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Recently Issued Accounting Pronouncements | 12 Months Ended
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Jul. 03, 2021
Accounting Policies [Abstract] |
Recently Issued Accounting Pronouncements | Note 2. Recently Issued Accounting Pronouncements Recent Accounting Pronouncements Adopted In June 2016, the FASB issued guidance that changes the accounting for recognizing impairments of financial assets. Under the new guidance, credit losses for certain types of financial assets are estimated based on expected losses. In the first quarter of fiscal 2021 the Company adopted the accounting standard using the modified retrospective approach. The adoption of the new standard did not have a material impact on the Company’s Consolidated Financial Statements. In the first quarter of fiscal 2020 the Company adopted ASC 842 - Leases using the modified retrospective approach. The Company elected to apply the optional transition approach of not adjusting comparative period financial information for the adoption impact.The Company also elected the package of practical expedients to not reassess whether a contract contains a leas, lease classification and accounting for initial direct costs. For additional information refer to “Note 12. Leases.” Recent Accounting Pronouncements Not Yet Adopted In August 2020, the FASB issued ASU 2020-06, Accounting for Convertible Instruments and Contracts in an Entity’s Own Equity, which simplifies the accounting for convertible instruments with characteristics of liability and equity. This new guidance removes separation models for certain convertible debt instruments which will now be accounted for as a single liability measured at amortized cost. In addition, the interest expense recognized for these instruments will typically be closer to the coupon interest rate due to the removal of the separation model's non-cash discount amortization. ASU 2020-06 is effective for the Company in the first quarter of fiscal 2023, with early adoption permitted for the first quarter of fiscal 2022. Adoption of this new guidance can either be on a modified retrospective or full retrospective basis. The Company will adopt the new guidance in the first quarter of fiscal 2022, on a full retrospective basis, reflecting the application of the new standard in each prior reporting period. The elimination of the separation model for the convertible debt instruments is expected to reduce additional paid in capital by approximately $80 million and $130 million as of July 3, 2021 and June 27, 2020, respectively. The removal of the non-cash debt discount amortization will reduce interest expense and increase net income by approximately $20 million for the each of the fiscal years ended 2021 and 2020. In addition, the adoption will eliminate the temporary equity balance for the convertible senior notes as of July 3, 2021 of $45.8 million. These adjustments will result in the reported balance of the convertible notes being more consistent with the par value offset only by the unamortized issuance costs. We currently expect the adoption of ASU 2020-06 will result in the reduction of non-cash interest expense for fiscal 2022 and until the affected notes have been settled with a corresponding increase in income attributable to common stockholders for both basic and diluted earnings per share. The adoption will have no impact on the Consolidated Statement of Cash Flows. In December 2019, the FASB issued guidance which simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. The guidance is effective for the Company in the first quarter of fiscal year 2022. The Company does not believe adoption of this new accounting guidance will have a material impact on its Consolidated Financial Statements. In August 2018, the FASB issued guidance to amend the disclosure requirements related to defined benefit pension and other post-retirement plans. Some of the changes include adding a disclosure requirement for significant gains and losses related to changes in the benefit obligation for the period, and removing the amounts in accumulated other comprehensive income expected to be recognized as components of net periodic benefit cost over the next fiscal year. This guidance is effective for the Company in the first quarter of fiscal 2022. The Company does not believe adoption of this new accounting guidance will have a material impact on its Consolidated Financial Statements.

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- Definition The entire disclosure for all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -SubTopic 10 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=123372394&loc=d3e18726-107790 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 235 -URI http://asc.fasb.org/topic&trid=2122369 + Details
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