v3.25.4

Basis of Presentation and New Accounting Standards | 6 Months Ended
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Dec. 28, 2025
Accounting Policies [Abstract] |
Basis of Presentation and New Accounting Standards | Basis of Presentation and New Accounting Standards Overview 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 in the Automotive domains including electric vehicles and fast charging, as well as existing and emerging applications in the Industrial & Energy domain such as AI and datacenters, grid modernization and renewable energy and storage. As further discussed below, upon the Company’s emergence from the Chapter 11 Cases (as defined below) on the first day of the second quarter of fiscal 2026 (the "Effective Date"), the Company adopted fresh start accounting, which resulted in a new basis of accounting, and the Company becoming a new entity for financial reporting purposes. References to “Successor” relate to the financial position and results of operations of the Company after the Effective Date. References to “Predecessor” refer to the financial position and results of operations of the Company on or before the Effective Date. Due to the Company's emergence on the Effective Date, the Predecessor period of September 29, 2025 reflects only the effects of emerging from bankruptcy and the application of fresh start accounting while the Successor period from September 30, 2025 to December 28, 2025 presents all other operating activities for the second fiscal quarter of fiscal 2026. Due to the lack of comparability with historical consolidated financial statements, the Company’s unaudited consolidated financial statements and related footnotes are presented with a “black line” that separates the Predecessor and Successor Periods to emphasize the lack of comparability between amounts presented after the Effective Date and amounts presented for all prior periods. The Successor’s financial results for future periods following the adoption of fresh start accounting will be different from historical trends and the differences may be material. Refer to Note 3 “Fresh Start Accounting” for additional information. All estimates, assumptions, valuations and financial projections related to fresh start accounting, including the fair value adjustments, the enterprise value and equity value projections, are inherently subject to significant uncertainties and the resolution of contingencies beyond the Company’s control. Accordingly, no assurances can be provided that the estimates, assumptions, valuations or financial projections will be realized, and actual results could vary materially. Basis of Presentation 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, stockholders' equity and cash flows at December 28, 2025, and for all periods presented, have been made. All intercompany accounts and transactions have been eliminated. The consolidated balance sheet at June 29, 2025 has been derived from the audited financial statements as of that date. Certain prior period amounts in the accompanying consolidated financial statements and notes have been reclassified to conform to the current year's presentation, which include the moving of amounts related to "Long-term receivables" and "Deferred tax assets" to "Other assets," "Deferred tax liabilities" to "Other long-term liabilities," impairments previously presented in "Loss/gain on disposal or impairment," and "Amortization of acquired intangibles" to "Restructuring and other expenses," and to separate "Interest expense, net of capitalized interest" out of "Non-operating income, net." These reclassifications had no effect on previously reported net loss or stockholders’ equity. 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 29, 2025 (the "2025 Form 10-K"). The results of operations for the period from June 30, 2025 to September 29, 2025 and from September 30, 2025 to December 28, 2025, are not necessarily indicative of the operating results that may be attained for the entire fiscal year ending June 28, 2026 ("fiscal 2026"). Summary of Significant Accounting Policies Except as noted below, the accounting policies for the Successor remained the same as those of the Predecessor. There were no other material changes to the Company's significant accounting policies during the Predecessor and Successor periods of fiscal 2026, compared to the significant accounting policies described in the Company's fiscal 2025 Form 10-K. Factory Start-Up Cost s Prior to the Effective Date, the Company reported factory start-up costs within operating expenses until a facility was substantially complete and ready for revenue generating production. With the adoption of fresh start accounting, the Company changed its accounting policy to classify factory start-up costs within cost of revenue. This policy change has no impact on operating loss. Stock-based Compensation Prior to the Effective Date, forfeitures of stock-based compensation awards were estimated and assumptions were adjusted periodically as new information became available. With the adoption of fresh start accounting, the Company also made an accounting policy election to account for forfeitures when they occur. The impact of the change is not expected to be material. Recognition of Intangible Assets As further described below, on the Effective Date, the Company adopted fresh start accounting in accordance with Accounting Standards Codification ("ASC") Topic 852: Reorganizations ("ASC 852"), resulting in a new reporting entity. All assets and liabilities were measured at fair value in accordance with ASC 805. As part of this process, the Company recognized identifiable intangible assets representing customer relationships, developed technology, and trade names. Identified intangible assets were measured at their estimated fair values using income‑based valuation techniques, including the multi‑period excess earnings method for customer relationships and the relief‑from‑royalty method for trade names and developed technology. Customer relationship, developed technology, and trade names are amortized over their useful lives, which generally range from 5 to 11 years. Patents are amortized using the straight-line method over their estimated period of benefit, which generally range from 0.5 to 23 years. Amortization expense for customer relationships and trade names is presented within "Restructuring and Other Expenses" on the Consolidated Statements of Operations. Amortization expense for developed technology and patents is recorded within "Cost of Revenues, net" on the Consolidated Statements of Operations. Refer to Note 3, "Fresh Start Accounting" and Note 10, "Intangibles" for additional information on the recognized identifiable intangible assets described above. Chapter 11 Cases On June 30, 2025 (the “Petition Date”), the Company and its wholly owned subsidiary, Wolfspeed Texas LLC (together with the Company, the “Debtors”), voluntarily filed petitions (the "Chapter 11 Cases") for relief under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) in the United States Bankruptcy Court for the Southern District of Texas, Houston Division (the “Bankruptcy Court”) to implement a prepackaged Chapter 11 plan of reorganization (the "Plan"). The Chapter 11 Cases were administered jointly under the caption In re Wolfspeed, Inc., et al, case number 25-90163 (CML). The filings in the Chapter 11 Cases, including the Plan and the Disclosure Statement filed on June 30, 2025, were intended to facilitate a comprehensive balance sheet restructuring pursuant to a Restructuring Support Agreement (the “Restructuring Support Agreement”) executed on June 22, 2025, with key stakeholders, including (i) holders of more than 97% of the Company’s Senior Secured Notes due 2030 (the "Existing Senior Secured Notes"), (ii) holders of more than 67% of the Company’s outstanding 1.75% Convertible Senior Notes due 2026, 0.25% Convertible Senior Notes due 2028, and 1.875% Convertible Senior Notes due 2029 (collectively, the “Convertible Notes”), and (iii) Renesas Electronics America Inc. (“Renesas”). On September 8, 2025, the Court entered the Order (I) Approving the Disclosure Statement, (II) Confirming Joint Prepackaged Chapter 11 Plan of Reorganization of Wolfspeed, Inc. and Its Debtor Affiliate, and (III) Approving Entry into the Backstop Agreement (Docket No. 285) (the “Confirmation Order”), which, among other things, confirmed the Plan. On September 29, 2025 (the "Effective Date"), the Company emerged from Chapter 11 Cases as all the material conditions to the effectiveness of the Plan were satisfied or waived and the Plan became effective, and after the Effective Date the Company was no longer a debtor-in-possession. Refer to Note 2, “Emergence from Voluntary Reorganization under Chapter 11” for additional information. On September 8, 2025 the Court entered the Order (I) Approving the Disclosure Statement, (II) Confirming Joint Prepackaged Chapter 11 Plan of Reorganization of Wolfspeed, Inc. and Its Debtor Affiliate, and (III) Approving Entry into the Backstop Agreement (Docket No. 285) (the “Confirmation Order”) confirming the Plan. Rights Offering On June 22, 2025, the Company entered into a Rights Offering Backstop Commitment Agreement (the “Backstop Commitment Agreement”) with the rights offering backstop parties (the “Backstop Parties”) and the rights offering holdback parties (the “Holdback Parties”) party thereto. Pursuant to the Backstop Commitment Agreement (and subject to the terms and conditions therein), the Company initiated a rights offering on August 14, 2025 as contemplated under the Restructuring Support Agreement for the issuance of the new 2.5% Convertible Second-Lien Senior Secured Notes due 2031 (the "New 2L Non-Renesas Convertible Notes") in an aggregate principal amount of approximately $301.13 million. 60% percent of the rights offering (“Non-Holdback Rights Offering”) was offered pro rata to all holders of Convertible Notes (the “Subscription Rights”) and the Backstop Parties committed to purchase any unsubscribed portion of the Non-Holdback Rights Offering. The remaining 40% of the rights offering was reserved for the Holdback Parties that committed to purchasing their respective portions set forth in the Backstop Commitment Agreement. As consideration for the commitments by the Backstop Parties and Holdback Parties, the Backstop Commitment Agreement provided that the Backstop Parties and the Holdback Parties would be issued, additional New 2L Non-Renesas Convertible Notes in an aggregate principal amount of $30.25 million (the “Backstop Premium”), allocated ratably. The transactions contemplated by the Backstop Commitment Agreement were conditioned upon the satisfaction or waiver of certain conditions, including, among other things, that (i) the Bankruptcy Court had entered an order approving the Backstop Commitment Agreement and the disclosure statement relating to the Plan and confirming the Plan, (ii) the effective date of the Plan having occurred, and (iii) the Restructuring Support Agreement remained in full force and effect. Debtor-In-Possession During the period between the Petition Date through the Effective Date, the Company has applied ASC 852 in preparing the unaudited consolidated financial statements and was a debtor-in-possession. The Bankruptcy Court approved "first day" orders filed by the Debtors that were designed primarily to mitigate the impact of the Chapter 11 Cases on the Company’s operations, customers, and employees. In general, as debtors-in-possession under the Bankruptcy Code, the Debtors were authorized to continue to operate as an ongoing business, but could not engage in transactions outside the ordinary course of business without the prior approval of the Bankruptcy Court. Pursuant to first day orders filed with the Bankruptcy Court, the Bankruptcy Court authorized the Debtors to conduct their business activities in the ordinary course, including, among other things and subject to the terms and conditions of such orders, authorizing the Debtors ability to: (i) retain and compensate professionals used in the ordinary course of business; (ii) pay prepetition wages, salaries, employee benefits and other compensation, (iii) maintain employee benefits programs and pay related obligations; (iv) pay certain prepetition taxes and fees; (v) continue existing cash management system, maintain existing business forms, and continue intercompany transactions (vi) use cash collateral; (vii) continue insurance program and pay all obligations; (viii) honor prepetition obligations to customers and continue customer programs; and (ix) pay prepetition trade claims. Financial Statement Classification of Liabilities Subject to Compromise During the Chapter 11 Cases, certain amounts were classified as liabilities subject to compromise, which represented liabilities that were unsecured, undersecured or had a chance of not being settled in full by the Bankruptcy Court. These amounts represented the Debtors’ then-current estimate of known or potential obligations to be resolved in connection with the Chapter 11 Cases. Differences between liabilities estimated and claims filed were investigated and resolved in connection with the claims resolution process. The Company evaluated and adjusted the amount and classification of its pre-petition liabilities through the Effective Date, as applicable. Automatic Stay Subject to specific exceptions under the Bankruptcy Code, the Chapter 11 Cases automatically stayed most judicial or administrative actions against the Debtors and efforts by creditors to collect on or otherwise exercise rights or remedies with respect to pre-petition claims. Absent an order from the Bankruptcy Court as summarized above, substantially all of the Debtors' pre-petition liabilities were subject to settlement under the Bankruptcy Code. Since the Effective Date, the automatic stay was lifted and previously stayed actions against the Debtors may continue with respect to the Debtors to the extent such claims were not released under the Plan. Executory Contracts Subject to certain exceptions, under the Bankruptcy Code, the Debtors could assume, amend or reject certain executory contracts and unexpired leases subject to the approval of the Bankruptcy Court and certain other conditions. Generally, the rejection of an executory contract or unexpired lease was treated as a pre-petition breach of such executory contract or unexpired lease and, subject to certain exceptions, relieved the Debtors from performing their future obligations under such executory contract or unexpired lease but entitled the contract counterparty or lessor to a pre-petition general unsecured claim for damages caused by such deemed breach. Generally, the assumption of an executory contract or unexpired lease required the Debtors to cure existing monetary defaults under such executory contract or unexpired lease and provide adequate assurance of future performance. On the Effective Date, the Debtors assumed all executory contracts and unexpired leases pursuant to the Plan. Reorganization Items, Net ASC 852 requires the financial statements, for periods subsequent to the commencement of the Chapter 11 Cases, to distinguish transactions and events that are directly associated with the reorganization from the ongoing operations of the business. Accordingly, certain expenses, realized gains and losses and provisions for losses that were realized or incurred during and directly related to the Chapter 11 Cases, including professional fees, valuation adjustments to allowed claims, gains on liabilities subject to compromise, and fair value adjustments related to the adoptions of fresh start accounting were recorded as "Reorganization items, net", within the Company's accompanying unaudited consolidated statement of operations for the period of September 29, 2025 and the period from June 30, 2025 to September 29, 2025. Refer to Note 2, "Emergence from Voluntary Reorganization under Chapter 11," and Note 3, "Fresh Start Accounting" for additional information. Allowed Claims Refer to Note 2, "Emergence from Voluntary Reorganization under Chapter 11" for additional information on the treatment and resolution of allowed claims subject to the Chapter 11 Cases. There were no other material changes to the Company's significant accounting policies compared to the significant accounting policies described in the Company's fiscal 2025 Form 10-K. Liquidity As described above and in Note 2, "Emergence from Voluntary Reorganization under Chapter 11'", as of the Effective Date, the Company emerged from the Chapter 11 Cases and continues to operate as a viable going concern. The accompanying unaudited consolidated financial statements have been prepared on the basis that the Company will continue to operate as a going concern, which contemplates that the Company will be able to realize assets and settle liabilities in the normal course of business for twelve months following the date of this filing. Upon emergence from the Chapter 11 Cases, the Company significantly improved its liquidity position through a comprehensive restructuring of its capital structure. As part of the Plan, the Company issued the new debt and equity described in Note 2, "Emergence from Voluntary Reorganization under Chapter 11'", which resulted in a reduction of the total debt by approximately 70% compared to the pre-emergence levels and the Company had $1.3 billion of cash, cash equivalents and short term investments as of December 28, 2025. The Successor has assessed the impact of the current softening demand for its products and the competitive industry we serve in on the Company's liquidity requirements over the next 12 months. To support this assessment, the Successor has analyzed the following factors: (1) its current financial condition, including available liquidity sources; (2) both conditional and unconditional obligations that are due or anticipated; (3) the funds necessary to sustain operations in light of its current financial condition, obligations, and expected cash flows; and (4) any other conditions or events that may adversely impact the Successor’s ability to meet its obligations for at least one year after the issuance date of the financial statements. Based on such evaluation, the Successor has concluded that it is probable the Successor will have sufficient liquidity to meet its future cash needs with cash, cash equivalents and short-term investments and cash flows from operations for at least one year after the issuance date of the financial statements as the restructuring of its debt significantly reduced the amount of outstanding debt and ongoing interest payments. Segment Information The Company has one reportable segment representing the entity as a whole, aligning with the Company's organizational structure and with the way the Company's chief operating decision maker ("CODM"), who is the Company's Chief Executive Officer, makes operating decisions, allocates resources, and manages the growth and profitability of the Company. The CODM uses consolidated net income to measure segment profit or loss, allocate resources and assess performance. Net income is also used to monitor budget versus actual results, forecasted information and in competitive analysis. The CODM regularly reviews income and expense items at the consolidated company (reporting segment) level and uses net income to evaluate whether and how to reinvest profits into the entity’s operations, stockholder return, acquisitions or otherwise. Further, the CODM reviews and utilizes functional expenses (cost of revenues, sales and marketing, research and development, and general and administrative) at the consolidated level to manage the Company’s operations. Other segment items included in consolidated net income are "Restructuring and other expenses", "Interest expense, net of capitalized interest", "Non-operating income, net" and "income tax (benefit) expense". These income and expense items are included on the Consolidated Statements of Operations and in the Company's notes to the Consolidated Financial Statements. The CODM reviews segment assets at the same level or category as presented on the Consolidated Balance Sheet. Financial Statement Details Inventories
| Successor |  | Predecessor
(in millions of U.S. Dollars) | December 28, 2025 |  | June 29, 2025
Raw material | $128.6 |  |  | $144.5 |
Work-in-progress | 187.7 |  |  | 284.6 |
Finished goods | 3.8 |  |  | 6.3 |
Inventories, net | $320.1 |  |  | $435.4 |
Cost of Revenues, net included inventory write-offs of approximately $29.0 million, for the period from June 30, 2025 to September 28, 2025, $0 million for the period of September 29, 2025, and $22.8 million for the period from September 30, 2025 to December 28, 2025. The write-offs reflect an increase in specific reserves related to obsolete, customer-specific inventory the Company no longer intends to use. Other Current Assets
| Successor |  | Predecessor
(in millions of U.S. Dollars) | December 28, 2025 |  | June 29, 2025
Reimbursement receivable on long-term incentive agreement | $33.2 |  |  | $33.1 |
Assets held for sale(1) | 1.9 |  |  | 24.4 |
MACOM Shares(2) | — |  |  | 102.0 |
Inventory related to the RF Master Supply Agreement | — |  |  | 15.8 |
VAT receivables | 0.6 |  |  | 9.1 |
Insurance deposit | 1.3 |  |  | 7.4 |
Accrued interest receivable | 3.3 |  |  | 5.4 |
Receivable on RF Master Supply Agreement | — |  |  | 5.3 |
Short-term deposit on long-term incentive agreement | 0.5 |  |  | 0.8 |
Short-term spares | 28.7 |  |  | — |
Other | 17.6 |  |  | 18.7 |
Other current assets | $87.1 |  |  | $222.0 |
(1): During the third quarter of fiscal 2025, the Company determined three facilities and equipment met the held-for-sale criteria under ASC Topic 360, "Property, Plant and Equipment," ("ASC 360") of which two were sold during the fourth quarter of fiscal 2025 and one was sold during the second quarter of fiscal 2026. The assets included in each of the disposal groups were measured at the lower of their carrying value or fair value less costs to sell. The remaining balance is equipment that meets the held-for-sale criteria under ASC 360.
(2): Refer to Note 4, "Discontinued Operations," and Note 9, "Fair Value of Financial Instruments," to the consolidated financial statements included herein for additional information.
Investment Tax Credit Receivable The Company is generally eligible for the Advanced Manufacturing Investment Credit ("AMIC"). The AMIC is a refundable federal tax credit provided under Section 48D of the Internal Revenue Code of 1986, as amended (the "Code"), which was enacted by the CHIPS Act. During fiscal 2026, the Company received $698.6 million in cash tax refunds related to fiscal 2025. Of the $698.6 million received in fiscal 2026, the Company has recorded a deferred AMIC liability of $44.6 million related to the AMIC attributable to certain tax method changes yet to be approved by the Internal Revenue Service ("IRS"). In fiscal 2025, the Company received $189.1 million in cash tax refunds related to its fiscal 2023 and fiscal 2024 federal tax filings, inclusive of $2.6 million of interest income. As of December 28, 2025, the Company has recorded a short-term and long-term receivable of $72.5 million and $109.5 million, respectively. The One Big Beautiful Bill Act ("OBBBA") resulted in a $50.7 million increase to the long-term receivable in the first quarter of fiscal 2026, attributable to the increase of the credit to 35% on qualifying assets placed-in-service after December 31, 2025. Other Assets
| Successor |  | Predecessor
(in millions of U.S. Dollars) | December 28, 2025 |  | June 29, 2025
Right-of-use assets | $97.5 |  |  | $123.1 |
Long-term advances to suppliers | 71.0 |  |  | 69.8 |
Long-term deposits | 6.9 |  |  | 24.3 |
Cloud computing assets, net | 24.3 |  |  | 10.4 |
Other | 6.2 |  |  | 39.3 |
Other assets | $205.9 |  |  | $266.9 |
Accounts Payable and Accrued Expenses
| Successor |  | Predecessor
(in millions of U.S. Dollars) | December 28, 2025 |  | June 29, 2025
Accounts payable, trade | $33.5 |  |  | $30.6 |
Accrued property and equipment | 38.9 |  |  | 124.7 |
Accrued salaries and wages | 50.4 |  |  | 79.2 |
Accrued expenses | 37.6 |  |  | 45.7 |
Accounts payable and accrued expenses | $160.4 |  |  | $280.2 |
Other Current Liabilities
| Successor |  | Predecessor
(in millions of U.S. Dollars) | December 28, 2025 |  | June 29, 2025
Accrued interest | $3.3 |  |  | $90.7 |
RF supply agreement liabilities(1) | 13.2 |  |  | 76.9 |
Other | 42.3 |  |  | 52.9 |
Other current liabilities | $58.8 |  |  | $220.5 |
(1): Refer to Note 4, "Discontinued Operations," to the consolidated financial statements included herein for additional information.
Other Long-term Liabilities
| Successor |  | Predecessor
(in millions of U.S. Dollars) | December 28, 2025 |  | June 29, 2025
Long-term lease liabilities | $100.1 |  |  | $139.5 |
Long-term RF supply agreement liabilities(1) | 53.4 |  |  | 44.5 |
Deferred AMIC | 44.6 |  |  | — |
Long-term customer deposits | 15.6 |  |  | 15.6 |
Other | 4.7 |  |  | 3.5 |
Other long-term liabilities | $218.4 |  |  | $203.1 |
(1): Refer to Note 4, "Discontinued Operations," to the consolidated financial statements included herein for additional information.
Gain on Sale of Disposal of Property and Equipment During the period from June 30, 2025 to September 29, 2025 the Company recognized a gain of $5.7 million primarily from certain equipment sales to customers for equipment that the Company no longer intended to use. During the period from September 30, 2025 to December 28, 2025, the Company recognized a gain of $2.4 million, related to the sale of one building, which included the building improvements and land of a 254,000 square foot idle property located in Durham, North Carolina and certain equipment sales to customers for equipment that the Company no longer intended to use, respectively. Restructuring and Other Expenses
| Successor | Predecessor |  |  |  |  |  |  |
| Period from September 30, 2025 to December 28, 2025 | September 29, 2025 | Three months ended |  |  |
(in millions of U.S. Dollars) | December 29, 2024 |  |  |  |  |  |  |
Restructuring and other exit costs | 9.6 |  | $— |  | $156.7 |  |  |  |  |  |  |  |
Executive severance costs | — |  |  | 1.4 |  |  |  |  |  |  |  |
Project, transformation and transaction costs | 14.1 |  | — |  | 7.8 |  |  |  |  |  |  |  |
Amortization or impairment of fresh start accounting and acquisition-related intangibles | 4.0 |  | — |  | 0.3 |  |  |  |  |  |  |  |
Other | 0.5 |  | — |  | 2.1 |  |  |  |  |  |  |  |
Restructuring and other expenses | $28.2 |  | $— |  | $168.3 |  |  |  |  |  |  |  |
| Successor | Predecessor |  |  |  |
(in millions of U.S. Dollars) | Period from September 30, 2025 to December 28, 2025 | Period from June 30, 2025 to September 29, 2025 | Six months ended December 29, 2024 |  |
Restructuring and other exit costs | 9.6 |  | $3.7 |  | $209.5 |  |  |  |  |
Executive severance costs | — |  | — |  | 1.4 |  |  |  |  |
Project, transformation and transaction costs | 14.1 |  | 13.8 |  | 13.8 |  |  |  |  |
Amortization or impairment of fresh start accounting and acquisition-related intangibles | 4.0 |  | — |  | 0.6 |  |  |  |  |
Other | 0.5 |  | 2.9 |  | 4.1 |  |  |  |  |
Restructuring and other expenses | $28.2 |  | $20.4 |  | $229.4 |  |  |  |  |
Accumulated Other Comprehensive Loss, net of taxes Accumulated other comprehensive loss, net of taxes, consisted of $0.4 million and $3.8 million of net unrealized losses on available-for-sale securities as of December 28, 2025 and June 29, 2025, respectively. Amounts for June 29, 2025 include a $2.4 million loss related to tax on unrealized loss on available-for-sale securities. Non-Operating Income, net
| Successor | Predecessor
(in millions of U.S. Dollars) | Period from September 30, 2025 to December 28, 2025 | September 29, 2025 | Three months ended December 29, 2024
Changes in fair value of liability classified derivative contracts | (59.1) |  | — |  | — |
Interest income | (9.6) |  | — |  | (17.0) |
Realized gain on MACOM Shares | — |  | — |  | (15.7) |
Other, net | 1.7 |  | — |  | 1.5 |
Non-operating income, net | ($67.0) |  | $— |  | ($31.2) |
| Successor | Predecessor
(in millions of U.S. Dollars) | Period from September 30, 2025 to December 28, 2025 | Period from June 30, 2025 to September 29, 2025 | Six months ended December 29, 2024
Changes in fair value of liability classified derivative contracts | (59.1) |  | — |  | — |
Interest income | (9.6) |  | (8.9) |  | (39.2) |
Loss (gain) on Wafer Supply Agreement | — |  | — |  | 9.2 |
Gain on RTP Fab Transfer | — |  | (25.4) |  | — |
Realized loss (gain) on MACOM Shares | — |  | 10.9 |  | (15.7) |
Other, net | 1.7 |  | 1.0 |  | 1.7 |
Non-operating income, net | ($67.0) |  | ($22.4) |  | ($44.0) |
Statements of Cash Flows - Supplemental Non-Cash Activities
| Successor | Predecessor
(in millions of U.S. Dollars) | Period from September 30, 2025 to December 28, 2025 | Period from June 30, 2025 to September 29, 2025 | Six months ended December 29, 2024
Decrease in property, plant and equipment from investment tax credit receivables | $0.8 |  | $76.8 |  | $223.3 |
Lease asset and liability additions | 0.8 |  | 19.1 |  | 25.0 |
Lease asset and liability modifications, net | (0.2) |  | (0.2) |  | 2.6 |
Lease termination | (5.0) |  | (0.1) |  | — |
(Decrease) increase in accrued property, plant and equipment | (3.4) |  | (82.4) |  | (111.4) |
Commitment fee payable for 2030 Senior Notes | — |  | — |  | 29.3 |
Fees payable in connection with at-the-market program | — |  | — |  | 2.4 |
Recently Adopted Accounting Pronouncements In September 2025, the Financial Accounting Standards Board (the "FASB") issued Accounting Standards Update ("ASU") 2025-07, Derivatives and Hedging (Topic 815) and Revenue from Contracts with Customers (Topic 606) (“ASU 2025-07”). The guidance refines the scope of Topic 815 to clarify which contracts are subject to derivative accounting. The guidance also provides clarification under Topic 606 for share-based payments from a customer in a revenue contract. The amendments in ASU 2025-07 are effective for fiscal years and interim periods beginning after December 15, 2026, with early adoption permitted. The Company early adopted ASU 2025-07 on September 29, 2025, on a prospective basis, which includes the scope exception for derivatives, and the adoption did not have a material impact on our financial statements. In December 2023, the 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 new standard will require additional disaggregation of certain information in the Company's tax footnote and the Company intends to adopt on a prospective basis beginning in the Annual Report on Form 10-K for the period ending June 28, 2026. Accounting Pronouncements Pending Adoption 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. In January 2025, the FASB issued ASU 2025-01 to clarify the effective date of ASU 2024-03. ASU 2024-03 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. Recently issued ASUs by the FASB, except for the ones mentioned above, are not expected to have a significant impact on the Company’s consolidated results of operations or financial position. Other accounting standards that have been issued or proposed by the FASB that do not require adoption until a future date are not expected to have a material impact on the consolidated financial statements upon adoption. The Company does not discuss recent pronouncements that are not anticipated to have an impact on or are unrelated to its consolidated financial statement disclosures.

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- Definition The entire disclosure for the basis of presentation and significant accounting policies concepts. Basis of presentation describes the underlying basis used to prepare the financial statements (for example, US Generally Accepted Accounting Principles, Other Comprehensive Basis of Accounting, IFRS). Accounting policies describe all significant accounting policies of the reporting entity. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Topic 235 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 1 -Publisher FASB -URI https://asc.fasb.org/1943274/2147483426/235-10-50-1 + Details
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