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Recently Issued Accounting Pronouncements | 12 Months Ended
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Jul. 02, 2022
Accounting Policies [Abstract] |
Recently Issued Accounting Pronouncements | Note 2. Recently Issued Accounting Pronouncements Recent Accounting Pronouncements Adopted 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 lease, lease classification and accounting for initial direct costs. For additional information refer to “Note 12. Leases.” In August 2018, the FASB issued ASU 2018-14 Defined Benefit Plans (Topic 715-20) - Changes to the Disclosure Requirements for Defined Benefit Plans, to amend the disclosure requirements related to defined benefit pension and other post-retirement plans. The Company adopted this guidance in the first quarter of fiscal 2022. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. In December 2019, the FASB issued ASU 2019-12 Income Taxes (Topic 740) - Simplifying the Accounting for Income Taxes, which simplifies the accounting for income taxes, by removing specific exceptions to the general principles in Topic 740, Income Taxes and clarifies certain aspects of the current guidance to promote consistency among reporting entities. The Company adopted this guidance in the first quarter of fiscal 2022. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. 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. The Company adopted ASU 2020-06 effective the first quarter of fiscal 2022, on a full retrospective basis. The elimination of the separation model for the convertible debt instruments reclassified the equity components of the Company’s Senior Convertible Notes previously in Additional paid-in capital to Long-term debt. Consequently, the temporary equity balance for the Senior Convertible Notes as of July 3, 2021 was eliminated. In addition, interest expense was reduced and net income was increased by $21.4 million and $20.3 million for fiscal 2021 and 2020, respectively. The adoption had no impact on total cash provided by (used in) operating, investing or financing activities in the Consolidated Statements of Cash Flows. The following table presents the impact of the standard adoption to select line items of the Company’s Consolidated Balance Sheet as of July 3, 2021 (in millions):
| July 3, 2021
| As Reported |  | Adjustment |  | As Adjusted
LIABILITIES AND STOCKHOLDERS’ EQUITY |  |  |  |  |
Short-term debt | $ | 414.2 |  |  | $ | 42.4 |  |  | $ | 456.6 |
Long-term debt | 209.8 |  |  | 14.3 |  |  | 224.1 |
Mezzanine equity - Senior Convertible Notes | 45.8 |  |  | (45.8) |  |  | — |
Additional paid-in capital | 70,265.5 |  |  | (82.3) |  |  | 70,183.2 |
Accumulated deficit | $ | (69,393.7) |  |  | $ | 71.4 |  |  | $ | (69,322.3) |
The following table presents the impact of the standard adoption to select line items of the Company’s Consolidated Statement of Operations for the years ended July 3, 2021 and June 27, 2020 (in millions, except per-share data):
| Year Ended July 3, 2021
| As Reported |  | Adjustment |  | As Adjusted
Interest Expense | $ | (36.1) |  |  | $ | 21.4 |  |  | $ | (14.7) |
Net income | $ | 46.1 |  |  | $ | 21.4 |  |  | $ | 67.5 |
Net income per share: |  |  |  |  |
Basic | $ | 0.20 |  |  | $ | 0.10 |  |  | $ | 0.30 |
Diluted | $ | 0.20 |  |  | $ | 0.09 |  |  | $ | 0.29 |
Shares used in per-share calculation: |  |  |  |  |
Basic | 228.7 |  | — |  |  | 228.7
Diluted | 235.9 |  | 0.4 |  |  | 236.3
| Year Ended June 27, 2020
| As Reported |  | Adjustment |  | As Adjusted
Interest Expense | $ | (33.7) |  |  | $ | 20.3 |  |  | $ | (13.4) |
Net income | $ | 28.7 |  |  | $ | 20.3 |  |  | $ | 49.0 |
Net income per share: |  |  |  |  |
Basic | $ | 0.13 |  |  | $ | 0.08 |  |  | $ | 0.21 |
Diluted | $ | 0.12 |  |  | $ | 0.09 |  |  | $ | 0.21 |
Shares used in per-share calculation: |  |  |  |  |
Basic | 229.4 |  | — |  |  | 229.4
Diluted | 233.7 |  | 1.1 |  |  | 234.8
In October 2021, the FASB issued ASU No. 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers, which requires that an entity (acquirer) recognize and measure contract assets and contract liabilities acquired in a business combination in accordance with ASC 606. At the acquisition date, an acquirer should account for the related revenue contracts in accordance with ASC 606 as if it had originated the contracts. This guidance is effective for the Company in first quarter of fiscal 2024 and early adoption is permitted. The Company elected to early adopt this guidance in the second quarter of fiscal 2022 on a retrospective basis to the beginning of the fiscal year. The adoption of this guidance did not have a material impact on the Company’s Consolidated Financial Statements. Recent Accounting Pronouncements Not Yet Adopted In November 2021, the FASB issued ASU 2021-10, Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance, to increase the transparency of government assistance including the disclosure of the types of assistance, an entity's accounting for the assistance, and the effect of the assistance on an entity's financial statements. This guidance is effective for the Company’s fiscal 2023 annual disclosures with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements but does not expect any material impact. In March 2022, the FASB issued ASU 2022-01, Derivatives and Hedging (Topic 815), which clarifies guidance on fair value hedge accounting of interest rate risk for portfolios of financial assets. The amendments in this update expand the current last-of-layer method of hedge accounting that permits only one hedged layer to allow multiple hedged layers of a single closed portfolio. To reflect that expansion, the last-of-layer method is renamed the portfolio layer method. This guidance is effective for the Company in the first quarter of fiscal 2024 with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements. In March 2022, the FASB issued ASU 2022-02, Financial Instruments - Credit Losses (Topic 326), which eliminates the accounting guidance on troubled debt restructurings for creditors in ASC 310 and amends the guidance on vintage disclosures to require disclosure of current-period gross write-offs by year of origination. The ASU also updates the requirements related to the accounting for credit losses under ASC 326 and adds enhanced disclosures for creditors with respect to loan refinancing and restructurings for borrowers experiencing financial difficulty. This guidance is effective for the Company in the first quarter of fiscal 2024 with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements. In June 2022, the FASB issued ASU 2022-03, Fair Value Measurement (Topic 820): Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions, which clarifies that a contractual restriction on the sale of an equity security is not considered part of the unit of account of the equity security and, therefore, is not considered in measuring fair value. The amendments also clarify that an entity cannot, as a separate unit of account, recognize and measure a contractual sale restriction. This guidance also requires certain disclosures for equity securities subject to contractual sale restrictions. The new guidance is required to be applied prospectively with any adjustments from the adoption of the amendments recognized in earnings and disclosed on the date of adoption. This guidance is effective for the Company in the first quarter of fiscal 2025 with early adoption permitted. The Company is evaluating the impact of adopting this new accounting guidance on its Consolidated Financial Statements.

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