 25, 2016 and September 27, 2015 . 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 loss from continuing operations 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 September 25, September 27, Revenue: Lighting Products revenue $183,836 $248,031 LED Products revenue 137,493 133,518 Total revenue $321,329 $381,549 Gross Profit and Gross Margin: Lighting Products gross profit $49,290 $69,081 Lighting Products gross margin 26.8 % 27.9 % LED Products gross profit 41,770 41,869 LED Products gross margin 30.4 % 31.4 % Total segment gross profit 91,060 110,950 Unallocated costs (4,719 ) (3,758 ) Consolidated gross profit $86,341 $107,192 Consolidated gross margin 26.9 % 28.1 % 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): September 25, June 26, Lighting Products $183,529 $172,261 LED Products 103,540 104,544 Total segment inventories 287,069 276,805 Unallocated inventories 4,464 4,866 Consolidated inventories $291,533 $281,671 |
Costs Associated with LED Busin
Costs Associated with LED Business Restructuring | 3 Months Ended |
Sep. 25, 2016 | |
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 restructuring activity ended in the second quarter of fiscal 2016. The Company incurred a total of $ 102.4 million , of which $4.9 million related to discontinued operations, pursuant to this restructuring plan. See Note 18, "Costs Associated with LED Business Restructuring" in Part II, Item 8 of the Company's Form 10K for the fiscal year ended June 26, 2016 for additional information. The following table summarizes the actual charges incurred for the three months ended September 27, 2015 (in thousands): Capacity and Overhead Cost Reductions Amounts incurred for the three months ended September 27, 2015 Affected Line Item in the Consolidated Statements of Income (Loss) Loss on disposal or impairment of long-lived assets $9,005 Loss on disposal or impairment of long-lived assets Loss on disposal or impairment of long-lived assets 4,873 Income from discontinued operations, net of tax Severance expense 300 Sales, general and administrative expenses Lease termination and facility consolidation costs 1,735 Sales, general and administrative expenses Total restructuring charges $15,913 |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 3 Months Ended |
Sep. 25, 2016 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Basis of Presentation | Basis of Presentation The consolidated balance sheet at September 25, 2016 , the consolidated statements of income (loss) for the three months ended September 25, 2016 and September 27, 2015 , the consolidated statements of comprehensive income (loss) for the three months ended September 25, 2016 and September 27, 2015 , and the consolidated statements of cash flows for the three months ended September 25, 2016 and September 27, 2015 (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, comprehensive income and cash flows at September 25, 2016 , and for all periods presented, have been made. All intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 26, 2016 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 26, 2016 (fiscal 2016 ). The results of operations for the three months ended September 25, 2016 are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 25, 2017 (fiscal 2017 ). 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 2016 amounts in the accompanying consolidated financial statements have been reclassified to conform to the fiscal 2017 presentation. These reclassifications had no effect on previously reported consolidated net income or shareholders’ equity. |
Comparability of Prior Period Financial Data | Revision of Prior Period Financial Statements During the third quarter of fiscal 2016, the Company identified errors in its previously reported financial statements in which amortization expense was understated as certain patents were being amortized over a life longer than the life of the underlying patent right. The Company assessed the materiality of these errors on prior periods’ financial statements in accordance with the United States Securities and Exchange Commission (SEC) Staff Accounting Bulletin (SAB) No. 99, Materiality, codified in the Accounting Standards Codification (ASC) 250, Presentation of Financial Statements, and concluded that they were not material individually or in the aggregate to any prior annual or interim periods. However, through the second quarter of fiscal 2016 the aggregate amount of the prior period errors of $6.8 million before income taxes would have been material to the Company's interim Consolidated Statements of Income (Loss) for the third quarter of fiscal 2016. Consequently, in accordance with ASC 250, the Company corrected these errors, and other immaterial errors, for all prior periods presented by revising the consolidated financial statements and other financial information included herein. Periods not presented herein will be revised, as applicable in future filings. The following table summarizes the effects of the revision on the consolidated statements of income (loss) (in thousands): Three Months Ended September 27, 2015 As Reported Revision Adjustments As Revised Cost of revenue, net $273,256 $1,101 $274,357 Gross profit 108,293 (1,101 ) 107,192 Operating loss (10,644 ) (1,101 ) (11,745 ) Loss from continuing operations before income taxes (33,447 ) (1,101 ) (34,548 ) Income tax benefit (8,528 ) (284 ) (8,812 ) Loss from continuing operations (24,919 ) (817 ) (25,736 ) Income (loss) from discontinued operations, net of tax 1,296 (49 ) 1,247 Net income (loss) ($23,623 ) ($866 ) ($24,489 ) (Loss) earnings per share-basic Continuing operations ($0.24 ) ($0.01 ) ($0.25 ) Discontinued operations 0.01 — 0.01 (Loss) earnings per share-basic ($0.23 ) ($0.01 ) ($0.24 ) (Loss) earnings per share-diluted Continuing operations ($0.24 ) ($0.01 ) ($0.25 ) Discontinued operations 0.01 — 0.01 (Loss) earnings per share-diluted ($0.23 ) ($0.01 ) ($0.24 ) The revision had no net impact on the Company’s net cash provided by operating activities. |
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 FASB has subsequently issued multiple ASUs which amend and clarify the guidance in 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. Leases In February 2016, the FASB issued ASU No. 2016-02: Leases (Topic 842). The ASU requires that a lessee recognize in its statement of financial position a liability to make lease payments (the lease liability) and a right-of-use asset representing its right to use the underlying asset for the lease term. The asset will be based on the liability, subject to adjustment, such as for initial direct costs. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize lease assets and lease liabilities. For income statement purposes, leases are still required to be classified as either operating or finance. Operating leases will result in straight-line expense while finance leases will result in a front-loaded expense pattern. The effective date will be the first quarter of the Company's fiscal year ending June 28, 2020, using a modified retrospective approach. The Company is currently analyzing the impact of this new pronouncement. Stock Compensation In March 2016, the FASB issued ASU No. 2016-09: Compensation-Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting. The ASU simplifies the current stock compensation guidance for tax consequences. The ASU requires an entity to recognize all excess tax benefits and tax deficiencies as income tax expense or benefit in its income statement. The ASU also eliminates the requirement to defer recognition of an excess tax benefit until the benefit is realized through a reduction to taxes payable. For cash flows statement purposes, excess tax benefits should be classified as an operating activity and cash payments made to taxing authorities on the employee’s behalf for withheld shares should be classified as financing activity. The ASU is effective for public companies for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years. The Company is currently analyzing the impact of this new pronouncement. |
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 months ended September 25, 2016 and September 27, 2015 . 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 loss from continuing operations 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. |
Basis of Presentation and New24
Basis of Presentation and New Accounting Standards Revision of Prior Period Financial Statements (Tables) | 3 Months Ended |
Sep. 25, 2016 | |
Accounting Changes and Error Corrections [Abstract] | |
Schedule of error corrections and prior period adjustments | The following table summarizes the effects of the revision on the consolidated statements of income (loss) (in thousands): Three Months Ended September 27, 2015 As Reported Revision Adjustments As Revised Cost of revenue, net $273,256 $1,101 $274,357 Gross profit 108,293 (1,101 ) 107,192 Operating loss (10,644 ) (1,101 ) (11,745 ) Loss from continuing operations before income taxes (33,447 ) (1,101 ) (34,548 ) Income tax benefit (8,528 ) (284 ) (8,812 ) Loss from continuing operations (24,919 ) (817 ) (25,736 ) Income (loss) from discontinued operations, net of tax 1,296 (49 ) 1,247 Net income (loss) ($23,623 ) ($866 ) ($24,489 ) (Loss) earnings per share-basic Continuing operations ($0.24 ) ($0.01 ) ($0.25 ) Discontinued operations 0.01 — 0.01 (Loss) earnings per share-basic ($0.23 ) ($0.01 ) ($0.24 ) (Loss) earnings per share-diluted Continuing operations ($0.24 ) ($0.01 ) ($0.25 ) Discontinued operations 0.01 — 0.01 (Loss) earnings per share-diluted ($0.23 ) ($0.01 ) ($0.24 ) |
Acquisition (Tables)
Acquisition (Tables) | 3 Months Ended |
Sep. 25, 2016 | |
Business Combinations [Abstract] | |
Schedule of Business Acquisitions, by Acquisition [Table Text Block] | The total purchase price for this acquisition was 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] | he identifiable intangible assets acquired as a result of the acquisition were being 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 7 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. |
Discontinued Operations Discont
Discontinued Operations Discontinued Operations (Tables) | 3 Months Ended |
Sep. 25, 2016 | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Disclosure of Long Lived Assets Held-for-sale [Table Text Block] | The following table presents the assets and liabilities related to the Wolfspeed business held for sale (in thousands): September 25, 2016 June 26, 2016 Assets Held For Sale Accounts receivable, net $28,794 $26,839 Prepaid and other Current Assets 1,491 1,369 Inventories 19,005 21,871 Property and equipment, net 224,773 214,934 Intangible assets, net 44,352 43,409 Goodwill 100,769 100,769 Total Assets Held for Sale* $419,184 $409,191 Liabilities Held for Sale Accounts payable $12,470 $9,477 Accrued salaries and wages 3,740 4,514 Other accrued liabilities 2,173 971 Other long term liabilities — 1,850 Total Liabilities Held for Sale* $18,383 $16,812 |
Disposal Groups, Including Discontinued Operations [Table Text Block] | The following table presents the financial results of the Wolfspeed business as income from discontinued operations, net of income taxes in the Company's consolidated statements of income (loss) (in thousands): Three Months Ended September 25, 2016 September 27, 2015 Revenue, net $49,902 $43,939 Cost of revenue, net 26,314 20,548 Gross profit 23,588 23,391 Total operating expenses 18,654 21,514 Income from discontinued operations before income taxes 4,934 1,877 Income tax expense 1,510 630 Income from discontinued operations, net of income taxes $3,424 $1,247 |
Financial Statement Details (Ta
Financial Statement Details (Tables) | 3 Months Ended |
Sep. 25, 2016 | |
Financial Statement Details [Abstract] | |
Summary of the Components of Accounts Receivable, Net | The following table summarizes the components of accounts receivable, net (in thousands): September 25, 2016 June 26, 2016 Billed trade receivables $194,218 $188,672 Unbilled contract receivables 192 59 194,410 188,731 Allowance for sales returns, discounts and other incentives (42,802 ) (44,543 ) Allowance for bad debts (5,541 ) (5,416 ) Accounts receivable, net $146,067 $138,772 |
Summary of the Components of Inventories | The following table summarizes the components of inventories (in thousands): September 25, 2016 June 26, 2016 Raw material $74,159 $79,957 Work-in-progress 87,552 84,459 Finished goods 129,822 117,255 Inventories $291,533 $281,671 |
Summary of the Components of Other Current Liabilities | The following table summarizes the components of other current liabilities (in thousands): September 25, 2016 June 26, 2016 Accrued taxes $11,887 $12,023 Accrued professional fees 6,411 7,959 Accrued warranty 18,495 20,102 Accrued other 5,147 5,017 Other current liabilities $41,940 $45,101 |
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): September 25, 2016 June 26, 2016 Currency translation gain $4,653 $4,624 Net unrealized gain on available-for-sale securities 3,784 4,104 Accumulated other comprehensive income, net of taxes $8,437 $8,728 |
Summary of the Components of Non-operating Income, Net | The following table summarizes the components of non-operating expense, net (in thousands): Three Months Ended September 25, 2016 September 27, 2015 Foreign currency gain (loss), net $1,361 ($4,294 ) Gain on sale of investments, net 12 2 Loss on equity investment (2,487 ) (19,948 ) Interest income, net 887 1,297 Other, net 69 140 Non-operating expense, net ($158 ) ($22,803 ) |
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 September 25, 2016 September 27, 2015 Net unrealized gain on available-for-sale securities, net of taxes $12 $2 Non-operating expense 12 2 Loss from continuing operations before income taxes 9 1 Income tax benefit $3 $1 Loss from continuing operations |
Investments (Tables)
Investments (Tables) | 3 Months Ended |
Sep. 25, 2016 | |
Investments, Debt and Equity Securities [Abstract] | |
Summary of Short-term Investments by Type | The following tables summarize short-term investments (in thousands): September 25, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Municipal bonds $183,585 $2,775 ($50 ) $186,310 Corporate bonds 165,897 3,347 (43 ) 169,201 Non-U.S. certificates of deposit 93,103 — — 93,103 U.S. certificates of deposit 8,791 — — 8,791 Commercial paper $3,802 $— $— 3,802 Total short-term investments $455,178 $6,122 ($93 ) $461,207 June 26, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Municipal bonds $186,893 $3,562 ($15 ) $190,440 Corporate bonds 165,766 3,074 (73 ) 168,767 Non-U.S. certificates of deposit 73,127 — — 73,127 U.S. certificates of deposit 3,500 — — 3,500 Commercial paper 3,317 — — 3,317 Total short-term investments $432,603 $6,636 ($88 ) $439,151 |
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): September 25, 2016 Less than 12 Months Greater than 12 Months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $17,003 ($41 ) $1,620 ($9 ) $18,623 ($50 ) Corporate bonds 12,632 (30 ) 2,487 (13 ) 15,119 (43 ) Total $29,635 ($71 ) $4,107 ($22 ) $33,742 ($93 ) Number of securities with an unrealized loss 30 3 33 June 26, 2016 Less than 12 Months Greater than 12 Months Total Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $2,936 ($9 ) $3,535 ($6 ) $6,471 ($15 ) Corporate bonds 27,578 (73 ) — — 27,578 (73 ) Total $30,514 ($82 ) $3,535 ($6 ) $34,049 ($88 ) Number of securities with an unrealized loss 22 3 25 |
Contractual Maturities of Short-term Investments by Type | The contractual maturities of short-term investments as of September 25, 2016 were as follows (in thousands): Within One Year After One, Within Five Years After Five, Within Ten Years After Ten Years Total Municipal bonds $43,513 $110,598 $32,199 $— $186,310 Corporate bonds 22,617 108,207 38,377 — 169,201 Non-U.S. certificates of deposit 93,103 — — — 93,103 U.S. certificates of deposit 5,791 3,000 — — 8,791 Commercial paper $3,802 $— $— $— 3,802 Total short-term investments $168,826 $221,805 $70,576 $— $461,207 |
Fair Value of Financial Instr29
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Sep. 25, 2016 | |
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): September 25, 2016 June 26, 2016 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents: U.S. agency securities $— $— $— $— $— $— $— $— Non-U.S. certificates of deposit — 137 — 137 — 137 — 137 Money market funds 1,360 — — 1,360 576 — — 576 Total cash equivalents 1,360 137 — 1,497 576 137 — 713 Short-term investments: Municipal bonds — 186,310 — 186,310 — 190,440 — 190,440 Corporate bonds — 169,201 — 169,201 — 168,767 — 168,767 U.S. certificates of deposit — 8,791 — 8,791 — 3,500 — 3,500 Commercial paper — 3,802 — 3,802 — 3,317 — 3,317 Non-U.S. certificates of deposit — 93,103 — 93,103 — 73,127 — 73,127 Total short-term investments — 461,207 — 461,207 — 439,151 — 439,151 Other long-term investments: Common stock of non-U.S. corporations — 39,049 — 39,049 — 40,179 — 40,179 Total other long-term investments — 39,049 — 39,049 — 40,179 — 40,179 Total assets $1,360 $500,393 $— $501,753 $576 $479,467 $— $480,043 |
Intangible Assets (Tables)
Intangible Assets (Tables) | 3 Months Ended |
Sep. 25, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Components of intangible assets, net | The following table presents the components of intangible assets, net (in thousands): September 25, 2016 June 26, 2016 Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets with finite lives: Customer relationships $136,920 ($78,591 ) $58,329 $136,920 ($77,313 ) $59,607 Developed technology 162,760 (114,864 ) 47,896 162,760 (110,204 ) 52,556 Non-compete agreements 10,244 (10,244 ) — 10,244 (9,917 ) 327 Trade names, finite-lived 520 (520 ) — 520 (520 ) — Patent and licensing rights 106,273 (39,610 ) 66,663 105,035 (37,805 ) 67,230 Total intangible assets with finite lives 416,717 (243,829 ) 172,888 415,479 (235,759 ) 179,720 Trade names, indefinite-lived 79,680 — 79,680 79,680 — 79,680 Total intangible assets $496,397 ($243,829 ) $252,568 $495,159 ($235,759 ) $259,400 |
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 25, 2017 (remainder of fiscal 2017) $24,096 June 24, 2018 31,319 June 30, 2019 18,683 June 28, 2020 14,680 June 27, 2021 13,430 Thereafter 70,680 Total future amortization expense $172,888 |
Earnings Per Share (Tables)
Earnings Per Share (Tables) | 3 Months Ended |
Sep. 25, 2016 | |
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 September 25, September 27, Loss from continuing operations ($2,858 ) ($25,736 ) Income from discontinued operations, net of tax 3,424 1,247 Net income (loss) $566 ($24,489 ) Weighted average common shares 100,559 103,473 Basic loss per share from continuing operations ($0.03 ) ($0.25 ) Basic earnings per share from discontinued operations 0.03 0.01 Earnings (loss) per share-basic $— ($0.24 ) |
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 September 25, September 27, Loss from continuing operations ($2,858 ) ($25,736 ) Income from discontinued operations, net of tax 3,424 1,247 Net income (loss) $566 ($24,489 ) Weighted average common shares - basic 100,559 103,473 Dilutive effect of stock options, nonvested shares and Employee Stock Purchase Plan purchase rights — — Weighted average common shares - diluted 100,559 103,473 Diluted earnings (loss) per share from continuing operations ($0.03 ) ($0.25 ) Diluted earnings (loss) per share from discontinued operations 0.03 0.01 Earnings (loss) per share-diluted $— ($0.24 ) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 3 Months Ended |
Sep. 25, 2016 | |
Share-based Compensation [Abstract] | |
Summary of Outstanding Option Awards | The following table summarizes stock option awards outstanding as of September 25, 2016 and changes during the three months then ended (numbers of shares in thousands): Number of Shares Weighted Average Exercise Price Outstanding at June 26, 2016 11,247 $40.42 Granted 1,651 $24.42 Exercised (16 ) $25.90 Forfeited or expired (666 ) $37.53 Outstanding at September 25, 2016 12,216 $38.43 |
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 September 25, 2016 , and changes during the three 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 26, 2016 1,631 $31.66 Granted 1,091 $24.40 Vested (536 ) $34.38 Forfeited (18 ) $27.43 Nonvested at September 25, 2016 2,168 $27.37 |
Summary of Total Stock-Based Compensation Expense | Total stock-based compensation expense was as follows (in thousands): Three Months Ended September 25, September 27, Income Statement Classification: Cost of revenue, net $2,779 $2,622 Research and development 2,606 2,631 Sales, general and administrative 7,635 7,712 Income from discontinued operations, net of tax 1,630 2,109 Total stock-based compensation expense $14,650 $15,074 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 3 Months Ended |
Sep. 25, 2016 | |
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 26, 2016 $21,426 Warranties accrued in current period 5,520 Recall costs accrued in current period — Expenditures (7,093 ) Balance at September 25, 2016 $19,853 |
Reportable Segments (Tables)
Reportable Segments (Tables) | 3 Months Ended |
Sep. 25, 2016 | |
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 September 25, September 27, Revenue: Lighting Products revenue $183,836 $248,031 LED Products revenue 137,493 133,518 Total revenue $321,329 $381,549 Gross Profit and Gross Margin: Lighting Products gross profit $49,290 $69,081 Lighting Products gross margin 26.8 % 27.9 % LED Products gross profit 41,770 41,869 LED Products gross margin 30.4 % 31.4 % Total segment gross profit 91,060 110,950 Unallocated costs (4,719 ) (3,758 ) Consolidated gross profit $86,341 $107,192 Consolidated gross margin 26.9 % 28.1 % Inventories for each of the Company's segments were as follows (in thousands): September 25, June 26, Lighting Products $183,529 $172,261 LED Products 103,540 104,544 Total segment inventories 287,069 276,805 Unallocated inventories 4,464 4,866 Consolidated inventories $291,533 $281,671 |
Costs Associated with LED Bus35
Costs Associated with LED Business Restructuring Costs Associated with LED Business Restructuring (Tables) | 3 Months Ended |
Sep. 25, 2016 | |
Restructuring and Related Activities [Abstract] | |
Restructuring and Related Costs [Table Text Block] | The following table summarizes the actual charges incurred for the three months ended September 27, 2015 (in thousands): Capacity and Overhead Cost Reductions Amounts incurred for the three months ended September 27, 2015 Affected Line Item in the Consolidated Statements of Income (Loss) Loss on disposal or impairment of long-lived assets $9,005 Loss on disposal or impairment of long-lived assets Loss on disposal or impairment of long-lived assets 4,873 Income from discontinued operations, net of tax Severance expense 300 Sales, general and administrative expenses Lease termination and facility consolidation costs 1,735 Sales, general and administrative expenses Total restructuring charges $15,913 |
Basis of Presentation and New36
Basis of Presentation and New Accounting Standards Narrative (Details) | 3 Months Ended |
Sep. 25, 2016reportable_segments | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of Reportable Segments | 2 |
Basis of Presentation and New37
Basis of Presentation and New Accounting Standards Revision of Prior Period Financial Statements (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |||
Sep. 25, 2016 | Dec. 27, 2015 | Sep. 27, 2015 | Jun. 26, 2016 | |
Revision of Prior Period Financial Statement [Line Items] | ||||
Intangible assets, net | $ 252,568 | $ 259,400 | ||
Deferred income taxes | 38,708 | 38,564 | ||
Total assets | 2,752,755 | 2,766,060 | ||
Deferred income taxes | 945 | 943 | ||
Total long-term liabilities | 199,621 | 175,237 | ||
Retained earnings | (35,710) | (613) | ||
Total shareholders' equity | 2,342,259 | 2,367,824 | ||
Total liabilities and shareholders' equity | 2,752,755 | $ 2,766,060 | ||
Gross profit | 86,341 | $ 107,192 | ||
Operating loss | (10,143) | (11,745) | ||
Loss from continuing operations before income taxes | (10,301) | (34,548) | ||
Income tax benefit | (7,443) | (8,812) | ||
Loss from continuing operations | (2,858) | (25,736) | ||
Net income (loss) | 566 | (24,489) | ||
Income from discontinued operations, net of tax | $ 3,424 | $ 1,247 | ||
Basic | $ 0 | $ (0.24) | ||
Continuing operations, basic | (0.03) | (0.25) | ||
Discontinued operations, basic | 0.03 | 0.01 | ||
Diluted | 0 | (0.24) | ||
Continuing operations, diluted | (0.03) | (0.25) | ||
Discontinued operations, diluted | $ 0.03 | $ 0.01 | ||
As Previously Reported | ||||
Revision of Prior Period Financial Statement [Line Items] | ||||
Cost of revenue, net | $ 273,256 | |||
Gross profit | 108,293 | |||
Operating loss | (10,644) | |||
Loss from continuing operations before income taxes | (33,447) | |||
Income tax benefit | (8,528) | |||
Loss from continuing operations | (24,919) | |||
Net income (loss) | (23,623) | |||
Income from discontinued operations, net of tax | $ 1,296 | |||
Basic | $ (0.23) | |||
Continuing operations, basic | (0.24) | |||
Discontinued operations, basic | 0.01 | |||
Diluted | (0.23) | |||
Continuing operations, diluted | (0.24) | |||
Discontinued operations, diluted | $ 0.01 | |||
As Revised | ||||
Revision of Prior Period Financial Statement [Line Items] | ||||
Cost of revenue, net | $ 274,357 | |||
Gross profit | 107,192 | |||
Operating loss | (11,745) | |||
Loss from continuing operations before income taxes | (34,548) | |||
Income tax benefit | (8,812) | |||
Loss from continuing operations | $ (25,736) | |||
Basic | $ (0.24) | |||
Diluted | $ (0.24) | |||
Revision Adjustments | ||||
Revision of Prior Period Financial Statement [Line Items] | ||||
Cost of revenue, net | $ 1,101 | |||
Gross profit | (1,101) | |||
Operating loss | (1,101) | |||
Loss from continuing operations before income taxes | $ 6,800 | (1,101) | ||
Income tax benefit | (284) | |||
Loss from continuing operations | (817) | |||
Restatement Adjustment [Member] | ||||
Revision of Prior Period Financial Statement [Line Items] | ||||
Net income (loss) | (866) | |||
Income from discontinued operations, net of tax | $ (49) | |||
Basic | $ (0.01) | |||
Continuing operations, basic | (0.01) | |||
Discontinued operations, basic | 0 | |||
Diluted | (0.01) | |||
Continuing operations, diluted | (0.01) | |||
Discontinued operations, diluted | $ 0 |
Acquisition Acquisition (Detail
Acquisition Acquisition (Details) $ in Thousands | 3 Months Ended |
Sep. 25, 2016USD ($) | |
Purchase Price Allocation [Line Items] | |
Business Combination, Contingent Consideration Arrangements, Change in Amount of Contingent Consideration, Liability | $ 2,800 |
Cash consideration paid to shareholders | 13,797 |
Business Combination, Contingent Consideration, Liability | 4,600 |
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 |
Finite-lived intangible assets | 23,739 |
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] | |
Finite-lived intangible assets | $ 7,565 |
Estimated Life in Years | 7 years |
Non-compete agreements | |
Purchase Price Allocation [Line Items] | |
Finite-lived intangible assets | $ 231 |
Estimated Life in Years | 3 years |
Total tangible assets | |
Purchase Price Allocation [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | $ 3,638 |
Goodwill | |
Purchase Price Allocation [Line Items] | |
Goodwill | 2,483 |
Total intangible assets | |
Purchase Price Allocation [Line Items] | |
Business Combination, Recognized Identifiable Assets Acquired and Liabilities Assumed, Assets | 26,222 |
Total liabilities assumed | |
Purchase Price Allocation [Line Items] | |
Total liabilities assumed | $ 11,257 |
Discontinued Operations Disco39
Discontinued Operations Discontinued Operations (Details) | 3 Months Ended | 6 Months Ended | |||
Sep. 25, 2016USD ($) | Sep. 27, 2015USD ($) | Dec. 31, 2016USD ($) | Dec. 30, 2016USD ($) | Jun. 26, 2016USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Document Period End Date | Sep. 25, 2016 | ||||
Cash Provided by (Used in) Operating Activities, Discontinued Operations | $ 9,138,000,000 | $ 12,868,000,000 | |||
Disposal Group, Including Discontinued Operation, Revenue | 49,902,000 | 43,939,000 | |||
Disposal Group, Including Discontinued Operation, Costs of Goods Sold | 26,314,000 | 20,548,000 | |||
Disposal Group, Including Discontinued Operation, Gross Profit (Loss) | 23,588,000 | 23,391,000 | |||
Disposal Group, Including Discontinued Operation, Operating Expense | 18,654,000 | 21,514,000 | |||
Discontinued Operation, Income (Loss) from Discontinued Operation, before Income Tax | 4,934,000 | 1,877,000 | |||
Discontinued Operation, Tax Effect of Discontinued Operation | 1,510,000 | 630,000 | |||
Income from discontinued operations, net of tax | 3,424,000 | 1,247,000 | |||
Disposal Group, Including Discontinued Operation, Accounts, Notes and Loans Receivable, Net | 28,794,000 | $ 26,839,000 | |||
Disposal Group, Including Discontinued Operation, Prepaid and Other Assets | 1,491,000 | 1,369,000 | |||
Disposal Group, Including Discontinued Operation, Inventory | 19,005,000 | 21,871,000 | |||
Disposal Group, Including Discontinued Operation, Property, Plant and Equipment | 224,773,000 | 214,934,000 | |||
Disposal Group, Including Discontinued Operation, Intangible Assets | 44,352,000 | 43,409,000 | |||
Disposal Group, Including Discontinued Operation, Goodwill | 100,769,000 | 100,769,000 | |||
Disposal Group, Including Discontinued Operation, Assets | 419,184,000 | 409,191,000 | |||
Disposal Group, Including Discontinued Operation, Accounts Payable | 12,470,000 | 9,477,000 | |||
Disposal Group, Including Discontinued Operation, Other Liabilities, Current | 3,740,000 | 4,514,000 | |||
Disposal Group, Including Discontinued Operation, Accrued Liabilities | 2,173,000 | 971,000 | |||
Long-term liabilities held for sale | 0 | 1,850,000 | |||
Disposal Group, Including Discontinued Operation, Liabilities | 18,383,000 | $ 16,812,000 | |||
Cash Provided by (Used in) Investing Activities, Discontinued Operations | $ 12,507,000,000 | $ 53,049,000,000 | |||
Subsequent Event [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Disposal group, number of employees | 564 | ||||
Proceeds from Divestiture of Businesses | $ 850 | ||||
Subsequent Event [Member] | Minimum [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (Loss) on Contract Termination | $ 12.5 | ||||
Subsequent Event [Member] | Maximum [Member] | |||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||
Gain (Loss) on Contract Termination | $ 42.5 |
Financial Statement Details (Su
Financial Statement Details (Summary of the Components of Accounts Receivable, Net) (Details) - USD ($) $ in Thousands | Sep. 25, 2016 | Jun. 26, 2016 |
Accounts Receivable, Net, Current [Abstract] | ||
Accounts receivable, gross | $ 194,410 | $ 188,731 |
Allowance for bad debts | (5,541) | (5,416) |
Accounts receivable, net | 146,067 | 138,772 |
Allowance for sales returns, discounts and other incentives [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Allowance for sales returns, discounts and other incentives | (42,802) | (44,543) |
Billed trade receivables [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Accounts receivable, gross | 194,218 | 188,672 |
Unbilled contract receivables [Member] | ||
Accounts Receivable, Net, Current [Abstract] | ||
Accounts receivable, gross | $ 192 | $ 59 |
Financial Statement Details (41
Financial Statement Details (Summary of the Components of Inventories) (Details) - USD ($) $ in Thousands | Sep. 25, 2016 | Jun. 26, 2016 |
Inventory, Net [Abstract] | ||
Raw material | $ 74,159 | $ 79,957 |
Work-in-progress | 87,552 | 84,459 |
Finished goods | 129,822 | 117,255 |
Inventories | $ 291,533 | $ 281,671 |
Financial Statement Details (42
Financial Statement Details (Summary of the Components of Other Current Liabilities) (Details) - USD ($) $ in Thousands | Sep. 25, 2016 | Jun. 26, 2016 |
Accrued Liabilities, Current [Abstract] | ||
Accrued taxes | $ 11,887 | $ 12,023 |
Accrued professional fees | 6,411 | 7,959 |
Accrued warranty | 18,495 | 20,102 |
Accrued other | 5,147 | 5,017 |
Other current liabilities | $ 41,940 | $ 45,101 |
Financial Statement Details (43
Financial Statement Details (Summary of the Components of Accumulated Other Comprehensive Income, Net of Taxes) (Details) - USD ($) $ in Thousands | Sep. 25, 2016 | Jun. 26, 2016 |
Financial Statement Details [Abstract] | ||
Currency translation gain | $ 4,653 | $ 4,624 |
Net unrealized gain on available-for-sale securities | 3,784 | 4,104 |
Accumulated other comprehensive income, net of taxes | $ 8,437 | $ 8,728 |
Financial Statement Details (44
Financial Statement Details (Summary of the Components of Non-operating Income, Net) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Other Income and Expenses [Abstract] | ||
Foreign currency gain (loss), net | $ 1,361 | $ (4,294) |
Gain on sale of investments, net | 12 | 2 |
Loss on equity investment | (2,487) | (19,948) |
Interest income, net | 887 | 1,297 |
Other, net | 69 | 140 |
Non-operating expense, net | $ (158) | $ (22,803) |
Financial Statement Details (45
Financial Statement Details (Summary of the Amounts Reclassified Out of Accumulated Other Comprehensive Income) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Reclassification Out of Accumulated Other Comprehensive Income [Line Items] | ||
Non-operating expense | $ (158) | $ (22,803) |
Loss from continuing operations before income taxes | (10,301) | (34,548) |
Income tax benefit | (7,443) | (8,812) |
Net income (loss) | 566 | (24,489) |
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 expense | 12 | 2 |
Loss from continuing operations before income taxes | 12 | 2 |
Income tax benefit | 9 | 1 |
Net income (loss) | $ 3 | $ 1 |
Investments (Summary of Short-t
Investments (Summary of Short-term Investments by Type) (Details) - USD ($) $ in Thousands | Sep. 25, 2016 | Jun. 26, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | $ 461,207 | $ 439,151 |
Amortized Cost | 455,178 | 432,603 |
Gross Unrealized Gains | 6,122 | 6,636 |
Gross Unrealized Losses | (93) | (88) |
Estimated Fair Value | 461,207 | 439,151 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 186,310 | |
Amortized Cost | 183,585 | 186,893 |
Gross Unrealized Gains | 2,775 | 3,562 |
Gross Unrealized Losses | (50) | (15) |
Estimated Fair Value | 186,310 | 190,440 |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 169,201 | |
Amortized Cost | 165,897 | 165,766 |
Gross Unrealized Gains | 3,347 | 3,074 |
Gross Unrealized Losses | (43) | (73) |
Estimated Fair Value | 169,201 | 168,767 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Amortized Cost | 3,802 | 3,317 |
Estimated Fair Value | 3,802 | 3,317 |
U.S. | Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 93,103 | |
Amortized Cost | 8,791 | 3,500 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 8,791 | 3,500 |
Non-US [Member] | Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | 8,791 | |
Amortized Cost | 93,103 | 73,127 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 93,103 | $ 73,127 |
Non-US [Member] | Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Available-for-sale Securities, Debt Securities, Current | $ 3,802 |
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 | Sep. 25, 2016USD ($) | Jun. 26, 2016USD ($) |
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | $ 29,635 | $ 30,514 |
Unrealized Loss, Less than 12 Months | (71) | (82) |
Fair Value, Greater than 12 Months | 4,107 | 3,535 |
Unrealized Loss, Greater than 12 Months | (22) | (6) |
Fair Value, Total | 33,742 | 34,049 |
Unrealized Loss, Total | $ (93) | $ (88) |
Number of Securities with an Unrealized Loss, Less than 12 Months | 30 | 22 |
Number of Securities with an Unrealized Loss, Greater than 12 Months | 3 | 3 |
Number of Securities with an Unrealized Loss, Total | 33 | 25 |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | $ 17,003 | $ 2,936 |
Unrealized Loss, Less than 12 Months | (41) | (9) |
Fair Value, Greater than 12 Months | 1,620 | 3,535 |
Unrealized Loss, Greater than 12 Months | (9) | (6) |
Fair Value, Total | 18,623 | 6,471 |
Unrealized Loss, Total | (50) | (15) |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Fair Value, Less than 12 Months | 12,632 | 27,578 |
Unrealized Loss, Less than 12 Months | (30) | (73) |
Fair Value, Greater than 12 Months | 2,487 | 0 |
Unrealized Loss, Greater than 12 Months | (13) | 0 |
Fair Value, Total | 15,119 | 27,578 |
Unrealized Loss, Total | $ (43) | $ (73) |
Investments (Contractual Maturi
Investments (Contractual Maturities of Short-term Investments by Type) (Details) - USD ($) $ in Thousands | Sep. 25, 2016 | Jun. 26, 2016 |
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | $ 168,826 | |
After One, Within Five Years | 221,805 | |
After Five, Within Ten Years | 70,576 | |
After Ten Years | 0 | |
Total | 461,207 | $ 439,151 |
Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | 3,802 | |
Municipal Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | 43,513 | |
After One, Within Five Years | 110,598 | |
After Five, Within Ten Years | 32,199 | |
After Ten Years | 0 | |
Total | 186,310 | |
Corporate Bonds [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | 22,617 | |
After One, Within Five Years | 108,207 | |
After Five, Within Ten Years | 38,377 | |
After Ten Years | 0 | |
Total | 169,201 | |
U.S. | Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | 93,103 | |
After One, Within Five Years | 0 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 93,103 | |
Non-US [Member] | Commercial Paper [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Total | 3,802 | |
Non-US [Member] | Certificates of Deposit [Member] | ||
Schedule of Available-for-sale Securities [Line Items] | ||
Within One Year | 5,791 | |
After One, Within Five Years | 3,000 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | $ 8,791 |
Fair Value of Financial Instr49
Fair Value of Financial Instruments (Financial Instruments Carried at Fair Value) (Details) - USD ($) $ in Thousands | Sep. 25, 2016 | Jun. 26, 2016 |
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 | 461,207 | $ 439,151 |
Other long-term investments | 39,049 | 40,179 |
Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 1,497 | 713 |
Short-term investments | 461,207 | 439,151 |
Other long-term investments | 39,049 | 40,179 |
Total assets | 501,753 | 480,043 |
Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 1,360 | 576 |
Short-term investments | 0 | 0 |
Other long-term investments | 0 | 0 |
Total assets | 1,360 | 576 |
Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 137 | 137 |
Short-term investments | 461,207 | 439,151 |
Other long-term investments | 39,049 | 40,179 |
Total assets | 500,393 | 479,467 |
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 | 186,310 | 190,440 |
Municipal Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 186,310 | 190,440 |
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 | 186,310 | 190,440 |
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 | 169,201 | 168,767 |
Corporate Bonds [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 169,201 | 168,767 |
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 | 169,201 | 168,767 |
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 | 39,049 | 40,179 |
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 | 39,049 | 40,179 |
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 |
Commercial Paper [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 3,802 | 3,317 |
Commercial Paper [Member] | Level 2 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 3,802 | 3,317 |
US Government Agencies Debt Securities [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 0 | 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 | 0 | 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 | 137 | 137 |
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 | 137 | 137 |
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 | 1,360 | 576 |
Money Market Funds [Member] | Level 1 [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Cash equivalents | 1,360 | 576 |
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 | 8,791 | 3,500 |
U.S. | Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 8,791 | 3,500 |
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 | 8,791 | 3,500 |
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 | 93,103 | 73,127 |
Non-US [Member] | Certificates of Deposit [Member] | Fair Value, Measurements, Recurring [Member] | ||
Assets, Fair Value Disclosure [Abstract] | ||
Short-term investments | 93,103 | 73,127 |
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 | 93,103 | 73,127 |
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 | Sep. 25, 2016 | Jun. 26, 2016 |
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | $ 416,717 | $ 415,479 |
Finite-lived intangible assets, accumulated amortization | (243,829) | (235,759) |
Finite-lived intangible assets, net | 172,888 | 179,720 |
Trade names, indefinite-lived | 79,680 | 79,680 |
Intangible Assets, Gross (Excluding Goodwill) | 496,397 | 495,159 |
Intangible assets, net | 252,568 | 259,400 |
Customer relationships | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 136,920 | 136,920 |
Finite-lived intangible assets, accumulated amortization | (78,591) | (77,313) |
Finite-lived intangible assets, net | 58,329 | 59,607 |
Developed technology | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 162,760 | 162,760 |
Finite-lived intangible assets, accumulated amortization | (114,864) | (110,204) |
Finite-lived intangible assets, net | 47,896 | 52,556 |
Non-compete agreements | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 10,244 | 10,244 |
Finite-lived intangible assets, accumulated amortization | (10,244) | (9,917) |
Finite-lived intangible assets, net | 0 | 327 |
Trade names, finite-lived | ||
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 | ||
Intangible Assets [Line Items] | ||
Finite-lived intangible assets, gross | 106,273 | 105,035 |
Finite-lived intangible assets, accumulated amortization | (39,610) | (37,805) |
Finite-lived intangible assets, net | $ 66,663 | $ 67,230 |
Intangible Assets Intangible As
Intangible Assets Intangible Assets (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
Amortization of Intangible Assets | $ 9.4 | $ 9.2 |
Intangible Assets Intangible 52
Intangible Assets Intangible Assets (Schedule of future amortization expense of finite-lived intangible assets) (Details) - USD ($) $ in Thousands | Sep. 25, 2016 | Jun. 26, 2016 |
Goodwill and Intangible Assets Disclosure [Abstract] | ||
June 25, 2017 (remainder of fiscal 2017) | $ 24,096 | |
June 24, 2018 | 31,319 | |
June 30, 2019 | 18,683 | |
June 28, 2020 | 14,680 | |
June 27, 2021 | 13,430 | |
Thereafter | 70,680 | |
Finite-lived intangible assets, net | $ 172,888 | $ 179,720 |
Long-term Debt (Narrative) (Det
Long-term Debt (Narrative) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 25, 2016 | Jun. 26, 2016 | |
Long-term Debt, Unclassified [Abstract] | ||
Line of Credit Facility, Maximum Borrowing Capacity | $ 500,000 | |
Long-term debt | 187,000 | $ 160,000 |
Line of Credit Facility, Remaining Borrowing Capacity | $ 313,000 | |
Long-term Debt, Average Interest Rate | 1.41% | |
Line of Credit Facility, Unused Capacity, Commitment Fee Percentage | 0.09% |
Shareholders' Equity (Narrative
Shareholders' Equity (Narrative) (Details) - Common Stock [Member] shares in Millions, $ in Millions | 3 Months Ended |
Sep. 25, 2016USD ($)shares | |
Class of Stock [Line Items] | |
Stock Repurchase Program, Authorized Amount | $ 300 |
Repurchased share number | shares | 1.5 |
Repurchased share value | $ 35.7 |
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 | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Earnings Per Share, Basic [Abstract] | ||
Loss from continuing operations | $ (2,858) | $ (25,736) |
Income from discontinued operations, net of tax | 3,424 | 1,247 |
Net income (loss) | $ 566 | $ (24,489) |
Weighted average common shares - basic | 100,559 | 103,473 |
Continuing operations, basic | $ (0.03) | $ (0.25) |
Discontinued operations, basic | 0.03 | 0.01 |
Basic earnings (loss) per share | $ 0 | $ (0.24) |
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 | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Earnings Per Share, Diluted [Abstract] | ||
Loss from continuing operations | $ (2,858) | $ (25,736) |
Income from discontinued operations, net of tax | 3,424 | 1,247 |
Net income (loss) | $ 566 | $ (24,489) |
Weighted average common shares - basic | 100,559 | 103,473 |
Weighted average common shares - diluted | 100,559 | 103,473 |
Diluted earnings (loss) per share from continuing operations | $ (0.03) | $ (0.25) |
Diluted earnings (loss) per share from discontinued operations | 0.03 | 0.01 |
Diluted earnings (loss) per share | $ 0 | $ (0.24) |
Earnings Per Share (Narrative)
Earnings Per Share (Narrative) (Details) - shares shares in Millions | 3 Months Ended | |
Sep. 25, 2016 | Sep. 27, 2015 | |
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 | 11.4 | 7.7 |
Stock-Based Compensation (Narra
Stock-Based Compensation (Narrative) (Details) | 3 Months Ended |
Sep. 25, 2016plans | |
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 | 3 Months Ended |
Sep. 25, 2016$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award, Options, Outstanding [Roll Forward] | |
Outstanding number of shares at beginning of period | shares | 11,247 |
Granted, number of shares | shares | 1,651 |
Exercised, number of shares | shares | (16) |
Forfeited or expired, number of shares | shares | (666) |
Outstanding number of shares at end of period | shares | 12,216 |
Outstanding weighted-average exercise price at beginning of period | $ / shares | $ 40.42 |
Granted, weighted-average exercise price | $ / shares | 24.42 |
Exercised, weighted-average exercise price | $ / shares | 25.90 |
Forfeited or expired, weighted-average exercise price | $ / shares | 37.53 |
Outstanding weighted-average exercised price at end of period | $ / shares | $ 38.43 |
Stock-Based Compensation (Sum60
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 | 3 Months Ended |
Sep. 25, 2016$ / 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 | 1,631 |
Granted, Number of RSAs/RSUs | shares | 1,091 |
Vested, number of RSAs/RSUs | shares | (536) |
Forfeited, number of RSAs/RSUs | shares | (18) |
Nonvested, Number of RSAs/RSUs at end of period | shares | 2,168 |
Nonvested, weighted-average grant-date fair value at beginning of period | $ / shares | $ 31.66 |
Granted, weighted-average grant-date fair value | $ / shares | 24.40 |
Vested, weighted-average grant-date fair value | $ / shares | 34.38 |
Forfeited, weighted-average grant-date fair value | $ / shares | 27.43 |
Nonvested, weighted-average grant-date fair value at end of period | $ / shares | $ 27.37 |
Stock-Based Compensation (Total
Stock-Based Compensation (Total Stock-Based Compensation Expense) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 14,650 | $ 15,074 |
Cost of revenue, net [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 2,779 | 2,622 |
Research and development [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 2,606 | 2,631 |
Selling, general and administrative [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | 7,635 | 7,712 |
Wolfspeed business [Member] | ||
Share-based Compensation Arrangement by Share-based Payment Award, Compensation Cost [Line Items] | ||
Total stock-based compensation expense | $ 1,630 | $ 2,109 |
Income Taxes (Narrative) (Detai
Income Taxes (Narrative) (Details) - USD ($) $ in Millions | 3 Months Ended | |
Sep. 25, 2016 | Jun. 26, 2016 | |
Operating Loss Carryforwards [Line Items] | ||
U.S. statutory tax rate | 35.00% | |
Unrecognized tax benefits balance | $ 17.7 | $ 17.7 |
Document Period End Date | Sep. 25, 2016 | |
Unrecognized Tax Benefits that Would Impact Effective Tax Rate | $ 17.7 | |
Significant Change in Unrecognized Tax Benefits is Reasonably Possible, Amount of Unrecorded Benefit | 4.3 | |
Income (Loss) from Equity Method Investments | 1.1 | |
Foreign Tax Authority [Member] | ||
Operating Loss Carryforwards [Line Items] | ||
Valuation Allowance, Deferred Tax Asset, Increase (Decrease), Amount | $ 0.3 | 9.5 |
Net operating loss carryovers offset by valuation allowance, amount | $ 32.4 |
Commitments and Contingencies63
Commitments and Contingencies (Warranties) (Details) $ in Thousands | 3 Months Ended |
Sep. 25, 2016USD ($) | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |
Warranty accrual, beginning balance | $ 21,426 |
Warranties accrued in current period | 5,520 |
Recall costs accrued in current period | 0 |
Expenditures | (7,093) |
Warranty accrual, ending balance | 19,853 |
Product Warranty Liability, Long-Term | $ 1,400 |
Minimum [Member] | |
Movement in Standard and Extended Product Warranty Accrual, Increase (Decrease) [Roll Forward] | |
Product Warranty, Range Period | 90 days |
Maximum [Member] | |
Movement in Standard and Extended Product Warranty Accrual, 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 | |
Sep. 25, 2016 | Sep. 27, 2015 | |
Segment Reporting Information [Line Items] | ||
Revenue, net | $ 321,329 | $ 381,549 |
Gross profit | $ 86,341 | $ 107,192 |
Gross margin | 26.90% | 28.10% |
Lighting Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | $ 183,836 | $ 248,031 |
Gross profit | $ 49,290 | $ 69,081 |
Gross margin | 26.80% | 27.90% |
LED Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Revenue, net | $ 137,493 | $ 133,518 |
Gross profit | $ 41,770 | $ 41,869 |
Gross margin | 30.40% | 31.40% |
Total segment gross profit [Member] | ||
Segment Reporting Information [Line Items] | ||
Gross profit | $ 91,060 | $ 110,950 |
Unallocated Costs [Member] | ||
Segment Reporting Information [Line Items] | ||
Gross profit | $ (4,719) | $ (3,758) |
Reportable Segments Schedule of
Reportable Segments Schedule of Inventory by Reportable Segment (Details) - USD ($) $ in Thousands | Sep. 25, 2016 | Jun. 26, 2016 |
Segment Reporting Information [Line Items] | ||
Inventories | $ 291,533 | $ 281,671 |
Lighting Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | 183,529 | 172,261 |
LED Products [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | 103,540 | 104,544 |
Total segment inventories [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | 287,069 | 276,805 |
Unallocated inventories [Member] | ||
Segment Reporting Information [Line Items] | ||
Inventories | $ 4,464 | $ 4,866 |
Costs Associated with LED Bus66
Costs Associated with LED Business Restructuring Costs Associated with LED Business Restructuring (Details) - USD ($) $ in Thousands | 3 Months Ended | 9 Months Ended |
Sep. 25, 2016 | Dec. 27, 2015 | |
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost | $ 15,913 | $ 102,400 |
Loss on disposal or impairment of long-lived assets | Loss on disposal or impairment of long-lived assets | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost | 9,005 | |
Severance expense | Sales, general and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost | 300 | |
Lease termination and facility consolidation costs | Sales, general and administrative expenses | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost | 1,735 | |
Wolfspeed business [Member] | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost | $ 4,900 | |
Wolfspeed business [Member] | Loss on disposal or impairment of long-lived assets | Loss on disposal or impairment of long-lived assets | ||
Restructuring Cost and Reserve [Line Items] | ||
Restructuring and related cost, incurred cost | $ 4,873 |