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Organization and Summary of Significant Accounting Policies (Tables)
12 Months Ended
Jun. 27, 2015
Accounting Policies [Abstract]  
Investments in Available-for-Sale Securities and Cash Equivalents

Our cash equivalents and investments classified as available-for-sale securities as of the end of fiscal 2015 and 2014 were as follows (in millions):

 

 

 

2015

 

 

 

 

 

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Fair

 

 

 

Cost

 

 

Gains

 

 

Value

 

Reported as cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

376.3

 

 

$

 

 

$

376.3

 

Reported as current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Auction rate securities

 

 

0.6

 

 

 

 

 

 

0.6

 

Reported as non-current assets:

 

 

 

 

 

 

 

 

 

 

 

 

Auction rate securities

 

 

7.3

 

 

 

7.9

 

 

 

15.2

 

Total available-for-sale securities

 

$

384.2

 

 

$

7.9

 

 

$

392.1

 

 

 

 

2014

 

 

 

 

 

 

 

Gross

 

 

Gross

 

 

 

 

 

 

 

Amortized

 

 

Unrealized

 

 

Unrealized

 

 

Fair

 

 

 

Cost

 

 

Gains

 

 

Losses

 

 

Value

 

Reported as cash equivalents:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market funds

 

$

439.7

 

 

$

 

 

$

 

 

$

439.7

 

Reported as non-current assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Auction rate securities

 

 

11.2

 

 

 

8.7

 

 

 

0.1

 

 

 

19.8

 

Total available-for-sale securities

 

$

450.9

 

 

$

8.7

 

 

$

0.1

 

 

$

459.5

 

 

Financial Assets and Liabilities Measured at Fair Value on a Recurring Basis

Financial assets and liabilities measured at fair value on a recurring basis, by level within the fair value hierarchy, as of the end of fiscal 2015 and 2014 were as follows (in millions):

 

 

 

2015

 

 

2014

 

 

 

Level 1

 

 

Level 2

 

 

Level 3

 

 

Level 1

 

 

Level 3

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Money market

 

$

376.3

 

 

$

 

 

$

 

 

$

439.7

 

 

$

 

Auction rate securities

 

 

 

 

 

 

 

 

15.8

 

 

 

 

 

 

19.8

 

Total available-for-sale securities

 

$

376.3

 

 

$

 

 

$

15.8

 

 

$

439.7

 

 

$

19.8

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Contingent consideration liabilities recorded for

   business combination

 

$

 

 

$

 

 

$

44.2

 

 

$

 

 

$

110.1

 

Foreign currency contract liabilities

 

$

 

 

$

1.3

 

 

$

 

 

$

 

 

$

 

 

Changes in Fair Value of Level 3 Financial Assets

Changes in fair value of our Level 3 financial assets for fiscal 2015 and 2014 were as follows (in millions):

 

 

 

2015

 

 

2014

 

Beginning balance

 

$

19.8

 

 

$

17.0

 

Net unrealized gain

 

 

0.9

 

 

 

2.8

 

Redemptions

 

 

(4.9

)

 

 

 

Ending balance

 

$

15.8

 

 

$

19.8

 

 

Changes in Fair Value of Contingent Consideration

Changes in fair value of our Level 3 financial liabilities for fiscal 2015 and 2014 were as follows (in millions):

 

 

 

2015

 

 

2014

 

Beginning balance

 

$

110.1

 

 

$

8.2

 

Contingent consideration liability incurred

 

 

 

 

 

37.5

 

Cash settlement of contingent consideration liability

 

 

(25.6

)

 

 

 

Issuance of common stock in settlement of liability

 

 

(21.5

)

 

 

(5.5

)

Accretion and remeasurement

 

 

(18.8

)

 

 

69.9

 

Ending balance

 

$

44.2

 

 

$

110.1

 

 

Accounts Receivable Balance Percentage of Different Customers

The following customers accounted for more than 10% of our accounts receivable balance as of the end of fiscal 2015 and 2014:

 

 

 

2015

 

 

2014

 

Customer A

 

 

20%

 

 

*

 

Customer B

 

 

13%

 

 

 

27%

 

Customer C

 

 

13%

 

 

*

 

Customer D

 

 

13%

 

 

*

 

Customer E

 

*

 

 

 

12%

 

 

*

Less than 10%

Inventories

Inventories are stated at the lower of cost (first-in, first-out method) or market (estimated net realizable value) as of the end of fiscal 2015 and 2014 and consisted of the following (in millions):

 

 

 

2015

 

 

2014

 

Raw materials

 

$

75.5

 

 

$

58.7

 

Finished goods

 

 

64.7

 

 

 

23.6

 

 

 

$

140.2

 

 

$

82.3

 

 

Schedule of Goodwill

Goodwill represents the excess of the purchase price over the fair value of net tangible and identifiable intangible assets acquired.  Changes in our goodwill balance for fiscal 2015 and 2014 were as follows (in millions):

 

 

 

2015

 

 

2014

 

Beginning balance

 

$

61.0

 

 

$

20.7

 

Acquisition activity

 

 

153.4

 

 

 

39.0

 

Post acquisition adjustments

 

 

(7.6

)

 

 

1.3

 

Ending balance

 

$

206.8

 

 

$

61.0

 

 

Other Accrued Liabilities

As of the end of fiscal 2015 and 2014, other accrued liabilities consisted of the following (in millions):

 

 

 

2015

 

 

2014

 

Customer obligations

 

$

36.9

 

 

$

38.7

 

Inventory obligations

 

 

17.2

 

 

 

4.1

 

Warranty

 

 

2.8

 

 

 

1.7

 

Other

 

 

17.2

 

 

 

12.2

 

 

 

$

74.1

 

 

$

56.7

 

 

Changes in Warranty Liability

Changes in our warranty liability (included in other accrued liabilities) for fiscal 2015 and 2014 were as follows (in millions):

 

 

 

2015

 

 

2014

 

Beginning accrued warranty

 

$

1.7

 

 

$

1.7

 

Provision for product warranties

 

 

4.4

 

 

 

2.4

 

Cost of warranty claims and settlements

 

 

(3.3

)

 

 

(2.4

)

Ending accrued warranty

 

$

2.8

 

 

$

1.7