XML 46 R23.htm IDEA: XBRL DOCUMENT
v3.21.2

Leases | 12 Months Ended
--- | ---
Jun. 27, 2021
Leases [Abstract] |
Leases | Leases The Company leases certain office spaces, manufacturing and warehouse spaces, equipment, and vehicles. While the majority of the Company’s lease arrangements are operating leases, the Company has certain leases that qualify as finance leases. The components of lease expense were as follows for the years ended June 27, 2021 and June 28, 2020:
| Year Ended
| June 27, 2021 |  | June 28, 2020
| (in thousands)
Financing lease cost: |  |  |
Amortization of right-of-use assets | $ | 7,131 |  |  | $ | 3,613 |
Interest on lease liabilities | 697 |  |  | 506 |
Total finance lease cost | $ | 7,828 |  |  | $ | 4,119 |
Operating lease cost | $ | 51,519 |  |  | $ | 46,101 |
Variable lease cost | 219,040 |  |  | 91,851 |
Variable lease payments are expensed as incurred and are not included within the right of use asset and lease liability calculation. Variable lease payments primarily include costs associated with the Company’s third-party logistics arrangements that contain one or more embedded leases. Variable lease costs will fluctuate based on factory output and material receipt volumes. Short-term rental expense, for agreements less than one year in duration, were immaterial for the twelve months ended June 27, 2021 and June 28, 2020, respectively. Supplemental cash flow information related to leases was as follows as of June 27, 2021 and June 28, 2020:
| Year Ended
| June 27, 2021 |  | June 28, 2020
| (in thousands)
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows paid for operating leases | $ | 63,895 |  |  | $ | 50,223 |
Financing cash flows paid for principal portion of finance leases | 5,952 |  |  | 3,539 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |
Operating leases | $ | 48,993 |  |  | 108,816 |
Finance leases | 29,497 |  |  | 3,019 |
Supplemental balance sheet information related to leases were as follows as of June 27, 2021 and June 28, 2020:
| June 27, 2021 |  | June 28, 2020
| (in thousands)
Operating leases |  |  |
Other assets | $ | 173,784 |  |  | $ | 174,583 |
Accrued expenses and other current liabilities | $ | 45,310 |  |  | $ | 49,480 |
Other long-term liabilities | 118,385 |  |  | 123,889 |
Total operating lease liabilities | $ | 163,695 |  |  | $ | 173,369 |
Finance Leases |  |  |
Property and Equipment, net | $ | 44,054 |  |  | $ | 18,409 |
Current portion of long-term debt and lease liabilities | $ | 11,349 |  |  | $ | 3,770 |
Long-term debt and lease liabilities, less current portion | 29,398 |  |  | 11,477 |
Total finance lease liabilities | $ | 40,747 |  |  | $ | 15,247 |
| June 27, 2021 |  | June 28, 2020
| Weighted-Average Remaining Lease Term |  | Weighted-Average Discount Rate |  | Weighted-Average Remaining Lease Term |  | Weighted-Average Discount Rate
| (in years) |  |  |  | (in years) |  |
Operating leases | 5.5 |  | 2.30 | % |  | 9.0 |  | 2.57 | %
Finance leases | 5.3 |  | 1.69 | % |  | 4.1 |  | 2.79 | %
As of June 27, 2021, the maturities of lease liabilities are as follows:
| Operating Leases |  | Finance Leases
| (in thousands)
2022 | $ | 48,487 |  |  | $ | 11,870 |
2023 | 32,774 |  |  | 6,438 |
2024 | 22,756 |  |  | 5,882 |
2025 | 17,803 |  |  | 5,152 |
2026 | 12,702 |  |  | 5,062 |
Thereafter | 38,628 |  |  | 8,244 |
Total lease payments | $ | 173,150 |  |  | $ | 42,648 |
Less imputed interest | (9,455) |  |  | (1,901) |
Total | $ | 163,695 |  |  | $ | 40,747 |
Selected Leases and Related Guarantees The Company had leases regarding certain improved properties in Fremont and Livermore, California (the “California Facility Leases”) that were classified as operating leases as of June 28, 2020. On September 21, 2020, the Company renewed these leases for an additional seven-year term, and concluded the modified leases are finance leases, and recognized approximately $31.4 million of property and equipment, net, for the associated right of use assets, and $29.8 million of finance lease obligations ($3.1 million classified in current portion of long-term debt and finance lease obligations and the remainder in long-term debt and finance lease obligations, less current portion). The Company is required to maintain cash collateral in an aggregate of approximately $250 million in separate interest-bearing accounts as security for the Company’s obligations. These amounts are recorded with other restricted cash and investments in the Company’s Consolidated Balance Sheet as of June 27, 2021 and June 28, 2020. During the term of the California Facility Leases and when the terms of the California Facility Leases expire, the property subject to the California Facility Leases may be re-marketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate maximum guarantee made by the Company under the California Facility Leases is $298.4 million. The Company leases the majority of its administrative, R&D and manufacturing facilities, regional sales/service offices, and certain equipment under non-cancelable leases. Certain of the Company’s facility leases for buildings located at its Fremont, California headquarters; Tualatin, Oregon campus; and certain other facility leases provide the Company with options to extend the leases for additional periods or to purchase the facilities. Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation. The Company’s rental expense for facilities occupied during fiscal year 2019 was $28.1 million.
Leases | Leases The Company leases certain office spaces, manufacturing and warehouse spaces, equipment, and vehicles. While the majority of the Company’s lease arrangements are operating leases, the Company has certain leases that qualify as finance leases. The components of lease expense were as follows for the years ended June 27, 2021 and June 28, 2020:
| Year Ended
| June 27, 2021 |  | June 28, 2020
| (in thousands)
Financing lease cost: |  |  |
Amortization of right-of-use assets | $ | 7,131 |  |  | $ | 3,613 |
Interest on lease liabilities | 697 |  |  | 506 |
Total finance lease cost | $ | 7,828 |  |  | $ | 4,119 |
Operating lease cost | $ | 51,519 |  |  | $ | 46,101 |
Variable lease cost | 219,040 |  |  | 91,851 |
Variable lease payments are expensed as incurred and are not included within the right of use asset and lease liability calculation. Variable lease payments primarily include costs associated with the Company’s third-party logistics arrangements that contain one or more embedded leases. Variable lease costs will fluctuate based on factory output and material receipt volumes. Short-term rental expense, for agreements less than one year in duration, were immaterial for the twelve months ended June 27, 2021 and June 28, 2020, respectively. Supplemental cash flow information related to leases was as follows as of June 27, 2021 and June 28, 2020:
| Year Ended
| June 27, 2021 |  | June 28, 2020
| (in thousands)
Cash paid for amounts included in the measurement of lease liabilities: |  |  |
Operating cash flows paid for operating leases | $ | 63,895 |  |  | $ | 50,223 |
Financing cash flows paid for principal portion of finance leases | 5,952 |  |  | 3,539 |
Right-of-use assets obtained in exchange for lease obligations: |  |  |
Operating leases | $ | 48,993 |  |  | 108,816 |
Finance leases | 29,497 |  |  | 3,019 |
Supplemental balance sheet information related to leases were as follows as of June 27, 2021 and June 28, 2020:
| June 27, 2021 |  | June 28, 2020
| (in thousands)
Operating leases |  |  |
Other assets | $ | 173,784 |  |  | $ | 174,583 |
Accrued expenses and other current liabilities | $ | 45,310 |  |  | $ | 49,480 |
Other long-term liabilities | 118,385 |  |  | 123,889 |
Total operating lease liabilities | $ | 163,695 |  |  | $ | 173,369 |
Finance Leases |  |  |
Property and Equipment, net | $ | 44,054 |  |  | $ | 18,409 |
Current portion of long-term debt and lease liabilities | $ | 11,349 |  |  | $ | 3,770 |
Long-term debt and lease liabilities, less current portion | 29,398 |  |  | 11,477 |
Total finance lease liabilities | $ | 40,747 |  |  | $ | 15,247 |
| June 27, 2021 |  | June 28, 2020
| Weighted-Average Remaining Lease Term |  | Weighted-Average Discount Rate |  | Weighted-Average Remaining Lease Term |  | Weighted-Average Discount Rate
| (in years) |  |  |  | (in years) |  |
Operating leases | 5.5 |  | 2.30 | % |  | 9.0 |  | 2.57 | %
Finance leases | 5.3 |  | 1.69 | % |  | 4.1 |  | 2.79 | %
As of June 27, 2021, the maturities of lease liabilities are as follows:
| Operating Leases |  | Finance Leases
| (in thousands)
2022 | $ | 48,487 |  |  | $ | 11,870 |
2023 | 32,774 |  |  | 6,438 |
2024 | 22,756 |  |  | 5,882 |
2025 | 17,803 |  |  | 5,152 |
2026 | 12,702 |  |  | 5,062 |
Thereafter | 38,628 |  |  | 8,244 |
Total lease payments | $ | 173,150 |  |  | $ | 42,648 |
Less imputed interest | (9,455) |  |  | (1,901) |
Total | $ | 163,695 |  |  | $ | 40,747 |
Selected Leases and Related Guarantees The Company had leases regarding certain improved properties in Fremont and Livermore, California (the “California Facility Leases”) that were classified as operating leases as of June 28, 2020. On September 21, 2020, the Company renewed these leases for an additional seven-year term, and concluded the modified leases are finance leases, and recognized approximately $31.4 million of property and equipment, net, for the associated right of use assets, and $29.8 million of finance lease obligations ($3.1 million classified in current portion of long-term debt and finance lease obligations and the remainder in long-term debt and finance lease obligations, less current portion). The Company is required to maintain cash collateral in an aggregate of approximately $250 million in separate interest-bearing accounts as security for the Company’s obligations. These amounts are recorded with other restricted cash and investments in the Company’s Consolidated Balance Sheet as of June 27, 2021 and June 28, 2020. During the term of the California Facility Leases and when the terms of the California Facility Leases expire, the property subject to the California Facility Leases may be re-marketed. The Company has guaranteed to the lessor that each property will have a certain minimum residual value. The aggregate maximum guarantee made by the Company under the California Facility Leases is $298.4 million. The Company leases the majority of its administrative, R&D and manufacturing facilities, regional sales/service offices, and certain equipment under non-cancelable leases. Certain of the Company’s facility leases for buildings located at its Fremont, California headquarters; Tualatin, Oregon campus; and certain other facility leases provide the Company with options to extend the leases for additional periods or to purchase the facilities. Certain of the Company’s facility leases provide for periodic rent increases based on the general rate of inflation. The Company’s rental expense for facilities occupied during fiscal year 2019 was $28.1 million.

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

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI http://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration