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Share Name | Share Symbol | Market | Type |
---|---|---|---|
Lam Research Corporation | NASDAQ:LRCX | NASDAQ | Common Stock |
Price Change | % Change | Share Price | Bid Price | Offer Price | High Price | Low Price | Open Price | Shares Traded | Last Trade | |
---|---|---|---|---|---|---|---|---|---|---|
-21.86 | -2.44% | 872.555 | 872.28 | 873.02 | 890.00 | 863.95 | 883.08 | 393,979 | 18:51:32 |
|
☒
|
QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
☐
|
TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
|
Delaware
|
|
94-2634797
|
(State or other jurisdiction of incorporation or organization)
|
|
(I.R.S. Employer Identification No.)
|
4650 Cushing Parkway,
|
Fremont,
|
California
|
|
94538
|
(Address of principal executive offices)
|
|
(Zip Code)
|
Title of each class
|
Trading Symbol(s)
|
Name of each exchange on which registered
|
Common Stock, Par Value $0.001 Per Share
|
LRCX
|
The Nasdaq Stock Market
|
|
|
(Nasdaq Global Select Market)
|
Large accelerated filer
|
|
☒
|
|
Accelerated filer
|
|
☐
|
|
|
|
|
|||
Non-accelerated filer
|
|
☐
|
|
Smaller reporting company
|
|
☐
|
|
|
|
|
|
|
|
|
|
|
|
Emerging growth company
|
|
☐
|
|
|
|
Page No.
|
|
|
|
|
|
|
Item 1.
|
|
|
|
||
|
||
|
||
|
||
|
||
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
|
|
|
|
|
|
|
|
|
Item 1.
|
||
Item 1A.
|
||
Item 2.
|
||
Item 3.
|
||
Item 4.
|
||
Item 5.
|
||
Item 6.
|
||
ITEM 1.
|
Financial Statements
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
December 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
||||||||
Revenue
|
$
|
2,583,501
|
|
|
$
|
2,522,673
|
|
|
$
|
4,749,247
|
|
|
$
|
4,853,364
|
|
Cost of goods sold
|
1,403,857
|
|
|
1,377,640
|
|
|
2,587,893
|
|
|
2,650,133
|
|
||||
Gross margin
|
1,179,644
|
|
|
1,145,033
|
|
|
2,161,354
|
|
|
2,203,231
|
|
||||
Research and development
|
318,861
|
|
|
285,556
|
|
|
605,688
|
|
|
577,228
|
|
||||
Selling, general, and administrative
|
174,272
|
|
|
169,098
|
|
|
331,700
|
|
|
343,873
|
|
||||
Total operating expenses
|
493,133
|
|
|
454,654
|
|
|
937,388
|
|
|
921,101
|
|
||||
Operating income
|
686,511
|
|
|
690,379
|
|
|
1,223,966
|
|
|
1,282,130
|
|
||||
Other expense, net
|
(13,924
|
)
|
|
(30,649
|
)
|
|
(26,652
|
)
|
|
(31,026
|
)
|
||||
Income before income taxes
|
672,587
|
|
|
659,730
|
|
|
1,197,314
|
|
|
1,251,104
|
|
||||
Income tax expense
|
(158,077
|
)
|
|
(90,875
|
)
|
|
(217,015
|
)
|
|
(148,889
|
)
|
||||
Net income
|
$
|
514,510
|
|
|
$
|
568,855
|
|
|
$
|
980,299
|
|
|
$
|
1,102,215
|
|
Net income per share:
|
|
|
|
|
|
|
|
||||||||
Basic
|
$
|
3.57
|
|
|
$
|
3.67
|
|
|
$
|
6.79
|
|
|
$
|
7.10
|
|
Diluted
|
$
|
3.43
|
|
|
$
|
3.51
|
|
|
$
|
6.52
|
|
|
$
|
6.73
|
|
Number of shares used in per share calculations:
|
|
|
|
|
|
|
|
||||||||
Basic
|
143,987
|
|
|
155,022
|
|
|
144,330
|
|
|
155,340
|
|
||||
Diluted
|
150,097
|
|
|
162,170
|
|
|
150,389
|
|
|
163,749
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
December 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
||||||||
Net income
|
$
|
514,510
|
|
|
$
|
568,855
|
|
|
$
|
980,299
|
|
|
$
|
1,102,215
|
|
Other comprehensive income (loss), net of tax:
|
|
|
|
|
|
|
|
||||||||
Foreign currency translation adjustment
|
7,511
|
|
|
(7,268
|
)
|
|
(1,187
|
)
|
|
(13,529
|
)
|
||||
Cash flow hedges:
|
|
|
|
|
|
|
|
||||||||
Net unrealized gains during the period
|
4,079
|
|
|
5,122
|
|
|
3,388
|
|
|
11,988
|
|
||||
Net losses (gains) reclassified into earnings
|
1,384
|
|
|
(5,726
|
)
|
|
2,734
|
|
|
(4,578
|
)
|
||||
|
5,463
|
|
|
(604
|
)
|
|
6,122
|
|
|
7,410
|
|
||||
Available-for-sale investments:
|
|
|
|
|
|
|
|
||||||||
Net unrealized (losses) gains during the period
|
(1,713
|
)
|
|
585
|
|
|
(2,713
|
)
|
|
298
|
|
||||
Net losses (gains) reclassified into earnings
|
593
|
|
|
(51
|
)
|
|
983
|
|
|
(54
|
)
|
||||
|
(1,120
|
)
|
|
534
|
|
|
(1,730
|
)
|
|
244
|
|
||||
Defined benefit plans, net change in unrealized component
|
459
|
|
|
375
|
|
|
578
|
|
|
(1,368
|
)
|
||||
Other comprehensive income (loss), net of tax
|
12,313
|
|
|
(6,963
|
)
|
|
3,783
|
|
|
(7,243
|
)
|
||||
Comprehensive income
|
$
|
526,823
|
|
|
$
|
561,892
|
|
|
$
|
984,082
|
|
|
$
|
1,094,972
|
|
|
December 29,
2019 |
|
June 30,
2019 |
||||
|
(unaudited)
|
|
(1)
|
||||
ASSETS
|
|
|
|
||||
Cash and cash equivalents
|
$
|
3,035,887
|
|
|
$
|
3,658,219
|
|
Investments
|
1,647,867
|
|
|
1,772,984
|
|
||
Accounts receivable, less allowance for doubtful accounts of $5,357 as of December 29, 2019, and $5,021 as of June 30, 2019
|
2,030,490
|
|
|
1,455,522
|
|
||
Inventories
|
1,528,620
|
|
|
1,540,140
|
|
||
Prepaid expenses and other current assets
|
212,101
|
|
|
133,544
|
|
||
Total current assets
|
8,454,965
|
|
|
8,560,409
|
|
||
Property and equipment, net
|
1,047,254
|
|
|
1,059,077
|
|
||
Restricted cash and investments
|
253,907
|
|
|
255,177
|
|
||
Goodwill
|
1,484,824
|
|
|
1,484,597
|
|
||
Intangible assets, net
|
193,116
|
|
|
216,950
|
|
||
Other assets
|
480,056
|
|
|
425,123
|
|
||
Total assets
|
$
|
11,914,122
|
|
|
$
|
12,001,333
|
|
LIABILITIES AND STOCKHOLDERS’ EQUITY
|
|
|
|
||||
Trade accounts payable
|
$
|
452,779
|
|
|
$
|
376,561
|
|
Accrued expenses and other current liabilities
|
1,114,013
|
|
|
946,641
|
|
||
Deferred profit
|
366,417
|
|
|
381,317
|
|
||
Current portion of long-term debt and finance lease obligations
|
632,292
|
|
|
667,131
|
|
||
Total current liabilities
|
2,565,501
|
|
|
2,371,650
|
|
||
Long-term debt and finance lease obligations, less current portion
|
3,786,067
|
|
|
3,822,768
|
|
||
Income taxes payable
|
872,778
|
|
|
892,790
|
|
||
Other long-term liabilities
|
272,043
|
|
|
190,821
|
|
||
Total liabilities
|
7,496,389
|
|
|
7,278,029
|
|
||
Commitments and contingencies
|
|
|
|
||||
Temporary equity, convertible notes
|
38,304
|
|
|
49,439
|
|
||
Stockholders’ equity:
|
|
|
|
||||
Preferred stock, at par value of $0.001 per share; authorized, 5,000 shares, none outstanding
|
—
|
|
|
—
|
|
||
Common stock, at par value of $0.001 per share; authorized, 400,000 shares; issued and outstanding, 142,462 shares at December 29, 2019, and 144,433 shares at June 30, 2019
|
142
|
|
|
144
|
|
||
Additional paid-in capital
|
6,528,821
|
|
|
6,409,405
|
|
||
Treasury stock, at cost; 143,917 shares at December 29, 2019, and 140,573 shares at June 30, 2019
|
(12,673,292
|
)
|
|
(11,602,573
|
)
|
||
Accumulated other comprehensive loss
|
(60,247
|
)
|
|
(64,030
|
)
|
||
Retained earnings
|
10,584,005
|
|
|
9,930,919
|
|
||
Total stockholders’ equity
|
4,379,429
|
|
|
4,673,865
|
|
||
Total liabilities and stockholders’ equity
|
$
|
11,914,122
|
|
|
$
|
12,001,333
|
|
|
Six Months Ended
|
||||||
|
December 29,
2019 |
|
December 23,
2018 |
||||
CASH FLOWS FROM OPERATING ACTIVITIES:
|
|
|
|
||||
Net income
|
$
|
980,299
|
|
|
$
|
1,102,215
|
|
Adjustments to reconcile net income to net cash provided by operating activities:
|
|
|
|
||||
Depreciation and amortization
|
130,194
|
|
|
161,599
|
|
||
Deferred income taxes
|
74,516
|
|
|
(62,704
|
)
|
||
Equity-based compensation expense
|
88,630
|
|
|
89,149
|
|
||
Amortization of note discounts and issuance costs
|
3,250
|
|
|
2,276
|
|
||
Other, net
|
3,699
|
|
|
848
|
|
||
Changes in operating assets and liabilities
|
(508,613
|
)
|
|
69,322
|
|
||
Net cash provided by operating activities
|
771,975
|
|
|
1,362,705
|
|
||
CASH FLOWS FROM INVESTING ACTIVITIES:
|
|
|
|
||||
Capital expenditures and intangible assets
|
(101,310
|
)
|
|
(162,021
|
)
|
||
Purchases of available-for-sale securities
|
(1,619,695
|
)
|
|
(785,188
|
)
|
||
Maturities of available-for-sales securities
|
952,327
|
|
|
364,720
|
|
||
Sales of available-for-sale securities
|
795,559
|
|
|
581,108
|
|
||
Other, net
|
(10,528
|
)
|
|
(4,019
|
)
|
||
Net cash provided by (used for) investing activities
|
16,353
|
|
|
(5,400
|
)
|
||
CASH FLOWS FROM FINANCING ACTIVITIES:
|
|
|
|
||||
Principal payments on debt
|
(46,952
|
)
|
|
(86,271
|
)
|
||
Net repayments of commercial paper
|
—
|
|
|
(359,604
|
)
|
||
Treasury stock purchases
|
(1,083,199
|
)
|
|
(1,737,414
|
)
|
||
Dividends paid
|
(325,589
|
)
|
|
(342,279
|
)
|
||
Reissuance of treasury stock related to employee stock purchase plan
|
38,447
|
|
|
32,920
|
|
||
Proceeds from issuance of common stock
|
4,501
|
|
|
109
|
|
||
Other, net
|
—
|
|
|
(13,207
|
)
|
||
Net cash used for financing activities
|
(1,412,792
|
)
|
|
(2,505,746
|
)
|
||
Effect of exchange rate changes on cash, cash equivalents, and restricted cash
|
862
|
|
|
(5,032
|
)
|
||
Net decrease in cash, cash equivalents, and restricted cash
|
(623,602
|
)
|
|
(1,153,473
|
)
|
||
Cash, cash equivalents, and restricted cash at beginning of period
|
3,913,396
|
|
|
4,768,558
|
|
||
Cash, cash equivalents, and restricted cash at end of period
|
$
|
3,289,794
|
|
|
$
|
3,615,085
|
|
Schedule of non-cash transactions:
|
|
|
|
||||
Accrued payables for stock repurchases
|
289
|
|
|
4
|
|
||
Accrued payables for capital expenditures
|
27,966
|
|
|
36,582
|
|
||
Dividends payable
|
163,510
|
|
|
171,196
|
|
||
Transfers of inventory to property and equipment, net
|
27,472
|
|
|
33,723
|
|
||
|
|
|
|
||||
Reconciliation of cash, cash equivalents, and restricted cash
|
December 29,
2019 |
|
December 23,
2018 |
||||
Cash and cash equivalents
|
$
|
3,035,887
|
|
|
$
|
3,359,793
|
|
Restricted cash and investments
|
253,907
|
|
|
255,292
|
|
||
Total cash, cash equivalents, and restricted cash
|
$
|
3,289,794
|
|
|
$
|
3,615,085
|
|
|
Three Months Ended
|
|||||||||||||||||||||||||
|
December 29, 2019
|
|||||||||||||||||||||||||
|
Common
Stock Shares |
|
Common
Stock |
|
Additional
Paid-in Capital |
|
Treasury
Stock |
|
Accumulated
Other Comprehensive Loss |
|
Retained
Earnings |
|
Total
|
|||||||||||||
Balance at September 29, 2019
|
144,871
|
|
|
$
|
145
|
|
|
$
|
6,456,492
|
|
|
$
|
(11,680,689
|
)
|
|
$
|
(72,560
|
)
|
|
$
|
10,233,005
|
|
|
$
|
4,936,393
|
|
Sale of common stock
|
72
|
|
|
—
|
|
|
632
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
632
|
|
||||||
Purchase of treasury stock
|
(3,242
|
)
|
|
(3
|
)
|
|
—
|
|
|
(1,005,340
|
)
|
|
—
|
|
|
—
|
|
|
(1,005,343
|
)
|
||||||
Reissuance of treasury stock
|
296
|
|
|
—
|
|
|
25,710
|
|
|
12,737
|
|
|
—
|
|
|
—
|
|
|
38,447
|
|
||||||
Equity-based compensation expense
|
—
|
|
|
—
|
|
|
45,725
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
45,725
|
|
||||||
Effect of conversion of convertible notes
|
465
|
|
|
—
|
|
|
(3,987
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(3,987
|
)
|
||||||
Reclassification from temporary to permanent equity
|
—
|
|
|
—
|
|
|
4,249
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,249
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
514,510
|
|
|
514,510
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
12,313
|
|
|
—
|
|
|
12,313
|
|
||||||
Cash dividends declared ($1.15 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(163,510
|
)
|
|
(163,510
|
)
|
||||||
Balance at December 29, 2019
|
142,462
|
|
|
$
|
142
|
|
|
$
|
6,528,821
|
|
|
$
|
(12,673,292
|
)
|
|
$
|
(60,247
|
)
|
|
$
|
10,584,005
|
|
|
$
|
4,379,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Six Months Ended
|
|||||||||||||||||||||||||
|
December 29, 2019
|
|||||||||||||||||||||||||
|
Common
Stock Shares |
|
Common
Stock |
|
Additional
Paid-in Capital |
|
Treasury
Stock |
|
Accumulated
Other Comprehensive Loss |
|
Retained
Earnings |
|
Total
|
|||||||||||||
Balance at June 30, 2019
|
144,433
|
|
|
$
|
144
|
|
|
$
|
6,409,405
|
|
|
$
|
(11,602,573
|
)
|
|
$
|
(64,030
|
)
|
|
$
|
9,930,919
|
|
|
$
|
4,673,865
|
|
Sale of common stock
|
183
|
|
|
—
|
|
|
4,501
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
4,501
|
|
||||||
Purchase of treasury stock
|
(3,639
|
)
|
|
(3
|
)
|
|
—
|
|
|
(1,083,456
|
)
|
|
—
|
|
|
—
|
|
|
(1,083,459
|
)
|
||||||
Reissuance of treasury stock
|
296
|
|
|
—
|
|
|
25,710
|
|
|
12,737
|
|
|
—
|
|
|
—
|
|
|
38,447
|
|
||||||
Equity-based compensation expense
|
—
|
|
|
—
|
|
|
88,630
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
88,630
|
|
||||||
Effect of conversion of convertible notes
|
1,189
|
|
|
1
|
|
|
(10,560
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(10,559
|
)
|
||||||
Reclassification from temporary to permanent equity
|
—
|
|
|
—
|
|
|
11,135
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
11,135
|
|
||||||
Adoption of ASU 2016-02
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,018
|
|
|
3,018
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
980,299
|
|
|
980,299
|
|
||||||
Other comprehensive income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
3,783
|
|
|
—
|
|
|
3,783
|
|
||||||
Cash dividends declared ($2.30 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(330,231
|
)
|
|
(330,231
|
)
|
||||||
Balance at December 29, 2019
|
142,462
|
|
|
$
|
142
|
|
|
$
|
6,528,821
|
|
|
$
|
(12,673,292
|
)
|
|
$
|
(60,247
|
)
|
|
$
|
10,584,005
|
|
|
$
|
4,379,429
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|||||||||||||||||||||||||
|
Three Months Ended
|
|||||||||||||||||||||||||
|
December 23, 2018
|
|||||||||||||||||||||||||
|
Common
Stock Shares |
|
Common
Stock |
|
Additional
Paid-in Capital |
|
Treasury
Stock |
|
Accumulated
Other Comprehensive Loss |
|
Retained
Earnings |
|
Total
|
|||||||||||||
Balance at September 23, 2018
|
153,384
|
|
|
$
|
153
|
|
|
$
|
6,195,024
|
|
|
$
|
(9,582,409
|
)
|
|
$
|
(57,729
|
)
|
|
$
|
8,767,786
|
|
|
$
|
5,322,825
|
|
Sale of common stock
|
47
|
|
|
—
|
|
|
109
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
109
|
|
||||||
Purchase of treasury stock
|
(1,683
|
)
|
|
(1
|
)
|
|
—
|
|
|
(1,360
|
)
|
|
—
|
|
|
—
|
|
|
(1,361
|
)
|
||||||
Reissuance of treasury stock
|
273
|
|
|
—
|
|
|
22,637
|
|
|
10,283
|
|
|
—
|
|
|
—
|
|
|
32,920
|
|
||||||
Equity-based compensation expense
|
—
|
|
|
—
|
|
|
38,806
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
38,806
|
|
||||||
Effect of conversion of convertible notes
|
141
|
|
|
—
|
|
|
(1,435
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(1,435
|
)
|
||||||
Exercise of warrants
|
1,799
|
|
|
2
|
|
|
(2
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||
Reclassification from temporary to permanent equity
|
—
|
|
|
—
|
|
|
1,803
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,803
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
568,855
|
|
|
568,855
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(6,963
|
)
|
|
—
|
|
|
(6,963
|
)
|
||||||
Cash dividends declared ($1.10 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(171,196
|
)
|
|
(171,196
|
)
|
||||||
Balance at December 23, 2018
|
153,961
|
|
|
$
|
154
|
|
|
$
|
6,256,942
|
|
|
$
|
(9,573,486
|
)
|
|
$
|
(64,692
|
)
|
|
$
|
9,165,445
|
|
|
$
|
5,784,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
Six Months Ended
|
|||||||||||||||||||||||||
|
December 23, 2018
|
|||||||||||||||||||||||||
|
Common
Stock Shares |
|
Common
Stock |
|
Additional
Paid-in Capital |
|
Treasury
Stock |
|
Accumulated
Other Comprehensive Loss |
|
Retained
Earnings |
|
Total
|
|||||||||||||
Balance at June 24, 2018
|
156,892
|
|
|
$
|
157
|
|
|
$
|
6,144,425
|
|
|
$
|
(7,846,476
|
)
|
|
$
|
(57,449
|
)
|
|
$
|
8,261,194
|
|
|
$
|
6,501,851
|
|
Sale of common stock
|
79
|
|
|
—
|
|
|
109
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
109
|
|
||||||
Purchase of treasury stock
|
(9,491
|
)
|
|
(9
|
)
|
|
—
|
|
|
(1,737,293
|
)
|
|
—
|
|
|
—
|
|
|
(1,737,302
|
)
|
||||||
Reissuance of treasury stock
|
273
|
|
|
—
|
|
|
22,637
|
|
|
10,283
|
|
|
—
|
|
|
—
|
|
|
32,920
|
|
||||||
Equity-based compensation expense
|
—
|
|
|
—
|
|
|
89,149
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
89,149
|
|
||||||
Effect of conversion of convertible notes
|
2,103
|
|
|
2
|
|
|
(20,549
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(20,547
|
)
|
||||||
Exercise of warrants
|
4,105
|
|
|
4
|
|
|
(12
|
)
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(8
|
)
|
||||||
Reclassification from temporary to permanent equity
|
—
|
|
|
—
|
|
|
21,183
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
21,183
|
|
||||||
Adoption of ASU 2014-09
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
139,355
|
|
|
139,355
|
|
||||||
Adoption of ASU 2016-16
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(443
|
)
|
|
(443
|
)
|
||||||
Adoption of ASU 2018-02
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(2,227
|
)
|
|
2,227
|
|
|
—
|
|
||||||
Net income
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
1,102,215
|
|
|
1,102,215
|
|
||||||
Other comprehensive loss
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(5,016
|
)
|
|
—
|
|
|
(5,016
|
)
|
||||||
Cash dividends declared ($2.20 per common share)
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
(339,103
|
)
|
|
(339,103
|
)
|
||||||
Balance at December 23, 2018
|
153,961
|
|
|
$
|
154
|
|
|
$
|
6,256,942
|
|
|
$
|
(9,573,486
|
)
|
|
$
|
(64,692
|
)
|
|
$
|
9,165,445
|
|
|
$
|
5,784,363
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|||||||||||||
|
|
Less than 1 Year
|
|
1-3 Years
|
|
More than 3 Years
|
|
Total
|
||||||||
|
(In thousands)
|
||||||||||||||
Deferred revenue
|
$
|
372,927
|
|
|
$
|
37,834
|
|
(1)
|
$
|
—
|
|
|
$
|
410,761
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
December 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
|||||||||
|
(In thousands)
|
||||||||||||||
China
|
$
|
758,286
|
|
|
$
|
361,782
|
|
|
$
|
1,349,954
|
|
|
$
|
955,613
|
|
Taiwan
|
680,871
|
|
|
425,533
|
|
|
1,072,363
|
|
|
705,583
|
|
||||
Korea
|
463,178
|
|
|
631,502
|
|
|
914,661
|
|
|
1,011,272
|
|
||||
United States
|
223,725
|
|
|
135,696
|
|
|
407,384
|
|
|
255,801
|
|
||||
Japan
|
208,240
|
|
|
691,817
|
|
|
481,913
|
|
|
1,361,857
|
|
||||
Southeast Asia
|
184,168
|
|
|
165,204
|
|
|
397,923
|
|
|
363,340
|
|
||||
Europe
|
65,033
|
|
|
111,139
|
|
|
125,049
|
|
|
199,898
|
|
||||
|
$
|
2,583,501
|
|
|
$
|
2,522,673
|
|
|
$
|
4,749,247
|
|
|
$
|
4,853,364
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
December 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
||||
Memory
|
52
|
%
|
|
79
|
%
|
|
58
|
%
|
|
78
|
%
|
Foundry
|
36
|
%
|
|
13
|
%
|
|
31
|
%
|
|
15
|
%
|
Logic/integrated device manufacturing
|
12
|
%
|
|
8
|
%
|
|
11
|
%
|
|
7
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
December 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
||||||||
|
(in thousands)
|
||||||||||||||
Equity-based compensation expense
|
$
|
45,725
|
|
|
$
|
38,806
|
|
|
$
|
88,630
|
|
|
$
|
89,149
|
|
Income tax benefit recognized related to equity-based compensation expense
|
$
|
4,461
|
|
|
$
|
5,763
|
|
|
$
|
14,279
|
|
|
$
|
13,867
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
December 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
||||||||
|
(in thousands)
|
||||||||||||||
Interest income
|
$
|
25,454
|
|
|
$
|
17,809
|
|
|
$
|
57,238
|
|
|
$
|
36,742
|
|
Interest expense
|
(42,615
|
)
|
|
(19,784
|
)
|
|
(86,610
|
)
|
|
(41,572
|
)
|
||||
Gains (losses) on deferred compensation plan-related assets, net
|
14,129
|
|
|
(22,374
|
)
|
|
13,693
|
|
|
(17,160
|
)
|
||||
Foreign exchange (losses) gains, net
|
(2,287
|
)
|
|
2,581
|
|
|
(2,816
|
)
|
|
2,632
|
|
||||
Other, net
|
(8,605
|
)
|
|
(8,881
|
)
|
|
(8,157
|
)
|
|
(11,668
|
)
|
||||
|
$
|
(13,924
|
)
|
|
$
|
(30,649
|
)
|
|
$
|
(26,652
|
)
|
|
$
|
(31,026
|
)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
December 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
||||||||
|
(in thousands, except per share data)
|
||||||||||||||
Numerator:
|
|
|
|
|
|
|
|
||||||||
Net income
|
$
|
514,510
|
|
|
$
|
568,855
|
|
|
$
|
980,299
|
|
|
$
|
1,102,215
|
|
Denominator:
|
|
|
|
|
|
|
|
||||||||
Basic average shares outstanding
|
143,987
|
|
|
155,022
|
|
|
144,330
|
|
|
155,340
|
|
||||
Effect of potential dilutive securities:
|
|
|
|
|
|
|
|
||||||||
Employee stock plans
|
1,528
|
|
|
1,435
|
|
|
1,359
|
|
|
1,487
|
|
||||
Convertible notes
|
4,582
|
|
|
5,713
|
|
|
4,700
|
|
|
5,894
|
|
||||
Warrants
|
—
|
|
|
—
|
|
|
—
|
|
|
1,028
|
|
||||
Diluted average shares outstanding
|
150,097
|
|
|
162,170
|
|
|
150,389
|
|
|
163,749
|
|
||||
Net income per share - basic
|
$
|
3.57
|
|
|
$
|
3.67
|
|
|
$
|
6.79
|
|
|
$
|
7.10
|
|
Net income per share - diluted
|
$
|
3.43
|
|
|
$
|
3.51
|
|
|
$
|
6.52
|
|
|
$
|
6.73
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||
|
December 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
||||
|
(in thousands)
|
||||||||||
Options and RSUs
|
3
|
|
|
227
|
|
|
4
|
|
|
890
|
|
|
December 29, 2019
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
(Reported Within)
|
||||||||||||||||||||||
|
Cost
|
|
Unrealized
Gain |
|
Unrealized
(Loss) |
|
Fair Value
|
|
Cash and
Cash Equivalents |
|
Investments
|
|
Restricted
Cash & Investments |
|
Other
Assets |
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
Cash
|
$
|
580,318
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
580,318
|
|
|
$
|
576,439
|
|
|
$
|
—
|
|
|
$
|
3,879
|
|
|
$
|
—
|
|
Time deposit
|
1,606,528
|
|
|
—
|
|
|
—
|
|
|
1,606,528
|
|
|
1,356,500
|
|
|
—
|
|
|
250,028
|
|
|
—
|
|
||||||||
Level 1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Money market funds
|
977,274
|
|
|
—
|
|
|
—
|
|
|
977,274
|
|
|
977,274
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
U.S. Treasury and agencies
|
476,406
|
|
|
116
|
|
|
(54
|
)
|
|
476,468
|
|
|
—
|
|
|
476,468
|
|
|
—
|
|
|
—
|
|
||||||||
Mutual funds
|
75,244
|
|
|
5,792
|
|
|
(452
|
)
|
|
80,584
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
80,584
|
|
||||||||
Level 1 Total
|
1,528,924
|
|
|
5,908
|
|
|
(506
|
)
|
|
1,534,326
|
|
|
977,274
|
|
|
476,468
|
|
|
—
|
|
|
80,584
|
|
||||||||
Level 2:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Government-sponsored enterprises
|
9,819
|
|
|
—
|
|
|
(3
|
)
|
|
9,816
|
|
|
2,799
|
|
|
7,017
|
|
|
—
|
|
|
—
|
|
||||||||
Foreign government bonds
|
30,507
|
|
|
2
|
|
|
(6
|
)
|
|
30,503
|
|
|
—
|
|
|
30,503
|
|
|
—
|
|
|
—
|
|
||||||||
Corporate notes and bonds
|
1,225,526
|
|
|
742
|
|
|
(444
|
)
|
|
1,225,824
|
|
|
122,875
|
|
|
1,102,949
|
|
|
—
|
|
|
—
|
|
||||||||
Mortgage backed securities — residential
|
4,172
|
|
|
8
|
|
|
—
|
|
|
4,180
|
|
|
—
|
|
|
4,180
|
|
|
—
|
|
|
—
|
|
||||||||
Mortgage backed securities — commercial
|
26,751
|
|
|
34
|
|
|
(35
|
)
|
|
26,750
|
|
|
—
|
|
|
26,750
|
|
|
—
|
|
|
—
|
|
||||||||
Level 2 Total
|
1,296,775
|
|
|
786
|
|
|
(488
|
)
|
|
1,297,073
|
|
|
125,674
|
|
|
1,171,399
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
$
|
5,012,545
|
|
|
$
|
6,694
|
|
|
$
|
(994
|
)
|
|
$
|
5,018,245
|
|
|
$
|
3,035,887
|
|
|
$
|
1,647,867
|
|
|
$
|
253,907
|
|
|
$
|
80,584
|
|
|
June 30, 2019
|
||||||||||||||||||||||||||||||
|
|
|
|
|
|
|
|
|
(Reported Within)
|
||||||||||||||||||||||
|
Cost
|
|
Unrealized
Gain |
|
Unrealized
(Loss) |
|
Fair Value
|
|
Cash and
Cash Equivalents |
|
Investments
|
|
Restricted
Cash & Investments |
|
Other
Assets |
||||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||||||
Cash
|
$
|
467,460
|
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
467,460
|
|
|
$
|
462,310
|
|
|
$
|
—
|
|
|
$
|
5,150
|
|
|
$
|
—
|
|
Time deposit
|
1,563,686
|
|
|
—
|
|
|
—
|
|
|
1,563,686
|
|
|
1,313,659
|
|
|
—
|
|
|
250,027
|
|
|
—
|
|
||||||||
Level 1:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Money market funds
|
1,644,659
|
|
|
—
|
|
|
—
|
|
|
1,644,659
|
|
|
1,644,659
|
|
|
—
|
|
|
—
|
|
|
—
|
|
||||||||
U.S. Treasury and agencies
|
465,655
|
|
|
283
|
|
|
(24
|
)
|
|
465,914
|
|
|
86,981
|
|
|
378,933
|
|
|
—
|
|
|
—
|
|
||||||||
Mutual funds
|
76,961
|
|
|
1,063
|
|
|
(283
|
)
|
|
77,741
|
|
|
—
|
|
|
—
|
|
|
—
|
|
|
77,741
|
|
||||||||
Level 1 Total
|
2,187,275
|
|
|
1,346
|
|
|
(307
|
)
|
|
2,188,314
|
|
|
1,731,640
|
|
|
378,933
|
|
|
—
|
|
|
77,741
|
|
||||||||
Level 2:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||||
Government-sponsored enterprises
|
16,005
|
|
|
5
|
|
|
(41
|
)
|
|
15,969
|
|
|
—
|
|
|
15,969
|
|
|
—
|
|
|
—
|
|
||||||||
Foreign government bonds
|
24,408
|
|
|
35
|
|
|
—
|
|
|
24,443
|
|
|
—
|
|
|
24,443
|
|
|
—
|
|
|
—
|
|
||||||||
Corporate notes and bonds
|
1,466,167
|
|
|
2,310
|
|
|
(99
|
)
|
|
1,468,378
|
|
|
150,610
|
|
|
1,317,768
|
|
|
—
|
|
|
—
|
|
||||||||
Mortgage backed securities — residential
|
6,148
|
|
|
—
|
|
|
(4
|
)
|
|
6,144
|
|
|
—
|
|
|
6,144
|
|
|
—
|
|
|
—
|
|
||||||||
Mortgage backed securities — commercial
|
29,587
|
|
|
140
|
|
|
—
|
|
|
29,727
|
|
|
—
|
|
|
29,727
|
|
|
—
|
|
|
—
|
|
||||||||
Level 2 Total
|
1,542,315
|
|
|
2,490
|
|
|
(144
|
)
|
|
1,544,661
|
|
|
150,610
|
|
|
1,394,051
|
|
|
—
|
|
|
—
|
|
||||||||
Total
|
$
|
5,760,736
|
|
|
$
|
3,836
|
|
|
$
|
(451
|
)
|
|
$
|
5,764,121
|
|
|
$
|
3,658,219
|
|
|
$
|
1,772,984
|
|
|
$
|
255,177
|
|
|
$
|
77,741
|
|
|
December 29, 2019
|
||||||||||||||||||||||
|
Unrealized Losses
Less than 12 Months |
|
Unrealized Losses
12 Months or Greater |
|
Total
|
||||||||||||||||||
|
Fair Value
|
|
Gross
Unrealized Loss |
|
Fair Value
|
|
Gross
Unrealized Loss |
|
Fair Value
|
|
Gross
Unrealized Loss |
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
U.S. Treasury and agencies
|
$
|
325,502
|
|
|
$
|
(54
|
)
|
|
$
|
—
|
|
|
$
|
—
|
|
|
$
|
325,502
|
|
|
$
|
(54
|
)
|
Mutual funds
|
2,925
|
|
|
(195
|
)
|
|
7,955
|
|
|
(257
|
)
|
|
10,880
|
|
|
(452
|
)
|
||||||
Government-sponsored enterprises
|
—
|
|
|
—
|
|
|
6,995
|
|
|
(3
|
)
|
|
6,995
|
|
|
(3
|
)
|
||||||
Foreign government bonds
|
29,420
|
|
|
(6
|
)
|
|
—
|
|
|
—
|
|
|
29,420
|
|
|
(6
|
)
|
||||||
Corporate notes and bonds
|
703,002
|
|
|
(441
|
)
|
|
6,780
|
|
|
(3
|
)
|
|
709,782
|
|
|
(444
|
)
|
||||||
Mortgage backed securities — commercial
|
16,805
|
|
|
(35
|
)
|
|
—
|
|
|
—
|
|
|
16,805
|
|
|
(35
|
)
|
||||||
|
$
|
1,077,654
|
|
|
$
|
(731
|
)
|
|
$
|
21,730
|
|
|
$
|
(263
|
)
|
|
$
|
1,099,384
|
|
|
$
|
(994
|
)
|
|
Cost
|
|
Estimated
Fair Value |
||||
|
(in thousands)
|
||||||
Due in one year or less
|
$
|
3,889,431
|
|
|
$
|
3,889,377
|
|
Due after one year through five years
|
444,558
|
|
|
444,950
|
|
||
Due in more than five years
|
22,994
|
|
|
23,016
|
|
||
|
$
|
4,356,983
|
|
|
$
|
4,357,343
|
|
|
Notional Value
|
||||||||||||||
|
Derivatives Designated as
Hedging Instruments: |
|
Derivatives Not Designated
as Hedging Instruments: |
||||||||||||
|
(in thousands)
|
||||||||||||||
Foreign currency forward contracts
|
|
|
|
|
|
|
|
||||||||
|
Buy Contracts
|
|
Sell Contracts
|
|
Buy Contracts
|
|
Sell Contracts
|
||||||||
Japanese yen
|
$
|
—
|
|
|
$
|
100,830
|
|
|
$
|
61,301
|
|
|
$
|
—
|
|
Euro
|
61,007
|
|
|
—
|
|
|
42,371
|
|
|
—
|
|
||||
Korean won
|
15,401
|
|
|
—
|
|
|
—
|
|
|
4,294
|
|
||||
British pound sterling
|
—
|
|
|
—
|
|
|
48,439
|
|
|
—
|
|
||||
Taiwan dollar
|
—
|
|
|
—
|
|
|
33,328
|
|
|
—
|
|
||||
Chinese renminbi
|
—
|
|
|
—
|
|
|
31,683
|
|
|
—
|
|
||||
Swiss franc
|
—
|
|
|
—
|
|
|
22,493
|
|
|
—
|
|
||||
Singapore dollar
|
—
|
|
|
—
|
|
|
21,409
|
|
|
—
|
|
||||
Indian rupee
|
—
|
|
|
—
|
|
|
7,855
|
|
|
—
|
|
||||
|
$
|
76,408
|
|
|
$
|
100,830
|
|
|
$
|
268,879
|
|
|
$
|
4,294
|
|
|
December 29, 2019
|
|
June 30, 2019
|
||||||||||||||||||||
|
Fair Value of Derivative Instruments (Level 2)
|
|
Fair Value of Derivative Instruments (Level 2)
|
||||||||||||||||||||
|
Derivative Assets
|
|
Derivative Liabilities
|
|
Derivative Assets
|
|
Derivative Liabilities
|
||||||||||||||||
|
Balance Sheet
Location |
|
Fair Value
|
|
Balance Sheet
Location |
|
Fair Value
|
|
Balance Sheet
Location |
|
Fair Value
|
|
Balance Sheet
Location |
|
Fair Value
|
||||||||
|
(in thousands)
|
||||||||||||||||||||||
Derivatives designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|||||||||||||||
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
||||||||
Foreign exchange contracts
|
Prepaid expense
and other assets |
|
$
|
2,437
|
|
|
Accrued expenses and other current liabilities
|
|
$
|
16
|
|
|
Prepaid expense
and other assets |
|
$
|
119
|
|
|
Accrued expenses and other current liabilities
|
|
$
|
2,756
|
|
Interest rate contracts, short-term
|
|
|
—
|
|
|
Accrued expenses and other current liabilities
|
|
2,746
|
|
|
|
|
—
|
|
|
Accrued expenses and other current liabilities
|
|
5,149
|
|
||||
Interest rate contracts, long-term
|
Other assets
|
|
3,605
|
|
|
|
|
—
|
|
|
Other assets
|
|
1,537
|
|
|
|
|
—
|
|
||||
Derivatives not designated as hedging instruments:
|
|
|
|
|
|
|
|
|
|||||||||||||||
Foreign exchange contracts
|
Prepaid expense
and other assets |
|
21
|
|
|
Accrued expenses and other current liabilities
|
|
200
|
|
|
Prepaid expense
and other assets |
|
1,249
|
|
|
Accrued expenses and other current liabilities
|
|
748
|
|
||||
Total Derivatives
|
|
|
$
|
6,063
|
|
|
|
|
$
|
2,962
|
|
|
|
|
$
|
2,905
|
|
|
|
|
$
|
8,653
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
December 29, 2019
|
|
December 29, 2019
|
|||||||||||||
|
Location of
Gain or (Loss) Recognized in or Reclassified into Income |
Gain
Recognized in AOCI |
|
Loss
Reclassified from AOCI into Income |
|
Gain (Loss)
Recognized in AOCI |
|
Loss
Reclassified from AOCI into Income |
||||||||
Derivatives in Cash Flow Hedging Relationships
|
(in thousands)
|
|||||||||||||||
Foreign Exchange Contracts
|
Revenue
|
$
|
2,264
|
|
|
$
|
(172
|
)
|
|
$
|
3,198
|
|
|
$
|
(506
|
)
|
Foreign Exchange Contracts
|
Cost of goods sold
|
196
|
|
|
(1,090
|
)
|
|
(1,067
|
)
|
|
(1,900
|
)
|
||||
Foreign Exchange Contracts
|
Selling, general, and administrative
|
130
|
|
|
(417
|
)
|
|
(465
|
)
|
|
(893
|
)
|
||||
Interest Rate Contracts
|
Other expense, net
|
2,394
|
|
|
(35
|
)
|
|
2,394
|
|
|
(70
|
)
|
||||
|
|
$
|
4,984
|
|
|
$
|
(1,714
|
)
|
|
$
|
4,060
|
|
|
$
|
(3,369
|
)
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
December 23, 2018
|
|
December 23, 2018
|
|||||||||||||
|
Location of
Gain or (Loss) Recognized in or Reclassified into Income |
Gain (Loss)
Recognized in AOCI |
|
Gain (Loss)
Reclassified from AOCI into Income |
|
Gain (Loss)
Recognized in AOCI |
|
Gain (Loss)
Reclassified from AOCI into Income |
||||||||
Derivatives in Cash Flow Hedging Relationships
|
(in thousands)
|
|||||||||||||||
Foreign Exchange Contracts
|
Revenue
|
$
|
8,229
|
|
|
$
|
7,813
|
|
|
$
|
16,670
|
|
|
$
|
8,487
|
|
Foreign Exchange Contracts
|
Cost of goods sold
|
(1,965
|
)
|
|
(851
|
)
|
|
(2,089
|
)
|
|
(2,408
|
)
|
||||
Foreign Exchange Contracts
|
Selling, general, and administrative
|
(674
|
)
|
|
(651
|
)
|
|
(878
|
)
|
|
(1,178
|
)
|
||||
Interest Rate Contracts
|
Other expense, net
|
—
|
|
|
(33
|
)
|
|
—
|
|
|
(66
|
)
|
||||
|
|
$
|
5,590
|
|
|
$
|
6,278
|
|
|
$
|
13,703
|
|
|
$
|
4,835
|
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
|
December 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
||||||||
Derivatives Not Designated as Hedging Instruments:
|
Location
of Gain (Loss) Recognized in Income |
Gain
Recognized in Income |
|
Gain
Recognized in Income |
|
Loss
Recognized in Income |
|
Gain
Recognized in Income |
||||||||
|
|
(in thousands)
|
||||||||||||||
Foreign Exchange Contracts
|
Other income
|
$
|
3,571
|
|
|
$
|
301
|
|
|
$
|
(1,930
|
)
|
|
$
|
10,889
|
|
|
December 29,
2019 |
|
June 30,
2019 |
||||
|
(in thousands)
|
||||||
Raw materials
|
$
|
980,751
|
|
|
$
|
994,738
|
|
Work-in-process
|
200,626
|
|
|
174,219
|
|
||
Finished goods
|
347,243
|
|
|
371,183
|
|
||
|
$
|
1,528,620
|
|
|
$
|
1,540,140
|
|
|
December 29, 2019
|
|
June 30, 2019
|
||||||||||||||||||||
|
Gross
|
|
Accumulated
Amortization |
|
Net
|
|
Gross
|
|
Accumulated
Amortization |
|
Net
|
||||||||||||
|
(in thousands)
|
||||||||||||||||||||||
Customer relationships
|
$
|
630,206
|
|
|
$
|
(508,199
|
)
|
|
$
|
122,007
|
|
|
$
|
630,165
|
|
|
$
|
(483,204
|
)
|
|
$
|
146,961
|
|
Existing technology
|
669,488
|
|
|
(651,379
|
)
|
|
18,109
|
|
|
669,399
|
|
|
(647,837
|
)
|
|
21,562
|
|
||||||
Patents and other intangible assets
|
135,048
|
|
|
(82,048
|
)
|
|
53,000
|
|
|
126,235
|
|
|
(77,808
|
)
|
|
48,427
|
|
||||||
Total intangible assets
|
$
|
1,434,742
|
|
|
$
|
(1,241,626
|
)
|
|
$
|
193,116
|
|
|
$
|
1,425,799
|
|
|
$
|
(1,208,849
|
)
|
|
$
|
216,950
|
|
Fiscal Year
|
Amount
|
||
|
(in thousands)
|
||
2020 (remaining 6 months)
|
$
|
32,742
|
|
2021
|
63,431
|
|
|
2022
|
59,093
|
|
|
2023
|
14,025
|
|
|
2024
|
7,324
|
|
|
Thereafter
|
2,962
|
|
|
|
$
|
179,577
|
|
|
December 29,
2019 |
|
June 30,
2019 |
||||
|
(in thousands)
|
||||||
Accrued compensation
|
$
|
390,033
|
|
|
$
|
336,090
|
|
Warranty reserves
|
118,193
|
|
|
127,932
|
|
||
Income and other taxes payable
|
134,615
|
|
|
49,926
|
|
||
Dividend payable
|
163,510
|
|
|
158,868
|
|
||
Other
|
307,662
|
|
|
273,825
|
|
||
|
$
|
1,114,013
|
|
|
$
|
946,641
|
|
|
December 29, 2019
|
|
June 30, 2019
|
|
||||||||||
|
Amount
(in thousands) |
|
Effective Interest Rate
|
|
Amount
(in thousands) |
|
Effective Interest Rate
|
|
||||||
Fixed-rate 2.75% Senior Notes Due March 15, 2020 ("2020 Notes")
|
$
|
500,000
|
|
|
2.88
|
%
|
|
$
|
500,000
|
|
|
2.88
|
%
|
|
Fixed-rate 2.80% Senior Notes Due June 15, 2021 ("2021 Notes")
|
800,000
|
|
|
2.95
|
%
|
|
800,000
|
|
|
2.95
|
%
|
|
||
Fixed-rate 3.80% Senior Notes Due March 15, 2025 ("2025 Notes")
|
500,000
|
|
|
3.87
|
%
|
|
500,000
|
|
|
3.87
|
%
|
|
||
Fixed-rate 3.75% Senior Notes Due March 15, 2026 ("2026 Notes")
|
750,000
|
|
|
3.86
|
%
|
|
750,000
|
|
|
3.86
|
%
|
|
||
Fixed-rate 4.00% Senior Notes Due March 15, 2029 ("2029 Notes")
|
1,000,000
|
|
|
4.09
|
%
|
|
1,000,000
|
|
|
4.09
|
%
|
|
||
Fixed-rate 2.625% Convertible Notes Due May 15, 2041 ("2041 Notes")
|
167,091
|
|
(1)
|
4.28
|
%
|
|
212,349
|
|
(1)
|
4.28
|
%
|
|
||
Fixed-rate 4.875% Senior Notes Due March 15, 2049 ("2049 Notes")
|
750,000
|
|
|
4.93
|
%
|
|
750,000
|
|
|
4.93
|
%
|
|
||
Total debt outstanding, at par
|
4,467,091
|
|
|
|
|
4,512,349
|
|
|
|
|
||||
Unamortized discount
|
(60,332
|
)
|
|
|
|
(73,191
|
)
|
|
|
|
||||
Fair value adjustment - interest rate contracts
|
1,300
|
|
(2)
|
|
|
(3,612
|
)
|
|
|
|
||||
Unamortized bond issuance costs
|
(5,096
|
)
|
|
|
|
(5,535
|
)
|
|
|
|
||||
Total debt outstanding, at carrying value
|
$
|
4,402,963
|
|
|
|
|
$
|
4,430,011
|
|
|
|
|
||
Reported as:
|
|
|
|
|
|
|
|
|
||||||
Current portion of long-term debt, and commercial paper
|
$
|
628,614
|
|
|
|
|
$
|
662,308
|
|
|
|
|
||
Long-term debt
|
3,774,349
|
|
|
|
|
3,767,703
|
|
|
|
|
||||
Total debt outstanding, at carrying value
|
$
|
4,402,963
|
|
|
|
|
$
|
4,430,011
|
|
|
|
|
|
December 29,
2019 |
|
June 30,
2019 |
||||
|
2041 Notes
|
|
2041 Notes
|
||||
|
(in thousands, except years, percentages, conversion rate, and conversion price)
|
||||||
Carrying amount of permanent equity component, net of tax
|
$
|
161,271
|
|
|
$
|
160,604
|
|
Carrying amount of temporary equity component, net of tax
|
$
|
38,304
|
|
|
$
|
49,439
|
|
Remaining amortization period (years)
|
21.4
|
|
|
21.9
|
|
||
Fair Value of Notes (Level 2)
|
$
|
1,532,188
|
|
|
|
||
Conversion rate (shares of common stock per $1,000 principal amount of notes)
|
31.2089
|
|
|
|
|||
Conversion price (per share of common stock)
|
$
|
32.04
|
|
|
|
||
If-converted value in excess of par value
|
$
|
1,364,475
|
|
|
|
||
Estimated share dilution using average quarterly stock price $264.15 per share
|
4,582
|
|
|
|
|
Remaining Amortization period
|
|
Fair Value of Notes (Level 2)
|
||
|
(years)
|
|
(in thousands)
|
||
2020 Notes
|
0.2
|
|
$
|
500,410
|
|
2021 Notes
|
1.5
|
|
$
|
809,552
|
|
2025 Notes
|
5.2
|
|
$
|
536,190
|
|
2026 Notes
|
6.2
|
|
$
|
805,748
|
|
2029 Notes
|
9.2
|
|
$
|
1,104,060
|
|
2049 Notes
|
29.2
|
|
$
|
947,325
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
December 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
||||||||
|
(in thousands)
|
||||||||||||||
Contractual interest coupon
|
$
|
40,665
|
|
|
$
|
16,550
|
|
|
$
|
81,787
|
|
|
$
|
33,977
|
|
Amortization of interest discount
|
1,158
|
|
|
887
|
|
|
2,393
|
|
|
1,787
|
|
||||
Amortization of issuance costs
|
416
|
|
|
329
|
|
|
830
|
|
|
658
|
|
||||
Effect of interest rate contracts, net
|
155
|
|
|
777
|
|
|
830
|
|
|
1,530
|
|
||||
Total interest cost recognized
|
$
|
42,394
|
|
|
$
|
18,543
|
|
|
$
|
85,840
|
|
|
$
|
37,952
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||
|
December 29,
2019 |
|
December 29,
2019 |
||||
|
(in thousands)
|
||||||
Financing lease cost:
|
|
|
|
||||
Amortization of right-of-use assets
|
$
|
891
|
|
|
$
|
1,819
|
|
Interest on lease liabilities
|
115
|
|
|
265
|
|
||
Total finance lease cost
|
$
|
1,006
|
|
|
$
|
2,084
|
|
|
|
|
|
||||
Operating lease cost
|
$
|
10,421
|
|
|
$
|
21,185
|
|
Variable lease cost
|
22,071
|
|
|
41,018
|
|
|
|
Six Months Ended
|
||
|
|
December 29, 2019
|
||
|
|
|||
Cash paid for amounts included in the measurement of lease liabilities:
|
|
|
||
Operating cash flows paid for operating leases
|
|
$
|
19,384
|
|
Financing cash flows paid for principal portion of finance leases
|
|
1,647
|
|
|
|
|
|
||
Right-of-use assets obtained in exchange for lease obligations:
|
|
|
||
Operating leases
|
|
$
|
11,968
|
|
Finance leases
|
|
1,357
|
|
|
December 29, 2019
|
||
|
(in thousands)
|
||
Operating leases
|
|
||
Other assets
|
$
|
101,605
|
|
|
|
||
Accrued expenses and other current liabilities
|
$
|
36,480
|
|
Other long-term liabilities
|
70,442
|
|
|
Total operating lease liabilities
|
$
|
106,922
|
|
|
|
||
Finance Leases
|
|
||
Property and Equipment, net
|
$
|
18,684
|
|
|
|
||
Current portion of long-term debt and lease liabilities
|
$
|
3,677
|
|
Long-term debt and lease liabilities
|
11,719
|
|
|
Total finance lease liabilities
|
$
|
15,396
|
|
|
December 29, 2019
|
|||
|
Weighted-Average Remaining Lease Term
|
|
Weighted-Average Discount Rate
|
|
|
(in years)
|
|
|
|
Operating leases
|
4.4
|
|
2.57
|
%
|
Finance leases
|
4.3
|
|
2.82
|
%
|
Fiscal Year
|
Operating Leases
|
|
Finance Leases
|
||||
|
(in thousands)
|
||||||
2020 (remaining 6 months)
|
$
|
19,237
|
|
|
$
|
2,022
|
|
2021
|
34,265
|
|
|
3,548
|
|
||
2022
|
18,256
|
|
|
6,208
|
|
||
2023
|
11,659
|
|
|
1,200
|
|
||
2024
|
8,591
|
|
|
841
|
|
||
Thereafter
|
20,809
|
|
|
2,920
|
|
||
Total lease payments
|
$
|
112,817
|
|
|
$
|
16,739
|
|
Less imputed interest
|
(5,895
|
)
|
|
(1,343
|
)
|
||
Total
|
$
|
106,922
|
|
|
$
|
15,396
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||
|
December 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
||||||||
|
(in thousands)
|
||||||||||||||
Balance at beginning of period
|
$
|
114,470
|
|
|
$
|
157,363
|
|
|
$
|
127,932
|
|
|
$
|
169,407
|
|
Warranties issued during the period
|
40,419
|
|
|
36,853
|
|
|
70,899
|
|
|
72,793
|
|
||||
Settlements made during the period
|
(31,848
|
)
|
|
(44,199
|
)
|
|
(66,916
|
)
|
|
(89,506
|
)
|
||||
Changes in liability for pre-existing warranties
|
(4,848
|
)
|
|
(2,262
|
)
|
|
(13,722
|
)
|
|
(4,939
|
)
|
||||
Balance at end of period
|
$
|
118,193
|
|
|
$
|
147,755
|
|
|
$
|
118,193
|
|
|
$
|
147,755
|
|
Period
|
Total Number of
Shares Repurchased |
|
Total Cost of
Repurchase |
|
Average Price
Paid Per Share (1) |
|
Amount
Available Under Repurchase Program |
|||||||
|
(in thousands, except per share data)
|
|||||||||||||
Available balance as of June 30, 2019
|
|
|
|
|
|
|
$
|
3,033,500
|
|
|||||
Quarter ended September 29, 2019
|
383
|
|
|
$
|
75,196
|
|
|
$
|
196.34
|
|
|
$
|
2,958,304
|
|
Quarter ended December 29, 2019
|
3,224
|
|
|
$
|
1,000,475
|
|
|
$
|
—
|
|
|
$
|
1,957,829
|
|
(1)
|
Average price paid per share excludes the effect of accelerated share repurchases. See additional disclosure below regarding the Company’s accelerated share repurchase activity during the six months ended December 29, 2019.
|
|
Accumulated Foreign Currency Translation Adjustment
|
|
Accumulated
Unrealized Gain or Loss on Cash flow hedges |
|
Accumulated
Unrealized Holding Gain or Loss on Available-For-Sale Investments |
|
Accumulated
Unrealized Components of Defined Benefit Plans |
|
Total
|
||||||||||
|
(in thousands)
|
||||||||||||||||||
Balance at June 30, 2019
|
$
|
(39,370
|
)
|
|
$
|
(4,330
|
)
|
|
$
|
2,146
|
|
|
$
|
(22,476
|
)
|
|
$
|
(64,030
|
)
|
Other comprehensive (loss) income before reclassifications
|
(1,174
|
)
|
|
3,388
|
|
|
(2,713
|
)
|
|
578
|
|
|
79
|
|
|||||
(Gains) losses reclassified from accumulated other comprehensive income (loss) to net income
|
(13
|
)
|
|
2,734
|
|
(1)
|
983
|
|
(2)
|
—
|
|
|
3,704
|
|
|||||
Net current-period other comprehensive (loss) income
|
(1,187
|
)
|
|
6,122
|
|
|
(1,730
|
)
|
|
578
|
|
|
3,783
|
|
|||||
Balance at December 29, 2019
|
$
|
(40,557
|
)
|
|
$
|
1,792
|
|
|
$
|
416
|
|
|
$
|
(21,898
|
)
|
|
$
|
(60,247
|
)
|
ITEM 2.
|
Management’s Discussion and Analysis of Financial Condition and Results of Operations
|
|
Three Months Ended
|
||||||||||
December 29,
2019 |
|
September 29,
2019 |
|
December 23,
2018 |
|||||||
(in thousands, except per share data and percentages)
|
|||||||||||
Revenue
|
$
|
2,583,501
|
|
|
$
|
2,165,746
|
|
|
$
|
2,522,673
|
|
Gross margin
|
$
|
1,179,644
|
|
|
$
|
981,710
|
|
|
$
|
1,145,033
|
|
Gross margin as a percent of total revenue
|
45.7
|
%
|
|
45.3
|
%
|
|
45.4
|
%
|
|||
Total operating expenses
|
$
|
493,133
|
|
|
$
|
444,255
|
|
|
$
|
454,654
|
|
Net income
|
$
|
514,510
|
|
|
$
|
465,789
|
|
|
$
|
568,855
|
|
Diluted net income per share
|
$
|
3.43
|
|
|
$
|
3.09
|
|
|
$
|
3.51
|
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
December 29,
2019 |
|
September 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
|||||||||||
Revenue (in millions)
|
$
|
2,584
|
|
|
$
|
2,166
|
|
|
$
|
2,523
|
|
|
$
|
4,749
|
|
|
$
|
4,853
|
|
China
|
29
|
%
|
|
27
|
%
|
|
14
|
%
|
|
28
|
%
|
|
20
|
%
|
|||||
Taiwan
|
26
|
%
|
|
18
|
%
|
|
17
|
%
|
|
23
|
%
|
|
15
|
%
|
|||||
Korea
|
18
|
%
|
|
21
|
%
|
|
25
|
%
|
|
19
|
%
|
|
21
|
%
|
|||||
United States
|
9
|
%
|
|
8
|
%
|
|
5
|
%
|
|
9
|
%
|
|
5
|
%
|
|||||
Japan
|
8
|
%
|
|
13
|
%
|
|
27
|
%
|
|
10
|
%
|
|
28
|
%
|
|||||
Southeast Asia
|
7
|
%
|
|
10
|
%
|
|
7
|
%
|
|
8
|
%
|
|
7
|
%
|
|||||
Europe
|
3
|
%
|
|
3
|
%
|
|
5
|
%
|
|
3
|
%
|
|
4
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
|||||||||||
|
December 29,
2019 |
|
September 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
|||||
Memory
|
52
|
%
|
|
64
|
%
|
|
79
|
%
|
|
58
|
%
|
|
78
|
%
|
Foundry
|
36
|
%
|
|
25
|
%
|
|
13
|
%
|
|
31
|
%
|
|
15
|
%
|
Logic/integrated device manufacturing
|
12
|
%
|
|
11
|
%
|
|
8
|
%
|
|
11
|
%
|
|
7
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
December 29,
2019 |
|
September 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
|||||||||||
(in thousands, except percentages)
|
|||||||||||||||||||
Gross margin
|
$
|
1,179,644
|
|
|
$
|
981,710
|
|
|
$
|
1,145,033
|
|
|
$
|
2,161,354
|
|
|
$
|
2,203,231
|
|
Percent of revenue
|
45.7
|
%
|
|
45.3
|
%
|
|
45.4
|
%
|
|
45.5
|
%
|
|
45.4
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
December 29,
2019 |
|
September 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
|||||||||||
(in thousands, except percentages)
|
|||||||||||||||||||
Research & development (“R&D”)
|
$
|
318,861
|
|
|
$
|
286,827
|
|
|
$
|
285,556
|
|
|
$
|
605,688
|
|
|
$
|
577,228
|
|
Percent of revenue
|
12.3
|
%
|
|
13.2
|
%
|
|
11.3
|
%
|
|
12.8
|
%
|
|
11.9
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
December 29,
2019 |
|
September 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
|||||||||||
(in thousands, except percentages)
|
|||||||||||||||||||
Selling, general, and administrative (“SG&A”)
|
$
|
174,272
|
|
|
$
|
157,428
|
|
|
$
|
169,098
|
|
|
$
|
331,700
|
|
|
$
|
343,873
|
|
Percent of revenue
|
6.7
|
%
|
|
7.3
|
%
|
|
6.7
|
%
|
|
7.0
|
%
|
|
7.1
|
%
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
December 29,
2019 |
|
September 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
|||||||||||
(in thousands)
|
|||||||||||||||||||
Interest income
|
$
|
25,454
|
|
|
$
|
31,784
|
|
|
$
|
17,809
|
|
|
$
|
57,238
|
|
|
$
|
36,742
|
|
Interest expense
|
(42,615
|
)
|
|
(43,995
|
)
|
|
(19,784
|
)
|
|
(86,610
|
)
|
|
(41,572
|
)
|
|||||
Gains (losses) on deferred compensation plan-related assets, net
|
14,129
|
|
|
(436
|
)
|
|
(22,374
|
)
|
|
13,693
|
|
|
(17,160
|
)
|
|||||
Foreign exchange (losses) gains, net
|
(2,287
|
)
|
|
(529
|
)
|
|
2,581
|
|
|
(2,816
|
)
|
|
2,632
|
|
|||||
Other, net
|
(8,605
|
)
|
|
448
|
|
|
(8,881
|
)
|
|
(8,157
|
)
|
|
(11,668
|
)
|
|||||
|
$
|
(13,924
|
)
|
|
$
|
(12,728
|
)
|
|
$
|
(30,649
|
)
|
|
$
|
(26,652
|
)
|
|
$
|
(31,026
|
)
|
|
Three Months Ended
|
|
Six Months Ended
|
||||||||||||||||
December 29,
2019 |
|
September 29,
2019 |
|
December 23,
2018 |
|
December 29,
2019 |
|
December 23,
2018 |
|||||||||||
(in thousands, except percentages)
|
|||||||||||||||||||
Income tax expense
|
$
|
158,077
|
|
|
$
|
58,938
|
|
|
$
|
90,875
|
|
|
$
|
217,015
|
|
|
$
|
148,889
|
|
Effective tax rate
|
23.5
|
%
|
|
11.2
|
%
|
|
13.8
|
%
|
|
18.1
|
%
|
|
11.9
|
%
|
•
|
the recognition and valuation of revenue from arrangements with multiple performance obligations which impacts revenue;
|
•
|
the valuation of inventory, which impacts gross margin;
|
•
|
the valuation of warranty reserves, which impacts gross margin;
|
•
|
the recognition and measurement of current and deferred income taxes, including the measurement of uncertain tax positions, which impact our provision for income tax expenses; and
|
•
|
the valuation and recoverability of long-lived assets, which impacts gross margin and operating expenses when we record asset impairments or accelerate their depreciation or amortization.
|
Net income
|
$
|
980.3
|
|
Non-cash charges:
|
|
||
Depreciation and amortization
|
130.2
|
|
|
Equity-based compensation expense
|
88.6
|
|
|
Deferred income taxes
|
74.5
|
|
|
Amortization of note discounts and issuance costs
|
3.3
|
|
|
Changes in operating asset and liability accounts
|
(508.6
|
)
|
|
Other
|
3.7
|
|
|
|
$
|
772.0
|
|
ITEM 3.
|
Quantitative and Qualitative Disclosures about Market Risk
|
|
Valuation of Securities
Given an Interest Rate
Decrease of X Basis Points
|
|
Fair Value
as of
December 29, 2019
|
|
Valuation of Securities
Given an Interest Rate
Increase of X Basis Points
|
||||||||||||||||||||||
|
(150 BPS)
|
|
(100 BPS)
|
|
(50 BPS)
|
|
0.00%
|
|
50 BPS
|
|
100 BPS
|
|
150 BPS
|
||||||||||||||
|
(in thousands)
|
||||||||||||||||||||||||||
U.S. Treasury and agencies
|
$
|
478,961
|
|
|
$
|
478,130
|
|
|
$
|
477,299
|
|
|
$
|
476,468
|
|
|
$
|
475,636
|
|
|
$
|
474,805
|
|
|
$
|
473,974
|
|
Government-sponsored enterprises
|
9,847
|
|
|
9,837
|
|
|
9,826
|
|
|
9,816
|
|
|
9,805
|
|
|
9,795
|
|
|
9,784
|
|
|||||||
Foreign government bonds
|
30,689
|
|
|
30,627
|
|
|
30,565
|
|
|
30,503
|
|
|
30,442
|
|
|
30,380
|
|
|
30,318
|
|
|||||||
Corporate notes and bonds
|
1,236,608
|
|
|
1,233,015
|
|
|
1,229,420
|
|
|
1,225,824
|
|
|
1,222,229
|
|
|
1,218,634
|
|
|
1,215,039
|
|
|||||||
Mortgage backed securities - residential
|
4,265
|
|
|
4,237
|
|
|
4,209
|
|
|
4,180
|
|
|
4,152
|
|
|
4,123
|
|
|
4,095
|
|
|||||||
Mortgage backed securities - commercial
|
27,161
|
|
|
27,024
|
|
|
26,887
|
|
|
26,750
|
|
|
26,612
|
|
|
26,475
|
|
|
26,338
|
|
|||||||
Total
|
$
|
1,787,531
|
|
|
$
|
1,782,870
|
|
|
$
|
1,778,206
|
|
|
$
|
1,773,541
|
|
|
$
|
1,768,876
|
|
|
$
|
1,764,212
|
|
|
$
|
1,759,548
|
|
ITEM 4.
|
Controls and Procedures
|
PART II.
|
OTHER INFORMATION
|
ITEM 1.
|
Legal Proceedings
|
ITEM 1A.
|
Risk Factors
|
•
|
a decline in demand for our products or services;
|
•
|
an increase in reserves on accounts receivable due to our customers’ inability to pay us;
|
•
|
an increase in reserves on inventory balances due to excess or obsolete inventory as a result of our inability to sell such inventory;
|
•
|
valuation allowances on deferred tax assets;
|
•
|
restructuring charges;
|
•
|
asset impairments including the potential impairment of goodwill and other intangible assets;
|
•
|
a decline in the value of our investments;
|
•
|
exposure to claims from our suppliers for payment on inventory that is ordered in anticipation of customer purchases that do not come to fruition;
|
•
|
a decline in the value of certain facilities we lease to less than our residual value guarantee with the lessor; and
|
•
|
challenges maintaining reliable and uninterrupted sources of supply.
|
•
|
economic conditions in the electronics and semiconductor industries in general and specifically the semiconductor equipment industry;
|
•
|
the size and timing of orders from customers;
|
•
|
consolidation of the customer base, which may result in the investment decisions of one customer or market having a significant effect on demand for our products or services;
|
•
|
procurement shortages;
|
•
|
the failure of our suppliers or outsource providers to perform their obligations in a manner consistent with our expectations;
|
•
|
manufacturing difficulties;
|
•
|
customer cancellations or delays in shipments, installations, and/or customer acceptances;
|
•
|
the extent that customers continue to purchase and use our products and services in their business;
|
•
|
our customers’ reuse of existing and installed products, to the extent that such reuse decreases their need to purchase new products or services;
|
•
|
changes in average selling prices, customer mix, and product mix;
|
•
|
our ability to develop, introduce, and market new, enhanced, and competitive products in a timely manner;
|
•
|
our competitors’ introduction of new products;
|
•
|
legal or technical challenges to our products and technologies;
|
•
|
transportation, communication, demand, information technology, or supply disruptions based on factors outside our control, such as strikes, acts of God, wars, terrorist activities, widespread outbreak of illness, and natural or man-made disasters;
|
•
|
legal, tax, accounting, or regulatory changes (including but not limited to change in import/export regulations and tariffs) or changes in the interpretation or enforcement of existing requirements;
|
•
|
changes in our estimated effective tax rate;
|
•
|
foreign currency exchange rate fluctuations; and
|
•
|
the dilutive impact of our Convertible Notes (as defined below) on our earnings per share.
|
•
|
risk associated with any inability to satisfy our obligations;
|
•
|
a portion of our cash flows that may have to be dedicated to interest and principal payments and may not be available for operations, working capital, capital expenditures, expansion, acquisitions, or general corporate or other purposes; and
|
•
|
impairing our ability to obtain additional financing in the future.
|
•
|
incur additional debt, assume obligations in connection with letters of credit, or issue guarantees;
|
•
|
create liens;
|
•
|
enter into transactions with our affiliates;
|
•
|
sell certain assets; and
|
•
|
merge or consolidate with any person.
|
•
|
a decline in demand for even a limited number of our products,
|
•
|
a failure to achieve continued market acceptance of our key products,
|
•
|
export restrictions or other regulatory or legislative actions that could limit our ability to sell those products to key customers or customers within certain markets,
|
•
|
an improved version of products being offered by a competitor in the markets in which we participate,
|
•
|
increased pressure from competitors that offer broader product lines,
|
•
|
increased pressure from regional competitors,
|
•
|
technological changes that we are unable to address with our products, or
|
•
|
a failure to release new or enhanced versions of our products on a timely basis.
|
•
|
domestic and international trade policies, practices, relations, disputes and issues;
|
•
|
domestic and international tariffs, export controls and other barriers;
|
•
|
developing customers and/or suppliers, who may have limited access to capital resources;
|
•
|
global or national economic and political conditions;
|
•
|
changes in currency controls;
|
•
|
differences in the enforcement of intellectual property and contract rights in varying jurisdictions;
|
•
|
our ability to respond to customer and foreign government demands for locally sourced systems, spare parts, and services and develop the necessary relationships with local suppliers;
|
•
|
compliance with U.S. and international laws and regulations affecting foreign operations, including U.S. and international trade restrictions and sanctions, anti-bribery, anti-corruption, environmental, tax, and labor laws;
|
•
|
fluctuations in interest and foreign currency exchange rates;
|
•
|
the need for technical support resources in different locations; and
|
•
|
our ability to secure and retain qualified people, and effectively manage people, in all necessary locations for the successful operation of our business.
|
•
|
Loss of (or inability to access, e.g. through ransomware) confidential and/or sensitive information stored on these critical information systems or transmitted to or from those systems;
|
•
|
The disruption of the proper function of our products, services and/or operations;
|
•
|
The failure of our or our customers’ manufacturing processes;
|
•
|
Errors in the output of our work or our customers’ work;
|
•
|
The loss or public exposure of the personal information of our employees, customers or other parties;
|
•
|
The public release of customer orders, financial and business plans, and operational results;
|
•
|
Exposure to claims from third parties who are adversely impacted by such incidents;
|
•
|
Misappropriation or theft of our or a customer’s, supplier’s or other party’s assets or resources, including technology data, intellectual property or other sensitive information and costs associated therewith;
|
•
|
Reputational damage;
|
•
|
Diminution in the value of our investment in research, development and engineering; or
|
•
|
Our failure to meet, or violation of, regulatory or other legal obligations, such as the timely publication or filing of financial statements, tax information and other required communications.
|
•
|
general market, semiconductor, or semiconductor equipment industry conditions;
|
•
|
economic or political events, trends, and unexpected developments occurring nationally, globally, or in any of our key sales regions;
|
•
|
variations in our quarterly operating results and financial condition, including our liquidity;
|
•
|
variations in our revenues, earnings, or other business and financial metrics from forecasts by us or securities analysts or from those experienced by other companies in our industry;
|
•
|
announcements of restructurings, reductions in force, departure of key employees, and/or consolidations of operations;
|
•
|
government regulations;
|
•
|
developments in, or claims relating to, patent or other proprietary rights;
|
•
|
technological innovations and the introduction of new products by us or our competitors;
|
•
|
commercial success or failure of our new and existing products;
|
•
|
disruptions of relationships with key customers or suppliers; or
|
•
|
dilutive impacts of our Convertible Notes.
|
ITEM 2.
|
Unregistered Sales of Equity Securities and Use of Proceeds
|
|
Total Number
of Shares
Repurchased (1)
|
|
Average Price
Paid Per Share (2)
|
|
Total Number of
Shares Purchased
as Part of Publicly
Announced Plans or
Programs
|
|
Amount
Available
Under
Repurchase
Program
|
||||||
|
(in thousands, except per share data)
|
||||||||||||
Available balance as of June 30, 2019
|
|
|
|
|
|
|
$
|
3,033,500
|
|
||||
Quarter ended September 29, 2019
|
397
|
|
|
$
|
196.83
|
|
|
383
|
|
|
2,958,304
|
|
|
September 30, 2019 - November 3, 2019
|
3
|
|
|
$
|
235.81
|
|
|
—
|
|
|
2,958,304
|
|
|
November 4, 2019 - November 24, 2019
|
3,227
|
|
|
$
|
277.65
|
|
|
3,224
|
|
|
1,957,829
|
|
|
November 25, 2019 - December 29, 2019
|
12
|
|
|
$
|
271.04
|
|
|
—
|
|
|
1,957,829
|
|
|
Quarter ended December 29, 2019
|
3,242
|
|
|
$
|
265.88
|
|
|
3,224
|
|
|
$
|
1,957,829
|
|
(1)
|
During the three and six months ended December 29, 2019, we acquired 18 thousand shares at a total cost of $4.9 million and 32 thousand shares at a total cost of $7.8 million, respectively, which we withheld through net share settlements to cover minimum tax withholding obligations upon the vesting of restricted stock unit awards granted under our equity compensation plans. The shares retained by us through these net share settlements are not a part of the Board-authorized repurchase program but instead are authorized under our equity compensation plan.
|
(2)
|
Average price paid per share excludes the effect of accelerated share repurchases. See additional disclosure below regarding our accelerated share repurchase activity during the six months ended December 29, 2019.
|
ITEM 3.
|
Defaults Upon Senior Securities
|
ITEM 4.
|
Mine Safety Disclosures
|
ITEM 5.
|
Other Information
|
ITEM 6.
|
Exhibits
|
Exhibit
Number |
Description
|
|
|
31.1
|
|
|
|
31.2
|
|
|
|
32.1
|
|
|
|
32.2
|
|
|
|
101.INS
|
XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document.
|
|
|
101.SCH
|
XBRL Taxonomy Extension Schema Document
|
|
|
101.CAL
|
XBRL Taxonomy Extension Calculation Linkbase Document
|
|
|
101.DEF
|
XBRL Taxonomy Extension Definition Linkbase Document
|
|
|
101.LAB
|
XBRL Taxonomy Extension Label Linkbase Document
|
|
|
101.PRE
|
XBRL Taxonomy Extension Presentation Linkbase Document
|
|
|
Date:
|
February 4, 2020
|
LAM RESEARCH CORPORATION
(Registrant)
|
|
|
|||
|
/s/ Douglas R. Bettinger
|
||
Douglas R. Bettinger
|
|||
Executive Vice President, Chief Financial Officer (Principal Financial Officer and Principal Accounting
Officer)
|
1 Year Lam Research Chart |
1 Month Lam Research Chart |
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