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Financial Statement Details
 9 Months Ended
Mar. 28, 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)March 28, 2021June 28, 2020
Billed trade receivables$82.9 $71.5 
Unbilled contract receivables1.3 1.2 
Royalties0.6 0.4 
84.8 73.1 
Allowance for bad debts(0.7)(0.7)
Accounts receivable, net$84.1 $72.4 
Changes in the Company’s allowance for bad debts were as follows:
(in millions of U.S. Dollars)March 28, 2021
Balance at beginning of period$0.7 
Current period provision change— 
Write-offs, net of recoveries— 
Balance at end of period$0.7 
Inventories
Inventories consisted of the following:
(in millions of U.S. Dollars)March 28, 2021June 28, 2020
Raw material$42.4 $36.9 
Work-in-progress90.2 73.9 
Finished goods14.9 11.1 
Inventories$147.5 $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.
March 28, 2021June 28, 2020
Wolfspeed$138.8 $97.3 
Wafer Supply Agreement inventory (1)
— 19.0 
Unallocated inventories8.7 5.6 
Consolidated inventories$147.5 $121.9 
(1) Inventory related to the Wafer Supply Agreement as of March 28, 2021 is recorded within other current assets in the consolidated balance sheets.
Accounts Payable and Accrued Expenses
Accounts payable and accrued expenses consisted of the following:
(in millions of U.S. Dollars)March 28, 2021June 28, 2020
Accounts payable, trade$75.7 $88.1 
Accrued salaries and wages70.2 42.3 
Accrued expenses172.4 55.3 
Other1.2 4.1 
Accounts payable and accrued expenses$319.5 $189.8 
Other Operating Expense
Other operating expense consisted of the following:
Three months endedNine months ended
(in millions of U.S. Dollars)March 28, 2021March 29, 2020March 28, 2021March 29, 2020
Factory optimization restructuring$3.8 $1.1 $6.7 $3.5 
Severance and other restructuring0.6 — 3.4 0.8 
Total restructuring costs4.4 1.1 10.1 4.3 
Project, transformation and transaction costs2.4 1.4 3.7 10.8 
Factory optimization start-up costs1.8 2.1 6.0 5.0 
Non-restructuring related executive severance2.8 0.6 2.8 2.1 
Other operating expense$11.4 $5.2 $22.6 $22.2 
Accumulated Other Comprehensive Income, net of taxes
Accumulated other comprehensive income, net of taxes, consisted of the following:
(in millions of U.S. Dollars)March 28, 2021June 28, 2020
Currency translation gain$— $9.5 
Net unrealized gain on available-for-sale securities (1)
3.5 6.5 
Accumulated other comprehensive income, net of taxes$3.5 $16.0 
(1) Amounts as of March 28, 2021 and June 28, 2020 include a $2.4 million loss related to tax on unrealized gain (loss) on available-for-sale securities.
Reclassifications Out of Accumulated Other Comprehensive Income
Reclassifications out of accumulated other comprehensive income were $0.1 million and $0.3 million for the three and nine months ended March 28, 2021 and $0.9 million and $1.0 million for the three and nine months ended March 29, 2020. Amounts were reclassified to non-operating expense, net on the consolidated statements of operations.
Additionally, for the three and nine months ended March 28, 2021, $9.5 million of currency translation gain was reclassified to loss on sale of discontinued operations within net loss on discontinued operations on the consolidated statements of operations.
Non-Operating Expense, net
The following table summarizes the components of non-operating expense, net:
Three months endedNine months ended
(in millions of U.S. Dollars)March 28, 2021March 29, 2020March 28, 2021March 29, 2020
Foreign currency (gain) loss, net($0.1)$0.3 ($2.5)($0.9)
Gain on sale of investments, net(0.1)(0.9)(0.3)(1.0)
Gain on arbitration proceeding— (8.0)— (8.0)
(Gain) loss on equity investment, net(0.9)19.1 (7.9)9.2 
Interest income(1.9)(3.2)(6.8)(13.4)
Interest expense, net of capitalized interest11.2 7.5 36.2 22.6 
Loss on Wafer Supply Agreement0.1 — 0.1 — 
Other, net(0.2)(0.1)0.1 (0.4)
Non-operating expense, net$8.1 $14.7 $18.9 $8.1 
The change in (gain) loss on equity investment, net is due to fluctuations in the Lextar Electronics Corporation (Lextar) stock price, and following January 6, 2021, ENNOSTAR Inc. (ENNOSTAR) stock price. The gain on arbitration proceeding is due to an award from an arbitration proceeding related to a claim by the Company against a contract manufacturer.
Statements of Cash Flows - non-cash activities
Nine months ended
March 28, 2021March 29, 2020
Lease asset and liability additions (1)
$1.7 $14.6 
Lease asset and liability modifications, net0.3 4.7 
Transfer of finance lease liability to accounts payable and accrued expenses (2)
4.2 — 
(1) $11.0 million of the lease asset and liability additions for the nine months ended March 29, 2020 relates to the increase of right-of-use assets and matching lease liabilities as a result of adopting ASC 842. See Note 4, "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.
Accrued property and equipment as of March 28, 2021 and March 29, 2020 was $165.6 million and $6.8 million, respectively.