XML 21 R11.htm IDEA: XBRL DOCUMENT
v3.22.2.2

Leases | 3 Months Ended
--- | ---
Sep. 25, 2022
Leases [Abstract] |
Leases | Leases The Company primarily leases manufacturing and office spaces. The Company also has a number of bulk gas leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. The Company's finance lease obligations primarily relate to contract manufacturing space in Malaysia and a 49-year ground lease on the Company's Silicon Carbide device fabrication facility in New York. Balance Sheet Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars):
Operating Leases: | September 25, 2022 |  | June 26, 2022
Right-of-use asset (1) | $47.1 |  |  | $48.5 |
Current lease liability (2) | 4.5 |  |  | 4.6 |
Non-current lease liability (3) | 43.0 |  |  | 43.6 |
Total operating lease liabilities | $47.5 |  |  | $48.2 |
Finance Leases: |  |  |
Finance lease assets (4) | $10.1 |  |  | $10.3 |
Current portion of finance lease liabilities | 0.4 |  |  | 0.5 |
Finance lease liabilities, less current portion | 9.5 |  |  | 9.6 |
Total finance lease liabilities | $9.9 |  |  | $10.1 |
(1) Within other assets on the consolidated balance sheets. (2) Within other current liabilities on the consolidated balance sheets. (3) Within other long-term liabilities on the consolidated balance sheets. (4) Within property and equipment, net on the consolidated balance sheets. Statement of Operations Operating lease expense was $2.2 million for the three months ended September 25, 2022 and $1.5 million for the three months ended September 26, 2021. Short-term lease expense, variable lease expense and sublease income were immaterial for the three months ended September 25, 2022 and September 26, 2021. Finance lease amortization was $0.2 million and interest expense was $0.1 million for the three months ended September 25, 2022. Finance lease amortization was $0.4 million and interest expense was $0.1 million for the three months ended September 26, 2021. Cash Flows Cash flow information consisted of the following (1):
| Three months ended
(in millions of U.S. Dollars) | September 25, 2022 |  | September 26, 2021
Cash used in operating activities: |  |  |
Cash paid for operating leases | $1.6 |  |  | $1.6 |
Cash paid for interest portion of financing leases | 0.1 |  |  | 0.1 |
Cash used in financing activities: |  |  |
Cash paid for principal portion of finance leases | 0.2 |  |  | 0.1 |
(1) See Note 5, "Financial Statement Details," for non-cash activities related to leases. Lease Liability Maturities Maturities of operating and finance lease liabilities as of September 25, 2022 were as follows (in millions of U.S. Dollars):
Fiscal Year Ending | Operating Leases | Finance Leases | Total
June 25, 2023 (remainder of fiscal 2023) | $4.1 |  | $0.5 |  | $4.6 |
June 30, 2024 | 7.4 |  | 0.7 |  | 8.1 |
June 29, 2025 | 8.0 |  | 0.7 |  | 8.7 |
June 28, 2026 | 7.9 |  | 0.7 |  | 8.6 |
June 27, 2027 | 6.8 |  | 0.4 |  | 7.2 |
Thereafter | 53.6 |  | 14.2 |  | 67.8 |
Total lease payments | 87.8 |  | 17.2 |  | 105.0 |
Future tenant improvement allowances | (18.9) |  | — |  | (18.9) |
Imputed lease interest | (21.4) |  | (7.3) |  | (28.7) |
Total lease liabilities | $47.5 |  | $9.9 |  | $57.4 |
Supplemental Disclosures
| Operating Leases | Finance Leases
Weighted average remaining lease term (in months) (1) | 132 | 559
Weighted average discount rate (2) | 4.24 | % | 2.68 | %
(1) Weighted average remaining lease term of finance leases excluding the 49-year ground lease is 49 months. (2) Weighted average discount rate of finance leases excluding the 49-year ground lease is 3.30%. Lease Income As mentioned in Note 2, "Discontinued Operations", on March 1, 2021 and in connection with the sale of its LED Business, the Company entered into the LED RELA pursuant to which the Company leases to CreeLED approximately 58,000 square feet of the Company’s property and certain facilities in Durham, North Carolina for a total of $3.6 million per year. The lease term is 24 months and expires on February 28, 2023. Subject to certain provisions in the LED RELA, CreeLED may terminate its rights or a portion of its rights under the agreement at any time with sixty days written notice. A notice of thirty days is permitted under certain circumstances as defined in the agreement. The agreement does not contain any renewal provisions. The Company recognized lease income of $0.9 million and $0.9 million for the three months ended September 25, 2022 and September 26, 2021, respectively. The Company did not recognize any variable lease income for the three months ended September 25, 2022 and September 26, 2021. Future minimum rental income relating to the LED RELA is $1.5 million for the remainder of fiscal 2023.
Leases | Leases The Company primarily leases manufacturing and office spaces. The Company also has a number of bulk gas leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. The Company's finance lease obligations primarily relate to contract manufacturing space in Malaysia and a 49-year ground lease on the Company's Silicon Carbide device fabrication facility in New York. Balance Sheet Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars):
Operating Leases: | September 25, 2022 |  | June 26, 2022
Right-of-use asset (1) | $47.1 |  |  | $48.5 |
Current lease liability (2) | 4.5 |  |  | 4.6 |
Non-current lease liability (3) | 43.0 |  |  | 43.6 |
Total operating lease liabilities | $47.5 |  |  | $48.2 |
Finance Leases: |  |  |
Finance lease assets (4) | $10.1 |  |  | $10.3 |
Current portion of finance lease liabilities | 0.4 |  |  | 0.5 |
Finance lease liabilities, less current portion | 9.5 |  |  | 9.6 |
Total finance lease liabilities | $9.9 |  |  | $10.1 |
(1) Within other assets on the consolidated balance sheets. (2) Within other current liabilities on the consolidated balance sheets. (3) Within other long-term liabilities on the consolidated balance sheets. (4) Within property and equipment, net on the consolidated balance sheets. Statement of Operations Operating lease expense was $2.2 million for the three months ended September 25, 2022 and $1.5 million for the three months ended September 26, 2021. Short-term lease expense, variable lease expense and sublease income were immaterial for the three months ended September 25, 2022 and September 26, 2021. Finance lease amortization was $0.2 million and interest expense was $0.1 million for the three months ended September 25, 2022. Finance lease amortization was $0.4 million and interest expense was $0.1 million for the three months ended September 26, 2021. Cash Flows Cash flow information consisted of the following (1):
| Three months ended
(in millions of U.S. Dollars) | September 25, 2022 |  | September 26, 2021
Cash used in operating activities: |  |  |
Cash paid for operating leases | $1.6 |  |  | $1.6 |
Cash paid for interest portion of financing leases | 0.1 |  |  | 0.1 |
Cash used in financing activities: |  |  |
Cash paid for principal portion of finance leases | 0.2 |  |  | 0.1 |
(1) See Note 5, "Financial Statement Details," for non-cash activities related to leases. Lease Liability Maturities Maturities of operating and finance lease liabilities as of September 25, 2022 were as follows (in millions of U.S. Dollars):
Fiscal Year Ending | Operating Leases | Finance Leases | Total
June 25, 2023 (remainder of fiscal 2023) | $4.1 |  | $0.5 |  | $4.6 |
June 30, 2024 | 7.4 |  | 0.7 |  | 8.1 |
June 29, 2025 | 8.0 |  | 0.7 |  | 8.7 |
June 28, 2026 | 7.9 |  | 0.7 |  | 8.6 |
June 27, 2027 | 6.8 |  | 0.4 |  | 7.2 |
Thereafter | 53.6 |  | 14.2 |  | 67.8 |
Total lease payments | 87.8 |  | 17.2 |  | 105.0 |
Future tenant improvement allowances | (18.9) |  | — |  | (18.9) |
Imputed lease interest | (21.4) |  | (7.3) |  | (28.7) |
Total lease liabilities | $47.5 |  | $9.9 |  | $57.4 |
Supplemental Disclosures
| Operating Leases | Finance Leases
Weighted average remaining lease term (in months) (1) | 132 | 559
Weighted average discount rate (2) | 4.24 | % | 2.68 | %
(1) Weighted average remaining lease term of finance leases excluding the 49-year ground lease is 49 months. (2) Weighted average discount rate of finance leases excluding the 49-year ground lease is 3.30%. Lease Income As mentioned in Note 2, "Discontinued Operations", on March 1, 2021 and in connection with the sale of its LED Business, the Company entered into the LED RELA pursuant to which the Company leases to CreeLED approximately 58,000 square feet of the Company’s property and certain facilities in Durham, North Carolina for a total of $3.6 million per year. The lease term is 24 months and expires on February 28, 2023. Subject to certain provisions in the LED RELA, CreeLED may terminate its rights or a portion of its rights under the agreement at any time with sixty days written notice. A notice of thirty days is permitted under certain circumstances as defined in the agreement. The agreement does not contain any renewal provisions. The Company recognized lease income of $0.9 million and $0.9 million for the three months ended September 25, 2022 and September 26, 2021, respectively. The Company did not recognize any variable lease income for the three months ended September 25, 2022 and September 26, 2021. Future minimum rental income relating to the LED RELA is $1.5 million for the remainder of fiscal 2023.
Leases | Leases The Company primarily leases manufacturing and office spaces. The Company also has a number of bulk gas leases. Lease agreements frequently include renewal provisions and require the Company to pay real estate taxes, insurance and maintenance costs. Variable costs include lease payments that were volume or usage-driven in accordance with the use of the underlying asset, as well as non-lease components incurred with respect to actual terms rather than contractually fixed amounts. The Company's finance lease obligations primarily relate to contract manufacturing space in Malaysia and a 49-year ground lease on the Company's Silicon Carbide device fabrication facility in New York. Balance Sheet Lease assets and liabilities and the corresponding balance sheet classifications are as follows (in millions of U.S. Dollars):
Operating Leases: | September 25, 2022 |  | June 26, 2022
Right-of-use asset (1) | $47.1 |  |  | $48.5 |
Current lease liability (2) | 4.5 |  |  | 4.6 |
Non-current lease liability (3) | 43.0 |  |  | 43.6 |
Total operating lease liabilities | $47.5 |  |  | $48.2 |
Finance Leases: |  |  |
Finance lease assets (4) | $10.1 |  |  | $10.3 |
Current portion of finance lease liabilities | 0.4 |  |  | 0.5 |
Finance lease liabilities, less current portion | 9.5 |  |  | 9.6 |
Total finance lease liabilities | $9.9 |  |  | $10.1 |
(1) Within other assets on the consolidated balance sheets. (2) Within other current liabilities on the consolidated balance sheets. (3) Within other long-term liabilities on the consolidated balance sheets. (4) Within property and equipment, net on the consolidated balance sheets. Statement of Operations Operating lease expense was $2.2 million for the three months ended September 25, 2022 and $1.5 million for the three months ended September 26, 2021. Short-term lease expense, variable lease expense and sublease income were immaterial for the three months ended September 25, 2022 and September 26, 2021. Finance lease amortization was $0.2 million and interest expense was $0.1 million for the three months ended September 25, 2022. Finance lease amortization was $0.4 million and interest expense was $0.1 million for the three months ended September 26, 2021. Cash Flows Cash flow information consisted of the following (1):
| Three months ended
(in millions of U.S. Dollars) | September 25, 2022 |  | September 26, 2021
Cash used in operating activities: |  |  |
Cash paid for operating leases | $1.6 |  |  | $1.6 |
Cash paid for interest portion of financing leases | 0.1 |  |  | 0.1 |
Cash used in financing activities: |  |  |
Cash paid for principal portion of finance leases | 0.2 |  |  | 0.1 |
(1) See Note 5, "Financial Statement Details," for non-cash activities related to leases. Lease Liability Maturities Maturities of operating and finance lease liabilities as of September 25, 2022 were as follows (in millions of U.S. Dollars):
Fiscal Year Ending | Operating Leases | Finance Leases | Total
June 25, 2023 (remainder of fiscal 2023) | $4.1 |  | $0.5 |  | $4.6 |
June 30, 2024 | 7.4 |  | 0.7 |  | 8.1 |
June 29, 2025 | 8.0 |  | 0.7 |  | 8.7 |
June 28, 2026 | 7.9 |  | 0.7 |  | 8.6 |
June 27, 2027 | 6.8 |  | 0.4 |  | 7.2 |
Thereafter | 53.6 |  | 14.2 |  | 67.8 |
Total lease payments | 87.8 |  | 17.2 |  | 105.0 |
Future tenant improvement allowances | (18.9) |  | — |  | (18.9) |
Imputed lease interest | (21.4) |  | (7.3) |  | (28.7) |
Total lease liabilities | $47.5 |  | $9.9 |  | $57.4 |
Supplemental Disclosures
| Operating Leases | Finance Leases
Weighted average remaining lease term (in months) (1) | 132 | 559
Weighted average discount rate (2) | 4.24 | % | 2.68 | %
(1) Weighted average remaining lease term of finance leases excluding the 49-year ground lease is 49 months. (2) Weighted average discount rate of finance leases excluding the 49-year ground lease is 3.30%. Lease Income As mentioned in Note 2, "Discontinued Operations", on March 1, 2021 and in connection with the sale of its LED Business, the Company entered into the LED RELA pursuant to which the Company leases to CreeLED approximately 58,000 square feet of the Company’s property and certain facilities in Durham, North Carolina for a total of $3.6 million per year. The lease term is 24 months and expires on February 28, 2023. Subject to certain provisions in the LED RELA, CreeLED may terminate its rights or a portion of its rights under the agreement at any time with sixty days written notice. A notice of thirty days is permitted under certain circumstances as defined in the agreement. The agreement does not contain any renewal provisions. The Company recognized lease income of $0.9 million and $0.9 million for the three months ended September 25, 2022 and September 26, 2021, respectively. The Company did not recognize any variable lease income for the three months ended September 25, 2022 and September 26, 2021. Future minimum rental income relating to the LED RELA is $1.5 million for the remainder of fiscal 2023.

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

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 20 -URI https://asc.fasb.org/subtopic&trid=77888251 + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for lessor's operating leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 842 -SubTopic 30 -URI https://asc.fasb.org/subtopic&trid=77888252 + Details
Name: | us-gaap_OperatingLeasesOfLessorDisclosureTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration