XML 24 R11.htm IDEA: XBRL DOCUMENT v3.25.1
Leases
 9 Months Ended
Mar. 30, 2025
Leases [Abstract]  
Leases Leases
The Company primarily leases manufacturing and office spaces and bulk gas equipment. 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 are as follows (in millions of U.S. Dollars):
Operating Leases:March 30, 2025June 30, 2024
Right-of-use asset (1)
$125.4 $99.2 
Current lease liability (2)
9.4 6.9 
Non-current lease liability (3)
141.8 114.0 
Total operating lease liabilities$151.2 $120.9 
Finance Leases:
Finance lease assets (4)
$8.5 $9.1 
Current portion of finance lease liabilities0.5 0.5 
Finance lease liabilities, less current portion8.5 8.9 
Total finance lease liabilities$9.0 $9.4 
(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
Three months ended
Nine months ended
(in millions of U.S. Dollars)March 30, 2025March 31, 2024March 30, 2025March 31, 2024
Operating lease expense
$4.3$3.3$12.4$10.5
Finance lease amortization
0.2 0.2 0.6 0.6 
Interest expense for finance leases was immaterial for all periods presented.
Cash Flows
Cash flow information consisted of the following (1):
Nine months ended
(in millions of U.S. Dollars)March 30, 2025March 31, 2024
Cash (used in) provided by operating activities from continuing operations:
Cash paid for operating leases($4.0)($5.6)
Cash received for tenant allowance on operating lease— 0.4 
Cash paid for interest portion of financing leases(0.1)(0.2)
Cash used in financing activities:
Cash paid for principal portion of finance leases(0.1)(0.4)
(1) See Note 1, "Statements of Cash Flows - non-cash activities," for non-cash activities related to leases.
Lease Liability Maturities
Maturities of operating and finance lease liabilities as of March 30, 2025 were as follows (in millions of U.S. Dollars):
Fiscal Year EndingOperating LeasesFinance LeasesTotal
June 29, 2025 (remainder of fiscal 2025)$4.6 $0.2 $4.8 
June 28, 202617.0 0.8 17.8 
June 27, 202716.4 0.5 16.9 
June 25, 202816.2 0.2 16.4 
June 24, 202916.3 0.2 16.5 
Thereafter134.3 13.7 148.0 
Total lease payments204.8 15.6 220.4 
Future tenant improvement allowances(1.5)— (1.5)
Imputed lease interest(52.1)(6.6)(58.7)
Total lease liabilities$151.2 $9.0 $160.2 
Supplemental Disclosures
Operating LeasesFinance Leases
Weighted average remaining lease term (in months) (1)
154480
Weighted average discount rate (2)
4.69 %2.66 %
(1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 20 months.
(2) Weighted average discount rate of finance leases without the 49-year ground lease is 3.86%.
As of March 30, 2025, the Company has entered into an agreement containing operating leases for bulk gas equipment. This arrangement contains approximately $35 million of additional ROU liability obligations that have not yet commenced. The Company expects these operating leases will commence in future periods with initial lease terms of 15 years.
Lease Income
On December 1, 2023 and in connection with the RF Business Divestiture discussed in Note 2, “Discontinued Operations,” the Company entered into the RF RELA pursuant to which the Company leases to MACOM approximately 25,659 square feet of the RTP Facility for a total of $0.7 million per year. The RF RELA is expected to be terminated by the parties in connection with the sale of the RTP Facility discussed under Note 1, "Basis of Presentation and New Accounting Standards - Financial Statement Details - Assets Held for Sale."
Lease Impairment
For the three and nine months ended March 30, 2025, the Company recorded $4.8 million of non-cash impairment charges for the abandonment of right-of-use (ROU) assets as a result of the ongoing factory consolidation and optimization initiatives. The impairment of the ROU assets is included in "Loss on disposal or impairment of other long-lived assets" within the accompanying consolidated statement of operations. Refer to Note 13 - "Restructuring" to the consolidated financial statements included herein.
Leases Leases
The Company primarily leases manufacturing and office spaces and bulk gas equipment. 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 are as follows (in millions of U.S. Dollars):
Operating Leases:March 30, 2025June 30, 2024
Right-of-use asset (1)
$125.4 $99.2 
Current lease liability (2)
9.4 6.9 
Non-current lease liability (3)
141.8 114.0 
Total operating lease liabilities$151.2 $120.9 
Finance Leases:
Finance lease assets (4)
$8.5 $9.1 
Current portion of finance lease liabilities0.5 0.5 
Finance lease liabilities, less current portion8.5 8.9 
Total finance lease liabilities$9.0 $9.4 
(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
Three months ended
Nine months ended
(in millions of U.S. Dollars)March 30, 2025March 31, 2024March 30, 2025March 31, 2024
Operating lease expense
$4.3$3.3$12.4$10.5
Finance lease amortization
0.2 0.2 0.6 0.6 
Interest expense for finance leases was immaterial for all periods presented.
Cash Flows
Cash flow information consisted of the following (1):
Nine months ended
(in millions of U.S. Dollars)March 30, 2025March 31, 2024
Cash (used in) provided by operating activities from continuing operations:
Cash paid for operating leases($4.0)($5.6)
Cash received for tenant allowance on operating lease— 0.4 
Cash paid for interest portion of financing leases(0.1)(0.2)
Cash used in financing activities:
Cash paid for principal portion of finance leases(0.1)(0.4)
(1) See Note 1, "Statements of Cash Flows - non-cash activities," for non-cash activities related to leases.
Lease Liability Maturities
Maturities of operating and finance lease liabilities as of March 30, 2025 were as follows (in millions of U.S. Dollars):
Fiscal Year EndingOperating LeasesFinance LeasesTotal
June 29, 2025 (remainder of fiscal 2025)$4.6 $0.2 $4.8 
June 28, 202617.0 0.8 17.8 
June 27, 202716.4 0.5 16.9 
June 25, 202816.2 0.2 16.4 
June 24, 202916.3 0.2 16.5 
Thereafter134.3 13.7 148.0 
Total lease payments204.8 15.6 220.4 
Future tenant improvement allowances(1.5)— (1.5)
Imputed lease interest(52.1)(6.6)(58.7)
Total lease liabilities$151.2 $9.0 $160.2 
Supplemental Disclosures
Operating LeasesFinance Leases
Weighted average remaining lease term (in months) (1)
154480
Weighted average discount rate (2)
4.69 %2.66 %
(1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 20 months.
(2) Weighted average discount rate of finance leases without the 49-year ground lease is 3.86%.
As of March 30, 2025, the Company has entered into an agreement containing operating leases for bulk gas equipment. This arrangement contains approximately $35 million of additional ROU liability obligations that have not yet commenced. The Company expects these operating leases will commence in future periods with initial lease terms of 15 years.
Lease Income
On December 1, 2023 and in connection with the RF Business Divestiture discussed in Note 2, “Discontinued Operations,” the Company entered into the RF RELA pursuant to which the Company leases to MACOM approximately 25,659 square feet of the RTP Facility for a total of $0.7 million per year. The RF RELA is expected to be terminated by the parties in connection with the sale of the RTP Facility discussed under Note 1, "Basis of Presentation and New Accounting Standards - Financial Statement Details - Assets Held for Sale."
Lease Impairment
For the three and nine months ended March 30, 2025, the Company recorded $4.8 million of non-cash impairment charges for the abandonment of right-of-use (ROU) assets as a result of the ongoing factory consolidation and optimization initiatives. The impairment of the ROU assets is included in "Loss on disposal or impairment of other long-lived assets" within the accompanying consolidated statement of operations. Refer to Note 13 - "Restructuring" to the consolidated financial statements included herein.
Leases Leases
The Company primarily leases manufacturing and office spaces and bulk gas equipment. 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 are as follows (in millions of U.S. Dollars):
Operating Leases:March 30, 2025June 30, 2024
Right-of-use asset (1)
$125.4 $99.2 
Current lease liability (2)
9.4 6.9 
Non-current lease liability (3)
141.8 114.0 
Total operating lease liabilities$151.2 $120.9 
Finance Leases:
Finance lease assets (4)
$8.5 $9.1 
Current portion of finance lease liabilities0.5 0.5 
Finance lease liabilities, less current portion8.5 8.9 
Total finance lease liabilities$9.0 $9.4 
(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
Three months ended
Nine months ended
(in millions of U.S. Dollars)March 30, 2025March 31, 2024March 30, 2025March 31, 2024
Operating lease expense
$4.3$3.3$12.4$10.5
Finance lease amortization
0.2 0.2 0.6 0.6 
Interest expense for finance leases was immaterial for all periods presented.
Cash Flows
Cash flow information consisted of the following (1):
Nine months ended
(in millions of U.S. Dollars)March 30, 2025March 31, 2024
Cash (used in) provided by operating activities from continuing operations:
Cash paid for operating leases($4.0)($5.6)
Cash received for tenant allowance on operating lease— 0.4 
Cash paid for interest portion of financing leases(0.1)(0.2)
Cash used in financing activities:
Cash paid for principal portion of finance leases(0.1)(0.4)
(1) See Note 1, "Statements of Cash Flows - non-cash activities," for non-cash activities related to leases.
Lease Liability Maturities
Maturities of operating and finance lease liabilities as of March 30, 2025 were as follows (in millions of U.S. Dollars):
Fiscal Year EndingOperating LeasesFinance LeasesTotal
June 29, 2025 (remainder of fiscal 2025)$4.6 $0.2 $4.8 
June 28, 202617.0 0.8 17.8 
June 27, 202716.4 0.5 16.9 
June 25, 202816.2 0.2 16.4 
June 24, 202916.3 0.2 16.5 
Thereafter134.3 13.7 148.0 
Total lease payments204.8 15.6 220.4 
Future tenant improvement allowances(1.5)— (1.5)
Imputed lease interest(52.1)(6.6)(58.7)
Total lease liabilities$151.2 $9.0 $160.2 
Supplemental Disclosures
Operating LeasesFinance Leases
Weighted average remaining lease term (in months) (1)
154480
Weighted average discount rate (2)
4.69 %2.66 %
(1) Weighted average remaining lease term of finance leases without the 49-year ground lease is 20 months.
(2) Weighted average discount rate of finance leases without the 49-year ground lease is 3.86%.
As of March 30, 2025, the Company has entered into an agreement containing operating leases for bulk gas equipment. This arrangement contains approximately $35 million of additional ROU liability obligations that have not yet commenced. The Company expects these operating leases will commence in future periods with initial lease terms of 15 years.
Lease Income
On December 1, 2023 and in connection with the RF Business Divestiture discussed in Note 2, “Discontinued Operations,” the Company entered into the RF RELA pursuant to which the Company leases to MACOM approximately 25,659 square feet of the RTP Facility for a total of $0.7 million per year. The RF RELA is expected to be terminated by the parties in connection with the sale of the RTP Facility discussed under Note 1, "Basis of Presentation and New Accounting Standards - Financial Statement Details - Assets Held for Sale."
Lease Impairment
For the three and nine months ended March 30, 2025, the Company recorded $4.8 million of non-cash impairment charges for the abandonment of right-of-use (ROU) assets as a result of the ongoing factory consolidation and optimization initiatives. The impairment of the ROU assets is included in "Loss on disposal or impairment of other long-lived assets" within the accompanying consolidated statement of operations. Refer to Note 13 - "Restructuring" to the consolidated financial statements included herein