Wolfspeed, Inc. (the Company) is an innovator of wide bandgap semiconductors, focused on silicon carbide materials and devices for power applications. The Company’s product families include silicon carbide materials and power devices targeted for various applications such as electric vehicles, fast charging and renewable energy and storage.

Previously, the Company designed, manufactured and sold radio-frequency (RF) devices. As discussed more fully below in Note 2, “Discontinued Operations,” on December 2, 2023, the Company completed the sale of certain assets comprising its RF product line. The Company classified the results and cash flows of the RF product line as discontinued operations in its consolidated statements of operations and consolidated statements of cash flows for fiscal 2024. Unless otherwise noted, discussion within these notes to the consolidated financial statements relates to the Company's continuing operations.

The consolidated financial statements presented herein have been prepared by the Company and have not been audited. In the opinion of management, all normal and recurring adjustments necessary to fairly state the consolidated financial position, results of operations, comprehensive loss, shareholders' equity and cash flows at September 29, 2024, and for all periods presented, have been made. All material intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 30, 2024 has been derived from the audited financial statements as of that date.

These financial statements have been prepared in accordance with accounting principles generally accepted in the United States of America (U.S. GAAP) for interim information and with the instructions to Form 10-Q and Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP for annual financial statements. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2024 (fiscal 2024). The results of operations for the three months ended September 29, 2024 are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 29, 2025 (fiscal 2025).

There were no material changes to our significant accounting policies during the three months ended September 29, 2024 compared to the significant accounting policies described in our fiscal 2024 Form 10-K.


(in millions of U.S. Dollars)	September 29, 2024	June 30, 2024
Billed trade receivables	$142.1	$143.3
Unbilled contract receivables	2.5	3.5
Royalties	1.5	1.3
	146.1	148.1

Allowance for bad debts	(0.7)	(0.7)
Accounts receivable, net	$145.4	$147.4


(in millions of U.S. Dollars)	September 29, 2024	June 30, 2024
Reimbursement receivable on long-term incentive agreement	$33.1	$85.8










Other	65.8	94.0
Other current assets	$98.9	$179.8

The Company expects to receive refundable federal investment tax credits through the United States CHIPS and Science Act of 2022 (the CHIPS Act) in connection with ongoing expansion projects. As of September 29, 2024, the Company has recorded a receivable for and reduced property and equipment, net by $723.5 million as a result of the expected refundable tax credits in connection with the CHIPS Act.


(in millions of U.S. Dollars)	September 29, 2024	June 30, 2024
Accounts payable, trade	$73.5	$53.0
Accrued property and equipment	385.9	366.0
Accrued salaries and wages	100.3	64.2
Accrued expenses	40.7	40.4

Accounts payable and accrued expenses	$600.4	$523.6


	Three months ended
(in millions of U.S. Dollars)	September 29, 2024	September 24, 2023





Restructuring costs and other exit costs	$52.8	$—


Project, transformation and transaction costs	6.0	2.6
Other	1.4	—
Other operating expense	$60.2	$2.6

Accumulated other comprehensive loss, net of taxes, consisted of $4.3 million and $11.6 million of net unrealized losses on available-for-sale securities as of September 29, 2024 and June 30, 2024, respectively. Amounts for both periods include a $2.4 million loss related to tax on unrealized loss on available-for-sale securities.


	Three months ended
(in millions of U.S. Dollars)	September 29, 2024	September 24, 2023
Interest income	(22.2)	(40.6)
Interest expense, net of capitalized interest	64.5	61.7


Other, net	9.4	7.4
Non-operating expense, net	$51.7	$28.5


	Three months ended
(in millions of U.S. Dollars)	September 29, 2024	September 24, 2023
Decrease in property, plant and equipment from investment tax credit receivables	$81.8	$73.5
Decrease in property, plant and equipment from long-term incentive related receivables	—	47.7
Lease asset and liability additions	11.0	1.0
Lease asset and liability modifications, net	0.2	1.8

In December 2023, the Financial Accounting Standards Board (FASB) issued ASU 2023-09, Income Taxes (Topic 740): Improvements to Tax Disclosures, which requires disaggregated information about an entity’s income tax rate reconciliation as well as information regarding cash taxes paid both in the United States and foreign jurisdictions. The amendments should be applied prospectively, with retrospective application permitted. The amendments are effective for annual periods beginning after December 15, 2024 with early adoption permitted. The Company is currently evaluating the impacts of adopting this guidance on its financial statement disclosures.

In December 2023, the FASB issued ASU 2023-07, Segment Reporting (Topic 280): Improvements to Segment Reporting Disclosures, to update reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses and information used to assess segment performance. In addition, this amendment will require annual disclosures to be provided on an interim basis. These disclosures are also required for entities with a single reportable segment. The amendments require retrospective application to all periods presented. The amendments are effective for fiscal years beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024, with early adoption permitted. The Company is currently evaluating the impacts of adopting this guidance on its financial statement disclosures.

In November 2024, the FASB issued ASU 2024-03, Income Statement (Topic 220): Disaggregation of Income Statement Expenses, to require additional disclosures of certain amounts included in the expense captions presented on the Statement of Operations as well as disclosures about selling expenses. The ASU is effective on a prospective basis, with the option for retrospective application, for annual periods beginning after December 15, 2026 and interim reporting periods beginning after December 15, 2027, and early adoption is permitted. The Company is currently evaluating the impacts of adopting this guidance on its financial statement disclosures.