XML 27 R13.htm IDEA: XBRL DOCUMENT
v3.21.2

Financial Statement Details | 12 Months Ended
--- | ---
Jun. 27, 2021
Organization, Consolidation and Presentation of Financial Statements [Abstract] |
Financial Statement Details | Financial Statement Details Accounts Receivable, net Accounts receivable, net consisted of the following:
(in millions of U.S. Dollars) | June 27, 2021 |  | June 28, 2020
Billed trade receivables | $95.6 |  |  | $71.5 |
Unbilled contract receivables | 0.6 |  |  | 1.2 |
Royalties | 0.5 |  |  | 0.4 |
| 96.7 |  |  | 73.1 |
Allowance for bad debts | (0.8) |  |  | (0.7) |
Accounts receivable, net | $95.9 |  |  | $72.4 |
Changes in the Company’s allowance for bad debts were as follows:
| Fiscal Years Ended
(in millions of U.S. Dollars) | June 27, 2021 |  | June 28, 2020 |  | June 30, 2019
Balance at beginning of period | $0.7 |  |  | $0.2 |  |  | $0.2 |
Current period provision change | 0.1 |  |  | 0.6 |  |  | — |
Write-offs, net of recoveries | — |  |  | (0.1) |  |  | — |
Balance at end of period | $0.8 |  |  | $0.7 |  |  | $0.2 |
Inventories Inventories consisted of the following:
(in millions of U.S. Dollars) | June 27, 2021 |  | June 28, 2020
Raw material | $43.3 |  |  | $36.9 |
Work-in-progress | 109.5 |  |  | 73.9 |
Finished goods | 13.8 |  |  | 11.1 |
Inventories | $166.6 |  |  | $121.9 |
In addition to inventory held by the Company associated with the Wolfspeed business, the Company holds inventory related to the Wafer Supply Agreement entered into in connection with the LED Business Divestiture as well as unallocated inventoried costs consisting primarily of manufacturing employees’ stock-based compensation, profit sharing and quarterly or annual incentive compensation, matching contributions under the Company’s 401(k) plan, and acquisition related costs.
| June 27, 2021 |  | June 28, 2020
Wolfspeed | $159.2 |  |  | $97.3 |
Wafer Supply Agreement inventory (1) | — |  |  | 19.0 |
Unallocated inventories | 7.4 |  |  | 5.6 |
Consolidated inventories | $166.6 |  |  | $121.9 |
(1) Inventory related to the Wafer Supply Agreement as of June 27, 2021 is recorded within other current assets in the consolidated balance sheets. Property and Equipment, net Property and equipment, net consisted of the following:
(in millions of U.S. Dollars) | June 27, 2021 |  | June 28, 2020
Machinery and equipment | $988.6 |  |  | $859.9 |
Land and buildings | 383.9 |  |  | 363.1 |
Computer hardware/software | 51.5 |  |  | 46.8 |
Furniture and fixtures | 8.0 |  |  | 8.1 |
Leasehold improvements and other | 9.6 |  |  | 9.7 |
Vehicles | 0.7 |  |  | 0.6 |
Finance lease assets | 15.5 |  |  | 15.4 |
Construction in progress | 767.8 |  |  | 366.8 |
Property and equipment, gross | 2,225.6 |  |  | 1,670.4 |
Accumulated depreciation | (933.3) |  |  | (899.6) |
Property and equipment, net | $1,292.3 |  |  | $770.8 |
Depreciation of property and equipment totaled $100.5 million, $76.7 million and $64.9 million for the years ended June 27, 2021, June 28, 2020 and June 30, 2019, respectively. During the years ended June 27, 2021, June 28, 2020 and June 30, 2019, the Company recognized approximately $4.3 million, $3.3 million and $0.2 million, respectively, as losses on disposals or impairments of property and equipment of which $3.4 million and $3.0 million are related to the Company's factory optimization plan and are reflected in other operating expense for the years ended June 27, 2021 and June 28, 2020, respectively. The remaining amount of these charges are reflected in loss on disposal or impairment of other assets in the consolidated statements of operations. In the fourth quarter of fiscal 2021, the Company modified its long-range plan regarding a portion of its Durham, North Carolina campus. As a result, the Company has decided it will no longer complete the construction of certain buildings on the Durham campus. The carrying value of the abandoned assets has been reduced to an estimated salvage value of approximately $20.0 million as of June 27, 2021. The Company’s tangible long-lived assets by country are as follows:
(in millions of U.S. Dollars) | June 27, 2021 |  | June 28, 2020
United States | $1,258.1 |  |  | $758.2 |
China | 2.3 |  |  | 2.6 |
Other | 31.9 |  |  | 10.0 |
Total | $1,292.3 |  |  | $770.8 |
Accounts Payable and Accrued Expenses Accounts payable and accrued expenses consisted of the following:
(in millions of U.S. Dollars) | June 27, 2021 |  | June 28, 2020
Accounts payable, trade | $44.2 |  |  | $88.1 |
Accrued salaries and wages | 69.5 |  |  | 42.3 |
Accrued expenses | 265.7 |  |  | 55.3 |
Other | 1.7 |  |  | 4.1 |
Accounts payable and accrued expenses | $381.1 |  |  | $189.8 |
Accounts payable and accrued expenses as of June 27, 2021 and June 28, 2020 includes accrued property and equipment of $248.3 million and $79.4 million, respectively. Accrued property and equipment as of June 30, 2019 was $20.1 million. Accumulated Other Comprehensive Income, net of taxes Accumulated other comprehensive income, net of taxes consisted of the following:
(in millions of U.S. Dollars) | June 27, 2021 |  | June 28, 2020
Currency translation gain | $— |  |  | $9.5 |
Net unrealized gain on available-for-sale securities (1) | 2.7 |  |  | 6.5 |
Accumulated other comprehensive income, net of taxes | $2.7 |  |  | $16.0 |
(1) Amounts as of June 27, 2021 and June 28, 2020 include a $2.4 million loss related to tax on the net unrealized gain on available-for-sale securities. Other Operating Expense The following table summarizes the components of other operating expense:
| Fiscal Years Ended
(in millions of U.S. Dollars) | June 27, 2021 |  | June 28, 2020 |  | June 30, 2019
Factory optimization restructuring | $7.6 |  |  | $8.5 |  |  | $4.1 |
Severance and other restructuring | 3.4 |  |  | 0.6 |  |  | 2.8 |
Total restructuring costs | 11.0 |  |  | 9.1 |  |  | 6.9 |
Project, transformation and transaction costs | 7.3 |  |  | 12.2 |  |  | 16.9 |
Factory optimization start-up costs | 8.0 |  |  | 9.5 |  |  | 1.5 |
Non-restructuring related executive severance | 2.8 |  |  | 2.1 |  |  | 1.3 |
Other operating expense | $29.1 |  |  | $32.9 |  |  | $26.6 |
See Note 18, "Restructuring" for more details on the Company's restructuring costs. Non-Operating Expense (Income), net The following table summarizes the components of non-operating expense (income), net:
| Fiscal Years Ended
(in millions of U.S. Dollars) | June 27, 2021 |  | June 28, 2020 |  | June 30, 2019
(Gain) loss on sale of investments, net | ($0.4) |  |  | ($1.5) |  |  | $0.1 |
(Gain) loss on equity investment | (8.3) |  |  | (14.2) |  |  | 16.2 |
Gain on partial debt extinguishment | — |  |  | (11.0) |  |  | — |
Gain on arbitration proceedings | — |  |  | (7.9) |  |  | — |
Interest income | (10.1) |  |  | (16.3) |  |  | (13.9) |
Interest expense | 45.4 |  |  | 34.9 |  |  | 26.0 |
Foreign currency (gain) loss, net | (1.3) |  |  | (2.0) |  |  | 1.3 |
Loss on Wafer Supply Agreement | 0.8 |  |  | — |  |  | — |
Other, net | 0.2 |  |  | (0.5) |  |  | (0.3) |
Non-operating expense (income), net | $26.3 |  |  | ($18.5) |  |  | $29.4 |
Reclassifications Out of Accumulated Other Comprehensive Income The Company reclassified a net gain of $0.4 million and $1.5 million and a net loss of $0.1 million, on available for sale securities out of accumulated other comprehensive income for the fiscal years ended June 27, 2021, June 28, 2020, and June 30, 2019, respectively. For the fiscal year ended June 28, 2020, an additional net gain of $0.5 million was reclassified to net (loss) income from discontinued operations on the consolidated statements of operations. There was no tax impact on any reclassifications due to a full valuation allowance on U.S. operations. Amounts were reclassified to non-operating expense (income), net on the consolidated statements of operations. Additionally, in fiscal 2019, $5.2 million of currency translation loss related to the former Lighting Products business unit was reclassified out of accumulated other comprehensive income and recognized in the consolidated statements of operations as part of the loss on sale of discontinued operations. In fiscal 2021, $9.5 million of currency translation gain related to the former LED Products segment was reclassified out of accumulated other comprehensive income and recognized in the consolidated statements of operations as part of the loss on sale of discontinued operations. Statements of Cash Flows - non-cash activities
| Fiscal Years Ended
| June 27, 2021 |  | June 28, 2020 |  | June 30, 2019
Lease asset and liability additions (1) | $7.9 |  |  | $28.3 |  |  | $— |
Lease asset and liability modifications, net | 1.7 |  |  | 4.8 |  |  | — |
Transfer of finance lease liability to accounts payable and accrued expenses (2) | 4.2 |  |  | — |  |  | — |
Receivables for property, plant and equipment related insurance proceeds | 1.9 |  |  | — |  |  | — |
Decrease in property, plant and equipment from long-term incentive related receivables | 16.4 |  |  | — |  |  | — |
(1) $11.0 million of the lease asset and liability additions for the year ended June 28, 2020 related to the increase of right-of-use assets and matching lease liabilities as a result of adopting ASC 842. See Note 5, "Leases", for further information. (2) In the first quarter of fiscal 2021, the Company executed the available bargain purchase option for certain finance leases relating to property and equipment, net, in order to purchase the assets.

X
- Definition The entire disclosures of supplemental information, including descriptions and amounts, related to the balance sheet, income statement, and/or cash flow statement. + References No definition available. + Details
Name: | us-gaap_AdditionalFinancialInformationDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

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