Financial Statement Details

3 Months Ended

Sep. 25, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Accounts Receivable, net

Accounts receivable, net consisted of the following:


(in millions of U.S. Dollars)	September 25, 2022	June 26, 2022
Billed trade receivables	$156.3	$148.0
Unbilled contract receivables	2.3	2.7
Royalties	0.7	0.7
	159.3	151.4

Allowance for bad debts	(0.7)	(1.2)
Accounts receivable, net	$158.6	$150.2

Changes in the Company’s allowance for bad debts were as follows:


(in millions of U.S. Dollars)			September 25, 2022
Balance at beginning of period			$1.2
Current period provision change			(0.5)
Write-offs, net of recoveries			—
Balance at end of period			$0.7

Inventories

Inventories consisted of the following:


(in millions of U.S. Dollars)	September 25, 2022	June 26, 2022
Raw material	$73.1	$60.2
Work-in-progress	138.2	135.9
Finished goods	30.5	30.9
Inventories	$241.8	$227.0

Other Current Assets

Other current assets consisted of the following:


(in millions of U.S. Dollars)	September 25, 2022	June 26, 2022
Reimbursement receivable on long-term incentive agreement	$107.9	$132.5
Accrued interest receivable	4.5	5.9
Receivable on Wafer Supply Agreement	1.7	2.7
Inventory related to Wafer Supply Agreement	4.5	3.9
Deferred product costs	1.2	2.5
Other	4.0	3.9
Other current assets	$123.8	$151.4

Accounts Payable and Accrued Expenses

Accounts payable and accrued expenses consisted of the following:


(in millions of U.S. Dollars)	September 25, 2022	June 26, 2022
Accounts payable, trade	$55.9	$57.8
Accrued salaries and wages	63.7	80.6
Accrued property and equipment	146.3	132.1
Accrued expenses	34.9	30.7
Other	6.3	6.5
Accounts payable and accrued expenses	$307.1	$307.7

Other Operating Expense

Other operating expense consisted of the following:


	Three months ended
(in millions of U.S. Dollars)		September 25, 2022	September 26, 2021



Restructuring costs		—	2.6
Project, transformation and transaction costs		3.0	1.6
Factory start-up costs		38.4	8.6

Non-restructuring related executive severance		1.0	—

Other operating expense		$42.4	$12.8

Accumulated Other Comprehensive Loss, net of taxes

Accumulated other comprehensive loss, net of taxes, consisted of $32.3 million and $25.3 million of net unrealized losses on available-for-sale securities as of September 25, 2022 and June 26, 2022, respectively. Amounts for both periods include a $2.4 million loss related to tax on unrealized loss on available-for-sale securities.

Reclassifications Out of Accumulated Other Comprehensive Loss

Reclassifications out of accumulated other comprehensive loss was a less than $0.1 million gain for the three months ended September 25, 2022 and a $0.2 million gain for the three months ended September 26, 2021. Amounts were reclassified to non-operating (income) expense, net on the consolidated statements of operations.

Non-Operating (Income) Expense, net

The following table summarizes the components of non-operating (income) expense, net:


	Three months ended
(in millions of U.S. Dollars)		September 25, 2022	September 26, 2021

Gain on sale of investments, net		—	(0.2)
Gain on arbitration proceedings (1)		(49.4)	—


Interest income		(4.3)	(2.6)
Interest expense, net of capitalized interest		4.8	6.7


Other, net		(0.8)	0.2
Non-operating (income) expense, net		($49.7)	$4.1

(1) In the first quarter of fiscal 2023, the Company received an arbitration award in relation to a former customer failing to fulfill contractual obligations to purchase a certain amount of product over a period of time. The arbitration award, net of legal fees incurred, was recognized as non-operating income.

Statements of Cash Flows - non-cash activities


	Three months ended
(in millions of U.S. Dollars)	September 25, 2022	September 26, 2021
Lease asset and liability additions	$0.4	$3.5
Lease asset and liability modifications, net	—	2.6



Decrease in property, plant and equipment from long-term incentive related receivables	22.1	23.2

Accrued property and equipment as of September 25, 2022 and September 26, 2021 was $146.3 million and $128.9 million, respectively.