Cover Page
Cover Page - USD ($) | 12 Months Ended | ||
Jun. 27, 2021 | Aug. 12, 2021 | Dec. 24, 2020 | |
Cover [Abstract] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Jun. 27, 2021 | ||
Current Fiscal Year End Date | --06-27 | ||
Document Transition Report | false | ||
Entity File Number | 0-21154 | ||
Entity Registrant Name | CREE, INC | ||
Entity Incorporation, State or Country Code | NC | ||
Entity Tax Identification Number | 56-1572719 | ||
Entity Address, Address Line One | 4600 Silicon Drive | ||
Entity Address, City or Town | Durham | ||
Entity Address, State or Province | NC | ||
Entity Address, Postal Zip Code | 27703 | ||
City Area Code | 919 | ||
Local Phone Number | 407-5300 | ||
Title of 12(b) Security | Common Stock, $0.00125 par value | ||
Trading Symbol | CREE | ||
Security Exchange Name | NASDAQ | ||
Entity Well-known Seasoned Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
ICFR Auditor Attestation Flag | true | ||
Entity Shell Company | false | ||
Entity Public Float | $ 11,353,289,108 | ||
Entity Common Stock, Shares Outstanding | 115,885,032 | ||
Documents Incorporated by Reference | Portions of the definitive Proxy Statement to be delivered to shareholders in connection with the Annual Meeting of Shareholders to be held October 25, 2021 are incorporated by reference into Part III. | ||
Entity Central Index Key | 0000895419 | ||
Document Fiscal Year Focus | 2021 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 |
Current assets: | ||
Cash and cash equivalents | $ 379 | $ 448.8 |
Short-term investments | 775.6 | 790.9 |
Total cash, cash equivalents and short-term investments | 1,154.6 | 1,239.7 |
Accounts receivable, net | 95.9 | 72.4 |
Inventories | 166.6 | 121.9 |
Income taxes receivable | 6.4 | 6.6 |
Prepaid expenses | 25.7 | 26.2 |
Other current assets | 27.9 | 8.7 |
Current assets held for sale | 1.6 | 1.3 |
Current assets of discontinued operations | 0 | 116 |
Total current assets | 1,478.7 | 1,592.8 |
Property and equipment, net | 1,292.3 | 770.8 |
Goodwill | 359.2 | 349.7 |
Intangible assets, net | 140.5 | 156.9 |
Long-term receivables | 138.4 | 0 |
Other long-term investments | 0 | 55.9 |
Deferred tax assets | 1 | 1.2 |
Other assets | 35.5 | 33.6 |
Long-term assets of discontinued operations | 1.2 | 270.1 |
Total assets | 3,446.8 | 3,231 |
Current liabilities: | ||
Accounts payable and accrued expenses | 381.1 | 189.8 |
Accrued contract liabilities | 22.9 | 14.2 |
Income taxes payable | 0.4 | 1.2 |
Finance lease liabilities | 5.2 | 3.6 |
Other current liabilities | 38.6 | 22.2 |
Current liabilities of discontinued operations | 0.6 | 60.2 |
Total current liabilities | 448.8 | 291.2 |
Long-term liabilities: | ||
Convertible notes, net | 823.9 | 783.8 |
Deferred tax liabilities | 2.5 | 1.8 |
Finance lease liabilities - long-term | 10 | 11.4 |
Other long-term liabilities | 44.5 | 43.8 |
Long-term liabilities of discontinued operations | 0.6 | 9.8 |
Total long-term liabilities | 881.5 | 850.6 |
Commitments and contingencies | ||
Shareholders’ equity: | ||
Preferred stock, par value $0.01; 3,000 shares authorized at June 27, 2021 and June 28, 2020; none issued and outstanding | 0 | 0 |
Common stock, par value $0.00125; 200,000 shares authorized at June 27, 2021 and June 28, 2020; 115,691 and 109,230 shares issued and outstanding at June 27, 2021 and June 28, 2020, respectively | 0.1 | 0.1 |
Additional paid-in-capital | 3,676.8 | 3,106.2 |
Accumulated other comprehensive income | 2.7 | 16 |
Accumulated deficit | (1,563.1) | (1,039.2) |
Total shareholders’ equity | 2,116.5 | 2,083.1 |
Noncontrolling interest from discontinued operations | 0 | 6.1 |
Total equity | 2,116.5 | 2,089.2 |
Total liabilities and shareholders’ equity | $ 3,446.8 | $ 3,231 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares | Jun. 27, 2021 | Jun. 28, 2020 |
Shareholders’ equity: | ||
Preferred stock, par value (USD per share) | $ 0.01 | $ 0.01 |
Preferred stock authorized (shares) | 3,000,000 | 3,000,000 |
Preferred stock issued (shares) | 0 | 0 |
Preferred stock outstanding (shares) | 0 | 0 |
Common stock, par value (USD per share) | $ 0.00125 | $ 0.00125 |
Common stock authorized (shares) | 200,000,000 | 200,000,000 |
Common stock issued (shares) | 115,691,000 | 109,230,000 |
Common stock outstanding (shares) | 115,691,000 | 109,230,000 |
CONSOLIDATED STATEMENTS OF OPER
CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Thousands, $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Income Statement [Abstract] | |||
Revenue, net | $ 525.6 | $ 470.7 | $ 538.2 |
Cost of revenue, net | 361 | 312.2 | 294.5 |
Gross profit | 164.6 | 158.5 | 243.7 |
Operating expenses: | |||
Research and development | 177.8 | 152 | 121.1 |
Sales, general and administrative | 181.6 | 181.7 | 168.9 |
Amortization or impairment of acquisition-related intangibles | 14.5 | 14.5 | 15.6 |
Abandonment of long-lived assets | 73.9 | 0 | 0 |
Loss on disposal or impairment of other assets | 1.6 | 1.5 | 5 |
Other operating expense | 29.1 | 32.9 | 26.6 |
Operating loss | (313.9) | (224.1) | (93.5) |
Non-operating expense (income), net | 26.3 | (18.5) | 29.4 |
Loss before income taxes | (340.2) | (205.6) | (122.9) |
Income tax expense (benefit) | 1.1 | (8) | (4.4) |
Net loss from continuing operations | (341.3) | (197.6) | (118.5) |
Net (loss) income from discontinued operations | (181.2) | 7 | (256.6) |
Net loss | (522.5) | (190.6) | (375.1) |
Net income from discontinued operations attributable to noncontrolling interest | 1.4 | 1.1 | 0 |
Net loss attributable to controlling interest | $ (523.9) | $ (191.7) | $ (375.1) |
Basic and diluted loss per share | |||
Continuing operations attributable to controlling interest - basic (USD per share) | $ (3.04) | $ (1.83) | $ (1.14) |
Continuing operations attributable to controlling interest - diluted (USD per share) | (3.04) | (1.83) | (1.14) |
Net loss attributable to controlling interest - basic (USD per share) | (4.66) | (1.78) | (3.62) |
Net loss attributable to controlling interest - diluted (USD per share) | $ (4.66) | $ (1.78) | $ (3.62) |
Weighted average shares - basic (in thousands) (shares) | 112,346 | 107,935 | 103,576 |
Weighted average shares - basic (in thousands) (shares) | 112,346 | 107,935 | 103,576 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | |||
Net loss | $ (522.5) | $ (190.6) | $ (375.1) |
Other comprehensive income (loss): | |||
Currency translation gain | 0 | 0 | 4.4 |
Reclassification of currency translation gain to loss on sale of discontinued operations | (9.5) | 0 | 0 |
Net unrealized (loss) gain on available-for-sale securities | (3.8) | 6.5 | 4.5 |
Comprehensive loss | (535.8) | (184.1) | (366.2) |
Net income from discontinued operations attributable to noncontrolling interest | 1.4 | 1.1 | 0 |
Comprehensive loss attributable to controlling interest | $ (537.2) | $ (185.2) | $ (366.2) |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Operating activities: | |||
Net loss | $ (522.5) | $ (190.6) | $ (375.1) |
Net (loss) income from discontinued operations | (181.2) | 7 | (256.6) |
Net loss from continuing operations | (341.3) | (197.6) | (118.5) |
Adjustments to reconcile net loss from continuing operations to cash (used in) provided by operating activities: | |||
Depreciation and amortization | 120.9 | 97.1 | 86.2 |
Amortization of debt issuance costs and discount, net of capitalized interest | 32.8 | 26.2 | 18.3 |
Gain on partial extinguishment of debt | 0 | (11) | 0 |
Stock-based compensation | 53.2 | 47.2 | 42.9 |
Abandonment of long-lived assets | 73.9 | 0 | 0 |
Loss on disposal or impairment of long-lived assets | 5 | 4.5 | 5 |
Amortization of premium/discount on investments | 6.9 | 1.7 | 2.3 |
Realized (gain) loss on sale of investments | (0.4) | (1.5) | 0.1 |
(Gain) loss on equity investment | (8.3) | (14.2) | 16.2 |
Foreign exchange (gain) loss on equity investment | (2.2) | (2.2) | 1.3 |
Deferred income taxes | 0.9 | (0.5) | (0.6) |
Changes in operating assets and liabilities: | |||
Accounts receivable, net | (23.5) | (3.2) | (10.4) |
Inventories | (44.6) | (8.5) | (24.3) |
Prepaid expenses and other assets | (20) | (3) | (3.6) |
Accounts payable, trade | 21.7 | (7.2) | 24.3 |
Accrued salaries and wages and other liabilities | 15.3 | (24.9) | 40.8 |
Accrued contract liabilities | (2.8) | 5.5 | 17.2 |
Net cash (used in) provided by operating activities of continuing operations | (112.5) | (91.6) | 97.2 |
Net cash (used in) provided by operating activities of discontinued operations | (13) | 62.6 | 105.1 |
Cash (used in) provided by operating activities | (125.5) | (29) | 202.3 |
Investing activities: | |||
Purchases of property and equipment | (570.5) | (229.9) | (124.7) |
Purchases of patent and licensing rights | (5.9) | (4.4) | (3.3) |
Proceeds from sale of property and equipment, including insurance proceeds | 2.3 | 2.6 | 0.3 |
Purchases of short-term investments | (475) | (821.4) | (517.2) |
Proceeds from maturities of short-term investments | 428.3 | 460.6 | 177.4 |
Proceeds from sale of short-term investments | 51.7 | 118 | 46.4 |
Reimbursement of property and equipment purchases from long-term incentive agreement | 10.7 | 0 | 0 |
Proceeds from sale of business, net | 43.7 | 0 | 219 |
Proceeds from sale of long-term investment | 66.4 | 0 | 0 |
Net cash used in investing activities of continuing operations | (448.3) | (474.5) | (202.1) |
Net cash used in investing activities of discontinued operations | (0.3) | (12.4) | (25) |
Cash used in investing activities | (448.6) | (486.9) | (227.1) |
Financing activities: | |||
Proceeds from long-term debt borrowings | 30 | 0 | 95 |
Payments on long-term debt borrowings, including finance lease obligations | (30.4) | (145.1) | (387) |
Proceeds from issuance of common stock | 539.7 | 76.4 | 158 |
Tax withholding on vested equity awards | (36.2) | (16.9) | (21.6) |
Proceeds from convertible notes | 0 | 575 | 575 |
Payments of debt issuance costs | 0 | (13.6) | (12.9) |
Refunds on incentive-related escrow deposits | 1.5 | 0 | 0 |
Incentive-related refundable escrow deposits | 0 | (11.5) | 0 |
Commitment fee on long-term incentive agreement | (0.5) | 0 | 0 |
Net cash provided by financing activities of continuing operations | 504.1 | 464.3 | 406.5 |
Effects of foreign exchange changes on cash and cash equivalents | 0.2 | (0.1) | (0.1) |
Net change in cash and cash equivalents | (69.8) | (51.7) | 381.6 |
Cash and cash equivalents, beginning of period | 448.8 | 500.5 | 118.9 |
Cash and cash equivalents, end of period | $ 379 | $ 448.8 | $ 500.5 |
CONSOLIDATED STATEMENTS OF SHAR
CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Millions | Total | Convertible Notes due September 1, 2023 | Convertible Notes due May 1, 2026 | Cumulative Effect, Period of Adoption, Adjustment | ATM Program | Total Equity - Controlled Interest | Total Equity - Controlled InterestConvertible Notes due September 1, 2023 | Total Equity - Controlled InterestConvertible Notes due May 1, 2026 | Total Equity - Controlled InterestCumulative Effect, Period of Adoption, Adjustment | Total Equity - Controlled InterestATM Program | Common Stock | Common StockATM Program | Additional Paid-in Capital | Additional Paid-in CapitalConvertible Notes due September 1, 2023 | Additional Paid-in CapitalConvertible Notes due May 1, 2026 | Additional Paid-in CapitalATM Program | Accumulated Deficit | Accumulated DeficitCumulative Effect, Period of Adoption, Adjustment | Accumulated Other Comprehensive Income | Non-controlling Interest from Discontinued Operations |
Balance at beginning of period (shares) at Jun. 24, 2018 | 101,488 | |||||||||||||||||||
Balance at beginning of period at Jun. 24, 2018 | $ 2,072.1 | $ 10.3 | $ 2,067.1 | $ 10.3 | $ 0.1 | $ 2,549.1 | $ (482.7) | $ 10.3 | $ 0.6 | $ 5 | ||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net loss | (375.1) | (375.1) | (375.1) | |||||||||||||||||
Currency translation gain | 4.4 | 4.4 | 4.4 | |||||||||||||||||
Reclassification of currency translation gain to loss on sale of discontinued operations | 0 | |||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities | 4.5 | 4.5 | 4.5 | |||||||||||||||||
Comprehensive loss | (366.2) | (366.2) | ||||||||||||||||||
Tax withholding on vested equity awards | (21.6) | (21.6) | (21.6) | |||||||||||||||||
Stock-based compensation | 78 | 78 | 78 | |||||||||||||||||
Exercise of stock options and issuance of shares (shares) | 5,082 | |||||||||||||||||||
Exercise of stock options and issuance of shares | 158 | 158 | 158 | |||||||||||||||||
Issuance of convertible notes due September 1, 2023 | $ 110.6 | $ 110.6 | $ 110.6 | |||||||||||||||||
Balance at end of period (shares) at Jun. 30, 2019 | 106,570 | |||||||||||||||||||
Balance at end of period at Jun. 30, 2019 | $ 2,041.2 | 2,036.2 | $ 0.1 | 2,874.1 | (847.5) | 9.5 | 5 | |||||||||||||
Accounting Standards Update [Extensible List] | us-gaap:AccountingStandardsUpdate201409Member | |||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net loss | $ (190.6) | (191.7) | (191.7) | 1.1 | ||||||||||||||||
Currency translation gain | 0 | |||||||||||||||||||
Reclassification of currency translation gain to loss on sale of discontinued operations | 0 | |||||||||||||||||||
Unrealized gain (loss) on available-for-sale securities | 6.5 | 6.5 | 6.5 | |||||||||||||||||
Comprehensive loss | (184.1) | (185.2) | 1.1 | |||||||||||||||||
Tax withholding on vested equity awards | (16.9) | (16.9) | (16.9) | |||||||||||||||||
Stock-based compensation | 54.9 | 54.9 | 54.9 | |||||||||||||||||
Exercise of stock options and issuance of shares (shares) | 2,660 | |||||||||||||||||||
Exercise of stock options and issuance of shares | 76.4 | 76.4 | 76.4 | |||||||||||||||||
Issuance of convertible notes due September 1, 2023 | $ 145.4 | $ 145.4 | $ 145.4 | |||||||||||||||||
Partial extinguishment of convertible notes due September 1, 2023 | $ (27.7) | (27.7) | (27.7) | |||||||||||||||||
Balance at end of period (shares) at Jun. 28, 2020 | 109,230 | 109,230 | ||||||||||||||||||
Balance at end of period at Jun. 28, 2020 | $ 2,089.2 | 2,083.1 | $ 0.1 | 3,106.2 | (1,039.2) | 16 | 6.1 | |||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||||||
Net loss | (522.5) | (523.9) | (523.9) | 1.4 | ||||||||||||||||
Currency translation gain | 0 | |||||||||||||||||||
Reclassification of currency translation gain to loss on sale of discontinued operations | (9.5) | (9.5) | (9.5) | |||||||||||||||||
Unrealized gain (loss) on available-for-sale securities | (3.8) | (3.8) | (3.8) | |||||||||||||||||
Comprehensive loss | (535.8) | (537.2) | 1.4 | |||||||||||||||||
Tax withholding on vested equity awards | (36.2) | (36.2) | (36.2) | |||||||||||||||||
Stock-based compensation | 67.1 | 67.1 | 67.1 | |||||||||||||||||
Exercise of stock options and issuance of shares (shares) | 2,238 | 4,223 | ||||||||||||||||||
Exercise of stock options and issuance of shares | 50.6 | $ 489.1 | 50.6 | $ 489.1 | 50.6 | $ 489.1 | ||||||||||||||
Reclassification of noncontrolling interest to loss on sale of discontinued operations | $ (7.5) | (7.5) | ||||||||||||||||||
Balance at end of period (shares) at Jun. 27, 2021 | 115,691 | 115,691 | ||||||||||||||||||
Balance at end of period at Jun. 27, 2021 | $ 2,116.5 | $ 2,116.5 | $ 0.1 | $ 3,676.8 | $ (1,563.1) | $ 2.7 | $ 0 |
Business
Business | 12 Months Ended |
Jun. 27, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Business | Business Overview Cree, Inc. (the Company) is an innovator of wide bandgap semiconductors, focused on silicon carbide and gallium nitride (GaN) materials and devices for power and radio-frequency (RF) applications. The Company's silicon carbide and GaN materials and devices are targeted for applications such as transportation, power supplies, inverters and wireless systems. Previously, the Company designed, manufactured and sold specialty lighting-class light emitting diode (LED) products targeted for use in indoor and outdoor lighting, electronic signs and signals and video displays. As discussed more fully below in Note 3, “Discontinued Operations,” on March 1, 2021, the Company completed the sale of certain assets and subsidiaries comprising its former LED Products segment to SMART Global Holdings, Inc. (SGH) and its wholly owned newly-created acquisition subsidiary CreeLED, Inc. (CreeLED and collectively with SGH, SMART) for up to $300 million, including fixed upfront and deferred payments and contingent consideration (the LED Business Divestiture). As a result, the Company has classified the results and cash flows of the former LED Products segment as discontinued operations in its consolidated statements of operations and consolidated statements of cash flows for all periods presented. Additionally, the related assets and liabilities associated with the discontinued operations are classified as held for sale as of June 28, 2020 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 Company’s continuing operations consist of the Wolfspeed business, which includes silicon carbide and GaN materials, power devices and RF devices based on wide bandgap semiconductor materials and silicon. The Company’s materials products and power devices are used in electric vehicles, motor drives, power supplies, solar and transportation applications. The Company’s materials products and RF devices are used in military communications, radar, satellite and telecommunication applications. In January 2021, the Company announced plans to change its corporate name from Cree, Inc. to Wolfspeed, Inc. in the later part of calendar year 2021. The majority of the Company's products are manufactured at its production facilities located in North Carolina, California and Arkansas. The Company also uses contract manufacturers for certain products and aspects of product fabrication, assembly and packaging. Additionally, the Company is in the process of building a silicon carbide device fabrication facility in New York. The Company operates research and development facilities in North Carolina, California, Arkansas, Arizona and New York. Cree, Inc. is a North Carolina corporation established in 1987, and its headquarters are in Durham, North Carolina. |
Basis of Presentation and Summa
Basis of Presentation and Summary of Significant Accounting Policies | 12 Months Ended |
Jun. 27, 2021 | |
Accounting Policies [Abstract] | |
Basis of Presentation and Summary of Significant Accounting Policies | Basis of Presentation and Summary of Significant Accounting Policies Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All material intercompany accounts and transactions have been eliminated. Fiscal Year The Company’s fiscal year is a 52 or 53-week period ending on the last Sunday in the month of June. The Company’s 2021 and 2020 fiscal years were 52-week fiscal years. The Company's 2019 fiscal year was a 53-week fiscal year. The Company’s 2022 fiscal year will be a 52-week fiscal year. Reclassifications Certain prior period amounts in the accompanying consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net loss or shareholders’ equity. Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (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. The Company evaluates its estimates on an ongoing basis, including those related to revenue recognition, product warranty obligations, valuation of inventories, tax related contingencies, valuation of stock-based compensation, valuation of long-lived and intangible assets, other contingencies and litigation, among others. The Company generally bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates. Certain accounting matters that generally require consideration of forecasted financial information were assessed regarding impacts from the COVID-19 pandemic as of June 27, 2021 and through the date of this Annual Report using reasonably available information as of those dates. The accounting matters assessed included, but were not limited to, allowance for doubtful accounts, the carrying value of goodwill and other long-lived tangible and intangible assets, the potential impact to earnings of unrealized losses on investments and valuation allowances for tax assets. While the assessments resulted in no material impacts to the consolidated financial statements as of and for the years ended June 27, 2021 and June 28, 2020, the Company believes the full impact of the pandemic remains uncertain and will continue to assess if ongoing developments related to the pandemic may cause future material impacts to its consolidated financial statements. Segment Information On March 1, 2021, the Company completed the LED Business Divestiture, and, as a result, now operates a single reporting segment within continuing operations, Wolfspeed. Accordingly, the Chief Operating Decision Maker (CODM) allocates resources and assesses performance on a consolidated basis. The Company's identified CODM is the Chief Executive Officer. Cash and Cash Equivalents Cash and cash equivalents consist of unrestricted cash accounts and highly liquid investments with an original maturity of three months or less when purchased. Cash and cash equivalents are stated at cost, which approximates fair value. The Company holds cash and cash equivalents at several major financial institutions, which often exceed insurance limits set by the Federal Deposit Insurance Corporation (FDIC). The Company has not historically experienced any losses due to such concentration of credit risk. Accounts Receivable For product revenue, the Company typically invoices its customers at the time of shipment for the sales order value of products shipped. Accounts receivable are recognized at the invoiced amount and are not subject to any interest or finance charges. The Company does not have any off-balance sheet credit exposure related to any of its customers. Allowance for Doubtful Accounts On June 29, 2020, the first day of the 2021 fiscal year, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standard Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) using the modified retrospective transition method, which replaced the incurred loss impairment methodology in U.S. GAAP with a methodology that reflects expected credit losses. Upon adoption, prior period balances were not adjusted and the Company determined no cumulative-effect adjustment to retained earnings as of June 29, 2020 was required. Under this new standard, expected credit losses for the Company's receivables are evaluated on a collective (pool) basis and aggregated on the basis of similar risk characteristics. These aggregated risk pools are reassessed at each measurement date. A combination of factors is considered in determining the appropriate estimate of expected credit losses, including broad-based economic indicators as well as customers' financial strength, credit standing, payment history and any historical defaults. Prior to the adoption of ASU 2016-13, the Company evaluated the collectability of accounts receivable based on a combination of factors. In cases where the Company became aware of circumstances that may impair a specific customer’s ability to meet its financial obligations subsequent to the original sale, the Company would recognize an allowance against amounts due, and thereby reduce the net recognized receivable to the amount the Company reasonably believed would be collected. For all other customers, the Company recognized an allowance for doubtful accounts based on the length of time the receivables were past due and consideration of other factors such as industry conditions, the current business environment and the Company’s historical experience. Investments Investments in certain securities may be classified into three categories: • Held-to-Maturity – Debt securities that the entity has the positive intent and ability to hold to maturity, which are reported at amortized cost. • Trading – Debt securities that are bought and held principally for the purpose of selling in the near term, which are reported at fair value, with unrealized gains and losses included in earnings. • Available-for-Sale – Debt securities not classified as either held-to-maturity or trading securities, which are reported at fair value with unrealized gains or losses excluded from earnings and reported as a separate component of shareholders’ equity. The Company reassesses the appropriateness of the classification (i.e. held-to-maturity, trading or available-for-sale) of its investments at the end of each reporting period. Upon adoption of ASU 2016-13, available-for-sale debt securities in an unrealized loss position at each measurement date are individually evaluated for expected credit losses. The Company evaluates whether the unrealized loss is due to market factors or changes in the investment holdings' credit rating. An expected credit loss will be recorded when an investment in an unrealized loss position is determined to have lost value from a decreased credit rating. The Company does not record an allowance for credit losses on receivables related to accrued interest. For the fiscal year ended June 27, 2021, no allowance for credit losses was recorded. Before the adoption of ASU 2016-13, the Company evaluated investments that experienced a decline below its original cost to determine whether the decline is other-than-temporary. Among other things, the Company considered the duration and extent of the decline and the economic factors that influenced the capital markets. For the fiscal years ended June 28, 2020, and June 30, 2019, the Company had no other-than-temporary declines below the cost basis of its investments. The Company utilizes specific identification in computing realized gains and losses on the sale of investments. Realized gains and losses on the sale of investments are reported in non-operating expense (income), net. Investments in marketable securities with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) method or an average cost method. The Company writes down its inventory balances for estimates of excess and obsolete amounts. These write-downs are recognized as a component of cost of revenue. At the point of the write-down, a new lower cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established lower cost basis. If that inventory is subsequently sold, the sale is recorded at the actual selling price and the related cost of revenue is recorded at the new lower cost basis. Property and Equipment Property and equipment are stated at cost and depreciated on a straight-line basis over the assets’ estimated useful lives. Leasehold improvements are amortized over the lesser of the asset life or the term of the related lease. In general, the Company’s policy for useful lives is as follows: Furniture and fixtures 5 years Buildings and building improvements 5 to 40 years Machinery and equipment 3 to 15 years Vehicles 5 years Computer hardware/software 3 years Leasehold improvements Shorter of estimated useful life or lease term Expenditures for repairs and maintenance are charged to expense as incurred. The costs for major renewals and improvements are capitalized and depreciated over their estimated useful lives. The cost and related accumulated depreciation of the assets are removed from the accounts upon disposition and any resulting gain or loss is reflected in operating income. The Company considers a long-lived asset to be abandoned after the Company has ceased use of such asset and there is no longer intent to use or repurpose the asset in the future. Abandoned long-lived assets are recorded at their salvage value, if any. Government Grant Disbursements Government grant disbursements are recognized when there is reasonable assurance that: (1) the Company will comply with the relevant conditions and (2) the grant disbursement will be received. The Company receives grant disbursements from the State of New York Development Corporation relating to property, plant and equipment purchases in connection with its construction of a new silicon carbide device fabrication facility in Marcy, New York. Grant disbursements are recorded as a reduction to the related asset(s), which then reduces depreciation expense over the expected useful life of the asset on a straight-line basis. Shipping and Handling Costs Shipping and handling costs are included in cost of revenue, net in the consolidated statements of operations and are recognized as a period expense during the period in which they are incurred. Goodwill and Intangible Assets The Company recognizes the assets acquired and liabilities assumed in business combinations at their respective fair values at the date of acquisition, with any excess purchase price recognized as goodwill. Valuation of intangible assets entails significant estimates and assumptions including, but not limited to, estimating future cash flows from product revenue, developing appropriate discount rates, continuation of customer relationships and renewal of customer contracts, and approximating the useful lives of the intangible assets acquired. Goodwill The Company recognizes goodwill as an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company tests goodwill for impairment at least annually as of the first day of its fiscal fourth quarter, or when indications of potential impairment exist. The Company monitors for the existence of potential impairment indicators throughout the fiscal year. The Company conducts impairment testing for goodwill at the reporting unit level. Reporting units may be operating segments as a whole, or an operation one level below an operating segment, referred to as a component. The Company has determined that it has one reporting unit, Wolfspeed. The Company may initiate goodwill impairment testing by considering qualitative factors to determine whether it is more likely than not that a reporting unit’s carrying value is greater than its fair value. Such factors may include the following, among others: a significant decline in the reporting unit ’ s expected future cash flows; a sustained, significant decline in the Company ’ s stock price and market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; and slower growth rates; as well as changes in management, key personnel, strategy and customers . If the Company's qualitative assessment indicates it is more likely than not that the estimated fair value of a reporting unit exceeds its carrying value, no further analysis is required and goodwill is not impaired. Otherwise, the Company performs a quantitative goodwill impairment test to determine if goodwill is impaired. The quantitative test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets associated with the reporting unit, goodwill is not considered impaired. If the carrying value of the net assets associated with the reporting unit exceeds the fair value of the reporting unit, the Company recognizes an impairment loss in an amount equal to the excess, not to exceed the carrying value of the reporting unit's goodwill. Once an impairment loss is recognized, the adjusted carrying value of the goodwill becomes the new accounting basis of the goodwill for the reporting unit. The Company derives a reporting unit ’ s fair value through a combination of the market approach (guideline transaction method and guideline public company method) and the income approach (a discounted cash flow analysis). The income approach utilizes a discount rate from a capital asset pricing model. The fair value is reconciled back to the Company ’ s consolidated market capitalization. Finite-Lived Intangible Assets U.S. GAAP requires that intangible assets, other than goodwill and indefinite-lived intangibles, must be amortized over their useful lives. The Company is currently amortizing its acquired intangible assets with finite lives over periods ranging from four Patent rights reflect costs incurred by the Company in applying for and maintaining patents owned by the Company and costs incurred in purchasing patents and related rights from third parties. Licensing rights reflect costs incurred by the Company in acquiring licenses under patents owned by others. The Company amortizes both on a straight-line basis over the expected useful life of the associated patent rights, which is generally the lesser of 20 years from the date of the patent application or the license period. Royalties payable under licenses for patents owned by others are generally expensed as incurred. The Company reviews its capitalized patent portfolio and recognizes impairment charges when circumstances warrant, such as when patents have been abandoned or are no longer being pursued. Long-Lived Assets The Company reviews long-lived assets such as property and equipment for impairment based on changes in circumstances that indicate their carrying amounts may not be recoverable. In making these determinations, the Company uses certain assumptions, including but not limited to: (1) estimations of the fair market value of the assets and (2) estimations of future cash flows expected to be generated by these assets, which are based on additional assumptions such as asset utilization, length of service the asset will be used in the Company’s operations and estimated salvage values. Contingent Liabilities The Company recognizes contingent liabilities when it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Disclosure in the notes to the financial statements is required for loss contingencies that do not meet both these conditions if there is a reasonable possibility that a loss may have been incurred. See Note 15, “Commitments and Contingencies,” for a discussion of loss contingencies in connection with pending and threatened litigation. The Company expenses as incurred the costs of defending legal claims against the Company. Revenue Recognition Revenue is recognized when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. Substantially all of the Company's revenue is derived from product sales. Revenue is recognized at a point in time based on the Company’s evaluation of when the customer obtains control of the products, and all performance obligations under the terms of the contract are satisfied. If customer acceptance clauses are present and it cannot be objectively determined that control has been transferred based on the contract and shipping terms, revenue is only recorded when customer acceptance is received and all performance obligations have been satisfied. Sales of products typically do not include more than one performance obligation. A portion of the Company’s products are sold through distributors. Distributors stock inventory and sell the Company’s products to their own customer base, which may include: value added resellers; manufacturers who incorporate the Company’s products into their own manufactured goods; or ultimate end users of the Company’s products. The Company recognizes revenue upon shipment of its products to its distributors. This arrangement is often referred to as a “sell-in” or “point-of-purchase” model as opposed to a “sell-through” or “point-of-sale” model, where revenue is deferred and not recognized until the distributor sells the product through to their customer. Master supply or distributor agreements are in place with many of the Company's customers and contain terms and conditions including, but not limited to payment, delivery, incentives and warranty. These agreements typically do not require minimum purchase commitments. If a master supply, distributor or other similar agreement is not in place with a customer, the Company considers a purchase order, which is governed by the Company’s standard terms and conditions, to be the contract governing the relationship with that customer. Pricing terms are negotiated independently on a stand-alone basis. Revenue is measured based on the amount of net consideration to which the Company expects to be entitled to receive in exchange for products or services. Variable consideration is recognized as a reduction of net revenue with a corresponding reserve at the time of revenue recognition, and consists primarily of sales incentives, price concessions and return allowances. Variable consideration is estimated based on contractual terms, historical analysis of customer purchase volumes, or historical analysis using specific data for the type of consideration being assessed. Some of the Company’s distributors are provided limited rights that allow them to return a portion of inventory (product exchange rights or stock rotation rights) and receive credits for changes in selling prices (price protection rights) or customer pricing arrangements under the Company’s “ship and debit” program or other targeted sales incentives. These estimates are calculated based upon historical experience, product shipment analysis, current economic conditions, on-hand inventory at the distributor, and customer contractual arrangements. The Company believes that it can reasonably and reliably estimate the allowance for distributor credits at the time of sale. Accordingly, estimates for these rights are recognized at the time of sale as a reduction of product revenue and as a contract liability. From time to time, the Company will issue a new price book for its products, and provide a credit to certain distributors for inventory quantities on hand if required by the Company’s agreement with the distributor. This practice is known as price protection. These credits are applied against the reserve that the Company establishes upon initial shipment of product to the distributor. Under the ship and debit program, products are sold to distributors at negotiated prices and the distributors are required to pay for the products purchased within the Company’s standard commercial terms. Subsequent to the initial product purchase, a distributor may request a price allowance for a particular part number(s) for certain target customers, prior to the distributor reselling the particular part to that customer. If the Company approves an allowance and the distributor resells the product to the target customer, the Company credits the distributor according to the allowance the Company approved. These credits are applied against the reserve that the Company establishes upon initial shipment of product to the distributor. The Company also has inventory consignment agreements in which revenue is recognized at a point in time, when the customer or distributor pulls product from consignment inventory that the Company stores at designated locations. Delivery and transfer of control occur at that point, when title and risk of loss transfers and the customer or distributor becomes obligated to pay for the products pulled from inventory. Until the products are pulled for use or sale by the customer or distributor, the Company retains control over the products’ disposition, including the right to pull back or relocate the products. From time to time, the Company may enter into licensing arrangements related to its intellectual property. Revenue from licensing arrangements is recognized when earned and estimable. The timing of revenue recognition is dependent on the terms of each license agreement. Generally, the Company will recognize non-refundable upfront licensing fees related to patent licenses immediately upon receipt of the funds if the Company has no significant future obligations to perform under the arrangement. However, the Company will defer recognition for licensing fees where the Company has significant future performance requirements, the fee is not fixed (such as royalties earned as a percentage of future revenue), or the fees are otherwise contingent. The Company adopted FASB ASC 606 "Revenue from Contracts with Customers" (Topic 606) (ASC 606) on June 25, 2018 using the modified retrospective approach. Leases At lease inception, the Company determines an arrangement is a lease if the contract involves the use of a distinct identified asset, the lessor does not have substantive substitution rights and the lessee obtains control of the asset throughout the period by obtaining substantially all of the economic benefit of the asset and the right to direct the use of the asset. Depending on the terms, leases are classified as either operating or finance leases, if the Company is the lessee, or as operating, sales-type or direct financing leases, if the Company is the lessor. The Company does not have any sales-type or direct financing leases. Lease agreements frequently include other services such as maintenance, electricity, security, janitorial and reception services. The Company accounts for the lease and non-lease components in its arrangements as a single lease component. The Company adopted FASB ASC 842 "Leases" (ASC 842) on July 1, 2019 under the modified retrospective transition approach with the cumulative effect of application recognized at the effective date, without adjustment to prior comparative periods. The Company did not have a cumulative-effect adjustment to retained earnings as a result of the adoption of the new standard. Accounting for Leases as a Lessee Right-of-use assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Assets and liabilities are recognized based on the present value of lease payments over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Because most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company would use the implicit rate when readily determinable. Operating lease expense is generally recognized on a straight-line basis over the lease term. Finance lease assets are generally amortized over the term of the lease. If the finance lease transfers ownership of the underlying asset to the Company or the Company is reasonably certain it will exercise an option to purchase the underlying asset, the finance lease assets are amortized on a straight-line basis over the useful life of the asset. Interest expense on the finance lease liability is recognized using the effective interest rate method and is presented within interest expense on the Company’s consolidated statements of operations. Operating leases with a lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as increases in lease payments based on changes in index rates, are not included in the right-of-use assets or liabilities. These variable lease payments are expensed as incurred. Accounting for Leases as a Lessor In accordance with FASB ASC 842, "Leases", lease income is recognized on a straight-line basis over the lease term. Variable lease payments, if any, are recognized as income in the period received. The underlying asset in an operating lease is carried at depreciated cost and is included in property and equipment. Advertising The Company expenses the costs of producing advertisements at the time production occurs and expenses the cost of communicating the advertising in the period in which the advertising is used. Advertising costs are included in sales, general and administrative expenses in the consolidated statements of operations and amounted to approximately $5.1 million, $3.8 million, and $3.7 million for the years ended June 27, 2021, June 28, 2020 and June 30, 2019, respectively. Research and Development Research and development expenses consist primarily of employee salaries and related compensation costs, occupancy costs, consulting costs and the cost of development equipment and supplies. Research and development activities are expensed when incurred. Loss Per Share Basic loss per share is computed by dividing net loss attributable to controlling interest by the weighted average number of shares of common stock outstanding for the applicable period. Diluted loss per share is determined in the same manner as basic loss per share except that the number of shares is increased to assume exercise of potentially dilutive stock options, nonvested restricted stock and contingently issuable shares using the treasury stock method, unless the effect of such increases would be anti-dilutive. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recognized in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. Stock-Based Compensation The Company recognizes compensation expense for all share-based payments granted based on the fair value of the shares on the date of grant. Compensation expense is then recognized over the award’s vesting period. Fair Value of Financial Instruments Cash and cash equivalents, short-term investments, accounts and interest receivable, accounts payable and other liabilities approximate their fair values at June 27, 2021 and June 28, 2020 due to the short-term nature of these instruments. Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are recognized for deductible temporary differences, along with net operating loss carryforwards and credit carryforwards, if it is more likely than not that the tax benefits will be realized. To the extent a deferred tax asset cannot be recognized under the preceding criteria, valuation allowances are established. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Taxes payable which are not based on income are accrued ratably over the period to which they apply. For example, payroll taxes are accrued each period end based upon the amount of payroll taxes that are owed as of that date; whereas taxes such as property taxes and franchise taxes are accrued over the fiscal year to which they apply if paid at the end of a period, or they are amortized ratably over the fiscal year if they are paid in advance. Foreign Currency Translation Foreign currency translation adjustments are recognized in other comprehensive loss in the consolidated statements of comprehensive loss for changes between the foreign subsidiaries’ functional currency and the United States (U.S.) dollar. Foreign currency translation gains and losses are included in the Company’s equity account balance of accumulated other comprehensive income, net of taxes in the consolidated balance sheets until such time that the subsidiaries are either sold or substantially liquidated. Due to the sale of the Lighting Products business unit in fiscal 2019 and the sale of the LED Products segment in fiscal 2021, the Company no longer has operations with a functional currency other than the U.S. Dollar. The Company and its subsidiaries transact business in currencies other than the U.S. Dollar and as such, the Company will continue to experience varying amounts of foreign currency exchange gains and losses. Joint Venture Effective July 17, 2017, the Company entered into a Shareholders Agreement with San’an Optoelectronics Co., Ltd. (San’an) and Cree Venture LED Company Limited (Cree Venture LED) pursuant to which the Company and San’an funded their contributions to Cree Venture LED and agreed upon the management and operation of Cree Venture LED. The Company contributed $5.1 million of cash for a 51% ownership interest and San’an contributed $4.9 million of cash for a 49% ownership interest. Cree Venture LED has a five-member board of directors, three of which were designated by the Company and two of which were designated by San’an. The Company's interest in Cree Venture LED was included in the LED Business Divestiture and its related activity is classified as discontinued operations. Supplemental Cash Flow Information Cash paid for interest was $14.1 million, $5.9 million, and $4.0 million for the fiscal years ended June 27, 2021, June 28, 2020 and June 30, 2019, respectively. Cash paid for taxes, net of refunds received, was $11.0 million, $3.6 million and $0.5 million for the fiscal years ended June 27, 2021, June 28, 2020 and June 30, 2019, respectively. Recently Adopted Accounting Pronouncements Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. The Company adopted this standard using the modified retrospective transition method on June 29, 2020, the fir |
Discontinued Operations
Discontinued Operations | 12 Months Ended |
Jun. 27, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Discontinued Operations | Discontinued Operations Lighting Business On May 13, 2019, the Company completed the sale of (a) certain manufacturing facilities and equipment, inventory, intellectual property rights, contracts and real estate of the Company used by the Company's Lighting Products business unit, which includes LED lighting fixtures, lamps and corporate lighting solutions for commercial, industrial and consumer applications, and (b) all of the issued and outstanding equity interests of E-conolight LLC (E-conolight), Cree Canada Corp. and Cree Europe S.r.l., each a wholly owned subsidiary of the Company (collectively, the Lighting Products business unit) to IDEAL, pursuant to the Purchase Agreement, dated March 14, 2019, as amended between Cree and IDEAL. The Company retained certain liabilities associated with the Lighting Products business unit arising prior to the closing of the sale. The Lighting Products business unit represented the Lighting Products segment disclosed in the Company's historical financial statements. The aggregate net proceeds from the sale of the Lighting Products business unit was $219.0 million in cash, which was subject to certain adjustments. Additionally, the Company is entitled to an earnout payment subject to the future performance of the Lighting Products business unit. In connection with the transaction, the Company and IDEAL entered into certain ancillary and related agreements, including (i) an Intellectual Property Assignment and License Agreement, which assigned to IDEAL certain intellectual property owned by the Company and licensed to IDEAL certain additional intellectual property owned by the Company; (ii) a Transition Services Agreement (the TSA), which is designed to ensure a smooth transition of the Lighting Products business unit to IDEAL; (iii) an LED Supply Agreement (the LED Supply Agreement), pursuant to which the Company will supply IDEAL with certain LED chip and component products for three years; and (iv) a Real Estate License Agreement, which will allow IDEAL to use certain premises owned by the Company to conduct the Lighting Products business unit after closing. The Company recognized a loss on the sale of $66.2 million. The Company has classified the results of the Lighting Products business unit as discontinued operations, the results of which for the fiscal year ended June 30, 2019 are as follows: (in millions of U.S. Dollars) June 30, 2019 Revenue, net $419.8 Cost of revenue, net 324.3 Gross profit 95.5 Research and development 37.1 Sales, general and administrative 100.6 Amortization or impairment of acquisition-related intangibles 116.4 Goodwill impairment charges 90.3 Loss on disposal or impairment of long-lived assets 2.0 Loss before income taxes and loss on sale (250.9) Loss on sale 66.2 Loss before income taxes (317.1) Income tax expense 0.1 Net loss ($317.2) The Company recognized $4.2 million, $10.5 million and $1.6 million in administrative fees for the fiscal years ended June 27, 2021, June 28, 2020 and June 30, 2019, respectively, relating to the TSA, of which $1.6 million was accrued in accounts receivable, net in the consolidated balance sheets as of June 28, 2020. Less than $0.1 million was accrued in accounts receivable, net in the consolidated balance sheets as of June 27, 2021. These fees were recorded as a reduction of sales, general and administrative expense in the consolidated statements of operations. The LED Supply Agreement was transferred in connection with the LED Business Divestiture. The Company recognized $4.2 million, $12.0 million and $2.1 million of revenue related to the LED Supply Agreement for the fiscal years ended June 27, 2021, June 28, 2020 and June 30, 2019, respectively, which is included in revenue from discontinued operations. As of June 28, 2020, $0.7 million of revenue related to the LED Supply Agreement was accrued in accounts receivable, net and is included in current assets of discontinued operations on the consolidated balance sheets. Additionally, the Company recorded a contract liability of $9.9 million relating to the LED Supply Agreement as of June 28, 2020. The contract liability is recorded in current and long-term liabilities of discontinued operations on the consolidated balance sheets. LED Business On March 1, 2021, the Company completed the LED Business Divestiture pursuant to the terms of the Asset Purchase Agreement (the LED Purchase Agreement), dated October 18, 2020, as amended. Pursuant to the LED Purchase Agreement, (i) the Company completed the sale to SMART of (a) certain equipment, inventory, intellectual property rights, contracts, and real estate comprising the Company’s LED Products segment, (b) all of the issued and outstanding equity interests of Cree Huizhou Solid State Lighting Company Limited (Cree Huizhou), a limited liability company organized under the laws of the People’s Republic of China and an indirect wholly owned subsidiary of the Company, and (c) the Company’s ownership interest in Cree Venture LED, the Company’s joint venture with San’an Optoelectronics Co., Ltd. (collectively, the LED Business); and (ii) SMART assumed certain liabilities related to the LED Business. The Company retained certain assets used in and pre-closing liabilities associated with the LED Products segment. The purchase price for the LED Business consisted of (i) a payment of $50 million in cash, subject to customary adjustments, (ii) an unsecured promissory note issued to the Company by SGH in the amount of $125 million (the Purchase Price Note), (iii) the potential to receive an earn-out payment between $2.5 million and $125 million based on the revenue and gross profit performance of the LED Business in the first four full fiscal quarters following the closing (the Earnout Period), also payable in the form of a unsecured promissory note of SGH (the Earnout Note), and (iv) the assumption of certain liabilities. The Purchase Price Note and the Earnout Note will accrue interest at a rate of three-month LIBOR plus 3.0% with interest paid every three months and one bullet payment of principal and all accrued and unpaid interest will be payable on the maturity date of the Purchase Price Note and Earnout Note. The Purchase Price Note will mature on August 15, 2023, and the Earnout Note will mature on March 27, 2025. The Company recognized a loss on sale of the LED Business of $29.1 million. The cost of selling the LED Business was $27.4 million, which was recognized throughout fiscal 2020 and 2021. In connection with the closing of the LED Business Divestiture, the Company and CreeLED also entered into certain ancillary and related agreements, including (i) an Intellectual Property Assignment and License Agreement, which assigned to CreeLED certain intellectual property owned by the Company and its affiliates and licensed to CreeLED certain additional intellectual property owned by the Company, (ii) a Transition Services Agreement (LED TSA), (iii) a Wafer Supply Agreement, pursuant to which the Company will supply CreeLED with certain silicon carbide materials and fabrication services for up to four years, and (iv) a Real Estate License Agreement (LED RELA), which will allow CreeLED to use certain premises owned by the Company to conduct the LED Business for a period of up to 24 months after closing. Because the LED Business Divestiture represented a strategic shift that will have a major effect on the Company’s operations and financial results, the Company has classified the results of the LED Business as discontinued operations in the Company’s consolidated statements of operations for all periods presented. The Company ceased recording depreciation and amortization of long-lived assets conveying in the LED Purchase Agreement upon classification as discontinued operations in October 2020. Additionally, the related assets and liabilities associated with discontinued operations are classified as held for sale in the consolidated balance sheets as of June 28, 2020. The following table presents the financial results of the LED Business as (loss) income from discontinued operations, net of income taxes in the Company's consolidated statements of operations: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Revenue, net $272.8 $433.2 $541.8 Cost of revenue, net 213.3 343.4 394.5 Gross profit 59.5 89.8 147.3 Operating expenses: Research and development 22.3 32.2 36.8 Sales, general and administrative 29.4 29.7 31.8 Goodwill impairment 112.6 — — Impairment on assets held for sale 19.5 — — Gain on disposal or impairment of long-lived assets (1.6) (0.1) (0.3) Other operating expense 18.7 13.3 1.4 Operating (loss) income (141.4) 14.7 77.6 Non-operating income (0.3) (0.5) (0.1) (Loss) income before income taxes and loss on sale (141.1) 15.2 77.7 Loss on sale 29.1 — — (Loss) income before income taxes (170.2) 15.2 77.7 Income tax expense 11.0 8.2 17.1 Net (loss) income (181.2) 7.0 60.6 Net income attributable to noncontrolling interest 1.4 1.1 — Net (loss) income attributable to controlling interest ($182.6) $5.9 $60.6 As of September 27, 2020, the Company determined it would more likely than not sell all or a portion of the assets comprising the LED Products segment below carrying value. As a result, the Company recorded an impairment to goodwill of $105.7 million. As of December 27, 2020, the Company recorded an additional impairment to goodwill of $6.9 million and an impairment to assets held for sale associated with the LED Business Divestiture of $19.5 million. For the fiscal years ended June 27, 2021, June 28, 2020 and June 30, 2019, the Company recognized $11.0 million, $8.2 million and $17.1 million, respectively, of income tax expense related to discontinued operations, which primarily related to the foreign operations of the LED Business. Income tax expense related to discontinued operations for the fiscal year ended June 27, 2021 includes $4.1 million of income tax expense related to the sale of the issued and outstanding equity interests of Cree Huizhou in the third quarter of fiscal 2021. The income tax impact of the U.S. operations of the LED Business for all periods presented were offset with a valuation allowance as described in Note 14, "Income Taxes." For the fiscal year ended June 27, 2021, the Company recognized $1.2 million and $4.0 million in administrative fees related to the LED RELA and the LED TSA, respectively, of which $0.3 million and $0.7 million are included in accounts receivable, net in the consolidated balance sheets as of June 27, 2021. Fees related to the LED RELA were recorded as lease income, see Note 5, "Leases." Fees related to the LED TSA were recorded as a reduction in expense within the line item in the consolidated statements of operations in which costs were incurred. At the inception of the Wafer Supply Agreement, the Company recorded a supply agreement liability of $31.0 million, of which $22.7 million was outstanding as of June 27, 2021. The supply agreement liability is recognized in other current liabilities and other long-term liabilities on the consolidated balance sheets. The Company recognized a net loss of $0.8 million in non-operating expense, net for the fiscal year ended June 27, 2021 related to the Wafer Supply Agreement. A receivable of $7.0 million was included in other assets in the consolidated balance sheets as of June 27, 2021. The following table presents the assets and liabilities of the LED Business classified as discontinued operations as of June 28, 2020: (in millions of U.S. Dollars) June 28, 2020 Assets Short-term investments $12.0 Accounts receivable, net 41.6 Inventories 57.2 Prepaid expenses 0.1 Other current assets 5.1 Current assets of discontinued operations 116.0 Property and equipment, net 60.3 Goodwill 180.3 Intangible assets, net 22.7 Deferred tax assets 5.1 Other assets 1.7 Long-term assets of discontinued operations 270.1 Liabilities Accounts payable and accrued expenses 31.0 Accrued contract liabilities 24.1 Income taxes payable 2.0 Other current liabilities 3.1 Current liabilities of discontinued operations 60.2 Other long-term liabilities 9.8 Long-term liabilities of discontinued operations 9.8 As of June 27, 2021, certain leases conveying to SMART as part of the LED Purchase Agreement, including an office lease in Hong Kong, were still legally held by the Company. As of June 27, 2021, the assets and liabilities related to these leases are classified as held for sale in the consolidated balance sheets. |
Revenue Recognition
Revenue Recognition | 12 Months Ended |
Jun. 27, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Revenue Recognition | Revenue Recognition In accordance with ASC 606, the Company follows a five-step approach for recognizing revenue, consisting of the following: (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. Contract liabilities primarily include various rights of return and customer deposits, as well as a reserve on the Company's "ship and debit" program. Contract liabilities were $45.2 million and $47.9 million as of June 27, 2021 and June 28, 2020, respectively. The decrease was primarily due to decreased customer deposits offset by increased reserve liabilities. Contract liabilities are recorded within accrued contract liabilities and other long-term liabilities on the balance sheet. Before the adoption of ASC 606, liabilities relating to various rights of return were recorded as a deduction to accounts receivable. Practical Expedients and Exemptions The Company does not disclose the value of unsatisfied performance obligations for contracts with an original expected length of one year or less. Incidental contract costs that are not material in context of the delivery of products are expensed as incurred. Sales commissions are expensed when the amortization period is less than one year. Contract assets, such as costs to obtain or fulfill contracts, are an insignificant component of the Company’s revenue recognition process. The majority of the Company’s fulfillment costs as a manufacturer consist of inventory, fixed assets, and intangible assets, all of which are accounted for under the respective guidance for those asset types. The Company’s accounts receivable balance represents the Company’s unconditional right to receive consideration from its customers with contracts. Payments are typically due within 30 days of the completion of the performance obligation and invoicing, and therefore do not contain significant financing components. Sales tax, value-added tax, and other taxes the Company collects concurrent with revenue-producing activities are excluded from revenue, and shipping and handling costs are treated as fulfillment activities and are included in cost of revenue in the Company’s consolidated statements of operations. For the fiscal years ended June 27, 2021 and June 28, 2020, the Company did not recognize any revenue that was included in contract liabilities as of June 29, 2020 and July 1, 2019, respectively. Revenue recognized related to performance obligations that were satisfied or partially satisfied in previous periods was not material for the fiscal years ended June 27, 2021 and June 28, 2020. Geographic Information The Company conducts business in several geographic areas. Revenue is attributed to a particular geographic region based on the shipping address for the products. Disaggregated revenue from external customers by geographic area is as follows: For the Years Ended June 27, 2021 June 28, 2020 June 30, 2019 (in millions of U.S. Dollars) Revenue % of Revenue Revenue % of Revenue Revenue % of Revenue Europe $ 188.9 36 % $ 171.4 36 % $ 162.9 30 % United States 117.3 22 % 106.5 23 % 122.0 23 % China 100.1 19 % 65.0 14 % 116.3 22 % Japan 42.5 8 % 52.1 11 % 68.7 13 % South Korea 32.1 6 % 47.7 10 % 32.5 6 % Other 44.7 9 % 28.0 6 % 35.8 6 % Total $ 525.6 $ 470.7 $ 538.2 |
Leases
Leases | 12 Months Ended |
Jun. 27, 2021 | |
Leases [Abstract] | |
Leases | Leases The Company primarily leases manufacturing and office space. The Company also has a number of bulk gas leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. For details on the Company's lease policies, see the significant accounting policy disclosures in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies." The Company's finance lease obligations primarily relate to Wolfspeed manufacturing space in Malaysia and a 49-year ground lease on a future silicon carbide device fabrication facility in New York. Balance Sheet Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars): Operating Leases: June 27, 2021 June 28, 2020 Right-of-use asset (1) $12.1 $12.3 Current lease liability (2) 4.5 4.8 Non-current lease liability (3) 7.5 7.5 Total operating lease liabilities 12.0 12.3 Finance Leases: Finance lease assets (4) $15.5 $15.4 Current portion of finance lease liabilities 5.2 3.6 Finance lease liabilities, less current portion 10.0 11.4 Total finance lease liabilities 15.2 15.0 (1) Within other assets (2) Within other current liabilities (3) Within other long-term liabilities (4) Within property and equipment, net Statement of Operations Operating lease expense was $5.5 million and $5.4 million in fiscal 2021 and 2020, respectively. In fiscal 2021 and 2020, short-term lease expense, variable lease expense and sublease income were immaterial. Finance lease amortization was $1.0 million and $0.7 million, and interest expense was $0.3 million and $0.2 million, in fiscal 2021 and 2020, respectively. Cash Flows Cash flow information consisted of the following: Fiscal years ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Cash used in operating activities: Cash paid for operating leases $5.7 $5.5 Cash paid for interest portion of financing leases 0.3 0.1 Cash used in financing activities: Cash paid for principal portion of finance leases 0.4 0.8 Non-cash operating activities: Operating lease additions due to adoption of ASC 842 — 11.0 Operating lease additions and modifications, net 4.8 6.4 Finance lease additions 4.8 15.7 Transfer of finance lease liability to accounts payable and accrued expenses (1) 4.2 — (1) In the first quarter of fiscal 2021, the Company executed the available bargain purchase option for certain finance leases relating to property and equipment, net, in order to purchase the assets. Lease Liability Maturities Maturities of operating and finance lease liabilities as of June 27, 2021 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 26, 2022 $4.7 $5.5 $10.2 June 25, 2023 3.6 0.7 4.3 June 30, 2024 2.2 0.7 2.9 June 29, 2025 1.2 0.7 1.9 June 28, 2026 0.7 0.7 1.4 Thereafter 0.2 14.6 14.8 Total lease payments 12.6 22.9 35.5 Imputed lease interest (0.6) (7.7) (8.3) Total lease liabilities $12.0 $15.2 $27.2 Supplemental Disclosures Operating Leases Finance Leases Weighted average remaining lease term (in months) (1) 35 469 Weighted average discount rate (2) 2.85 % 2.48 % (1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 65 months. (2) Weighted average discount rate of finance leases without the 49-year ground lease is 1.24%. Lease Income As mentioned in Note 3, "Discontinued Operations," on March 1, 2021 and in connection with the LED Business Divestiture, the Company entered into the LED RELA pursuant to which the Company leases to CreeLED approximately 58,000 square feet of the Company’s property and certain facilities in Durham, North Carolina for a total of $3.6 million per year. The lease term is 24 months and expires on February 28, 2023. Subject to certain provisions in the LED RELA, CreeLED may terminate its rights or a portion of its rights under the agreement at any time with sixty days written notice. A notice of thirty days is permitted under certain circumstances as defined in the agreement. The agreement does not contain any renewal provisions. The Company recognized lease income of $1.2 million for the year ended June 27, 2021. The Company did not recognize any variable lease income for the years ended June 27, 2021 and June 28, 2020. Future minimum rental income relating to the LED RELA is as follows (in millions of U.S. Dollars): June 26, 2022 3.6 June 25, 2023 2.4 Total future minimum rental income 6.0 |
Leases | Leases The Company primarily leases manufacturing and office space. The Company also has a number of bulk gas leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. For details on the Company's lease policies, see the significant accounting policy disclosures in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies." The Company's finance lease obligations primarily relate to Wolfspeed manufacturing space in Malaysia and a 49-year ground lease on a future silicon carbide device fabrication facility in New York. Balance Sheet Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars): Operating Leases: June 27, 2021 June 28, 2020 Right-of-use asset (1) $12.1 $12.3 Current lease liability (2) 4.5 4.8 Non-current lease liability (3) 7.5 7.5 Total operating lease liabilities 12.0 12.3 Finance Leases: Finance lease assets (4) $15.5 $15.4 Current portion of finance lease liabilities 5.2 3.6 Finance lease liabilities, less current portion 10.0 11.4 Total finance lease liabilities 15.2 15.0 (1) Within other assets (2) Within other current liabilities (3) Within other long-term liabilities (4) Within property and equipment, net Statement of Operations Operating lease expense was $5.5 million and $5.4 million in fiscal 2021 and 2020, respectively. In fiscal 2021 and 2020, short-term lease expense, variable lease expense and sublease income were immaterial. Finance lease amortization was $1.0 million and $0.7 million, and interest expense was $0.3 million and $0.2 million, in fiscal 2021 and 2020, respectively. Cash Flows Cash flow information consisted of the following: Fiscal years ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Cash used in operating activities: Cash paid for operating leases $5.7 $5.5 Cash paid for interest portion of financing leases 0.3 0.1 Cash used in financing activities: Cash paid for principal portion of finance leases 0.4 0.8 Non-cash operating activities: Operating lease additions due to adoption of ASC 842 — 11.0 Operating lease additions and modifications, net 4.8 6.4 Finance lease additions 4.8 15.7 Transfer of finance lease liability to accounts payable and accrued expenses (1) 4.2 — (1) In the first quarter of fiscal 2021, the Company executed the available bargain purchase option for certain finance leases relating to property and equipment, net, in order to purchase the assets. Lease Liability Maturities Maturities of operating and finance lease liabilities as of June 27, 2021 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 26, 2022 $4.7 $5.5 $10.2 June 25, 2023 3.6 0.7 4.3 June 30, 2024 2.2 0.7 2.9 June 29, 2025 1.2 0.7 1.9 June 28, 2026 0.7 0.7 1.4 Thereafter 0.2 14.6 14.8 Total lease payments 12.6 22.9 35.5 Imputed lease interest (0.6) (7.7) (8.3) Total lease liabilities $12.0 $15.2 $27.2 Supplemental Disclosures Operating Leases Finance Leases Weighted average remaining lease term (in months) (1) 35 469 Weighted average discount rate (2) 2.85 % 2.48 % (1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 65 months. (2) Weighted average discount rate of finance leases without the 49-year ground lease is 1.24%. Lease Income As mentioned in Note 3, "Discontinued Operations," on March 1, 2021 and in connection with the LED Business Divestiture, the Company entered into the LED RELA pursuant to which the Company leases to CreeLED approximately 58,000 square feet of the Company’s property and certain facilities in Durham, North Carolina for a total of $3.6 million per year. The lease term is 24 months and expires on February 28, 2023. Subject to certain provisions in the LED RELA, CreeLED may terminate its rights or a portion of its rights under the agreement at any time with sixty days written notice. A notice of thirty days is permitted under certain circumstances as defined in the agreement. The agreement does not contain any renewal provisions. The Company recognized lease income of $1.2 million for the year ended June 27, 2021. The Company did not recognize any variable lease income for the years ended June 27, 2021 and June 28, 2020. Future minimum rental income relating to the LED RELA is as follows (in millions of U.S. Dollars): June 26, 2022 3.6 June 25, 2023 2.4 Total future minimum rental income 6.0 |
Leases | Leases The Company primarily leases manufacturing and office space. The Company also has a number of bulk gas leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. For details on the Company's lease policies, see the significant accounting policy disclosures in Note 2, “Basis of Presentation and Summary of Significant Accounting Policies." The Company's finance lease obligations primarily relate to Wolfspeed manufacturing space in Malaysia and a 49-year ground lease on a future silicon carbide device fabrication facility in New York. Balance Sheet Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars): Operating Leases: June 27, 2021 June 28, 2020 Right-of-use asset (1) $12.1 $12.3 Current lease liability (2) 4.5 4.8 Non-current lease liability (3) 7.5 7.5 Total operating lease liabilities 12.0 12.3 Finance Leases: Finance lease assets (4) $15.5 $15.4 Current portion of finance lease liabilities 5.2 3.6 Finance lease liabilities, less current portion 10.0 11.4 Total finance lease liabilities 15.2 15.0 (1) Within other assets (2) Within other current liabilities (3) Within other long-term liabilities (4) Within property and equipment, net Statement of Operations Operating lease expense was $5.5 million and $5.4 million in fiscal 2021 and 2020, respectively. In fiscal 2021 and 2020, short-term lease expense, variable lease expense and sublease income were immaterial. Finance lease amortization was $1.0 million and $0.7 million, and interest expense was $0.3 million and $0.2 million, in fiscal 2021 and 2020, respectively. Cash Flows Cash flow information consisted of the following: Fiscal years ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Cash used in operating activities: Cash paid for operating leases $5.7 $5.5 Cash paid for interest portion of financing leases 0.3 0.1 Cash used in financing activities: Cash paid for principal portion of finance leases 0.4 0.8 Non-cash operating activities: Operating lease additions due to adoption of ASC 842 — 11.0 Operating lease additions and modifications, net 4.8 6.4 Finance lease additions 4.8 15.7 Transfer of finance lease liability to accounts payable and accrued expenses (1) 4.2 — (1) In the first quarter of fiscal 2021, the Company executed the available bargain purchase option for certain finance leases relating to property and equipment, net, in order to purchase the assets. Lease Liability Maturities Maturities of operating and finance lease liabilities as of June 27, 2021 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 26, 2022 $4.7 $5.5 $10.2 June 25, 2023 3.6 0.7 4.3 June 30, 2024 2.2 0.7 2.9 June 29, 2025 1.2 0.7 1.9 June 28, 2026 0.7 0.7 1.4 Thereafter 0.2 14.6 14.8 Total lease payments 12.6 22.9 35.5 Imputed lease interest (0.6) (7.7) (8.3) Total lease liabilities $12.0 $15.2 $27.2 Supplemental Disclosures Operating Leases Finance Leases Weighted average remaining lease term (in months) (1) 35 469 Weighted average discount rate (2) 2.85 % 2.48 % (1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 65 months. (2) Weighted average discount rate of finance leases without the 49-year ground lease is 1.24%. Lease Income As mentioned in Note 3, "Discontinued Operations," on March 1, 2021 and in connection with the LED Business Divestiture, the Company entered into the LED RELA pursuant to which the Company leases to CreeLED approximately 58,000 square feet of the Company’s property and certain facilities in Durham, North Carolina for a total of $3.6 million per year. The lease term is 24 months and expires on February 28, 2023. Subject to certain provisions in the LED RELA, CreeLED may terminate its rights or a portion of its rights under the agreement at any time with sixty days written notice. A notice of thirty days is permitted under certain circumstances as defined in the agreement. The agreement does not contain any renewal provisions. The Company recognized lease income of $1.2 million for the year ended June 27, 2021. The Company did not recognize any variable lease income for the years ended June 27, 2021 and June 28, 2020. Future minimum rental income relating to the LED RELA is as follows (in millions of U.S. Dollars): June 26, 2022 3.6 June 25, 2023 2.4 Total future minimum rental income 6.0 |
Financial Statement Details
Financial Statement Details | 12 Months Ended |
Jun. 27, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Financial Statement Details | Financial Statement Details Accounts Receivable, net Accounts receivable, net consisted of the following: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Billed trade receivables $95.6 $71.5 Unbilled contract receivables 0.6 1.2 Royalties 0.5 0.4 96.7 73.1 Allowance for bad debts (0.8) (0.7) Accounts receivable, net $95.9 $72.4 Changes in the Company’s allowance for bad debts were as follows: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Balance at beginning of period $0.7 $0.2 $0.2 Current period provision change 0.1 0.6 — Write-offs, net of recoveries — (0.1) — Balance at end of period $0.8 $0.7 $0.2 Inventories Inventories consisted of the following: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Raw material $43.3 $36.9 Work-in-progress 109.5 73.9 Finished goods 13.8 11.1 Inventories $166.6 $121.9 In addition to inventory held by the Company associated with the Wolfspeed business, the Company holds inventory related to the Wafer Supply Agreement entered into in connection with the LED Business Divestiture as well as unallocated inventoried costs consisting primarily of manufacturing employees’ stock-based compensation, profit sharing and quarterly or annual incentive compensation, matching contributions under the Company’s 401(k) plan, and acquisition related costs. June 27, 2021 June 28, 2020 Wolfspeed $159.2 $97.3 Wafer Supply Agreement inventory (1) — 19.0 Unallocated inventories 7.4 5.6 Consolidated inventories $166.6 $121.9 (1) Inventory related to the Wafer Supply Agreement as of June 27, 2021 is recorded within other current assets in the consolidated balance sheets. Property and Equipment, net Property and equipment, net consisted of the following: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Machinery and equipment $988.6 $859.9 Land and buildings 383.9 363.1 Computer hardware/software 51.5 46.8 Furniture and fixtures 8.0 8.1 Leasehold improvements and other 9.6 9.7 Vehicles 0.7 0.6 Finance lease assets 15.5 15.4 Construction in progress 767.8 366.8 Property and equipment, gross 2,225.6 1,670.4 Accumulated depreciation (933.3) (899.6) Property and equipment, net $1,292.3 $770.8 Depreciation of property and equipment totaled $100.5 million, $76.7 million and $64.9 million for the years ended June 27, 2021, June 28, 2020 and June 30, 2019, respectively. During the years ended June 27, 2021, June 28, 2020 and June 30, 2019, the Company recognized approximately $4.3 million, $3.3 million and $0.2 million, respectively, as losses on disposals or impairments of property and equipment of which $3.4 million and $3.0 million are related to the Company's factory optimization plan and are reflected in other operating expense for the years ended June 27, 2021 and June 28, 2020, respectively. The remaining amount of these charges are reflected in loss on disposal or impairment of other assets in the consolidated statements of operations. In the fourth quarter of fiscal 2021, the Company modified its long-range plan regarding a portion of its Durham, North Carolina campus. As a result, the Company has decided it will no longer complete the construction of certain buildings on the Durham campus. The carrying value of the abandoned assets has been reduced to an estimated salvage value of approximately $20.0 million as of June 27, 2021. The Company’s tangible long-lived assets by country are as follows: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 United States $1,258.1 $758.2 China 2.3 2.6 Other 31.9 10.0 Total $1,292.3 $770.8 Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Accounts payable, trade $44.2 $88.1 Accrued salaries and wages 69.5 42.3 Accrued expenses 265.7 55.3 Other 1.7 4.1 Accounts payable and accrued expenses $381.1 $189.8 Accounts payable and accrued expenses as of June 27, 2021 and June 28, 2020 includes accrued property and equipment of $248.3 million and $79.4 million, respectively. Accrued property and equipment as of June 30, 2019 was $20.1 million. Accumulated Other Comprehensive Income, net of taxes Accumulated other comprehensive income, net of taxes consisted of the following: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Currency translation gain $— $9.5 Net unrealized gain on available-for-sale securities (1) 2.7 6.5 Accumulated other comprehensive income, net of taxes $2.7 $16.0 (1) Amounts as of June 27, 2021 and June 28, 2020 include a $2.4 million loss related to tax on the net unrealized gain on available-for-sale securities. Other Operating Expense The following table summarizes the components of other operating expense: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Factory optimization restructuring $7.6 $8.5 $4.1 Severance and other restructuring 3.4 0.6 2.8 Total restructuring costs 11.0 9.1 6.9 Project, transformation and transaction costs 7.3 12.2 16.9 Factory optimization start-up costs 8.0 9.5 1.5 Non-restructuring related executive severance 2.8 2.1 1.3 Other operating expense $29.1 $32.9 $26.6 See Note 18, "Restructuring" for more details on the Company's restructuring costs. Non-Operating Expense (Income), net The following table summarizes the components of non-operating expense (income), net: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 (Gain) loss on sale of investments, net ($0.4) ($1.5) $0.1 (Gain) loss on equity investment (8.3) (14.2) 16.2 Gain on partial debt extinguishment — (11.0) — Gain on arbitration proceedings — (7.9) — Interest income (10.1) (16.3) (13.9) Interest expense 45.4 34.9 26.0 Foreign currency (gain) loss, net (1.3) (2.0) 1.3 Loss on Wafer Supply Agreement 0.8 — — Other, net 0.2 (0.5) (0.3) Non-operating expense (income), net $26.3 ($18.5) $29.4 Reclassifications Out of Accumulated Other Comprehensive Income The Company reclassified a net gain of $0.4 million and $1.5 million and a net loss of $0.1 million, on available for sale securities out of accumulated other comprehensive income for the fiscal years ended June 27, 2021, June 28, 2020, and June 30, 2019, respectively. For the fiscal year ended June 28, 2020, an additional net gain of $0.5 million was reclassified to net (loss) income from discontinued operations on the consolidated statements of operations. There was no tax impact on any reclassifications due to a full valuation allowance on U.S. operations. Amounts were reclassified to non-operating expense (income), net on the consolidated statements of operations. Additionally, in fiscal 2019, $5.2 million of currency translation loss related to the former Lighting Products business unit was reclassified out of accumulated other comprehensive income and recognized in the consolidated statements of operations as part of the loss on sale of discontinued operations. In fiscal 2021, $9.5 million of currency translation gain related to the former LED Products segment was reclassified out of accumulated other comprehensive income and recognized in the consolidated statements of operations as part of the loss on sale of discontinued operations. Statements of Cash Flows - non-cash activities Fiscal Years Ended June 27, 2021 June 28, 2020 June 30, 2019 Lease asset and liability additions (1) $7.9 $28.3 $— Lease asset and liability modifications, net 1.7 4.8 — Transfer of finance lease liability to accounts payable and accrued expenses (2) 4.2 — — Receivables for property, plant and equipment related insurance proceeds 1.9 — — Decrease in property, plant and equipment from long-term incentive related receivables 16.4 — — (1) $11.0 million of the lease asset and liability additions for the year ended June 28, 2020 related to the increase of right-of-use assets and matching lease liabilities as a result of adopting ASC 842. See Note 5, "Leases", for further information. (2) In the first quarter of fiscal 2021, the Company executed the available bargain purchase option for certain finance leases relating to property and equipment, net, in order to purchase the assets. |
Investments
Investments | 12 Months Ended |
Jun. 27, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Investments | InvestmentsInvestments consist of municipal bonds, corporate bonds, U.S. agency securities, U.S. treasury securities, commercial paper, certificates of deposit, and variable rate demand notes. All short-term investments are classified as available-for-sale. As of June 28, 2020, other long-term investments consisted of the Company's formerly held ownership interest in ENNOSTAR Inc. (formerly Lextar Electronics Corporation) (ENNOSTAR). In the fourth quarter of fiscal 2021, the Company liquidated its common stock ownership interest in ENNOSTAR. The Company did not have any long-term investments as of June 27, 2021. Short-term investments as of June 27, 2021 consist of the following: June 27, 2021 (in millions of U.S. Dollars) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Municipal bonds $139.4 $1.9 $— $141.3 Corporate bonds 456.5 3.3 (0.3) 459.5 U.S. agency securities 15.8 — — 15.8 U.S. treasury securities 72.3 0.3 (0.1) 72.5 Certificates of deposit 16.5 — — 16.5 Commercial paper 50.0 — — 50.0 Variable rate demand note 20.0 — — 20.0 Total short-term investments $770.5 $5.5 ($0.4) $775.6 The following table presents 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: June 27, 2021 Less than 12 Months Greater than 12 Months Total (in millions of U.S. Dollars) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $28.8 $— $— $— $28.8 $— Corporate bonds 133.8 (0.3) — — 133.8 (0.3) U.S. agency securities 16.7 — — — 16.7 — U.S. treasury securities 47.9 (0.1) — — 47.9 (0.1) Certificates of deposit 0.7 — — — 0.7 — Total $227.9 ($0.4) $— $— $227.9 ($0.4) Number of securities with an unrealized loss 134 — 134 Short-term investments as of June 28, 2020 consist of the following: June 28, 2020 (in millions of U.S. Dollars) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses (1) Estimated Fair Value Municipal bonds 130.0 2.0 — 132.0 Corporate bonds 473.8 6.3 — 480.1 U.S. agency securities 29.1 — — 29.1 U.S. treasury securities 52.3 0.6 — 52.9 Certificates of deposit 83.3 — — 83.3 Commercial paper 11.0 — — 11.0 Variable rate demand note 2.5 — — 2.5 Total short-term investments 782.0 8.9 — 790.9 (1) The Company had an unrealized loss of less than $0.1 million as of June 28, 2020. The following table presents 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: June 28, 2020 Less than 12 Months Greater than 12 Months Total (in millions of U.S. Dollars) Fair Value Unrealized Loss (1) Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $14.3 $— $— $— $14.3 $— Corporate bonds 29.1 — — — 29.1 — U.S. agency securities 8.6 — — — 8.6 — U.S. treasury securities 13.8 — — — 13.8 — Total $65.8 $— $— $— $65.8 $— Number of securities with an unrealized loss 46 — 46 (1) Securities with an unrealized loss of less than 12 months as of June 28, 2020 had an unrealized loss value of less than $0.1 million, individually and in the aggregate. The Company does not include accrued interest in estimated fair values of short-term investments and does not record an allowance for credit losses on receivables related to accrued interest. Accrued interest receivable was $5.5 million and $4.3 million as of June 27, 2021 and June 28, 2020, respectively, and is recorded in other current assets on the consolidated balance sheets. When necessary, write-offs of noncollectable interest income are recorded as a reversal to interest income. There were no write-offs of noncollectable interest income for the years ended June 27, 2021 and June 28, 2020. The Company utilizes specific identification in computing realized gains and losses on the sale of investments. Realized gains and losses are included in non-operating expense (income), net in the consolidated statements of operations. Unrealized gains and losses are included as a separate component of equity, net of tax, unless the Company determines there is an expected credit loss. The Company evaluates its investments for expected credit losses. The Company believes it is able to and intends to hold each of the investments held with an unrealized loss as of June 27, 2021 until the investments fully recover in market value. No allowance for credit losses was recorded as of June 27, 2021. The contractual maturities of short-term investments at June 27, 2021 were as follows: (in millions of U.S. Dollars) Within One Year After One, Within Five Years After Five, Within Ten Years After Ten Years Total Municipal bonds $24.7 $116.6 $— $— $141.3 Corporate bonds 80.3 379.2 — — 459.5 U.S. agency securities 3.5 12.3 — — 15.8 U.S. treasury securities 24.7 47.8 — — 72.5 Certificates of deposit 16.5 — — — 16.5 Commercial paper 50.0 — — — 50.0 Variable rate demand note — — — 20.0 20.0 Total short-term investments $199.7 $555.9 $— $20.0 $775.6 |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Jun. 27, 2021 | |
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 June 27, 2021, financial assets utilizing Level 1 inputs included money market funds, U.S. treasury securities and U.S. agency securities, and financial assets utilizing Level 2 inputs included municipal bonds, corporate bonds, certificates of deposit, commercial paper, variable rate demand notes 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 June 27, 2021. There were no transfers between Level 1 and Level 2 during the year ended June 27, 2021. Financial instruments carried at fair value were as follows: June 27, 2021 June 28, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 96.9 $ — $ — $ 96.9 $ 199.9 $ — $ — $ 199.9 Municipal bonds — 16.0 — 16.0 — — — — U.S. agency securities — 6.0 — 6.0 — 19.6 — 19.6 U.S. treasury securities — — — — 19.0 — — 19.0 Certificates of deposit — — — — — 54.3 — 54.3 Commercial paper — 62.4 — 62.4 — 11.1 — 11.1 Variable rate demand note — 22.9 — 22.9 — — — — Total cash equivalents 96.9 107.3 — 204.2 218.9 85.0 — 303.9 Short-term investments: Municipal bonds — 141.3 — 141.3 — 132.0 — 132.0 Corporate bonds — 459.5 — 459.5 — 480.1 — 480.1 U.S. agency securities — 15.8 — 15.8 — 29.1 — 29.1 U.S. treasury securities 72.5 — — 72.5 52.9 — — 52.9 Certificates of deposit — 16.5 — 16.5 — 83.3 — 83.3 Commercial paper — 50.0 — 50.0 — 11.0 — 11.0 Variable rate demand note — 20.0 — 20.0 — 2.5 — 2.5 Total short-term investments 72.5 703.1 — 775.6 52.9 738.0 — 790.9 Other long-term investments: Common stock of non-U.S. corporations — — — — — 55.9 — 55.9 Total assets $169.4 $810.4 $— $979.8 $271.8 $878.9 $— $1,150.7 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets | 12 Months Ended |
Jun. 27, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Intangible Assets | Goodwill and Intangible Assets Goodwill The following table summarizes changes in goodwill during the fiscal year ended June 27, 2021: (in millions of U.S. Dollars) Balance at June 28, 2020 $349.7 Transfer in connection with LED Business Divestiture (1) 9.5 Balance at June 27, 2021 $359.2 (1) In the second quarter of fiscal 2021, the Company determined that as part of its goodwill impairment analysis on held for sale assets related to the LED Business Divestiture, it was necessary to transfer a portion of goodwill from the former LED Products segment, then classified as discontinued operations, to goodwill associated with continuing operations. As of the first day of its fourth quarter of fiscal 2021, the Company performed a qualitative impairment test on the goodwill balance and concluded there was no impairment. Intangible Assets Intangible assets, net included the following: June 27, 2021 June 28, 2020 (in millions of U.S. Dollars) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets: Customer relationships $96.8 ($25.1) $71.7 $96.8 ($19.0) $77.8 Developed technology 68.0 (28.2) 39.8 68.0 (22.8) 45.2 Non-compete agreements 12.2 (10.1) 2.1 12.2 (7.1) 5.1 Acquisition related intangible assets 177.0 (63.4) 113.6 177.0 (48.9) 128.1 Patent and licensing rights 67.1 (40.2) 26.9 69.3 (40.5) 28.8 Total intangible assets 244.1 (103.6) 140.5 246.3 (89.4) 156.9 Total amortization of acquisition-related intangibles assets was $14.5 million, $14.5 million and $15.6 million and total amortization of patents and licensing rights was $5.9 million, $5.9 million and $5.7 million for the years ended June 27, 2021, June 28, 2020 and June 30, 2019, respectively. The Company invested $5.9 million, $4.4 million and $3.3 million for the years ended June 27, 2021, June 28, 2020 and June 30, 2019, respectively, for patent and licensing rights. For the fiscal years ended June 27, 2021, June 28, 2020 and June 30, 2019, the Company recognized $0.7 million, $1.2 million and $0.6 million, respectively, in impairment charges related to its patent portfolio. Total future amortization expense of intangible assets is estimated to be as follows: (in millions of U.S. Dollars) Fiscal Year Ending Acquisition Related Intangibles Patents Total June 26, 2022 $13.5 $4.9 $18.4 June 25, 2023 11.0 4.0 15.0 June 30, 2024 10.4 3.4 13.8 June 29, 2025 10.4 2.6 13.0 June 28, 2026 9.3 1.9 11.2 Thereafter 59.0 10.1 69.1 Total future amortization expense $113.6 $26.9 $140.5 |
Long-term Debt
Long-term Debt | 12 Months Ended |
Jun. 27, 2021 | |
Debt Disclosure [Abstract] | |
Long-term Debt | Long-term Debt Revolving Line of Credit As of June 27, 2021, the Company had a $125.0 million secured revolving line of credit (the Credit Agreement) under which the Company can borrow, repay and reborrow loans from time to time prior to its scheduled maturity date of January 9, 2023. The Credit Agreement requires the Company to maintain a ratio of certain cash equivalents and marketable securities to outstanding loans and letter of credit obligations greater than 1.25:1, with no other financial covenants. The Company classifies balances outstanding under the Credit Agreement as long-term debt in the consolidated balance sheets. As of June 27, 2021, the Company had no outstanding borrowings under the Credit Agreement, $125.0 million in available commitments under the Credit Agreement and $125.0 million available for borrowing. For the fiscal year ended June 27, 2021, the average interest rate was 0.03%, related to a seven 2023 Convertible Notes On August 24, 2018, the Company sold $500.0 million aggregate principal amount of 0.875% convertible senior notes due September 1, 2023 to qualified institutional buyers pursuant to Rule 144A under the Securities Act of 1933, as amended (the Securities Act), and an additional $75.0 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (the 2023 Notes). The total net proceeds from the debt offering was approximately $562.1 million. The conversion rate will initially be 16.6745 shares of common stock per one thousand dollars in principal amount of 2023 Notes (equivalent to an initial conversion price of approximately $59.97 per share of common stock). The conversion rate will be subject to adjustment for some events, but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, or following the Company's issuance of a notice of redemption, the Company will increase the conversion rate for a holder who elects to convert its 2023 Notes in connection with such a corporate event, or who elects to convert any 2023 Notes called for redemption during the related redemption period in certain circumstances. The Company may not redeem the 2023 Notes prior to September 1, 2021. The Company may redeem for cash all or any portion of the 2023 Notes, at its option, on a redemption date occurring on or after September 1, 2021 and on or before the 40th scheduled trading day immediately before the maturity date, if the last reported sales price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides a notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. The redemption price will be 100% of the principal amount of the 2023 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes certain fundamental changes related to the Company's common stock, holders may require the Company to repurchase for cash all or any portion of their 2023 Notes at a fundamental change repurchase price equal to 100% of the principal amount of the 2023 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. Holders may convert their 2023 Notes at their option at any time prior to the close of business on the business day immediately preceding March 1, 2023 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending December 31, 2018 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five ten 2026 Convertible Notes On April 21, 2020, the Company sold $500.0 million aggregate principal amount of 1.75% convertible senior notes due May 1, 2026 to qualified institutional buyers pursuant to Rule 144A under the Securities Act and an additional $75.0 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (the 2026 Notes). The total net proceeds from the debt offerings was approximately $561.4 million. The conversion rate will initially be 21.1346 shares of common stock per one thousand dollars in principal amount of 2026 Notes (equivalent to an initial conversion price of approximately $47.32 per share of common stock). The conversion rate will be subject to adjustment for some events, but will not be adjusted for any accrued and unpaid interest. In addition, following certain corporate events that occur prior to the maturity date, or following the Company's issuance of a notice of redemption, the Company will increase the conversion rate for a holder who elects to convert its 2026 Notes in connection with such a corporate event, or who elects to convert any 2026 Notes called for redemption during the related redemption period in certain circumstances. The Company may not redeem the 2026 Notes prior to May 1, 2023. The Company may redeem for cash all or any portion of the 2026 Notes, at its option, on a redemption date occurring on or after May 1, 2023 and on or before the 40th scheduled trading day immediately before the maturity date, if the last reported sales price of its common stock has been at least 130% of the conversion price then in effect for at least 20 trading days (whether or not consecutive), including the trading day immediately preceding the date on which the Company provides a notice of redemption, during any 30 consecutive trading day period ending on, and including, the trading day immediately preceding the date on which the Company provides notice of redemption. The redemption price will be 100% of the principal amount of the 2026 Notes to be redeemed, plus accrued and unpaid interest to, but excluding, the redemption date. If the Company undergoes certain fundamental changes related to the Company's common stock, holders may require the Company to repurchase for cash all or any portions of their 2026 Notes at a fundamental repurchase price equal to 100% of the principal amount of the 2026 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date. Holders may convert their 2026 Notes at their option at any time prior to the close of business on the business day immediately preceding November 3, 2025 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending June 30, 2020 (and only during such calendar quarter), if the last reported sale price of the common stock for at least 20 trading days (whether or not consecutive) during a period of 30 consecutive trading days ending on, and including, the last trading day of the immediately preceding calendar quarter is greater than or equal to 130% of the conversion price on each applicable trading day; (2) during the five ten The Company used approximately $144.3 million of the net proceeds from the sale of the 2026 Notes to repurchase approximately $150.2 million aggregate principal amount of the 2023 Notes, including approximately $0.2 million of accrued interest on such notes, in privately negotiated transactions. Accounting for 2023 Notes and 2026 Notes (collectively, the Notes) In accounting for the issuance of the 2023 Notes and 2026 Notes, the Company separated the Notes into liability and equity components. The carrying amount of the liability of the equity component representing the conversion option was $110.6 million and $145.4 million for the 2023 and 2026 Notes, respectively. The amounts were determined by deducting the fair value of the liability component from the par value of each of the Notes. Due to the partial extinguishment of the 2023 Notes, the equity component of the 2023 Notes was reduced by $27.7 million. The equity component is not remeasured as long as it continues to meet the conditions for equity classification. The excess of the principal amount of the liability component over its carrying amount (the debt discount), along with related issuance fees, are amortized to interest expense over the term of the Notes at an effective annual interest rate of 5.87% and 7.45% for the 2023 and 2026 Notes, respectively. The Notes are equal in right of payment to any of the Company’s unsecured indebtedness; senior in right of payment to the Company’s existing and future indebtedness that is expressly subordinated in right of payment to the Notes; effectively subordinated in right of payment of any of the Company’s secured indebtedness to the extent of the value of the assets securing such indebtedness; and structurally subordinated to all indebtedness and other liabilities (including trade payables) of the Company’s subsidiaries. The net carrying amount of the liability component of the Notes is as follows: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Principal $999.8 $999.8 Unamortized discount and issuance costs (175.9) (216.0) Net carrying amount $823.9 $783.8 The net carrying amount of the equity component of the Notes is as follows: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Discount related to value of conversion option $262.3 $262.3 Partial extinguishment of 2023 Notes (27.7) (27.7) Debt issuance costs (6.3) (6.3) Net carrying amount $228.3 $228.3 The interest expense, net recognized related to the Notes is as follows: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Interest expense, net of capitalized interest $10.4 $6.8 4.3 Amortization of discount and issuance costs, net of capitalized interest 32.8 26.2 18.3 Total interest expense, net $43.2 $33.0 22.6 The Company capitalizes interest related to the Notes in connection with the building of a new silicon carbide device fabrication facility in New York. For the fiscal year ended June 27, 2021, the Company capitalized $3.3 million of interest expense and $7.3 million of amortization of discount and issuance costs. No interest was capitalized for fiscal years ended June 28, 2020 and June 30, 2019. The last reported sale price of the Company's common stock was greater than or equal to 130% of the applicable conversion price for both the 2023 and 2026 Notes for at least 20 trading days in the 30 consecutive trading days ended on June 30, 2021. As a result, the Notes are convertible at the option of the holders during the calendar quarter ended September 30, 2021. As of June 27, 2021, the if-converted values of the 2023 and 2026 Notes exceeded their respective principal amounts by $273.5 million and $623.1 million, respectively. The estimated fair value of the Notes is $1.9 billion, as determined by a Level 2 valuation as of June 27, 2021. |
Shareholders' Equity
Shareholders' Equity | 12 Months Ended |
Jun. 27, 2021 | |
Equity [Abstract] | |
Shareholders' Equity | Shareholders’ Equity On February 11, 2021, the Company established an “at-the-market” offering program (the ATM Program) pursuant to which the Company could offer and sell, from time to time through sales agents, up to an aggregate of $500 million of the Company’s common stock. The ATM Program was conducted pursuant to an equity distribution agreement (the Equity Distribution Agreement) entered into by the Company and Wells Fargo Securities, LLC, BMO Capital Markets Corp., BofA Securities Inc., Canaccord Genuity LLC, Citigroup Global Markets Inc., Credit Suisse Securities (USA) LLC, Goldman Sachs & Co. LLC, Morgan Stanley & Co. LLC and Truist Securities, Inc. (the Managers). On February 19, 2021, the Company announced that it sold approximately $500.0 million of common stock under the ATM Program. As such, the ATM Program automatically terminated in accordance with the terms of the Equity Distribution Agreement. In total, the Company sold and received payment for 4,222,511 additional shares of common stock at a weighted average price of $118.41 per share through the ATM Program for total gross proceeds of approximately $500.0 million and net proceeds of approximately $489.1 million, after $10.0 million in commissions to the Managers and $0.9 million in other offering costs. The Company expects to use the net proceeds for general corporate purposes. At June 27, 2021, the Company had reserved a total of approximately 42.2 million shares of its common stock for future issuance as follows (in thousands): Number of Shares For exercise of outstanding common stock options 142 For vesting of outstanding stock units 2,168 For future equity awards under 2013 Long-Term Incentive Compensation Plan 5,329 For future issuance under the Non-Employee Director Stock Compensation and Deferral Program 45 For future issuance to employees under the 2020 Employee Stock Purchase Plan 5,839 For future issuance upon conversion of the 2023 Notes 12,560 For future issuance upon conversion of the 2026 Notes 16,102 Total common shares reserved 42,185 |
Loss Per Share
Loss Per Share | 12 Months Ended |
Jun. 27, 2021 | |
Earnings Per Share [Abstract] | |
Loss Per Share | Loss Per Share The details of the computation of basic and diluted loss per share are as follows: Fiscal Years Ended (in millions of U.S. Dollars, except share data) June 27, 2021 June 28, 2020 June 30, 2019 Net loss from continuing operations $ (341.3) $ (197.6) $ (118.5) Net (loss) income from discontinued operations (181.2) 7.0 (256.6) Net income from discontinued operations attributable to noncontrolling interest 1.4 1.1 — Net (loss) income from discontinued operations attributable to controlling interest (182.6) 5.9 (256.6) Weighted average number of common shares - basic and diluted (in thousands) 112,346 107,935 103,576 (Loss) earnings per share - basic and diluted: Continuing operations $ (3.04) $ (1.83) $ (1.14) Discontinued operations attributable to controlling interest $ (1.63) $ 0.05 $ (2.48) Diluted net loss per share is the same as basic net loss per share for the periods presented due to potentially dilutive items being anti-dilutive given the Company's net loss from continuing operations. For the fiscal years ended June 27, 2021, June 28, 2020 and June 30, 2019, 3.4 million, 5.4 million and 9.0 million, respectively, of dilutive shares were excluded from the calculation of diluted loss per share because their effect would be anti-dilutive. Future earnings per share of the Company are also subject to dilution from conversion of its convertible notes under certain conditions as described in Note 10, “Long-term Debt.” |
Stock-Based Compensation
Stock-Based Compensation | 12 Months Ended |
Jun. 27, 2021 | |
Share-based Payment Arrangement [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. At June 27, 2021, there were 15.9 million shares authorized for issuance under the plan and 5.3 million shares remaining for future grants. 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 and/or external based market metrics. 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. For performance awards with market conditions, the Company estimates the grant date fair value using the Monte Carlo valuation model and expenses the awards over the vesting period regardless of whether the market condition is ultimately satisfied. The Company also has an Employee Stock Purchase Plan (ESPP) that provides employees with the opportunity to purchase common stock at a discount. At June 27, 2021, there were 6.0 million shares authorized for issuance under the ESPP, as amended, with 5.8 million shares remaining for future issuance. 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 option activity as of June 27, 2021 and changes during the fiscal year then ended (shares in thousands): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Total Intrinsic Value (in millions of U.S. Dollars) Outstanding at June 28, 2020 983 $37.88 Granted — — Exercised (830) 39.34 Forfeited or expired (11) 64.51 Outstanding at June 27, 2021 142 27.37 1.62 $10.1 Vested and expected to vest at June 27, 2021 142 27.37 1.62 $10.1 Exercisable at June 27, 2021 142 27.37 1.62 $10.1 The total intrinsic value in the table above represents the total pretax intrinsic value, which is the total difference between the closing price of the Company’s common stock on June 25, 2021 (the last trading day of fiscal 2021) of $98.59 and the exercise price for in-the-money options that would have been received by the holders if all instruments had been exercised on June 27, 2021. As of June 27, 2021, there was no unrecognized compensation cost related to non-vested stock options. The following table summarizes information about stock options outstanding and exercisable at June 27, 2021 (shares in thousands): Options Outstanding Options Exercisable Range of Exercise Price Number Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Weighted Average Exercise Price $0.01 to $25.00 66 2.1 $24.34 66 $24.34 $25.01 to $35.00 62 1.4 26.92 62 26.92 $35.01 to $45.00 1 0.8 35.17 1 35.17 $45.01 to $55.00 13 0.2 45.13 13 45.13 Total 142 142 Total intrinsic value of options exercised for the fiscal years ended June 27, 2021, June 28, 2020 and June 30, 2019 was $30.8 million, $22.8 million and $63.3 million, respectively. Restricted Stock Units A summary of nonvested restricted stock units (RSUs) outstanding as of June 27, 2021 and changes during the year then ended is as follows (shares in thousands): Number of RSUs Weighted Average Grant-Date Fair Value Nonvested at June 28, 2020 2,932 $43.89 Granted 1,059 67.00 Vested (1,459) 38.12 Forfeited (364) 53.14 Nonvested at June 27, 2021 2,168 $57.38 The aggregate fair value of awards vested in fiscal years ended June 27, 2021, June 28, 2020 and June 30, 2019, based on the market price of the Company's common stock on the vesting date, was $110.6 million, $49.8 million and $68.1 million, respectively. As of June 27, 2021, there was $73.4 million of unrecognized compensation cost related to nonvested awards, which is expected to be recognized over a weighted average period of 1.88 years. 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 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 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 classified in the consolidated statements of operations as follows: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Cost of revenue, net $14.4 $10.0 $7.8 Research and development 8.7 8.0 6.2 Sales, general and administrative 30.1 30.8 28.9 Total stock-based compensation expense $53.2 $48.8 $42.9 Stock-based compensation expense may differ from the impact of stock-based compensation to additional paid in capital due to manufacturing related stock-based compensation capitalized within inventory. The Black-Scholes and Monte Carlo option pricing models require the input of highly subjective assumptions. The assumptions listed below represent management's best estimates, but these estimates involve inherent uncertainties and the application of management judgment. As a result, if other assumptions had been used, recorded share-based compensation expense could have been materially different from that depicted above. The range of assumptions used to value stock issued under the ESPP were as follows: Fiscal Years Ended June 27, 2021 June 28, 2020 June 30, 2019 Risk-free interest rate 0.03 - 0.17% 0.12 - 2.67% 2.39 - 2.67% Expected life, in years 0.5 - 1.0 0.5 - 1.0 0.5 - 1.0 Volatility 52.4 - 82.6% 34.5 - 82.6% 34.5 - 39.6% Dividend yield — — — The range of assumptions used for issued performance units valued using the Monte Carlo model were as follows: Fiscal Years Ended June 27, 2021 June 28, 2020 June 30, 2019 Risk-free interest rate 0.11 - 1.66% 0.28 - 1.66% 2.68% Expected life, in years 3.0 3.0 3.0 Average volatility of peer companies 48.9 - 60.5% 48.9 - 55.2% 46.8% Average correlation coefficient of peer companies 0.36 - 0.51 0.36 - 0.45 0.34 Dividend yield — — — The following describes each of these assumptions and the Company’s methodology for determining each assumption: Risk-Free Interest Rate The Company estimates the risk-free interest rate using the U.S. Treasury bill rate with a remaining term equal to the expected life of the award. Expected Life The expected life represents the period the awards are expected to be outstanding. In determining the appropriate expected life of its stock options, the Company segregates its grantees into categories based upon employee levels that are expected to be indicative of similar option-related behavior. The expected useful lives for each of these categories are then estimated giving consideration to (1) the weighted average vesting periods, (2) the contractual lives of the stock options, (3) the relationship between the exercise price and the fair market value of the Company’s common stock, (4) expected employee turnover, (5) the expected future volatility of the Company’s common stock, and (6) past and expected exercise behavior, among other factors. Expected Volatility The Company estimates expected volatility for the options and ESPP awards giving consideration to the expected life of the respective award, the Company’s current expected growth rate, implied volatility in traded options for its common stock, and the historical volatility of its common stock. For purposes of estimating volatility for use in the Monte Carlo model for the market-based awards, the Company utilizes historical volatilities of the Company and the members of the defined peer group. Expected Dividend Yield The Company estimates the expected dividend yield by giving consideration to its current dividend policies as well as those anticipated in the future considering the Company’s current plans and projections. The Company has not historically issued dividends. Correlation Coefficient The correlation coefficients are calculated based upon the price data used to calculate the historical volatilities and are used to model the way in which each entity tends to move in relation to its peers. |
Income Taxes
Income Taxes | 12 Months Ended |
Jun. 27, 2021 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | Income Taxes The following were the components of loss before income taxes: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Domestic ($348.7) ($210.3) ($92.2) Foreign 8.5 4.7 (30.7) Loss before income taxes ($340.2) ($205.6) ($122.9) The following were the components of income tax expense (benefit): Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Current: Federal $0.1 ($7.3) $1.4 Foreign 0.1 0.2 0.5 State 0.2 0.1 0.3 Total current 0.4 (7.0) 2.2 Deferred: Federal 0.7 1.8 (1.9) Foreign — (2.8) (4.5) State — — (0.2) Total deferred 0.7 (1.0) (6.6) Income tax expense (benefit) $1.1 ($8.0) ($4.4) Actual income tax expense (benefit) differed from the amount computed by applying each period's U.S. federal statutory tax rate to pre-tax earnings as a result of the following: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 % of Loss June 28, 2020 % of Loss June 30, 2019 % of Loss Federal income tax provision at statutory rate ($71.4) 21 % ($43.2) 21 % ($25.8) 21 % (Decrease) increase in income tax expense resulting from: State tax provision, net of federal benefit (1.9) 1 % (1.9) 1 % (2.0) 2 % Tax exempt interest (0.1) — % (0.5) — % (0.4) — % (Decrease) increase in tax reserve — — % (0.3) — % 0.5 — % Research and development credits (4.3) 1 % (3.3) 2 % (2.8) 2 % Foreign tax credit (0.4) — % (0.3) — % (0.4) — % Increase (decrease) in valuation allowance 75.0 (22) % 50.3 (25) % 4.3 (4) % Partial extinguishment of convertible notes — — % (6.0) 3 % — — % Stock-based compensation (2.8) 1 % 2.1 (1) % 0.7 (1) % Statutory rate differences 1.1 — % 1.2 (1) % 6.0 (5) % Foreign earnings taxed in U.S. 2.7 (1) % 0.3 — % 0.4 — % Other foreign adjustments (0.1) — % 0.3 — % (0.1) — % Net operating loss carryback — — % (7.2) 4 % — — % Provision to return adjustments (0.2) — % (1.3) 1 % 11.8 (10) % Tax on distributable foreign earnings — — % — — % — — % Impact of rate changes 2.7 (1) % 0.8 — % 2.7 (2) % Expiration of state credits 0.7 — % 0.9 — % 1.2 (1) % Other 0.1 — % 0.1 — % (0.5) — % Income tax expense (benefit) $1.1 — % ($8.0) 4 % ($4.4) 4 % The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Deferred tax assets: Compensation $10.4 $4.4 Inventories 13.6 7.9 Sales return reserve and allowance for bad debts 2.3 2.6 Federal and state net operating loss carryforwards 360.6 180.1 Federal credits 42.1 30.3 State credits 1.2 1.9 48C investment tax credits 36.6 37.5 Investments 0.3 — Stock-based compensation 6.1 8.3 Deferred revenue 26.3 23.1 Lease liabilities 6.2 6.5 Other 4.5 5.0 Total gross deferred assets 510.2 307.6 Less valuation allowance (414.4) (208.5) Deferred tax assets, net 95.8 99.1 Deferred tax liabilities: Property and equipment (36.9) (27.8) Intangible assets (16.6) (19.2) Investments (1.1) (1.6) Prepaid taxes and other (0.7) (0.7) Foreign earnings recapture — (2.0) Taxes on unremitted foreign earnings (1.5) — Lease assets (6.1) (6.3) Convertible notes (34.4) (42.1) Total gross deferred liability (97.3) (99.7) Deferred tax liability, net ($1.5) ($0.6) The components giving rise to the net deferred tax assets (liabilities) have been included in the consolidated balance sheets as follows: Balance at June 27, 2021 (in millions of U.S. Dollars) Assets Liabilities U.S. federal income taxes $— ($2.5) Foreign income taxes 1.0 — Total $1.0 ($2.5) Balance at June 28, 2020 (in millions of U.S. Dollars) Assets Liabilities U.S. federal income taxes $— ($1.8) Foreign income taxes 1.2 — Total $1.2 ($1.8) The Company weighs all available evidence, both positive and negative, to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets by jurisdiction. The Company has concluded that it is necessary to recognize a full valuation allowance against its U.S. and Luxembourg deferred tax assets as of June 27, 2021. As of June 28, 2020, the U.S. valuation allowance was $205.2 million. For the fiscal year ended June 27, 2021, the Company increased the U.S. valuation allowance by $87.4 million primarily due to the Company's current year domestic loss and tax credits generated. As of June 28, 2020, the Luxembourg valuation allowance was $3.3 million. For the fiscal year ended June 27, 2021, the Company increased this valuation allowance by $118.5 million due to the current year loss in Luxembourg driven primarily by the LED Business Divestiture. As a result of the LED Business Divestiture and the liquidation of the Company’s common stock ownership interest in ENNOSTAR, the Company began reviewing its legal entity structure, including its Luxembourg holding company, during the fourth quarter of fiscal 2021. As of June 27, 2021, the Company is still performing the due diligence necessary to understand its ability and desire to restructure its Luxembourg holding company. If the Company determines it is willing and able to execute a restructuring of its Luxembourg holding company, it is reasonably possible the action could generate taxable income of the right character to utilize all or a portion of the Company’s existing $121.8 million of deferred tax assets in Luxembourg. As a result, the Company believes it is reasonably possible within the next twelve months, and potentially as early as the first quarter of fiscal 2022, that objective positive evidence may become available to allow the Company to conclude all or a portion of the $121.8 million of Luxembourg deferred tax assets are realizable. This determination would result in the release of all or a portion of the Luxembourg valuation allowance. The release of the Luxembourg valuation allowance could result in the recognition of $121.8 million of net operating loss deferred tax assets and a decrease to income tax expense in the period the release is recorded. As of June 27, 2021, the Company had approximately $491.8 million of foreign net operating loss carryovers, of which $488.5 million are offset by a valuation allowance. Of the Company's foreign net operating loss carryovers, $7.8 million have no carry forward limitation and the remaining $484.0 million will begin to expire in fiscal 2035. As of June 27, 2021, the Company had approximately $1.1 billion of federal net operating loss carryovers and $251.0 million of state net operating loss carryovers which are fully offset by a valuation allowance. Additionally, the Company had $78.7 million of federal and $1.6 million of state income tax credit carryforwards which are fully offset by a valuation allowance. The federal and state net operating loss carryovers will begin to expire in fiscal 2038 and fiscal 2022, respectively. The federal and state income tax credit carryforwards will begin to expire in fiscal 2031 and fiscal 2022, respectively. U.S. GAAP requires a two-step approach to recognizing and measuring uncertain tax positions. The first step is to evaluate the tax position for recognition by determining if the weight of available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is cumulatively more than 50% likely to be realized upon ultimate settlement. As of June 28, 2020, the Company’s liability for unrecognized tax benefits was $7.4 million. During the fiscal year ended June 27, 2021, the Company had no material changes to its unrecognized tax benefits. As a result, the total liability for unrecognized tax benefits as of June 27, 2021 was $7.4 million. If any portion of this $7.4 million is recognized, the Company will then include that portion in the computation of its effective tax rate. Although the ultimate timing of the resolution and/or closure of audits is highly uncertain, the Company believes it is reasonably possible that $0.6 million of gross unrecognized tax benefits will change in the next 12 months as a result of statute requirements or settlement with tax authorities. The following is a tabular reconciliation of the Company’s change in uncertain tax positions: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Balance at beginning of period $7.4 $8.2 $8.6 Decrease related to current year change in law — — — Increases related to prior year tax positions — — 0.5 Decreases related to prior year tax positions — — — Settlements with tax authorities — (0.1) — Expiration of statute of limitations for assessment of taxes — (0.7) (0.9) Balance at end of period $7.4 $7.4 $8.2 The Company's policy is to include interest and penalties related to unrecognized tax benefits within the income tax expense (benefit) line item in the consolidated statements of operations. Interest and penalties relating to unrecognized tax benefits recognized in the consolidated statements of operations totaled less than $0.1 million for the fiscal years ended June 27, 2021, June 28, 2020, and June 30, 2019. The Company accrued less than $0.1 million for interest and penalties relating to unrecognized tax benefits in the consolidated balance sheets as of June 27, 2021 and June 28, 2020. 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 2017. For U.S. state tax returns, the Company is generally no longer subject to tax examinations for fiscal years prior to 2017. For foreign purposes, the Company is generally no longer subject to examination for tax periods prior to 2011. Certain carryforward tax attributes generated in prior years remain subject to examination, adjustment and recapture. The Company provides for income taxes on the earnings of foreign subsidiaries unless the subsidiaries’ earnings are considered indefinitely reinvested outside the United States. As of June 27, 2021, the Company has approximately $189.7 million of undistributed earnings for certain non-U.S. subsidiaries. The Company has determined that $171.4 million of the $189.7 million of undistributed foreign earnings are expected to be repatriated in the foreseeable future. The Company expects to incur $1.4 million of foreign income taxes upon repatriation of the $171.4 million foreign earnings. As of June 27, 2021, the Company has not provided income taxes on the remaining undistributed foreign earnings of $18.3 million as the Company continues to maintain its intention to reinvest these earnings in foreign operations indefinitely. If, at a later date, these earnings were repatriated to the United States, the Company would be required to pay approximately $0.3 million in taxes on these amounts. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Jun. 27, 2021 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | Commitments and Contingencies 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 monetary 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 operations, financial position and overall trends. The outcomes in these matters are not reasonably estimable. Grant Disbursement Agreement (GDA) with the State of New York The Company currently has a GDA with the State of New York Urban Development Corporation (doing business as Empire State Development). The GDA provides a potential total grant amount of $500.0 million to partially and fully reimburse the Company for certain property, plant and equipment costs related to the Company's construction of a new silicon carbide device fabrication facility in Marcy, New York. The GDA was signed in the fourth quarter of fiscal 2020 and requires the Company to satisfy a number of objectives for the Company to receive reimbursements through the span of the 13-year agreement. These objectives include maintaining a certain level of local employment, investing a certain amount in locally administered research and development activities and the payment of an annual commitment fee for the first six years. Additionally, the Company has agreed, under a separate agreement (the SUNY Agreement), to sponsor the creation of two endowed faculty chairs and fund a scholarship program at SUNY Polytechnic Institute. As of June 27, 2021, the annual cost of satisfying the objectives of the GDA and the SUNY Agreement, excluding the direct and indirect costs associated with employment, varies from $2.5 million to $5.2 million per year through fiscal 2031. As of June 27, 2021, the Company has reduced property, plant and equipment by $27.1 million as a result of GDA reimbursements, of which $10.7 million has been received in cash and an additional $4.6 million and $11.8 million are recorded as receivables in other current assets and other assets, respectively, in the consolidated balance sheets. |
Concentrations of Risk
Concentrations of Risk | 12 Months Ended |
Jun. 27, 2021 | |
Risks and Uncertainties [Abstract] | |
Concentrations of Risk | Concentrations of Risk Financial instruments, which may subject the Company to a concentration of risk, consist principally of short-term investments, cash equivalents and accounts receivable. Short-term investments consist primarily of municipal bonds, corporate bonds, U.S. agency securities, U.S. treasury securities, commercial paper, certificates of deposit, and variable rate demand notes at interest rates that vary by security. The Company’s cash equivalents consist primarily of money market funds. Certain bank deposits may at times be in excess of the FDIC insurance limits. The Company sells its products on account to manufacturers, distributors and others worldwide and generally requires no collateral. For the fiscal year ended June 27, 2021, ST Microelectronics, Inc. (STMicroelectronics), Arrow Electronics, Inc. (Arrow) and Sumitomo Corporation (Sumitomo) represented 18%, 13% and 10% of revenue, respectively. For the fiscal year ended June 28, 2020, STMicroelectronics and Sumitomo represented 19% and 14% of revenue, respectively. For the fiscal year ended June 30, 2019, Arrow, Sumitomo and STMicroelectronics represented 14%, 14% and 11% of revenue, respectively. No other customers individually accounted for more than 10% of revenue for the fiscal years ended June 27, 2021, June 28, 2020 and June 30, 2019. STMicroelectronics and Arrow accounted for 16% and 16% of the accounts receivable balance as of June 27, 2021, respectively. STMicroelectronics and Infineon accounted for 14% and 11% of the accounts receivable balance as of June 28, 2020, respectively. No other customers accounted for more than 10% of the accounts receivable balance as of June 27, 2021 and June 28, 2020. |
Retirement Savings Plan
Retirement Savings Plan | 12 Months Ended |
Jun. 27, 2021 | |
Retirement Benefits [Abstract] | |
Retirement Savings Plan | Retirement Savings PlanThe Company sponsors one employee benefit plan (the 401(k) Plan) pursuant to Section 401(k) of the Internal Revenue Code. All U.S. employees are eligible to participate under the 401(k) Plan on the first day of a new fiscal month after the date of hire. Under the 401(k) Plan, there is no fixed dollar amount of retirement benefits; rather, the Company matches a defined percentage of employee deferrals, and employees vest in these matching funds over time. Employees choose their investment elections from a list of available investment options. During the fiscal years ended June 27, 2021, June 28, 2020 and June 30, 2019, the Company contributed approximately $8.0 million, $7.7 million and $7.3 million to the 401(k) Plan, respectively. The Pension Benefit Guaranty Corporation does not insure the 401(k) Plan. |
Restructuring
Restructuring | 12 Months Ended |
Jun. 27, 2021 | |
Restructuring and Related Activities [Abstract] | |
Restructuring | Restructuring The Company has approved various operational plans that include restructuring costs. All restructuring costs are recorded in other operating expense on the consolidated statement of operations. Corporate Restructuring In April 2018, the Company approved a corporate restructuring plan. The purpose was to restructure and realign the Company's cost base with the long-range business strategy that was announced in February 2018. The restructuring activity was completed in the second quarter of fiscal 2019. For the fiscal year ended June 30, 2019, $2.6 million was expensed relating to this corporate restructuring plan. In September 2020, the Company realigned certain resources to further focus on areas vital to the Company's growth while driving efficiencies. As a result, the Company recorded $2.8 million in severance-related costs for the fiscal year ended June 27, 2021. The plan has concluded and all expenses have been paid as of June 27, 2021. Additionally, in February 2021, the Company realigned the structure of its Asia sales presence. As a result, the Company recorded $0.6 million in severance related costs for the fiscal year ended June 27, 2021. The plan has concluded and all expenses have been paid as of June 27, 2021. Factory Optimization Restructuring In May 2019, the Company started a significant, multi-year factory optimization plan anchored by a state-of-the-art, automated 200mm capable silicon carbide and GaN fabrication facility and an expansion of its materials factory at its U.S. campus headquarters in Durham, North Carolina. As part of the plan, the Company has incurred and will incur restructuring charges associated with the movement of equipment as well as disposals on certain long-lived assets. In September 2019, the Company announced its intent to build a new device fabrication facility in Marcy, New York to complement the factory expansion underway at its U.S. campus headquarters in Durham, North Carolina. The Company has commenced the building of the New York facility and is currently evaluating the impact of this decision on future restructuring charges. The Company expects approximately $90.0 million in restructuring charges related to the factory optimization plan to be incurred through 2024. For the fiscal years ended June 27, 2021, June 28, 2020 and June 30, 2019, the Company expensed $5.2 million, $9.0 million and $4.1 million, respectively, of restructuring charges associated with the movement of equipment related to the factory optimization plan, of which $0.1 million was accrued for as of June 27, 2021. Additionally, the Company expensed $3.4 million of restructuring charges associated with disposals of certain long-lived assets for the fiscal year ended June 27, 2021. Sales Restructuring In June 2019, the Company approved and implemented a sales restructuring plan to restructure and realign the Company's geographical sales team with the skills and experience needed to execute on the Company's business objectives. The restructuring activity was completed in the fourth quarter of fiscal 2019. The Company recorded $0.2 million in restructuring expense relating to this plan in the fourth quarter of fiscal 2019. Sales Representatives Restructuring In July 2019, the Company realigned its sales resources as part of the Company's transition to a more focused semiconductor company. As a result, the Company recorded $0.6 million in contract termination costs during the fiscal year ended June 28, 2020, of which $0.1 million was accrued in other current liabilities as of June 28, 2020. |
Quarterly Results of Operations
Quarterly Results of Operations - Unaudited | 12 Months Ended |
Jun. 27, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Results of Operations - Unaudited | Quarterly Results of Operations - Unaudited The following is a summary of the Company’s consolidated quarterly results of operations for each of the fiscal years ended June 27, 2021 and June 28, 2020: (in millions of U.S. Dollars, except share data) September 27, December 27, March 28, June 27, Fiscal Year 2021 Revenue, net $115.5 $127.0 $137.3 $145.8 $525.6 Cost of revenue, net 80.0 85.7 93.3 102.0 361.0 Gross profit 35.5 41.3 44.0 43.8 164.6 Net loss from continuing operations (75.3) (54.3) (66.5) (145.2) (341.3) Net loss from discontinued operations (108.8) (28.4) (41.6) (2.4) (181.2) Net loss (184.1) (82.7) (108.1) (147.6) (522.5) Net income from discontinued operations attributable to noncontrolling interest 0.3 0.3 0.8 — 1.4 Net loss attributable to controlling interest (184.4) (83.0) (108.9) (147.6) (523.9) Basic and diluted loss per share: Continuing operations ($0.69) ($0.49) ($0.59) ($1.26) ($3.04) Net loss attributable to controlling interest ($1.68) ($0.75) ($0.96) ($1.28) ($4.66) (in millions of U.S. Dollars, except share data) September 29, December 29, March 29, June 28, Fiscal Year 2020 Revenue, net $127.7 $120.7 $113.9 $108.4 $470.7 Cost of revenue, net 75.2 85.1 72.6 79.3 312.2 Gross profit 52.5 35.6 41.3 29.1 158.5 Net loss from continuing operations (39.3) (57.9) (56.2) (44.2) (197.6) Net income (loss) from discontinued operations 1.5 3.9 (3.7) 5.3 7.0 Net loss (37.8) (54.0) (59.9) (38.9) (190.6) Net income from discontinued operations attributable to noncontrolling interest — 0.3 0.2 0.6 1.1 Net loss attributable to controlling interest (37.8) (54.3) (60.1) (39.5) (191.7) Basic and diluted loss per share: Continuing operations ($0.37) ($0.54) ($0.52) ($0.41) ($1.83) Net loss attributable to controlling interest ($0.35) ($0.50) ($0.56) ($0.36) ($1.78) |
Basis of Presentation and Sum_2
Basis of Presentation and Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Jun. 27, 2021 | |
Accounting Policies [Abstract] | |
Principles of Consolidation | Principles of Consolidation The consolidated financial statements include the accounts of the Company and its wholly owned subsidiaries. All material intercompany accounts and transactions have been eliminated. |
Fiscal Year | Fiscal Year The Company’s fiscal year is a 52 or 53-week period ending on the last Sunday in the month of June. The Company’s 2021 and 2020 fiscal years were 52-week fiscal years. The Company's 2019 fiscal year was a 53-week fiscal year. The Company’s 2022 fiscal year will be a 52-week fiscal year. |
Reclassifications | Reclassifications Certain prior period amounts in the accompanying consolidated financial statements have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net loss or shareholders’ equity. |
Use of Estimates | Use of Estimates The preparation of consolidated financial statements in conformity with accounting principles generally accepted in the United States of America (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. The Company evaluates its estimates on an ongoing basis, including those related to revenue recognition, product warranty obligations, valuation of inventories, tax related contingencies, valuation of stock-based compensation, valuation of long-lived and intangible assets, other contingencies and litigation, among others. The Company generally bases its estimates on historical experience and on various other assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from other sources. Actual results could differ materially from those estimates. Certain accounting matters that generally require consideration of forecasted financial information were assessed regarding impacts from the COVID-19 pandemic as of June 27, 2021 and through the date of this Annual Report using reasonably available information as of those dates. The accounting matters assessed included, but were not limited to, allowance for doubtful accounts, the carrying value of goodwill and other long-lived tangible and intangible assets, the potential impact to earnings of unrealized losses on investments and valuation allowances for tax assets. While the assessments resulted in no material impacts to the consolidated financial statements as of and for the years ended June 27, 2021 and June 28, 2020, the Company believes the full impact of the pandemic remains uncertain and will continue to assess if ongoing developments related to the pandemic may cause future material impacts to its consolidated financial statements. |
Segment Information | Segment Information On March 1, 2021, the Company completed the LED Business Divestiture, and, as a result, now operates a single reporting segment within continuing operations, Wolfspeed. Accordingly, the Chief Operating Decision Maker (CODM) allocates resources and assesses performance on a consolidated basis. The Company's identified CODM is the Chief Executive Officer. |
Cash and Cash Equivalents | Cash and Cash Equivalents Cash and cash equivalents consist of unrestricted cash accounts and highly liquid investments with an original maturity of three months or less when purchased. Cash and cash equivalents are stated at cost, which approximates fair value. The Company holds cash and cash equivalents at several major financial institutions, which often exceed insurance limits set by the Federal Deposit Insurance Corporation (FDIC). The Company has not historically experienced any losses due to such concentration of credit risk. |
Accounts Receivable | Accounts Receivable For product revenue, the Company typically invoices its customers at the time of shipment for the sales order value of products shipped. Accounts receivable are recognized at the invoiced amount and are not subject to any interest or finance charges. The Company does not have any off-balance sheet credit exposure related to any of its customers. |
Allowance for Doubtful Accounts | Allowance for Doubtful Accounts On June 29, 2020, the first day of the 2021 fiscal year, the Company adopted Financial Accounting Standards Board (FASB) Accounting Standard Update (ASU) 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (ASU 2016-13) using the modified retrospective transition method, which replaced the incurred loss impairment methodology in U.S. GAAP with a methodology that reflects expected credit losses. Upon adoption, prior period balances were not adjusted and the Company determined no cumulative-effect adjustment to retained earnings as of June 29, 2020 was required. Under this new standard, expected credit losses for the Company's receivables are evaluated on a collective (pool) basis and aggregated on the basis of similar risk characteristics. These aggregated risk pools are reassessed at each measurement date. A combination of factors is considered in determining the appropriate estimate of expected credit losses, including broad-based economic indicators as well as customers' financial strength, credit standing, payment history and any historical defaults. Prior to the adoption of ASU 2016-13, the Company evaluated the collectability of accounts receivable based on a combination of factors. In cases where the Company became aware of circumstances that may impair a specific customer’s ability to meet its financial obligations subsequent to the original sale, the Company would recognize an allowance against amounts due, and thereby reduce the net recognized receivable to the amount the Company reasonably believed would be collected. For all other customers, the Company recognized an allowance for doubtful accounts based on the length of time the receivables were past due and consideration of other factors such as industry conditions, the current business environment and the Company’s historical experience. |
Investments | Investments Investments in certain securities may be classified into three categories: • Held-to-Maturity – Debt securities that the entity has the positive intent and ability to hold to maturity, which are reported at amortized cost. • Trading – Debt securities that are bought and held principally for the purpose of selling in the near term, which are reported at fair value, with unrealized gains and losses included in earnings. • Available-for-Sale – Debt securities not classified as either held-to-maturity or trading securities, which are reported at fair value with unrealized gains or losses excluded from earnings and reported as a separate component of shareholders’ equity. The Company reassesses the appropriateness of the classification (i.e. held-to-maturity, trading or available-for-sale) of its investments at the end of each reporting period. Upon adoption of ASU 2016-13, available-for-sale debt securities in an unrealized loss position at each measurement date are individually evaluated for expected credit losses. The Company evaluates whether the unrealized loss is due to market factors or changes in the investment holdings' credit rating. An expected credit loss will be recorded when an investment in an unrealized loss position is determined to have lost value from a decreased credit rating. The Company does not record an allowance for credit losses on receivables related to accrued interest. For the fiscal year ended June 27, 2021, no allowance for credit losses was recorded. Before the adoption of ASU 2016-13, the Company evaluated investments that experienced a decline below its original cost to determine whether the decline is other-than-temporary. Among other things, the Company considered the duration and extent of the decline and the economic factors that influenced the capital markets. For the fiscal years ended June 28, 2020, and June 30, 2019, the Company had no other-than-temporary declines below the cost basis of its investments. The Company utilizes specific identification in computing realized gains and losses on the sale of investments. Realized gains and losses on the sale of investments are reported in non-operating expense (income), net. Investments in marketable securities with maturities beyond one year may be classified as short-term based on their highly liquid nature and because such marketable securities represent the investment of cash that is available for current operations. |
Inventories | Inventories Inventories are stated at the lower of cost or net realizable value, with cost determined on a first-in, first-out (FIFO) method or an average cost method. The Company writes down its inventory balances for estimates of excess and obsolete amounts. These write-downs are recognized as a component of cost of revenue. At the point of the write-down, a new lower cost basis for that inventory is established, and any subsequent improvements in facts and circumstances do not result in the restoration or increase in that newly established lower cost basis. If that inventory is subsequently sold, the sale is recorded at the actual selling price and the related cost of revenue is recorded at the new lower cost basis. |
Property and Equipment | Property and Equipment Property and equipment are stated at cost and depreciated on a straight-line basis over the assets’ estimated useful lives. Leasehold improvements are amortized over the lesser of the asset life or the term of the related lease. In general, the Company’s policy for useful lives is as follows: Furniture and fixtures 5 years Buildings and building improvements 5 to 40 years Machinery and equipment 3 to 15 years Vehicles 5 years Computer hardware/software 3 years Leasehold improvements Shorter of estimated useful life or lease term Expenditures for repairs and maintenance are charged to expense as incurred. The costs for major renewals and improvements are capitalized and depreciated over their estimated useful lives. The cost and related accumulated depreciation of the assets are removed from the accounts upon disposition and any resulting gain or loss is reflected in operating income. The Company considers a long-lived asset to be abandoned after the Company has ceased use of such asset and there is no longer intent to use or repurpose the asset in the future. Abandoned long-lived assets are recorded at their salvage value, if any. |
Government Grant Disbursements | Government Grant Disbursements Government grant disbursements are recognized when there is reasonable assurance that: (1) the Company will comply with the relevant conditions and (2) the grant disbursement will be received. The Company receives grant disbursements from the State of New York Development Corporation relating to property, plant and equipment purchases in connection with its construction of a new silicon carbide device fabrication facility in Marcy, New York. Grant disbursements are recorded as a reduction to the related asset(s), which then reduces depreciation expense over the expected useful life of the asset on a straight-line basis. |
Shipping and Handling Costs | Shipping and Handling Costs Shipping and handling costs are included in cost of revenue, net in the consolidated statements of operations and are recognized as a period expense during the period in which they are incurred. |
Goodwill and Intangible Assets | Goodwill and Intangible Assets The Company recognizes the assets acquired and liabilities assumed in business combinations at their respective fair values at the date of acquisition, with any excess purchase price recognized as goodwill. Valuation of intangible assets entails significant estimates and assumptions including, but not limited to, estimating future cash flows from product revenue, developing appropriate discount rates, continuation of customer relationships and renewal of customer contracts, and approximating the useful lives of the intangible assets acquired. Goodwill The Company recognizes goodwill as an asset representing the future economic benefits arising from other assets acquired in a business combination that are not individually identified and separately recognized. The Company tests goodwill for impairment at least annually as of the first day of its fiscal fourth quarter, or when indications of potential impairment exist. The Company monitors for the existence of potential impairment indicators throughout the fiscal year. The Company conducts impairment testing for goodwill at the reporting unit level. Reporting units may be operating segments as a whole, or an operation one level below an operating segment, referred to as a component. The Company has determined that it has one reporting unit, Wolfspeed. The Company may initiate goodwill impairment testing by considering qualitative factors to determine whether it is more likely than not that a reporting unit’s carrying value is greater than its fair value. Such factors may include the following, among others: a significant decline in the reporting unit ’ s expected future cash flows; a sustained, significant decline in the Company ’ s stock price and market capitalization; a significant adverse change in legal factors or in the business climate; unanticipated competition; and slower growth rates; as well as changes in management, key personnel, strategy and customers . If the Company's qualitative assessment indicates it is more likely than not that the estimated fair value of a reporting unit exceeds its carrying value, no further analysis is required and goodwill is not impaired. Otherwise, the Company performs a quantitative goodwill impairment test to determine if goodwill is impaired. The quantitative test compares the fair value of a reporting unit with its carrying amount, including goodwill. If the fair value of the reporting unit exceeds the carrying value of the net assets associated with the reporting unit, goodwill is not considered impaired. If the carrying value of the net assets associated with the reporting unit exceeds the fair value of the reporting unit, the Company recognizes an impairment loss in an amount equal to the excess, not to exceed the carrying value of the reporting unit's goodwill. Once an impairment loss is recognized, the adjusted carrying value of the goodwill becomes the new accounting basis of the goodwill for the reporting unit. The Company derives a reporting unit ’ s fair value through a combination of the market approach (guideline transaction method and guideline public company method) and the income approach (a discounted cash flow analysis). The income approach utilizes a discount rate from a capital asset pricing model. The fair value is reconciled back to the Company ’ s consolidated market capitalization. Finite-Lived Intangible Assets U.S. GAAP requires that intangible assets, other than goodwill and indefinite-lived intangibles, must be amortized over their useful lives. The Company is currently amortizing its acquired intangible assets with finite lives over periods ranging from four Patent rights reflect costs incurred by the Company in applying for and maintaining patents owned by the Company and costs incurred in purchasing patents and related rights from third parties. Licensing rights reflect costs incurred by the Company in acquiring licenses under patents owned by others. The Company amortizes both on a straight-line basis over the expected useful life of the associated patent rights, which is generally the lesser of 20 years from the date of the patent application or the license period. Royalties payable under licenses for patents owned by others are generally expensed as incurred. The Company reviews its capitalized patent portfolio and recognizes impairment charges when circumstances warrant, such as when patents have been abandoned or are no longer being pursued. |
Long-Lived Assets | Long-Lived AssetsThe Company reviews long-lived assets such as property and equipment for impairment based on changes in circumstances that indicate their carrying amounts may not be recoverable. In making these determinations, the Company uses certain assumptions, including but not limited to: (1) estimations of the fair market value of the assets and (2) estimations of future cash flows expected to be generated by these assets, which are based on additional assumptions such as asset utilization, length of service the asset will be used in the Company’s operations and estimated salvage values. |
Contingent Liabilities | Contingent Liabilities The Company recognizes contingent liabilities when it is probable that an asset has been impaired or a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Disclosure in the notes to the financial statements is required for loss contingencies that do not meet both these conditions if there is a reasonable possibility that a loss may have been incurred. See Note 15, “Commitments and Contingencies,” for a discussion of loss contingencies in connection with pending and threatened litigation. The Company expenses as incurred the costs of defending legal claims against the Company. |
Revenue Recognition | Revenue Recognition Revenue is recognized when control of a good or service promised in a contract (i.e., performance obligation) is transferred to a customer. Control is obtained when a customer has the ability to direct the use of and obtain substantially all of the remaining benefits from that good or service. Substantially all of the Company's revenue is derived from product sales. Revenue is recognized at a point in time based on the Company’s evaluation of when the customer obtains control of the products, and all performance obligations under the terms of the contract are satisfied. If customer acceptance clauses are present and it cannot be objectively determined that control has been transferred based on the contract and shipping terms, revenue is only recorded when customer acceptance is received and all performance obligations have been satisfied. Sales of products typically do not include more than one performance obligation. A portion of the Company’s products are sold through distributors. Distributors stock inventory and sell the Company’s products to their own customer base, which may include: value added resellers; manufacturers who incorporate the Company’s products into their own manufactured goods; or ultimate end users of the Company’s products. The Company recognizes revenue upon shipment of its products to its distributors. This arrangement is often referred to as a “sell-in” or “point-of-purchase” model as opposed to a “sell-through” or “point-of-sale” model, where revenue is deferred and not recognized until the distributor sells the product through to their customer. Master supply or distributor agreements are in place with many of the Company's customers and contain terms and conditions including, but not limited to payment, delivery, incentives and warranty. These agreements typically do not require minimum purchase commitments. If a master supply, distributor or other similar agreement is not in place with a customer, the Company considers a purchase order, which is governed by the Company’s standard terms and conditions, to be the contract governing the relationship with that customer. Pricing terms are negotiated independently on a stand-alone basis. Revenue is measured based on the amount of net consideration to which the Company expects to be entitled to receive in exchange for products or services. Variable consideration is recognized as a reduction of net revenue with a corresponding reserve at the time of revenue recognition, and consists primarily of sales incentives, price concessions and return allowances. Variable consideration is estimated based on contractual terms, historical analysis of customer purchase volumes, or historical analysis using specific data for the type of consideration being assessed. Some of the Company’s distributors are provided limited rights that allow them to return a portion of inventory (product exchange rights or stock rotation rights) and receive credits for changes in selling prices (price protection rights) or customer pricing arrangements under the Company’s “ship and debit” program or other targeted sales incentives. These estimates are calculated based upon historical experience, product shipment analysis, current economic conditions, on-hand inventory at the distributor, and customer contractual arrangements. The Company believes that it can reasonably and reliably estimate the allowance for distributor credits at the time of sale. Accordingly, estimates for these rights are recognized at the time of sale as a reduction of product revenue and as a contract liability. From time to time, the Company will issue a new price book for its products, and provide a credit to certain distributors for inventory quantities on hand if required by the Company’s agreement with the distributor. This practice is known as price protection. These credits are applied against the reserve that the Company establishes upon initial shipment of product to the distributor. Under the ship and debit program, products are sold to distributors at negotiated prices and the distributors are required to pay for the products purchased within the Company’s standard commercial terms. Subsequent to the initial product purchase, a distributor may request a price allowance for a particular part number(s) for certain target customers, prior to the distributor reselling the particular part to that customer. If the Company approves an allowance and the distributor resells the product to the target customer, the Company credits the distributor according to the allowance the Company approved. These credits are applied against the reserve that the Company establishes upon initial shipment of product to the distributor. The Company also has inventory consignment agreements in which revenue is recognized at a point in time, when the customer or distributor pulls product from consignment inventory that the Company stores at designated locations. Delivery and transfer of control occur at that point, when title and risk of loss transfers and the customer or distributor becomes obligated to pay for the products pulled from inventory. Until the products are pulled for use or sale by the customer or distributor, the Company retains control over the products’ disposition, including the right to pull back or relocate the products. From time to time, the Company may enter into licensing arrangements related to its intellectual property. Revenue from licensing arrangements is recognized when earned and estimable. The timing of revenue recognition is dependent on the terms of each license agreement. Generally, the Company will recognize non-refundable upfront licensing fees related to patent licenses immediately upon receipt of the funds if the Company has no significant future obligations to perform under the arrangement. However, the Company will defer recognition for licensing fees where the Company has significant future performance requirements, the fee is not fixed (such as royalties earned as a percentage of future revenue), or the fees are otherwise contingent. The Company adopted FASB ASC 606 "Revenue from Contracts with Customers" (Topic 606) (ASC 606) on June 25, 2018 using the modified retrospective approach. |
Leases | Leases At lease inception, the Company determines an arrangement is a lease if the contract involves the use of a distinct identified asset, the lessor does not have substantive substitution rights and the lessee obtains control of the asset throughout the period by obtaining substantially all of the economic benefit of the asset and the right to direct the use of the asset. Depending on the terms, leases are classified as either operating or finance leases, if the Company is the lessee, or as operating, sales-type or direct financing leases, if the Company is the lessor. The Company does not have any sales-type or direct financing leases. Lease agreements frequently include other services such as maintenance, electricity, security, janitorial and reception services. The Company accounts for the lease and non-lease components in its arrangements as a single lease component. The Company adopted FASB ASC 842 "Leases" (ASC 842) on July 1, 2019 under the modified retrospective transition approach with the cumulative effect of application recognized at the effective date, without adjustment to prior comparative periods. The Company did not have a cumulative-effect adjustment to retained earnings as a result of the adoption of the new standard. Accounting for Leases as a Lessee Right-of-use assets represent the Company's right to use an underlying asset during the lease term and lease liabilities represent the Company's obligation to make lease payments arising from the lease. Assets and liabilities are recognized based on the present value of lease payments over the lease term. Most leases include one or more options to renew, with renewal terms that can extend the lease term from one Because most of the Company's leases do not provide an implicit rate, the Company uses its incremental borrowing rate based on the information available at the lease commencement date in determining the present value of lease payments. The Company would use the implicit rate when readily determinable. Operating lease expense is generally recognized on a straight-line basis over the lease term. Finance lease assets are generally amortized over the term of the lease. If the finance lease transfers ownership of the underlying asset to the Company or the Company is reasonably certain it will exercise an option to purchase the underlying asset, the finance lease assets are amortized on a straight-line basis over the useful life of the asset. Interest expense on the finance lease liability is recognized using the effective interest rate method and is presented within interest expense on the Company’s consolidated statements of operations. Operating leases with a lease term of 12 months or less are not recorded on the balance sheet. The Company recognizes lease expense for these leases on a straight-line basis over the lease term. Variable lease payment amounts that cannot be determined at the commencement of the lease, such as increases in lease payments based on changes in index rates, are not included in the right-of-use assets or liabilities. These variable lease payments are expensed as incurred. |
Leases | Accounting for Leases as a Lessor In accordance with FASB ASC 842, "Leases", lease income is recognized on a straight-line basis over the lease term. Variable lease payments, if any, are recognized as income in the period received. The underlying asset in an operating lease is carried at depreciated cost and is included in property and equipment. |
Advertising | AdvertisingThe Company expenses the costs of producing advertisements at the time production occurs and expenses the cost of communicating the advertising in the period in which the advertising is used. |
Research and Development | Research and Development Research and development expenses consist primarily of employee salaries and related compensation costs, occupancy costs, consulting costs and the cost of development equipment and supplies. Research and development activities are expensed when incurred. |
Loss Per Share | Loss Per Share Basic loss per share is computed by dividing net loss attributable to controlling interest by the weighted average number of shares of common stock outstanding for the applicable period. Diluted loss per share is determined in the same manner as basic loss per share except that the number of shares is increased to assume exercise of potentially dilutive stock options, nonvested restricted stock and contingently issuable shares using the treasury stock method, unless the effect of such increases would be anti-dilutive. Under the treasury stock method, the amount the employee must pay for exercising stock options, the amount of compensation cost for future service that the Company has not yet recognized, and the amount of tax benefits that would be recognized in additional paid-in capital when the award becomes deductible are assumed to be used to repurchase shares. |
Stock-Based Compensation | Stock-Based Compensation The Company recognizes compensation expense for all share-based payments granted based on the fair value of the shares on the date of grant. Compensation expense is then recognized over the award’s vesting period. |
Fair Value of Financial Instruments | Fair Value of Financial Instruments Cash and cash equivalents, short-term investments, accounts and interest receivable, accounts payable and other liabilities approximate their fair values at June 27, 2021 and June 28, 2020 due to the short-term nature of these instruments. |
Taxes | Taxes Deferred tax assets and liabilities are recognized for the estimated future tax consequences attributable to differences between the carrying amounts of existing assets and liabilities and their respective tax bases. Deferred tax assets are recognized for deductible temporary differences, along with net operating loss carryforwards and credit carryforwards, if it is more likely than not that the tax benefits will be realized. To the extent a deferred tax asset cannot be recognized under the preceding criteria, valuation allowances are established. Deferred tax assets and liabilities are measured using enacted tax rates in effect for the year in which those temporary differences are expected to be recovered or settled. Taxes payable which are not based on income are accrued ratably over the period to which they apply. For example, payroll taxes are accrued each period end based upon the amount of payroll taxes that are owed as of that date; whereas taxes such as property taxes and franchise taxes are accrued over the fiscal year to which they apply if paid at the end of a period, or they are amortized ratably over the fiscal year if they are paid in advance. |
Foreign Currency Translation | Foreign Currency Translation Foreign currency translation adjustments are recognized in other comprehensive loss in the consolidated statements of comprehensive loss for changes between the foreign subsidiaries’ functional currency and the United States (U.S.) dollar. Foreign currency translation gains and losses are included in the Company’s equity account balance of accumulated other comprehensive income, net of taxes in the consolidated balance sheets until such time that the subsidiaries are either sold or substantially liquidated. Due to the sale of the Lighting Products business unit in fiscal 2019 and the sale of the LED Products segment in fiscal 2021, the Company no longer has operations with a functional currency other than the U.S. Dollar. The Company and its subsidiaries transact business in currencies other than the U.S. Dollar and as such, the Company will continue to experience varying amounts of foreign currency exchange gains and losses. |
Recently Adopted and Issued Accounting Pronouncements | Recently Adopted Accounting Pronouncements Credit Losses In June 2016, the FASB issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. This standard replaces the incurred loss impairment methodology in current U.S. GAAP with a methodology that reflects expected credit losses. The Company adopted this standard using the modified retrospective transition method on June 29, 2020, the first day of its 2021 fiscal year. Upon adoption, prior period balances were not adjusted and the Company determined no cumulative-effect adjustment to retained earnings as of June 29, 2020 was required. Under this new standard, expected credit losses for the Company's receivables are evaluated on a collective (pool) basis and aggregated on the basis of similar risk characteristics. These aggregated risk pools are reassessed at each measurement date. A combination of factors is considered in determining the appropriate estimate of expected credit losses, including broad-based economic indicators as well as customers' financial strength, credit standing, payment history and any historical defaults. Available-for-sale debt securities in an unrealized loss position at each measurement date are individually evaluated for expected credit losses. The Company evaluates whether the unrealized loss is due to market factors or changes in the investment holdings' credit rating. An expected credit loss will be recorded when an investment in an unrealized loss position is determined to have lost value from a decreased credit rating and the Company does not expect to recover the fair value of the security. Recently Issued Accounting Pronouncements Pending Adoption Convertible Debt Instruments In August 2020, the FASB issued ASU 2020-06, Debt – Debt with Conversion and Other Options (Subtopic 470-20) and Derivatives and Hedging – Contracts in Entity’s Own Equity (Subtopic 815-40). This standard simplifies the accounting for convertible instruments by eliminating the cash conversion and the beneficial conversion accounting models. This update also amends the guidance for the derivatives scope exception for contracts in an entity’s own equity. The update requires an entity to use the if-converted method for all convertible instruments in the diluted earnings per share calculation. An entity may use either a modified or full retrospective approach for adoption. The Company expects to adopt this standard by June 27, 2022 and is currently evaluating the impact on its consolidated financial statements. |
Basis of Presentation and Sum_3
Basis of Presentation and Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Accounting Policies [Abstract] | |
Property, Plant and Equipment | In general, the Company’s policy for useful lives is as follows: Furniture and fixtures 5 years Buildings and building improvements 5 to 40 years Machinery and equipment 3 to 15 years Vehicles 5 years Computer hardware/software 3 years Leasehold improvements Shorter of estimated useful life or lease term Property and equipment, net consisted of the following: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Machinery and equipment $988.6 $859.9 Land and buildings 383.9 363.1 Computer hardware/software 51.5 46.8 Furniture and fixtures 8.0 8.1 Leasehold improvements and other 9.6 9.7 Vehicles 0.7 0.6 Finance lease assets 15.5 15.4 Construction in progress 767.8 366.8 Property and equipment, gross 2,225.6 1,670.4 Accumulated depreciation (933.3) (899.6) Property and equipment, net $1,292.3 $770.8 |
Discontinued Operations (Tables
Discontinued Operations (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Discontinued Operations and Disposal Groups [Abstract] | |
Schedule of Discontinued Operations | The Company has classified the results of the Lighting Products business unit as discontinued operations, the results of which for the fiscal year ended June 30, 2019 are as follows: (in millions of U.S. Dollars) June 30, 2019 Revenue, net $419.8 Cost of revenue, net 324.3 Gross profit 95.5 Research and development 37.1 Sales, general and administrative 100.6 Amortization or impairment of acquisition-related intangibles 116.4 Goodwill impairment charges 90.3 Loss on disposal or impairment of long-lived assets 2.0 Loss before income taxes and loss on sale (250.9) Loss on sale 66.2 Loss before income taxes (317.1) Income tax expense 0.1 Net loss ($317.2) The following table presents the financial results of the LED Business as (loss) income from discontinued operations, net of income taxes in the Company's consolidated statements of operations: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Revenue, net $272.8 $433.2 $541.8 Cost of revenue, net 213.3 343.4 394.5 Gross profit 59.5 89.8 147.3 Operating expenses: Research and development 22.3 32.2 36.8 Sales, general and administrative 29.4 29.7 31.8 Goodwill impairment 112.6 — — Impairment on assets held for sale 19.5 — — Gain on disposal or impairment of long-lived assets (1.6) (0.1) (0.3) Other operating expense 18.7 13.3 1.4 Operating (loss) income (141.4) 14.7 77.6 Non-operating income (0.3) (0.5) (0.1) (Loss) income before income taxes and loss on sale (141.1) 15.2 77.7 Loss on sale 29.1 — — (Loss) income before income taxes (170.2) 15.2 77.7 Income tax expense 11.0 8.2 17.1 Net (loss) income (181.2) 7.0 60.6 Net income attributable to noncontrolling interest 1.4 1.1 — Net (loss) income attributable to controlling interest ($182.6) $5.9 $60.6 The following table presents the assets and liabilities of the LED Business classified as discontinued operations as of June 28, 2020: (in millions of U.S. Dollars) June 28, 2020 Assets Short-term investments $12.0 Accounts receivable, net 41.6 Inventories 57.2 Prepaid expenses 0.1 Other current assets 5.1 Current assets of discontinued operations 116.0 Property and equipment, net 60.3 Goodwill 180.3 Intangible assets, net 22.7 Deferred tax assets 5.1 Other assets 1.7 Long-term assets of discontinued operations 270.1 Liabilities Accounts payable and accrued expenses 31.0 Accrued contract liabilities 24.1 Income taxes payable 2.0 Other current liabilities 3.1 Current liabilities of discontinued operations 60.2 Other long-term liabilities 9.8 Long-term liabilities of discontinued operations 9.8 |
Revenue Recognition (Tables)
Revenue Recognition (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | Disaggregated revenue from external customers by geographic area is as follows: For the Years Ended June 27, 2021 June 28, 2020 June 30, 2019 (in millions of U.S. Dollars) Revenue % of Revenue Revenue % of Revenue Revenue % of Revenue Europe $ 188.9 36 % $ 171.4 36 % $ 162.9 30 % United States 117.3 22 % 106.5 23 % 122.0 23 % China 100.1 19 % 65.0 14 % 116.3 22 % Japan 42.5 8 % 52.1 11 % 68.7 13 % South Korea 32.1 6 % 47.7 10 % 32.5 6 % Other 44.7 9 % 28.0 6 % 35.8 6 % Total $ 525.6 $ 470.7 $ 538.2 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Leases [Abstract] | |
Schedule of Lease Assets and Liabilities | Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars): Operating Leases: June 27, 2021 June 28, 2020 Right-of-use asset (1) $12.1 $12.3 Current lease liability (2) 4.5 4.8 Non-current lease liability (3) 7.5 7.5 Total operating lease liabilities 12.0 12.3 Finance Leases: Finance lease assets (4) $15.5 $15.4 Current portion of finance lease liabilities 5.2 3.6 Finance lease liabilities, less current portion 10.0 11.4 Total finance lease liabilities 15.2 15.0 (1) Within other assets (2) Within other current liabilities (3) Within other long-term liabilities (4) Within property and equipment, net |
Schedule of Cash Flow Information | Cash flow information consisted of the following: Fiscal years ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Cash used in operating activities: Cash paid for operating leases $5.7 $5.5 Cash paid for interest portion of financing leases 0.3 0.1 Cash used in financing activities: Cash paid for principal portion of finance leases 0.4 0.8 Non-cash operating activities: Operating lease additions due to adoption of ASC 842 — 11.0 Operating lease additions and modifications, net 4.8 6.4 Finance lease additions 4.8 15.7 Transfer of finance lease liability to accounts payable and accrued expenses (1) 4.2 — (1) In the first quarter of fiscal 2021, the Company executed the available bargain purchase option for certain finance leases relating to property and equipment, net, in order to purchase the assets. |
Schedule of Maturities of Operating Lease Liabilities | Maturities of operating and finance lease liabilities as of June 27, 2021 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 26, 2022 $4.7 $5.5 $10.2 June 25, 2023 3.6 0.7 4.3 June 30, 2024 2.2 0.7 2.9 June 29, 2025 1.2 0.7 1.9 June 28, 2026 0.7 0.7 1.4 Thereafter 0.2 14.6 14.8 Total lease payments 12.6 22.9 35.5 Imputed lease interest (0.6) (7.7) (8.3) Total lease liabilities $12.0 $15.2 $27.2 |
Schedule of Maturities of Finance Lease Liabilities | Maturities of operating and finance lease liabilities as of June 27, 2021 were as follows (in millions of U.S. Dollars): Fiscal Year Ending Operating Leases Finance Leases Total June 26, 2022 $4.7 $5.5 $10.2 June 25, 2023 3.6 0.7 4.3 June 30, 2024 2.2 0.7 2.9 June 29, 2025 1.2 0.7 1.9 June 28, 2026 0.7 0.7 1.4 Thereafter 0.2 14.6 14.8 Total lease payments 12.6 22.9 35.5 Imputed lease interest (0.6) (7.7) (8.3) Total lease liabilities $12.0 $15.2 $27.2 |
Schedule of Weighted Average Remaining Lease Term and Discount Rates of Leases | Supplemental Disclosures Operating Leases Finance Leases Weighted average remaining lease term (in months) (1) 35 469 Weighted average discount rate (2) 2.85 % 2.48 % (1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 65 months. (2) Weighted average discount rate of finance leases without the 49-year ground lease is 1.24%. |
Schedule of Future Minimum Rental Payments on Operating Leases | Future minimum rental income relating to the LED RELA is as follows (in millions of U.S. Dollars): June 26, 2022 3.6 June 25, 2023 2.4 Total future minimum rental income 6.0 |
Financial Statement Details (Ta
Financial Statement Details (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Accounts Receivable, Net | Accounts receivable, net consisted of the following: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Billed trade receivables $95.6 $71.5 Unbilled contract receivables 0.6 1.2 Royalties 0.5 0.4 96.7 73.1 Allowance for bad debts (0.8) (0.7) Accounts receivable, net $95.9 $72.4 Changes in the Company’s allowance for bad debts were as follows: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Balance at beginning of period $0.7 $0.2 $0.2 Current period provision change 0.1 0.6 — Write-offs, net of recoveries — (0.1) — Balance at end of period $0.8 $0.7 $0.2 |
Schedule of Inventories | Inventories consisted of the following: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Raw material $43.3 $36.9 Work-in-progress 109.5 73.9 Finished goods 13.8 11.1 Inventories $166.6 $121.9 June 27, 2021 June 28, 2020 Wolfspeed $159.2 $97.3 Wafer Supply Agreement inventory (1) — 19.0 Unallocated inventories 7.4 5.6 Consolidated inventories $166.6 $121.9 (1) Inventory related to the Wafer Supply Agreement as of June 27, 2021 is recorded within other current assets in the consolidated balance sheets. |
Long-lived Assets by Geographic Areas | The Company’s tangible long-lived assets by country are as follows: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 United States $1,258.1 $758.2 China 2.3 2.6 Other 31.9 10.0 Total $1,292.3 $770.8 |
Schedule of Accounts Payable and Accrued Expenses | Accounts payable and accrued expenses consisted of the following: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Accounts payable, trade $44.2 $88.1 Accrued salaries and wages 69.5 42.3 Accrued expenses 265.7 55.3 Other 1.7 4.1 Accounts payable and accrued expenses $381.1 $189.8 |
Schedule of Accumulated Other Comprehensive Income, Net of Taxes | Accumulated other comprehensive income, net of taxes consisted of the following: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Currency translation gain $— $9.5 Net unrealized gain on available-for-sale securities (1) 2.7 6.5 Accumulated other comprehensive income, net of taxes $2.7 $16.0 (1) Amounts as of June 27, 2021 and June 28, 2020 include a $2.4 million loss related to tax on the net unrealized gain on available-for-sale securities. |
Schedule of Other Operating Expense (Income) | The following table summarizes the components of other operating expense: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Factory optimization restructuring $7.6 $8.5 $4.1 Severance and other restructuring 3.4 0.6 2.8 Total restructuring costs 11.0 9.1 6.9 Project, transformation and transaction costs 7.3 12.2 16.9 Factory optimization start-up costs 8.0 9.5 1.5 Non-restructuring related executive severance 2.8 2.1 1.3 Other operating expense $29.1 $32.9 $26.6 |
Schedule of Non-Operating Expense (Income), Net | The following table summarizes the components of non-operating expense (income), net: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 (Gain) loss on sale of investments, net ($0.4) ($1.5) $0.1 (Gain) loss on equity investment (8.3) (14.2) 16.2 Gain on partial debt extinguishment — (11.0) — Gain on arbitration proceedings — (7.9) — Interest income (10.1) (16.3) (13.9) Interest expense 45.4 34.9 26.0 Foreign currency (gain) loss, net (1.3) (2.0) 1.3 Loss on Wafer Supply Agreement 0.8 — — Other, net 0.2 (0.5) (0.3) Non-operating expense (income), net $26.3 ($18.5) $29.4 |
Schedule of Non-cash Operating Activities | Statements of Cash Flows - non-cash activities Fiscal Years Ended June 27, 2021 June 28, 2020 June 30, 2019 Lease asset and liability additions (1) $7.9 $28.3 $— Lease asset and liability modifications, net 1.7 4.8 — Transfer of finance lease liability to accounts payable and accrued expenses (2) 4.2 — — Receivables for property, plant and equipment related insurance proceeds 1.9 — — Decrease in property, plant and equipment from long-term incentive related receivables 16.4 — — (1) $11.0 million of the lease asset and liability additions for the year ended June 28, 2020 related to the increase of right-of-use assets and matching lease liabilities as a result of adopting ASC 842. See Note 5, "Leases", for further information. (2) In the first quarter of fiscal 2021, the Company executed the available bargain purchase option for certain finance leases relating to property and equipment, net, in order to purchase the assets. |
Investments (Tables)
Investments (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Investments, Debt and Equity Securities [Abstract] | |
Schedule of Short-term Investments by Type | Short-term investments as of June 27, 2021 consist of the following: June 27, 2021 (in millions of U.S. Dollars) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Estimated Fair Value Municipal bonds $139.4 $1.9 $— $141.3 Corporate bonds 456.5 3.3 (0.3) 459.5 U.S. agency securities 15.8 — — 15.8 U.S. treasury securities 72.3 0.3 (0.1) 72.5 Certificates of deposit 16.5 — — 16.5 Commercial paper 50.0 — — 50.0 Variable rate demand note 20.0 — — 20.0 Total short-term investments $770.5 $5.5 ($0.4) $775.6 Short-term investments as of June 28, 2020 consist of the following: June 28, 2020 (in millions of U.S. Dollars) Amortized Cost Gross Unrealized Gains Gross Unrealized Losses (1) Estimated Fair Value Municipal bonds 130.0 2.0 — 132.0 Corporate bonds 473.8 6.3 — 480.1 U.S. agency securities 29.1 — — 29.1 U.S. treasury securities 52.3 0.6 — 52.9 Certificates of deposit 83.3 — — 83.3 Commercial paper 11.0 — — 11.0 Variable rate demand note 2.5 — — 2.5 Total short-term investments 782.0 8.9 — 790.9 (1) The Company had an unrealized loss of less than $0.1 million as of June 28, 2020. |
Schedule of Gross Unrealized Losses and Fair Value of Short-term Investments by Type and Length of Time | The following table presents 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: June 27, 2021 Less than 12 Months Greater than 12 Months Total (in millions of U.S. Dollars) Fair Value Unrealized Loss Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $28.8 $— $— $— $28.8 $— Corporate bonds 133.8 (0.3) — — 133.8 (0.3) U.S. agency securities 16.7 — — — 16.7 — U.S. treasury securities 47.9 (0.1) — — 47.9 (0.1) Certificates of deposit 0.7 — — — 0.7 — Total $227.9 ($0.4) $— $— $227.9 ($0.4) Number of securities with an unrealized loss 134 — 134 The following table presents 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: June 28, 2020 Less than 12 Months Greater than 12 Months Total (in millions of U.S. Dollars) Fair Value Unrealized Loss (1) Fair Value Unrealized Loss Fair Value Unrealized Loss Municipal bonds $14.3 $— $— $— $14.3 $— Corporate bonds 29.1 — — — 29.1 — U.S. agency securities 8.6 — — — 8.6 — U.S. treasury securities 13.8 — — — 13.8 — Total $65.8 $— $— $— $65.8 $— Number of securities with an unrealized loss 46 — 46 (1) Securities with an unrealized loss of less than 12 months as of June 28, 2020 had an unrealized loss value of less than $0.1 million, individually and in the aggregate. |
Schedule of Contractual Maturities of Short-term Investments by Type | The contractual maturities of short-term investments at June 27, 2021 were as follows: (in millions of U.S. Dollars) Within One Year After One, Within Five Years After Five, Within Ten Years After Ten Years Total Municipal bonds $24.7 $116.6 $— $— $141.3 Corporate bonds 80.3 379.2 — — 459.5 U.S. agency securities 3.5 12.3 — — 15.8 U.S. treasury securities 24.7 47.8 — — 72.5 Certificates of deposit 16.5 — — — 16.5 Commercial paper 50.0 — — — 50.0 Variable rate demand note — — — 20.0 20.0 Total short-term investments $199.7 $555.9 $— $20.0 $775.6 |
Fair Value of Financial Instr_2
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Instruments Carried at Fair Value | Financial instruments carried at fair value were as follows: June 27, 2021 June 28, 2020 Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total Assets: Cash equivalents: Money market funds $ 96.9 $ — $ — $ 96.9 $ 199.9 $ — $ — $ 199.9 Municipal bonds — 16.0 — 16.0 — — — — U.S. agency securities — 6.0 — 6.0 — 19.6 — 19.6 U.S. treasury securities — — — — 19.0 — — 19.0 Certificates of deposit — — — — — 54.3 — 54.3 Commercial paper — 62.4 — 62.4 — 11.1 — 11.1 Variable rate demand note — 22.9 — 22.9 — — — — Total cash equivalents 96.9 107.3 — 204.2 218.9 85.0 — 303.9 Short-term investments: Municipal bonds — 141.3 — 141.3 — 132.0 — 132.0 Corporate bonds — 459.5 — 459.5 — 480.1 — 480.1 U.S. agency securities — 15.8 — 15.8 — 29.1 — 29.1 U.S. treasury securities 72.5 — — 72.5 52.9 — — 52.9 Certificates of deposit — 16.5 — 16.5 — 83.3 — 83.3 Commercial paper — 50.0 — 50.0 — 11.0 — 11.0 Variable rate demand note — 20.0 — 20.0 — 2.5 — 2.5 Total short-term investments 72.5 703.1 — 775.6 52.9 738.0 — 790.9 Other long-term investments: Common stock of non-U.S. corporations — — — — — 55.9 — 55.9 Total assets $169.4 $810.4 $— $979.8 $271.8 $878.9 $— $1,150.7 |
Goodwill and Intangible Assets
Goodwill and Intangible Assets (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The following table summarizes changes in goodwill during the fiscal year ended June 27, 2021: (in millions of U.S. Dollars) Balance at June 28, 2020 $349.7 Transfer in connection with LED Business Divestiture (1) 9.5 Balance at June 27, 2021 $359.2 (1) In the second quarter of fiscal 2021, the Company determined that as part of its goodwill impairment analysis on held for sale assets related to the LED Business Divestiture, it was necessary to transfer a portion of goodwill from the former LED Products segment, then classified as discontinued operations, to goodwill associated with continuing operations. |
Schedule of Components of Intangible Assets | Intangible assets, net included the following: June 27, 2021 June 28, 2020 (in millions of U.S. Dollars) Gross Accumulated Amortization Net Gross Accumulated Amortization Net Intangible assets: Customer relationships $96.8 ($25.1) $71.7 $96.8 ($19.0) $77.8 Developed technology 68.0 (28.2) 39.8 68.0 (22.8) 45.2 Non-compete agreements 12.2 (10.1) 2.1 12.2 (7.1) 5.1 Acquisition related intangible assets 177.0 (63.4) 113.6 177.0 (48.9) 128.1 Patent and licensing rights 67.1 (40.2) 26.9 69.3 (40.5) 28.8 Total intangible assets 244.1 (103.6) 140.5 246.3 (89.4) 156.9 |
Schedule of Future Amortization Expense of Finite-lived Intangible Assets | Total future amortization expense of intangible assets is estimated to be as follows: (in millions of U.S. Dollars) Fiscal Year Ending Acquisition Related Intangibles Patents Total June 26, 2022 $13.5 $4.9 $18.4 June 25, 2023 11.0 4.0 15.0 June 30, 2024 10.4 3.4 13.8 June 29, 2025 10.4 2.6 13.0 June 28, 2026 9.3 1.9 11.2 Thereafter 59.0 10.1 69.1 Total future amortization expense $113.6 $26.9 $140.5 |
Long-term Debt (Tables)
Long-term Debt (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Debt Disclosure [Abstract] | |
Schedule of Liability and Equity Components of Long-term Debt | The net carrying amount of the liability component of the Notes is as follows: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Principal $999.8 $999.8 Unamortized discount and issuance costs (175.9) (216.0) Net carrying amount $823.9 $783.8 The net carrying amount of the equity component of the Notes is as follows: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Discount related to value of conversion option $262.3 $262.3 Partial extinguishment of 2023 Notes (27.7) (27.7) Debt issuance costs (6.3) (6.3) Net carrying amount $228.3 $228.3 |
Schedule of Interest Expense | The interest expense, net recognized related to the Notes is as follows: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Interest expense, net of capitalized interest $10.4 $6.8 4.3 Amortization of discount and issuance costs, net of capitalized interest 32.8 26.2 18.3 Total interest expense, net $43.2 $33.0 22.6 |
Shareholders' Equity (Tables)
Shareholders' Equity (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Equity [Abstract] | |
Schedule of Shares Reserved for Future Issuance | At June 27, 2021, the Company had reserved a total of approximately 42.2 million shares of its common stock for future issuance as follows (in thousands): Number of Shares For exercise of outstanding common stock options 142 For vesting of outstanding stock units 2,168 For future equity awards under 2013 Long-Term Incentive Compensation Plan 5,329 For future issuance under the Non-Employee Director Stock Compensation and Deferral Program 45 For future issuance to employees under the 2020 Employee Stock Purchase Plan 5,839 For future issuance upon conversion of the 2023 Notes 12,560 For future issuance upon conversion of the 2026 Notes 16,102 Total common shares reserved 42,185 |
Loss Per Share (Tables)
Loss Per Share (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Earnings Per Share [Abstract] | |
Schedule of Basic Earnings Per Share Computation | The details of the computation of basic and diluted loss per share are as follows: Fiscal Years Ended (in millions of U.S. Dollars, except share data) June 27, 2021 June 28, 2020 June 30, 2019 Net loss from continuing operations $ (341.3) $ (197.6) $ (118.5) Net (loss) income from discontinued operations (181.2) 7.0 (256.6) Net income from discontinued operations attributable to noncontrolling interest 1.4 1.1 — Net (loss) income from discontinued operations attributable to controlling interest (182.6) 5.9 (256.6) Weighted average number of common shares - basic and diluted (in thousands) 112,346 107,935 103,576 (Loss) earnings per share - basic and diluted: Continuing operations $ (3.04) $ (1.83) $ (1.14) Discontinued operations attributable to controlling interest $ (1.63) $ 0.05 $ (2.48) |
Schedule of Diluted Earnings Per Share Computation | The details of the computation of basic and diluted loss per share are as follows: Fiscal Years Ended (in millions of U.S. Dollars, except share data) June 27, 2021 June 28, 2020 June 30, 2019 Net loss from continuing operations $ (341.3) $ (197.6) $ (118.5) Net (loss) income from discontinued operations (181.2) 7.0 (256.6) Net income from discontinued operations attributable to noncontrolling interest 1.4 1.1 — Net (loss) income from discontinued operations attributable to controlling interest (182.6) 5.9 (256.6) Weighted average number of common shares - basic and diluted (in thousands) 112,346 107,935 103,576 (Loss) earnings per share - basic and diluted: Continuing operations $ (3.04) $ (1.83) $ (1.14) Discontinued operations attributable to controlling interest $ (1.63) $ 0.05 $ (2.48) |
Stock-Based Compensation (Table
Stock-Based Compensation (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Share-based Payment Arrangement [Abstract] | |
Schedule of Option Activity | The following table summarizes option activity as of June 27, 2021 and changes during the fiscal year then ended (shares in thousands): Number of Shares Weighted Average Exercise Price Weighted Average Remaining Contractual Term Total Intrinsic Value (in millions of U.S. Dollars) Outstanding at June 28, 2020 983 $37.88 Granted — — Exercised (830) 39.34 Forfeited or expired (11) 64.51 Outstanding at June 27, 2021 142 27.37 1.62 $10.1 Vested and expected to vest at June 27, 2021 142 27.37 1.62 $10.1 Exercisable at June 27, 2021 142 27.37 1.62 $10.1 |
Schedule of Stock Options Outstanding and Exercisable | The following table summarizes information about stock options outstanding and exercisable at June 27, 2021 (shares in thousands): Options Outstanding Options Exercisable Range of Exercise Price Number Weighted Average Remaining Contractual Life (Years) Weighted Average Exercise Price Number Weighted Average Exercise Price $0.01 to $25.00 66 2.1 $24.34 66 $24.34 $25.01 to $35.00 62 1.4 26.92 62 26.92 $35.01 to $45.00 1 0.8 35.17 1 35.17 $45.01 to $55.00 13 0.2 45.13 13 45.13 Total 142 142 |
Schedule of Nonvested Restricted Stock Awards and Restricted Stock Unit Awards Outstanding | A summary of nonvested restricted stock units (RSUs) outstanding as of June 27, 2021 and changes during the year then ended is as follows (shares in thousands): Number of RSUs Weighted Average Grant-Date Fair Value Nonvested at June 28, 2020 2,932 $43.89 Granted 1,059 67.00 Vested (1,459) 38.12 Forfeited (364) 53.14 Nonvested at June 27, 2021 2,168 $57.38 |
Schedule of Total Stock-Based Compensation Expense | Total stock-based compensation expense was classified in the consolidated statements of operations as follows: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Cost of revenue, net $14.4 $10.0 $7.8 Research and development 8.7 8.0 6.2 Sales, general and administrative 30.1 30.8 28.9 Total stock-based compensation expense $53.2 $48.8 $42.9 |
Schedule of Weighted Average Assumptions Utilized to Value Stock-Based Compensation | The range of assumptions used to value stock issued under the ESPP were as follows: Fiscal Years Ended June 27, 2021 June 28, 2020 June 30, 2019 Risk-free interest rate 0.03 - 0.17% 0.12 - 2.67% 2.39 - 2.67% Expected life, in years 0.5 - 1.0 0.5 - 1.0 0.5 - 1.0 Volatility 52.4 - 82.6% 34.5 - 82.6% 34.5 - 39.6% Dividend yield — — — The range of assumptions used for issued performance units valued using the Monte Carlo model were as follows: Fiscal Years Ended June 27, 2021 June 28, 2020 June 30, 2019 Risk-free interest rate 0.11 - 1.66% 0.28 - 1.66% 2.68% Expected life, in years 3.0 3.0 3.0 Average volatility of peer companies 48.9 - 60.5% 48.9 - 55.2% 46.8% Average correlation coefficient of peer companies 0.36 - 0.51 0.36 - 0.45 0.34 Dividend yield — — — |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Income Tax Disclosure [Abstract] | |
Schedule of Components of Income Before Income Taxes | The following were the components of loss before income taxes: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Domestic ($348.7) ($210.3) ($92.2) Foreign 8.5 4.7 (30.7) Loss before income taxes ($340.2) ($205.6) ($122.9) |
Schedule of Components of Income Tax Expense | The following were the components of income tax expense (benefit): Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Current: Federal $0.1 ($7.3) $1.4 Foreign 0.1 0.2 0.5 State 0.2 0.1 0.3 Total current 0.4 (7.0) 2.2 Deferred: Federal 0.7 1.8 (1.9) Foreign — (2.8) (4.5) State — — (0.2) Total deferred 0.7 (1.0) (6.6) Income tax expense (benefit) $1.1 ($8.0) ($4.4) |
Schedule of Effective Income Tax Rate and Amount Reconciliation | Actual income tax expense (benefit) differed from the amount computed by applying each period's U.S. federal statutory tax rate to pre-tax earnings as a result of the following: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 % of Loss June 28, 2020 % of Loss June 30, 2019 % of Loss Federal income tax provision at statutory rate ($71.4) 21 % ($43.2) 21 % ($25.8) 21 % (Decrease) increase in income tax expense resulting from: State tax provision, net of federal benefit (1.9) 1 % (1.9) 1 % (2.0) 2 % Tax exempt interest (0.1) — % (0.5) — % (0.4) — % (Decrease) increase in tax reserve — — % (0.3) — % 0.5 — % Research and development credits (4.3) 1 % (3.3) 2 % (2.8) 2 % Foreign tax credit (0.4) — % (0.3) — % (0.4) — % Increase (decrease) in valuation allowance 75.0 (22) % 50.3 (25) % 4.3 (4) % Partial extinguishment of convertible notes — — % (6.0) 3 % — — % Stock-based compensation (2.8) 1 % 2.1 (1) % 0.7 (1) % Statutory rate differences 1.1 — % 1.2 (1) % 6.0 (5) % Foreign earnings taxed in U.S. 2.7 (1) % 0.3 — % 0.4 — % Other foreign adjustments (0.1) — % 0.3 — % (0.1) — % Net operating loss carryback — — % (7.2) 4 % — — % Provision to return adjustments (0.2) — % (1.3) 1 % 11.8 (10) % Tax on distributable foreign earnings — — % — — % — — % Impact of rate changes 2.7 (1) % 0.8 — % 2.7 (2) % Expiration of state credits 0.7 — % 0.9 — % 1.2 (1) % Other 0.1 — % 0.1 — % (0.5) — % Income tax expense (benefit) $1.1 — % ($8.0) 4 % ($4.4) 4 % |
Schedule of Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that give rise to significant portions of the deferred tax assets and deferred tax liabilities were as follows: (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 Deferred tax assets: Compensation $10.4 $4.4 Inventories 13.6 7.9 Sales return reserve and allowance for bad debts 2.3 2.6 Federal and state net operating loss carryforwards 360.6 180.1 Federal credits 42.1 30.3 State credits 1.2 1.9 48C investment tax credits 36.6 37.5 Investments 0.3 — Stock-based compensation 6.1 8.3 Deferred revenue 26.3 23.1 Lease liabilities 6.2 6.5 Other 4.5 5.0 Total gross deferred assets 510.2 307.6 Less valuation allowance (414.4) (208.5) Deferred tax assets, net 95.8 99.1 Deferred tax liabilities: Property and equipment (36.9) (27.8) Intangible assets (16.6) (19.2) Investments (1.1) (1.6) Prepaid taxes and other (0.7) (0.7) Foreign earnings recapture — (2.0) Taxes on unremitted foreign earnings (1.5) — Lease assets (6.1) (6.3) Convertible notes (34.4) (42.1) Total gross deferred liability (97.3) (99.7) Deferred tax liability, net ($1.5) ($0.6) |
Schedule of Components Giving Rise to Net Deferred Tax Assets (Liabilities) Included in Accompanying Consolidated Balance Sheet | The components giving rise to the net deferred tax assets (liabilities) have been included in the consolidated balance sheets as follows: Balance at June 27, 2021 (in millions of U.S. Dollars) Assets Liabilities U.S. federal income taxes $— ($2.5) Foreign income taxes 1.0 — Total $1.0 ($2.5) Balance at June 28, 2020 (in millions of U.S. Dollars) Assets Liabilities U.S. federal income taxes $— ($1.8) Foreign income taxes 1.2 — Total $1.2 ($1.8) |
Schedule of Reconciliation of the Change in Uncertain Tax Positions | The following is a tabular reconciliation of the Company’s change in uncertain tax positions: Fiscal Years Ended (in millions of U.S. Dollars) June 27, 2021 June 28, 2020 June 30, 2019 Balance at beginning of period $7.4 $8.2 $8.6 Decrease related to current year change in law — — — Increases related to prior year tax positions — — 0.5 Decreases related to prior year tax positions — — — Settlements with tax authorities — (0.1) — Expiration of statute of limitations for assessment of taxes — (0.7) (0.9) Balance at end of period $7.4 $7.4 $8.2 |
Quarterly Results of Operatio_2
Quarterly Results of Operations - Unaudited (Tables) | 12 Months Ended |
Jun. 27, 2021 | |
Quarterly Financial Information Disclosure [Abstract] | |
Schedule of Quarterly Results of Operations | The following is a summary of the Company’s consolidated quarterly results of operations for each of the fiscal years ended June 27, 2021 and June 28, 2020: (in millions of U.S. Dollars, except share data) September 27, December 27, March 28, June 27, Fiscal Year 2021 Revenue, net $115.5 $127.0 $137.3 $145.8 $525.6 Cost of revenue, net 80.0 85.7 93.3 102.0 361.0 Gross profit 35.5 41.3 44.0 43.8 164.6 Net loss from continuing operations (75.3) (54.3) (66.5) (145.2) (341.3) Net loss from discontinued operations (108.8) (28.4) (41.6) (2.4) (181.2) Net loss (184.1) (82.7) (108.1) (147.6) (522.5) Net income from discontinued operations attributable to noncontrolling interest 0.3 0.3 0.8 — 1.4 Net loss attributable to controlling interest (184.4) (83.0) (108.9) (147.6) (523.9) Basic and diluted loss per share: Continuing operations ($0.69) ($0.49) ($0.59) ($1.26) ($3.04) Net loss attributable to controlling interest ($1.68) ($0.75) ($0.96) ($1.28) ($4.66) (in millions of U.S. Dollars, except share data) September 29, December 29, March 29, June 28, Fiscal Year 2020 Revenue, net $127.7 $120.7 $113.9 $108.4 $470.7 Cost of revenue, net 75.2 85.1 72.6 79.3 312.2 Gross profit 52.5 35.6 41.3 29.1 158.5 Net loss from continuing operations (39.3) (57.9) (56.2) (44.2) (197.6) Net income (loss) from discontinued operations 1.5 3.9 (3.7) 5.3 7.0 Net loss (37.8) (54.0) (59.9) (38.9) (190.6) Net income from discontinued operations attributable to noncontrolling interest — 0.3 0.2 0.6 1.1 Net loss attributable to controlling interest (37.8) (54.3) (60.1) (39.5) (191.7) Basic and diluted loss per share: Continuing operations ($0.37) ($0.54) ($0.52) ($0.41) ($1.83) Net loss attributable to controlling interest ($0.35) ($0.50) ($0.56) ($0.36) ($1.78) |
Business - Narrative (Details)
Business - Narrative (Details) | Mar. 01, 2021USD ($) |
Maximum | LED Business | Discontinued Operations, Disposed of by Sale | |
Basis Of Presentation [Line Items] | |
Aggregate net proceeds from sale of business unit | $ 300,000,000 |
Basis of Presentation and Sum_4
Basis of Presentation and Summary of Significant Accounting Policies - Narrative (Details) | Jul. 17, 2017USD ($) | Jun. 27, 2021USD ($)board_membersegment | Jun. 28, 2020USD ($) | Jun. 30, 2019USD ($) |
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||
Prior period reclassification adjustment | $ 0 | |||
Number of reportable segments | segment | 1 | |||
Other-than-temporary impairment losses on investments | $ 0 | $ 0 | ||
Advertising costs | $ 5,100,000 | 3,800,000 | 3,700,000 | |
Cash paid for interest | 14,100,000 | 5,900,000 | 4,000,000 | |
Cash paid for income taxes, net of refunds received | $ 11,000,000 | $ 3,600,000 | $ 500,000 | |
Cree Venture LED | ||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||
Payments to acquire interest in joint venture | $ 5,100,000 | |||
Ownership interest by parent (as a percent) | 51.00% | |||
Number of directors | board_member | 5 | |||
Number of directors appointed by company | board_member | 3 | |||
San'an Optoelectronics Co., Ltd. | Cree Venture LED | ||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||
Proceeds from noncontrolling interests | $ 4,900,000 | |||
Ownership interest by noncontrolling owners (as a percent) | 49.00% | |||
Number of directors appointed by company | board_member | 2 | |||
Minimum | ||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||
Useful life of finite-lived intangible assets | 4 years | |||
Number of renewal options | segment | 1 | |||
Renewal term of leases (in years) | 1 year | |||
Maximum | ||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||
Useful life of finite-lived intangible assets | 15 years | |||
Renewal term of leases (in years) | 5 years | |||
Patents | Maximum | ||||
Basis of Presentation and Changes in Significant Accounting Policies [Line Items] | ||||
Useful life of finite-lived intangible assets | 20 years |
Basis of Presentation and Sum_5
Basis of Presentation and Summary of Significant Accounting Policies - Schedule of Property and Equipment (Details) | 12 Months Ended |
Jun. 27, 2021 | |
Furniture and fixtures | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment | 5 years |
Buildings and building improvements | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment | 40 years |
Buildings and building improvements | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment | 5 years |
Machinery and equipment | Maximum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment | 15 years |
Machinery and equipment | Minimum | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment | 3 years |
Vehicles | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment | 5 years |
Computer hardware/software | |
Property, Plant and Equipment [Line Items] | |
Useful life of property, plant and equipment | 3 years |
Discontinued Operations - Narra
Discontinued Operations - Narrative (Details) - USD ($) | Mar. 01, 2021 | Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | Sep. 27, 2020 | Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Accounts receivable, net | $ 95,900,000 | $ 95,900,000 | $ 72,400,000 | |||||
Cost of selling business | $ 27,400,000 | |||||||
Term of certain silicon carbide materials and fabrication services | 4 years | |||||||
LED Business | Discontinued Operations, Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Loss on sale | (29,100,000) | 0 | $ 0 | |||||
Accounts receivable, net | 41,600,000 | |||||||
Cash received from divestiture | $ 50,000,000 | |||||||
Unsecured promissory note issued to parent in disposition | 125,000,000 | |||||||
Cost of selling business | 27,400,000 | |||||||
Goodwill impairment | $ (6,900,000) | $ (105,700,000) | (112,600,000) | 0 | 0 | |||
Impairment on assets held for sale | $ 19,500,000 | 19,500,000 | 0 | 0 | ||||
Income tax expense | 4,100,000 | 11,000,000 | 8,200,000 | 17,100,000 | ||||
Other long-term liabilities | $ 31,000,000 | 22,700,000 | 9,800,000 | |||||
Non-operating expense | 800,000 | |||||||
Other assets | $ 7,000,000 | 1,700,000 | ||||||
LED Business | Discontinued Operations, Disposed of by Sale | Purchase Price Note | Unsecured Debt | London Interbank Offered Rate (LIBOR) | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Basis spread on variable rate of debt instrument (as a percent) | 3.00% | |||||||
LED Business | Discontinued Operations, Disposed of by Sale | Minimum | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Potential earn-out payment | $ 2,500,000 | |||||||
LED Business | Discontinued Operations, Disposed of by Sale | Maximum | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Potential earn-out payment | $ 125,000,000 | |||||||
Term of real estate license agreement | 24 months | |||||||
LED Business, Real Estate License Agreement | Discontinued Operations, Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Administrative fees | 1,200,000 | |||||||
LED Business, Real Estate License Agreement | Discontinued Operations, Disposed of by Sale | Accounts Receivable | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Administrative fees | 300,000 | |||||||
Transition Service Agreement | Discontinued Operations, Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Administrative fees | 4,200,000 | 10,500,000 | 1,600,000 | |||||
Accrued administrative fees | 100,000 | 100,000 | 1,600,000 | |||||
Administrative fees | 4,000,000 | |||||||
Transition Service Agreement | Discontinued Operations, Disposed of by Sale | Accounts Receivable | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Administrative fees | 700,000 | |||||||
LED Supply Agreement | Discontinued Operations, Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Revenue | 4,200,000 | $ 12,000,000 | 2,100,000 | |||||
Accounts receivable, net | 700,000 | 700,000 | ||||||
Contract liability | $ 9,900,000 | $ 9,900,000 | ||||||
Lighting Products | Discontinued Operations, Disposed of by Sale | ||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | ||||||||
Cash received on disposal of assets | 219,000,000 | |||||||
Loss on sale | $ 66,200,000 |
Discontinued Operations - Finan
Discontinued Operations - Financial Results (Details) - Lighting Products - Discontinued Operations, Disposed of by Sale $ in Millions | 12 Months Ended |
Jun. 30, 2019USD ($) | |
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |
Revenue, net | $ 419.8 |
Cost of revenue, net | 324.3 |
Gross profit | 95.5 |
Research and development | 37.1 |
Sales, general and administrative | 100.6 |
Amortization or impairment of acquisition-related intangibles | 116.4 |
Goodwill impairment charges | 90.3 |
Loss on disposal or impairment of long-lived assets | 2 |
Loss before income taxes and loss on sale | (250.9) |
Loss on sale | 66.2 |
Loss before income taxes | (317.1) |
Income tax expense | 0.1 |
Net loss | $ (317.2) |
Discontinued Operations - Loss
Discontinued Operations - Loss from Discontinued Operations, Net of Income Taxes (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Operating expenses: | |||||||||||
Net (loss) income | $ (2.4) | $ (41.6) | $ (28.4) | $ (108.8) | $ 5.3 | $ (3.7) | $ 3.9 | $ 1.5 | $ (181.2) | $ 7 | $ (256.6) |
Net income from discontinued operations attributable to noncontrolling interest | 1.4 | 1.1 | 0 | ||||||||
Net (loss) income from discontinued operations attributable to controlling interest | (182.6) | 5.9 | (256.6) | ||||||||
LED Business | Discontinued Operations, Disposed of by Sale | |||||||||||
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items] | |||||||||||
Revenue, net | 272.8 | 433.2 | 541.8 | ||||||||
Cost of revenue, net | 213.3 | 343.4 | 394.5 | ||||||||
Gross profit | 59.5 | 89.8 | 147.3 | ||||||||
Operating expenses: | |||||||||||
Research and development | 22.3 | 32.2 | 36.8 | ||||||||
Sales, general and administrative | 29.4 | 29.7 | 31.8 | ||||||||
Goodwill impairment | $ 6.9 | $ 105.7 | 112.6 | 0 | 0 | ||||||
Impairment on assets held for sale | 19.5 | 19.5 | 0 | 0 | |||||||
Gain on disposal or impairment of long-lived assets | (1.6) | (0.1) | (0.3) | ||||||||
Other operating expense | 18.7 | 13.3 | 1.4 | ||||||||
Operating loss | (141.4) | 14.7 | 77.6 | ||||||||
Non-operating income | (0.3) | (0.5) | (0.1) | ||||||||
(Loss) income before income taxes and loss on sale | (141.1) | 15.2 | 77.7 | ||||||||
Loss on sale | 29.1 | 0 | 0 | ||||||||
(Loss) income before income taxes | (170.2) | 15.2 | 77.7 | ||||||||
Income tax expense | $ 4.1 | 11 | 8.2 | 17.1 | |||||||
Net (loss) income | (181.2) | 7 | 60.6 | ||||||||
Net income from discontinued operations attributable to noncontrolling interest | 1.4 | 1.1 | 0 | ||||||||
Net (loss) income from discontinued operations attributable to controlling interest | $ (182.6) | $ 5.9 | $ 60.6 |
Discontinued Operations - Asset
Discontinued Operations - Assets and Liabilities Classified as Discontinued Operations (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Mar. 28, 2021 | Mar. 01, 2021 | Jun. 28, 2020 |
Assets | ||||
Current assets of discontinued operations | $ 0 | $ 116 | ||
Long-term assets of discontinued operations | 1.2 | 270.1 | ||
Liabilities | ||||
Current liabilities of discontinued operations | 0.6 | 60.2 | ||
Long-term liabilities of discontinued operations | $ 0.6 | 9.8 | ||
Discontinued Operations, Disposed of by Sale | LED Business | ||||
Assets | ||||
Short-term investments | 12 | |||
Accounts receivable, net | 41.6 | |||
Inventories | 57.2 | |||
Prepaid expenses | 0.1 | |||
Other current assets | 5.1 | |||
Current assets of discontinued operations | 116 | |||
Property and equipment, net | 60.3 | |||
Goodwill | 180.3 | |||
Intangible assets, net | 22.7 | |||
Deferred tax assets | 5.1 | |||
Other assets | $ 7 | 1.7 | ||
Long-term assets of discontinued operations | 270.1 | |||
Liabilities | ||||
Accounts payable and accrued expenses | 31 | |||
Accrued contract liabilities | 24.1 | |||
Income taxes payable | 2 | |||
Other current liabilities | 3.1 | |||
Current liabilities of discontinued operations | 60.2 | |||
Other long-term liabilities | $ 22.7 | $ 31 | 9.8 | |
Long-term liabilities of discontinued operations | $ 9.8 |
Revenue Recognition - Narrative
Revenue Recognition - Narrative (Details) - USD ($) | 12 Months Ended | |
Jun. 27, 2021 | Jun. 28, 2020 | |
Revenue from Contract with Customer [Abstract] | ||
Contract liabilities | $ 45,200,000 | $ 47,900,000 |
Recognized revenue that was included in contract liabilities | $ 0 | $ 0 |
Revenue Recognition - Disaggreg
Revenue Recognition - Disaggregated Revenue from External Customers by Geographic Area (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, net | $ 145.8 | $ 137.3 | $ 127 | $ 115.5 | $ 108.4 | $ 113.9 | $ 120.7 | $ 127.7 | $ 525.6 | $ 470.7 | $ 538.2 |
Europe | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, net | $ 188.9 | $ 171.4 | $ 162.9 | ||||||||
Europe | Geographic Concentration Risk | Revenue from Contract with Customer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Revenue | 36.00% | 36.00% | 30.00% | ||||||||
United States | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, net | $ 117.3 | $ 106.5 | $ 122 | ||||||||
United States | Geographic Concentration Risk | Revenue from Contract with Customer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Revenue | 22.00% | 23.00% | 23.00% | ||||||||
China | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, net | $ 100.1 | $ 65 | $ 116.3 | ||||||||
China | Geographic Concentration Risk | Revenue from Contract with Customer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Revenue | 19.00% | 14.00% | 22.00% | ||||||||
Japan | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, net | $ 42.5 | $ 52.1 | $ 68.7 | ||||||||
Japan | Geographic Concentration Risk | Revenue from Contract with Customer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Revenue | 8.00% | 11.00% | 13.00% | ||||||||
South Korea | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, net | $ 32.1 | $ 47.7 | $ 32.5 | ||||||||
South Korea | Geographic Concentration Risk | Revenue from Contract with Customer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Revenue | 6.00% | 10.00% | 6.00% | ||||||||
Other | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
Revenue, net | $ 44.7 | $ 28 | $ 35.8 | ||||||||
Other | Geographic Concentration Risk | Revenue from Contract with Customer | |||||||||||
Disaggregation of Revenue [Line Items] | |||||||||||
% of Revenue | 9.00% | 6.00% | 6.00% |
Leases - Narrative (Details)
Leases - Narrative (Details) ft² in Thousands, $ in Millions | 12 Months Ended | |
Jun. 27, 2021USD ($)ft² | Jun. 28, 2020USD ($) | |
Lessee, Lease, Description [Line Items] | ||
Operating lease expense | $ 5.5 | $ 5.4 |
Finance lease amortization | 1 | 0.7 |
Interest expense on finance leases | $ 0.3 | 0.2 |
Area of property in lease agreement (square feet) | ft² | 58 | |
Lease income per year | $ 3.6 | |
Operating lease, term of contract | 24 months | |
Lease income | $ 1.2 | |
Variable lease income | $ 0 | $ 0 |
New York | ||
Lessee, Lease, Description [Line Items] | ||
Term of finance lease obligation | 49 years | |
Minimum | ||
Lessee, Lease, Description [Line Items] | ||
Notice of termination (in days) | 30 days | |
Maximum | ||
Lessee, Lease, Description [Line Items] | ||
Notice of termination (in days) | 60 days |
Leases - Lease Assets and Liabi
Leases - Lease Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 |
Operating Leases: | ||
Right-of-use assets | $ 12.1 | $ 12.3 |
Current lease liability | 4.5 | 4.8 |
Non-current lease liability | 7.5 | 7.5 |
Total operating lease liabilities | 12 | 12.3 |
Finance Leases: | ||
Finance lease assets | 15.5 | 15.4 |
Finance lease liabilities | 5.2 | 3.6 |
Finance lease liabilities - long-term | 10 | 11.4 |
Total finance lease liabilities | $ 15.2 | $ 15 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Other assets | Other assets |
Operating Lease, Liability, Current, Statement of Financial Position [Extensible List] | Other current liabilities | Other current liabilities |
Operating Lease, Liability, Noncurrent, Statement of Financial Position [Extensible List] | Other long-term liabilities | Other long-term liabilities |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Property and equipment, net | Property and equipment, net |
Leases - Cash Flow Information
Leases - Cash Flow Information (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Cash used in operating activities: | |||
Cash paid for operating leases | $ 5.7 | $ 5.5 | |
Cash paid for interest portion of financing leases | 0.3 | 0.1 | |
Cash used in financing activities: | |||
Cash paid for principal portion of finance leases | 0.4 | 0.8 | |
Non-cash operating activities: | |||
Operating lease additions due to adoption of ASC 842 | 0 | 11 | |
Operating lease additions and modifications, net | 4.8 | 6.4 | |
Finance lease additions | 4.8 | 15.7 | |
Transfer of finance lease liability to accounts payable and accrued expenses | $ 4.2 | $ 0 | $ 0 |
Leases - Maturities of Lease Li
Leases - Maturities of Lease Liabilities (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 |
Operating Leases | ||
June 26, 2022 | $ 4.7 | |
June 25, 2023 | 3.6 | |
June 30, 2024 | 2.2 | |
June 29, 2025 | 1.2 | |
June 28, 2026 | 0.7 | |
Thereafter | 0.2 | |
Total lease payments | 12.6 | |
Imputed lease interest | (0.6) | |
Total lease liabilities | 12 | $ 12.3 |
Finance Leases | ||
June 26, 2022 | 5.5 | |
June 25, 2023 | 0.7 | |
June 30, 2024 | 0.7 | |
June 29, 2025 | 0.7 | |
June 28, 2026 | 0.7 | |
Thereafter | 14.6 | |
Total lease payments | 22.9 | |
Imputed lease interest | (7.7) | |
Total lease liabilities | 15.2 | $ 15 |
Total | ||
June 26, 2022 | 10.2 | |
June 25, 2023 | 4.3 | |
June 30, 2024 | 2.9 | |
June 29, 2025 | 1.9 | |
June 28, 2026 | 1.4 | |
Thereafter | 14.8 | |
Total lease payments | 35.5 | |
Imputed lease interest | (8.3) | |
Total lease liabilities | $ 27.2 |
Leases - Weighted Average Remai
Leases - Weighted Average Remaining Lease Terms and Discount Rates (Details) | Jun. 27, 2021 |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term of operating leases (in months) | 35 months |
Weighted average remaining lease term of finance leases (in months) | 469 months |
Weighted average discount rate of operating leases (as a percent) | 2.85% |
Weighted average discount rate of finance leases (as a percent) | 2.48% |
Excluding Longest Lease | |
Lessee, Lease, Description [Line Items] | |
Weighted average remaining lease term of finance leases (in months) | 65 months |
Weighted average discount rate of finance leases (as a percent) | 1.24% |
New York | |
Lessee, Lease, Description [Line Items] | |
Term of finance lease obligation | 49 years |
Leases - Future Minimum Rental
Leases - Future Minimum Rental Income (Details) $ in Millions | Jun. 27, 2021USD ($) |
Leases [Abstract] | |
June 26, 2022 | $ 3.6 |
June 25, 2023 | 2.4 |
Total future minimum rental income | $ 6 |
Financial Statement Details - A
Financial Statement Details - Accounts Receivable, Net (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 |
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||||
Gross receivables | $ 96.7 | $ 73.1 | ||
Allowance for bad debts | (0.8) | (0.7) | $ (0.2) | $ (0.2) |
Accounts receivable, net | 95.9 | 72.4 | ||
Royalties | ||||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||||
Gross receivables | 0.5 | 0.4 | ||
Billed trade receivables | ||||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||||
Gross receivables | 95.6 | 71.5 | ||
Unbilled contract receivables | ||||
Accounts Receivable, after Allowance for Credit Loss [Abstract] | ||||
Gross receivables | $ 0.6 | $ 1.2 |
Financial Statement Details -_2
Financial Statement Details - Activity of Allowance for Bad Debts (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Accounts Receivable, Allowance for Credit Loss [Roll Forward] | |||
Balance at beginning of period | $ 0.7 | $ 0.2 | $ 0.2 |
Current period provision change | 0.1 | 0.6 | 0 |
Accounts Receivable, Allowance For Credit Loss, Writeoff (Recovery), Net | 0 | (0.1) | 0 |
Balance at end of period | $ 0.8 | $ 0.7 | $ 0.2 |
Financial Statement Details - I
Financial Statement Details - Inventories (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 |
Inventory, Net [Abstract] | ||
Raw material | $ 43.3 | $ 36.9 |
Work-in-progress | 109.5 | 73.9 |
Finished goods | 13.8 | 11.1 |
Inventories | 166.6 | 121.9 |
Inventory [Line Items] | ||
Inventories | 166.6 | 121.9 |
Operating Segments | Wolfspeed | ||
Inventory, Net [Abstract] | ||
Inventories | 159.2 | 97.3 |
Inventory [Line Items] | ||
Inventories | 159.2 | 97.3 |
Operating Segments | Wafer Supply Agreement inventory | ||
Inventory, Net [Abstract] | ||
Inventories | 0 | 19 |
Inventory [Line Items] | ||
Inventories | 0 | 19 |
Unallocated inventories | ||
Inventory, Net [Abstract] | ||
Inventories | 7.4 | 5.6 |
Inventory [Line Items] | ||
Inventories | $ 7.4 | $ 5.6 |
Financial Statement Details - P
Financial Statement Details - Property and Equipment (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,225.6 | $ 1,670.4 |
Accumulated depreciation | (933.3) | (899.6) |
Property and equipment, net | 1,292.3 | 770.8 |
United States | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 1,258.1 | 758.2 |
China | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 2.3 | 2.6 |
Other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, net | 31.9 | 10 |
Machinery and equipment | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 988.6 | 859.9 |
Land and buildings | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 383.9 | 363.1 |
Computer hardware/software | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 51.5 | 46.8 |
Furniture and fixtures | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 8 | 8.1 |
Leasehold improvements and other | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 9.6 | 9.7 |
Vehicles | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 0.7 | 0.6 |
Finance lease asset | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 15.5 | 15.4 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 767.8 | $ 366.8 |
Financial Statement Details - N
Financial Statement Details - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||
Depreciation of property and equipment | $ 100.5 | $ 76.7 | $ 64.9 |
Losses on disposals or impairments of property and equipment | 4.3 | 3.3 | 0.2 |
Salvage value | 20 | ||
Accrued property and equipment | 248.3 | 79.4 | 20.1 |
Factory Optimization Restructuring | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||
Losses on disposals or impairments of property and equipment | 3.4 | 3 | |
Reclassification out of Accumulated Other Comprehensive Income | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||
Loss on sale | 0.5 | ||
Currency translation gains (losses) reclassified to earnings | (9.5) | (5.2) | |
Reclassification out of Accumulated Other Comprehensive Income | AOCI, Accumulated Gain (Loss), Debt Securities, Available-for-sale, Including Noncontrolling Interest | |||
Reclassification out of Accumulated Other Comprehensive Income [Line Items] | |||
Gain (loss) on available for sale securities | $ 0.4 | $ 1.5 | $ (0.1) |
Financial Statement Details -_3
Financial Statement Details - Accounts Payable and Accrued Expenses (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Accounts payable, trade | $ 44.2 | $ 88.1 |
Accrued salaries and wages | 69.5 | 42.3 |
Accrued expenses | 265.7 | 55.3 |
Other | 1.7 | 4.1 |
Accounts payable and accrued expenses | $ 381.1 | $ 189.8 |
Financial Statement Details -_4
Financial Statement Details - Accumulated Other Comprehensive Income (Details) - USD ($) $ in Millions | 12 Months Ended | |
Jun. 27, 2021 | Jun. 28, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Currency translation gain | $ 0 | $ 9.5 |
Net unrealized gain on available-for-sale securities | 2.7 | 6.5 |
Accumulated other comprehensive income, net of taxes | 2.7 | 16 |
Unrealized loss on available-for-sale securities | $ 2.4 | $ 2.4 |
Financial Statement Details - O
Financial Statement Details - Other Operating Expense (Income) (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Factory optimization restructuring | $ 7.6 | $ 8.5 | $ 4.1 |
Severance and other restructuring | 3.4 | 0.6 | 2.8 |
Total restructuring costs | 11 | 9.1 | 6.9 |
Project, transformation and transaction costs | 7.3 | 12.2 | 16.9 |
Factory optimization start-up costs | 8 | 9.5 | 1.5 |
Non-restructuring related executive severance | 2.8 | 2.1 | 1.3 |
Other operating expense | $ 29.1 | $ 32.9 | $ 26.6 |
Financial Statement Details -_5
Financial Statement Details - Non-Operating Expense (Income), Net (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
(Gain) loss on sale of investments, net | $ (0.4) | $ (1.5) | $ 0.1 |
(Gain) loss on equity investment | (8.3) | (14.2) | 16.2 |
Gain on partial debt extinguishment | 0 | (11) | 0 |
Gain on arbitration proceedings | 0 | (7.9) | 0 |
Interest income | (10.1) | (16.3) | (13.9) |
Interest expense | 45.4 | 34.9 | 26 |
Foreign currency (gain) loss, net | (1.3) | (2) | 1.3 |
Loss on Wafer Supply Agreement | 0.8 | 0 | 0 |
Other, net | 0.2 | (0.5) | (0.3) |
Non-operating expense (income), net | $ 26.3 | $ (18.5) | $ 29.4 |
Financial Statement Details -_6
Financial Statement Details - Non-cash Operating Activities (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Lease asset and liability additions | $ 7.9 | $ 28.3 | $ 0 |
Lease asset and liability modifications, net | 1.7 | 4.8 | 0 |
Transfer of finance lease liability to accounts payable and accrued expenses | 4.2 | 0 | 0 |
Receivables for property, plant and equipment related insurance proceeds | 1.9 | 0 | 0 |
Decrease in property, plant and equipment from long-term incentive related receivables | 16.4 | 0 | $ 0 |
Operating lease additions due to adoption of ASC 842 | $ 0 | $ 11 |
Investments - Marketable Invest
Investments - Marketable Investments by Type (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 770.5 | $ 782 |
Gross Unrealized Gains | 5.5 | 8.9 |
Gross Unrealized Losses | 0.4 | 0 |
Estimated Fair Value | 775.6 | 790.9 |
Maximum | ||
Debt Securities, Available-for-sale [Line Items] | ||
Gross Unrealized Losses | 0.1 | |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 139.4 | 130 |
Gross Unrealized Gains | 1.9 | 2 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 141.3 | 132 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 456.5 | 473.8 |
Gross Unrealized Gains | 3.3 | 6.3 |
Gross Unrealized Losses | 0.3 | 0 |
Estimated Fair Value | 459.5 | 480.1 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 15.8 | 29.1 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 15.8 | 29.1 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 72.3 | 52.3 |
Gross Unrealized Gains | 0.3 | 0.6 |
Gross Unrealized Losses | 0.1 | 0 |
Estimated Fair Value | 72.5 | 52.9 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 16.5 | 83.3 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 16.5 | 83.3 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 50 | 11 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | 50 | 11 |
Variable rate demand note | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 20 | 2.5 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Estimated Fair Value | $ 20 | $ 2.5 |
Investments - Investment Securi
Investments - Investment Securities, Aggregated by Investment Type and Length of Time (Details) $ in Millions | Jun. 27, 2021USD ($)security | Jun. 28, 2020USD ($)security |
Fair Value | ||
Less than 12 Months | $ 227.9 | $ 65.8 |
Greater than 12 Months | 0 | 0 |
Total | 227.9 | 65.8 |
Unrealized Loss | ||
Less than 12 Months | 0.4 | 0 |
Greater than 12 Months | 0 | 0 |
Total | $ (0.4) | $ 0 |
Number of securities with an unrealized loss | ||
Less than 12 Months | security | 134 | 46 |
Greater than 12 Months | security | 0 | 0 |
Total | security | 134 | 46 |
Maximum | ||
Unrealized Loss | ||
Less than 12 Months | $ 0.1 | |
Municipal bonds | ||
Fair Value | ||
Less than 12 Months | $ 28.8 | 14.3 |
Greater than 12 Months | 0 | 0 |
Total | 28.8 | 14.3 |
Unrealized Loss | ||
Less than 12 Months | 0 | 0 |
Greater than 12 Months | 0 | 0 |
Total | 0 | 0 |
Corporate bonds | ||
Fair Value | ||
Less than 12 Months | 133.8 | 29.1 |
Greater than 12 Months | 0 | 0 |
Total | 133.8 | 29.1 |
Unrealized Loss | ||
Less than 12 Months | 0.3 | 0 |
Greater than 12 Months | 0 | 0 |
Total | (0.3) | 0 |
U.S. agency securities | ||
Fair Value | ||
Less than 12 Months | 16.7 | 8.6 |
Greater than 12 Months | 0 | 0 |
Total | 16.7 | 8.6 |
Unrealized Loss | ||
Less than 12 Months | 0 | 0 |
Greater than 12 Months | 0 | 0 |
Total | 0 | 0 |
U.S. treasury securities | ||
Fair Value | ||
Less than 12 Months | 47.9 | 13.8 |
Greater than 12 Months | 0 | 0 |
Total | 47.9 | 13.8 |
Unrealized Loss | ||
Less than 12 Months | 0.1 | 0 |
Greater than 12 Months | 0 | 0 |
Total | (0.1) | $ 0 |
Certificates of deposit | ||
Fair Value | ||
Less than 12 Months | 0.7 | |
Greater than 12 Months | 0 | |
Total | 0.7 | |
Unrealized Loss | ||
Less than 12 Months | 0 | |
Greater than 12 Months | 0 | |
Total | $ 0 |
Investments - Narrative (Detail
Investments - Narrative (Details) - USD ($) | Jun. 27, 2021 | Jun. 28, 2020 |
Investments, Debt and Equity Securities [Abstract] | ||
Accrued interest receivable | $ 5,500,000 | $ 4,300,000 |
Allowance for credit losses | $ 0 |
Investments - Contractual Matur
Investments - Contractual Maturities of Marketable Investments (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 |
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | $ 199.7 | |
After One, Within Five Years | 555.9 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 20 | |
Total | 775.6 | $ 790.9 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 24.7 | |
After One, Within Five Years | 116.6 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 141.3 | 132 |
Corporate bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 80.3 | |
After One, Within Five Years | 379.2 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 459.5 | 480.1 |
U.S. agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 3.5 | |
After One, Within Five Years | 12.3 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 15.8 | 29.1 |
U.S. treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 24.7 | |
After One, Within Five Years | 47.8 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 72.5 | 52.9 |
Certificates of deposit | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 16.5 | |
After One, Within Five Years | 0 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 16.5 | 83.3 |
Commercial paper | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 50 | |
After One, Within Five Years | 0 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 0 | |
Total | 50 | 11 |
Variable rate demand note | ||
Debt Securities, Available-for-sale [Line Items] | ||
Within One Year | 0 | |
After One, Within Five Years | 0 | |
After Five, Within Ten Years | 0 | |
After Ten Years | 20 | |
Total | $ 20 | $ 2.5 |
Fair Value of Financial Instr_3
Fair Value of Financial Instruments - Summary (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 |
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | $ 204.2 | $ 303.9 |
Total short-term investments | 775.6 | 790.9 |
Common stock of non-U.S. corporations | 0 | 55.9 |
Total assets | 979.8 | 1,150.7 |
Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 141.3 | 132 |
Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 459.5 | 480.1 |
U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 15.8 | 29.1 |
U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 72.5 | 52.9 |
Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 16.5 | 83.3 |
Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 50 | 11 |
Variable rate demand note | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 20 | 2.5 |
Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 96.9 | 199.9 |
Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 16 | 0 |
U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 6 | 19.6 |
U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 19 |
Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 54.3 |
Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 62.4 | 11.1 |
Variable rate demand note | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 22.9 | 0 |
Level 1 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 96.9 | 218.9 |
Total short-term investments | 72.5 | 52.9 |
Common stock of non-U.S. corporations | 0 | 0 |
Total assets | 169.4 | 271.8 |
Level 1 | Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 1 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 1 | U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 1 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 72.5 | 52.9 |
Level 1 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 1 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 1 | Variable rate demand note | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 1 | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 96.9 | 199.9 |
Level 1 | Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 1 | U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 1 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 19 |
Level 1 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 1 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 1 | Variable rate demand note | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 2 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 107.3 | 85 |
Total short-term investments | 703.1 | 738 |
Common stock of non-U.S. corporations | 0 | 55.9 |
Total assets | 810.4 | 878.9 |
Level 2 | Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 141.3 | 132 |
Level 2 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 459.5 | 480.1 |
Level 2 | U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 15.8 | 29.1 |
Level 2 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 2 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 16.5 | 83.3 |
Level 2 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 50 | 11 |
Level 2 | Variable rate demand note | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 20 | 2.5 |
Level 2 | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 2 | Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 16 | 0 |
Level 2 | U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 6 | 19.6 |
Level 2 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 2 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 54.3 |
Level 2 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 62.4 | 11.1 |
Level 2 | Variable rate demand note | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 22.9 | 0 |
Level 3 | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Total short-term investments | 0 | 0 |
Common stock of non-U.S. corporations | 0 | 0 |
Total assets | 0 | 0 |
Level 3 | Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 3 | Corporate bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 3 | U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 3 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 3 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 3 | Variable rate demand note | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total short-term investments | 0 | 0 |
Level 3 | Money market funds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 3 | Municipal bonds | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 3 | U.S. agency securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 3 | U.S. treasury securities | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 3 | Certificates of deposit | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 3 | Commercial paper | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | 0 | 0 |
Level 3 | Variable rate demand note | ||
Assets, Fair Value Disclosure [Abstract] | ||
Total cash equivalents | $ 0 | $ 0 |
Goodwill and Intangible Asset_2
Goodwill and Intangible Assets - Changes in Goodwill (Details) $ in Millions | 12 Months Ended |
Jun. 27, 2021USD ($) | |
Goodwill [Roll Forward] | |
Balance at beginning of period | $ 349.7 |
Transfer in connection with LED Business Divestiture | 9.5 |
Balance at end of period | $ 359.2 |
Goodwill and Intangible Asset_3
Goodwill and Intangible Assets - Components of Intangible Assets (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 |
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | $ 244.1 | $ 246.3 |
Accumulated Amortization | (103.6) | (89.4) |
Net | 140.5 | 156.9 |
Acquisition related intangible assets | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 177 | 177 |
Accumulated Amortization | (63.4) | (48.9) |
Net | 113.6 | 128.1 |
Customer relationships | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 96.8 | 96.8 |
Accumulated Amortization | (25.1) | (19) |
Net | 71.7 | 77.8 |
Developed technology | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 68 | 68 |
Accumulated Amortization | (28.2) | (22.8) |
Net | 39.8 | 45.2 |
Non-compete agreements | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 12.2 | 12.2 |
Accumulated Amortization | (10.1) | (7.1) |
Net | 2.1 | 5.1 |
Patent and licensing rights | ||
Acquired Finite-Lived Intangible Assets [Line Items] | ||
Gross | 67.1 | 69.3 |
Accumulated Amortization | (40.2) | (40.5) |
Net | $ 26.9 | $ 28.8 |
Goodwill and Intangible Asset_4
Goodwill and Intangible Assets - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Amortization or impairment of acquisition-related intangibles | $ 14.5 | $ 14.5 | $ 15.6 |
Patent and licensing rights | |||
Finite-Lived Intangible Assets [Line Items] | |||
Amortization of intangible assets | 5.9 | 5.9 | 5.7 |
Investments in intangible assets | 5.9 | 4.4 | 3.3 |
Impairment charges related to patent portfolio | $ 0.7 | $ 1.2 | $ 0.6 |
Goodwill and Intangible Asset_5
Goodwill and Intangible Assets - Future Amortization Expense of Intangible Assets (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 |
(in millions of U.S. Dollars) Fiscal Year Ending | ||
June 26, 2022 | $ 18.4 | |
June 25, 2023 | 15 | |
June 30, 2024 | 13.8 | |
June 29, 2025 | 13 | |
June 28, 2026 | 11.2 | |
Thereafter | 69.1 | |
Net | 140.5 | $ 156.9 |
Acquisition Related Intangibles | ||
(in millions of U.S. Dollars) Fiscal Year Ending | ||
June 26, 2022 | 13.5 | |
June 25, 2023 | 11 | |
June 30, 2024 | 10.4 | |
June 29, 2025 | 10.4 | |
June 28, 2026 | 9.3 | |
Thereafter | 59 | |
Net | 113.6 | $ 128.1 |
Patents | ||
(in millions of U.S. Dollars) Fiscal Year Ending | ||
June 26, 2022 | 4.9 | |
June 25, 2023 | 4 | |
June 30, 2024 | 3.4 | |
June 29, 2025 | 2.6 | |
June 28, 2026 | 1.9 | |
Thereafter | 10.1 | |
Net | $ 26.9 |
Long-term Debt - Narrative (Det
Long-term Debt - Narrative (Details) | Apr. 21, 2020USD ($)day$ / shares | Aug. 24, 2018USD ($)day$ / shares | Jun. 27, 2021USD ($)day | Jun. 28, 2020USD ($) | Jun. 30, 2019USD ($) | Mar. 27, 2020 |
Debt Instrument [Line Items] | ||||||
Interest expense capitalized | $ 3,300,000 | |||||
Convertible Notes | ||||||
Debt Instrument [Line Items] | ||||||
Carrying amount of equity component of convertible debt | 228,300,000 | $ 228,300,000 | ||||
Interest expense capitalized | $ 0 | $ 0 | ||||
Discount and issuance costs capitalized | $ 7,300,000 | |||||
Convertible Notes | Conversion Circumstance One | ||||||
Debt Instrument [Line Items] | ||||||
Threshold percentage of stock price trigger (as a percent) | 130.00% | |||||
Threshold trading days | day | 20 | |||||
Threshold consecutive trading days | day | 30 | |||||
Convertible Notes | Level 2 | ||||||
Debt Instrument [Line Items] | ||||||
Fair value of debt instrument | $ 1,900,000,000 | |||||
Convertible Notes | Convertible Notes due September 1, 2023 | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 500,000,000 | |||||
Stated interest rate (as a percent) | 0.875% | |||||
Aggregate principal amount of conversion feature | $ 75,000,000 | |||||
Proceeds from long-term debt borrowings | $ 562,100,000 | |||||
Conversion price (USD per share) | $ / shares | $ 59.97 | |||||
Threshold percentage of stock price trigger (as a percent) | 130.00% | |||||
Threshold trading days | day | 20 | |||||
Threshold consecutive trading days | day | 30 | |||||
Redemption price percentage (as a percent) | 100.00% | |||||
Conversion ratio (as a percent) | 0.0166745 | |||||
Period of reported sale price of common stock | 5 days | |||||
Period of consecutive reported sale price of common stock | 10 days | |||||
Percentage of product of last reported price (as a percent) | 98.00% | |||||
Repurchase of aggregate principal amount of debt instrument | 150,200,000 | |||||
Decrease in accrued interest from repurchase of debt | 200,000 | |||||
Carrying amount of equity component of convertible debt | 110,600,000 | |||||
Decrease in carrying amount of equity component of convertible debt | 27,700,000 | |||||
Effective interest rate (as a percent) | 5.87% | |||||
Principal amount exceeded on if-converted debt | 273,500,000 | |||||
Convertible Notes | Convertible Notes due May 1, 2026 | ||||||
Debt Instrument [Line Items] | ||||||
Aggregate principal amount | $ 500,000,000 | |||||
Stated interest rate (as a percent) | 1.75% | |||||
Aggregate principal amount of conversion feature | $ 75,000,000 | |||||
Proceeds from long-term debt borrowings | $ 561,400,000 | |||||
Conversion price (USD per share) | $ / shares | $ 47.32 | |||||
Threshold percentage of stock price trigger (as a percent) | 130.00% | |||||
Threshold trading days | day | 20 | |||||
Threshold consecutive trading days | day | 30 | |||||
Redemption price percentage (as a percent) | 100.00% | |||||
Conversion ratio (as a percent) | 0.0211346 | |||||
Period of reported sale price of common stock | 5 days | |||||
Period of consecutive reported sale price of common stock | 10 days | |||||
Percentage of product of last reported price (as a percent) | 98.00% | |||||
Proceeds from Notes used to repurchase debt | 144,300,000 | |||||
Carrying amount of equity component of convertible debt | 145,400,000 | |||||
Effective interest rate (as a percent) | 7.45% | |||||
Principal amount exceeded on if-converted debt | 623,100,000 | |||||
Line of Credit | ||||||
Debt Instrument [Line Items] | ||||||
Maximum borrowing capacity | 125,000,000 | |||||
Minimum required ratio of cash equivalents and marketable securities to outstanding loans and letters of credit obligations | 1.25 | |||||
Outstanding borrowings | 0 | |||||
Remaining borrowing capacity | $ 125,000,000 | |||||
Average interest rate (as a percent) | 0.03% | |||||
Line of credit facility, draw period (in days) | 7 days | |||||
Seven day draw on line of credit | $ 30,000,000 | |||||
Commitment fee rate (as a percent) | 0.25% |
Long-term Debt - Liability and
Long-term Debt - Liability and Equity Component of Convertible Notes (Details) - Convertible Notes - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 |
Liability Component: | ||
Principal | $ 999.8 | $ 999.8 |
Unamortized discount and issuance costs | (175.9) | (216) |
Net carrying amount | 823.9 | 783.8 |
Equity Component: | ||
Discount related to value of conversion option | 262.3 | 262.3 |
Partial extinguishment of 2023 Notes | (27.7) | (27.7) |
Debt issuance costs | (6.3) | (6.3) |
Net carrying amount | $ 228.3 | $ 228.3 |
Long-term Debt - Interest Expen
Long-term Debt - Interest Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Debt Instrument [Line Items] | |||
Amortization of discount and issuance costs, net of capitalized interest | $ 32.8 | $ 26.2 | $ 18.3 |
Convertible Notes | |||
Debt Instrument [Line Items] | |||
Interest expense, net of capitalized interest | 10.4 | 6.8 | 4.3 |
Amortization of discount and issuance costs, net of capitalized interest | 32.8 | 26.2 | 18.3 |
Total interest expense, net | $ 43.2 | $ 33 | $ 22.6 |
Shareholders' Equity - Narrativ
Shareholders' Equity - Narrative (Details) - USD ($) | Feb. 19, 2021 | Feb. 11, 2021 | Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 |
Subsidiary, Sale of Stock [Line Items] | |||||
Proceeds from issuance of common stock | $ 539,700,000 | $ 76,400,000 | $ 158,000,000 | ||
Common shares reserved (in shares) | 42,185,000 | ||||
ATM Program | |||||
Subsidiary, Sale of Stock [Line Items] | |||||
Maximum aggregate offering price for sale of stock | $ 500,000,000 | ||||
Value of common stock sold | $ 500,000,000 | ||||
Number of shares issued (in shares) | 4,222,511 | ||||
Sale of stock, price per share (in dollars per share) | $ 118.41 | ||||
Proceeds from issuance of common stock, gross | $ 500,000,000 | ||||
Proceeds from issuance of common stock | 489,100,000 | ||||
Commissions and offering costs | 10,000,000 | ||||
Other offering costs | $ 900,000 |
Shareholders' Equity - Shares R
Shareholders' Equity - Shares Reserved for Future Issuance (Details) shares in Thousands | Jun. 27, 2021shares |
Class of Stock [Line Items] | |
Total common shares reserved (in shares) | 42,185 |
Convertible Notes due September 1, 2023 | |
Class of Stock [Line Items] | |
Total common shares reserved (in shares) | 12,560 |
Convertible Notes due May 1, 2026 | |
Class of Stock [Line Items] | |
Total common shares reserved (in shares) | 16,102 |
2013 Long-Term Incentive Compensation Plan | |
Class of Stock [Line Items] | |
Total common shares reserved (in shares) | 5,329 |
Non-Employee Director Stock Compensation and Deferral Program | |
Class of Stock [Line Items] | |
Total common shares reserved (in shares) | 45 |
Employee Stock Purchase Plan | |
Class of Stock [Line Items] | |
Total common shares reserved (in shares) | 5,839 |
Stock Options | |
Class of Stock [Line Items] | |
Total common shares reserved (in shares) | 142 |
Outstanding stock units | |
Class of Stock [Line Items] | |
Total common shares reserved (in shares) | 2,168 |
Loss Per Share - Summary (Detai
Loss Per Share - Summary (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Earnings Per Share [Abstract] | |||||||||||
Net loss from continuing operations | $ (145.2) | $ (66.5) | $ (54.3) | $ (75.3) | $ (44.2) | $ (56.2) | $ (57.9) | $ (39.3) | $ (341.3) | $ (197.6) | $ (118.5) |
Net (loss) income from discontinued operations | $ (2.4) | $ (41.6) | $ (28.4) | $ (108.8) | $ 5.3 | $ (3.7) | $ 3.9 | $ 1.5 | (181.2) | 7 | (256.6) |
Net income from discontinued operations attributable to noncontrolling interest | 1.4 | 1.1 | 0 | ||||||||
Net (loss) income from discontinued operations attributable to controlling interest | $ (182.6) | $ 5.9 | $ (256.6) | ||||||||
Weighted average shares - basic (in thousands) (shares) | 112,346 | 107,935 | 103,576 | ||||||||
Weighted average shares - basic (in thousands) (shares) | 112,346 | 107,935 | 103,576 | ||||||||
Loss per share - basic and diluted: | |||||||||||
Continuing operations attributable to controlling interest - basic (USD per share) | $ (1.26) | $ (0.59) | $ (0.49) | $ (0.69) | $ (0.41) | $ (0.52) | $ (0.54) | $ (0.37) | $ (3.04) | $ (1.83) | $ (1.14) |
Continuing operations attributable to controlling interest - diluted (USD per share) | $ (1.26) | $ (0.59) | $ (0.49) | $ (0.69) | $ (0.41) | $ (0.52) | $ (0.54) | $ (0.37) | (3.04) | (1.83) | (1.14) |
Discontinued operations - basic (USD per share) | (1.63) | 0.05 | (2.48) | ||||||||
Discontinued operations - diluted (USD per share) | $ (1.63) | $ 0.05 | $ (2.48) |
Loss Per Share - Narrative (Det
Loss Per Share - Narrative (Details) - shares shares in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Common Stock | |||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | |||
Anti-dilutive potential common shares excluded from diluted earnings per share calculation (shares) | 3.4 | 5.4 | 9 |
Stock-Based Compensation - Narr
Stock-Based Compensation - Narrative (Details) $ / shares in Units, $ in Millions | 12 Months Ended | ||
Jun. 27, 2021USD ($)stockPurchasepurchasePeriodcompensationPlan$ / sharesshares | Jun. 28, 2020USD ($) | Jun. 30, 2019USD ($) | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Closing price of common stock (USD per share) | $ / shares | $ 98.59 | ||
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Stock authorized for issuance (shares) | 6,000,000 | ||
Stock reserved for future issuance (shares) | 5,800,000 | ||
Maximum contribution of employee's compensation (as a percent) | 15.00% | ||
Employee stock plan purchase price of fair value (as a percent) | 15.00% | ||
Number of times employees can purchase stock per year | stockPurchase | 2 | ||
Duration of participation period | 12 months | ||
Number of purchase periods | purchasePeriod | 2 | ||
Duration of purchase periods | 6 months | ||
Discount from market price, beginning of participation period or purchase date (as a percent) | 15.00% | ||
Stock Options | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vested and expected to vest | $ | $ 10.1 | ||
Unrecognized compensation cost (less than) | $ | $ 0 | ||
Stock option grants during period (shares) | 0 | ||
Restricted Stock Awards and Restricted Stock Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Fair value | $ | $ 110.6 | $ 49.8 | $ 68.1 |
Unrecognized compensation cost (less than) | $ | $ 73.4 | ||
Unrecognized compensation cost expected to be recognized, weighted average period (in years) | 1 year 10 months 17 days | ||
2013 Long-Term Incentive Compensation Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Number of equity-based compensation plans | compensationPlan | 1 | ||
Stock authorized for issuance (shares) | 15,900,000 | ||
Stock reserved for future issuance (shares) | 5,300,000 |
Stock-Based Compensation - Outs
Stock-Based Compensation - Outstanding Option Awards (Details) - Stock Options $ / shares in Units, shares in Thousands, $ in Millions | 12 Months Ended |
Jun. 27, 2021USD ($)$ / sharesshares | |
Number of Shares | |
Outstanding at beginning of period (shares) | shares | 983 |
Granted (shares) | shares | 0 |
Exercised (shares) | shares | (830) |
Forfeited or expired (shares) | shares | (11) |
Outstanding at end of period (shares) | shares | 142 |
Vested and expected to vest (shares) | shares | 142 |
Exercisable (shares) | shares | 142 |
Weighted Average Exercise Price | |
Outstanding at beginning of period (USD per share) | $ / shares | $ 37.88 |
Granted (USD per share) | $ / shares | 0 |
Exercised (USD per share) | $ / shares | 39.34 |
Forfeited or expired (USD per share) | $ / shares | 64.51 |
Outstanding at end of period (USD per share) | $ / shares | 27.37 |
Vested and expected to vest (USD per share) | $ / shares | 27.37 |
Exercisable (USD per share) | $ / shares | $ 27.37 |
Weighted Average Remaining Contractual Term | |
Outstanding | 1 year 7 months 13 days |
Vested and expected to vest | 1 year 7 months 13 days |
Exercisable | 1 year 7 months 13 days |
Total Intrinsic Value (in millions of U.S. Dollars) | |
Outstanding | $ | $ 10.1 |
Vested and expected to vest | $ | 10.1 |
Exercisable | $ | $ 10.1 |
Stock-Based Compensation - Stoc
Stock-Based Compensation - Stock Options Outstanding and Exercisable (Details) shares in Thousands | 12 Months Ended |
Jun. 27, 2021$ / sharesshares | |
Options Outstanding | |
Number (shares) | shares | 142 |
Options Exercisable | |
Number (shares) | shares | 142 |
$0.01 to $25.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum (USD per share) | $ 0.01 |
Exercise price range, maximum (USD per share) | $ 25 |
Options Outstanding | |
Number (shares) | shares | 66 |
Weighted Average Remaining Contractual Life (Years) | 2 years 1 month 6 days |
Weighted Average Exercise Price (USD per share) | $ 24.34 |
Options Exercisable | |
Number (shares) | shares | 66 |
Weighted Average Exercise Price (USD per share) | $ 24.34 |
$25.01 to $35.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum (USD per share) | 25.01 |
Exercise price range, maximum (USD per share) | $ 35 |
Options Outstanding | |
Number (shares) | shares | 62 |
Weighted Average Remaining Contractual Life (Years) | 1 year 4 months 24 days |
Weighted Average Exercise Price (USD per share) | $ 26.92 |
Options Exercisable | |
Number (shares) | shares | 62 |
Weighted Average Exercise Price (USD per share) | $ 26.92 |
$35.01 to $45.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum (USD per share) | 35.01 |
Exercise price range, maximum (USD per share) | $ 45 |
Options Outstanding | |
Number (shares) | shares | 1 |
Weighted Average Remaining Contractual Life (Years) | 9 months 18 days |
Weighted Average Exercise Price (USD per share) | $ 35.17 |
Options Exercisable | |
Number (shares) | shares | 1 |
Weighted Average Exercise Price (USD per share) | $ 35.17 |
$45.01 to $55.00 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Exercise price range, minimum (USD per share) | 45.01 |
Exercise price range, maximum (USD per share) | $ 55 |
Options Outstanding | |
Number (shares) | shares | 13 |
Weighted Average Remaining Contractual Life (Years) | 2 months 12 days |
Weighted Average Exercise Price (USD per share) | $ 45.13 |
Options Exercisable | |
Number (shares) | shares | 13 |
Weighted Average Exercise Price (USD per share) | $ 45.13 |
Stock-Based Compensation - Othe
Stock-Based Compensation - Other Information Pertaining to Stock-Based Awards of Options (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Share-based Payment Arrangement [Abstract] | |||
Intrinsic value | $ 30.8 | $ 22.8 | $ 63.3 |
Stock-Based Compensation - Nonv
Stock-Based Compensation - Nonvested Shares of Restricted Stock Awards and Restricted Stock Units Outstanding (Details) - Restricted Stock Awards and Restricted Stock Units shares in Thousands | 12 Months Ended |
Jun. 27, 2021$ / sharesshares | |
Number of RSUs | |
Nonvested at beginning of period (shares) | shares | 2,932 |
Granted (shares) | shares | 1,059 |
Vested (shares) | shares | (1,459) |
Forfeited (shares) | shares | (364) |
Nonvested at end of period (shares) | shares | 2,168 |
Weighted Average Grant-Date Fair Value | |
Nonvested at beginning of period (USD per share) | $ / shares | $ 43.89 |
Granted (USD per share) | $ / shares | 67 |
Vested (USD per share) | $ / shares | 38.12 |
Forfeited (USD per share) | $ / shares | 53.14 |
Nonvested at end of period (USD per share) | $ / shares | $ 57.38 |
Stock-Based Compensation - Tota
Stock-Based Compensation - Total Stock-Based Compensation Expense (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 53.2 | $ 48.8 | $ 42.9 |
Cost of revenue, net | |||
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 14.4 | 10 | 7.8 |
Research and development | |||
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | 8.7 | 8 | 6.2 |
Sales, general and administrative | |||
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items] | |||
Total stock-based compensation expense | $ 30.1 | $ 30.8 | $ 28.9 |
Stock-Based Compensation - Weig
Stock-Based Compensation - Weighted-Average Assumptions Utilized to Value Stock Option Grants (Details) | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Employee Stock Purchase Plan | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Employee Stock Purchase Plan | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (as a percent) | 0.03% | 0.12% | 2.39% |
Expected life, in years | 6 months | 6 months | 6 months |
Volatility (as a percent) | 52.40% | 34.50% | 34.50% |
Employee Stock Purchase Plan | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (as a percent) | 0.17% | 2.67% | 2.67% |
Expected life, in years | 1 year | 1 year | 1 year |
Volatility (as a percent) | 82.60% | 82.60% | 39.60% |
Performance Units | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Expected life, in years | 3 years | 3 years | |
Average volatility of peer companies (as a percent) | 46.80% | ||
Average correlation coefficient of peer companies | 0.34 | ||
Dividend yield (as a percent) | 0.00% | 0.00% | 0.00% |
Performance Units | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (as a percent) | 0.11% | 0.28% | |
Average volatility of peer companies (as a percent) | 48.90% | 48.90% | |
Average correlation coefficient of peer companies | 0.36 | 0.36 | |
Performance Units | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Risk-free interest rate (as a percent) | 1.66% | 1.66% | 2.68% |
Expected life, in years | 3 years | ||
Average volatility of peer companies (as a percent) | 60.50% | 55.20% | |
Average correlation coefficient of peer companies | 0.51 | 0.45 |
Income Taxes - Components of In
Income Taxes - Components of Income from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |||
Domestic | $ (348.7) | $ (210.3) | $ (92.2) |
Foreign | 8.5 | 4.7 | (30.7) |
Loss before income taxes | $ (340.2) | $ (205.6) | $ (122.9) |
Income Taxes - Components of _2
Income Taxes - Components of Income Tax Expense from Continuing Operations (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Current: | |||
Federal | $ 0.1 | $ (7.3) | $ 1.4 |
Foreign | 0.1 | 0.2 | 0.5 |
State | 0.2 | 0.1 | 0.3 |
Total current | 0.4 | (7) | 2.2 |
Deferred: | |||
Federal | 0.7 | 1.8 | (1.9) |
Foreign | 0 | (2.8) | (4.5) |
State | 0 | 0 | (0.2) |
Total deferred | 0.7 | (1) | (6.6) |
Income tax expense (benefit) | $ 1.1 | $ (8) | $ (4.4) |
Income Taxes - Effective Income
Income Taxes - Effective Income Tax Rate and Amount Reconciliation (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Effective Income Tax Rate Reconciliation, Amount [Abstract] | |||
Federal income tax provision at statutory rate | $ (71.4) | $ (43.2) | $ (25.8) |
State tax provision, net of federal benefit | 1.00% | 1.00% | 2.00% |
State tax provision, net of federal benefit | $ (1.9) | $ (1.9) | $ (2) |
Tax exempt interest | 0.00% | 0.00% | 0.00% |
Tax exempt interest | $ (0.1) | $ (0.5) | $ (0.4) |
(Decrease) increase in tax reserve | 0 | (0.3) | 0.5 |
Research and development credits | (4.3) | (3.3) | (2.8) |
Foreign tax credit | (0.4) | (0.3) | (0.4) |
Increase (decrease) in valuation allowance | 75 | 50.3 | 4.3 |
Partial extinguishment of convertible notes | 0 | (6) | 0 |
Stock-based compensation | (2.8) | 2.1 | 0.7 |
Statutory rate differences | 1.1 | 1.2 | 6 |
Foreign earnings taxed in U.S. | 2.7 | 0.3 | 0.4 |
Other foreign adjustments | (0.1) | 0.3 | (0.1) |
Net operating loss carryback | 0 | (7.2) | 0 |
Provision to return adjustments | (0.2) | (1.3) | 11.8 |
Tax on distributable foreign earnings | 0 | 0 | 0 |
Impact of rate changes | 2.7 | 0.8 | 2.7 |
Expiration of state credits | 0.7 | 0.9 | 1.2 |
Other | 0.1 | 0.1 | (0.5) |
Income tax expense (benefit) | $ 1.1 | $ (8) | $ (4.4) |
Effective Income Tax Rate Reconciliation, Percent [Abstract] | |||
Federal income tax provision at statutory rate | 21.00% | 21.00% | 21.00% |
(Decrease) increase in tax reserve | 0.00% | 0.00% | 0.00% |
Research and development credits | 1.00% | 2.00% | 2.00% |
Foreign tax credit | 0.00% | 0.00% | 0.00% |
Increase (decrease) in valuation allowance | (22.00%) | (25.00%) | (4.00%) |
Partial extinguishment of convertible notes | 0.00% | 3.00% | 0.00% |
Stock-based compensation | 1.00% | (1.00%) | (1.00%) |
Statutory rate differences | 0.00% | (1.00%) | (5.00%) |
Foreign earnings taxed in U.S. | (1.00%) | 0.00% | 0.00% |
Other foreign adjustments | 0.00% | 0.00% | 0.00% |
Net operating loss carryback | 0.00% | 4.00% | 0.00% |
Provision to return adjustments | 0.00% | 1.00% | (10.00%) |
Tax on distributable foreign earnings | 0.00% | 0.00% | 0.00% |
Impact of rate changes | (1.00%) | 0.00% | (2.00%) |
Expiration of state credits | 0.00% | 0.00% | (1.00%) |
Other | 0.00% | 0.00% | 0.00% |
Income tax expense (benefit) | 0.00% | 4.00% | 4.00% |
Income Taxes - Tax Effects of T
Income Taxes - Tax Effects of Temporary Differences that Give Rise to Significant Portions of Deferred Tax Assets and Liabilities (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 |
Deferred tax assets: | ||
Compensation | $ 10.4 | $ 4.4 |
Inventories | 13.6 | 7.9 |
Sales return reserve and allowance for bad debts | 2.3 | 2.6 |
Federal and state net operating loss carryforwards | 360.6 | 180.1 |
Federal credits | 42.1 | 30.3 |
State credits | 1.2 | 1.9 |
48C investment tax credits | 36.6 | 37.5 |
Investments | 0.3 | 0 |
Stock-based compensation | 6.1 | 8.3 |
Deferred revenue | 26.3 | 23.1 |
Lease liabilities | 6.2 | 6.5 |
Other | 4.5 | 5 |
Total gross deferred assets | 510.2 | 307.6 |
Less valuation allowance | (414.4) | (208.5) |
Deferred tax assets, net | 95.8 | 99.1 |
Deferred tax liabilities: | ||
Property and equipment | (36.9) | (27.8) |
Intangible assets | (16.6) | (19.2) |
Investments | 1.1 | 1.6 |
Prepaid taxes and other | (0.7) | (0.7) |
Foreign earnings recapture | 0 | (2) |
Taxes on unremitted foreign earnings | (1.5) | 0 |
Lease assets | (6.1) | (6.3) |
Convertible notes | (34.4) | (42.1) |
Total gross deferred liability | (97.3) | (99.7) |
Deferred tax liability, net | $ (1.5) | $ (0.6) |
Income Taxes - Components Givin
Income Taxes - Components Giving Rise to Net Deferred Tax Assets (Liabilities) included in Accompanying Consolidated Balance Sheet (Details) - USD ($) $ in Millions | Jun. 27, 2021 | Jun. 28, 2020 |
Operating Loss Carryforwards [Line Items] | ||
Assets | $ 1 | $ 1.2 |
Liabilities | (2.5) | (1.8) |
U.S. federal income taxes | ||
Operating Loss Carryforwards [Line Items] | ||
Assets | 0 | 0 |
Liabilities | (2.5) | (1.8) |
Foreign income taxes | ||
Operating Loss Carryforwards [Line Items] | ||
Assets | 1 | 1.2 |
Liabilities | $ 0 | $ 0 |
Income Taxes - Narrative (Detai
Income Taxes - Narrative (Details) - USD ($) $ in Millions | 12 Months Ended | |||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | Jun. 24, 2018 | |
Operating Loss Carryforwards [Line Items] | ||||
Valuation allowance of deferred tax assets | $ 414.4 | $ 208.5 | ||
Foreign net operating loss carryforward | 491.8 | |||
Federal net operating loss carryforward | 1,100 | |||
State net operating loss carryforwards | 251 | |||
Unrecognized tax benefits | 7.4 | 7.4 | $ 8.2 | $ 8.6 |
Increase (decrease) in unrecognized tax benefits | 0 | |||
Estimated change in gross unrecognized tax benefits | 0.6 | |||
Interest and penalties expense related to unrecognized tax benefits (less than) | 0.1 | |||
Interest and penalties accrued related to unrecognized tax benefits (less than) | 0.1 | |||
Undistributed earnings of foreign subsidiaries | 189.7 | |||
Undistributed earnings of foreign subsidiaries expected to be repatriated | 171.4 | |||
Foreign income taxes incurred | 1.4 | |||
Undistributed foreign earnings on which income taxes have not been provided | 18.3 | |||
Income tax expense (benefit) if foreign earnings are repatriated | 0.3 | |||
Domestic Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Increase (decrease) in valuation allowance of operating loss carryforward | 87.4 | |||
Valuation allowance of deferred tax assets | 205.2 | |||
Tax credit carryforward | 78.7 | |||
Foreign Tax Authority | ||||
Operating Loss Carryforwards [Line Items] | ||||
Increase (decrease) in valuation allowance of operating loss carryforward | 118.5 | |||
Valuation allowance of deferred tax assets | $ 3.3 | |||
Deferred tax assets | 121.8 | |||
Realizable deferred tax assets | 121.8 | |||
Net operating loss deferred tax assets | 121.8 | |||
Valuation allowance of net operating loss carryforwards | 488.5 | |||
Net operating loss carryforward not subject to expiration | 7.8 | |||
Net operating loss carryforward subject to expiration | 484 | |||
State and Local Jurisdiction | ||||
Operating Loss Carryforwards [Line Items] | ||||
Tax credit carryforward | $ 1.6 |
Income Taxes - Reconciliation o
Income Taxes - Reconciliation of Change in Uncertain Tax Positions (Details) - USD ($) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Reconciliation of Changes in Uncertain Tax Positions [Roll Forward] | |||
Balance at beginning of period | $ 7.4 | $ 8.2 | $ 8.6 |
Decrease related to current year change in law | 0 | 0 | 0 |
Increases related to prior year tax positions | 0 | 0 | 0.5 |
Decreases related to prior year tax positions | 0 | 0 | 0 |
Settlements with tax authorities | 0 | (0.1) | 0 |
Expiration of statute of limitations for assessment of taxes | 0 | (0.7) | (0.9) |
Balance at end of period | $ 7.4 | $ 7.4 | $ 8.2 |
Commitments and Contingencies -
Commitments and Contingencies - Narrative (Details) | 3 Months Ended | 12 Months Ended | ||
Jun. 27, 2021USD ($)endowedFacultyChair | Jun. 27, 2021USD ($) | Jun. 28, 2020USD ($) | Jun. 30, 2019USD ($) | |
Loss Contingencies [Line Items] | ||||
GDA term | 13 years | |||
Duration of annual commitment fee payment of GDA | 6 years | |||
Number of endowed faculty chairs created | endowedFacultyChair | 2 | |||
Reduction in property plant and equipment | $ 27,100,000 | |||
Reimbursement of property and equipment purchases from long-term incentive agreement | 10,700,000 | $ 0 | $ 0 | |
Receivables | $ 4,600,000 | 4,600,000 | ||
Other assets | 11,800,000 | 11,800,000 | ||
Minimum | ||||
Loss Contingencies [Line Items] | ||||
Annual cost of GDA | 2,500,000 | |||
Maximum | ||||
Loss Contingencies [Line Items] | ||||
Potential total grant amount of GDA | 500,000,000 | $ 500,000,000 | ||
Annual cost of GDA | $ 5,200,000 |
Concentrations of Risk - Narrat
Concentrations of Risk - Narrative (Details) - Customer Concentration Risk | 12 Months Ended | ||
Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
STMicroelectronics | Revenue from Contract with Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk | 18.00% | 19.00% | 11.00% |
STMicroelectronics | Accounts Receivable Benchmark | |||
Concentration Risk [Line Items] | |||
Concentration risk | 16.00% | 14.00% | |
Arrow Electronics, Inc. | Revenue from Contract with Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk | 13.00% | 14.00% | |
Arrow Electronics, Inc. | Accounts Receivable Benchmark | |||
Concentration Risk [Line Items] | |||
Concentration risk | 16.00% | ||
Sumitomo | Revenue from Contract with Customer | |||
Concentration Risk [Line Items] | |||
Concentration risk | 10.00% | 14.00% | 14.00% |
Infineon | Accounts Receivable Benchmark | |||
Concentration Risk [Line Items] | |||
Concentration risk | 11.00% |
Retirement Savings Plan - Narra
Retirement Savings Plan - Narrative (Details) $ in Millions | 12 Months Ended | ||
Jun. 27, 2021USD ($)compensationPlan | Jun. 28, 2020USD ($) | Jun. 30, 2019USD ($) | |
Retirement Benefits [Abstract] | |||
Number of employee benefit plans | compensationPlan | 1 | ||
Employer discretionary contribution amount | $ | $ 8 | $ 7.7 | $ 7.3 |
Restructuring - Narrative (Deta
Restructuring - Narrative (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended | ||
Jun. 30, 2019 | Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 11 | $ 9.1 | $ 6.9 | |
Corporate Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 2.6 | |||
Severance related costs | 2.8 | |||
Factory Optimization Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 5.2 | 9 | $ 4.1 | |
Restructuring charges expected to be incurred | 90 | |||
Restructuring costs accrued | 0.1 | |||
Factory Optimization Restructuring | Disposal of Long Lived Assets | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 3.4 | |||
Sales Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | $ 0.2 | |||
Sales Representatives Restructuring | ||||
Restructuring Cost and Reserve [Line Items] | ||||
Restructuring charges | 0.6 | |||
Severance related costs | $ 0.6 | |||
Restructuring costs accrued | $ 0.1 |
Quarterly Results of Operatio_3
Quarterly Results of Operations - Unaudited - Summary (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 12 Months Ended | |||||||||
Jun. 27, 2021 | Mar. 28, 2021 | Dec. 27, 2020 | Sep. 27, 2020 | Jun. 28, 2020 | Mar. 29, 2020 | Dec. 29, 2019 | Sep. 29, 2019 | Jun. 27, 2021 | Jun. 28, 2020 | Jun. 30, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Revenue, net | $ 145.8 | $ 137.3 | $ 127 | $ 115.5 | $ 108.4 | $ 113.9 | $ 120.7 | $ 127.7 | $ 525.6 | $ 470.7 | $ 538.2 |
Cost of revenue, net | 102 | 93.3 | 85.7 | 80 | 79.3 | 72.6 | 85.1 | 75.2 | 361 | 312.2 | 294.5 |
Gross profit | 43.8 | 44 | 41.3 | 35.5 | 29.1 | 41.3 | 35.6 | 52.5 | 164.6 | 158.5 | 243.7 |
Net loss from continuing operations | (145.2) | (66.5) | (54.3) | (75.3) | (44.2) | (56.2) | (57.9) | (39.3) | (341.3) | (197.6) | (118.5) |
Net (loss) income from discontinued operations | (2.4) | (41.6) | (28.4) | (108.8) | 5.3 | (3.7) | 3.9 | 1.5 | (181.2) | 7 | (256.6) |
Net loss | (147.6) | (108.1) | (82.7) | (184.1) | (38.9) | (59.9) | (54) | (37.8) | (522.5) | (190.6) | (375.1) |
Net income from discontinued operations attributable to noncontrolling interest | 0 | 0.8 | 0.3 | 0.3 | 0.6 | 0.2 | 0.3 | 0 | 1.4 | 1.1 | 0 |
Net loss attributable to controlling interest | $ (147.6) | $ (108.9) | $ (83) | $ (184.4) | $ (39.5) | $ (60.1) | $ (54.3) | $ (37.8) | $ (523.9) | $ (191.7) | $ (375.1) |
Basic and diluted loss per share | |||||||||||
Continuing operations attributable to controlling interest - basic (USD per share) | $ (1.26) | $ (0.59) | $ (0.49) | $ (0.69) | $ (0.41) | $ (0.52) | $ (0.54) | $ (0.37) | $ (3.04) | $ (1.83) | $ (1.14) |
Continuing operations attributable to controlling interest - diluted (USD per share) | (1.26) | (0.59) | (0.49) | (0.69) | (0.41) | (0.52) | (0.54) | (0.37) | (3.04) | (1.83) | (1.14) |
Net loss attributable to controlling interest - basic (USD per share) | (1.28) | (0.96) | (0.75) | (1.68) | (0.36) | (0.56) | (0.50) | (0.35) | (4.66) | (1.78) | (3.62) |
Net loss attributable to controlling interest - diluted (USD per share) | $ (1.28) | $ (0.96) | $ (0.75) | $ (1.68) | $ (0.36) | $ (0.56) | $ (0.50) | $ (0.35) | $ (4.66) | $ (1.78) | $ (3.62) |