WOLFSPEED, INC., 10-Q filed on 1/26/2023
Quarterly Report
v3.22.4
Cover Page - shares
 6 Months Ended
Dec. 25, 2022
Jan. 20, 2023
Cover [Abstract]    
Document Type 10-Q  
Document Quarterly Report true  
Document Period End Date Dec. 25, 2022  
Document Transition Report false  
Entity File Number 001-40863  
Entity Registrant Name WOLFSPEED, 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, $0.00125 par value  
Trading Symbol WOLF  
Security Exchange Name NYSE  
Entity Current Reporting Status Yes  
Entity Interactive Data Current Yes  
Entity Filer Category Large Accelerated Filer  
Entity Small Business false  
Entity Emerging Growth Company false  
Entity Shell Company false  
Entity Common Stock, Shares Outstanding   124,416,688
Entity Central Index Key 0000895419  
Current Fiscal Year End Date --06-25  
Document Fiscal Year Focus 2023  
Document Fiscal Period Focus Q2  
Amendment Flag false  
v3.22.4
UNAUDITED CONSOLIDATED BALANCE SHEETS - USD ($)
$ in Millions
Dec. 25, 2022
Jun. 26, 2022
Current assets:    
Cash and cash equivalents $ 1,085.1 $ 449.5
Short-term investments 1,399.3 749.3
Total cash, cash equivalents and short-term investments 2,484.4 1,198.8
Accounts receivable, net 169.3 150.2
Inventories 266.6 227.0
Income taxes receivable 1.0 1.3
Prepaid expenses 28.0 32.1
Other current assets 133.4 151.4
Current assets held for sale 1.6 1.6
Total current assets 3,084.3 1,762.4
Property and equipment, net 1,649.6 1,481.1
Goodwill 359.2 359.2
Intangible assets, net 120.0 125.4
Long-term receivables 2.9 104.7
Deferred tax assets 1.0 1.0
Other assets 125.9 83.7
Total assets 5,342.9 3,917.5
Current liabilities:    
Accounts payable and accrued expenses 389.1 307.7
Accrued contract liabilities 34.8 37.0
Income taxes payable 9.4 11.6
Finance lease liabilities 0.5 0.5
Other current liabilities 26.2 31.7
Total current liabilities 460.0 388.5
Long-term liabilities:    
Convertible notes, net 3,021.0 1,021.6
Deferred tax liabilities 3.5 3.2
Finance lease liabilities - long-term 9.4 9.6
Other long-term liabilities 68.8 55.3
Total long-term liabilities 3,102.7 1,089.7
Commitments and contingencies
Shareholders’ equity:    
Preferred stock, par value $0.01; 3,000 shares authorized at December 25, 2022 and June 26, 2022; none issued and outstanding 0.0 0.0
Common stock, par value $0.00125; 200,000 shares authorized at December 25, 2022 and June 26, 2022; 124,413 and 123,795 shares issued and outstanding at December 25, 2022 and June 26, 2022, respectively 0.2 0.2
Additional paid-in-capital 3,660.0 4,228.4
Accumulated other comprehensive loss (28.6) (25.3)
Accumulated deficit (1,851.4) (1,764.0)
Total shareholders’ equity 1,780.2 2,439.3
Total liabilities and shareholders’ equity $ 5,342.9 $ 3,917.5
v3.22.4
UNAUDITED CONSOLIDATED BALANCE SHEETS (Parenthetical) - $ / shares
Dec. 25, 2022
Jun. 26, 2022
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 (in shares) 124,413,000 123,795,000
Common stock outstanding (shares) 124,413,000 123,795,000
v3.22.4
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($)
shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Dec. 25, 2022
Dec. 26, 2021
Dec. 25, 2022
Dec. 26, 2021
Income Statement [Abstract]        
Revenue, net $ 216.1 $ 173.1 $ 457.4 $ 329.7
Cost of revenue, net 149.2 116.1 310.6 223.3
Gross profit 66.9 57.0 146.8 106.4
Operating expenses:        
Research and development 57.0 50.2 112.2 100.1
Sales, general and administrative 55.7 48.0 110.7 97.0
Amortization or impairment of acquisition-related intangibles 2.8 3.6 5.7 7.2
Loss on disposal or impairment of other assets 0.1 0.5 0.2 0.3
Other operating expense 42.6 15.6 85.0 28.4
Operating loss (91.3) (60.9) (167.0) (126.6)
Non-operating (income) expense, net (0.8) 27.8 (50.5) 31.9
Loss before income taxes (90.5) (88.7) (116.5) (158.5)
Income tax expense 0.4 8.0 0.6 8.3
Net loss $ (90.9) $ (96.7) $ (117.1) $ (166.8)
Basic and diluted loss per share        
Net loss, basic (USD per share) $ (0.73) $ (0.82) $ (0.94) $ (1.42)
Net loss, diluted (USD per share) $ (0.73) $ (0.82) $ (0.94) $ (1.42)
Weighted average shares - basic (shares) 124,344 117,218 124,190 117,068
Weighted average shares - diluted (shares) 124,344 117,218 124,190 117,068
v3.22.4
UNAUDITED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 25, 2022
Sep. 25, 2022
Dec. 26, 2021
Sep. 26, 2021
Dec. 25, 2022
Dec. 26, 2021
Statement of Comprehensive Income [Abstract]            
Net loss $ (90.9) $ (26.2) $ (96.7) $ (70.1) $ (117.1) $ (166.8)
Other comprehensive loss:            
Net unrealized gain (loss) on available-for-sale securities 3.7 (7.0) (3.6) (0.8) (3.3) (4.4)
Comprehensive loss $ (87.2) $ (33.2) $ (100.3) $ (70.9) $ (120.4) $ (171.2)
v3.22.4
UNAUDITED CONSOLIDATED STATEMENTS OF SHAREHOLDERS' EQUITY - USD ($)
$ in Millions
Total
Cumulative Effect, Period of Adoption, Adjustment
Common Stock
Additional Paid-in Capital
Additional Paid-in Capital
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Deficit
Accumulated Deficit
Cumulative Effect, Period of Adoption, Adjustment
Accumulated Other Comprehensive Income
Balance at beginning of period (in shares) at Jun. 27, 2021     115,691,000          
Balance at beginning of period at Jun. 27, 2021 $ 2,116.5   $ 0.1 $ 3,676.8   $ (1,563.1)   $ 2.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net loss (70.1)         (70.1)    
Unrealized loss on available-for-sale securities (0.8)             (0.8)
Comprehensive loss (70.9)              
Tax withholding on vested equity awards (22.5)     (22.5)        
Stock-based compensation 15.6     15.6        
Exercise of stock options and issuance of shares (in shares)     495,000          
Exercise of stock options and issuance of shares 0.7     0.7        
Balance at end of period (in shares) at Sep. 26, 2021     116,186,000          
Balance at end of period at Sep. 26, 2021 2,039.4   $ 0.1 3,670.6   (1,633.2)   1.9
Balance at beginning of period (in shares) at Jun. 27, 2021     115,691,000          
Balance at beginning of period at Jun. 27, 2021 2,116.5   $ 0.1 3,676.8   (1,563.1)   2.7
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net loss (166.8)              
Unrealized loss on available-for-sale securities (4.4)              
Comprehensive loss (171.2)              
Balance at end of period (in shares) at Dec. 26, 2021     123,570,000          
Balance at end of period at Dec. 26, 2021 2,378.9   $ 0.2 4,110.3   (1,729.9)   (1.7)
Balance at beginning of period (in shares) at Jun. 27, 2021     115,691,000          
Balance at beginning of period at Jun. 27, 2021 $ 2,116.5   $ 0.1 3,676.8   (1,563.1)   2.7
Balance at end of period (in shares) at Jun. 26, 2022 123,795,000   123,795,000          
Balance at end of period at Jun. 26, 2022 $ 2,439.3 $ (303.3) $ 0.2 4,228.4 $ (333.0) (1,764.0) $ 29.7 (25.3)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Adoption of ASU 2020-06 [Extensible Enumeration] Adoption of ASU 2020-06              
Balance at beginning of period (in shares) at Sep. 26, 2021     116,186,000          
Balance at beginning of period at Sep. 26, 2021 $ 2,039.4   $ 0.1 3,670.6   (1,633.2)   1.9
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net loss (96.7)         (96.7)    
Unrealized loss on available-for-sale securities (3.6)             (3.6)
Comprehensive loss (100.3)              
Tax withholding on vested equity awards (2.8)     (2.8)        
Stock-based compensation 15.7     15.7        
Exercise of stock options and issuance of shares (in shares)     258,000          
Exercise of stock options and issuance of shares 10.7     10.7        
Issuance of shares related to the extinguishment of convertible notes due September 1, 2023 (in shares)     7,126,000          
Issuance of shares related to the extinguishment of convertible notes due September 1, 2023 416.2   $ 0.1 416.1        
Balance at end of period (in shares) at Dec. 26, 2021     123,570,000          
Balance at end of period at Dec. 26, 2021 $ 2,378.9   $ 0.2 4,110.3   (1,729.9)   (1.7)
Balance at beginning of period (in shares) at Jun. 26, 2022 123,795,000   123,795,000          
Balance at beginning of period at Jun. 26, 2022 $ 2,439.3 (303.3) $ 0.2 4,228.4 (333.0) (1,764.0) 29.7 (25.3)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net loss (26.2)         (26.2)    
Unrealized loss on available-for-sale securities (7.0)             (7.0)
Comprehensive loss (33.2)              
Tax withholding on vested equity awards (16.9)     (16.9)        
Stock-based compensation 23.2     23.2        
Exercise of stock options and issuance of shares (in shares)     415,000          
Exercise of stock options and issuance of shares 0.5     0.5        
Balance at end of period (in shares) at Sep. 25, 2022     124,210,000          
Balance at end of period at Sep. 25, 2022 $ 2,109.6   $ 0.2 3,902.2   (1,760.5)   (32.3)
Balance at beginning of period (in shares) at Jun. 26, 2022 123,795,000   123,795,000          
Balance at beginning of period at Jun. 26, 2022 $ 2,439.3 $ (303.3) $ 0.2 4,228.4 $ (333.0) (1,764.0) $ 29.7 (25.3)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net loss (117.1)              
Unrealized loss on available-for-sale securities (3.3)              
Comprehensive loss $ (120.4)              
Balance at end of period (in shares) at Dec. 25, 2022 124,413,000   124,413,000          
Balance at end of period at Dec. 25, 2022 $ 1,780.2   $ 0.2 3,660.0   (1,851.4)   (28.6)
Balance at beginning of period (in shares) at Sep. 25, 2022     124,210,000          
Balance at beginning of period at Sep. 25, 2022 2,109.6   $ 0.2 3,902.2   (1,760.5)   (32.3)
Increase (Decrease) in Stockholders' Equity [Roll Forward]                
Net loss (90.9)         (90.9)    
Unrealized loss on available-for-sale securities 3.7             3.7
Comprehensive loss (87.2)              
Tax withholding on vested equity awards (0.4)     (0.4)        
Stock-based compensation 21.4     21.4        
Exercise of stock options and issuance of shares (in shares)     203,000          
Exercise of stock options and issuance of shares 10.7     10.7        
Capped call transactions related to the issuance of convertible notes due December 1, 2029 $ (273.9)     (273.9)        
Balance at end of period (in shares) at Dec. 25, 2022 124,413,000   124,413,000          
Balance at end of period at Dec. 25, 2022 $ 1,780.2   $ 0.2 $ 3,660.0   $ (1,851.4)   $ (28.6)
v3.22.4
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended 21 Months Ended
Dec. 25, 2022
Sep. 25, 2022
Dec. 26, 2021
Sep. 26, 2021
Dec. 25, 2022
Dec. 26, 2021
Dec. 25, 2022
Operating activities:              
Net loss $ (90.9) $ (26.2) $ (96.7) $ (70.1) $ (117.1) $ (166.8)  
Adjustments to reconcile net loss to cash used in operating activities:              
Depreciation and amortization         77.1 67.5  
Amortization of debt issuance costs and discount, net of non-cash capitalized interest         2.9 9.0  
Loss on extinguishment of debt 0.0   24.8   0.0 24.8  
Stock-based compensation         43.2 30.0  
Loss on disposal or impairment of long-lived assets, including loss on disposal portion of factory optimization and start-up costs         2.0 1.6  
Amortization of premium/discount on investments         2.2 3.2  
Realized gain on sale of investments 0.0   (0.1)   0.0 (0.3)  
Deferred income taxes         0.3 0.4  
Changes in operating assets and liabilities:              
Accounts receivable, net         (19.1) (14.1)  
Inventories         (38.2) (41.0)  
Prepaid expenses and other assets         (1.8) (5.7)  
Accounts payable, trade         4.2 2.8  
Accrued salaries and wages and other liabilities         (33.2) (13.3)  
Accrued contract liabilities         (2.2) 6.9  
Cash used in operating activities         (79.7) (95.0)  
Investing activities:              
Purchases of property and equipment         (237.8) (401.6)  
Purchases of patent and licensing rights         (2.9) (2.6)  
Proceeds from sale of property and equipment, including insurance proceeds         1.7 2.7  
Purchases of short-term investments         (814.1) (29.8)  
Proceeds from maturities of short-term investments         115.5 107.8  
Proceeds from sale of short-term investments         43.1 189.2  
Reimbursement of property and equipment purchases from long-term incentive agreement         70.7 50.8 $ 220.4
Proceeds from sale of business resulting from the receipt of transaction related note receivable         101.8 0.0  
Cash used in investing activities         (722.0) (83.5)  
Financing activities:              
Proceeds from long-term debt borrowings         0.0 20.0  
Payments on long-term debt borrowings, including finance lease obligations         (0.3) (20.2)  
Proceeds from issuance of common stock         11.2 11.5  
Tax withholding on vested equity awards         (17.3) (25.3)  
Proceeds from convertible notes         1,750.0 0.0  
Payments of debt issuance costs         (31.4) 0.0  
Cash paid for capped call transactions         (273.9) 0.0  
Commitment fees on long-term incentive agreement         (1.0) (1.0)  
Cash provided by (used in) financing activities         1,437.3 (15.0)  
Effects of foreign exchange changes on cash and cash equivalents         0.0 (0.1)  
Net change in cash and cash equivalents         635.6 (193.6)  
Cash and cash equivalents, beginning of period   $ 449.5   $ 379.0 449.5 379.0  
Cash and cash equivalents, end of period $ 1,085.1   $ 185.4   $ 1,085.1 $ 185.4 $ 1,085.1
v3.22.4
Basis of Presentation and New Accounting Standards
 6 Months Ended
Dec. 25, 2022
Accounting Policies [Abstract]  
Basis of Presentation and New Accounting Standards Basis of Presentation and New Accounting Standards
Overview
Wolfspeed, 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 product families include Silicon Carbide and GaN materials, power devices and RF devices targeted for various applications such as electric vehicles, fast charging, 5G, renewable energy and storage, and aerospace and defense.
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.
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 recently opened its Silicon Carbide device fabrication facility in New York. The Company operates research and development facilities in North Carolina, California, Arkansas, Arizona and New York.
Wolfspeed, Inc. is a North Carolina corporation established in 1987, and its headquarters are in Durham, North Carolina.
Basis of Presentation
The consolidated financial statements presented herein have been prepared by the Company and have not been audited. In the opinion of management, all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations, comprehensive loss, shareholders' equity and cash flows at December 25, 2022, and for all periods presented, have been made. All material intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 26, 2022 has been derived from the audited financial statements as of that date.
Certain prior period amounts in the accompanying consolidated financial statements and notes have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net loss or shareholders’ equity.
These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 26, 2022 (fiscal 2022) (the 2022 Form 10-K). The results of operations for the three and six months ended December 25, 2022 are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 25, 2023 (fiscal 2023).
Recently Adopted Accounting Pronouncements
Convertible Debt Instruments
In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 adopted this standard on June 27, 2022, the first day of its 2023 fiscal year, under the modified retrospective approach. The adoption resulted in (i) a reduction of additional paid in capital by $333.0 million for the recombination of the equity conversion component of the convertible notes outstanding, which was initially separated and recorded in equity, (ii) an increase in the cumulative convertible note carrying value of $277.9 million as a result of removing previously recorded debt discounts, (iii) a decrease in property, plant and equipment for previously capitalized non-cash interest of $25.4 million and (iv) a decrease to beginning accumulated deficit as of June 27, 2022 of $29.7 million to recognize the cumulative gain on adoption. The Company did not recognize a discrete tax impact related to the opening deferred tax balances as of June 27, 2022 due to a full U.S. valuation allowance.
Government Assistance
In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance. This standard will require entities to provide annual disclosures regarding government assistance. More specifically, the amendments in the standard improve financial reporting by requiring disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions; (2) the accounting for those transactions; and (3) the effect of those transactions on an entity's financial statements. An entity can apply the amendments prospectively or retrospectively. The Company adopted this standard on June 27, 2022 and will apply the amendments prospectively. The required disclosures will be reflected in the Company’s Annual Report on Form 10-K for the fiscal year ending June 25, 2023.
Accounting Pronouncements Pending Adoption
None.
v3.22.4
Discontinued Operations
 6 Months Ended
Dec. 25, 2022
Discontinued Operations and Disposal Groups [Abstract]  
Discontinued Operations 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 subsidiary CreeLED, Inc. (CreeLED and collectively with SGH, SMART) (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 former 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 Company Limited., 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 former 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 an unsecured promissory note (the Earnout Note), and (iv) the assumption of certain liabilities. The Purchase Price Note had a maturity date of August 15, 2023, and as explained further below, was prepaid by SGH in full pursuant to its terms, along with outstanding accrued and unpaid interest as of the payment date, in the third quarter of fiscal 2022. The Earnout Note was issued by CreeLED in the fourth quarter of 2022, had a maturity date of March 27, 2025 and as explained further below, was prepaid by CreeLED in full pursuant to its terms, in connection with the forgiveness by the Company of outstanding accrued and unpaid interest as of the payment date, in the first quarter of fiscal 2023. In fiscal 2021, 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 and Fabrication Services Agreement (the 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.
In the third quarter of fiscal 2022, the Company received an early payment for the Purchase Price Note. The principal amount of $125.0 million was paid in full, along with outstanding accrued interest as of the payment date.
In the first quarter of fiscal 2023, the Company received an early payment for the Earnout Note. The principal amount of $101.8 million was paid in full and the Company agreed to forgo payment by CreeLED of the outstanding accrued interest as of the payment date.
For the three and six months ended December 25, 2022, the Company recognized $0.9 million and $1.8 million in administrative fees related to the LED RELA, respectively, of which $0.3 million is included in accounts receivable, net in the consolidated balance sheet as of December 25, 2022. For the three and six months ended December 26, 2021, the Company recognized $0.9 million and $1.8 million in administrative fees related to the LED RELA, respectively. Fees related to the LED RELA were recorded as lease income, see Note 4, "Leases."
For the three and six months ended December 25, 2022, the Company recognized $1.8 million and $3.7 million in administrative fees related to the LED TSA, respectively, of which $0.6 million is included in accounts receivable, net in the consolidated balance sheet as of December 25, 2022. For the three and six months ended December 26, 2021, the Company recognized $2.4 million and $5.3 million in administrative fees related to the LED TSA, respectively. 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, none of which was outstanding as of December 25, 2022.
For the three and six months ended December 25, 2022, the Company recognized a net loss of $2.6 million and $2.5 million, respectively, in non-operating income, net related to the Wafer Supply Agreement, of which a receivable of $1.6 million is included in other assets in the consolidated balance sheet as of December 25, 2022. For the three and six months ended December 26, 2021, the Company recognized a net loss of $0.1 million and $0.9 million, respectively, in non-operating income, net related to the Wafer Supply Agreement.
v3.22.4
Revenue Recognition
 6 Months Ended
Dec. 25, 2022
Revenue from Contract with Customer [Abstract]  
Revenue Recognition Revenue Recognition
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 $45.6 million as of December 25, 2022 and $47.8 million as of June 26, 2022. The decrease was primarily due to decreases in ship and debit reserves and product exchange reserves. Contract liabilities are recorded within accrued contract liabilities and other long-term liabilities on the consolidated balance sheets.
For the three and six months ended December 25, 2022, the Company did not recognize revenue that was included in contract liabilities as of June 26, 2022.
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:
 Three months endedSix months ended
 December 25, 2022December 26, 2021December 25, 2022December 26, 2021
(in millions of U.S. Dollars)Revenue% of RevenueRevenue% of RevenueRevenue% of RevenueRevenue% of Revenue
Europe$63.6 29.4 %$61.7 35.6 %$139.3 30.5 %$119.8 36.3 %
China52.0 24.1 %49.7 28.7 %118.0 25.8 %92.6 28.1 %
United States53.3 24.7 %32.7 18.9 %103.7 22.7 %58.7 17.8 %
Asia Pacific (excluding China)46.1 21.3 %28.5 16.5 %93.9 20.5 %57.9 17.6 %
Other1.1 0.5 %0.5 0.3 %2.5 0.5 %0.7 0.2 %
Total$216.1 $173.1 $457.4 $329.7 
v3.22.4
Leases
 6 Months Ended
Dec. 25, 2022
Leases [Abstract]  
Leases Leases
The Company primarily leases manufacturing and office spaces. 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.
The Company's finance lease obligations primarily relate to contract manufacturing space in Malaysia and a 49-year ground lease on the Company's 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:December 25, 2022June 26, 2022
Right-of-use asset (1)
$58.1 $48.5 
Current lease liability (2)
5.3 4.6 
Non-current lease liability (3)
57.3 43.6 
Total operating lease liabilities$62.6 $48.2 
Finance Leases:
Finance lease assets (4)
$10.0 $10.3 
Current portion of finance lease liabilities0.5 0.5 
Finance lease liabilities, less current portion9.4 9.6 
Total finance lease liabilities$9.9 $10.1 
(1) Within other assets on the consolidated balance sheets.
(2) Within other current liabilities on the consolidated balance sheets.
(3) Within other long-term liabilities on the consolidated balance sheets.
(4) Within property and equipment, net on the consolidated balance sheets.

Statement of Operations
Operating lease expense was $2.5 million and $4.7 million for the three and six months ended December 25, 2022, respectively, and $3.3 million and $4.8 million for the three and six months ended December 26, 2021, respectively.
Short-term lease expense, variable lease expense and sublease income were immaterial for the three and six months ended December 25, 2022 and December 26, 2021.
Finance lease amortization was $0.2 million and $0.4 million and interest expense was less than $0.1 million and $0.1 million for the three and six months ended December 25, 2022, respectively. Finance lease amortization was $0.3 million and $0.7 million and interest expense was $0.1 million and $0.2 million for the three and six months ended December 26, 2021, respectively.
Cash Flows
Cash flow information consisted of the following (1):
Six months ended
(in millions of U.S. Dollars)December 25, 2022December 26, 2021
Cash (used in) provided by operating activities:
Cash paid for operating leases($2.7)($4.2)
Cash received from tenant improvement allowance on operating lease3.1 — 
Cash paid for interest portion of financing leases(0.1)(0.1)
Cash used in financing activities:
Cash paid for principal portion of finance leases(0.3)(0.2)
(1) See Note 5, "Financial Statement Details," for non-cash activities related to leases.
Lease Liability Maturities
Maturities of operating and finance lease liabilities as of December 25, 2022 were as follows (in millions of U.S. Dollars):
Fiscal Year EndingOperating LeasesFinance LeasesTotal
June 25, 2023 (remainder of fiscal 2023)$3.4 $0.4 $3.8 
June 30, 20249.2 0.7 9.9 
June 29, 20259.9 0.7 10.6 
June 28, 20269.7 0.7 10.4 
June 27, 20278.4 0.4 8.8 
Thereafter67.1 14.2 81.3 
Total lease payments107.7 17.1 124.8 
Future tenant improvement allowances(18.5)— (18.5)
Imputed lease interest(26.6)(7.2)(33.8)
Total lease liabilities$62.6 $9.9 $72.5 
Supplemental Disclosures
Operating LeasesFinance Leases
Weighted average remaining lease term (in months) (1)
134556
Weighted average discount rate (2)
4.46 %2.68 %
(1) Weighted average remaining lease term of finance leases excluding the 49-year ground lease is 47 months.
(2) Weighted average discount rate of finance leases excluding the 49-year ground lease is 3.49%.
Lease Income
As mentioned in Note 2, "Discontinued Operations", on March 1, 2021 and in connection with the sale of its LED Business, 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 26, 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 $0.9 million and $1.8 million for the three and six months ended December 25, 2022, respectively. The Company recognized lease income of $0.9 million and $1.8 million for the three and six months ended December 26, 2021, respectively.
The Company did not recognize any variable lease income for the three and six months ended December 25, 2022 and December 26, 2021.
Future minimum rental income relating to the LED RELA is $0.6 million for the remainder of fiscal 2023.
Leases Leases
The Company primarily leases manufacturing and office spaces. 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.
The Company's finance lease obligations primarily relate to contract manufacturing space in Malaysia and a 49-year ground lease on the Company's 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:December 25, 2022June 26, 2022
Right-of-use asset (1)
$58.1 $48.5 
Current lease liability (2)
5.3 4.6 
Non-current lease liability (3)
57.3 43.6 
Total operating lease liabilities$62.6 $48.2 
Finance Leases:
Finance lease assets (4)
$10.0 $10.3 
Current portion of finance lease liabilities0.5 0.5 
Finance lease liabilities, less current portion9.4 9.6 
Total finance lease liabilities$9.9 $10.1 
(1) Within other assets on the consolidated balance sheets.
(2) Within other current liabilities on the consolidated balance sheets.
(3) Within other long-term liabilities on the consolidated balance sheets.
(4) Within property and equipment, net on the consolidated balance sheets.

Statement of Operations
Operating lease expense was $2.5 million and $4.7 million for the three and six months ended December 25, 2022, respectively, and $3.3 million and $4.8 million for the three and six months ended December 26, 2021, respectively.
Short-term lease expense, variable lease expense and sublease income were immaterial for the three and six months ended December 25, 2022 and December 26, 2021.
Finance lease amortization was $0.2 million and $0.4 million and interest expense was less than $0.1 million and $0.1 million for the three and six months ended December 25, 2022, respectively. Finance lease amortization was $0.3 million and $0.7 million and interest expense was $0.1 million and $0.2 million for the three and six months ended December 26, 2021, respectively.
Cash Flows
Cash flow information consisted of the following (1):
Six months ended
(in millions of U.S. Dollars)December 25, 2022December 26, 2021
Cash (used in) provided by operating activities:
Cash paid for operating leases($2.7)($4.2)
Cash received from tenant improvement allowance on operating lease3.1 — 
Cash paid for interest portion of financing leases(0.1)(0.1)
Cash used in financing activities:
Cash paid for principal portion of finance leases(0.3)(0.2)
(1) See Note 5, "Financial Statement Details," for non-cash activities related to leases.
Lease Liability Maturities
Maturities of operating and finance lease liabilities as of December 25, 2022 were as follows (in millions of U.S. Dollars):
Fiscal Year EndingOperating LeasesFinance LeasesTotal
June 25, 2023 (remainder of fiscal 2023)$3.4 $0.4 $3.8 
June 30, 20249.2 0.7 9.9 
June 29, 20259.9 0.7 10.6 
June 28, 20269.7 0.7 10.4 
June 27, 20278.4 0.4 8.8 
Thereafter67.1 14.2 81.3 
Total lease payments107.7 17.1 124.8 
Future tenant improvement allowances(18.5)— (18.5)
Imputed lease interest(26.6)(7.2)(33.8)
Total lease liabilities$62.6 $9.9 $72.5 
Supplemental Disclosures
Operating LeasesFinance Leases
Weighted average remaining lease term (in months) (1)
134556
Weighted average discount rate (2)
4.46 %2.68 %
(1) Weighted average remaining lease term of finance leases excluding the 49-year ground lease is 47 months.
(2) Weighted average discount rate of finance leases excluding the 49-year ground lease is 3.49%.
Lease Income
As mentioned in Note 2, "Discontinued Operations", on March 1, 2021 and in connection with the sale of its LED Business, 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 26, 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 $0.9 million and $1.8 million for the three and six months ended December 25, 2022, respectively. The Company recognized lease income of $0.9 million and $1.8 million for the three and six months ended December 26, 2021, respectively.
The Company did not recognize any variable lease income for the three and six months ended December 25, 2022 and December 26, 2021.
Future minimum rental income relating to the LED RELA is $0.6 million for the remainder of fiscal 2023.
Leases Leases
The Company primarily leases manufacturing and office spaces. 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.
The Company's finance lease obligations primarily relate to contract manufacturing space in Malaysia and a 49-year ground lease on the Company's 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:December 25, 2022June 26, 2022
Right-of-use asset (1)
$58.1 $48.5 
Current lease liability (2)
5.3 4.6 
Non-current lease liability (3)
57.3 43.6 
Total operating lease liabilities$62.6 $48.2 
Finance Leases:
Finance lease assets (4)
$10.0 $10.3 
Current portion of finance lease liabilities0.5 0.5 
Finance lease liabilities, less current portion9.4 9.6 
Total finance lease liabilities$9.9 $10.1 
(1) Within other assets on the consolidated balance sheets.
(2) Within other current liabilities on the consolidated balance sheets.
(3) Within other long-term liabilities on the consolidated balance sheets.
(4) Within property and equipment, net on the consolidated balance sheets.

Statement of Operations
Operating lease expense was $2.5 million and $4.7 million for the three and six months ended December 25, 2022, respectively, and $3.3 million and $4.8 million for the three and six months ended December 26, 2021, respectively.
Short-term lease expense, variable lease expense and sublease income were immaterial for the three and six months ended December 25, 2022 and December 26, 2021.
Finance lease amortization was $0.2 million and $0.4 million and interest expense was less than $0.1 million and $0.1 million for the three and six months ended December 25, 2022, respectively. Finance lease amortization was $0.3 million and $0.7 million and interest expense was $0.1 million and $0.2 million for the three and six months ended December 26, 2021, respectively.
Cash Flows
Cash flow information consisted of the following (1):
Six months ended
(in millions of U.S. Dollars)December 25, 2022December 26, 2021
Cash (used in) provided by operating activities:
Cash paid for operating leases($2.7)($4.2)
Cash received from tenant improvement allowance on operating lease3.1 — 
Cash paid for interest portion of financing leases(0.1)(0.1)
Cash used in financing activities:
Cash paid for principal portion of finance leases(0.3)(0.2)
(1) See Note 5, "Financial Statement Details," for non-cash activities related to leases.
Lease Liability Maturities
Maturities of operating and finance lease liabilities as of December 25, 2022 were as follows (in millions of U.S. Dollars):
Fiscal Year EndingOperating LeasesFinance LeasesTotal
June 25, 2023 (remainder of fiscal 2023)$3.4 $0.4 $3.8 
June 30, 20249.2 0.7 9.9 
June 29, 20259.9 0.7 10.6 
June 28, 20269.7 0.7 10.4 
June 27, 20278.4 0.4 8.8 
Thereafter67.1 14.2 81.3 
Total lease payments107.7 17.1 124.8 
Future tenant improvement allowances(18.5)— (18.5)
Imputed lease interest(26.6)(7.2)(33.8)
Total lease liabilities$62.6 $9.9 $72.5 
Supplemental Disclosures
Operating LeasesFinance Leases
Weighted average remaining lease term (in months) (1)
134556
Weighted average discount rate (2)
4.46 %2.68 %
(1) Weighted average remaining lease term of finance leases excluding the 49-year ground lease is 47 months.
(2) Weighted average discount rate of finance leases excluding the 49-year ground lease is 3.49%.
Lease Income
As mentioned in Note 2, "Discontinued Operations", on March 1, 2021 and in connection with the sale of its LED Business, 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 26, 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 $0.9 million and $1.8 million for the three and six months ended December 25, 2022, respectively. The Company recognized lease income of $0.9 million and $1.8 million for the three and six months ended December 26, 2021, respectively.
The Company did not recognize any variable lease income for the three and six months ended December 25, 2022 and December 26, 2021.
Future minimum rental income relating to the LED RELA is $0.6 million for the remainder of fiscal 2023.
v3.22.4
Financial Statement Details
 6 Months Ended
Dec. 25, 2022
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)December 25, 2022June 26, 2022
Billed trade receivables$166.6 $148.0 
Unbilled contract receivables2.6 2.7 
Royalties0.8 0.7 
170.0 151.4 
Allowance for bad debts(0.7)(1.2)
Accounts receivable, net$169.3 $150.2 
    
Changes in the Company’s allowance for bad debts were as follows:
(in millions of U.S. Dollars)December 25, 2022
Balance at beginning of period$1.2 
Current period provision change(0.5)
Write-offs, net of recoveries— 
Balance at end of period$0.7 
Inventories
Inventories consisted of the following:
(in millions of U.S. Dollars)December 25, 2022June 26, 2022
Raw material$84.0 $60.2 
Work-in-progress146.8 135.9 
Finished goods35.8 30.9 
Inventories$266.6 $227.0 
Other Current Assets
Other current assets consisted of the following:
(in millions of U.S. Dollars)December 25, 2022June 26, 2022
Reimbursement receivable on long-term incentive agreement$111.6 $132.5 
Accrued interest receivable11.2 5.9 
Receivable on Wafer Supply Agreement1.6 2.7 
Inventory related to Wafer Supply Agreement2.8 3.9 
Deferred product costs0.3 2.5 
Other5.9 3.9 
Other current assets$133.4 $151.4 
Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses consisted of the following:
(in millions of U.S. Dollars)December 25, 2022June 26, 2022
Accounts payable, trade$132.2 $57.8 
Accrued salaries and wages54.9 80.6 
Accrued property and equipment156.8 132.1 
Accrued expenses and other45.2 37.2 
Accounts payable and accrued expenses$389.1 $307.7 
Other Operating Expense
Other operating expense consisted of the following:
Three months endedSix months ended
(in millions of U.S. Dollars)December 25, 2022December 26, 2021December 25, 2022December 26, 2021
Factory start-up costs37.6 11.0 76.0 19.6 
Project, transformation and transaction costs4.5 2.5 7.5 4.1 
Restructuring costs0.2 2.1 0.2 4.7 
Non-restructuring related executive severance0.3 — 1.3 — 
Other operating expense$42.6 $15.6 $85.0 $28.4 
Accumulated Other Comprehensive Loss, net of taxes
Accumulated other comprehensive loss, net of taxes, consisted of $28.6 million and $25.3 million of net unrealized losses on available-for-sale securities as of December 25, 2022 and June 26, 2022, respectively. Amounts for both periods include a $2.4 million loss related to tax on unrealized loss on available-for-sale securities.
Reclassifications Out of Accumulated Other Comprehensive Loss
Reclassifications out of accumulated other comprehensive loss was a loss of less than $0.1 million for both the three and six months ended December 25, 2022 and a $0.1 million and $0.3 million gain for the three and six months ended December 26, 2021, respectively. Amounts were reclassified to non-operating (income) expense, net on the consolidated statements of operations.
Non-Operating (Income) Expense, net
The following table summarizes the components of non-operating (income) expense, net:
Three months endedSix months ended
(in millions of U.S. Dollars)December 25, 2022December 26, 2021December 25, 2022December 26, 2021
Gain on arbitration proceedings (1)
(0.9)— (50.3)— 
Loss on debt extinguishment (2)
— 24.8 — 24.8 
Interest income(11.6)(2.4)(15.9)(5.0)
Interest expense, net of capitalized interest7.8 5.3 12.6 12.0 
Loss on Wafer Supply Agreement2.6 0.1 2.5 0.9 
Gain on sale of investments, net— (0.1)— (0.3)
Other, net1.3 0.1 0.6 (0.5)
Non-operating (income) expense, net($0.8)$27.8 ($50.5)$31.9 
(1) In the first quarter of fiscal 2023, the Company received an arbitration award in relation to a former customer failing to fulfill contractual obligations to purchase a certain amount of product over a period of time. In the second quarter of fiscal 2023, a final payment, net of legal fees, was received. The arbitration award is recognized as non-operating income, net of legal fees incurred.
(2) As discussed further in Note 9, "Long-term Debt," in the second quarter of fiscal 2022, all outstanding 2023 Notes (as defined below) were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in shares, with fractional shares paid in cash.
Statements of Cash Flows - non-cash activities
Six months ended
(in millions of U.S. Dollars)December 25, 2022December 26, 2021
Lease asset and liability additions$12.7 $5.6 
Lease asset and liability modifications, net0.6 2.9 
Lease terminations— (0.2)
Settlement of 2023 Notes in shares of common stock (1)
— 416.1 
Decrease in property, plant and equipment from investment tax credit receivables24.3 — 
Decrease in property, plant and equipment from long-term incentive related receivables49.8 81.1 
(1) As discussed further in Note 9, "Long-term Debt," in the second quarter of fiscal 2022, all outstanding 2023 Notes were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in shares, with fractional shares paid in cash.
Accrued property and equipment as of December 25, 2022 and December 26, 2021 was $156.8 million and $135.7 million, respectively.
v3.22.4
Investments
 6 Months Ended
Dec. 25, 2022
Investments, Debt and Equity Securities [Abstract]  
Investments Investments
Short-term investments consisted of the following (in millions of U.S. Dollars):
 December 25, 2022
 Amortized CostGross Unrealized GainsGross Unrealized LossesCredit Loss AllowanceEstimated Fair Value
Corporate bonds$618.2 $0.1 ($20.2)$— $598.1 
U.S. treasury securities251.2 — (1.1)— 250.1 
Certificates of deposit196.9 — — — 196.9 
Municipal bonds180.6 0.1 (5.0)— 175.7 
Variable rate demand notes94.4 — — — 94.4 
Commercial paper64.0 — — — 64.0 
U.S. agency securities20.2 — (0.1)— 20.1 
Total short-term investments$1,425.5 $0.2 ($26.4)$— $1,399.3 
 June 26, 2022
 Amortized CostGross Unrealized GainsGross Unrealized LossesCredit Loss AllowanceEstimated Fair Value
Corporate bonds$465.8 $— ($17.8)$— $448.0 
Municipal bonds166.5 0.1 (4.4)— 162.2 
U.S. treasury securities66.5 — (0.7)— 65.8 
Variable rate demand notes69.4 — — — 69.4 
U.S. agency securities4.0 — (0.1)— 3.9 
Total short-term investments$772.2 $0.1 ($23.0)$— $749.3 
All short-term investments are classified as available-for-sale. The Company did not have any long-term investments as of December 25, 2022 and June 26, 2022.
The following tables present the gross unrealized losses and estimated fair value of the Company’s short-term investments, aggregated by investment type and the length of time that individual securities have been in a continuous unrealized loss position (in millions of U.S. Dollars):
December 25, 2022
Less than 12 MonthsGreater than 12 MonthsTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
Corporate bonds$361.0 ($12.1)$146.4 ($8.1)$507.4 ($20.2)
Municipal bonds108.5 (3.2)35.7 (1.8)144.2 (5.0)
U.S. treasury securities133.6 (1.1)— — 133.6 (1.1)
U.S. agency securities5.0 — 1.9 (0.1)6.9 (0.1)
Total$608.1 ($16.4)$184.0 ($10.0)$792.1 ($26.4)
Number of securities with an unrealized loss265 90 355 
June 26, 2022
Less than 12 MonthsGreater than 12 MonthsTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
Corporate bonds$431.1 ($17.4)$8.3 ($0.4)$439.4 ($17.8)
Municipal bonds150.0 (4.4)1.0 — 151.0 (4.4)
U.S. treasury securities65.8 (0.7)— — 65.8 (0.7)
U.S. agency securities3.9 (0.1)— — 3.9 (0.1)
Total$650.8 ($22.6)$9.3 ($0.4)$660.1 ($23.0)
Number of securities with an unrealized loss346 5 351 
Additionally, the Company held cash equivalent securities in unrealized loss positions as of December 25, 2022 and June 26, 2022. As of December 25, 2022, the Company held ten cash equivalent securities in unrealized loss positions with an aggregate fair value of $104.7 million and an aggregate unrealized loss of less than $0.1 million. As of June 26, 2022, the Company held six cash equivalent securities in unrealized loss positions with an aggregate fair value of $69.0 million and an aggregate unrealized loss of less than $0.1 million. All cash equivalents in unrealized loss positions as of December 25, 2022 and June 26, 2022 have been in unrealized loss positions for less than 12 months.
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 $11.2 million and $5.9 million as of December 25, 2022 and June 26, 2022, 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 during the three and six months ended December 25, 2022 and December 26, 2021.
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 (income) expense, 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 December 25, 2022 until the investments fully recover in market value. No allowance for credit losses was recorded as of December 25, 2022.
The contractual maturities of short-term investments as of December 25, 2022 were as follows:

 
(in millions of U.S. Dollars)Within One YearAfter One, Within Five YearsAfter Five, Within Ten YearsAfter Ten YearsTotal
Corporate bonds$298.0 $300.1 $— $— $598.1 
U.S. treasury securities196.8 53.3 — — 250.1 
Certificates of deposit196.9 — — — 196.9 
Municipal bonds66.1 109.6 — — 175.7 
Variable rate demand notes— — 14.7 79.7 94.4 
Commercial paper64.0 — — — 64.0 
U.S. agency securities15.1 5.0 — — 20.1 
Total short-term investments$836.9 $468.0 $14.7 $79.7 $1,399.3 
v3.22.4
Fair Value of Financial Instruments
 6 Months Ended
Dec. 25, 2022
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. Because 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 and short-term investments. As of December 25, 2022 and June 26, 2022, financial assets utilizing Level 1 inputs included U.S. treasury securities and money market funds. Financial assets utilizing Level 2 inputs included commercial paper, certificates of deposit, corporate bonds, municipal bonds, variable rate demand notes and U.S. agency securities. Level 2 assets are valued based on quoted prices in active markets for instruments that are similar or using a third-party pricing service’s consensus price, which is a weighted average price based on multiple sources. These sources determine prices utilizing market income models which factor in, where applicable, transactions of similar assets in active markets, transactions of identical assets in infrequent markets, interest rates, bond or credit default swap spreads and volatility. The Company did not have any financial assets requiring the use of Level 3 inputs as of December 25, 2022 and June 26, 2022.
The following table sets forth financial instruments carried at fair value within the U.S. GAAP hierarchy:
 December 25, 2022June 26, 2022
(in millions of U.S. Dollars)Level 1Level 2TotalLevel 1Level 2Total
Cash equivalents:
U.S. treasury securities$307.0 $— $307.0 $69.0 $— $69.0 
Money market funds253.5 — 253.5 115.9 — 115.9 
Commercial paper— 67.6 67.6 — 59.4 59.4 
Certificates of deposit— 38.8 38.8 — — — 
Corporate bonds— 8.4 8.4 — — — 
Municipal bonds— 1.0 1.0 — — — 
Total cash equivalents560.5 115.8 676.3 184.9 59.4 244.3 
Short-term investments:
Corporate bonds— 598.1 598.1 — 448.0 448.0 
U.S. treasury securities250.1 — 250.1 65.8 — 65.8 
Certificates of deposit— 196.9 196.9 — — — 
Municipal bonds— 175.7 175.7 — 162.2 162.2 
Variable rate demand notes— 94.4 94.4 — 69.4 69.4 
Commercial paper— 64.0 64.0 — — — 
U.S. agency securities— 20.1 20.1 — 3.9 3.9 
Total short-term investments250.1 1,149.2 1,399.3 65.8 683.5 749.3 
Total cash equivalents and short-term investments$810.6 $1,265.0 $2,075.6 $250.7 $742.9 $993.6 
v3.22.4
Goodwill and Intangible Assets
 6 Months Ended
Dec. 25, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Goodwill and Intangible Assets Goodwill and Intangible Assets
Goodwill
There were no changes to goodwill during the six months ended December 25, 2022.
Intangible Assets, net
The following table presents the components of intangible assets, net:
December 25, 2022June 26, 2022
(in millions of U.S. Dollars)GrossAccumulated AmortizationNetGrossAccumulated AmortizationNet
Customer relationships$96.8 ($34.3)$62.5 $96.8 ($31.2)$65.6 
Developed technology68.0 (36.2)31.8 68.0 (33.6)34.4 
Non-compete agreements12.2 (12.2)— 12.2 (12.2)— 
Acquisition related intangible assets177.0 (82.7)94.3 177.0 (77.0)100.0 
Patent and licensing rights64.1 (38.4)25.7 65.5 (40.1)25.4 
Total intangible assets$241.1 ($121.1)$120.0 $242.5 ($117.1)$125.4 
Total amortization of acquisition-related intangibles assets was $2.8 million and $5.7 million for the three and six months ended December 25, 2022, respectively, and $3.6 million and $7.2 million for the three and six months ended December 26, 2021, respectively.
Total amortization of patents and licensing rights was $1.3 million and $2.5 million for the three and six months ended December 25, 2022, respectively, and $1.5 million and $2.8 million for the three and six months ended December 26, 2021, respectively.
Total future amortization expense of intangible assets is estimated to be as follows:
(in millions of U.S. Dollars)

Fiscal Year Ending
Acquisition Related IntangiblesPatentsTotal
June 25, 2023 (remainder of fiscal 2023)$5.5 $2.3 $7.8 
June 30, 202410.4 4.1 14.5 
June 29, 202510.4 3.1 13.5 
June 28, 20269.3 2.4 11.7 
June 27, 20279.3 1.9 11.2 
Thereafter49.4 11.9 61.3 
Total future amortization expense$94.3 $25.7 $120.0 
v3.22.4
Long-term Debt
 6 Months Ended
Dec. 25, 2022
Debt Disclosure [Abstract]  
Long-term Debt Long-term Debt
Revolving Line of Credit
As of December 25, 2022, 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, 2026. 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 December 25, 2022, 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 three and six months ended December 25, 2022, the average interest rate was 0.00% due to no borrowings. As of December 25, 2022, the unused line fee on available borrowings is 25 basis points.
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 (collectively, the 2023 Notes). The total net proceeds from the 2023 Notes offering was approximately $562.1 million. As discussed further below, the Company repurchased approximately $150.2 million aggregate principal amount of the 2023 Notes using a portion of net proceeds from the sale of an additional convertible note offering (the 2026 Notes, as defined and explained below) in April 2020.
On December 8, 2021 (the Redemption Notice Date), the Company issued a notice (the Redemption Notice) to holders of the 2023 Notes calling all outstanding 2023 Notes for redemption. The Redemption Notice designated December 23, 2021 as the redemption date (the Redemption Date). On the Redemption Date, the Redemption Price (as defined below) would have become due and payable on each of the 2023 Notes to be redeemed, and interest thereon would cease to accrue. However, any 2023 Notes called for redemption would not be redeemed if such note was converted before the Redemption Date. The Redemption Price for the 2023 Notes called for redemption was an amount in cash equal to the principal amount of such note plus accrued and unpaid interest on such note to, but excluding, the Redemption Date, which equated to a Redemption Price of $1,002.72222 per $1,000 principal amount of 2023 Notes (the Redemption Price).
As of the Redemption Notice Date, the conversion rate of the 2023 Notes was 16.6745 shares of the Company's common stock per $1,000 principal amount of such notes. However, in accordance with the Indenture, dated as of August 24, 2018, between the Company and U.S. Bank National Association, as trustee, which governed the terms of the 2023 Notes, the conversion rate for 2023 Notes that were converted after the Redemption Notice Date was increased to 16.7769 shares of the Company's common stock per $1,000 principal amount of such notes. Before the Redemption Date, all outstanding 2023 Notes were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in approximately 7.1 million shares of the Company's common stock, with cash in lieu of any fractional shares. The fair value of shares issued upon conversion of all outstanding 2023 Notes was $788.0 million. The amount of cash paid for fractional shares was immaterial.
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 2026 Notes offering 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 business day period after any ten consecutive trading day period in which the trading price per $1.0 thousand principal amount of 2026 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of its common stock and the conversion rate on each such trading day; (3) if the Company calls such 2026 Notes for redemption, at any time prior to the close of business on the second business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after November 3, 2025 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2026 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company's election.
The Company used approximately $144.3 million of the net proceeds from the sale of the 2026 Notes in April 2020 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.
2028 Convertible Notes
On February 3, 2022, the Company sold $650.0 million aggregate principal amount of 0.25% convertible senior notes due February 15, 2028 to qualified institutional buyers pursuant to Rule 144A under the Securities Act and an additional $100.0 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (the 2028 Notes). The total net proceeds from the 2028 Notes offering was approximately $732.3 million.
The Company used approximately $108.2 million of the net proceeds from the 2028 Notes to fund the cost of entering into capped call transactions, as described below.
The conversion rate will initially be 7.8602 shares of common stock per one thousand dollars in principal amount of 2028 Notes (equivalent to an initial conversion price of approximately $127.22 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 2028 Notes in connection with such a corporate event, or who elects to convert any 2028 Notes called for redemption during the related redemption period in certain circumstances. The Company may not redeem the 2028 Notes prior to February 18, 2025. The Company may redeem for cash all or any portion of the 2028 Notes, at its option, on a redemption date occurring on or after February 18, 2025 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 2028 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 2028 Notes at a fundamental repurchase price equal to 100% of the principal amount of the 2028 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.
Holders may convert their 2028 Notes at their option at any time prior to the close of business on the business day immediately preceding August 16, 2027 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending March 31, 2022 (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 business day period after any ten consecutive trading day period in which the trading price per $1.0 thousand principal amount of 2028 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of its common stock and the conversion rate on each such trading day; (3) if the Company calls such 2028 Notes for redemption, at any time prior to the close of business on the second business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after August 16, 2027 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2028 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company's election.
Capped Call Transactions in relation to the 2028 Notes
On January 31, 2022, in connection with the pricing of the 2028 Notes, the Company entered into privately negotiated capped call transactions with certain of the initial purchasers or affiliates thereof (the 2028 Notes Capped Call Counterparties). In connection with the exercise by the initial purchasers of their option to purchase additional notes, the Company entered into additional privately negotiated capped call transactions (such transactions, collectively, the 2028 Notes Capped Call Transactions) with each of the 2028 Notes Capped Call Counterparties. The 2028 Notes Capped Call Transactions initially cover, subject to customary anti-dilution adjustments, the aggregate number of shares of the Company’s common stock that initially underlie the 2028 Notes. The 2028 Notes Capped Call Transactions are expected generally to reduce the potential dilutive effect on the common stock upon any conversion of 2028 Notes and/or offset any potential cash payments the Company is required to make in excess of the principal amount of converted 2028 Notes, as the case may be, with such reduction and/or offset subject to a cap which initially is $212.04 per share, representing a premium of 125% over the last reported sale price per share of our common stock on January 31, 2022, subject to certain adjustments under the terms of the 2028 Notes Capped Call Transactions.
The 2028 Notes Capped Call Transactions are separate transactions entered into by the Company with each of the 2028 Notes Capped Call Counterparties, are not part of the terms of the 2028 Notes, and do not affect any holder’s rights under the 2028 Notes. Holders of the 2028 Notes do not have any rights with respect to the 2028 Notes Capped Call Transactions.
2029 Convertible Notes
On November 21, 2022, the Company sold $1,525.0 million aggregate principal amount of 1.875% convertible senior notes due December 1, 2029 to qualified institutional buyers pursuant to Rule 144A under the Securities Act and an additional $225.0 million aggregate principal amount of such notes pursuant to the exercise in full of the over-allotment options of the underwriters (the 2029 Notes). The total net proceeds from the 2029 Notes offering was approximately $1,718.6 million.
The Company used approximately $273.9 million of the net proceeds from the 2029 Notes to fund the cost of entering into capped call transactions, as described below.
The conversion rate will initially be 8.4118 shares of common stock per one thousand dollars in principal amount of 2029 Notes (equivalent to an initial conversion price of approximately $118.88 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 2029 Notes in connection with such a corporate event, or who elects to convert any 2029 Notes called for redemption during the related redemption period in certain circumstances. The Company may not redeem the 2029 Notes prior to December 4, 2026. The Company may redeem for cash all or any portion of the 2029 Notes, at its option, on a redemption date occurring on or after December 4, 2026 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 2029 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 2029 Notes at a fundamental repurchase price equal to 100% of the principal amount of the 2029 Notes to be repurchased, plus accrued and unpaid interest to, but excluding, the fundamental change repurchase date.
Holders may convert their 2029 Notes at their option at any time prior to the close of business on the business day immediately preceding June 1, 2029 only under the following circumstances: (1) during any calendar quarter commencing after the calendar quarter ending March 31, 2023 (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 business day period after any ten consecutive trading day period in which the trading price per $1.0 thousand principal amount of 2029 Notes for each trading day of the measurement period was less than 98% of the product of the last reported sale price of its common stock and the conversion rate on each such trading day; (3) if the Company calls such 2029 Notes for redemption, at any time prior to the close of business on the second business day immediately preceding the redemption date; or (4) upon the occurrence of specified corporate events. On or after June 1, 2029 until the close of business on the second scheduled trading day immediately preceding the maturity date, holders may convert their 2029 Notes at any time, regardless of the foregoing circumstances. Upon conversion, the Company will pay or deliver cash, shares of its common stock, or a combination of cash and shares of its common stock, at the Company's election.
Capped Call Transactions in relation to the 2029 Notes
On November 16, 2022, in connection with the pricing of the 2029 Notes, the Company entered into privately negotiated capped call transactions with certain of the initial purchasers or their affiliates and another financial institution (the 2029 Notes Capped Call Counterparties). In connection with the exercise by the initial purchasers of their option to purchase additional notes, the Company entered into additional privately negotiated capped call transactions (such transactions, collectively, the 2029 Notes Capped Call Transactions) with each of the 2029 Notes Capped Call Counterparties. The 2029 Notes Capped Call Transactions initially cover, subject to customary anti-dilution adjustments, the aggregate number of shares of the Company’s common stock that initially underlie the 2029 Notes. The 2029 Notes Capped Call Transactions are expected generally to reduce the potential dilutive effect on the common stock upon any conversion of 2029 Notes and/or offset any potential cash payments the Company is required to make in excess of the principal amount of converted 2029 Notes, as the case may be, with such reduction and/or offset subject to a cap which initially is $202.538 per share, representing a premium of 130% over the last reported sale price per share of our common stock on November 16, 2022, subject to certain adjustments under the terms of the 2029 Notes Capped Call Transactions.
The 2029 Notes Capped Call Transactions are separate transactions entered into by the Company with each of the 2029 Notes Capped Call Counterparties, are not part of the terms of the 2029 Notes, and do not affect any holder’s rights under the 2029 Notes. Holders of the 2029 Notes do not have any rights with respect to the 2029 Notes Capped Call Transactions.
Accounting for 2023 Notes, 2026 Notes, 2028 Notes and 2029 Notes
In accounting for the issuance of the 2023 Notes, 2026 Notes and 2028 Notes, the Company separated such notes into liability and equity components. The carrying amount of the equity component representing the conversion option was $110.6 million, $145.4 million and $187.6 million for the 2023 Notes, 2026 Notes and 2028 Notes, respectively. The amounts were determined by deducting the fair value of the liability component from the par value of each of the 2023 Notes, 2026 Notes and 2028 Notes. Due to the partial extinguishment of the 2023 Notes in connection with the issuance of the 2026 Notes, the equity component of the 2023 Notes was reduced by $27.7 million during the fourth quarter of fiscal 2020.
As a result of the full conversion of all outstanding 2023 Notes, the Company remeasured the outstanding liability for the 2023 Notes using a market rate for debt without a conversion option (the Market Rate) as of the Redemption Notice Date. The Company performed a present value calculation using the Market Rate and determined the fair value of the debt as of the Redemption Notice Date was $416.1 million, $24.7 million higher than the carrying value of the 2023 Notes as of the Redemption Notice Date. As a result, the Company recorded a loss on extinguishment of $24.8 million, which included a $0.1 million loss on extinguishment expense related to third party fees. Additionally, the equity component of the 2023 Notes was reduced to zero.
Upon adoption of ASU 2020-06 on June 27, 2022, the first day of fiscal 2023, the unamortized discounts on the 2026 Notes and 2028 Notes were eliminated and the liability and equity components relating to the debt issuance costs for the 2026 Notes and 2028 Notes are now presented as a single liability.
Debt issuance costs in relation to the 2029 Notes were accounted for as a reduction of the principal balance and will be amortized over the term of the 2029 Notes.
The 2026 Notes, 2028 Notes and 2029 Notes (the Outstanding 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 Outstanding 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 Outstanding Notes is as follows:
(in millions of U.S. Dollars)December 25, 2022June 26, 2022
Principal$3,075.0 $1,325.0 
Unamortized discount and issuance costs(54.0)(303.4)
Net carrying amount$3,021.0 $1,021.6 
The net carrying amount of the equity component of the Outstanding Notes is as follows:
(in millions of U.S. Dollars)
December 25, 2022 (1)
June 26, 2022
Discount related to value of conversion option$— $341.1 
Debt issuance costs— (8.1)
Net carrying amount$— $333.0 
(1) As discussed above, the equity components of the 2026 Notes and 2028 Notes were eliminated upon adoption of ASU 2020-06 on June 27, 2022, the first day of fiscal 2023.
The interest expense, net recognized related to the Outstanding Notes is as follows:
Three months endedSix months ended
(in millions of U.S. Dollars)December 25, 2022December 26, 2021December 25, 2022December 26, 2021
Interest expense, net of capitalized interest$5.7 $0.8 $8.7 $1.9 
Amortization of discount and debt issuance costs, net of capitalized interest1.6 3.9 2.9 9.0 
Total interest expense, net$7.3 $4.7 $11.6 $10.9 
The Company did not capitalize interest expense for the three and six months ended December 25, 2022. For the three and six months ended December 26, 2021, the Company capitalized $2.6 million and $4.9 million of interest expense, respectively, and $5.8 million and $11.2 million of amortization of discount and issuance costs, respectively, in connection with the building of a new Silicon Carbide device fabrication facility in New York.
The last reported sale price of the Company's common stock was greater than or equal to 130% of the applicable conversion price for the 2026 Notes for at least 20 trading days in the 30 consecutive trading days ended on December 31, 2022. As a result, the 2026 Notes are convertible at the option of the holders through March 31, 2023.
As of December 25, 2022, the if-converted value of the 2026 Notes exceeded their respective principal amounts by $303.3 million.
The estimated fair value of the Outstanding Notes is $3.3 billion as of December 25, 2022, as determined by a Level 2 valuation.
v3.22.4
Loss Per Share
 6 Months Ended
Dec. 25, 2022
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:
 Three months endedSix months ended
(in millions of U.S. Dollars, except share data)December 25, 2022December 26, 2021December 25, 2022December 26, 2021
Net loss($90.9)($96.7)($117.1)($166.8)
Weighted average shares - basic and diluted (in thousands)124,344 117,218 124,190 117,068 
Loss per share - basic and diluted($0.73)($0.82)($0.94)($1.42)
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.
For the three and six months ended December 25, 2022, 2.8 million and 2.8 million, respectively, of weighted average shares were excluded from the calculation of diluted loss per share because their effect would be anti-dilutive. For the three and six months ended December 26, 2021, 3.1 million and 3.3 million, respectively, of weighted average shares were excluded from the calculation of diluted loss per share because their effect would be anti-dilutive.
In addition, future earnings per share of the Company are also subject to dilution from conversion of the 2026 Notes, 2028 Notes and 2029 Notes under certain conditions as described in Note 9, “Long-term Debt.”
v3.22.4
Stock-Based Compensation
 6 Months Ended
Dec. 25, 2022
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. 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’s stock-based awards can be either service-based or performance-based. Performance-based conditions may be tied to future financial and/or operating performance of the Company, external based market metrics or internal performance metrics.
The Company also has an Employee Stock Purchase Plan (ESPP) that provides employees with the opportunity to purchase common stock at a discount. The ESPP limits employee contributions to 15% of each employee’s compensation (as defined in the plan) and allows employees to purchase shares at a 15% discount to the fair market value of common stock on the purchase date two times per year. The ESPP provides for a twelve-month participation period, divided into two equal six-month purchase
periods, and also provides for a look-back feature. At the end of each six-month period in April and October, participants purchase the Company’s common stock through the ESPP at a 15% discount to the fair market value of the common stock on the first day of the twelve-month participation period or the purchase date, whichever is lower. The plan also provides for an automatic reset feature to start participants on a new twelve-month participation period if the fair market value of common stock declines during the first six-month purchase period.
Stock Option Awards
A summary of stock option awards outstanding as of December 25, 2022 and changes during the six months then ended is as follows:
(shares in thousands)Number of SharesWeighted Average Exercise Price
Outstanding at June 26, 202269 $25.12 
Granted— $— 
Exercised(28)$25.46 
Forfeited or expired(1)$26.07 
Outstanding at December 25, 202240 $24.86 
Restricted Stock Units
A summary of nonvested restricted stock unit awards (RSUs) outstanding as of December 25, 2022 and changes during the six months then ended is as follows:
(unit awards in thousands)Number of RSUs  Weighted Average Grant-Date Fair Value
Nonvested at June 26, 20221,894 $75.67 
Granted1,225 $88.41 
Vested(629)$66.52 
Forfeited(156)$71.44 
Nonvested at December 25, 20222,334 $84.25 
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, 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 service-based RSUs and performance-based RSUs with internal metrics, the grant-date fair value is based upon the market price of the Company’s common stock on the date of the grant. For performance-based RSUs, 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. This fair value is then amortized to compensation expense over the requisite service period or vesting term.
For performance-based 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.
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.
The Black-Scholes and Monte Carlo option pricing models require the input of highly subjective assumptions. These assumptions 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 below.
Total stock-based compensation expense was classified in the consolidated statements of operations as follows:
 Three months endedSix months ended
(in millions of U.S. Dollars)December 25, 2022December 26, 2021December 25, 2022December 26, 2021
Cost of revenue, net$5.8 $4.2 $11.9 $7.3 
Research and development5.1 2.6 8.6 5.0 
Sales, general and administrative10.3 8.6 22.7 17.7 
Total stock-based compensation expense$21.2 $15.4 $43.2 $30.0 
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.
v3.22.4
Income Taxes
 6 Months Ended
Dec. 25, 2022
Income Tax Disclosure [Abstract]  
Income Taxes Income Taxes
In general, the variation between the Company's effective income tax rate and the U.S. statutory rate of 21% is primarily due to: (i) changes in the Company’s valuation allowances against deferred tax assets in the U.S., (ii) projected income for the full year derived from international locations with differing tax rates than the U.S. and (iii) projected tax credits generated.
The Company assesses all available positive and negative evidence to estimate if sufficient future taxable income will be generated to utilize the existing deferred tax assets by jurisdiction. As of December 25, 2022, the Company has concluded that it is necessary to recognize a full valuation allowance against its U.S. deferred tax assets.
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 available evidence indicates that it is more likely than not that the position will be sustained on audit, including resolution of related appeals or litigation processes, if any. The second step is to measure the tax benefit as the largest amount that is cumulatively more than 50% likely to be realized upon ultimate settlement.
As of June 26, 2022, the Company's liability for unrecognized tax benefits was $7.2 million. During the six months ended December 25, 2022, the Company did not record any material movement in its unrecognized tax benefits. As a result, the total liability for unrecognized tax benefits as of December 25, 2022 was $7.2 million. If any portion of this $7.2 million is recognized, the Company will then include that portion in the computation of its effective tax rate. Although the ultimate timing of the resolution and/or closure of audits is highly uncertain, the Company believes it is reasonably possible that $1.7 million of gross unrecognized tax benefits will change in the next 12 months as a result of statutory requirements or settlement with tax authorities.
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 2018. For foreign purposes, the Company is generally no longer subject to examination for tax periods prior to 2012. Certain carryforward tax attributes generated in prior years remain subject to examination, adjustment and recapture.
v3.22.4
Commitments and Contingencies
 6 Months Ended
Dec. 25, 2022
Commitments and Contingencies Disclosure [Abstract]  
Commitments and Contingencies Commitments and Contingencies
Litigation
The Company is currently a party to various legal proceedings, including the case described below. 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.
In October 2021, The Trustees of Purdue University (Purdue) filed a complaint against the Company in the U.S. District Court for the Middle District of North Carolina, alleging infringement of U.S. Patent Nos. 7,498,633 (the '633 Patent), entitled "High-voltage power semiconductor device," and 8,035,112 (the '112 Patent), entitled "SIC power DMOSFET with self-aligned source contact." In the complaint, Purdue also alleges willful infringement, and seeks unspecified monetary damages and attorneys’ fees. In August 2022, Purdue voluntarily withdrew all allegations as to the '112 Patent after having disclaimed all rights to that patent. The Company denies Purdue’s remaining allegations and has developed numerous defenses, including non-infringement, multiple invalidity grounds, and unenforceability due to inequitable conduct before the U.S. Patent & Trademark Office. The litigation with Purdue is in the early stages of fact discovery, and trial is currently scheduled to begin in August 2024. Due to the early stage of the case, the Company is unable to estimate the possible range of loss, if any, at this time.
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 its 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.
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 $2.7 million to $5.2 million per year through fiscal 2031.
As of December 25, 2022, the Company has reduced property and equipment, net by a total of $334.9 million as a result of GDA reimbursements, of which $220.4 million has been received in cash and an additional $114.5 million in receivables are recorded in other current assets and in other assets in the consolidated balance sheet. The Company started receiving cash reimbursements in the fourth quarter of fiscal 2021.
v3.22.4
Restructuring
 6 Months Ended
Dec. 25, 2022
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 January 2022, the Company commenced a plan to open a global IT shared services hub in Belfast, Northern Ireland in partnership with the Northern Ireland government. The Company recorded $0.2 million of severance-related costs relating to this plan for both the three and six months ended December 25, 2022 and has accrued $0.8 million as of December 25, 2022.
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 in Marcy, New York to complement an expansion of the Company's Silicon Carbide materials production at its U.S. campus headquarters in Durham, North Carolina. As part of the plan, the Company incurred restructuring charges associated with the movement of equipment as well as disposals on certain long-lived assets.
The factory optimization restructuring plan concluded in fiscal 2022. For the three and six months ended December 26, 2021, the Company expensed and paid $1.8 million and $3.4 million, respectively, of restructuring charges associated with the movement of equipment related to the factory optimization plan. Additionally, the Company expensed and paid $0.3 million and $1.3 million of restructuring charges associated with disposals of certain long-lived assets for the three and six months ended December 26, 2021, respectively.
v3.22.4
Basis of Presentation and New Accounting Standards (Policies)
 6 Months Ended
Dec. 25, 2022
Accounting Policies [Abstract]  
Overview
Overview
Wolfspeed, 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 product families include Silicon Carbide and GaN materials, power devices and RF devices targeted for various applications such as electric vehicles, fast charging, 5G, renewable energy and storage, and aerospace and defense.
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.
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 recently opened its Silicon Carbide device fabrication facility in New York. The Company operates research and development facilities in North Carolina, California, Arkansas, Arizona and New York.
Wolfspeed, Inc. is a North Carolina corporation established in 1987, and its headquarters are in Durham, North Carolina.
Basis of Presentation
Basis of Presentation
The consolidated financial statements presented herein have been prepared by the Company and have not been audited. In the opinion of management, all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations, comprehensive loss, shareholders' equity and cash flows at December 25, 2022, and for all periods presented, have been made. All material intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 26, 2022 has been derived from the audited financial statements as of that date.
Certain prior period amounts in the accompanying consolidated financial statements and notes have been reclassified to conform to the current year presentation. These reclassifications had no effect on previously reported net loss or shareholders’ equity.
These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 26, 2022 (fiscal 2022) (the 2022 Form 10-K). The results of operations for the three and six months ended December 25, 2022 are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 25, 2023 (fiscal 2023).
Recently Adopted Accounting Pronouncements and Accounting Pronouncements Pending Adoption
Recently Adopted Accounting Pronouncements
Convertible Debt Instruments
In August 2020, the Financial Accounting Standards Board (FASB) issued Accounting Standards Update (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 adopted this standard on June 27, 2022, the first day of its 2023 fiscal year, under the modified retrospective approach. The adoption resulted in (i) a reduction of additional paid in capital by $333.0 million for the recombination of the equity conversion component of the convertible notes outstanding, which was initially separated and recorded in equity, (ii) an increase in the cumulative convertible note carrying value of $277.9 million as a result of removing previously recorded debt discounts, (iii) a decrease in property, plant and equipment for previously capitalized non-cash interest of $25.4 million and (iv) a decrease to beginning accumulated deficit as of June 27, 2022 of $29.7 million to recognize the cumulative gain on adoption. The Company did not recognize a discrete tax impact related to the opening deferred tax balances as of June 27, 2022 due to a full U.S. valuation allowance.
Government Assistance
In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832) - Disclosures by Business Entities about Government Assistance. This standard will require entities to provide annual disclosures regarding government assistance. More specifically, the amendments in the standard improve financial reporting by requiring disclosures that increase the transparency of transactions with a government accounted for by applying a grant or contribution accounting model by analogy, including (1) the types of transactions; (2) the accounting for those transactions; and (3) the effect of those transactions on an entity's financial statements. An entity can apply the amendments prospectively or retrospectively. The Company adopted this standard on June 27, 2022 and will apply the amendments prospectively. The required disclosures will be reflected in the Company’s Annual Report on Form 10-K for the fiscal year ending June 25, 2023.
Accounting Pronouncements Pending Adoption
None.
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. Because 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 and short-term investments. As of December 25, 2022 and June 26, 2022, financial assets utilizing Level 1 inputs included U.S. treasury securities and money market funds. Financial assets utilizing Level 2 inputs included commercial paper, certificates of deposit, corporate bonds, municipal bonds, variable rate demand notes and U.S. agency securities. 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.
v3.22.4
Revenue Recognition (Tables)
 6 Months Ended
Dec. 25, 2022
Revenue from Contract with Customer [Abstract]  
Disaggregated Revenue from External Customers by Geographic Area Disaggregated revenue from external customers by geographic area is as follows:
 Three months endedSix months ended
 December 25, 2022December 26, 2021December 25, 2022December 26, 2021
(in millions of U.S. Dollars)Revenue% of RevenueRevenue% of RevenueRevenue% of RevenueRevenue% of Revenue
Europe$63.6 29.4 %$61.7 35.6 %$139.3 30.5 %$119.8 36.3 %
China52.0 24.1 %49.7 28.7 %118.0 25.8 %92.6 28.1 %
United States53.3 24.7 %32.7 18.9 %103.7 22.7 %58.7 17.8 %
Asia Pacific (excluding China)46.1 21.3 %28.5 16.5 %93.9 20.5 %57.9 17.6 %
Other1.1 0.5 %0.5 0.3 %2.5 0.5 %0.7 0.2 %
Total$216.1 $173.1 $457.4 $329.7 
v3.22.4
Leases (Tables)
 6 Months Ended
Dec. 25, 2022
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:December 25, 2022June 26, 2022
Right-of-use asset (1)
$58.1 $48.5 
Current lease liability (2)
5.3 4.6 
Non-current lease liability (3)
57.3 43.6 
Total operating lease liabilities$62.6 $48.2 
Finance Leases:
Finance lease assets (4)
$10.0 $10.3 
Current portion of finance lease liabilities0.5 0.5 
Finance lease liabilities, less current portion9.4 9.6 
Total finance lease liabilities$9.9 $10.1 
(1) Within other assets on the consolidated balance sheets.
(2) Within other current liabilities on the consolidated balance sheets.
(3) Within other long-term liabilities on the consolidated balance sheets.
(4) Within property and equipment, net on the consolidated balance sheets.
Schedule of Cash Flow Information
Cash flow information consisted of the following (1):
Six months ended
(in millions of U.S. Dollars)December 25, 2022December 26, 2021
Cash (used in) provided by operating activities:
Cash paid for operating leases($2.7)($4.2)
Cash received from tenant improvement allowance on operating lease3.1 — 
Cash paid for interest portion of financing leases(0.1)(0.1)
Cash used in financing activities:
Cash paid for principal portion of finance leases(0.3)(0.2)
(1) See Note 5, "Financial Statement Details," for non-cash activities related to leases.
Operating LeasesFinance Leases
Weighted average remaining lease term (in months) (1)
134556
Weighted average discount rate (2)
4.46 %2.68 %
(1) Weighted average remaining lease term of finance leases excluding the 49-year ground lease is 47 months.
(2) Weighted average discount rate of finance leases excluding the 49-year ground lease is 3.49%.
Schedule of Maturities of Operating Lease Liabilities
Maturities of operating and finance lease liabilities as of December 25, 2022 were as follows (in millions of U.S. Dollars):
Fiscal Year EndingOperating LeasesFinance LeasesTotal
June 25, 2023 (remainder of fiscal 2023)$3.4 $0.4 $3.8 
June 30, 20249.2 0.7 9.9 
June 29, 20259.9 0.7 10.6 
June 28, 20269.7 0.7 10.4 
June 27, 20278.4 0.4 8.8 
Thereafter67.1 14.2 81.3 
Total lease payments107.7 17.1 124.8 
Future tenant improvement allowances(18.5)— (18.5)
Imputed lease interest(26.6)(7.2)(33.8)
Total lease liabilities$62.6 $9.9 $72.5 
Schedule of Maturities of Finance Lease Liabilities
Maturities of operating and finance lease liabilities as of December 25, 2022 were as follows (in millions of U.S. Dollars):
Fiscal Year EndingOperating LeasesFinance LeasesTotal
June 25, 2023 (remainder of fiscal 2023)$3.4 $0.4 $3.8 
June 30, 20249.2 0.7 9.9 
June 29, 20259.9 0.7 10.6 
June 28, 20269.7 0.7 10.4 
June 27, 20278.4 0.4 8.8 
Thereafter67.1 14.2 81.3 
Total lease payments107.7 17.1 124.8 
Future tenant improvement allowances(18.5)— (18.5)
Imputed lease interest(26.6)(7.2)(33.8)
Total lease liabilities$62.6 $9.9 $72.5 
v3.22.4
Financial Statement Details (Tables)
 6 Months Ended
Dec. 25, 2022
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)December 25, 2022June 26, 2022
Billed trade receivables$166.6 $148.0 
Unbilled contract receivables2.6 2.7 
Royalties0.8 0.7 
170.0 151.4 
Allowance for bad debts(0.7)(1.2)
Accounts receivable, net$169.3 $150.2 
Schedule of Allowance for Bad Debts
Changes in the Company’s allowance for bad debts were as follows:
(in millions of U.S. Dollars)December 25, 2022
Balance at beginning of period$1.2 
Current period provision change(0.5)
Write-offs, net of recoveries— 
Balance at end of period$0.7 
Schedule of Inventories
Inventories consisted of the following:
(in millions of U.S. Dollars)December 25, 2022June 26, 2022
Raw material$84.0 $60.2 
Work-in-progress146.8 135.9 
Finished goods35.8 30.9 
Inventories$266.6 $227.0 
Schedule of Other Current Assets
Other current assets consisted of the following:
(in millions of U.S. Dollars)December 25, 2022June 26, 2022
Reimbursement receivable on long-term incentive agreement$111.6 $132.5 
Accrued interest receivable11.2 5.9 
Receivable on Wafer Supply Agreement1.6 2.7 
Inventory related to Wafer Supply Agreement2.8 3.9 
Deferred product costs0.3 2.5 
Other5.9 3.9 
Other current assets$133.4 $151.4 
Schedule of Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses consisted of the following:
(in millions of U.S. Dollars)December 25, 2022June 26, 2022
Accounts payable, trade$132.2 $57.8 
Accrued salaries and wages54.9 80.6 
Accrued property and equipment156.8 132.1 
Accrued expenses and other45.2 37.2 
Accounts payable and accrued expenses$389.1 $307.7 
Schedule of Other Operating Expense
Other operating expense consisted of the following:
Three months endedSix months ended
(in millions of U.S. Dollars)December 25, 2022December 26, 2021December 25, 2022December 26, 2021
Factory start-up costs37.6 11.0 76.0 19.6 
Project, transformation and transaction costs4.5 2.5 7.5 4.1 
Restructuring costs0.2 2.1 0.2 4.7 
Non-restructuring related executive severance0.3 — 1.3 — 
Other operating expense$42.6 $15.6 $85.0 $28.4 
Schedule of Non-Operating (Income) Expense, Net
The following table summarizes the components of non-operating (income) expense, net:
Three months endedSix months ended
(in millions of U.S. Dollars)December 25, 2022December 26, 2021December 25, 2022December 26, 2021
Gain on arbitration proceedings (1)
(0.9)— (50.3)— 
Loss on debt extinguishment (2)
— 24.8 — 24.8 
Interest income(11.6)(2.4)(15.9)(5.0)
Interest expense, net of capitalized interest7.8 5.3 12.6 12.0 
Loss on Wafer Supply Agreement2.6 0.1 2.5 0.9 
Gain on sale of investments, net— (0.1)— (0.3)
Other, net1.3 0.1 0.6 (0.5)
Non-operating (income) expense, net($0.8)$27.8 ($50.5)$31.9 
(1) In the first quarter of fiscal 2023, the Company received an arbitration award in relation to a former customer failing to fulfill contractual obligations to purchase a certain amount of product over a period of time. In the second quarter of fiscal 2023, a final payment, net of legal fees, was received. The arbitration award is recognized as non-operating income, net of legal fees incurred.
(2) As discussed further in Note 9, "Long-term Debt," in the second quarter of fiscal 2022, all outstanding 2023 Notes (as defined below) were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in shares, with fractional shares paid in cash.
Schedule of Noncash Operating Activities
Six months ended
(in millions of U.S. Dollars)December 25, 2022December 26, 2021
Lease asset and liability additions$12.7 $5.6 
Lease asset and liability modifications, net0.6 2.9 
Lease terminations— (0.2)
Settlement of 2023 Notes in shares of common stock (1)
— 416.1 
Decrease in property, plant and equipment from investment tax credit receivables24.3 — 
Decrease in property, plant and equipment from long-term incentive related receivables49.8 81.1 
(1) As discussed further in Note 9, "Long-term Debt," in the second quarter of fiscal 2022, all outstanding 2023 Notes were surrendered for conversion, resulting in the settlement of all outstanding 2023 Notes in shares, with fractional shares paid in cash.
v3.22.4
Investments (Tables)
 6 Months Ended
Dec. 25, 2022
Investments, Debt and Equity Securities [Abstract]  
Schedule of Short-term Investments by Type
Short-term investments consisted of the following (in millions of U.S. Dollars):
 December 25, 2022
 Amortized CostGross Unrealized GainsGross Unrealized LossesCredit Loss AllowanceEstimated Fair Value
Corporate bonds$618.2 $0.1 ($20.2)$— $598.1 
U.S. treasury securities251.2 — (1.1)— 250.1 
Certificates of deposit196.9 — — — 196.9 
Municipal bonds180.6 0.1 (5.0)— 175.7 
Variable rate demand notes94.4 — — — 94.4 
Commercial paper64.0 — — — 64.0 
U.S. agency securities20.2 — (0.1)— 20.1 
Total short-term investments$1,425.5 $0.2 ($26.4)$— $1,399.3 
 June 26, 2022
 Amortized CostGross Unrealized GainsGross Unrealized LossesCredit Loss AllowanceEstimated Fair Value
Corporate bonds$465.8 $— ($17.8)$— $448.0 
Municipal bonds166.5 0.1 (4.4)— 162.2 
U.S. treasury securities66.5 — (0.7)— 65.8 
Variable rate demand notes69.4 — — — 69.4 
U.S. agency securities4.0 — (0.1)— 3.9 
Total short-term investments$772.2 $0.1 ($23.0)$— $749.3 
All short-term investments are classified as available-for-sale. The Company did not have any long-term investments as of December 25, 2022 and June 26, 2022.
Schedule of Gross Unrealized Losses and Fair Value of Short-term Investments by Type and Length of Time
The following tables present the gross unrealized losses and estimated fair value of the Company’s short-term investments, aggregated by investment type and the length of time that individual securities have been in a continuous unrealized loss position (in millions of U.S. Dollars):
December 25, 2022
Less than 12 MonthsGreater than 12 MonthsTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
Corporate bonds$361.0 ($12.1)$146.4 ($8.1)$507.4 ($20.2)
Municipal bonds108.5 (3.2)35.7 (1.8)144.2 (5.0)
U.S. treasury securities133.6 (1.1)— — 133.6 (1.1)
U.S. agency securities5.0 — 1.9 (0.1)6.9 (0.1)
Total$608.1 ($16.4)$184.0 ($10.0)$792.1 ($26.4)
Number of securities with an unrealized loss265 90 355 
June 26, 2022
Less than 12 MonthsGreater than 12 MonthsTotal
Fair ValueUnrealized LossFair ValueUnrealized LossFair ValueUnrealized Loss
Corporate bonds$431.1 ($17.4)$8.3 ($0.4)$439.4 ($17.8)
Municipal bonds150.0 (4.4)1.0 — 151.0 (4.4)
U.S. treasury securities65.8 (0.7)— — 65.8 (0.7)
U.S. agency securities3.9 (0.1)— — 3.9 (0.1)
Total$650.8 ($22.6)$9.3 ($0.4)$660.1 ($23.0)
Number of securities with an unrealized loss346 5 351 
Schedule of Contractual Maturities of Short-term Investments by Type
The contractual maturities of short-term investments as of December 25, 2022 were as follows:

 
(in millions of U.S. Dollars)Within One YearAfter One, Within Five YearsAfter Five, Within Ten YearsAfter Ten YearsTotal
Corporate bonds$298.0 $300.1 $— $— $598.1 
U.S. treasury securities196.8 53.3 — — 250.1 
Certificates of deposit196.9 — — — 196.9 
Municipal bonds66.1 109.6 — — 175.7 
Variable rate demand notes— — 14.7 79.7 94.4 
Commercial paper64.0 — — — 64.0 
U.S. agency securities15.1 5.0 — — 20.1 
Total short-term investments$836.9 $468.0 $14.7 $79.7 $1,399.3 
v3.22.4
Fair Value of Financial Instruments (Tables)
 6 Months Ended
Dec. 25, 2022
Fair Value Disclosures [Abstract]  
Schedule of Financial Instruments Carried at Fair Value
The following table sets forth financial instruments carried at fair value within the U.S. GAAP hierarchy:
 December 25, 2022June 26, 2022
(in millions of U.S. Dollars)Level 1Level 2TotalLevel 1Level 2Total
Cash equivalents:
U.S. treasury securities$307.0 $— $307.0 $69.0 $— $69.0 
Money market funds253.5 — 253.5 115.9 — 115.9 
Commercial paper— 67.6 67.6 — 59.4 59.4 
Certificates of deposit— 38.8 38.8 — — — 
Corporate bonds— 8.4 8.4 — — — 
Municipal bonds— 1.0 1.0 — — — 
Total cash equivalents560.5 115.8 676.3 184.9 59.4 244.3 
Short-term investments:
Corporate bonds— 598.1 598.1 — 448.0 448.0 
U.S. treasury securities250.1 — 250.1 65.8 — 65.8 
Certificates of deposit— 196.9 196.9 — — — 
Municipal bonds— 175.7 175.7 — 162.2 162.2 
Variable rate demand notes— 94.4 94.4 — 69.4 69.4 
Commercial paper— 64.0 64.0 — — — 
U.S. agency securities— 20.1 20.1 — 3.9 3.9 
Total short-term investments250.1 1,149.2 1,399.3 65.8 683.5 749.3 
Total cash equivalents and short-term investments$810.6 $1,265.0 $2,075.6 $250.7 $742.9 $993.6 
v3.22.4
Goodwill and Intangible Assets (Tables)
 6 Months Ended
Dec. 25, 2022
Goodwill and Intangible Assets Disclosure [Abstract]  
Schedule of Components of Intangible Assets
The following table presents the components of intangible assets, net:
December 25, 2022June 26, 2022
(in millions of U.S. Dollars)GrossAccumulated AmortizationNetGrossAccumulated AmortizationNet
Customer relationships$96.8 ($34.3)$62.5 $96.8 ($31.2)$65.6 
Developed technology68.0 (36.2)31.8 68.0 (33.6)34.4 
Non-compete agreements12.2 (12.2)— 12.2 (12.2)— 
Acquisition related intangible assets177.0 (82.7)94.3 177.0 (77.0)100.0 
Patent and licensing rights64.1 (38.4)25.7 65.5 (40.1)25.4 
Total intangible assets$241.1 ($121.1)$120.0 $242.5 ($117.1)$125.4 
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 IntangiblesPatentsTotal
June 25, 2023 (remainder of fiscal 2023)$5.5 $2.3 $7.8 
June 30, 202410.4 4.1 14.5 
June 29, 202510.4 3.1 13.5 
June 28, 20269.3 2.4 11.7 
June 27, 20279.3 1.9 11.2 
Thereafter49.4 11.9 61.3 
Total future amortization expense$94.3 $25.7 $120.0 
v3.22.4
Long-term Debt (Tables)
 6 Months Ended
Dec. 25, 2022
Debt Disclosure [Abstract]  
Schedule of Liability and Equity Components of Long-term Debt
The net carrying amount of the liability component of the Outstanding Notes is as follows:
(in millions of U.S. Dollars)December 25, 2022June 26, 2022
Principal$3,075.0 $1,325.0 
Unamortized discount and issuance costs(54.0)(303.4)
Net carrying amount$3,021.0 $1,021.6 
The net carrying amount of the equity component of the Outstanding Notes is as follows:
(in millions of U.S. Dollars)
December 25, 2022 (1)
June 26, 2022
Discount related to value of conversion option$— $341.1 
Debt issuance costs— (8.1)
Net carrying amount$— $333.0 
(1) As discussed above, the equity components of the 2026 Notes and 2028 Notes were eliminated upon adoption of ASU 2020-06 on June 27, 2022, the first day of fiscal 2023.
Schedule of Interest Expense
The interest expense, net recognized related to the Outstanding Notes is as follows:
Three months endedSix months ended
(in millions of U.S. Dollars)December 25, 2022December 26, 2021December 25, 2022December 26, 2021
Interest expense, net of capitalized interest$5.7 $0.8 $8.7 $1.9 
Amortization of discount and debt issuance costs, net of capitalized interest1.6 3.9 2.9 9.0 
Total interest expense, net$7.3 $4.7 $11.6 $10.9 
v3.22.4
Loss Per Share (Tables)
 6 Months Ended
Dec. 25, 2022
Earnings Per Share [Abstract]  
Schedule of Earnings Per Share, Basic and Diluted
The details of the computation of basic and diluted loss per share are as follows:
 Three months endedSix months ended
(in millions of U.S. Dollars, except share data)December 25, 2022December 26, 2021December 25, 2022December 26, 2021
Net loss($90.9)($96.7)($117.1)($166.8)
Weighted average shares - basic and diluted (in thousands)124,344 117,218 124,190 117,068 
Loss per share - basic and diluted($0.73)($0.82)($0.94)($1.42)
v3.22.4
Stock-Based Compensation (Tables)
 6 Months Ended
Dec. 25, 2022
Share-Based Payment Arrangement [Abstract]  
Schedule of Stock Option Awards Outstanding
A summary of stock option awards outstanding as of December 25, 2022 and changes during the six months then ended is as follows:
(shares in thousands)Number of SharesWeighted Average Exercise Price
Outstanding at June 26, 202269 $25.12 
Granted— $— 
Exercised(28)$25.46 
Forfeited or expired(1)$26.07 
Outstanding at December 25, 202240 $24.86 
Schedule of Nonvested Restricted Stock Awards and Restricted Stock Unit Awards Outstanding
A summary of nonvested restricted stock unit awards (RSUs) outstanding as of December 25, 2022 and changes during the six months then ended is as follows:
(unit awards in thousands)Number of RSUs  Weighted Average Grant-Date Fair Value
Nonvested at June 26, 20221,894 $75.67 
Granted1,225 $88.41 
Vested(629)$66.52 
Forfeited(156)$71.44 
Nonvested at December 25, 20222,334 $84.25 
Schedule of Total Stock-Based Compensation Expense
Total stock-based compensation expense was classified in the consolidated statements of operations as follows:
 Three months endedSix months ended
(in millions of U.S. Dollars)December 25, 2022December 26, 2021December 25, 2022December 26, 2021
Cost of revenue, net$5.8 $4.2 $11.9 $7.3 
Research and development5.1 2.6 8.6 5.0 
Sales, general and administrative10.3 8.6 22.7 17.7 
Total stock-based compensation expense$21.2 $15.4 $43.2 $30.0 
v3.22.4
Basis of Presentation and New Accounting Standards - Narrative (Details) - USD ($)
$ in Millions
Dec. 25, 2022
Sep. 25, 2022
Jun. 27, 2022
Jun. 26, 2022
Dec. 26, 2021
Sep. 26, 2021
Jun. 27, 2021
Basis of Presentation and Changes in Significant Accounting Policies [Line Items]              
Stockholders' Equity Attributable to Parent $ (1,780.2) $ (2,109.6)   $ (2,439.3) $ (2,378.9) $ (2,039.4) $ (2,116.5)
Convertible notes, net 3,021.0     1,021.6      
Property and equipment, net (1,649.6)     (1,481.1)      
Additional Paid-in Capital              
Basis of Presentation and Changes in Significant Accounting Policies [Line Items]              
Stockholders' Equity Attributable to Parent (3,660.0) (3,902.2)   (4,228.4) (4,110.3) (3,670.6) (3,676.8)
Accumulated Deficit              
Basis of Presentation and Changes in Significant Accounting Policies [Line Items]              
Stockholders' Equity Attributable to Parent $ 1,851.4 $ 1,760.5   1,764.0 $ 1,729.9 $ 1,633.2 $ 1,563.1
Cumulative Effect, Period of Adoption, Adjustment              
Basis of Presentation and Changes in Significant Accounting Policies [Line Items]              
Stockholders' Equity Attributable to Parent       303.3      
Cumulative Effect, Period of Adoption, Adjustment | Additional Paid-in Capital              
Basis of Presentation and Changes in Significant Accounting Policies [Line Items]              
Stockholders' Equity Attributable to Parent       333.0      
Cumulative Effect, Period of Adoption, Adjustment | Accumulated Deficit              
Basis of Presentation and Changes in Significant Accounting Policies [Line Items]              
Stockholders' Equity Attributable to Parent       (29.7)      
Cumulative Effect, Period of Adoption, Adjustment | Adoption of ASU 2020-06              
Basis of Presentation and Changes in Significant Accounting Policies [Line Items]              
Convertible notes, net     $ 277.9        
Property and equipment, net     $ 25.4        
Cumulative Effect, Period of Adoption, Adjustment | Adoption of ASU 2020-06 | Additional Paid-in Capital              
Basis of Presentation and Changes in Significant Accounting Policies [Line Items]              
Stockholders' Equity Attributable to Parent       333.0      
Cumulative Effect, Period of Adoption, Adjustment | Adoption of ASU 2020-06 | Accumulated Deficit              
Basis of Presentation and Changes in Significant Accounting Policies [Line Items]              
Stockholders' Equity Attributable to Parent       $ 29.7      
v3.22.4
Discontinued Operations - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended
Mar. 01, 2021
Dec. 25, 2022
Mar. 27, 2022
Dec. 26, 2021
Dec. 25, 2022
Dec. 26, 2021
Sep. 25, 2022
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Costs of selling business           $ 27,400,000  
Term of certain silicon carbide materials and fabrication services 4 years            
Proceeds from sale of business resulting from the receipt of transaction related note receivable         $ 101,800,000 0  
Discontinued Operations, Disposed of by Sale | LED Business              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Cash received from divestiture $ 50,000,000            
Unsecured promissory note issued to parent in disposition 125,000,000            
Potential earn-out payment             $ 101,800,000
Loss on sale           29,100,000  
Proceeds from sale of business resulting from the receipt of transaction related note receivable     $ 125,000,000        
Supply agreement liability 31,000,000 $ 0     0    
Gain (loss) on disposal of discontinued operation, net of tax   (2,600,000)   $ (100,000) (2,500,000) (900,000)  
Other assets   1,600,000     1,600,000    
Discontinued Operations, Disposed of by Sale | LED Business | Minimum              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Potential earn-out payment 2,500,000            
Discontinued Operations, Disposed of by Sale | LED Business | 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            
Discontinued Operations, Disposed of by Sale | LED Business, Real Estate License Agreement              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Administrative fees   900,000   900,000 1,800,000 1,800,000  
Discontinued Operations, Disposed of by Sale | LED Business, Real Estate License Agreement | Accounts Receivable, Net              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Administrative fees         300,000    
Discontinued Operations, Disposed of by Sale | LED Business, Transition Services Agreement              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Administrative fees   $ 1,800,000   $ 2,400,000 3,700,000 $ 5,300,000  
Discontinued Operations, Disposed of by Sale | LED Business, Transition Services Agreement | Accounts Receivable, Net              
Income Statement, Balance Sheet and Additional Disclosures by Disposal Groups, Including Discontinued Operations [Line Items]              
Administrative fees         $ 600,000    
v3.22.4
Revenue Recognition - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended
Dec. 25, 2022
Dec. 25, 2022
Jun. 26, 2022
Revenue from Contract with Customer [Abstract]      
Contract liabilities $ 45,600,000 $ 45,600,000 $ 47,800,000
Revenue recognized during period $ 0 $ 0  
v3.22.4
Revenue Recognition - Disaggregated Revenue from External Customers by Geographic Area (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 25, 2022
Dec. 26, 2021
Dec. 25, 2022
Dec. 26, 2021
Disaggregation of Revenue [Line Items]        
Revenue $ 216.1 $ 173.1 $ 457.4 $ 329.7
Geographic Concentration Risk | Revenue from Contract with Customer        
Disaggregation of Revenue [Line Items]        
Revenue 216.1 173.1 457.4 329.7
Europe | Geographic Concentration Risk | Revenue from Contract with Customer        
Disaggregation of Revenue [Line Items]        
Revenue $ 63.6 $ 61.7 $ 139.3 $ 119.8
% of Revenue 29.40% 35.60% 30.50% 36.30%
China | Geographic Concentration Risk | Revenue from Contract with Customer        
Disaggregation of Revenue [Line Items]        
Revenue $ 52.0 $ 49.7 $ 118.0 $ 92.6
% of Revenue 24.10% 28.70% 25.80% 28.10%
United States | Geographic Concentration Risk | Revenue from Contract with Customer        
Disaggregation of Revenue [Line Items]        
Revenue $ 53.3 $ 32.7 $ 103.7 $ 58.7
% of Revenue 24.70% 18.90% 22.70% 17.80%
Asia Pacific (excluding China) | Geographic Concentration Risk | Revenue from Contract with Customer        
Disaggregation of Revenue [Line Items]        
Revenue $ 46.1 $ 28.5 $ 93.9 $ 57.9
% of Revenue 21.30% 16.50% 20.50% 17.60%
Other | Geographic Concentration Risk | Revenue from Contract with Customer        
Disaggregation of Revenue [Line Items]        
Revenue $ 1.1 $ 0.5 $ 2.5 $ 0.7
% of Revenue 0.50% 0.30% 0.50% 0.20%
v3.22.4
Leases - Narrative (Details)
ft² in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Dec. 25, 2022
USD ($)
ft²
Dec. 26, 2021
USD ($)
Dec. 25, 2022
USD ($)
ft²
Dec. 26, 2021
USD ($)
Lessee, Lease, Description [Line Items]        
Operating lease expense $ 2.5 $ 3.3 $ 4.7 $ 4.8
Finance lease amortization 0.2 0.3 0.4 0.7
Interest expense on finance leases (less than) $ 0.1 0.1 $ 0.1 0.2
Area of property in lease agreement (square feet) | ft² 58   58  
Lease income per year $ 3.6   $ 3.6  
Operating lease, term of contract 24 months   24 months  
Lease income $ 0.9 $ 0.9 $ 1.8 $ 1.8
Future minimum rental income $ 0.6   $ 0.6  
Maximum        
Lessee, Lease, Description [Line Items]        
Notice of termination (in days)     60 days  
Minimum        
Lessee, Lease, Description [Line Items]        
Notice of termination (in days)     30 days  
New York        
Lessee, Lease, Description [Line Items]        
Term of finance lease (in years) 49 years   49 years  
v3.22.4
Leases - Lease Assets and Liabilities (Details) - USD ($)
$ in Millions
Dec. 25, 2022
Jun. 26, 2022
Operating Leases:    
Right-of-use asset $ 58.1 $ 48.5
Current lease liability 5.3 4.6
Non-current lease liability 57.3 43.6
Total operating lease liabilities 62.6 48.2
Finance Leases:    
Finance lease assets 10.0 10.3
Current portion of finance lease liabilities 0.5 0.5
Finance lease liabilities, less current portion 9.4 9.6
Total finance lease liabilities $ 9.9 $ 10.1
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
v3.22.4
Leases - Cash Flow Information (Details) - USD ($)
$ in Millions
 6 Months Ended
Dec. 25, 2022
Dec. 26, 2021
Cash (used in) provided by operating activities:    
Cash paid for operating leases $ (2.7) $ (4.2)
Cash received from tenant improvement allowance on operating lease 3.1 0.0
Cash paid for interest portion of financing leases (0.1) (0.1)
Cash used in financing activities:    
Cash paid for principal portion of finance leases $ (0.3) $ (0.2)
v3.22.4
Leases - Maturities of Lease Liabilities (Details) - USD ($)
$ in Millions
Dec. 25, 2022
Jun. 26, 2022
Operating Leases    
June 25, 2023 (remainder of fiscal 2023) $ 3.4  
June 30, 2024 9.2  
June 29, 2025 9.9  
June 28, 2026 9.7  
June 27, 2027 8.4  
Thereafter 67.1  
Total lease payments 107.7  
Future tenant improvement allowances (18.5)  
Imputed lease interest (26.6)  
Total lease liabilities 62.6 $ 48.2
Finance Leases    
June 25, 2023 (remainder of fiscal 2023) 0.4  
June 30, 2024 0.7  
June 29, 2025 0.7  
June 28, 2026 0.7  
June 27, 2027 0.4  
Thereafter 14.2  
Total lease payments 17.1  
Future tenant improvement allowances 0.0  
Imputed lease interest (7.2)  
Total lease liabilities 9.9 $ 10.1
Total    
June 25, 2023 (remainder of fiscal 2023) 3.8  
June 30, 2024 9.9  
June 29, 2025 10.6  
June 28, 2026 10.4  
June 27, 2027 8.8  
Thereafter 81.3  
Total lease payments 124.8  
Future tenant improvement allowances (18.5)  
Imputed lease interest (33.8)  
Total lease liabilities $ 72.5  
v3.22.4
Leases - Weighted Average Remaining Lease Terms and Discount Rates (Details)
 6 Months Ended
Dec. 25, 2022
Lessee, Lease, Description [Line Items]  
Weighted average remaining lease term of operating leases (in months) 134 months
Weighted average remaining lease term of finance leases (in months) 556 months
Weighted average discount rate of operating leases (as a percent) 4.46%
Weighted average discount rate of finance leases (as a percent) 2.68%
Weighted average remaining lease term of finance leases excluding 49-year ground lease (in months) 47 months
Weighted average discount rate of finance leases excluding 49-year ground lease (as a percent) 3.49%
New York  
Lessee, Lease, Description [Line Items]  
Term of finance lease (in years) 49 years
v3.22.4
Financial Statement Details - Accounts Receivable, Net (Details) - USD ($)
$ in Millions
Dec. 25, 2022
Jun. 26, 2022
Accounts Receivable, after Allowance for Credit Loss [Abstract]    
Gross receivables $ 170.0 $ 151.4
Allowance for bad debts (0.7) (1.2)
Accounts receivable, net 169.3 150.2
Royalties    
Accounts Receivable, after Allowance for Credit Loss [Abstract]    
Gross receivables 0.8 0.7
Billed trade receivables    
Accounts Receivable, after Allowance for Credit Loss [Abstract]    
Gross receivables 166.6 148.0
Unbilled contract receivables    
Accounts Receivable, after Allowance for Credit Loss [Abstract]    
Gross receivables $ 2.6 $ 2.7
v3.22.4
Financial Statement Details - Allowance for Bad Debts (Details)
$ in Millions
 6 Months Ended
Dec. 25, 2022
USD ($)
Accounts Receivable, Allowance for Credit Loss [Roll Forward]  
Balance at beginning of period $ 1.2
Balance at end of period 0.7
SEC Schedule, 12-09, Allowance, Notes Receivable  
Accounts Receivable, Allowance for Credit Loss [Roll Forward]  
Balance at beginning of period 1.2
Current period provision change (0.5)
Write-offs, net of recoveries 0.0
Balance at end of period $ 0.7
v3.22.4
Financial Statement Details - Inventories (Details) - USD ($)
$ in Millions
Dec. 25, 2022
Jun. 26, 2022
Inventory, Net [Abstract]    
Raw material $ 84.0 $ 60.2
Work-in-progress 146.8 135.9
Finished goods 35.8 30.9
Inventories $ 266.6 $ 227.0
v3.22.4
Financial Statement Details - Other Current Assets (Details) - USD ($)
$ in Millions
Dec. 25, 2022
Jun. 26, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Reimbursement receivable on long-term incentive agreement $ 111.6 $ 132.5
Accrued interest receivable 11.2 5.9
Receivable on Wafer Supply Agreement 1.6 2.7
Inventory related to Wafer Supply Agreement 2.8 3.9
Deferred product costs 0.3 2.5
Other 5.9 3.9
Other current assets $ 133.4 $ 151.4
v3.22.4
Financial Statement Details - Accounts Payable and Accrued Expenses (Details) - USD ($)
$ in Millions
Dec. 25, 2022
Jun. 26, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]    
Accounts payable, trade $ 132.2 $ 57.8
Accrued salaries and wages 54.9 80.6
Accrued property and equipment 156.8 132.1
Accrued expenses and other 45.2 37.2
Accounts payable and accrued expenses $ 389.1 $ 307.7
v3.22.4
Financial Statement Details - Other Operating Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 25, 2022
Dec. 26, 2021
Dec. 25, 2022
Dec. 26, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Factory start-up costs $ 37.6 $ 11.0 $ 76.0 $ 19.6
Project, transformation and transaction costs 4.5 2.5 7.5 4.1
Restructuring costs 0.2 2.1 0.2 4.7
Non-restructuring related executive severance 0.3 0.0 1.3 0.0
Other operating expense $ 42.6 $ 15.6 $ 85.0 $ 28.4
v3.22.4
Financial Statement Details - Accumulated Other Comprehensive Income (Details) - USD ($)
$ in Millions
 6 Months Ended
Dec. 25, 2022
Dec. 26, 2021
Jun. 26, 2022
Organization, Consolidation and Presentation of Financial Statements [Abstract]      
Net unrealized gain on available-for-sale securities $ (28.6)   $ (25.3)
Unrealized gain (loss) on available-for-sale securities $ (2.4) $ (2.4)  
v3.22.4
Financial Statement Details - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 25, 2022
Dec. 26, 2021
Dec. 25, 2022
Dec. 26, 2021
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Nonoperating Income (Expense) $ 0.8 $ (27.8) $ 50.5 $ (31.9)
Accrued property and equipment     156.8 135.7
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Nonoperating Income (Expense)   $ 0.1   $ 0.3
Reclassification out of Accumulated Other Comprehensive Income | Accumulated Other Comprehensive Income | Maximum        
Reclassification Adjustment out of Accumulated Other Comprehensive Income [Line Items]        
Nonoperating Income (Expense) $ 0.1   $ 0.1  
v3.22.4
Financial Statement Details - Non-Operating Expense, Net (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 25, 2022
Dec. 26, 2021
Dec. 25, 2022
Dec. 26, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract]        
Gain on arbitration proceedings $ (0.9) $ 0.0 $ (50.3) $ 0.0
Loss on extinguishment of debt 0.0 24.8 0.0 24.8
Interest income (11.6) (2.4) (15.9) (5.0)
Interest expense, net of capitalized interest 7.8 5.3 12.6 12.0
Loss on Wafer Supply Agreement 2.6 0.1 2.5 0.9
Gain on sale of investments, net 0.0 (0.1) 0.0 (0.3)
Other, net 1.3 0.1 0.6 (0.5)
Non-operating (income) expense, net $ (0.8) $ 27.8 $ (50.5) $ 31.9
v3.22.4
Financial Statement Details - Non-cash Activities (Details) - USD ($)
$ in Millions
 6 Months Ended
Dec. 25, 2022
Dec. 26, 2021
Statements of Cash Flows - non-cash activities    
Lease asset and liability additions $ 12.7 $ 5.6
Lease asset and liability modifications, net 0.6 2.9
Lease terminations 0.0 (0.2)
Settlement of 2023 Notes in shares of common stock 0.0 416.1
Decrease in property, plant and equipment from investment tax credit receivables 24.3 0.0
Decrease in property, plant and equipment from long-term incentive related receivables $ 49.8 $ 81.1
v3.22.4
Investments - Short-term Investments by Type (Details) - USD ($)
Dec. 25, 2022
Jun. 26, 2022
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost $ 1,425,500,000 $ 772,200,000
Gross Unrealized Gains 200,000 100,000
Gross Unrealized Losses (26,400,000) (23,000,000.0)
Credit Loss Allowance 0 0
Estimated Fair Value 1,399,300,000 749,300,000
Corporate bonds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 618,200,000 465,800,000
Gross Unrealized Gains 100,000 0
Gross Unrealized Losses (20,200,000) (17,800,000)
Credit Loss Allowance 0 0
Estimated Fair Value 598,100,000 448,000,000.0
U.S. treasury securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 251,200,000 66,500,000
Gross Unrealized Gains 0 0
Gross Unrealized Losses (1,100,000) (700,000)
Credit Loss Allowance 0 0
Estimated Fair Value 250,100,000 65,800,000
Certificates of deposit    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 196,900,000  
Gross Unrealized Gains 0  
Gross Unrealized Losses 0  
Credit Loss Allowance 0  
Estimated Fair Value 196,900,000  
Municipal bonds    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 180,600,000 166,500,000
Gross Unrealized Gains 100,000 100,000
Gross Unrealized Losses (5,000,000.0) (4,400,000)
Credit Loss Allowance 0 0
Estimated Fair Value 175,700,000 162,200,000
Variable rate demand notes    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 94,400,000 69,400,000
Gross Unrealized Gains 0 0
Gross Unrealized Losses 0 0
Credit Loss Allowance 0 0
Estimated Fair Value 94,400,000 69,400,000
Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 64,000,000.0  
Gross Unrealized Gains 0  
Gross Unrealized Losses 0  
Credit Loss Allowance 0  
Estimated Fair Value 64,000,000.0  
U.S. agency securities    
Debt Securities, Available-for-sale [Line Items]    
Amortized Cost 20,200,000 4,000,000.0
Gross Unrealized Gains 0 0
Gross Unrealized Losses (100,000) (100,000)
Credit Loss Allowance 0 0
Estimated Fair Value $ 20,100,000 $ 3,900,000
v3.22.4
Investments - Investment Securities, Aggregated by Investment Type and Length of Time (Details)
$ in Millions
Dec. 25, 2022
USD ($)
security
Jun. 26, 2022
USD ($)
security
Fair Value    
Less than 12 Months $ 608.1 $ 650.8
Greater than 12 Months 184.0 9.3
Total 792.1 660.1
Unrealized Loss    
Less than 12 Months (16.4) (22.6)
Greater than 12 Months (10.0) (0.4)
Total $ (26.4) $ (23.0)
Number of securities with an unrealized loss    
Less than 12 Months | security 265 346
Greater than 12 Months | security 90 5
Total | security 355 351
Corporate bonds    
Fair Value    
Less than 12 Months $ 361.0 $ 431.1
Greater than 12 Months 146.4 8.3
Total 507.4 439.4
Unrealized Loss    
Less than 12 Months (12.1) (17.4)
Greater than 12 Months (8.1) (0.4)
Total (20.2) (17.8)
Municipal bonds    
Fair Value    
Less than 12 Months 108.5 150.0
Greater than 12 Months 35.7 1.0
Total 144.2 151.0
Unrealized Loss    
Less than 12 Months (3.2) (4.4)
Greater than 12 Months (1.8) 0.0
Total (5.0) (4.4)
U.S. treasury securities    
Fair Value    
Less than 12 Months 133.6 65.8
Greater than 12 Months 0.0 0.0
Total 133.6 65.8
Unrealized Loss    
Less than 12 Months (1.1) (0.7)
Greater than 12 Months 0.0 0.0
Total (1.1) (0.7)
U.S. agency securities    
Fair Value    
Less than 12 Months 5.0 3.9
Greater than 12 Months 1.9 0.0
Total 6.9 3.9
Unrealized Loss    
Less than 12 Months 0.0 (0.1)
Greater than 12 Months (0.1) 0.0
Total $ (0.1) $ (0.1)
v3.22.4
Investments - Narrative (Details)
Dec. 25, 2022
USD ($)
security
Jun. 26, 2022
USD ($)
security
Net Investment Income [Line Items]    
Number of instruments in loss position | security 265 346
Fair value of instruments in loss position $ 608,100,000 $ 650,800,000
Unrealized loss 16,400,000 22,600,000
Accrued interest receivable 11,200,000 5,900,000
Credit Loss Allowance $ 0 $ 0
Cash and Cash Equivalents    
Net Investment Income [Line Items]    
Number of instruments in loss position | security 10 6
Fair value of instruments in loss position $ 104,700,000 $ 69,000,000
Unrealized loss $ 100,000 $ 100,000
v3.22.4
Investments - Contractual Maturities of Marketable Investments (Details) - USD ($)
$ in Millions
Dec. 25, 2022
Jun. 26, 2022
Debt Securities, Available-for-sale [Line Items]    
Within One Year $ 836.9  
After One, Within Five Years 468.0  
After Five, Within Ten Years 14.7  
After Ten Years 79.7  
Total 1,399.3 $ 749.3
Corporate bonds    
Debt Securities, Available-for-sale [Line Items]    
Within One Year 298.0  
After One, Within Five Years 300.1  
After Five, Within Ten Years 0.0  
After Ten Years 0.0  
Total 598.1 448.0
U.S. treasury securities    
Debt Securities, Available-for-sale [Line Items]    
Within One Year 196.8  
After One, Within Five Years 53.3  
After Five, Within Ten Years 0.0  
After Ten Years 0.0  
Total 250.1 65.8
Certificates of deposit    
Debt Securities, Available-for-sale [Line Items]    
Within One Year 196.9  
After One, Within Five Years 0.0  
After Five, Within Ten Years 0.0  
After Ten Years 0.0  
Total 196.9 0.0
Municipal bonds    
Debt Securities, Available-for-sale [Line Items]    
Within One Year 66.1  
After One, Within Five Years 109.6  
After Five, Within Ten Years 0.0  
After Ten Years 0.0  
Total 175.7 162.2
Variable rate demand notes    
Debt Securities, Available-for-sale [Line Items]    
Within One Year 0.0  
After One, Within Five Years 0.0  
After Five, Within Ten Years 14.7  
After Ten Years 79.7  
Total 94.4 69.4
Commercial paper    
Debt Securities, Available-for-sale [Line Items]    
Within One Year 64.0  
After One, Within Five Years 0.0  
After Five, Within Ten Years 0.0  
After Ten Years 0.0  
Total 64.0  
U.S. agency securities    
Debt Securities, Available-for-sale [Line Items]    
Within One Year 15.1  
After One, Within Five Years 5.0  
After Five, Within Ten Years 0.0  
After Ten Years 0.0  
Total $ 20.1 $ 3.9
v3.22.4
Fair Value of Financial Instruments - Summary (Details) - USD ($)
$ in Millions
Dec. 25, 2022
Jun. 26, 2022
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents $ 676.3 $ 244.3
Total short-term investments 1,399.3 749.3
Total cash equivalents and short-term investments 2,075.6 993.6
Corporate bonds    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 598.1 448.0
U.S. treasury securities    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 250.1 65.8
Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 196.9 0.0
Municipal bonds    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 175.7 162.2
Variable rate demand notes    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 94.4 69.4
Commercial paper    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 64.0 0.0
U.S. agency securities    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 20.1 3.9
U.S. treasury securities    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 307.0 69.0
Money market funds    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 253.5 115.9
Commercial paper    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 67.6 59.4
Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 38.8 0.0
Corporate bonds    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 8.4 0.0
Municipal bonds    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 1.0 0.0
Level 1    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 560.5 184.9
Total short-term investments 250.1 65.8
Total cash equivalents and short-term investments 810.6 250.7
Level 1 | Corporate bonds    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 0.0 0.0
Level 1 | U.S. treasury securities    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 250.1 65.8
Level 1 | Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 0.0 0.0
Level 1 | Municipal bonds    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 0.0 0.0
Level 1 | Variable rate demand notes    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 0.0 0.0
Level 1 | Commercial paper    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 0.0 0.0
Level 1 | U.S. agency securities    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 0.0 0.0
Level 1 | U.S. treasury securities    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 307.0 69.0
Level 1 | Money market funds    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 253.5 115.9
Level 1 | Commercial paper    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 0.0 0.0
Level 1 | Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 0.0 0.0
Level 1 | Corporate bonds    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 0.0 0.0
Level 1 | Municipal bonds    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 0.0 0.0
Level 2    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 115.8 59.4
Total short-term investments 1,149.2 683.5
Total cash equivalents and short-term investments 1,265.0 742.9
Level 2 | Corporate bonds    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 598.1 448.0
Level 2 | U.S. treasury securities    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 0.0 0.0
Level 2 | Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 196.9 0.0
Level 2 | Municipal bonds    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 175.7 162.2
Level 2 | Variable rate demand notes    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 94.4 69.4
Level 2 | Commercial paper    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 64.0 0.0
Level 2 | U.S. agency securities    
Assets, Fair Value Disclosure [Abstract]    
Total short-term investments 20.1 3.9
Level 2 | U.S. treasury securities    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 0.0 0.0
Level 2 | Money market funds    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 0.0 0.0
Level 2 | Commercial paper    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 67.6 59.4
Level 2 | Certificates of deposit    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 38.8 0.0
Level 2 | Corporate bonds    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents 8.4 0.0
Level 2 | Municipal bonds    
Assets, Fair Value Disclosure [Abstract]    
Total cash equivalents $ 1.0 $ 0.0
v3.22.4
Goodwill and Intangible Assets - Narrative (Details) - USD ($)
 3 Months Ended 6 Months Ended
Dec. 25, 2022
Dec. 26, 2021
Dec. 25, 2022
Dec. 26, 2021
Finite-Lived Intangible Assets [Line Items]        
Changes in Goodwill     $ 0  
Amortization of acquisition-related intangibles $ 2,800,000 $ 3,600,000 5,700,000 $ 7,200,000
Patent and licensing rights        
Finite-Lived Intangible Assets [Line Items]        
Amortization of intangible assets $ 1,300,000 $ 1,500,000 $ 2,500,000 $ 2,800,000
v3.22.4
Goodwill and Intangible Assets - Components of Intangible Assets, Net (Details) - USD ($)
$ in Millions
Dec. 25, 2022
Jun. 26, 2022
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross $ 241.1 $ 242.5
Accumulated Amortization (121.1) (117.1)
Total future amortization expense 120.0 125.4
Acquisition related intangible assets    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross 177.0 177.0
Accumulated Amortization (82.7) (77.0)
Total future amortization expense 94.3 100.0
Customer relationships    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross 96.8 96.8
Accumulated Amortization (34.3) (31.2)
Total future amortization expense 62.5 65.6
Developed technology    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross 68.0 68.0
Accumulated Amortization (36.2) (33.6)
Total future amortization expense 31.8 34.4
Non-compete agreements    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross 12.2 12.2
Accumulated Amortization (12.2) (12.2)
Total future amortization expense 0.0 0.0
Patent and licensing rights    
Acquired Finite-Lived Intangible Assets [Line Items]    
Gross 64.1 65.5
Accumulated Amortization (38.4) (40.1)
Total future amortization expense $ 25.7 $ 25.4
v3.22.4
Goodwill and Intangible Assets - Future Amortization Expense of Intangible Assets (Details) - USD ($)
$ in Millions
Dec. 25, 2022
Jun. 26, 2022
Acquired Finite-Lived Intangible Assets [Line Items]    
June 25, 2023 (remainder of fiscal 2023) $ 7.8  
June 30, 2024 14.5  
June 29, 2025 13.5  
June 28, 2026 11.7  
June 27, 2027 11.2  
Thereafter 61.3  
Total future amortization expense 120.0 $ 125.4
Acquisition Related Intangibles    
Acquired Finite-Lived Intangible Assets [Line Items]    
June 25, 2023 (remainder of fiscal 2023) 5.5  
June 30, 2024 10.4  
June 29, 2025 10.4  
June 28, 2026 9.3  
June 27, 2027 9.3  
Thereafter 49.4  
Total future amortization expense 94.3 100.0
Patents    
Acquired Finite-Lived Intangible Assets [Line Items]    
June 25, 2023 (remainder of fiscal 2023) 2.3  
June 30, 2024 4.1  
June 29, 2025 3.1  
June 28, 2026 2.4  
June 27, 2027 1.9  
Thereafter 11.9  
Total future amortization expense $ 25.7 $ 25.4
v3.22.4
Long-term Debt - Narrative (Details)
 1 Months Ended 3 Months Ended 6 Months Ended
Nov. 21, 2022
USD ($)
day
$ / shares
Feb. 03, 2022
USD ($)
day
$ / shares
Apr. 21, 2020
USD ($)
day
$ / shares
Aug. 24, 2018
USD ($)
shares
Apr. 30, 2020
USD ($)
Dec. 25, 2022
USD ($)
Dec. 26, 2021
USD ($)
Jun. 28, 2020
USD ($)
Dec. 25, 2022
USD ($)
day
Dec. 26, 2021
USD ($)
Nov. 16, 2022
$ / shares
Jun. 26, 2022
USD ($)
Jan. 31, 2022
$ / shares
Dec. 08, 2021
USD ($)
Debt Instrument [Line Items]                            
Repurchase of aggregate principal amount of debt instrument                 $ 300,000 $ 20,200,000        
Cash paid for capped call transactions                 273,900,000 0        
Cap price (in USD per share) | $ / shares                     $ 202.538   $ 212.04  
Capped call premium (as a percent)                     130.00%   125.00%  
Loss on extinguishment of debt           $ 0 $ (24,800,000)   0 (24,800,000)        
Convertible Notes                            
Debt Instrument [Line Items]                            
Carrying amount of equity component of convertible debt           0     0     $ 333,000,000.0    
Interest expense capitalized           0 2,600,000   $ 0 4,900,000        
Discount and issuance costs capitalized             $ 5,800,000     $ 11,200,000        
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           3,300,000,000     $ 3,300,000,000          
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 issuance of long-term debt       $ 562,100,000                    
Repurchase of aggregate principal amount of debt instrument         $ 150,200,000                  
Conversion rate (shares) | shares       7,100,000                    
Issuance of convertible notes due February 15, 2028       $ 788,000,000                    
Decrease in accrued interest from repurchase of debt         200,000                  
Carrying amount of equity component of convertible debt           110,600,000     110,600,000          
Decrease in carrying amount of equity component of convertible debt               $ 27,700,000            
Fair value of debt instrument                           $ 416,100,000
Debt extinguishment                           $ 24,700,000
Loss on extinguishment of debt           (24,800,000)                
Third party fees           100,000                
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 issuance of long-term debt     $ 561,400,000                      
Conversion price (USD per share) | $ / shares     $ 47.32                      
Scheduled trading days | day     40                      
Threshold percentage of stock price trigger (as a percent)     130.00%                      
Threshold trading days | day     20                      
Threshold consecutive trading days | day     30                      
Redemption price (as a percent)     100.00%                      
Period of reported sale price of common stock | day     5                      
Period of consecutive reported sale price of common stock | day     10                      
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     145,400,000          
Principal amount exceeded on if-converted debt                 303,300,000          
Convertible Notes | Convertible Notes Due 2028                            
Debt Instrument [Line Items]                            
Aggregate principal amount   $ 650,000,000                        
Stated interest rate (as a percent)   0.25%                        
Proceeds from issuance of long-term debt   $ 732,300,000                        
Conversion price (USD per share) | $ / shares   $ 127.22                        
Scheduled trading days | day   40                        
Threshold percentage of stock price trigger (as a percent)   130.00%                        
Threshold trading days | day   20                        
Threshold consecutive trading days | day   30                        
Redemption price (as a percent)   100.00%                        
Period of reported sale price of common stock | day   5                        
Period of consecutive reported sale price of common stock | day   10                        
Percentage of product of last reported price (as a percent)   98.00%                        
Cash paid for capped call transactions   $ 108,200,000                        
Carrying amount of equity component of convertible debt           187,600,000     187,600,000          
Convertible Notes | Convertible Notes Due 2028 | Underwriters                            
Debt Instrument [Line Items]                            
Aggregate principal amount   $ 100,000,000                        
Convertible Notes | Convertible Notes Due 2029                            
Debt Instrument [Line Items]                            
Aggregate principal amount $ 1,525,000,000                          
Stated interest rate (as a percent) 1.875%                          
Proceeds from issuance of long-term debt $ 1,718,600,000                          
Conversion price (USD per share) | $ / shares $ 118.88                          
Scheduled trading days | day 40                          
Threshold percentage of stock price trigger (as a percent) 130.00%                          
Threshold trading days | day 20                          
Threshold consecutive trading days | day 30                          
Redemption price (as a percent) 100.00%                          
Period of reported sale price of common stock | day 5                          
Period of consecutive reported sale price of common stock | day 10                          
Percentage of product of last reported price (as a percent) 98.00%                          
Cash paid for capped call transactions $ 273,900,000                          
Convertible Notes | Convertible Notes Due 2029 | Underwriters                            
Debt Instrument [Line Items]                            
Aggregate principal amount $ 225,000,000                          
Line of Credit                            
Debt Instrument [Line Items]                            
Maximum borrowing capacity           $ 125,000,000     $ 125,000,000          
Minimum required ratio of cash equivalents and marketable securities to outstanding loans and letters of credit obligations           1.25     1.25          
Outstanding borrowings           $ 0     $ 0          
Remaining borrowing capacity           $ 125,000,000     $ 125,000,000          
Average interest rate (as a percent)                 0.00%          
Commitment fee rate (as a percent)                 0.25%          
v3.22.4
Long-term Debt - Liability and Equity Component of Convertible Notes (Details) - Convertible Notes - USD ($)
$ in Millions
Dec. 25, 2022
Jun. 26, 2022
Liability Component:    
Principal $ 3,075.0 $ 1,325.0
Unamortized discount and issuance costs (54.0) (303.4)
Net carrying amount 3,021.0 1,021.6
Equity Component:    
Discount related to value of conversion option 0.0 341.1
Debt issuance costs 0.0 (8.1)
Net carrying amount $ 0.0 $ 333.0
v3.22.4
Long-term Debt - Interest Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 25, 2022
Dec. 26, 2021
Dec. 25, 2022
Dec. 26, 2021
Debt Instrument [Line Items]        
Amortization of discount and debt issuance costs, net of capitalized interest     $ 2.9 $ 9.0
Convertible Notes        
Debt Instrument [Line Items]        
Interest expense, net of capitalized interest $ 5.7 $ 0.8 8.7 1.9
Amortization of discount and debt issuance costs, net of capitalized interest 1.6 3.9 2.9 9.0
Total interest expense, net $ 7.3 $ 4.7 $ 11.6 $ 10.9
v3.22.4
Long-term Debt - Phantom (Details)
Nov. 21, 2022
Feb. 03, 2022
Dec. 24, 2021
Dec. 08, 2021
Apr. 21, 2020
Convertible Notes due September 1, 2023          
Debt Instrument [Line Items]          
Conversion ratio (as a percent)       1.00272222  
Convertible Notes due September 1, 2023 | Convertible Notes          
Debt Instrument [Line Items]          
Conversion rate     16.6745    
Convertible Notes due May 1, 2026 | Convertible Notes          
Debt Instrument [Line Items]          
Conversion ratio (as a percent)         0.0211346
Convertible Notes Due 2028 | Convertible Notes          
Debt Instrument [Line Items]          
Conversion ratio (as a percent)   0.0078602      
Convertible Notes Due 2029 | Convertible Notes          
Debt Instrument [Line Items]          
Conversion ratio (as a percent) 0.0084118        
v3.22.4
Loss Per Share - Summary (Details) - USD ($)
$ / shares in Units, shares in Thousands, $ in Millions
 3 Months Ended 6 Months Ended
Dec. 25, 2022
Sep. 25, 2022
Dec. 26, 2021
Sep. 26, 2021
Dec. 25, 2022
Dec. 26, 2021
Earnings Per Share [Abstract]            
Net loss $ (90.9) $ (26.2) $ (96.7) $ (70.1) $ (117.1) $ (166.8)
Weighted average shares - basic (shares) 124,344   117,218   124,190 117,068
Weighted average shares - diluted (shares) 124,344   117,218   124,190 117,068
Net loss attributable to controlling interest, basic (USD per share) $ (0.73)   $ (0.82)   $ (0.94) $ (1.42)
Net loss attributable to controlling interest, diluted (USD per share) $ (0.73)   $ (0.82)   $ (0.94) $ (1.42)
v3.22.4
Loss Per Share - Narrative (Details) - shares
shares in Millions
 3 Months Ended 6 Months Ended
Dec. 25, 2022
Dec. 26, 2021
Dec. 25, 2022
Dec. 26, 2021
Earnings Per Share [Abstract]        
Anti-dilutive potential common shares excluded from diluted earnings per share calculation (shares) 2.8 3.1 2.8 3.3
v3.22.4
Stock-Based Compensation - Narrative (Details)
 6 Months Ended
Dec. 25, 2022
compensationPlan
stockPurchase
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
Number of equity-based compensation plans | compensationPlan 1
Duration of purchase period for ESPP (in months) 12 months
Duration of single purchase period for ESPP (in months) 6 months
Employee Stock Purchase Plan  
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]  
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
Discount from market price, beginning of participation period or purchase date (as a percent) 15.00%
v3.22.4
Stock-Based Compensation - Stock Option Awards Outstanding (Details)
shares in Thousands
 6 Months Ended
Dec. 25, 2022
$ / shares
shares
Number of Shares  
Outstanding at beginning of period (shares) | shares 69
Granted (shares) | shares 0
Exercised (shares) | shares (28)
Forfeited or expired (shares) | shares (1)
Outstanding at end of period (shares) | shares 40
Weighted Average Exercise Price  
Outstanding at beginning of period (USD per share) | $ / shares $ 25.12
Granted (USD per share) | $ / shares 0
Exercised (USD per share) | $ / shares 25.46
Forfeited or expired (USD per share) | $ / shares 26.07
Outstanding at end of period (USD per share) | $ / shares $ 24.86
v3.22.4
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
 6 Months Ended
Dec. 25, 2022
$ / shares
shares
Number of RSUs    
Nonvested at beginning of period (shares) | shares 1,894
Granted (shares) | shares 1,225
Vested (shares) | shares (629)
Forfeited (shares) | shares (156)
Nonvested at end of period (shares) | shares 2,334
Weighted Average Grant-Date Fair Value  
Nonvested at beginning of period (USD per share) | $ / shares $ 75.67
Granted (USD per share) | $ / shares 88.41
Vested (USD per share) | $ / shares 66.52
Forfeited (USD per share) | $ / shares 71.44
Nonvested at end of period (USD per share) | $ / shares $ 84.25
v3.22.4
Stock-Based Compensation - Total Stock-Based Compensation Expense (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 25, 2022
Dec. 26, 2021
Dec. 25, 2022
Dec. 26, 2021
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense $ 21.2 $ 15.4 $ 43.2 $ 30.0
Cost of revenue, net        
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense 5.8 4.2 11.9 7.3
Research and development        
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense 5.1 2.6 8.6 5.0
Sales, general and administrative        
Employee Service share-based Compensation, Allocation of Recognized Period Costs [Line Items]        
Total stock-based compensation expense $ 10.3 $ 8.6 $ 22.7 $ 17.7
v3.22.4
Income Taxes - Narrative (Details) - USD ($)
$ in Millions
Dec. 25, 2022
Jun. 26, 2022
Unrecognized Tax Benefits, Income Tax Penalties and Interest Expense [Abstract]    
Unrecognized tax benefits $ 7.2 $ 7.2
Estimated change in gross unrecognized tax benefits $ 1.7  
v3.22.4
Commitments and Contingencies - Narrative (Details)
 3 Months Ended 6 Months Ended 21 Months Ended
Jun. 28, 2020
endowedFacultyChair
Dec. 25, 2022
USD ($)
Dec. 26, 2021
USD ($)
Dec. 25, 2022
USD ($)
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       $ 334,900,000
Reimbursement of property and equipment purchases from long-term incentive agreement   $ 70,700,000 $ 50,800,000 220,400,000
Reimbursement of property and equipment purchases from long-term incentive agreement, receivables       114,500,000
Minimum        
Loss Contingencies [Line Items]        
Annual cost of GDA   2,700,000    
Maximum        
Loss Contingencies [Line Items]        
Potential total grant amount of GDA   500,000,000   $ 500,000,000
Annual cost of GDA   $ 5,200,000    
v3.22.4
Restructuring - Narrative (Details) - USD ($)
$ in Millions
 3 Months Ended 6 Months Ended
Dec. 25, 2022
Dec. 26, 2021
Dec. 25, 2022
Dec. 26, 2021
Restructuring Cost and Reserve [Line Items]        
Restructuring costs $ 0.2 $ 2.1 $ 0.2 $ 4.7
Corporate Restructuring | Employee Severance        
Restructuring Cost and Reserve [Line Items]        
Restructuring costs 0.2   0.2  
Restructuring costs accrued $ 0.8   $ 0.8  
Factory Optimization        
Restructuring Cost and Reserve [Line Items]        
Restructuring costs   1.8   3.4
Factory Optimization | Facility Closing        
Restructuring Cost and Reserve [Line Items]        
Restructuring costs   $ 0.3   $ 1.3