XML 45 R22.htm IDEA: XBRL DOCUMENT
v3.21.2

Long Term Debt and Other Borrowings | 12 Months Ended
--- | ---
Jun. 27, 2021
Debt Disclosure [Abstract] |
Long Term Debt and Other Borrowings | Long Term Debt and Other Borrowings As of June 27, 2021, and June 28, 2020, the Company’s outstanding debt consisted of the following:
| June 27, 2021 |  | June 28, 2020 |
| Amount (in thousands) |  | Effective Interest Rate |  | Amount (in thousands) |  | Effective Interest Rate |
Fixed-rate 2.80% Senior Notes Due June 15, 2021 (“2021 Notes”) | $ | — |  |  | — | % |  | $ | 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 1.90% Senior Note Due June 15, 2030 ("2030 Notes") | 750,000 |  |  | 2.01 | % |  | 750,000 |  |  | 2.01 | % |
Fixed-rate 2.625% Convertible Notes Due May 15, 2041 (“2041 Notes”) | — |  | (1) | — | % |  | 48,460 |  | (2) | 4.28 | % |
Fixed-rate 4.875% Senior Notes Due March 15, 2049 ("2049 Notes") | 750,000 |  |  | 4.93 | % |  | 750,000 |  |  | 4.93 | % |
Fixed-rate 2.875% Senior Note Due June 15, 2050 ("2050 Notes") | 750,000 |  |  | 2.93 | % |  | 750,000 |  |  | 2.93 | % |
Fixed-rate 3.125% Senior Note Due June 15, 2060 ("2060 Notes") | 500,000 |  |  | 3.18 | % |  | 500,000 |  |  | 3.18 | % |
Total debt outstanding, at par | 5,000,000 |  |  |  |  | 5,848,460 |  |  |  |
Unamortized discount | (38,243) |  |  |  |  | (53,086) |  |  |  |
Fair value adjustment - interest rate contracts | 6,621 |  | (3) |  |  | 8,405 |  | (3) |  |
Unamortized bond issuance costs | (7,443) |  |  |  |  | (8,301) |  |  |  |
Total debt outstanding, at carrying value | $ | 4,960,935 |  |  |  |  | $ | 5,795,478 |  |  |  |
Reported as: |  |  |  |  |  |  |  |
Current portion of long-term debt | $ | — |  |  |  |  | $ | 836,107 |  |  |  |
Long-term debt | 4,960,935 |  |  |  |  | 4,959,371 |  |  |  |
Total debt outstanding, at carrying value | $ | 4,960,935 |  |  |  |  | $ | 5,795,478 |  |  |  |
(1)On March 26, 2021, the Company issued a notice of redemption to the existing bondholders with a redemption date of May 21, 2021. As such, the convertible notes outstanding on May 21, 2021 were redeemed by the Company. (2)As of June 28, 2020, these notes were convertible at the option of the bondholder. This is a result of the following condition being met: 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 2041 Notes were classified in current liabilities and a portion of the equity component associated with the convertible notes, representing the unamortized discount, was classified in temporary equity on the Company’s Consolidated Balance Sheets. (3)This amount represents a cumulative fair value gain for discontinued hedging relationships, net of an immaterial amount of amortization as of the periods presented. The Company’s contractual cash obligations relating to its outstanding debt as of June 27, 2021, were as follows:
Payments Due by Fiscal Year: |
| (in thousands)
2022 | $ | — |
2023 | — |
2024 | — |
2025 | 500,000 |
2026 | 750,000 |
Thereafter | 3,750,000 |
Total | $ | 5,000,000 |
Convertible Senior Notes In June 2012, with the acquisition of Novellus, the Company assumed $700 million in aggregate principal amount of 2.625% Convertible Senior Notes due May 15, 2041 (the “2041 Notes”). On May 21, 2021, the 2041 Notes then outstanding were redeemed pursuant to Section 6.01 of the underlying indenture at a price equal to outstanding principal plus accrued and unpaid interest. No 2041 Notes were outstanding as of June 27, 2021. Selected additional information regarding the 2041 Notes outstanding as of June 28, 2020, is as follows:
|  |  | 2041 Notes
|  |  | June 28, 2020
|  |  | (in thousands, except years, percentages, conversion rate, and conversion price)
Carrying amount of permanent equity component, net of tax |  |  | $ | 161,467 |
Carrying amount of temporary equity component, net of tax |  |  | $ | 10,995 |
Remaining amortization period (years) |  |  | 20.9
Senior Notes On May 5, 2020, the company completed a public offering of $750 million aggregate principal amount of the Company’s Senior Notes due June 15, 2030 (the “2030 Notes”), $750 million aggregate principal amount of the Company’s Senior Notes due June 15, 2050 (the “2050 Notes”), and $500 million aggregate principal amount of the Company’s Senior Notes due June 15, 2060 (the “2060 Notes”). The Company pays interest at an annual rate of 1.90%, 2.875%, and 3.125%, on the 2030, 2050, and 2060 Notes, respectively, on a semi-annual basis on June 15 and December 15 of each year. On March 4, 2019, the company completed a public offering of $750 million aggregate principal amount of the Company’s Senior Notes due March 15, 2026 (the “2026 Notes”), $1.0 billion aggregate principal amount of the Company’s Senior Notes due March 15, 2029 (the “2029 Notes”), and $750 million aggregate principal amount of the Company’s Senior Notes due March 15, 2049 (the “2049 Notes”). The Company pays interest at an annual rate of 3.75%, 4.00%, and 4.875%, on the 2026, 2029, and 2049 Notes, respectively, on a semi-annual basis on March 15 and September 15 of each year. On June 7, 2016, the Company completed a public offering of $800 million aggregate principal amount of Senior Notes due June 15, 2021, (the “2021 Notes”). The Company settled the 2021 Notes upon maturity, June 15, 2021. On March 12, 2015, the Company completed a public offering of $500 million aggregate principal amount of the Company’s Senior Notes due March 15, 2025 (the “2025 Notes”). The Company pays interest at an annual rate of 3.80% on the 2025 Notes on a semi-annual basis on March 15 and September 15 of each year. The Company may redeem the 2025, 2026, 2029, 2030, 2049, 2050, and 2060 Notes (collectively the “Senior Notes”) at a redemption price equal to 100% of the principal amount of such series (“par”), plus a “make whole” premium as described in the indenture in respect to the Senior Notes and accrued and unpaid interest before December 15, 2024 for the 2025 Notes, before January 15, 2026 for the 2026 Notes, before December 15, 2028 for the 2029 Notes, before March 15, 2030 for the 2030 Notes, before September 15, 2048 for the 2049 Notes, before December 15, 2049 for the 2050 Notes, and before December 15, 2059 for the 2060 Notes. The Company may redeem the Senior Notes at par, plus accrued and unpaid interest at any time on or after December 24, 2024 for the 2025 Notes, on or after January 15, 2026 for the 2026 Notes, on or after December 15, 2028 for the 2029 Notes, on or after March 15, 2030 for the 2030 Notes, on or after September 15, 2048 for the 2049 Notes, on or after December 15, 2049 for the 2050 Notes, and on or after December 15, 2059 for the 2060 Notes. In addition, upon the occurrence of certain events, as described in the indenture, the Company will be required to make an offer to repurchase the Senior Notes at a price equal to 101% of the principal amount of the respective note, plus accrued and unpaid interest. Selected additional information regarding the Senior Notes outstanding as of June 27, 2021, is as follows:
| Remaining Amortization period |  | Fair Value of Notes (Level 2)
| (years) |  | (in thousands)
2025 Notes | 3.7 |  | $ | 550,340 |
2026 Notes | 4.7 |  | $ | 838,890 |
2029 Notes | 7.7 |  | $ | 1,157,490 |
2030 Notes | 9.0 |  | $ | 748,193 |
2049 Notes | 27.7 |  | $ | 1,004,213 |
2050 Notes | 29.0 |  | $ | 746,910 |
2060 Notes | 39.0 |  | $ | 514,050 |
Revolving Credit Facility On March 12, 2014, the Company established an unsecured Credit Agreement. This agreement was amended on November 10, 2015 (the “Amended and Restated Credit Agreement”), October 13, 2017 (the “2nd Amendment”), February 25, 2019 (the “3rd Amendment”), and June 17, 2021 (the “Second Amended and Restated Credit Agreement). Among other things, the Second Amended and Restated Credit Agreement provides for a $250 million increase in the Company’s revolving credit facility, from $1.25 billion to $1.50 billion with a syndicate of lenders, along with an expansion option that will allow the Company, subject to certain requirements, to request an increase in the facility of up to an additional $600.0 million, for a potential total commitment of $2.10 billion. The facility matures on June 17, 2026. Interest on amounts borrowed under the credit facility is, at the Company’s option, based on (1) a base rate, defined as the greatest of (a) prime rate, (b) Federal Funds rate plus 0.5%, or (c) one-month LIBOR plus 1.0%, plus a spread of 0.00% to 0.30%, or (2) LIBOR , plus a spread of 0.805% to 1.30%, in each case plus a facility fee, with such spread and facility fee determined based on the rating of the Company’s non-credit enhanced, senior unsecured long-term debt. Such spreads and such facility fees are further subject to sustainability adjustments as described in the Second Amended and Restated Credit Agreement, in each case based on the Company’s performance of certain energy savings and health and safety standards metrics. Principal and any accrued and unpaid interest is due and payable upon maturity. Additionally, the Company will pay the lenders a quarterly commitment fee that varies based on the Company’s credit rating. The Second Amended and Restated Credit Agreement incorporates provisions for the replacement of LIBOR or other reference rates with alternative reference rates under certain circumstances, including when, or if, such reference rates cease to be available. The Second Amended and Restated Credit Agreement contains affirmative covenants, negative covenants, financial covenants, and events of default. As of June 27, 2021, the Company had no borrowings outstanding under the credit facility and was in compliance with all financial covenants. Commercial Paper Program On November 13, 2017, the Company established a commercial paper program under which the Company may issue unsecured commercial paper notes on a private placement basis up to a maximum aggregate principal amount of $1.25 billion. In July 2021, the Company amended the CP Program size to a maximum aggregate amount outstanding at any time of $1.5 billion. The net proceeds from the CP Program will be used for general corporate purposes, including repurchases of the Company’s Common Stock from time to time under the Company’s stock repurchase program. Amounts available under the CP Program may be re-borrowed. The CP Program is backstopped by the Company’s Revolving Credit Arrangement. As of June 27, 2021, the Company had no outstanding borrowings under the CP Program. Interest Cost 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 Senior Notes, convertible notes, commercial paper, and the revolving credit facility during the fiscal years ended June 27, 2021, June 28, 2020, and June 30, 2019.
| Year Ended
| June 27, 2021 |  | June 28, 2020 |  | June 30, 2019
| (in thousands)
Contractual interest coupon | $ | 197,367 |  |  | $ | 169,483 |  |  | $ | 100,712 |
Amortization of interest discount | 3,934 |  |  | 4,280 |  |  | 3,937 |
Amortization of issuance costs | 1,639 |  |  | 1,632 |  |  | 1,426 |
Effect of interest rate contracts, net | 2,070 |  |  | 1,037 |  |  | 4,086 |
Total interest cost recognized | $ | 205,010 |  |  | $ | 176,432 |  |  | $ | 110,161 |

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 The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 470 -URI http://asc.fasb.org/topic&trid=2208564 + Details
Name: | us-gaap_DebtDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration