XML 42 R30.htm IDEA: XBRL DOCUMENT
v3.6.0.2

LONG-TERM DEBT AND OTHER BORROWINGS (Tables) | 6 Months Ended
--- | ---
Dec. 25, 2016
Debt Disclosure [Abstract] |
Schedule of Outstanding Debt | As of December 25, 2016 and June 26, 2016, the Company's outstanding debt consisted of the following:
| December 25, 2016 |  | June 26, 2016
| Amount (in thousands) |  | Effective Interest Rate |  | Amount (in thousands) |  | Effective Interest Rate
Fixed-rate 1.25% Convertible Notes Due May 15, 2018 ("2018 Notes") | $ | 449,849 |  | (1) | 5.27 | % |  | $ | 449,954 |  | (3) | 5.27 | %
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 3.45% Senior Notes Due June 15, 2023 ("2023 Notes") | — |  |  | — |  |  | 600,000 |  |  | 3.60 | %
Fixed-rate 3.80% Senior Notes Due March 15, 2025 ("2025 Notes") | 500,000 |  |  | 3.87 | % |  | 500,000 |  |  | 3.87 | %
Fixed-rate 3.90% Senior Notes Due June 15, 2026 ("2026 Notes") | — |  |  | — |  |  | 1,000,000 |  |  | 4.01 | %
Fixed-rate 2.625% Convertible Notes Due May 15, 2041 ("2041 Notes") | 699,808 |  | (1) | 4.28 | % |  | 699,895 |  | (3) | 4.28 | %
Total debt outstanding, at par | 2,949,657 |  |  |  |  | 4,549,849 |  |  |
Unamortized discount | (206,996 | ) |  |  |  | (232,727 | ) |  |
Fair value adjustment - interest rate contracts | (19,177 | ) |  |  |  | 8,552 |  |  |
Unamortized bond issuance costs | (3,885 | ) |  |  |  | (7,213 | ) | (4) |
Total debt outstanding, at carrying value | $ | 2,719,599 |  |  |  |  | $ | 4,318,461 |  |  |
Reported as: |  |  |  |  |  |  |
Current portion of long-term debt | $ | 951,052 |  | (2) |  |  | $ | 940,537 |  | (2) |
Long-term debt | 1,768,547 |  |  |  |  | 3,377,924 |  |  |
Total debt outstanding, at carrying value | $ | 2,719,599 |  |  |  |  | $ | 4,318,461 |  |  |
____________________________ (1) As of December 25, 2016, these notes were convertible at the option of the bondholder, as a result of the condition described in (2) below. Upon closure of the conversion period, Notes not converted will be reclassified back into noncurrent liabilities and the temporary equity will be reclassified into permanent equity. (2) As of the report date the market value of the Company's Common Stock was greater than 130% of the convertible notes conversion price for 20 or more of the 30 consecutive trading days preceding the quarter-end. As a result, the convertible notes were classified in current liabilities and a portion of the equity component, representing the unamortized discount, was classified in temporary equity on the Company's Consolidated Balance Sheets. (3) As of June 26, 2016, these notes were convertible at the option of the bond holder, as a result of the condition described in (2) above. (4) The Company adopted ASU 2015-3, regarding the simplification of the presentation of bond issuance costs, which requires that bond issuance costs related to a recognized liability be presented on the balance sheet as a direct reduction from the carrying amount of that debt liability, consistent with debt discounts. The Company applied the accounting standard update on a retrospective basis by reclassifying the presentation of bond issuance costs totaling $1.76 million which was originally included in prepaid assets and other current assets against current portion of convertible notes and capital leases, and $5.45 million which was originally included in other assets against senior notes, convertible notes, and capital leases, less current portion on the Condensed Consolidated Balance Sheets for June 26, 2016. There is no impact to the Company's Condensed Consolidated Statements of Operation, Stockholders' Equity, or Cash Flows for the fiscal year ended June 26, 2016.
Components of Convertible Notes | Selected additional information regarding the Convertible Notes outstanding as of December 25, 2016 and June 26, 2016, the Convertible Notes consisted of the following:
| December 25, 2016 |  | June 26, 2016
2018 Notes |  | 2041 Notes |  | 2018 Notes |  | 2041 Notes
(in thousands, except years, percentages, conversion rate, and conversion price)
Carrying amount of permanent equity component, net of tax | $ | 81,135 |  |  | $ | 154,241 |  |  | $ | 72,992 |  |  | $ | 152,397 |
Carrying amount of temporary equity component, net of tax | $ | 23,685 |  |  | $ | 173,628 |  |  | $ | 31,894 |  |  | $ | 175,658 |
Remaining amortization period (years) | 1.4 |  |  | 24.4 |  |  | 1.9 |  |  | 24.9 |
Fair Value of Notes (Level 2) | $ | 801,919 |  |  | $ | 2,219,497 |  |  |  |  |
Conversion rate (shares of common stock per $1,000 principal amount of notes) | 16.4605 |  |  | 29.5403 |  |  |  |  |
Conversion price (per share of common stock) | $ | 60.75 |  |  | $ | 33.85 |  |  |  |  |
If-converted value in excess of par value | $ | 350,306 |  |  | $ | 1,534,067 |  |  |  |  |
Estimated share dilution using average quarterly stock price $100.52 per share | 2,930 |  |  | 13,711 |  |  |  |  |
Warrants and Convertible Note Hedge Arrangements | The following table presents the details of the warrants and convertible note hedge arrangements as of December 25, 2016:
|  | 2018 Notes
| (shares in thousands)
Warrants: |  |
Underlying shares |  | 7,407 |
Estimated share dilution using average quarterly stock price $100.52 per share |  | 2,000 |
Exercise price |  | $ | 73.36 |
Expiration date range |  | August 15 - October 23, 2018 |
Convertible Note Hedge: |  |
Number of shares available from counterparties |  | 7,405 |
Exercise price |  | $ | 60.75 |
Schedule of Carrying Values and Estimated Fair Values of Debt Instruments [Table Text Block] | Selected additional information regarding the Senior Notes outstanding as of December 25, 2016 is as follows:
| Remaining Amortization period |  | Fair Value of Notes (Level 2)
| (years) |  | (in thousands)
2020 Notes | 3.2 |  | $ | 499,690 |
2021 Notes | 4.5 |  | $ | 790,192 |
2025 Notes | 8.2 |  | $ | 497,955 |
Schedule of Recognized Interest Cost Relating to Both Contractual Interest Coupon and Amortization of Discount on Liability Component of Notes | The following table presents the amount of interest cost recognized relating to both the contractual interest coupon and amortization of the debt discount, issuance costs, and effective portion of interest rate contracts with respect to the Convertible Notes, the Senior Notes, the term loan agreement and the revolving credit facility during the three and six months ended December 25, 2016 and December 27, 2015.
| Three Months Ended |  | Six Months Ended
December 25, 2016 |  | December 27, 2015 |  | December 25, 2016 |  | December 27, 2015
|  |  |  | (in thousands)
Contractual interest coupon | $ | 22,622 |  |  | $ | 14,750 |  |  | $ | 57,334 |  |  | $ | 29,577 |
Amortization of interest discount | 5,673 |  |  | 9,258 |  |  | 11,587 |  |  | 18,380 |
Amortization of issuance costs | 531 |  |  | 14,391 |  |  | 1,449 |  |  | 15,043 |
Effect of interest rate contracts, net | (2,566 | ) |  | 95 |  |  | (3,624 | ) |  | 189 |
Total interest cost recognized | $ | 26,260 |  |  | $ | 38,494 |  |  | $ | 66,746 |  |  | $ | 63,189 |

X
- Definition Tabular disclosure of warrants issued and note hedge held. Warrants outstanding are derivative securities that give the holder the right to purchase securities (usually equity) from the issuer at a specific price within a certain time frame. Note hedge are derivative securities that provide the Company with the right to put shares to a counterparty at a specified price within a certain time frame. Including disclose of the aggregate amount of securities called for by warrants or note hedge, the date from which the warrants or note hedge are exercisable, and the price at which the warrant or note hedge is exercisable. + References No definition available. + Details
Name: | lrcx_ScheduleOfEquityNoteWarrantsAndEquityNoteHedgeTableTextBlock
Namespace Prefix: | lrcx_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of interest expense related to convertible debt instruments which have been recognized for the period, including the contractual interest coupon, amortization of the debt discount, if any and amortization of debt issuance costs, if any. + References No definition available. + Details
Name: | lrcx_ScheduleOfInterestCostRecognizedRelatingToBothContractualInterestCouponAndAmortizationOfDiscountTableTableTextBlock
Namespace Prefix: | lrcx_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of borrowings which can be exchanged for a specified number of another security at the option of the issuer or the holder. Disclosures include, but are not limited to, principal amount, amortized premium or discount, and amount of liability and equity components. + References No definition available. + Details
Name: | us-gaap_ConvertibleDebtTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_DebtDisclosureAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information pertaining to carrying amount and estimated fair value of short-term and long-term debt instruments or arrangements, including but not limited to, identification of terms, features, and collateral requirements. + References No definition available. + Details
Name: | us-gaap_ScheduleOfCarryingValuesAndEstimatedFairValuesOfDebtInstrumentsTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of information pertaining to short-term and long-debt instruments or arrangements, including but not limited to identification of terms, features, collateral requirements and other information necessary to a fair presentation. + References No definition available. + Details
Name: | us-gaap_ScheduleOfDebtTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration